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.
4. The alternative is Foreclosure. And that is way worse than selling your house short. Most people can get another home loan in 18-24 months if they work at it.
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.
Your view is really informative….
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Posted by: Matt Morgan | May 29, 2009 at 12:09 AM
Tony - I'm glad to see you getting the word out about your expertise in short sales. There are so many people that need professional help to sell there home short and so few agents with the experience you have, who can offer real assistance.
Posted by: Simon | May 31, 2009 at 11:42 PM
Brilliant update you!!! I liked the way you have presented various things togther in a beautiful manner.
Posted by: real estate finance | June 18, 2009 at 07:57 AM
We must know that Every business owner share same goal in their mind: to increase their sales. That is why,for me i agree and everyone else here getting poetetial leads for your business is very important. The right thing to do is Identifying qualified clients or customers who want whatever a business have to offer is what businessmen need to do.
Posted by: Mortgage Leads | October 27, 2009 at 12:32 PM
Nice proposal . This is a good news too for everyone. The sale will be more energy-efficient.
Posted by: Plus Size Costume | December 29, 2009 at 01:46 AM
Tony, great points. This list really hits the highpoints for buyers AND Realtors.
Posted by: Christine Loschiavo | February 13, 2010 at 12:31 AM
Short sales are going to become more and more common place in this market and the vast majority (even those with a designation claiming expertise) have no idea how to approach one with any chance of success let alone timely success. Short sales offer hard working, well organized agents a glimmer of hope! Though, I haven't found a lot of banks willing to give 6%, 5% is still not bad.
Posted by: Chicago Real Estate | April 06, 2010 at 04:02 PM
Real Estate Professionals will benefit greatly by building their business in 2010… I appreciate this post. Thanks
Posted by: Sunny Isles Beach House | May 07, 2010 at 12:01 PM
This is a very old post, but I just wanted to let you know that this is very informative. Short sales are necessary for sure and are becoming more and more common in the market. Anyway good job.
Posted by: Mortgage Leads | August 17, 2010 at 06:49 PM
very precise post and ideas. this must tell us both sellers, buyers, agents that we must chose only the qualified ones. short sales nowadays are doing steady..
Posted by: socorrosultan | April 11, 2011 at 09:23 PM
love to read it all over..
Posted by: socorro sultan | April 26, 2011 at 08:12 PM