Aug
26


10 Ways Your Agent is Successful with Short Sales

Friday, August 26, 2011

 

Here are the agents’ 10 steps to mastering Short Sales:
1. Get educated. "Education is the first step," says Buzzetto. "I have the CDPE and SFR; you need this kind of training if you’re going to speak confidently and intelligently about the process." Juarez agrees. "Remember that this is someone’s financial future in your hands, so you need to know what you’re doing, or you should refer the lead on to a Short Sale specialist."
2. Team up with experienced agents. If you’re new to Short Sales, it’s wise to find an agent who is doing them and is willing to partner up with you to share expenses and responsibilities, Buzzetto says. Not only will you learn the process and become better prepared, you’ll also minimize the chances of fudging your first few sales if you have a skilled mentor.
3. Determine whether you can help. At the first meeting with distressed homeowners, find out how far behind they are and if they’ve exhausted all other options (loan modifications, mediation, etc.). There’s a chance that the bank might work with them so they can stay in their homes. If you don’t think you can help, step back and refer them to a trusted local attorney who can better assist them.
4. Explain how it works. "They’re going through one of the darkest times in their lives, so talk through everything as if they’re children, and repeat things 10 times if you have to so they understand it," Juarez says. "Don’t talk down to people, but ask the hard questions and be honest and realistic about what’s next." He also provides a document checklist to his clients and gives them one week to return the required information. "We will not put a Short Sale listing into the MLS, nor will we spend time or money marketing it until we get all the documentation."
5. Price it aggressively. Juarez completes a Broker Price Opinion on a Short Sale listing, then prices it in the lower end of the range. He also schedules 10 percent price reductions if no offers come in. "A BPO has all the clout in the world," Buzzetto says, "so contact the agent performing it to find out if that person is local and knows your market. Have your own CMA ready so you can compare notes on how you each arrived at the listing price, and be prepared to make your case to the lender if the values differ drastically."
6. Qualify buyers. Getting a loan pre-approval letter from buyers is a must before you can submit an offer to the bank. Also, buyers need to understand that they can’t make multiple offers on Short Sales and just bail if it takes too long. "Once you sign a purchase agreement, that’s a legally binding document," Buzzetto says. "That’s why I require buyers to pay an up front deposit and get an inspection within 10 days of making an offer. People who balk at that are probably not serious."
7. Establish rapport with the lender. Once the process starts, get in touch with the bank and speak with someone in the Short Sale or escalation department. Juarez suggests calling first to get things rolling and to ask if anything else is needed for the package. If you’re not sure who to contact, check the lender’s website for its Short Sale or loss-mitigation department; the CDPE has a great resource for tracking down contacts, too. Once a representative is assigned to your listing, email them weekly progress updates and track every single exchange.
8. Submit a complete package. This is crucial, both agents say. You’ll have a better chance of a bank approving a Short Sale offer if you submit a detailed package that includes items such as: a hardship letter, current W2s, bank statements, pay stubs and mortgage statements, a financial worksheet, a signed listing agreement and CMA, a lender pre-approval letter for the buyer, and other forms requested by the lender. Missing documents or incomplete forms might cause the lender to reject the offer.
9. Communicate often. Update all parties on the process at least once a week – even if there’s nothing new to report. If you don’t, you’ll leave your sellers and buyers feeling like they’re not a part of the transaction, and they might not stick around, Juarez says.
10. Stay in touch. Once a Short Sale closes, your work isn’t over. Help clients with their next step, whether it’s a relocation or finding a rental property, and keep in touch. After clients have a few years to rebuild their finances and credit, they’ll likely want to buy another home. If you treated them well and helped them get past a turbulent time, they’ll likely turn to you first when they’re ready to jump back into the market.

10 Steps for Agents to Master Short Sales


1. Get educated. "Education is the first step," says Chris White. "I have the CDPE ; you need this kind of training if you’re going to speak confidently and intelligently about the process." Remember that this is someone’s financial future in your hands, so you need to know what you’re doing, or you should refer the lead on to a Short Sale specialist.

2. Team up with experienced agents. If you’re new to Short Sales, it’s wise to find an agent who is doing them and is willing to partner up with you to share expenses and responsibilities. Not only will you learn the process and become better prepared, you’ll also minimize the chances of fudging your first few sales if you have a skilled mentor. "Fortunately I've successfully closed over 50 Short sales for my clients", says White.

3. Determine whether you can help. At the first meeting with distressed homeowners, find out how far behind they are and if they’ve exhausted all other options (loan modifications, mediation, etc.). There’s a chance that the bank might work with them so they can stay in their homes. If you don’t think you can help, step back and refer them to a trusted local attorney who can better assist them.

