It pays to know "who" you're dealing with when working a Northern Nevada short sale.
I have been working short sales for about 6 months now. I've spent a great deal watching the market niche evolve, and getting educated. That way, when I finally decided to throw my hat in the ring, I felt like I had a good solid foundation to serve this complex client base. Today's case study is about a Reno short sale and I'm the listing agent. The short sale approval letters are good through Monday, January 18, 2009.
As with most Northern Nevada short sales, it's been a lengthy process. There were two loans with two different lenders. Overall, it's gone rather well.
We listed the Reno short sale on September 3, 2009 and had an offer on September 25, 2009.
We received short sale approval from the second mortgage on November 20, 2009, and received short sale approval from the first mortgage on December 16, 2009. There was only one uncomfortable moment during the whole escrow up until now. It was when the buyer's agent called me and expressed her sincere displeasure about the first mortgage refusing to pay for a home warranty, even though the buyer is receiving a substantial seller credit.
I reminded her that I work for the sellers and have no control over the bank. If the buyers want to blow the deal over a $360 warranty, then they need to do what they need to do but it would be a real shame, and by the way, I have a back up offer...I decided from then on to put everything in writing, hence the email communication. The buyer then completed their inspections and their appraisal, and all was right with the world.
I sent an email to the buyer's agent on January 4, 2010, advising her of the need to complete any last minute conditions the lender will need in order to close on time because getting extensions on Reno short sales is very difficult. We exchanged communication and again, all was right with the world.
I followed up last week to be sure that the sellers were signing on time (they sign tomorrow) and the buyers are signing with plenty of time to fund the loan and close, since Monday is a holiday. I sent another email to the buyer's agent yesterday to ask when the buyer was signing, when did they want to do the walkthrough, and so forth.
I got an email this morning that states that the buyer may sign docs Wednesday, or maybe Thursday. The lender usually funds same day but it might take two days because it's a short sale, and if it doesn't go Monday, it'll for sure go Tuesday, the day AFTER the short sale approvals expire.
I replied to her with great urgency, and got all related parties to reach out to her as well (title and lender) to explain how crucial it is this transaction close Friday. I also pre-emptively asked for extensions from both banks for a few days to cover both ends. But it got me thinking...How many short sales has this buyer's agent worked on? Have they ever listed one? How many buyers have they brought to short sales?
You guessed it. No short sale listings closed (one is pending short sale approval), and only one other buyer with a closed short sale. No wonder they behaved as they did in the transaction. They didn't know what to expect. Now I know...next time I'll look up the other agent if I don't know them, and find out who I'm dealing with.
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About The Author
Christianne Gordon, REALTOR®, CDPE, SFR is a Northern Nevada Real Estate Specialist that can assist you with the purchase or sale of real estate in Gardnerville, Minden, Genoa, Carson City, Dayton, and Reno/Sparks.
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Christianne I think there are many agents who just shouldn't be working on shorts or reo's without broker supervision. I 've seen more unprofessional stuff this past few years then I saw in over 20 + years. Unfortuately it has come to be the norm which is sad to say. It's always such a 'breath of fresh air' when we have cross sales with truly professional agents who understand time is of the essence etc. Smart thinking to think ahead and get an extension. We've had to have extensions many many times - and I'm alwasy relived when we've got it in writing for all parties involved.
I'm glad you at least got this closed - good for you!
Hi Anna - Well, we're not closed yet. This week is the 'week of truth'. But rest assured, I will get it closed ;-) The sellers have been through enough - that's why I called ahead for extensions. I could never let that happen to them...
Why is it that many agents are self=proclaimed experts? Wouldn't it be so much more professional just to say, "Look I have not done a lot of these but I really want to get my buyers into this house. How about let's work together to get this done as quickly and efficiently as possible?" I imagine if you were approached like that you would have been super impressed by the agent's candor and the transaction might have gone a little bit more smoothly. That's my .02
Melissa - I would have gladly held the other agent's hand and taught her what I have learned for the benefit of the deal. It would have gone much more smoothly, so, since this type of "hey I'm not sure how to do this" is not congruent with real estate egos...and I can appreciate that. No one ever likes to admit they are unsure or not knowledgeable, so, I'll just do some reconnaissance so I have my own intel ;-)
Christianne ~ First ~ I do not believe the bank will ever pay for the home warranty if property is a short sale, that has been my experience anyway. Second ~ It is always better to ask up front, buyer or selling agent, what kind of short sale experience they have. Once the negotiation process starts, you better have someone who knows what the heck is going on or you could loose the deal at the last minute (those really hurt). It sounds like you are more than capable of getting this property closed!
Terrie - I've never seen a bank do a home warranty either. I never would have imagined I needed to qualify the buyer's agent, but boy, have I learned my lesson. We are on the verge of losing the deal because I don't know that it will close Friday. If not, it's going to blow up. I can't believe it. I've worked so hard to get the first and second to approve the short sale, the MI approved too, and I got the forgiveness of both mortgage balances, and now, it appears it will blow up because the buyer did not get their last minute lending conditions satisfied in time...even though they were told to do so as of January 4th.
Once upon a time, in the era of sub-agency, when everyone worked for the seller, agent humility and necessary tutoring was easier...and quite common.
I'm not advocating going back, but the adversarial approach we now have to buyer and seller representation is a barrier to the kind of candor being suggested here.
The principal broker, not the "other" agent, is the place to go for tutoring.
Ego is always a problem. Let s/he who has never made a mistake, throw the first rock in our common glass house.
I agree completely. I will say that I am happy to share what I have learned with others in the interest of the deal - the other party only needs to be comfortable enough to ask. I certainly don't know everything, but I know more than her. I finally had my broker call her broker and the feedback was that she is getting an education from her broker as we speak, so, as we say, my job here is done. Que sera sera...
It certainly wont be the first buyers agent that ruins a short sale closing. After some unfortunate short sale events I too have now started checking mls history on the buyers agent of every buyer that puts in an offer on one of my short sale listings. If they have done none, don;t understand them AND they dont seem like they are open minded to taking the input from me, I wont recommend their buyer.
The buyer can always find another house...but my seller is on a limited time frame. I can t have time wasted because an agent without a clue screws it up and sends my seller to foreclosure.
I certainly agree that some buyer's agent have no clue as to what a short sale is. On my listings when an agent said they would like to submit an offer I categorically say that short sales might take 1, 2 months or more depending on how good is the offer as everything is subject to lender's approval. I also asked the agent if he/she has any experience with a short sale. If not, then I send them letter on the short sale process explaining in detail the timeline of the short sale. Have a great year Christianne.