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why are we listing short sales?

By Jon Wolford

Real Estate Broker/Owner with Long & Foster Realtors

October 15, 2007 04:44 AM

Listing basic's 101 - dont take a listing unless "the seller" can authorize the sale with a price and commission.

We get neither with a short sale. And, we are pulling down sales prices by taking short sale listings at super low prices. These listings attract greedy buyers who hope for bank approval. Short sale listings posted as "under contract" force the real market - those who can sell, to price their home at the imaginary short sale price.

What do you think? do you have a short sale listing? Do you have one that made it to settlement? What does it take?

Give me your thoughts - they are appreciated!!

Comments(6)

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Frances C. Rokicki

Fran Rokicki Realty, LLC - Bolton, CT

Broker-Mentor,CRS

Short sales can provide a commission to you. You would work with the mortgage holder of the property, along with the Seller/Owner. You deserve to be paid, if you sell the property.

Oct 15, 2007 04:48 AM

Jason Schweiger

Modus Mortgage - Auburn, WA

Loan Originator: Modus Mortgage

Ths seller does not make the decision of the commission. The lender will weigh all things in the deal and make an "appropiate" amount of commission toward the listing agent.

Oct 15, 2007 04:58 AM

Rosemary Brooks

BMC Real Estate - 209-910-3706 - Stockton, CA

The Mother & Daughter Realty Team

Short sale are not the way we would like to go, however, in some cases it is necessary. The agent do get a commission - the standard is usually 5% but there are no guarantees on what it will be. You work to sell the property you get a commission to split with the buying agent. Since short sales are done because there is no equity to sell it normally, what would you suggest the sellers do if there is no equity and they are in trouble?

Oct 15, 2007 05:09 AM

Leo Namiot - LeoLends.com

Canopy Mortgage - Leo Namiot - Saint Augustine, FL

More than just great rates

Hello Jon,

I just wanted to welcome you to the active rain community, it's a great online community,Enjoy!

Leo Namiot

Benchmark Mortgage - Connecticut & Florida

Oct 15, 2007 11:09 AM

Cindy Jones

Integrity Real Estate Group - Woodbridge, VA

Pentagon, Fort Belvoir & Quantico Real Estate News

Hi Jon! Welcome to AR. I think the interesting scenario to watch with short sales will be the fallout regarding the 1099 that will be sent to the defaulting owners next January. Many sellers do not understand that currently the "loss" they are taking on the sale of the property could actually be a taxable event. Depending on circumstances this may be an unwelcome surprise. IRS Information.

Oct 16, 2007 12:12 AM

FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com

Northern Virginia Homes - FRANKLY REAL ESTATE Inc - Arlington, VA

Hey Jon,

This is a brilliant question.

Should an "under contract" short sale be considered when running comps? I found that only 50% ever close.

So what do you propose? That we all refuse the listings? If we don't take them, a worse agent might get them, and it might go down even further!

I personally wouldn't do a short sale, unless the seller got the approval first.

Interesting!

Frank Borges LL0SA- Broker FranklyRealty.com

* NVAR Members have until Oct 31st to vote for the Board of Directors: www.NVAR.com/vote

Oct 23, 2007 04:22 PM