Aside from the frustration that many have experienced dealing with a short sale, I believe the transaction obeys to the laws of science. It's an equation, and if there are many unknowns, it won't be solved.
There are things that need to be done by the listing agent before and after the house is on the market. If all the ingredients are in, the transaction will be a success. The buyer's agent should ask the listing side some questions to determine if the listing has a chance of being approved by the bank.
Short sales can be great deals if done right.
If an agent doesn't choose to work short sales, I don't think they should steer a client away, but instead be up front and let the client know it is not in their business practice but refer them to someone who will work with the short sale should the client want to pursue them.
I have worked both sides representing seller, or family searching purchase I am seasoned veteran in real estate sales.
Times closing can go very smooth with no problems.... never know each property stands alone
However amount of time vested educate your buyer regarding standard procedures, why's, repeated conversations of melt downs by family not understanding process.
I am composing a letter of statement of future home buyers who want pursue these properties, I can refer them item A - Z .
National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
I had a buyer recently give up on looking at things in her price range (90% short sales) around here and has decided to look in NH instead - she can spend the same amount, get more for her money, and not have the extra worry about whether or not her short sale offer is accepted. I encouraged her to go for that, since it was in her best interest, even though I was losing a client.
Since most of the buyers in this market right now are first-time homebuyers, anything that makes the transaction sound or feel more difficult, they're going to want to stay away from. That's just my opinion!
Depending on who the lender is this process can take 45 days or in the case of one of my properties- 1 yr. Buyers who are NOT patient or need to find a property sooner for any number of reasons should steer clear.
Another reason is that on most short sales the lenders don't pay for much, including termite repairs,back HOA dues or even closing costs. So alot of 1st time buyers can't look at these homes as an option.
The ONLY exception is if the short sale already has an approved price and that approved price is realistic to the given market area. This way you already know what the price is, and what the bank will pay UPFRONT and there is no months long waiting period.
Hopefully this process will be streamlined in the near future to make it proceed faster, but it may take awhile due to the intricate web some of these loans are woven into.
Hope this helps!
Short sales are a real source of fustration for many buyers and alot of it is the fault of the lending industry, more and more agents I'm finding are less interested in dealing with short sale properties than they are with REO properties. When in doubt ask your client's agent to discuss why and perhaps you can all explore the best options for the client.