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Trulia San J…, Home Buyer in San Jose, CA

Because of the time- do some agents choose not to engage in short sale deals?

Asked by Trulia San Jose, San Jose, CA Fri Apr 26, 2013

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I will engage on the short sale representing the Seller side, if Borrower agrees to terms.

On the other hand, I will not represent the Buyer side on a short sale; like Juliana said short sales aren't for every Buyer. In addition I will not be in control and absolutely unaware of steps being taken to complete the transaction, unless the Listing Agent is someone I know and trust.

Other than time, there are so many other reasons why a Buyer's Agent may be wasting his/her time engaging in a short sale deal.

1. Borrower may be offered a modification or deed in lieu and cancel the short sale.

2. Borrower expecting funds to relocate from HAFA or Lending Institution, may have those funds cancelled and therefore will no longer be interested in proceeding with the short sale.

3. Lender counters Buyer's offer due to recent valuation (values increasing) and Buyer no longer interested at a higher price.

4. Second position mortgagee/lien not willing to accept offer to settle.

5. Borrower at any time for any "other reason" may decide to cancel. This is a Seller in distressed and no use in pursuing any legal action to make them commit to the terms of the contract.
1 vote Thank Flag Link Sat Apr 27, 2013
Amanda and I refer all short sales to our specialist on our team. We simply don't have the time or energy to do them ourselves, and our guy is really good with them.

As far as writing an offer on them with our buyers... we just explain the good that can come out of it, and all the bad that normally comes with them. Most buyers aren't interested after that.
1 vote Thank Flag Link Sat Apr 27, 2013
Short sales aren't for every buyer. If the sale isn't approved, the lost time can cause problems beyond higher prices when home prices are climbing.

Not every buyer would be happy to buy something like this:
http://julianalee.com/homes/2010/florida_ave_1579/home-for-s…

Buying a home can be stressful for buyers. If a buyer isn't carefully informed and sometimes even if he is, he may blame the failure of his wished for results on his agent. Unfortunately much of the delay can not be shortened by a perfect all-knowing buyer agent nor can all desired information be obtained.

If an agent recommends against a short sale it may be because she doesn't believe a short sale purchase is the best way for the buyer to achieve his goals. I've worked with buyers to purchase a short sale, often when they are purchasing just for the investment opportunity. For them price determines whether they will buy a house, not the need for a home to live in. Some of my clients have bought a REO / short sale home to live in but they were able to match their timing to the short sale process.

Juliana Lee
Top 2 agent nationwide at Keller Williams Realty
Cell 650-857-1000

Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
.
Web Reference: http://julianalee.com
0 votes Thank Flag Link Fri Apr 26, 2013
We are still working on Short Sales despite amazing challenges and the un-predictable outcome of these transactions. It was a business decision for us like Terri mentioned earlier since Bank do NET more money with Short Sales and are pushing more and more properties through the Short Sale channel.

It's astounding how the number have flipped in 2012 where Wells Fargo in US Market sold about 27 thousand homes as REOs vs 77 thousand Short Sales! It was not long ago where these numbers were completely reverse.

If you are getting resistance from an agent to consider your Short Sale, there could be a lot of reasons. Some banks have developed a very rough reputation and we do notice some agents avoiding them. But it's all in how you negotiate with these banks.

Last week at our meeting with Wells Fargo we were told that a Short Sale application for a 1st lien was approved in 7 days which is amazing.
0 votes Thank Flag Link Fri Apr 26, 2013
I would say that depends on whom they represent. I made a business decision to have a team member in my office negotiate listing short sales for me. That team member is experienced and skilled. It is an emotional experience to assist a seller through a short sale and I decided it was in my clients better interest to have someone else coordinate the short sales.

As for Buyers, I explain to the client what to expect. We look at each short sale on a case by case basis. If there are more than three liens, it doesn't make sense to wait that out. I ask a lot of questions of the listing agent. If that agent is forthcoming and I believe they will get the deal closed then perhaps the buyer will consider going forward on the short sale. If there are any red flags, we move on. It is always my clients decision not mine.
Web Reference: http://www.TerriVellios.com
0 votes Thank Flag Link Fri Apr 26, 2013
Time is one of the reasons and also agents need to know how to work a short sale. They are not your typical real estate transaction. Any Realtor doing a short sale should have some training on how to do them correctly to benefit the buyer and the seller. Having said that, buyers and sellers need to know that all short sales are subject to lender approval and no matter how experienced you are, the deal can still go away. Visit my website at http://www.westrealtynoco.com to learn more on selling or buying a home.
0 votes Thank Flag Link Fri Apr 26, 2013
I for one try to stay away from short sale deals because of the unknowns. I don't mind putting time into a deal if I know there will be a pay day eventually. With short sales, we put hours upon hours into them...and may not see a nickel out of it.

There is always the question of whether the lender will agree to a short sale and if so, will they sell it at a price that the market will bear.
0 votes Thank Flag Link Fri Apr 26, 2013
I have no doubt that is the case, along with the associated liabilities. I see more and more that just refers these clients. They easily take 4 to 5 times more time to work as regular sales and only about 80% actually get done. We do a lot of them but have a full time staff working them every day. That is the only way to do them. i used to do all of them myself and it was all consuming of my time. Much better off leveraging these to a Team.
0 votes Thank Flag Link Fri Apr 26, 2013
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