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- Darrell Self, "Darrell Self"
- Contributions:349
That is true they might be missing something out there. Did they tell their agent what their timeframe was and maybe that is why they were not shown any short sales? In the Texas area it can take up to 9 months from offer to close and maybe that did not fit their timeframe.
- Loren Hoboy, "ArizonaDreamHomes"
- Contributions:77
I discuss with the buyer, what their time frame is. If they have 4-9 months to wait out a short sale then we look at all listings. If they have 3 months to make a decision and get moved in, their risk is quite high. While it is their decision, you need to explain the pros and cons. Short Sale are not for the feint of heart.
- Jerry Cecil, "Jerry Cecil PLLC"
- Contributions:53
I totally agree. I think that it is within a Realtor's fuduciary duty to you to show you all that is out there. I think that it is OK to councel you on the goods and bads of REO's, foeclosures, and short sales. But, to exclude something is wrong. Find another Realtor.
- Michael Russell, "michaelrussell"
- Contributions:330
Some buyers are not a good fit for a short sale but it is not our decision. A good agent will inform his/her buyer about short sales and the process then let them decide.
- wetdawgs
- Contributions:26854
If you are an agent and your agent didn't show you short sales, what on earth is going on?
- Janet McCarthy, "jmccarthyhomes"
- Contributions:18
Buyers should be shown all the houses that are available and educated on the process involved in buying each home - foreclosures have their issues, sshort sales can take a long time, etc... It is the buyer who needs to decide what they don't want to see, not the agent.
- Jennifer Srock, "HomeBuyerSpecialist"
- Contributions:74
Ok, I will play the devil's advocate here.
Short sales are not for everyone. However, I agree that it is not the agent's decision to make. Short sales are so inconsistent that there's no way to tell how any one short sale will play out. Not to mention, the buyer's side doesn't have much control of how it plays out before short sale approval.
Even "IF" the seller's lender approves a short sale, the seller still has to approve any terms that comes with the approval. In most cases sellers are encouraged to speak with a tax adviser and a real estate attorney about the effects of proceeding with the approval because they won't know the effects until the approval is issued. Seller's lender may decline, seller may decline, and should the approval require more funds from the buyer, the buyer may decline.
Buyer's should be properly educated on the possibilities of a short sale not getting approved as well. The national average of short sale success is in the 30 percentile. I believe AZ is in the low 40s. For some buyer's, that is not good enough. Buyer's should be educated to make their own informed decisions. If an agent doesn't agree with the buyer's decision then it's up to the agent's to decline working with that buyer anymore not to steer the buyer into what the agent decides is best for the buyer.
Short sales are not for everyone. However, I agree that it is not the agent's decision to make. Short sales are so inconsistent that there's no way to tell how any one short sale will play out. Not to mention, the buyer's side doesn't have much control of how it plays out before short sale approval.
Even "IF" the seller's lender approves a short sale, the seller still has to approve any terms that comes with the approval. In most cases sellers are encouraged to speak with a tax adviser and a real estate attorney about the effects of proceeding with the approval because they won't know the effects until the approval is issued. Seller's lender may decline, seller may decline, and should the approval require more funds from the buyer, the buyer may decline.
Buyer's should be properly educated on the possibilities of a short sale not getting approved as well. The national average of short sale success is in the 30 percentile. I believe AZ is in the low 40s. For some buyer's, that is not good enough. Buyer's should be educated to make their own informed decisions. If an agent doesn't agree with the buyer's decision then it's up to the agent's to decline working with that buyer anymore not to steer the buyer into what the agent decides is best for the buyer.
- shasta_steve
- Contributions:448
I think probably the biggest reason why agents would steer people away from short sales is they are afraid to lose the business or do not want to wait the many months it may take. Lets face it if you have a well qualified buyer it is a heck of a lot easier and quicker to get them to buy the average foreclosure. If they have a shortsale or two fall through they may get discouraged and go elsewhere. A bird in the hand...
I know times are a changing but two years ago here most buyers agents hated short sales.
- Dee Campbell, "Dee Campbell"
- Contributions:4
Well, what was the time frame for purchase? If they wanted to buy soon, short sales can take up to 12 months and there is no guarantee that the bank is going to approve it. As a Realtor we need to educate our clients about all the aspects of home buying..short sale, foreclosure, resale etc. I also know that there is always two sides to the story..what you buyers are telling you and what they've told their other agent might not be the same..
Hory and Mellissa are basically full of BS.
80% of short sales are NEVER approved in Arizona. They simply foreclose and come back on the market at REO properties.
