Today, I turned down a listing. It was not easy. It was a short sale. When listing a short sale, there are certain parameters that must be met. Here they are:

1. The seller must allow you to set the price. You know the market.

2. The seller must allow you to adjust the price based on your judgment.

3. The seller must provide all financial documentation necessary to complete the sale in a timely manner.

4. The seller must authorize you to speak with the lender on his behalf.

5. The listing period must be longer than six months. Allow time for short sale processing, so make it one year.

6. The seller must be reasonable with his expectations for a short sale.

7. The seller must trust you.

Short sale outcomes are not guaranteed. The seller may have to bring a cash contribution to the closing. The seller may have to agree to a promissory note. The seller will probably get a 1099-C for cancelled debt. He may get a deficiency judgment and be responsible for the remaining balance. Or the short sale may be denied.

In the case today, the seller had returned my listing agreement marked up with additional terms. He added that the short sale lender would remove negative reporting from credit bureaus, not issue a 1099-C, waive all rights to a deficiency judgment and relieve the seller of any further obligation.

I informed the seller that these demands were not likely to be met. I would not agree to an undertaking with unreasonable expectations. He insisted. I declined the listing. Would you?

It's Wendy!

Destin Short Sales

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: [email protected]