RISMEDIA, December 30, 2009—Being a loan modification and short sale trainer for the last few years, I have heard numerous complaints about why agents dislike the short sale process and why they stay away from them. But as short sales continue to dominate the real estate landscape, it is crucial that agents reposition their view on short sales, so they can achieve short sale success.
The 5 most popular excuses that agents have when it comes to working with short sales include:
-Banks do not want to do short sales.
-The short sale process takes forever
-The bank never got my fax
-The bank won’t take my offer
-The parties involved won’t cooperate
The 5 biggest mistakes agents make when processing a short sale file include:
-Not checking bank guidelines before they submit the file
-Not doing a BPO or property valuation.
-Not submitting a complete bulletproof file
-Not following up with everyone involved including the bank
-Sending in lowball offers
The easiest way to avoid the short sale blues and the common short sale pitfalls is by having a fresh, positive attitude toward the new number one real estate niche…short sales.
In order to be successful at short sales, agents must be willing to do the following:
The first thing you should do is create a winning team of escrow officers, BPO Specialists, other experienced and helpful agents, processors, negotiators, underwriters, etc. The second thing you should do is learn how to market to people who potentially will be open to a short sale. One way many agents do this is to order lists of people who are 30-60 days down on their mortgages and send postcards, knock on doors, etc. to counsel the homeowners as to what their options are. You should also be constantly seeking new ideas and technology to help with the process and you need to learn how to put together a winning package and get it to the right department. Ninety percent of the battle is won or lost in the package submitted. If you find your files consistently causing problems for you, you need to submit better packages. In addition, you need to follow-up with everyone involved in the short sale process from the bank, buyer, seller and of course, the other agents until the file is closed.
Teaching and coaching a homeowner with good, sound advice will establish incredible rapport, which is necessary to earn the trust of a potential listing; in what many times is their darkest hour. The only way to confidently portray your short sale knowledge is by attending seminars, using technology to your advantage, or learning from the best in the field. The best are always willing to take a minute and help you out.
I have seen firsthand that most of the frustration that can be attributed to the short sale stigma is self-inflicted and can be avoided. If the file is complete, organized, and you follow the proper steps, you can ensure short sale success.