A buyer could sign a contract, wait 5 months, have the home foreclose and be back to square one. Then sign another contract, wait another 4 months, and have the bank respond at a much higher price.
Easily, a year could by with no home to live in. So, if a person actually wants to buy a home in the near future, short sales could be a big mistake.
I wrote 15 offers on short sales for myself as an investor, had 7 accepted contracts, and ended up buying 2 of them. The other 5 foreclosed or the bank responded with pricing and terms that were not acceptable. Even the 2 I bought, 1 of them I ended up buying for 10% more than the contract price with the owner. Notice the original poster didn't mention any of these drawbacks in their self aggrandizing post?
80% of short sales are NEVER approved in Arizona. They simply foreclose and come back on the market at REO properties.
A buyer could sign a contract, wait 5 months, have the home foreclose and be back to square one. Then sign another contract, wait another 4 months, and have the bank respond at a much higher price.
Easily, a year could by with no home to live in. So, if a person actually wants to buy a home in the near future, short sales could be a big mistake.
I wrote 15 offers on short sales for myself as an investor, had 7 accepted contracts, and ended up buying 2 of them. The other 5 foreclosed or the bank responded with pricing and terms that were not acceptable. Even the 2 I bought, 1 of them I ended up buying for 10% more than the contract price with the owner. Notice the original poster didn't mention any of these drawbacks in their self aggrandizing post?
- S. Chris Webb, "PHX AZ RE BROKER"
- Contributions:411
Roberto is spot on, if a little harsh in the delivery. As a buyer's agent I do everything I can to educate the buyer in all that is involved in the Short Sale process (and I've written lengthy blogs describing them) and although Short Sales sometimes make me want to cringe, especially when the Listing Agent doesn't appear to be educated or experienced enough to get one closed, I give the buyer the ultimate decision whether or not they want to view Short Sales or not. We have been successful with Short Sales for many buyers, and have been on the listing side of many successful Short Sale transactions. That said, we have seen a lot fall through for various reasons. There are not many things more frustrating for a buyer eager about buying a home (or their agent) to wait several months as the property deteriorates, then watch the home go to foreclosure. I have seen buyers give up all together and decide not to buy because of this. It is very important for buyers to be aware of what could possibly happen in a Short Sale, and they need to be given the decision whether they want to see the listings or not.
- Hory & Melissa Team, "hory and melissa"
- Contributions:11
The original topic has nothing to do with what percentage of short sale close.....It had to do with giving the buyer options to look at as it is our responsibility to do so.... as Ethical agents we consult and the clients decide. this is not the wild wild west where we do what we want with buyers...As a great buyers agent you have to interview the listing agent to see what his experience is. That alone contibutes to alot of short sale not closing ......its the realtor in most cases that drops the ball. I used to be in a team where we closed about 90% of all short sales we took and yes we did not say yes to everyone...so the fact that other realots dont know what they are doing as far as short sales doesnt mean that a BUYER should not look at them....
- sunnyview
- Contributions:25139
Buyers can look at whatever they want, but I think it is important to explain that they and their deposit money may be tied up for months while the bank cools their heels before their offer is finally refused 80% of the time.
Many people do not understand the short sale timeline or the fact that unless the bank approves the offer will not move forward even if it is full price.
Many people do not understand the short sale timeline or the fact that unless the bank approves the offer will not move forward even if it is full price.
- Jim Basquette CRS, CNE, "Jim Basquette"
- Contributions:1231
A buyer should be educated by the agent and decide if they want to see short sales. It sounds like the agent did some educating but didn't listen to the buyer that they still wanted to see short sales.
Many buyers will decide not to see short sales after they become educated, but it should be the buyers choice.
Many buyers will decide not to see short sales after they become educated, but it should be the buyers choice.
- Simon Justice Hall, "AustinsRockinRealtor"
- Contributions:28
As I work with buyers my main goal is to get them the best house that suites their needs at the best possible price. The best possible price sometimes means looking at distressed properties. Short Sales can be a gift and a burden at the same time. Most of my buyers do not want to work with short sales at all; while I have other buyers who are not in a rush to move and have the patience to work with them. The short sale process is not all that complicated. It is however time consuming and demanding, not only on your workload but mentally as well. If you are a by the numbers investor the short sales make a lot of cents (pun intended).
