Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Short sales agents work for seller not bank

It can be challenging for short sale agents to strike a balance between the fiduciary obligation that they have to the short sale seller and providing the short sale lender with a transaction that meets their needs.

short sales agent

short sales agent

Fiduciary obligations of a short sale listing agent

An agent contacted me the other day to ask if the bank would prefer a 10-day closing or a 30-day closing. I understand that agent’s mindset, and you probably do too. He wants to get this short sale through the lender’s system as quickly and efficiently as possible and he will do whatever possible in order to see that happen.

However, the constant tightrope that is walked by short sale listing agents is getting tougher to manage. It can be challenging for short sale agents to strike a balance between the fiduciary obligation that they have to the short sale seller and providing the short sale lender with a transaction that meets their needs.

Short Sale Balancing Act

Here are three situations where short sale listing agents may be struggling to do that balancing act:

  1. Selecting the highest offer or selecting the best offer. I’ve often said that highest and best are not synonymous in short sale transactions. The highest offer may come from a buyer that wants termite work, a septic tank certification, and a 60-day closing. The lowest offer may come from a cash buyer that may not be around when the short sale approval finally arrives. The key is to select an offer from a well-qualified buyer that is willing to accept it when the bank changes some of the terms and conditions of the purchase.
  2. Allowing the bank to dictate the sales price without question. Many of the troubles associated with short sales occur when the valuation comes back from the short sale lender. Often the lender states that they want a certain purchase price, based simply on their valuation. This valuation may be wrong. And, if you believe that it is, don’t give up hope. Ask about the guidelines for valuation dispute, and prepare to submit your dispute with the appropriate information.
  3. Allowing the bank to specify how the home is marketed. There has been a lot of hubbub these days about some lenders requiring properties to be listed on Auction.com  Others have stated that the lender wants the property Active on the MLS for a specific number of days, and one lender even specified the language for the MLS. Know that your state association and local MLS have rules. If you believe that the lender will be violating those rules, don’t be shy about using this time as an educational moment.

As far as my call from the agent, I asked him whether the seller would prefer a 10-day closing or a 30-day closing. After all, short sale listing agents represent the seller and not the bank.

Advertisement. Scroll to continue reading.
Written By

Melissa Zavala is the Broker/Owner of Broadpoint Properties and Head Honcho of Short Sale Expeditor®, and Chief Executive Officer of Transaction 911. Before landing in real estate, she had careers in education and publishing. Most recently, she has been able to use her teaching and organizational skills while traveling the world over—dispelling myths about the distressed property market, engaging and motivating real estate agents, and sharing her passion for real estate. When she isn’t speaking or writing, Melissa enjoys practicing yoga, walking the dog, and vacationing at beach resorts.

1 Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Tech News

(Tech News) Auction.com has recently seen a fat cash infusion from Google, and both seek to revolutionize real estate. Again. But who really benefits...

Housing News

(Housing News) Fannie Mae is offering incentives on foreclosures, and while many homeowners are unaware, many agents are as well - time to take...

Housing News

(Housing News) Short sale agents have different tasks than a traditional agent, and the path to success looks quite different; these are seven habits...

Housing News

(Real Estate) Real estate agents are often asked how they survive the slow season, but the truth is that there is no such thing...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.