What You Should Know Before Choosing a Short Sale Realtor

5 min read

Why This Is Important

Choosing a short sale realtor is a decision that should be taken seriously. You may face numerous challenges during the short sale process, and choosing the right realtor can make all the difference in your end result. Short sales are time-sensitive, and each mistake or lost opportunity can lead to costly results. Do not be carried away by misleading websites, slick sales pitches, or charismatic television salesmen. When you hear things like "you could be rich instantly" or "all your problems can be taken care of overnight," do not believe it. Choosing a short sale realtor involves much more than that if your goal is to settle your financial obligations. Many realtors have come to see the short sale as having greater upside potential than other options like foreclosure or loan modification.

Education

First, a short online course is generally not enough to provide the training needed to be skilled at this type of real estate transaction. There are different nuances and complexities in most transactions of this kind. Don't get me wrong, I'm not saying you shouldn't do your homework and research, just a little research on your own can go a long way toward choosing the right short sale realtor.

Be mindful that some real estate agents claim to be short sale realtors but do not have the education or experience necessary to provide the services you need. This is where your own knowledge can help you separate the winners from the rest. It is important to know the major steps and what to expect throughout the short sale process. Ask the agent detailed questions to ensure he or she is both knowledgeable and able to provide the services listed. A failure to give clear answers to detailed questions should raise concern and be a signal to start looking elsewhere.

One thing to watch out for is fees and costs. When discussing fees, a professional short sale realtor should know all pertinent costs, especially any up-front costs due from the homeowner. Some state laws actually forbid up-front fees related to a short sale, yet some agents may disregard that and still seek fees due right away. Worse, there are scams that involve "real estate agents" collecting fees that are not clearly explained and sometimes not even valid. Another red flag is a guarantee of results, any short sale agent who guarantees results should give you pause, since almost nothing is ever guaranteed in real estate.

Experience

Short sales can be volatile, they vary, and they bring about a number of nuances and unique challenges. This is why experience matters so much, if only for the knowledge base an experienced short sale realtor can draw from. If possible, ask for the names of past clients so you can speak with others about their experience. Even just an email address for a reference can give you firsthand insight into a client's experience. If the realtor will not provide references, that should be a sign that something is not right. It may be that there are no previous short sale clients, or that previous clients have nothing positive to say. Either way, it is not a good sign.

It is vital to have an open and honest working relationship with your realtor. You should not feel uncomfortable advocating for your needs and asking questions. Be sure to ask about the potential liabilities, risks, and pitfalls that can arise. This is a subtle way to make clear that having the agent be straightforward with you is your priority. They need to be your partner, working with you, and that means not shielding you from the negatives or spinning things in a sales-pitch fashion. Ideally, your agent should also be connected with attorneys and certified public accountants who understand the legal and tax issues. It is not reasonable to expect every real estate agent to have a full command of bankruptcy, real estate, and tax law, but he or she should have a basic understanding of these important components.