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What is KILLING All the SHORT SALES!!!

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

The one thing most people agree on is that Short Sales will continue to be a large part of our market for at least the next year. I work on a lot of Short Sales both as a Listing Agent and a Buyer Broker here in the Manchester NH area. The short sale process is not regulated, therefore the way agents handle it varies widely. There are some outlandish trends happening that are making the process frustrating that just do NOT have to be. There is no easy way to say it and this is no time to be polically correct when the result of a poorly handled short sale can lead to foreclosure.

What is KILLING All the SHORT SALES!!!

1. INEXPERIENCED AGENTS Listing them

2. PRICING THE HOME BELOW MARKET VALUE

3. OUT OF TOWN AGENTS taking listings

4. DISCOUNT BROKERS not providing full service

5.  INEXPERIENCED NEGOTIATORS

6. SUBMIITING MULTIPLE OFFERS FOR APPROVAL

7. INCOMPLETE SHORT SALE PACKAGES

8. NO COMMUNICATION OR FOLLOW-UP BY AGENTS

9. UNREALISTIC TIME FRAMES

10. BUYERS WHO ARE NOT EDUCATED WHAT A SHORT SALE IS AND HOW THE PROCESS WORKS.

THE TOP THINGS YOU CAN DO ABOUT IT:

1. CHOOSING A LISTING AGENT: When choosing a listing agnet to conduct a short sales the seller should note that all agents are not created equal. They should also know they have a choice.

a. EXPERIENCE: Choose an agent who is experienced in Listing, Negotiating and Selling Short Sales. This is not the time for "on the job training". Do not settle.

b. CHOOSE ONLY LOCAL AGENTS: Too many home owners see flashy TV commercials and think that is their only choice. It is NOT. Interview and choose a local agent who will be there through each step of the short sale selling process.  

c. FULL TIME AGENTS: Whether Buying or Selling you want and need a FULL TIME agent whose sole job is to assist buyers and sellers with Real Estate.

d. FULL SERVICE: Using a discount Broker could lead to discount services. In a short sale you need every advantage you can. This is not the time tio skimp. For sellers commission is deducted from the proceeds teh bank is willing to accept. Choosing a full service broker does not cost more but could mean the difference between an approval or losing the home.

2. PRICING THE HOME: When listing short sales the practice of listing the home "way under market value" to attract more offers is leading to an increase in short sale rejections. This practice should be avoided as it is not helping out sellers who are losing their homes to foreclosure becuase of it.

3. Some of the trends and practices you should avoid are:

a. Paying up front to List your house as a short sale

b. Paying up front for a negotiator

c. Paying for an appraisal to submit an offer.

d. The bank is not the seller in a short sale - the home owner is the seller.

CONCLUSION FOR BUYERS: If you are considering buying a Short Sale, whether you are in the Manchester NH area, Southern New Hampshire or located aywhere else thoughout this great country of ours, the short sale process is the same. As a buyer there are some things you need to do in order to have an advantage and opportunity to have your short sale approved. The short sale process can be long, it can be frustrating but it does NOT have to be.

 CONCLUSION FOR SELLERS: If you owe more than your house is worth, if you are behind in your payments or if you have to move. A Short Sale could be for you. The most important tips is to list with an agent who is well experienced in listing, negotiating and selling Short Sales. If you live in NH, call me first. I use a professional negotiator that works on the sellers behalf when negiotiating with the bank at no cost to you. Most often the home owner can complete a short sale at no cost to them.

 

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale whcih may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees. WE GET RESULTS!!!
If you need to sell a home in New Hampshire I can be that agent for you. I strive to provide the best personal and professional service through each step of the selling process.

We stand by you through every step in selling your home.

PLEASE SEE SOME OF MY MOST POPULAR BLOGS

 

 
 
 
 
ONE OF NEW HAMPSHIRE'S LEADING AGENTS FOR SHORT SALES AND BANK OWNED HOMES...

If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.

If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.

Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.

Comments (80)

Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

You act like this just started happening? From day 1 it hasn't changed.

Feb 18, 2012 06:18 AM
Claude Labbe
RLAH / @properties - Washington, DC
Realty for Your Busy Life

Scott, I agree with your last point "Buyers who aren't educated", but I''ve also seen problems with "Sellers who aren't educated", and finally come to realize they can't or aren't willing to proceed with the listing/sale.

_Claude

 

Feb 18, 2012 07:10 AM
Beatrice M. Stambulski
COMPASS - Sherman Oaks, CA
Sherman Oaks Real Estate

You nailed it! Agents who are inexperienced in handling a Short Sale and their uneducated Sellers/Buyers.

This type of transaction is not for the faint at heart. 

In my area I can pretty much tell if a Short Sale has the chance to close by the listing agent(s)

When representing Buyers before I venture out to show a Short Sale I do a quick search of the listing agent's (if not familiar with) past activity to find out how many transactions closed in one year and how many Short Sale Listings or Sales. If my Buyer decides to write an offer I'll know who is in the driver seat and how will I be able to assist.

 

Feb 18, 2012 08:21 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Great post.  As much as I hate to say it I think short sales are going to become a bigger and bigger part of this business.

