A local real estate agent
posted today on his blog about why short sales suck.
It sounds like his clients had a legitimately bad time, but he is painting with a very broad brush. One bad experience does not a pattern make.
The author writes that he represented two well-qualified buyers on a moderately priced short sale. The listing agent (who represents the seller) in the transaction obtained approval from the bank within ten days...then called and said a "better" offer was on the table, effectively backing out of the contract thanks to language found in addendum RE 44 (which is not, as a matter of fact, required by Idaho law).
This is bad news all around--it has little to do with the transaction being a short sale. Here's how we would have handled things as the listing agent: Once the bank accepted the first offer, we would
never have let our clients get into a bidding war. It might be said that it is the listing agent's job to get the most money for the house. However,
listing agents represent the seller, not the bank. In a short sale, if a listing agent has been successful in getting the bank to accept something, they should not introduce potential time delays.
Whiles the rules and regs are constantly changing, at the present time, if multiple offers are received
before they are presented to the bank, then it only makes sense to write up the highest offer. But once the ball is rolling, only backup offers should be considered.
The writer/agent advised his clients not to move ahead, and he concludes with two parting thoughts:
"You’re much better off to find a clean, sharp home offered by a motivated seller who has enough equity to negotiate a fair deal with you.
[snip]
If you want/need to buy a home and get moved in, short sales are a total waste of time and energy for all concerned."
There are two issues here. Firstly, short sales are a fact of the present real estate environment. With Idaho one of the leaders in foreclosures nationwide, short sales are a way for home owners to potentially avoid this nasty experience (and "ding" on their credit report).
Secondly, it's about being a trustworthy, well-trained agent who is going to work towards a win-win situation
every time.In a perfect world there are no short sales and no bad agents. Since it's not, we work with what we've got...and we do it with excellence.
We'll write more on how we've been trained to handle short sales by a career loss mitigator and why that training means we are closing short sales every month.
Labels: Boise, Real Estate, Short Sales
