Don't get me wrong, I don't like the idea of a short sale. The thought of people losing hundreds of thousands of dollars on the American Dream of homeownership (isn't that what NAR advertises) is horrible for the economy, horrible for neighborhoods and will leave scars for many years to come (way to go Dale).
But as a real estate professional who has been through the ups and is going through the downs, short sales represent an amazing opportunity. And here are the top ten reasons why....
10. They are everywhere. As an agent working with buyers, there is a ready supply of short sales to choose from at very good prices.
9. Lazy agents hate them. And that means competition is low for listing them as well as for buying them.
8. Inept agents screw them up. You have to be organized and thorough as well as patient with short sales and these are not qualities that most agents posess. But I hired an assistant that loves this kind of work.
7. Sellers don't fight the price. When the bank is taking the hit, most sellers have no problem getting to the right price.
6. Short sales are here to stay. With prices down 30% or more in most areas of the country (including my marketplace of Loudoun County), most people who bought or refinanced and used their house as an ATM during the last 6 years are potential short sales. And prices won't be bouncing back anytime soon.
5. Banks agree to 6% in most cases. After years of fighting tooth and nail to make 4.5% and give 3% to the buyers agent, it is nice to get paid for the 30 hours of work I do to get a short sale approved.
3. Short Sale Buyers love the deals they get. It takes a lot of patience and hand holding and waiting but once they settle, buyers are very happy.
2. Debt relief for 10 cents on the dollar. If done correctly, a seller can eliminate all the debt associated with the home for as little as 10 cents for every dollar that they owe. Most banks will be happy to get that on a worthless second loan. And the relief that comes with eliminating that burden is huge.
1. Sellers always appreciate what you do. I have sold many homes short and worked a minimum of 30 hours on each one. I send 100 page faxes on a regular basis. I spend hours on hold. I fight with indifferent employees of banks and incompetent agents. But the appreciation I receive from the sellers at closing is worth it. And they always seem to have referrals.