Are We Now The Problem???
I know, I know I'm going to get hammered for this one but I have to ask opinions on this. It has dawned on me that as banks try to improve there short sale operations, homeowners begin reaching out for short sale guidance and agents KNOWING short sales comprise of a large amount of inventory are WE now the ones sometimes HOLDING up the short sale process and the speed at which these deals can get done???
The superstars on this site know the importance of professionalism and attention to details in this amazing and challenging niche however there are MANY that are unresponsive in getting proper documentation, collecting FULL packages, don't complete there tasks, and ultimately slow the process down.
So could it be that WE now are the ones who are sometimes the problem? Curious on everyones thoughts.
Replies to This Discussion
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Permalink Reply by Eric Mieles on
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Isabelle,
I agree. I have an internal checklist for my team that keeps us knowing when and what documents are coming in. If you look at the root of the problem it's not that "Some" just don't know what to submit it lies more with work ethic, dedication, pride and education.
I'm aware that there will always be Realtors who aren't always striving to be the best they can be and because of the ease of getting into our profession we will always fight that however I just was curious on others opinions when thinking about this niche/process from the other side and the many Realtors who clog up the system with innefficiency.
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Permalink Reply by Trina Gonzales on
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Eric;
I can agree with you but I would have to say that on a VERY small scale. It's not us. By in large it's the servicers and their: staffing turnovers and training issues, duplicate departments, outsourcing of critical QC depts outside the US, negotiators who have never sold a property in their lives and more that's slowing up the process. Great food for thought though...
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Permalink Reply by Alan Weiner on
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as being one of the few non-realtors on this site, I wonder-why would a realtor want to handle the negotiation with the bank. There are professionals, title companies and law firms, who specialize in this. My position has always been that the realtors should buy and sell and let the other professionals do what they do. Even if it costs you .5%, at least the deal gets done. Yes, the real estate profession is slowing down the process. Buyer's agents who submit a contract on a short sale with a 30 days close; listing agents who don't properly scrutinize the pre-approval; listing agents who don't require a reasonable GFD; most of all, listing agents who are trying to complete the process are their own simply because they went to a 2 day class!. Do they know the ins and outs of HAFA? How about the FHA rules? What are they going to do if the bank asks for a deficiency-can the negotiate it out of the approval? I am sorry because I can go on and on. The bottom line is that short sale facilitiation and negotiation has become a new industry. There are certain professionals that can navigate through the process. Let them do it. We will scrutinize the contract, the financials and the entire deal. You will get more deals closed and waste a lot less time.
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Permalink Reply by Bryant Tutas on
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Alan. You assume that these other entities know how to handle short sales. My experience is that some do and some don't. I have taken over many short sales for sellers who wasted months and months with an attorney trying to handle their transaction. All the seller got to show for it was a big hole in their wallet.
On the other hand I know some agents, myself included, who are excellent with short sale negotiations. I handle the entire process because I donlt trust anyone else to take cat eof my sellers as well as I do.
Did you know that some of these 3rd party negotiators and attorneys charge by the month? Is a title company going to be available at 8pm on a Friday when the BofA negotiator calls needed to discuss the file? I doubt it.
A good short sale agent is a far better choice than anyone else to handle a short sale. We are available and we get paid on contingency.
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Bryant, I guess that explains why I am so busy. We don't charge by the month and yes, I give the negotiators my cell contact. In addition, after hours our office phones get forwarded to our in-house person who can deal with the file. We also are paid on a contingency. We get some fees from the bank at the closing and we take .5% of the commission. We ask the listing agent to co-op at 2.5%. The listing agent gets 3%. If the commission gets reduced below 6%, the 2 agents split the 5% and we just get whatever fees we can negotiate in the deal. We do not charge anything up front.
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Permalink Reply by Richard on
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Mike,
I didn't have the option of firing the listing and selling agent in the short sale however I had the option of walking away. But as for the buying agent, I had that option. And, for a person that lacks confidence, refuses to improve their skills, doesn't feel the need to set up automatic and milestone contacts with the adjoining parties, is afraid to step on the adjoining paties/selling agents toes when necessary doesn't work well with me.