Feb 18, 2012 10:09 AM
Kathy Dowd
EXP Realty, 239 220 4133 - The Villages, FL
Consider it SOLD

Thanks for your post but I will have to disagree with your number 1. INEXPERIENCED AGENTS Listing them...

I was new in the year 2010 I sold 2 of my 2 short sale listings and worked the deals myself...I learned a lot but I had the time to spend on both of the listings being a new agent.  Time to call and keep up with the negotiators, the sellers as well as the selling agents.

#2 & 6. Pricing below market and submitting multiple offers...we have that problem with REO's

The biggest problem I see is the BPO's that come back way to high for the market. Also, 2nd mortgages on the property.

Thats just my 2 cents worth....but I have to say they are the best buys and a lot of work!

Feb 18, 2012 09:33 PM
Rachel Tipton
KingOne Properties International - Pawleys Island, SC

Thank you Scott. Excellent post. I am NOT an expert on Short Sales. If I run into a Short Sale listing, I will refer it to an co-worker in my office who IS very knowledgable about Short Sales. 

Feb 18, 2012 09:35 PM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Scott, I agree and think every item on your list has played out at least once for me, but the #1 thing killing short sales is understaffed banks!

Feb 18, 2012 10:19 PM
Sherry Chastain
Hendersonville, Nashville, Old Hickory, Lebanon Tennessee - Hendersonville, TN
Realtor, Selling Homes, Lake Properties,Luxury Homes,Short Sales

The worst part of short sales is the bank. If they opertated as regular intelligent business owners it would be a much more successful system. 

Feb 19, 2012 01:30 AM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Yours is a good list of short sale deal killers. 

I would add:  Sellers who aren't motivated and don't provide essential documents for short sale package to submit to lender/lienholders in a timely manner

Feb 19, 2012 05:43 AM
Mitch Muller - Charlotte NC Real Estate
ProStead Realty Charlotte, NC CRS SRES mitch@prostead.com - Charlotte, NC
Certified Residential Specialist

It seems every short sale I deal with covers at least half of those on your list. Our real estate commissions should step up have a mandatory 8 hour intensive course on short sales before an agent can touch one. It would be in the best interest of the public!

Feb 19, 2012 06:21 AM
Brian Schulte
Allison James Estates & Homes - Sierra Vista, AZ
SFR, Sierra Vista, AZ

#10 is probably the #1 reason.

#2 is the banks ... I wonder if it is really true that they get reimbursed when they go thru the foreclosure process.

of course these could just be my opinions:

http://activerain.com/blogsview/2867870/when-is-a-short-sale-not-really-short

Feb 19, 2012 10:54 AM
Phil Leng
Retired - Kirkland, WA
Phil Leng - Retired

Hi Scott,

Congrats on the feature.

You have a lot of useful information in this post.

You could easily make a series, dealing with each category separately

Thanks

Phil

Feb 19, 2012 06:16 PM
Mary Stewart
HomeTrust Real Estate, LLC, Homes for Everyone - Wilsonville, OR
Wilsonville and Surrounding Portland Metro Areas

The information you provide is very good and important.  I have never listed a short sale and if I had the opportunity would probably refer it over to an experienced agent that I have a connection with.  I have however, had buyers who are interested and have learned a lot more experiencing, rather than from the classes I have taken, and have done so without problems because the listing agents have been good and knowledgeable.  So, how do you get the experience and become proficient if you do not either team up with someone who is willing to mentor you or jump in as Kathy in comment #66, because you are "inexperienced" and probably according to some should not do short sales.  How did all of the "experienced" agents get their experience, I surely hear a lot of blame on inexperience without solutions.  Just playing devils advocate, these are rhetorical questions.

Feb 20, 2012 03:54 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

great points!! short sales will be around for a long time and it is a shame to see so many abandoning this market because it has gotten difficult

Feb 20, 2012 02:32 PM
Jim Miner
Miner Noh & Associates - Phoenix, AZ
Loan Modfication & Short Sale Specialist

Excellent bullet points!

Thank you for the note

Feb 21, 2012 01:26 AM
Gene perez
Greater Mortgage Solutions & Valley Hills Realty - Santa Maria, CA

nice write up .. I can so relate on so many of your points ..

Feb 21, 2012 05:27 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

we can add heavy contribution to the problem from the lenders who unreasonably delay approvals;  ask unreasonable amouns for homes....not to mention that title has tightened up significiantly too

Mar 07, 2012 07:24 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Absolutely right on.  I am going to reblog this post.  -Kasey

Mar 14, 2012 03:44 PM
Matt Robinson
Professional Investors Guild - Pensacola, FL
www.professionalinvestorsguild.com

These are all great points, and I agree wholeheartedly on most of them.  I'm also a listing agent on a lot of short sales (22 as of right now), but I try to avoid them as a buyer's agent because of how poorly most listing agents do at handling them.

Oct 31, 2012 02:59 AM
Kim & Kristine Halverson
Sotheby's & Knipe ERA - Bend, OR
Sisters, Realtors

I agree.  It's costing a ton of time and money for everyone.  They should be streamlined.  Kristine

Oct 31, 2012 06:23 AM