I list short-sales. No, let me clarify, I successfully list and sell short-sales. Ok, it's true that I spend hours on the phone trying reach the short-sale negotiator and it's also true that the majority of that time is spent on hold (the perfect time to catch up on paperwork and emails). But, although Realtors continue to beat the drum that "short sales DON'T get approved", they DO get approved and my sellers won't have "foreclosure" on their credit record.
On a recent transaction I was extremely fortunate to get a Wachovia short-sale negotiator who is absolutely amazing. He immediately picks up his phone and when he can't, he returns phone calls and email messages the same day. This guy is a keeper! Additionally, Wachovia locates their negotiators within the market area of the short-sales transaction. I don't have to battle with a negotiator across the country about the market value in my city because Wachovia sends their negotiators to view the property. I had my Wachovia short-sale approval in 10 days.
Since he is located in my market area, I asked him to lunch. I thought it important to find out the challenges he faces.
Here is "the other side of the story". This negotiator has 75 files needing his attention on any given day, of which 35% won't be approved as submitted for the following reasons:
- The sales price is significantly below what the home would sell for as a foreclosure (bad for the bank and really bad for the seller who may have income tax liability)
- The accepted purchase contract includes repairs that need to be completed prior to closing at the lender's expense (the lender isn't the seller in a short-sale as compared to an REO).
- The home did not receive sufficient marketing visibility (wasn't posted on MLS, for example)
- This is the listing agent's first or second real estate transaction and they are asking the negotiator to tell them the contractual forms that should be completed (Negotiators aren't normally licensed realtors and, even if they were, aren't paid to act as a Broker)
- The seller is related to the real estate agent or the buyer (not an arm's length transaction)
- The buyer's pre-approval isn't valid (the buyer's income or assets haven't been verified OR the loan officer wasn't aware of the property condition and the buyer's downpayment/reserves are insufficient for approval on the specific property).
- Of the remaining files, another 20% are awaiting additional documentation which he has requested multiple times and still not received (to be sent directly to the negotiator).
In a nutshell, he spends more than 50% of his day on short-sale files that aren't going anywhere due to lack of Realtor experience or due dilligence. Ouch!
Wendy Cutrufelli
Broker Associate
925.917.1135
The positions on this site are my own and don't necessarily represent Alain Pinel Realtors' positions, strategies or opinions.
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Ahhh. Perspective is so important in all we do. Great post about a different perspective! G
Some of those are so DUH type mistakes. I feel for the guy. I just hope that I can run into a negotiator like him when I do my next short sale.
Sounds like another set of initials to me SSE short sale expert. Timing is everything in a short sale and yes agents should have a clue but it is not that hard to get educated.
Great post, unbelievable that there are really so many obsticles the negotiators face. Sounds like a huge disservice to the home owners and the banks when they have an agent unable to negotiate on their sellers behalf. It is scarry how many don't have a clue. I list and sell short sales as well. Thanks for the post.
I understand the no-arms-length part. But, please tel me that agent are doing their due diligence with pricing. Oh, never mind, some of them probably aren't, but most of us left have that much common sense. What we run into is that the banks think they can get more. Not usually true. Or the home won't appraise. DUH?!? We think more often than not the DUH is on them.
Larry: I, too, hope you get a negotiator like him on your next short-sale transaction. He actually called me at 7 pm in order to finalize the details of the approval so he could get it to me in a timely manner the following morning. I almost drove off the road in SHOCK!
Charles: I agree with you, it is not that hard to get educated. If you are unwilling to take the time, DON'T take a short-sale listing!
Tammy: I was surprised at the level of frustration this negotiator felt after only a few months on the job. He has a lending background and was pulled over to the short-sale negotiation side of the biz. He actually had respect for Realtors prior to this position. Another "ouch"!
Suzanne: I must admit when he first mentioned the pricing issue, my hackles went up. I have fought too many battles with out-of-area lenders and poor BPO's to roll-over on that one. But the examples he showed me were so far out of the realm of rational that it was embarrassing.
Good to hear the other side. I have listed and sold short sales as well and it is so important to provide all the details and correct paperwork as well. They do have many on their desk I am sure. Sounds like you have a keeper - hang on to that name! I have a couple of short sales listed with a local bank and the contacts and response time are phenominal even though I KNOW they are loaded down they are johnny on the spot as much as can be. It's the bigger banks where there is the huge slowdown.... ugggghhhh... I find it interesting that when I speak with the bigger bank that the negotiator seems surprised that I even inquire how their day is going and try to keep it all on a positive note. Sure changes their attitude some!
I would believe it! There are so many agents who think they can treat a short sale like they treat other offers. The difference is, on other offers, the other agent will clean up their mess. In a short sale, the bank is not so inclined or obligated. The other facet is, your negotiator does communicate. Many don't.
Great post. What is even more interesting is the time I spend diplomatically explaining the process to new agents or agents that were told to avoid showing short sale listings to their buyers. I've actually made a few new friends locally in the biz by doing so - sort of a precursor to repeat performance on my other listings for their other clients. An ounce of diplomacy in all directions and a half ton of experience goes a long way in closing these. Thanks for sharing your experience with us!
This is so helpful. As we all are dealing with more and more shortsales, it is really helpful to understand what we need to really pay attention to and try to minimize the negotiator's problems.
Valerie: I, too, have found that negotiators at the big banks are suprised when you are pleasant and ask how their day is going. Gives an indication of how tough the job is!
Paula: True on both counts!
Marvin: Thanks for helping new agents understand that short-sales aren't the pariahs of the industry! Setting appropriate buyer expectations is HUGE in the process.
Lise: I think attention to detail is the bottom line. I was honestly surprised at how frustrated this negotiator was after a few short months on the job.
Dear Wendy, we all should pitch in and contribute to the lunch tab, (which I assume you took care of) simply because the information you got is really important. It is true that it is up to us Realtors to present a professional and complete package to them. They are employees NOT Realtors and we must help them understand the mountain of documents we sent. I have written a post regarding some of my experiences with short sales, and helping other agents understand those sales only benefits ALL of us. Thank you for the post.
Antonio
Antonio: Yes, I definitely took care of lunch. My "keeper" negotiator gets paid a teeny, tiny "bonus" upon closing each short-sale in addition to a lsalary (and most know how low lenders tend to put their salaries). Of the transactions he handles, he is closes about 10 per MONTH. My empathy quotient rocked off the charts when I found out THAT detail!