An ongoing series, From One Agent to Another
Do you avoid short sales? I did. Several months ago, while working with buyers, I would avoid a short sale at all costs. Now, having a few listings of my own (short sales included) I am faced with the frustration of agents calling me to show a listing-then retreating once they realize it’s a short sale. So why should I be frustrated when faced with the real estate agent that I once acted like? I had a wake up call. I began to study our inventory and came to the startling conclusion that Short Sale listings are slowly beginning to dominate the market. I could continue to run from the fear of the unknown, or educate myself on the market that I am determined to succeed in.
So, I took some classes and asked questions. I have discovered companies who specialize in the short sale process. Here is a person (or company) that has made it their job to understand and master this process, the very process that is directly related to my own business. Although I have not yet read the book “Who Moved my Cheese” it is on my to do list. The premise is simple…how will you deal with change? Hide behind your familiar cheese and when you turn your head for a moment, only to look back and find your cheese is gone. If you do not embrace this changing market and learn that short sales are the new “cheese” you will soon be hungry.
Short Sales are not for all buyers, we all realize that. There is some risk involved, but usually it’s only an emotional risk. If you have a buyer that has no real time constraint on getting into a property (and that can tolerate the waiting game) there is some real reward in obtaining a short sale. If you are an agent working with a buyer, embrace the possibility of a short sale. Contact the listing agent, find out if that agent has obtained the sellers bank packet. If the agent does not know what that is, then skip it (we do face issues of listing agents taking short sale listings with no knowledge of the process). However, asking a few questions from the listing agent can truly put your fears to rest.
Have you contacted the loss mitigation specialist? Do you have a professional Short Sale company doing the negotiations in your behalf? Are there any other offers in and if so, how long ago were they submitted to the bank, and have you had any response yet? How close is it to going to auction?
Simple questions like these will allow an agent to gain perspective on the listing and insight into the short sale process.
It’s true, you can work hard for very little reward (not closing the deal) but any job has its challenges. Learn the process and do not avoid short sales. In the coming months, you may realize that a good 60% of your inventory (or more) in going to fall into a short sale situation. Accept change and follow the cheese, or remain in your comfort zone and risk starving.
