Even though both are involved in the same market, the estate agent and short sale realtor are two very different beasts.
The thing about real estate agents is that they work on commission basis. They look to sell the house at a very high price so that they get more commissions. The actual price that the home is ultimately sold at is something that's 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 wishes of the estate agent. Due to this, both the agent and the seller are likely to hold out for the higher price possible to increase their profits.
Short sales are somewhat different though as the property needs to be sold as a matter of urgency because the seller either can't meet the payments, or they no longer wish to pay a loan that's worth more than their property. Anytime a home 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 home is sold for is now determined by the lender and not the seller. In fact, the seller has no decision in the matter and normally has no choice but sell to avoid foreclosure.
One thing which would turn a lot of traditional real estate agents away from the short sale is that it could 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, whilst encouraging the quick sale, to prevent the property from going into foreclosure and losing the deal altogether.
One of the main issues which a conventional real estate agent would have with a short sale is the commission received. With standard sales, the commission is agreed beforehand at a fixed percentage irrespective of the cost. Because however the lender is already agreeing to take a hit, they would be ready 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.
Several estate agents may shy away from the short sale because they pay lower commissions and it takes some considerable skill to reach a negotiation with the lender. It may even sometimes be a harder sell for the agent because houses which are being short sold are likely to be wanting repair and maintenance as a result of the previous tenants not having the finances to maintain the property.
Furthermore, a short sale realtor has to be licensed to do so which requires additional training and education, so many may just not be legally qualified to do so. You will find 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 benefit of a market niche.
The thing about real estate agents is that they work on commission basis. They look to sell the house at a very high price so that they get more commissions. The actual price that the home is ultimately sold at is something that's 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 wishes of the estate agent. Due to this, both the agent and the seller are likely to hold out for the higher price possible to increase their profits.
Short sales are somewhat different though as the property needs to be sold as a matter of urgency because the seller either can't meet the payments, or they no longer wish to pay a loan that's worth more than their property. Anytime a home 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 home is sold for is now determined by the lender and not the seller. In fact, the seller has no decision in the matter and normally has no choice but sell to avoid foreclosure.
One thing which would turn a lot of traditional real estate agents away from the short sale is that it could 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, whilst encouraging the quick sale, to prevent the property from going into foreclosure and losing the deal altogether.
One of the main issues which a conventional real estate agent would have with a short sale is the commission received. With standard sales, the commission is agreed beforehand at a fixed percentage irrespective of the cost. Because however the lender is already agreeing to take a hit, they would be ready 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.
Several estate agents may shy away from the short sale because they pay lower commissions and it takes some considerable skill to reach a negotiation with the lender. It may even sometimes be a harder sell for the agent because houses which are being short sold are likely to be wanting repair and maintenance as a result of the previous tenants not having the finances to maintain the property.
Furthermore, a short sale realtor has to be licensed to do so which requires additional training and education, so many may just not be legally qualified to do so. You will find 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 benefit of a market niche.
About the Author:
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.
No comments:
Post a Comment