5 Reasons to Embrace the Short Sale Transaction

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

short saleIn 2007, I came to the forgone conclusion that short sales and listing short sales was a goldmine. That is, the short sale listing is a great source of income for any Realtor® working the distressed property market.

Here are the top 5 reasons that short sales are still a goldmine in 2012:

  1. Easy listings to take. Short sale listings are easy to take because in most cases the purchase and list price are not a big topic of conversation in the listing appointment. Since the short sale seller will not net any money (except perhaps for relocation assistance), this takes the short sale listing appointment in a different direction then in previous years.
  2. Commission is a non-issue. Since the seller does not pay the short sale commission and since the commission comes from the sale proceeds and is approved by the lender, the conversation about the commission is a moot point during the listing appointment. Back in the day (read: mid 2000s), sellers always concerned themselves with commission because it would impact their bottom line. That’s not the case anymore.
  3. Fuel Your Real Estate Career. If you are a collector of data and you keep up with your sphere, you should be able to leverage your short sale listings and closings into significant real estate business over the next several years. Seek referrals from short sale sellers for other short sale sellers, and help short sale sellers and their friends to buy in the future. Helping someone who is facing tough times will pay it forward tenfold.
  4. Outsource and create a plan. Times are tough and many agents are cash poor. If you can see past your next closing and spend your time in the field doing what you do best (listing and selling property), then you will always be putting new deals into your pipeline. Don’t waste time on decisions and activities that can be done by others. President Obama does not make trivial decisions about his meals or his attire. He focuses on other things. You should also let other people do your dirty work while you focus on creating more business.
  5. Lots more to come. According to Barclays Capital and the Wall Street Journal, at the end of May of 2012, there were 3.25 million loans in default. Do you know what that means for your business? Lots and lots of people still need your help today.

So, think big and quit fixating on the minutiae. Focus on obtaining as many short sale listings as possible. The success of closing a short sale can be a goldmine in so many different ways.

 

photo credit

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Terri Poehler 10/05/2012 05:05 AM
Topic:
Mortgage / Finance
Groups:
Short Sales Pre Foreclosures Bankruptcy and More!
Short Sales Specialists
Short Sale Support Group
Realtors®
Short Sale REALTORS®
Tags:
short sale process
short sale transaction
short sales

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the scissors to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
628,523
Wayne and Jean Marie Zuhl
Hallmark Realtors - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Melissa, very interesting post.  Having done both short sales and conventional sales, I'll take the non-short sale listing any day of the week.  Waiting for months on end to get answers from the bank and dealing with the negotiators can be a real nightmare.  We'll take a short sale listing, but we don't actively seek them out.

October 04, 2012 07:14 PM #2
Rainmaker
168,923
John & Irma Nelson
San Antonio Real Estate Agents with Keller Williams Legacy - San Antonio, TX
San Antonio Real Estate Agents - San Antonio Homes

I have done some short sales in the past before I knew what i was doing and it was miserable.  The key is know the process and having some relationships in some of these banks...

October 04, 2012 07:46 PM #3
Rainmaker
285,608
Terri Poehler
Realtor - Coral Springs, FL
Coral Springs Real Estate Agent

What a refreshing view on this topic. It's not everybodies thing, but you put a positive spin on it.

October 05, 2012 05:03 AM #4
Rainmaker
1,231,936
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Melissa - I am all about outsourcing these days and love the mailbox money that follows.

October 05, 2012 06:53 PM #5
Ambassador
747,944
Lori Bowers
La Quinta, CA
The Lori Bowers Group

I like the fact that the seller does not care what the price is as long as the bank agrees to accept.

October 06, 2012 09:13 AM #6
Rainmaker
220,085
Brien Berard
Remax Professionals Laurel MD - Laurel, MD
Maryland Real Estate Agents - Laurel Real Estate

Oh yea, the listing appointment is a lot of fun. However, after that its a pain in the a**!.  I outsource on any short sales I get.  Good luck to you.

October 07, 2012 04:53 AM #7
Rainmaker
355,728
MaryKay Shumway
Coldwell Banker The Real Estate Group Door County - Sister Bay, WI
Door County WI Property Consultant

It's hard to work with distressed sellers being displaced.  However, there is money in the field.

