Why Are Listing Agents Of Short Sale

Why Are Listing Agents Of Short Sale

Taking Adversarial Position With Buyers

 

It is becoming common practice on today’s

short sale and foreclosure markets that

agents and broker are taking on a

adversarial position with buyers who place

low offers on the table. The problem most

agents do not understand is the banks are

not on the side of the seller they are the

adversary.

The banks position is they want the most

money the Sellers position should be to get

out of the home without going to

Foreclosure. The more their agents take the

position of trying to protect the seller and get

more money than the home is really worth

based on the debt the more risk the place on

the seller.

In creating offers on Short Sales and Pre-foreclosure homes the agent on the

buyers side must do a detailed study of the market. To do this correctly they must

use Active Listings, Sold listings in the last 60 days and homes under contract

currently.

In many markets this is the hardest thing to do! Many listing agents are using out

dated information by going back six months on solds because the market in many

cases has already changed two or three times in the period.

When agents are doing BPO'S or "Broker price opinions" they do not even look at

the home and go over any defects the home may have that need to be address

when presenting offers to the bank.

If the package that goes to the bank for consideration, does not include a detailed

report and break down the bank cannot completely understand what the future holds

should the foreclose.

A complete package should include the following!

A complete detailed report on the current market based on the home and like homes Sold, Active, Under Contract and Expired. They also should determine any homes sold with agents.

Complete detail inspection report for any and all repairs needed on the home.A neighborhood study of of all foreclosure and short sales in the area with address and dates along with prices.

A completed cost break down showing all cost and fees including the cost of not taking the offer over the long term and what is will end of costing the bank should they foreclose and have to carry the home.

The offer from the buyer with all documentation supporting the buyers ability to close should the offer be accepted.

 

A updated title report disclosing any and all liens or judgments on the homes titled.

Seller financial statements to include but not limited

Current Bank Statements

Current Asset statement

Current tax returns

Letter of hardship

Banks current short sale package

Details of funds available to bank after agreement to settled

Any and all documents to support the sale price

The problem is that many agents just jumped into the short sale and

foreclosure segment of the real estate industry simply because they could not make

sales any other way but they did not receive the education or the understanding of

what is takes to make offers look more attractive to the banks. It is no longer like it

was before the Seller really should not care what the home sells for the only thing a

Seller today should be thinking about is WILL I ESCAPE FORECLOSURE!

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