- Spirit Messingham, "TucsonSpirit"
- Contributions:663
Your agent should show you everything that is available. As a Realtor with experience with both Short Sales and REO, I explain both to my client and let them decide. Most of the time, I explain if we can find what they want and is not a short sale (no waiting to hear back from bank) then they want to look at those first. I explain the difference and we usually start off looking at all the inventory that is NOT a short sale and then if they still have not found what they want we then go back and include the short sales.
- Get Free REO List!
- Contributions:47
The truth is short sales are a real pain in the rear. Every agent it seems is trying to double end the deal if they have the listing. Becomes so frustrating that I understand why many agents don't want to show their clients these homes. I guess it depends in which market you are but here in southern California, short sales are the normal type of property here.
[Link removed by moderator]
[Link removed by moderator]
- Frank Moham, "FrankMoham"
- Contributions:4
Although distressed does not always mean discounted but your REALTOR should discuss all properties including the Short Sales. The fact is, that Short Sales are not for all buyers mainly due to the time it takes to close.
- Linda Strasberg, "L Strasberg"
- Contributions:2316
If I learned you were an agent I wouldn't show you anything *)
Seriously, if a potential buyer isn't shown short sales...it could be that they're an FHA buyer that needs help with closing costs...it's pretty hard to ask a seller to contribute to closing costs when the house is being offered for less than they owe their lender(s) Asking for seller concessions on short sales or thinking you can dicker around is not adviseale if you want the offer to get accepted.
- klarek the realist
- Contributions:7044
if a potential buyer isn't shown short sales...it could be that they're an FHA buyer that needs help with closing costs...it's pretty hard to ask a seller to contribute to closing costs when the house is being offered for less than they owe their lender(s)
So they probably shouldn't use a buyer's agent either. I mean, that's asking more out of the seller and isn't exactly cheaper than closing costs. Right?
So they probably shouldn't use a buyer's agent either. I mean, that's asking more out of the seller and isn't exactly cheaper than closing costs. Right?
- Ed O'Connor, "Ed OConnor"
- Contributions:60
Great topic and good advice. I do show short sales but as others have said you need to counsel the buyers and also keep looking after the offer has been placed.
- Linda Strasberg, "L Strasberg"
- Contributions:2316
Dear Klarec
Most buyers wouldn't know the difference between a short sale listing or otherwise or what type of financing is suitable for a property...if they don't have a buyer's agent they'll surely be lost...of course there are some agents that don't know anything either so you have to find someone knowledgeble to assist.
Most buyers wouldn't know the difference between a short sale listing or otherwise or what type of financing is suitable for a property...if they don't have a buyer's agent they'll surely be lost...of course there are some agents that don't know anything either so you have to find someone knowledgeble to assist.
- Maria Morton, "MariaMorton"
- Contributions:716
This is not a question. Maybe you'd like to post this in a blog.
- Chris Weaver, "ChrisWeaver82"
- Contributions:1
I generally don't recommend short-sales to first time home buyers because it can be such a frustrating transaction and leave a bad taste in the buyers mouth for future home purchases(if they don't close on that deal). Explaining why is always important. My theory, if it's a smoking good deal, go for it! Market value though=there's probably something equivalent w/ half the headache.
This posting is EXACTLY the problem with real estate in general, and zillow advice by agents particularly.
Unless I am confused, Hory in this posting is the Hory Urias whose license can be seen in the following link: http://services.azre.gov/publicdatabase/DetailIndividual.aspx?id=248888
This person, if it is the same, has had a license for barely a year. The Mellissa, I can't find a license for at all, since no last name is provided on the "hory and melissa" website. If she has the same last name, she doesn't have a license in arizona. YET, they claim 14 years experience, and to have worked at companies that close 90% of short sales, etc. etc... They further scold other agents about how to sell and what to show etc...
that name does seem to come as having a foreclosure sale, and melissa urias is named in a few lawsuits by home owners associations. . So, if you know so much about short sales, why didn't you at least short sale your own home, instead of losing it to foreclosure?
Unless I am confused, Hory in this posting is the Hory Urias whose license can be seen in the following link: http://services.azre.gov/publicdatabase/DetailIndividual.aspx?id=248888
This person, if it is the same, has had a license for barely a year. The Mellissa, I can't find a license for at all, since no last name is provided on the "hory and melissa" website. If she has the same last name, she doesn't have a license in arizona. YET, they claim 14 years experience, and to have worked at companies that close 90% of short sales, etc. etc... They further scold other agents about how to sell and what to show etc...
that name does seem to come as having a foreclosure sale, and melissa urias is named in a few lawsuits by home owners associations. . So, if you know so much about short sales, why didn't you at least short sale your own home, instead of losing it to foreclosure?
