Considering doing a short sale? Consider the following...

As a 22 year veteran of the business I have seen a lot of changes in my time but the short sale craze is been the most interesting I've seen in my career. I am a believer in doing short sales and I've done my fair share of them recently. First and foremost please be sure that whomever you choose to assist you with a short sale is able to prove how many transactions they have been involved with, how many they have negotiated and how many they were unable to complete.

Now is not the time to let an experienced agent do the negotiation for you and if your home is in active foreclosure you may not have time if they make an error as we all occasionally do. So how do you really know who to go to first? I suggest working directly with a REALTOR who has a proven track record in negotiating short sales. I should say, "...with a proven record successfully negotiating short sales".

So what about these companies who claim they do the negotiating for you or will charge you a fee to do a short sale? Personally I don't trust anyone who is ultimately going to profit from your (or the banks) loss. Yes, REALTORS will profit but if the home has to sell, ultimately a REALTOR will be involved. Besides a REALTOR actually will do far more work on a short sale than any traditional sale so hour for hour we do these short sales at a deep discount.

I have been approached by companies who work with a REALTOR and they negotiate the short sale for either a fee (to be paid out of closing) or by submitting a low ball offer to start the process and trying to flip the property to another buyer via using the REALTOR to find that buyer. In the case of a negotiation company I have found some reputable companies often times affiliated with title companies who do a good job. Generally these companies do not do the negotiation they simply gather and submit the paperwork.

Lots of companies ask you to sign a (often blank) purchase agreement, authorization letter and other paperwork which allows them to submit a very low offer for one of "their investors". The idea is to get a really low offer accepted and flip that property via a simultaneous closing where "the investor" will only hold the property for a matter of hours before selling to another buyer at a huge profit. Most end buyers have no idea they are not buying from the "Seller" (i.e. - the person living in the home).

Bottom line align yourself with a REALTOR who is experienced (and can prove it), knowledgeable and can explain all your options to you before attempting to list your home. In the end if it need to be sold, that REALTOR is the person that should be able to get it done for you.

Feel free to call or email me your questions at 231-218-5199 or jules@julesyates.com. You can also visit my website at www.ExitShortSales.com