You may have seen a MLS listing like this:
Pre-foreclosure! Motivated seller! Short Sale! All offers considered! Great deal! Subject to bank approval.
Then after some quick research you see that the property has been listed for 3 months and is $20K over market value.
Or you may have found the perfect house for you buyer, the property is a short sale and you call the listing agent to verify the seller has a legitimate hardship and they ask you "What do you mean by hardship?"
The reality is that short sales have caught many agents completely off guard. In some areas 30 to 50% of the properties (or more) that are selling are short sales or otherwise distressed. Many agents don't know how to deal with the issue and are instead listing properties and learning (or not learning) along the way.
It is important that all agents take a step back and realize that there is a person and most of the time a family behind a listing. Simply taking a listing (especially a short sale) without a plan for how you are going to market, negotiate, submit and get a sale approved - you have a responsibility not to take the listing.
In a distressed situation an agent's knowledge and strategy is even more important. I believe you have a responsibility to a distressed homeowner to know what you are going to do to give them the best possible chance to avoid foreclosure. If you don't have the knowledge and strategy, in one word: walk. Let the homeowner know that there are solutions and there is hope then refer them to an agent you know has experience to help them in their specific situation.
This is one area where knowledge has to come first. When a homeowners' financial future is on the line stumbling through on the job training with a short sale just isn't fair.
Alex Charfen
http://www.1cdpe.com/
http://www.charfenteam.com/
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