Three Biggest Misconceptions about Short Sales

First of all, “yes” some short sales take long to sell and “yes” some short sale listings can be frustrating. But let me tell you this; not all are created equal! With a little patience and a little creativity you can overcome some of the shortcomings of listing pre-foreclosure/short sale properties and make money by helping homeowners get out from underneath the huge burden of debt and stress they are under. Let’s deconstruct three of the biggest short sale myths: * 1. Reduced commissionsrn * 2. They take too longrn * 3. Too hard to close 1. Reduced Commissions Yes, it’s true when it comes to a short sale; the lender is in the driver’s seat. And since they hate to lose money they tend to reduce the amount of commissions by an average of 1%, meaning that if your area pays out 6%, they will only approve 5%, which will be split by both the agents involved in the transaction.rnYou know what I say to that? But with the right negotiator working on your behalf that can be protected 2. It Takes Too Long The average loss mitigator receives an average of 30 NEW files a day. Not a week, not a month but a DAY! That is part of the reason that short sales can take a while, but it isn’t the main reason. The primary reason is because the majority of real estate agents submit short sale packages that are less than adequate and professional! Meaning: * They are incomplete in terms of paperwork (entire documents are missing) * They are arranged poorly (Yes, that makes a difference!) * They are sent to the wrong person or department (happens very often) * They are incomplete in terms of information (i.e. the financial worksheet isn’t completely filled in) Those and many more reasons cause short sales to get hung up. Once again, take what the defense gives you. If loss mitigators are overwhelmed, then the key is to put together a professional and presentable short sale package guaranteed to get your short sale offer reviewed and approved. 3. They Are Too Hard to ClosernWith the right system they are not hard! Let’s take a look at how to overcome the two biggest reasons why short sales blow up right before the closing. a. Not managing expectationsrnThis is a negotiating process. Make sure you clearly communicate the process every step of the way to the buyer and the seller. It is important to keep everyone connected and updated in the short sale process. Many deals blow up because real estate agents fail to communicate to both the homeowner and the buyer the current status of the short sale and what to expect when they negotiate with the foreclosing lender(s). b. Lack of qualified buyersrnThe key is not to have only one buyer but to have a pool of qualified buyers that are pre-approved. The best buyers to keep an eye out for are those that are already pre-approved and that have funds in place to make an actual purchase. In conclusion, listing pre-foreclosure/short sale properties can take some time to close. However; in this market everyone needs to stick together and help one another out. By building the right network of real estate professionals, we can all ensure that our listings (short sales or not) do not sit out there without a buyer!