Will Traditional Real Agents Start Short Sales?

Though both are involved in the same market, the estate agent and short sale realtor are 2 very different beasts.

The thing about real estate agents is that they work on commission basis. They try to sell the house at a very high price so that they get more commissions. The actual price that the home is eventually sold at is something that is agreed between the buyer and the seller and considering it is in the very best interests of the seller to sell for as much as possible, this coincides with the needs of the estate agent. Because of this, both the agent and the seller are likely to hold out for the higher price possible to maximize their profits.

Short sales are somewhat different though as the property has to be sold as a matter of urgency as the seller either cannot meet the payments, or they no longer wish to pay a loan that's worth more than their property. Anytime a house is sold for lower than the loan value, the lender has to agree to this because they’re the ones taking the hit. The final choice on the price that the house is sold for is now determined by the lender and not the seller. In fact, the seller has no decision in the matter and often has no choice but sell to avoid foreclosure.

One thing that would turn lots of traditional real estate agents away from the short sale is that it may take an incredible deal of negotiating to come to a deal with the lender. They have to be able to strike a compromise between selling as high as they can, while encouraging the quick sale, to avoid the property from going into foreclosure and losing the deal altogether.

One of the major problems which a traditional real estate agent will have with a short sale is the commission received. With standard sales, the commission is agreed beforehand at a set percentage regardless of the price. Because however the lender is already agreeing to take a hit, they’ll be willing to pay considerably less in commission as they look to limit their losses further. The commissions in the instance of a short sale are paid by the lender and must be agreed upon when the short sale realtor submits his proposal.

Most estate agents might shy away from the short sale as they pay lower commissions and it takes some considerable skill to reach a negotiation with the lender. It may even at times be a difficult sell for the agent because houses that are being short sold are probably to be wanting repair and maintenance because of the previous tenants not having the finances to maintain the property.

In addition, a short sale realtor has to be licensed to do so which requires additional training and education, several may just not be legally qualified to do so. There are still a number of estate agents however who are qualified and experienced in the short sale and those who can short sell are able to take advantage of a market niche.
Are you interested in short sale training and confused where and how to get helpful information? Visit http://www.shortsaleology.com where in you can find all the details.