Looking a Short-Sale in the Eye? Don't Blink!

By
Real Estate Agent with Dockside Realty

Worried about your commission in a short-sale?

Last Friday I had the good fortune of attending a class at the Charlottesville Area Association of REALTORS® (CAAR) on short sales.  Yes, I know that doesn't sound like a treat.  What made it one is that the class was conducted by Lawrence E. "Lem" Marshall*. 

Having survived this market with only one short-sale transaction and no foreclosures I thought I was skating on thin ice.  There is no telling how long my luck would hold out and felt it imperative that I learned as much as possible about this "new" type of real estate.

Even the one short-sale I had did not start out that way.  It took tough negotiations to get it where the seller was going to come up short at the settlement table so I cannot really take credit for walking into this transaction with my eyes wide open.

The reason I mentioned the fact that we (buyers and me, their agent) helped create the short-sale is so that you will know that you may be party to doing the same thing if you have not done so already.

Now, about short-sales.  Rumor has it that there are times lenders do not really want to pay the commission that has been agreed to by the seller and the listing agent.  This may not become apparent until the bitter end.  Well, Lem advised us that the end does not have to be bitter.  Instead make sure it is as sweet as ever

Should the thought enter anyone's mind that you will accept less than is shown in your MLS listing simply refuse to accept it.

Refuse!  Refuse!  Refuse!

Do not blink.  Whether you are the listing or the selling agent, simply stand firm.  Do not budge.  What will the lender do?  The chances are very, very good that having come this far, having completed all of the work to get the transaction to this point, the lender is not going to really walk away from the table.

Lem suggested that you ask the lender if the home inspector was asked to give up some of their pay, was the settlement attorney asked to take less than usual, was the buyer able to pay less for the title insurance to cover the mortgage company's coverage, is the county going to accept a reduced tax payment?

Chances are slim to none that any of that is going to happen so why should you, the REALTOR®, be the one to take the hit?

Don't Blink!  Let them.

*For those who do not know Lem Marshall, here is a brief intro.  He is a graduate of The College of William and Mary Law School and is the Virginia Association of REALTORS® (VAR) Special Counsel.  Lem is definitely the go to person for any and all legal questions dealing with real estate.  We, in Virgina, are extremely fortunate to have Lem working on our behalf.

__________________________________________________________________________________________________

Welcome Aboard - Photo by Kate ElimIf you or someone you know is thinking of buying or selling property at or near Lake Anna, Virginia please contact Kathleen "Kate" Elim, REALTOR®.

Kate lives at Lake Anna, knows Lake Anna, loves Lake Anna, and specializes in Lake Anna area real estate. 

Call Kate at 540-226-1964 or by e-mail at lakeanna.kate@gmail.com. Be sure to check Kate's Web sites  and blog at http://lakeannaandbeyond.com/ or http://lakeannacountry.com/

Copyright © 2008 By Kathleen "Kate" Elim, All Rights Reserved. *Looking a Short-Sale in the Eye?  Don't Blink!*.

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For easy property searches check out my web sites: katesellslakeanna.com

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lakeannacountry.com

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Topic:
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470,881
Kate Elim
Realtor 540-226-1964, Selling Homes & Land at LA
Dockside Realty

Hi Gail...Is it agents that are willingly putting that in the MLS?  Are they afraid that they will not get this listing if they do not?

We, as REALTORS®, have to determine what we will accept and what we will not. 

The one way to get full commission is to have a buyer's agreement that requires the buyer to make up the difference.  That may or may not be a difficult thing to do depending on your relationship with the buyer and the ability of the buyer to pay the difference.

With that clause it is like accepting a job without knowing what salary you will be paid until the end of the month.  Just doesn't make sense.

What is the position of your REALTOR® association?

Kate

December 09, 2008 02:09 PM
Rainmaker
238,291
Gene Allen
Realtor Hampton Roads Real Estate
Resh Realty Group

Our association rarely takes a stand on anything and on this I would say they would say to accept what the bank tells them.

December 15, 2008 01:34 PM
Ambassador
470,881
Kate Elim
Realtor 540-226-1964, Selling Homes & Land at LA
Dockside Realty

Hi Gene...Well that would be a bit of a let down.

Our associations were created to represent and help us.  If they don't back us what is the purpose of the association? 

Thanks for your input.

Kate 

December 15, 2008 05:34 PM
Rainmaker
670,747
Kay Van Kampen
Realtor®, Springfield Mo Real Estate
RE/MAX Broker, RE/MAX Solutions

This is good to know, since I'm in the middle of a bunch of short sales.  I'm sticking firm with my commission.  We've earned it after months of patiently waiting for answers and keeping the buyers from walking.

December 15, 2008 06:59 PM
Ambassador
470,881
Kate Elim
Realtor 540-226-1964, Selling Homes & Land at LA
Dockside Realty

Hi Kay...Please stand firm.  Agents must.  You said it right...you have certainly earned your full commission working on a transaction that is usually much harder to get to settlement than most.

The person that suggests that you take less should be asked how many thousands they are giving up to make this one deal work.

Kate

December 15, 2008 07:06 PM
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Kate Elim

Realtor 540-226-1964, Selling Homes & Land at LA
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Additional Information

Kathleen "Kate" Elim
Dockside Realty
4634 Courthouse Road
Mineral , VA , 23117 United States
540-226-1964

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