In the last couple of days I’ve been approached by two Destin FL sellers who wish to do Short Sales. After explaining the Short Sale process, I explained what items I would need. When I got to “financial worksheet” etc. I was stopped in my tracks. These sellers told me that their attorney said not to turn over any information, that he would be handling the short sale negotiations. I immediately told the sellers that I will only take the listing if I handle the entire transaction including bank negotiations. Why?
To take on a listing in this market, and any market, involves taking a risk. That is, a substantial business investment covering the cost “doing” business, which includes time, advertising, payroll, insurance, licensing, internet, phone, rent, etc. etc.. In a normal market, the calculated risk of the business investment is that the listing will most likely sell, and the burden of expenses will reimbursed, plus some business profit. With a Short Sale, the risk is much higher. Why? The Short Sale lender may not approve the sale. And the time investment to reap a return may be five times longer than a normal sale, reducing any profit if the sale is approved.
To lessen the key business risk of an unapproved Short Sale– both for me and my seller, I must control the Short Sale from start to finish. Why? Because I can:
- Assemble excellent lender packages personally reviewed by me
- Directly and immediately respond to negotiators’ calls and emails
- Immediately provide well-written market narratives and critical analyses proving price
- Ensure that appraisers and bank BPO agents understand the subject property’s challenges
- Immediately provide additional documentation required by the lender
- Keep the parties well-informed and in the deal
- Document all tasks in detail for transaction-saving reference
- Provide creative solutions to negotiators’ demands such as promissory notes and cash contributions
- Use twenty years of negotiations skills to ensure success
Can a third party do all this? Perhaps. But I know I can. If I pass along the critical Short Sale negotiation stage to a third party, my company’s business success is entrusted to others, as is my seller’s chance of approval.