October 07, 2012 05:27 AM #8
Rainmaker
255,304
Steve Warrene
Keller Williams Realty - Cranberry Township, PA
The Warrene Team - Your Pittsburgh Professionals

Melissa, I have a few short sales and it's alot of paperwork but they get me alot of business and calls.  The fact that we are taking a very bad house situation for the sellers and turning it into a sale for them and getting them out of their situation is so worth it.

October 07, 2012 05:40 AM #9
Rainer
216,474
Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

All these reasons are in my book, "The Realtors Guide to Shortsale Success" I was a newbie at the end of 2008. I figured I had the choice of a lot of hardwork and a lot of business, or virtually no business from trying the same stuff all the other Realtors are doing. No niche is easy to master but rewards are tremendous for those that do.

October 07, 2012 05:47 AM #10
Rainmaker
891,836
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Melissa, I think short sales take a certain kind of agent. Your five reasons make you that agent.

October 07, 2012 06:25 AM #11
Rainmaker
777,274
Mike Cooper
Winchester Real Estate Sales, Cornerstone Business Group Inc - Winchester, VA
Your Winchester, VA Real Estate Pro

Melissa, I don't mind short sales like many of my colleagues, and your reasons cover most of the reasons I am willing to take them.  I love the fact that setting a price is seldom an issue.  That's one of the biggest struggle with many sellers.  Good job.

October 07, 2012 06:43 AM #12
Ambassador
1,640,134
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Exactly same reasons why I started on this a few years ago.. .thank you for the reminder. .

October 07, 2012 07:27 AM #13
Ambassador
1,507,066
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Melissa, all that you offer up is true, but there is also that sense of satisfaction in helping someone through a tough time. Short sales are here to stay, and the big banks are very cooperative as well.

October 07, 2012 08:00 AM #14
Rainmaker
1,085,735
Bryant Tutas
Bryant Tutas-Tutas Towne Realty, Inc - Poinciana, FL
Broker/REALTOR, Tutas Towne Realty, Inc

Short sales were a perfect fit for my skill set. I LOVE short sales!!

I'm going to miss them when they are gone.

October 07, 2012 08:23 AM #15
Rainmaker
1,198,738
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I'm with Broker Bryant. I love short sales, too, and I will miss them when they go away. However, I also list other homes that are not short sales, and I can tell you that what I've learned from specializing in short sales also applies to regular listings. The sales price is not that important in those, either, not when it comes right down to it. And neither is the commission. Simmer on that one.

October 07, 2012 08:36 AM #16
Rainmaker
267,547
Tamara Inzunza
RE/MAX Executives / www.MovingToNova.com / 703-623-8759 - Alexandria, VA
Homes for Sale In Alexandria VA & South County

I am glad that I have invested the time to learn about short sales.  It's a blessing to be able to offer solutions to homeowners when they don't know where to turn.

October 07, 2012 11:00 AM #17
Rainer
38,433
Jennifer Grace
Elk Grove, CA
Jennifer Grace

Takes a lot of patience, and the important keys are finding a short sale negotiator who will relieve the stress of dealing with the lender and a buyer who will stick with you to the end.

October 07, 2012 11:36 AM #18
Ambassador
1,229,122
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

LOTS MORE TO COME is a great reason to understand and embrace this niche Melissa

October 07, 2012 07:03 PM #19
Rainmaker
648,939
Evelyn Kennedy
Gallagher & Lindsey, Alameda, California - Alameda, CA
Alameda, Real Estate, Alameda, CA

Melissa:

Good thing that you are doing the short sales.  I don't have the patience.  But you are right, if you keep listing short sales you will keep the pipeline flowing.

October 07, 2012 07:41 PM #20
Ambassador
1,550,626
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Melissa - I'm working hard on number four. It's hard for me though I'm learning.
October 07, 2012 07:59 PM #21
Show All Comments
Ambassador
1,090,578

Melissa Zavala

Broker, Escondido Real Estate, San Diego County
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the tshirt to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information