What are your thoughts and experiences good and bad on short sales? I just listed my second one and I know with the current market (at least in this area) that there will be more to come. What is most frustrating is after working so hard it goes into foreclosure then the bank lists with their preferred REO agent in the area. How can you keep these listings after they're foreclosed? How is the best way to price them so you're sure of getting your commission? My client wants to keep dropping the price and hope for offers. Hmmmmmmmmmm.
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Intero Real Estate Services - Livermore, CA
Don,t know about AL but in CA I close them and get paid. the price is what the market carries.
Dec 17, 2007 10:36 AM
Wendy Smith Real Estate - Ocala, FL
Real Estate Advisor
your client is right - drop the price until you get activity on the listing. Just be sure to disclose in the MLS that the transaction is subject to third party (lender) approval - I use a "short sale" addendum for short sale trasnactions wherein all parties are made aware of the need for lender approval, the time it can take for approval, etc.
So far, the lenders still do things half-fast - you won't know what they will accept until there is an offer, albeit a low offer. I think the lender should get an appraisal (not a BPO) right away and communicate with the listing agent to market the house accordingly.
Dec 17, 2007 10:46 AM
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes
There are a lot of them in my area of NH these days. Sometimes I see the bank trying to change the commission when you do get an offer, some guy thinks he'll be the next bank manager or whatever and he'll say instead of the 5% well pay 4%. Has anyone run into that senario?
Patricia Aulson/Hampton NH Real Estate
Dec 17, 2007 11:04 AM
Julie Chapman Broker - Ormond Beach, FL
Daytona Beach Shores, Florida
I am so pleased to allow that I have never had any experience with a short sale.....our market is still stable....so far, so good....but I am learning from the AR posts.....
Dec 17, 2007 11:21 AM
Wendy Smith Real Estate - Ocala, FL
Real Estate Advisor
yea, Saxon changed to 4.5% and I agreed because the house was a bear to sell. Freemont said 4% and I stood firm on 6%. Most of the time the lenders will approve a max of 5% but I ALWAYS start off with at least 6% on the HUD.
Dec 17, 2007 11:25 AM
Coldwell Banker - Sacramento, CA
916-342-1372 / DRE# 01706589 Sacramento, CA
There are plenty here too. I have no problem listing short sales at 6% as long as I clearly understand the position of the seller.
Dec 17, 2007 02:01 PM
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