There are a lot of elements to Short Sales that are counter-intuitive!
You have to start off with the premise that nobody wins when a property goes to Foreclosure. The Home Owner loses. The Lender loses. The Realtor loses. The Neighborhood loses. The Real Estate Market in general loses in a big way.
And its not always the highest offer on a Short Sale listing that is the best offer!
Here’s an example: Last week a Realtor called me about a Short Sale listing they thought I would be interested in. It was just the kind of property I was looking for. I called the Listing Agent and talked with her about the situation. She didn’t have a lot of experience with Short Sales but was excited about the possibilities that I outlined for her. I could tell from my conversation with her she was lost about the Short Sale process in general. She couldn’t answer even the most basic questions I asked about where she was in the process.
Add to this the fact that the Foreclosure sale was looming on the horizon. Only 10 days away. No time for mistakes.
I told her I could help her navigate the Short Sale waters… which she was receptive to and I made an offer on the property.
Wouldn’t you know it. Somebody else (a civilian) made a higher offer and she, because of her training in Real Estate, mistakenly decided the highest offer was the best offer and went with it.
Today, the property goes to Foreclosure.
You see, she mistakenly thought the highest offer was the best offer. But the highest offer only represented price… not expertise. She lacked the Short Sale expertise to get the Foreclosure sale stopped (the most pressing need and one in which I have had great success) and the Buyer lacked any Short Sale expertise as well. She had locked out the only person who had experience and expertise in professionally packaging Short Sales and negotiating with Lenders.
There never are any guarantees with Short Sales. However, it is critical that Real Estate Agents begin to realize the complexity of the Short Sale process. Very few have the knowledge, experience or expertise to successfully negotiate a Short Sale. Their success rate is dismal (I’ll talk more about why in future posts). In this respect, they do their clients and the community a real disservice.
Focusing on the dollars alone is misguided… and in fact naive.
Working with a knowledgeable, experienced and ethical Short Sale Investor increases the chances of success dramatically. The Client is better served. The Lender is better served. And the Realtor earns a commission (and if done correctly, can make more than one commission legally).
Everybody wins!
But not by concentrating solely on the highest offer.
It’s counter-intuitive, isn’t it?
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