4. Explain how it works. "They’re going through one of the darkest times in their lives, so talk through everything as if they’re in crisis, and repeat things 10 times if you have to so they understand it," . The White and Weeks Team also provides a document checklist to clients and gives them one week to return the required information. "We will not put a Short Sale listing into the MLS, nor will we begin marketing it until we get all the documentation." This is actually a benefit for the client.

5. Price it aggressively. Chris White completes a Broker Price Opinion on a Short Sale listing, then prices it in the lower end of the range. He also schedules 10 percent price reductions if no offers come in. "A BPO has all the clout in the world," he says, "so contact the agent performing it to find out if that person is local and knows your market. Have your own CMA ready so you can compare notes on how you each arrived at the listing price, and be prepared to make your case to the lender if the values differ drastically." The Team has had great success working with the lender to make this happen.

6. Qualify buyers. Getting a loan pre-approval letter from buyers is a must before you can submit an offer to the bank. Also, buyers need to understand that they can’t make multiple offers on Short Sales and just bail if it takes too long. "Once you sign a purchase agreement, that’s a legally binding document," White says. "That’s why I require buyers to pay an up front deposit and get an inspection within 10 days of making an offer. People who balk at that are probably not serious."

7. Establish rapport with the lender. Once the process starts, get in touch with the bank and speak with someone in the Short Sale or escalation department.  Calling first to get things rolling and to ask if anything else is needed for the package is ideal. If you’re not sure who to contact, check the lender’s website for its Short Sale or loss-mitigation department; the CDPE has a great resource for tracking down contacts, too. Once a representative is assigned to your listing, email them weekly progress updates and track every single exchange.

8. Submit a complete package. This is crucial, both agents say. You’ll have a better chance of a bank approving a Short Sale offer if you submit a detailed package that includes items such as: a hardship letter, current W2s, bank statements, pay stubs and mortgage statements, a financial worksheet, a signed listing agreement and CMA, a lender pre-approval letter for the buyer, and other forms requested by the lender. Missing documents or incomplete forms might cause the lender to reject the offer.

9. Communicate often. Update all parties on the process at least once a week – even if there’s nothing new to report. If you don’t, you’ll leave your sellers and buyers feeling like they’re not a part of the transaction, and they might not stick around.

10. Stay in touch. Once a Short Sale closes, your work isn’t over. Help clients with their next step, whether it’s a relocation or finding a rental property, and keep in touch. After clients have a few years to rebuild their finances and credit, they’ll likely want to buy another home. If you treated them well and helped them get past a turbulent time, they’ll likely turn to you first when they’re ready to jump back into the market. "Above all," Chris White advises agents, "put the needs of your client first."

 






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Estella said
"That is a beautiful shot with very good lighting ." about Women Consider Owning a Home to be a Vital Component of the American Dream
on Sunday, May 12, 2013 @ 9:57 AM

Chris White - Team Leader said
"Unfortunately you are not alone. It's more than an outcry. The powers that be really need to come down harder on Bofa than they already are. Working on these short sale for over 2 years now I've uncovered down right fraud happening on the lenders parts. If they cared more about moving this country forward than protecting their own wallets then they would cut the red tape and approve these short sales in a timely manner. Our team made the wise decision to get BofA loans which were FHA or Freddie Mac backed, approved prior to listing on the market. Then we can list the home as "Price Approved" and close in 30 days. In this instance BofA does a full appraisal, rather than an incompetent "Broker Price Opinion" (nothing against agents but they have no idea how to make adjustments on comparable homes) and then the bank issues an "Approval To Participate" letter which dictates what price we can go on the market and take anything north of 88%. I really do hope your situation improves. " about Congressional Bill to Speed Up Short Sales
on Tuesday, August 30, 2011 @ 9:15 AM

Lisa Zeiner said
"We made an offer 4 months ago to BofA, and have heard nothing. It was a cash offer which is better than the zero money they are collecting now. And since the people don't care they are trashing the place, by the time BofA gets around to it our offer will be gone as the place is a mess!! Septic issues now, garbage being dumnped. All of this could have been avoided if BofA really wanted to correct their cash flow problem and sell these properties in a timely manner. They cry about cash but then do nothing intelligent to fix the problem" about Congressional Bill to Speed Up Short Sales
on Tuesday, August 30, 2011 @ 9:06 AM

Jones Ramirez said
"Thank you for the work you have done into this post, it helps clear up a few questions I had." about How do appraiser’s determine a homes value?
on Tuesday, April 19, 2011 @ 10:07 PM

HollyRobsonf said
"Hey - I am certainly happy to find this. great job!" about Bank of America to Offer Principal Reduction to Underwater Borrowers
on Wednesday, April 13, 2011 @ 6:45 PM