By TG Gallaudet
Wait…I’m totally lying. Is there anything more painful? It’s no mystery that short sales can be really tough because of all the variables involved:
* Unclear timelines from the bank.
* Undisclosed liens.
* Back HOA expenses the bank won’t pay.
* Non-straightforward buyer.
* Inexperienced listing agent.
* Cash contributions (increasingly more and more).
* Etc., Etc., Etc…
But the hardest side to represent as an agent is the buyer’s side of a short sale because the buyer’s agent has no control of ANYTHING, and has to hope for a solid listing agent who knows what they’re doing. Right?
I just ended a painful short sale transaction where I represented the buyer that lasted 7 months and went nowhere. Granted, it wasn’t the easy one-loan in equator kinda deal, but we had absolutely no worthwhile answer from the bank after 7 months, which is totally inexcusable in 2011 as far as I’m concerned. The main problem, in my opinion, is that the listing agent saw this sale as a small income producer and pawned the negotiation responsibilities over to his part time TC. The TC had little-to-no experience with short sales, or negotiating any deals, and therefore little experience in working with banks. Because of her inexperience, I think she had little confidence in dealing with the bank and their personnel and couldn’t push back or demand results when she was entitled to do so. After being a listing agent on several short sales, I’ve come to understand that the burden of success lies heavily on the listing agent and specifically how s/he communicates to both the buyers’ agent and buyer, how she sets expectations and what answers she deems acceptable from the bank. Continue reading »
By Brian Copeland
Anyone who knows my business knows I pride myself on strong counseling of all my clients prior to any signed documents. It’s the secret sauce of my business.
This week, I messed up…bad! During the hustle and bustle of NAR Midyear, I had a remote buyer counseling session. I was so busy that I condensed the normal hour-plus session to a smooth 25 minutes. One of the biggest parts of the session is discussing pre-qualification and lending process. Since the buyer had checked, “Yes, we are prequalified with undisclosed mortgage lender,” I took it at face value.
Last week the buyer came to town. We spent two days together. We were ready to go to contract. Buyer says, “Oh by the way, my lender can’t do loans in Tennessee.” They call a lender I often use. They can’t even think about buying a home.
While my initial response was to internally be annoyed at the buyer, after about two minutes of mental processing, I realized I had used a short cut in one of my core business values. I realized this was solely my fault. I am the professional. It is my job to prepare and pave a path of success for all my clients. Continue reading »