FIVE MISTAKES IN SELECTING A SHORT SALE NEGOTIATOR

March 26, 2010 at 5:03 pm 8 comments

Here are five things homeowners considering a short sale of their home should be wary of when selecting a Realtor or agent:

1. PART-TIME REALTORS – It is difficult to negotiate a short sale if your Realtor does not work during the day when lenders are in business. Part-time Realtors provide part-time service, which can result in lengthy delays in the progress of your short sale.

2. HIGH THIRD PARTY NEGOTIATION FEES – Beware of Realtors who hire third party negotiators who charge high fees to negotiate the short sales. These fees could decrease the net gain to the seller’s lender, resulting in the lender declining what seems like a good short sale offer. Always find out from the Realtor if he or she is negotiating the short sale, or is hiring someone else. If so, ask how much the negotiation fees will be and who will pay for it. Some third party negotiators charge the buyer for their fees — in most cases buyers do not want to pay for this fee, and may eventually walk away or refrain from making an offer.

3. PROGRESS UPDATES – It is important for every seller of a short sale home to get regular updates, weekly if possible, regarding the progress of the transaction. Be concerned if the negotiation company does not consent to a regular report on your short sale. Chances are, your short sale will drag on and on as the negotiator has an unlimited schedule to complete your short sale.

4. UNLICENSED AGENTS – In the business of real estate, there is a distinction between a Realtor and an agent. A Realtor is licensed. This means that the real estate professional is a member of the national, state and local real estate boards and is governed by those boards’ code of ethics and standards of practice. Membership fees for these real estate boards run about $500 annually. An agent, on the other hand, may not have membership on these boards and is therefore not governed by any real estate standards of practice nor affected by any potential sanctions. He or she may also be less aware of changes in the industry.

5. DOUBLE ESCROW — Beware of Realtors who partner with investors to buy your home for an incredibly low price and then resell the house for a higher price to an “end buyer” prior to closing. This is a form of lender fraud and a criminal offense.

Before proceeding with your short sale agreement, be sure to read the “Short Sale Seller Advisory.” This is a comprehensive document recently released by the Arizona Department of Real Estate to inform consumers of the consequences of short sales and other loan workout options. It also provides valuable resources and links important to anyone who is upside down on their mortgage and doesn’t know what to do next.

Click on this link to view the “Short Sale Seller Advisory”: http://www.aaronline.com/documents/ssseller_advisory.pdf.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Scam Central. Tags: , , , , .

NEW SHORT SALE PROGRAM HELPS SELLERS How I was able to speed up a short sale with Bank of America

8 Comments Add your own

  • 1. Chandra Adams  |  May 10, 2010 at 9:31 pm

    Just a minor correction to the post regarding “Unlicensed Agents.” An individual may STILL be a licensed real estate agent regardless of their decision to become affiliated with local, state or national real estate boards. Thus to suggest otherwise may be a bit irresponsible. You are however correct in stating that the real estate professional who chooses not to affiliate with the aforementioned boards, lacks the ability to call him or herself a Realtor, thereby choosing not to being held to a higher standard of professionalism, knowledge and integrity, and having significantly reduced access to industry tools, data, and resources that benefit our clients.

    Reply
  • 3. Chandra Adams  |  May 10, 2010 at 9:51 pm

    I also want to address the idea that the real estate agent is not held to standards of care and sanctions. To the contrary, they are held accountable for their behavior and any misdeeds to their broker (if their license is active), as well as the individual state’s department of real estate–just as we Realtors are. However, as Realtors, we are held to even higher standards of conduct as you mentioned.

    Reply
  • 4. never cold call again By Frank rumbauskas  |  February 6, 2013 at 8:14 am

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    • 5. arizonabargainhomes  |  February 6, 2013 at 8:52 am

      Thank you. I’m glad you found my blog to be useful. I look forward to your future comments. Stay in touch!

      Reply
  • 6. Orlando Realty Consultants  |  March 3, 2013 at 3:39 pm

    Orlando Short Sale Negotiator confesses to using stall tactics…

      I’ve been doing short sales in Orlando since 2005 and something happened last week that has never happened to me before. I’ve been working on this Orlando shorts sale listing for the past 3 months. After negotiating with the bank we …

    Reply
    • 7. arizonabargainhomes  |  March 3, 2013 at 4:09 pm

      This is great information to know. Thank you for sharing. I have a short sale waiting for an approval letter and my buyers are wondering why it’s taking weeks to get it. Perhaps, your story will shed light.

      Thank you again. – Maria Hass

      Reply
  • 8. electrify  |  December 8, 2013 at 5:33 pm

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