Friday, October 19, 2007

Short Sales Suck - Agents Walking Away

Though I have been optimistic about selling a home short, it seems more and more real estate agents are getting tired of dealing with banks who expect more money from buyers and their agents commission. AGENTS ARE WALKING AWAY FROM SHORT SALES!

I've been seeing more listings specifically mention "NOT REO / NOT SHORT SALE" as agents are starting to avoid short sale homes. I mean do I really blame them? It's already hard enough to find qualified buyers with at least 5% down, then to find them a home their going to love. Just imagine doing all that work + the crazy paperwork, then the bank rejecting your offer and demanding more than what the agent listed the home for. How many times can you kick yourself or bang your head to the wall? I guess as many times needed to avoid the next Short Sale crisis!

Just today, I was visiting a top producer who is a close friend of mine. He was very discouraged about dealing with short sales saying, " I just had a deal fall apart because of the bank. I'm avoiding short sales and looking for homeowners with equity."

To minimize the risk of losing a great client and potential sale, more agents are looking for bank owned homes. In fact, with a bank owned home, your dealing directly with the bank. Also, bank owned homes are usually priced 10%-25% below market value. The listing agent representing the bank is most likely an REO specialist so he/she will know what deals the banks going to take - minimizing wasted time & money. What I've been seeing is bank owned homes offering $10,000 credit to buyers to help pay their non-recurring closing costs.

At this present time, unless the banks wake up and start negotiating on short sale homes, more agents are going to find bank owned homes the attractive option.

Recent articles:

Bank Owned Activity for San Fernando Valley

Buying Distressed Properties

Los Angeles Bank Owned Homes

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