Anyone Can Do a Short Sale

Yes, it’s true, anyone really CAN do a short sale. But, the real question for any REALTOR considering taking on this challenge is “Why would you want to?”

As a Realtor, surely by now you’ve become aware of the awesome potential of pre-foreclosure short sales in the current real estate market. With newspaper articles, internet blogs, and even such heavy-hitters as CNN and CBS touting the benefits of short sales, it’s nearly impossible to go a day without hearing some new claim about how to capitalize on this great opportunity. In fact, if you’re like most Real Estate Agents and Brokers, you’re currently being hit daily with e-mails and flyers promoting 1 to 3 day “Seminars” which promise to teach you how “anyone” can learn the “secrets” of doing a short sale. Perhaps you’ve even taken the bait and, like countless other agents looking for an edge, you’ve decided to shell out the hundreds and, in some cases, thousands of dollars to learn the short sale business from a self-proclaimed “guru”.

Again, I ask, “Why?”

Have you ever really sat down and considered “what is the return on my investment for all the time and effort it takes to do a short sale?” Or better yet, “am I really growing my business or am I just spinning my wheels?” And perhaps most importantly of all, “am I really the most qualified person to help my homeowners who need a short sale?”

Let’s face it, the PROCESS of negotiating a short sale is really quite simple on the surface, and if all goes well, “anyone” really can negotiate a short payoff with a lender. In fact, after you handle a few transactions, you might even get very good at negotiating a deal with the banks. Yet, if you’ve tried your hand at short sales, then you know that, after all the flowery promises of the guru’s fade away, that’s where the rubber meets the road and that’s when you are left to fend for yourself – battling against a bureaucratic process that is different with every lender and which can become so frustrating that you just want to quit. If you’ve been through it, then you know that the short sale process can take months. You might question whether it’s by design or ineptitude when the banks’ default and loss mitigation departments seem to be toying with you: keeping you and your homeowner stressed out and jumping through hoops the entire time. Did your paperwork get lost? (aagh!) Were your phone calls not returned? (how rude!) Did they find your paperwork (hooray!), only to be lose it again (oh no!). Yes, the list goes on and on, and if you’ve tried your hand at short sales, then it’s likely you have a few “war stories” of your own! Surely you’ve experienced the unpleasantness of when your homeowner becomes unhappy with the process – thus causing you, the agent, even more stress. Hopefully, you have NOT been a party to the worst of cases – in which the agent may be sued by the homeowner if the process fails despite your best efforts! Do you even know how to protect yourself from this disaster?

In the end, you are likely forced to face the question “Just what is my grand reward IF I’m successful in obtaining a bank approval letter for the short sale?” Yes, this question is so vital for the real estate agent to understand, that I’ll state it again a different way, “What’s in it for me?” You already know the answer, yet you may not want to admit it. The fact of the matter is that if you as the realtor are successful in negotiating a short sale, if you spend the 50-100 extra hours of your time to do everything that is required to obtain a short payoff Approval Letter, and if you finally complete a closing for a short sale, then your payoff is… a Real Estate Commission! (Or in many cases a REDUCED commission!). Yes, if you’ve “done short sales”, then you well know that for all those dozens of hours of additional time spent, your reward is…a pay cut! A pay cut? Yes, it’s true, when you do short sales, it’s very likely that the bank will only approve you for a reduced commission (a pay cut). And that’s when you’ll finally learn the “REAL SECRET” of short sales for Realtors (the one the guru’s don’t tell you): more work for less pay! That’s what Realtors get from doing short sales.

So I ask you, does that sound like an effective strategy towards growing your business?

For some readers, the above scenario may seem alarmingly familiar. For others, the process may sound scary. Yet, all is not lost. You can indeed capitalize on the amazing opportunities that short sales have to offer. There is a better way – a solution to the short sale rat race. Did you know that some agents have broken the code to pre-foreclosure sales success? Would YOU like to know their secret? Would it benefit you to know how you can get involved in the short sale process and get paid the same amount that you would get paid if you did it on your owns? Would you like to know how this secret can actually save you time and effort, and free you up to do what you do best? It’s really not a “secret” at all. It’s just common sense!

So what is the real SOLUTION to effective realtor-driven short sales? It’s simple: OUTSOURCE the short sale NEGOTIATIONS portion of your growing portfolio of pre-foreclosure listings. Think about it for a minute and you’ll realize that outsourcing negotiations truly represents a win-win-win for you as the agent, for your homeowner clients, for the banks, and even for your final buyers. But how do you go about outsourcing? The answer is to utilize a company that specializes in building, submitting, and negotiating short sales and take advantage of the Relationship Leverage which they have built with lenders.

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