I believe that I did more work myself in that short sale than any of the other parties. In fact, it was to the point where it impressed the selling agent, he called and asked about my data and assessment techniques and then, he asked me if I was interested in being hired to do BPO's for him. As a person in another profession, I was shocked at the lack of pride in a standard process.
The end result, I moved on and, I will tell you that I fired my buying agent from any future consideration....my own brother. He and our families understand why. And as I told them, if they don't agree, then they can loose the opportunities and money involved in the process of working with unskilled agents.
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That is why I do not show short sales if I am not familiar with the person working the short sale. We have a large invetory of REO's that we show. If the short sale is mine I will Show it. And I am disgusted with the amount of people (not including Realtors) that have jumped on the short sale band wagon. We have had investors that lost their $ in realestate investments that saw short sales as their new nest egg, teamed up with a broker and tried to solicate our business and wanted us to turn all of our files over to them. A lot of our short sale business are people that purchased through our office or they were referrals and I am not turning the file over to another party.
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Bryant, Trina, Alan and William,
I agree with your post, however it's also my opinion that the industry has not changed and/or adapted to the environment. Short sales are a different beast and most longtime agents and real estate attorneys need to understand that. Equally, the lenders need to understand this impact when they hire their personell. All professions adapt over time if they want to become a dinosaur. Nothing remains the same. The day of the abundance of the traditional sale is behind us, at least for now.
What I noticed with the agents that I worked with was they seemed to approach short sales with the same urgency, strategies and similar techniques as a traditional sales. That really sucks!!! Because, with traditional sales, you don't have the 4th, 5th, and 6th parties involved. I think that it needs to start with NAR. Every agent should go into a transaction with the mindset that I want to be successful on this ......my name is on it. Unfortunately, I don't think that happens all the times.
I will say, in all fairness to all the great agents out there doing this type of work, this more than likely no longer an 8 hour job. And if you are a full time agent putting in the many extra hours doing this, you should be compensated accordingly.
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Richard. I think that agents that were truly good at what they did before are now good at short sales. For me a short sale is just another deal. I've been negotiating real estate transaction for myself and others for 30 years. Short sales just add another layer of negotiations. Maybe it's because agents during the boom didn't have to negotiate. It was just list and/or show properties and write the deal.
Now organization and negotiating skills are the top 2 requirements for dealing with short sales.
I also think many agents shy away from short sales due to fear. Fear of the unknown and fear of liability.
Training and experience is what's needed.
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Permalink Reply by Donna Clayton, Broker, MBA on
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Agents are sometimes the problem, but any unprepared or uneducated party can bear the blame, depending on all of the variables involved. But what I am finding is that the BPO or Appraisal is what can invariably make or break the process.
The biggest problem I am facing with my short sales are valuations that don't match reality. When the value comes in on-target, the process goes smoothly -- like clockwork. But when the valuation is off, the entire process is thrown into a seemingly impossible loop. This single point in the process -- the BPO -- is what will make or break the short sale.
So what can we do? Most importantly -- MEET THE BPO AGENT OR APPRAISER WHEN THEY VISIT THE PROPERTY!! Offer comps, and TALK TO THEM!! They hold the key to our success. We can't educate the world, but we can do whatever is possible to take control of our own deals. That is the lesson that I have learned.
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Permalink Reply by Tara Nagelhout on
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No Donna, you do NOT meet the BPO agent at the property and give them comps. NEVER do this!! It is wrong, many BPO companies ask us if anyone pressured ur or tried to persuade our value. If I say yes, the will report that to the negotiator. Depending on how much information you hand over ( i have been give copies of the offer to purchase), you could be violating state laws. Plus...we don't want the comps, they go straight in the shredder. Working around YOUR schedule to make an appointment doesn't fit into our daily plans, especially based on what we are being paid. Just price the house correctly and let us do our jobs.
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Tara, I see I really struck a chord with you! However, I would beg to differ. I can't imagine how offering examples of fair comparables and discussing critical marketplace factors would be considered a violation of laws. I have had very positive results after providing information to appraisers and BPO agents, which they obviously can choose to use or to exclude in their analyses. I am not suggesting (in your words) "pressuring or trying to persuade" anyone. It's about achieving realistic values based on true market data. Perhaps you have been pushed around by agents, but that is not at all the in the spirit of what I am suggesting.
Good luck to you in your business!
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