Switching Listing Agents while trying to do a Short Sale?
The best business comes in form of former customer referrals but in this case I'm not sure if it would be in the sellers best interest to accept his business, and in fact, it may not be in my best business interest neither. Here is what happened:
Short sale seller contacted me and informed me that he had his property listed for a year with another broker. A contract was received on the property and the short negotiated with Bank of America as the first lienholder, no second lienholder.
According to seller, BoA has approved a short sale amount which is more than the buyer had offered and subsequently buyer has walked away. Home is back on market. I have to add that the home is a repaired sinkhole home and therefore, the pool of prospective buyers is already somewhat smaller.
Seller is unhappy with the current LA because they are difficult to reach and he suspects "buyers" are being lost because of LA unresponsiveness to calls and wants to list the property with someone else when the listing expires.
What would be the implications on the short sale process if he were to change listing brokers now? Would BoA close the file or require the process to be started all over again?
Thus far, I encouraged this seller to discuss his concerns with his LA in light of the extensive work that they must have performed to get to this point.
Has anyone encountered a similar situation and how did you handle it?
Replies to This Discussion
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Permalink Reply by Rosemary Brooks on
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A repaired sinkhole... wow! That is scarry.
Well aside from that, check with Realtor's legal to see what it would mean to you if you took over and got a buyer within a certain amount of time. I'd want to know who the other had offers from so that I would not run into getting an offer that was already submitted and then maybe owning the other agent part of your commission.
I'd check the listing agreement to see what the terms are with the other agent. Have the homeowner give you authorization to speak to the negotiator to see if they did a counter amount and terms so you know what you would be facing (sales date, etc.). -
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Permalink Reply by Suzanne McLaughlin on
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Silvia, I would advise caution. The seller has concerns about his LA, but the file will not go forward without a buyer. LA is not an issue. The only thing that matters is an offer. If the property does have issues, which you alluded to, I would run, not walk, away from the listing. If you have the guts, determination and knowledge of how to deal with the sinkhole isue, (and probably plenty of E&O insurance, if something comes up later), then go for it.
Listing agents who are difficult to reach are another issue entirely. Pick up the phone, agents. It might mean a commission for you, but it might mean the world to a short seller. -
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Permalink Reply by Silvia Dukes on
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Rosemary, thanks for your tips, I haven't done anything yet except run it by my broker for his opinion which I agree with.
Rosemary Brooks said:A repaired sinkhole... wow! That is scarry.
Well aside from that, check with Realtor's legal to see what it would mean to you if you took over and got a buyer within a certain amount of time. I'd want to know who the other had offers from so that I would not run into getting an offer that was already submitted and then maybe owning the other agent part of your commission.
I'd check the listing agreement to see what the terms are with the other agent. Have the homeowner give you authorization to speak to the negotiator to see if they did a counter amount and terms so you know what you would be facing (sales date, etc.). -
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Suzanne, thank you for your insight. You put in words what I am thinking but didn't formulate as well.
I feel that the seller is not only frustrated but also getting desperate. He contacted me because I sold a house for one of his relatives last year in just a little over month, but that was a completely different scenario and miracles I cannot perform!
I think I just have to find the right way to turn him down with respect and encourage him not to give up on his current LA. -
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Permalink Reply by Pam Patterson on
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If the seller rec'd an approval of a short sale but the buyer walked and it didn't close by the end date of the short sale acceptance...then you'll have to start the process all over again with bofa..once a file is closed or a new buyer is submitted, bofa will tell you they start the process over again from the beginning. So switching agents shouldn't make any difference and fyi...a prior negotiated amount doesn't always mean anything when you get a new negotiator...bofa short sales generally are very difficult to complete just because you're dealing with bofa!
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Permalink Reply by Katerina Gasset on
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We list expired listings where the deal has fallen apart with another listing agent and don't have any problems with it. Switching agents is not going to effect anything at BofA. The minute they were notified that the buyer walked, the file goes back in to the big black hole until another buyer is found. You send in a new short sale package with new listing agreement. Full disclosure on the sink hole is all that is required here in the state of Fl. I would have any buyer sign disclaimers and release of liability against our company prior to offer.
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Permalink Reply by Wendy Rulnick on
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Silvia - The other cautionary note is his current listing agreement. He can be unhappy all he wants, but the listing agent he has must release him from her contract. She may not agree to do that.
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Pam, Katerina, Judy, and Wendy, thank you for your comments. The listing agreement is expiring so it would require an extension. The property was first listed a year ago when lis pendens was filed. So besides the limiting effects of the sinkhole issue, time may be running short as well.
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Permalink Reply by Elizabeth Monje on
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Hey guys I don't understand the issue changing agents all the seller has to do is rescind the contract and move on, the LA cannot make them stay or fulfill the contract. Seller needs to write the broker a letter saying to cancel and the the protective period should be void since he/she did not feel LA was representing them correctly, ethically, whatever....... I 5 short sales with BoA 3 I am the selling agent, I took over the negotiaton no problem. On another case LA was seller so he asked me to represent him, all I did was call BoA and say I wanted to take over the negotiaton again they had no issues, I didn't have to start the whole process.....hope it helps!
Silvia Dukes said:Pam, Katerina, Judy, and Wendy, thank you for your comments. The listing agreement is expiring so it would require an extension. The property was first listed a year ago when lis pendens was filed. So besides the limiting effects of the sinkhole issue, time may be running short as well. -
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Permalink Reply by Gunna Voigt on
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I have been the listing agent for a short sale property for which we just secured a buyer. In the meantime, I have changed companies, and since my old broker was not comfortable with the short sale, we agreed I should take the deal with me short sale-wise. I sent in a new authoriation with my new company name, and now we are progressing as planned. No plroblem with BofA.
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Elizabeth and Gunna, thank you both for sharing your experiences. It is good to know for sellers that the process is tied to the property rather than to a person for it to smoothly proceed.
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