How do realtors make money on short sales

How do realtors make money on short sales

Posted: DMITRY 101 Date: 05.06.2017

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Do not send me email notifications for new answers. I am surprised that the listing agent has not called you. When this happens you may want to contact the Broker at the Listing Agent's office.

There could be a number of reasons you did not receive a call back.

I contacted a realtor five times for a client regarding a short sale before they finally called me back and explained that they had eight offers on the property and it would be a waste of time for my client to makae an offer. But to answer your question, yes, we do receive a commission on a short sale. Does a new home builder sales representative have the right to refuse to write an offer?

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I had one person at the listing agents office tell me it's a short sale. Is that the reason nobody is calling me back?

There is an agent listed for the house on realtor. I would think that realtors would be kind of hungry for a sale around Christmas. Very frustrating as we need to buy by January! Problem Select one Offensive content Irrelevant content Spam pure self-promotion Other. Your email Please enter a valid email address. Content flagged We will review this content. This service is temporarily unavailable. Please come back later and try again.

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Just a follow up. I found out info on the property. I can only assume that banks just don't care about selling short sales, as they make it as difficult as possible.

The agent told me exactly what all of you said. It can take up to 6 months for the bank to accept or reject an offer. After that, if they accept the offer, they want you to close in 30 days. In the meantime, the old owner is still in the house until the day of closing. I cannot request that they leave and I cannot go in as a "rent to own" deal. So if I go and look at this place and make an offer, the owners basically have a few more months to trash the place while I'm waiting for the banks to accept my offer.

I guess the moral to this story is don't mess with a short sale unless the house is vacant and unless you have plenty of time to wait. Totally not worth it. Thanks anyway to anyone who answered my question. I learned a lot about short sales yesterday. Yes we are relocating from VA to CT. I don't like to commit myself to one realtor while I'm searching. I always tell people to feel free to send me their listings and if I see one I like, I will have enough courtesy to call that realtor to show me the house.

However, realtors have multiple clients, family, kids, etc. I work from home and have no kids. Nobody is going to put more time and effort into house hunting for my house than me.

So I really don't like tying myself down to one realtor to find and answer all of my questions. But anyway, since short sales are such a pain, I may have to skip it. I'll look into it but still continue my search for other homes. Honestly, everything the realtors have sent me are the same homes I find on realtor dot com.

Nothing new I couldn't find on my own. They do see homes before they come on the market, so for that I find a realtor helpful.

What I don't get is why the banks are bitching about having no money yet they can sit on short sales for so long? If they don't have the manpower to process the short sales, then they should hire more people. Is it really benefitting a bank to have a house just sit there? Who wants to wait than long on a sale or who could, really? Maybe a speculator, but how many of them are there really these days? If you need to move by January you're wasting your time.

Short-sales take 3 months minimum unless divine intervention happens. The agent isn't calling you back because they have no idea what they got themselves into and they realize they have a dead dog on their hands that will never sell. The bank is likely not approving a price much-if any- lower than what they owe which is obviously way too much.

Thus the house continues to sit there with no activity. The agent is now pulling the famous short-sale listing agent disappearing trick. This happens when an over zealous agent comes waltzing in talking about how great they are and all the short sales they've done. In reality they took a 2 hour seminar at their local RE board and now think they're an expert.

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They've never negotiated with a bank and likely haven't even figured out who the bank is yet. Try looking around on Realtor. Once you find a few research those listings agents and pick the one that you feel will best represent you- maybe interview them all.

This will produce a hard working agent ready to find you properties you can actually close on when you need to. Shorts sales and foreclosures tend to be very very very slow in the sales process.

It isn't uncommon for it to take three or months to get responses to offers. Lisa, I would suggest finding a REA, especially if you are not in the area I might be wrong, but when you say transfer it sound like you are not currently living in the area. The reason I suggest getting an REA is for two purposes assuming you are not in the area.

Also if possible I would look for REO's over short sale.

how do realtors make money on short sales

REO's are already on the lenders books and usually do not take as long as short sales. Thanks for your replys. I didn't think I would close by January so much as at least pick a house by then. My husband is being transferred to Connecticut. I really would rather rent, however, with 3 large dogs it's almost an impossibility. It seems renters are now rubbing their hands with greed since it's more of a renter's market. I'm seeing ugly 's houses square feet and wanting 2k a month rent plus taking care of the lawn and snow.

And this is the Hartford area! It's not like it's Stamford. That's for house rentals. I haven't looked at condo rentals but I just don't see it happening with our dogs.

Plus after 8 years of renting in the past, I don't want to go back there again. Sure it may put more money in your pocket but you never, ever feel at home. At least I never did. So the only way I can comfortably buy in this market is to look at short sales and fantastic deals.

There are still many seller in CT who think it's Seems the bubble hit their area later than the south. People here in central VA are much more realistic about price it seems. So in my very frustrating searches, when I finally find a decent house, I can't get anyone to even answer my questions. Seems like they are just dodging me.

Thanks for your help again. I'm going to get someone on the phone and try to get the bank to do their own appraisal to see what kind of an offer I can go in with. In this slow market, I've become an "Expert" on "Short Sales".

The seller's bank has to approve the short sale before it can close. Not many agents are experts on short sales, nor do they really have any knowledge about short sales. So, when a call comes into an office and the agent answers it and sees it the notes "Short Sale", they may be hesitant.

But, they "Should" refer you to the listing agent. BOTH the Listing Agent AND Buyer Agent gets commission on a Short Sale, unless otherwise specified by the Listing Broker.

It's the same as a regular sale of a property, it's just that it takes longer to close and there is usually a lot of paperwork involved from the seller's bank, which the listing agent sometimes gets involved in But, if you can find them, you usually are getting a good deal on the property, since it is selling for less than what is owed.

You might want to look for listings that are not REO or even better, rent. If REO or short sale are the best sales in your area you would be better off renting for a short time just so that you can go through the process. I've seen short sales take a month to close, but also have seen them drag on for over 6 months. It really depends on the Lender more then anything else. The Lender sometimes are not motivated to close quickly thus the process can be very tedious and slow. Let me add that I started inquiring about the house 10 days ago!

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