Foreclosure in Chicago>Question Details

Naketa Washi…, Real Estate Pro in Chicago, IL

Are short sales worth the time and effort for Brokers?

Asked by Naketa Washington, Chicago, IL Sun Sep 9, 2012

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Matt Laricy’s answer
They are worth the time as they are part of the business. If its the only route you can go other than face foreclosure, than you must go that route. If I was a buyer though, I would avoid them. Nationwide average of a short sale closing is 25%.
1 vote Thank Flag Link Sun Sep 9, 2012
They sure are, they are the new norm in this industry. You can search properties in the MLS and most will be REO or Short Sale. Not until the property values rise will you see a lack of short sales. They take long and sometimes they never get approved by the selling lender but at the end of the day you have to adjust yourself to the market or sink, sink, sink. Good luck Naketa!
1 vote Thank Flag Link Sun Sep 9, 2012
When the Broker has the buyer there is very little extra work involved. It's a pain to wait 2-5 months and there is no guarrantee that it will work so we usually keep looking during that time frame.
On the slde of the seller it can be a lot of paperwork and very time consuming. I try to avoid them like the plague and fortuneately I do not need them to make $$. I cannot stand dealing with these A-hole banks that act like they are doing all of us a favor. The Feds should have shut them all down!
1 vote Thank Flag Link Sun Sep 9, 2012
Brokers, especially agents need to understand the process and realize the decisions they make when taking the listing determines the outcome. This includes the proper selection of the buyer.

The agents business model must be compatible with the clientele with whom they are working. For instance, if the buyer is shopping above their price point or rely on 'paper hangers' luck, this is a formula for wasting time, energy and resources. Getting caught in this trap is the agents fault.

As another example, many successful short sale specialists will have a buyer for a home before the listing paperwork is signed. There is real benefit in working with a PRO who has a strategy when a buyer decides to enter this 'Wild, Wild, West of Real Estate."

Whether you are dealing with REOs, short sales, or low cap real estate, the business model and ones adherence to it, will determine if the effort is worth the time.

Too often excessive idle bandwidth has agents chasing BPOs and short sales, all simply to fill voids but lacking a real strategy. Some entering this arena will make a killing, others will get.....well, you know what I mean.


Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
727.420.4041
http://RealEstateMadeEZ.us

First Look: http://youtu.be/PumYpkgybXE
0 votes Thank Flag Link Thu Oct 18, 2012
If a short sale home meets my Buyers needs and wants it is absolutely worth the extra time and effort. If a traditional listing is available that meets my Buyers needs I will encourage them to go that way. Contracts and enforcement ability make it a smoother and shorter journey for all involved.
0 votes Thank Flag Link Thu Oct 18, 2012
At the end of the day, I guess so but there is alot more work, time & patience involved for the end result.
0 votes Thank Flag Link Thu Oct 18, 2012
yes..with great communications and expectations management.. they normally are tough deals
0 votes Thank Flag Link Mon Sep 10, 2012
That depends on why the broker is doing it.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Mon Sep 10, 2012
It's a business decision that every Broker must make. As short sales represent a larger percentage of the market than they did a few years ago, many Brokers will say that it IS worth it even though there is a larger hassle/headache factor with these transactions.
0 votes Thank Flag Link Mon Sep 10, 2012
I would say so. They are the bulk of my business. They do take longer than regular sales...but are also extremely satisfying and those of us who know what we are doing will close the great majority of these. I close 90%+ of mine. If thats where the need is for real estate professionals today, why turn your back on a huge portion of the population?
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Mon Sep 10, 2012
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