Thinking twice before you show short sale listings??????

By
Real Estate Agent with Keller Williams Realty

Over the past year, my area of expertise has been concentrating on the "short sale" or pre-foreclosure properties. I list them, then try and help the sellers avoid foreclosure by negotiating a short sale with their lender.

I hear many many times that agents "avoid" showing their clients these listings because they either have had a negative experience, or they just don't know enough about short sales to feel confident that they are looking out for their clients best interests.

I will tell you this, if you are working with buyers who want that deal, and ultimately have to show short sale listings, make sure that listing agent knows what they are doing! Call them up and interview them! Ask them how many successful short sales they have negotiated. What is their track record etc. There is no reason they shouldn't cooperate and understand your concerns. I have agents at my office who come to me EVERY DAY and tell me their horror stories. Asking me what I would do in their situation.

Folks, there is no quick fix, just at least educate yourself about the process and that knowledge alone will help.

If you want a hassle free transaction, just show my listings! ;-)

Happy Labor Day to all!

 

Comments (19)

Donald Urschalitz
Lubeck Realty Group - Jupiter, FL
P.A. Realtor ABR RSPS North Palm Beach County

these are not hard to do as long as you follow the rules. As a ABR these are the best buy in the current market.

Aug 31, 2008 03:33 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

Can you give us an idea how many go past 90 days from buyer offer to close of escrow?  Have you done many that close in the traditional 30 days?

Aug 31, 2008 03:36 AM
Brian Brumpton
Keller Williams Boise - Boise, ID
Boise Idaho Real Estate

Agents may try to avoid them but all the buyers want to see them. You're right I always call and try and get a feel for how much the other agent knows about short sales.

Aug 31, 2008 03:40 AM
Lori Franks
Real Estate Consultant - Brookings, OR
Brookings, Oregon

I prefer foreclosures over a short sale. There are just too many variables when dealing with a short sale. Once a property goes into foreclosure I believe the bank is more realistic...they will have the property appraised and try to move it as quickly as possible. At least this has been my experience in our area.

Aug 31, 2008 03:42 AM
Evelyn Broxterman
Keller Williams Realty - Lakeland, FL

Ardell, I would love to tell you something wonderful, but reality is, most take two months before we get approval. Longer even if Freddie Mac is the investor. They now can take an additional two months (my BoA LM told me this just this past Friday!). I have had ONE deal that took 30 days. I think VERY FONDLY of that deal!!!!!

Aug 31, 2008 03:42 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Shucks.  We have to call the listing agents to find out if the sellers even qualify for a short sale.  The collective short sale listings that are never going to sell is astounding.

 

Aug 31, 2008 03:45 AM
Michael Shankman
Award Realty - Las Vegas, NV
Selling Las Vegas 702-498-3383

I agree with you..short sales are a great buy. Hopefully the listing agent knows how to deal with this.

Aug 31, 2008 03:46 AM
Evelyn Broxterman
Keller Williams Realty - Lakeland, FL

Lenn, why would that listing agent even waste their time taking the listing if the sellers do not qualify??!!!

I actually hand pick which listings I take. My time is just to valuable.

Aug 31, 2008 03:48 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Hi Evelyn

Super input regarding the listing real estate professional, they need the expertise in short sales and how to navigate the short sale process.

Good luck and success

Lou Ludwig

For additional information visit www.LouLudwig.Com

Aug 31, 2008 03:48 AM
Ross Quintana
Real E Smarter - Spokane, WA
Real E Smarter Real Estate Coach - 509-362-1966

Spokane Washington Real Estate Expert Yeah, Not all buyers want to go through the process and the emotional rollercoaster that it can be. But I think investors are all over them right now.

Aug 31, 2008 03:48 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Short Sales are well priced - but it's far more straightforward to deal with the lender on an REO property. 

Aug 31, 2008 04:03 AM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

I must agree with Ross Quintana, The primary home buyer that needs to know they have a deal and a specific closing date will be hard pressed to offer the flexibility to wait out a bank - agreed short sale. But an investor who doesn't intend to live in the property sees the opportunity to "let the seller and his bank" take their time. after all if it take a significant amount of time to close the property could actually be worth more at closing than it was when negotiated.

Aug 31, 2008 04:05 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

There's a good many short sales offered in our area, but we are seeing a lot of those pendings fail to close as they bank decides to foreclose instead.

Aug 31, 2008 04:37 AM
Evelyn Broxterman
Keller Williams Realty - Lakeland, FL

Hi Vickie, thanks for the post. I sometimes lose my listings to foreclosure. Usually though, I can postpone the auction once or twice even to get the deal to close. If the bank has a decent offer, typically they would rather do the short. Once again, the listing agent needs the knowledge and expertise to get the deal done! Staying on top of the court proceedings is part of that. Sending your sellers to the hearings and letting them participate is a key factor.

Aug 31, 2008 04:41 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

One short sale we recently closed took NINE months from the writing of the offer to close! Nine months. Most buyers cannot wait anywhere near that long for a home they want to live in. And with the huge amount of inventory available that is not a short-sale, most buyers are moving to other properties. Our 2 cents.

Aug 31, 2008 04:46 AM
Evelyn Broxterman
Keller Williams Realty - Lakeland, FL

Bob and Carlin, that lender wasn't by chance Countrywide? That would not surprise me. Bless your buyer for sticking around!

Aug 31, 2008 04:52 AM
Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"

I stumbled into listing a couple of short sales, and had to learn very quickly, but no amount of learning prepares you for the inactivity of an overwhelmed loss mistigation department, who won't return your calls, or communicate with you about the file

Aug 31, 2008 02:45 PM
Anonymous
Anonymous

Konnie,

I agree about the LM Departments obviously not having a system in place to handle the volume of short sales. But, some banks, such as Select Portfolio, are awesome! I never wait for someone to call me back. I call them at least once a week. I am also very fortunate to have some LMs call or email me with updates;-)

Sep 01, 2008 12:45 AM
#19
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Evelyn:  I actually teach this in a Short Sale Class.  I hand out a list of questions to ask agents.  If they are clueless, or won't answer, it's off the show list.  But basically, if you know how to list short sales successfully...then you know what questions to ask a listing agent.  I actually put comments in the remarks section of the MLS that say, "Financial & hardship info to banks.  Appraisal ordered.  Title work done.  Allow minimum 30 days for approval.  One contract only presented to bank."

Sep 01, 2008 03:49 AM