Blogging Broker

According to our recently released Grapvine Newsletter from F.A.R our MLS only closed 47 short sales all of last year.  Last week we had over 700 short sale listings.  These transactions are proving to be difficult to close and here are the problems listed as being most common:

• There is no distinction in our MLS as to whether the bank is working with the seller or if it is just a possible short sale.

• There is no distinction in our MLS if there is more than one lender needed in the approval process.

• They take longer than the typical buyer wants to wait just to get an answer.

• Many of the listed prices are not realistic and have no chance of being approved by the lender.

  My observation is that there is no lack of agents willing to list a short sale but information they provide for “Agents Only” leads me to believe that they may not have a clue as to what they are doing.  Generally speaking they include disclaimers that say in so many words “WE DONT REALLY KNOW IF THE BANK WILL ACCEPT THIS PRICE OR NOT AND/OR WHAT KIND OF COMMISSION THEY MIGHT BE WILLING TO PAY - BUT WHATEVER IT IS WE WILL SPLIT IT WITH YOU (selling agent).

  As a result those who have buyers are reluctant to show these “SHORT SALE” properties.  Who wants to make an offer without really knowing what’s going on - which is what the buyer and his agent is doing 90% of the time.

  I made an all cash offer on a short sale for a client and the Listing Agent didn’t reply back to me for several weeks (so many I lost count).