- Pasadenan
- Contributions:21466
"as Ethical agents we consult..." -
With a post like the ones in this thread, these "agents" actually claim to be "ethical"?
90% of short sale offers closed escrow?
And escrow closed within 45 days of offer?
And the prices the lending institutions accepted was actually less than market value and less than the other 50% of houses that were very similar but better condition we selling for?
How can they be ethical when they distort the truth, or waste over 1/2 a year of the client's time for absolutely nothing?
With a post like the ones in this thread, these "agents" actually claim to be "ethical"?
90% of short sale offers closed escrow?
And escrow closed within 45 days of offer?
And the prices the lending institutions accepted was actually less than market value and less than the other 50% of houses that were very similar but better condition we selling for?
How can they be ethical when they distort the truth, or waste over 1/2 a year of the client's time for absolutely nothing?
- Michael Emery, "MikeEmery"
- Contributions:7298
Melissa Monjaraz
http://services.azre.gov/publicdatabase/DetailIndividual.aspx?id=243015
Verified through match on cell phone number found on multiple sites.
http://services.azre.gov/publicdatabase/DetailIndividual.aspx?id=243015
Verified through match on cell phone number found on multiple sites.
- Edyta Gryc, "SE Florida broker"
- Contributions:304
I agree with the agents that believe that the decision about seeing the short sales should be buyer's choice, not the agents. It should be no concern that the buyer's deposit will be tied up for months-an offer can be written that a deposit will be paid upon lender's written approval. Once the buyers are educated about the short sale process, its pros and cons, they should decide whether to proceed or not. Sometimes the short sale can be the only option for the buyers. I've worked with the clients who chose a specific small complex (in a desired school district) and the only 2 listings available were short sales. Of course, it can and it is frustrating for both, the buyers and agents if after waiting for few months, the deal does not close-buyers are not getting their house and agents are not being compensated for their work. This is one of the reasons the buyers and agents don't necessarily want to get involved in short sales.
- Chris O'Connor, "CallChrisToday"
- Contributions:269
I'm a bit shocked that none of you have said what I'm about to say, but here it is...
I will NOT show short sales to buyers under any condition unless the short sale is my own listing. (I'll explain why I show my own below) When a buyer contacts me I explain to them the facts about short sales and typically before I'm even more than a few sentences into the explanation they tell me they have no interest in looking at short sales. I don't "omit" the short sales without a detailed discussion. My buyers either agree with me that short sales are too large of a gamble or I politely suggest they find another Realtor. I have NEVER lost a single buyer by being brutally honest and educating them on the nightmares of short sales.
Yes, I understand that short sales can and do close when negotiated properly. I do it all the time. I'm closing on a Bank of America short sale soon and an EMC Mortgage short sale soon. But just because "some" short sales close doesn't make looking at short sales smart. Some people get struck by lightning. And some people win the lottery. The fact is successful short sales, getting struck by lightning and winning the lottery are all uncommon events.
I'm honest with my buyers and as a result they use me year after year after year. I educate them on what short sales are and what they are not. I teach them about REO's and how we can find the best deals. In the end I have satisfied clients that are living in their new homes before the buyers that opted to waste their time with short sales have even received the notice that the short sale file has been assigned to a negotiator.
I'll have to break this reply up into two posts...
I will NOT show short sales to buyers under any condition unless the short sale is my own listing. (I'll explain why I show my own below) When a buyer contacts me I explain to them the facts about short sales and typically before I'm even more than a few sentences into the explanation they tell me they have no interest in looking at short sales. I don't "omit" the short sales without a detailed discussion. My buyers either agree with me that short sales are too large of a gamble or I politely suggest they find another Realtor. I have NEVER lost a single buyer by being brutally honest and educating them on the nightmares of short sales.
Yes, I understand that short sales can and do close when negotiated properly. I do it all the time. I'm closing on a Bank of America short sale soon and an EMC Mortgage short sale soon. But just because "some" short sales close doesn't make looking at short sales smart. Some people get struck by lightning. And some people win the lottery. The fact is successful short sales, getting struck by lightning and winning the lottery are all uncommon events.
I'm honest with my buyers and as a result they use me year after year after year. I educate them on what short sales are and what they are not. I teach them about REO's and how we can find the best deals. In the end I have satisfied clients that are living in their new homes before the buyers that opted to waste their time with short sales have even received the notice that the short sale file has been assigned to a negotiator.
I'll have to break this reply up into two posts...
my Realtor did not show me SHORT SALES
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