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.
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.
Not every buyer would be happy to buy something like this:
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.
Top 2 agent nationwide at Keller Williams Realty
Over 30 years experience
Over 1,000 homes sold in Santa Clara and San Mateo Counties
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.
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.
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.