In addition to what you say here many agents that list short sales haven’t a clue how to do one.

Ned

Well, there are some benefits to short sales such as preventing deficiency judgments in the case of non-purchase money loans. But listing them when they’re not approved just leads people down a garden path, I think.

I do appreciate the comment and the visit. I’ll check out your blog as well when I’m not so tired.

Really well thought out article. As an agent who has been on both the listing and buying end of a short sale (both successfully and unsuccessfully), I agree that the short sale is not the panacea that it is made out to be. It is not a “get out of jail free” card.

I hope, though, that you did not mean to imply that a short sale is no better than a foreclosure for the homeowner. Both have serious ramifications for the homeowner, but the SS is certainly the lesser of two evils.

Finally, here in the Chicago area, I am seeing banks agree to short sale workouts. As our market did not get anywhere near as inflated as yours did, maybe that is the difference. That our short sales are considered “truer” hardships? Don’t know.

Nonetheless, great article and I’ll be sure to bookmark you!

Tim Soper
RE/MAX Pinnacle
“Will/Grundy Real Estate Report”

I’m more down on Short Sales than you. Why hope when you can work on real deals?

Have you checked the closed rate on the Realtors selling the course and claiming 90%? Also, what’s that 90% from — surely not from open listing (it’s not that high in the best of markets). 90% from bank approval would beg the question.

Sure, they’re “possible” if our colleagues get educated — I’ve even had one close — but as a buyer’s agent I have to look at what’s likely. As it turns out I was just working on a new article so I have “last 30-day” numbers for Sac County available for quoting as of today. 39% of active inventory in Sac County are short sales, compared to 34% for non-distressed sales. Also, compared to non-distressed sales, short sale properties that did sell were discounted an average of 24% (about $81,000) from non-distressed sales. Yet of everything that closed in the last 30 days, 22% were non-distressed compared to only 8% for short sales. So even though short sales are discounted 24%, non-distressed sales outsell them more than 2 to 1.

But the real big seller is the most heavily discounted — the REO.

ALso I took a course that is taught by Realtors that are able to get a 90% close rate. So with some education, they can be possible.

Frank

Thanks for the kind words about the post and the theme.

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