Short Sales Vs. Normal Real Estate
With so many people trying to avoid foreclosure these days, it's no surprise that short sales have skyrocketed in popularity. Real estate agents who want to get the most out of the lackluster real estate market need to open themselves up to the possibility of working with short sales. Before doing that, though, it definitely pays for a realtor to know the basic differences between a regular sale and a short sale. By knowing just what she'll be getting herself into, a real estate agent increases her odds of profiting from the experience.
Short Sales Involve More Variables
When selling a normal listing, agents always have to worry about the buyer or the seller backing out of the deal. Negotiations between buyers and sellers don't always go as planned; sometimes, everyone has to go back and start all over at square one. With a short sale, the variables - and the opportunities for the process to be sidelined - are significantly increased. Negotiations aren't just between the buyer and the seller - in fact, they actually occur between the buyer and the seller's bank. At the same time, the seller has to keep the bank happy, too.
Due to all of these cross-negotiations, the short sale process can get derailed quite easily. Real estate agents need to learn how to avoid these snafus, with the understanding that they are still going to occur frequently. A short sale transaction isn't a matter of a seller who'd like to pocket as much money as possible; instead, it's a matter of someone who's under-water with their loan who'd like to get out from under it without a foreclosure. The interests of the bank - and the buyer's desire to secure a great price - can have a serious impact on the success or failure of a short sale transaction.
Short Sales Require More Time
It's usually in a real estate agent's best interests to move the sale process along as quickly as possible. That way, she can collect her commission and move along to the next sale. Traditional listings can be listed and sold in a matter of ten days to about two months; short sales, though, usually take significantly longer. Assuming that all of the variables fall into place, a short sale can take 30 to 60 days from the time that an offer is made. In other words, short sales require a longer time commitment.
Finding Short Sale Buyers Can Be Tricky
Many investors are interested in buying short sale properties. However, finding them is a whole other story. People who are shopping for new homes are sometimes skittish about buying a short sale; many times, they lump short sales in with bank-owned properties and assume that they will be in poor shape or have other problems. Besides, many buyers don't want to jump through all of the hoops that go along with buying a short sale. Realtors must be prepared to be aggressive about selling short sale properties.
Is Selling Short Sales Worth It?
The many variables that are involved in selling a short sale - along with finding interested buyers and the considerable time commitment that is required - often deter real estate agents from considering short sales altogether. That's unfortunate, because real estate agents can broaden their horizons and enjoy more opportunities by working with short sales. Yes, selling short sales is significantly different than selling normal real estate. Well-informed real estate agents, though, can reap many rewards by doing so. In the end, though, every realtor has to make the decision of whether or not to work short sales for themselves.