Why I Negotiate My Own Short Sales

In the last couple of days I’ve been approached by two Destin FL sellers who wish to do Short Sales. After explaining the Short Sale process, I explained what items I would need. When I got to “financial worksheet” etc. I was stopped in my tracks. These sellers told me that their attorney said not to turn over any information, that he would be handling the short sale negotiations. I immediately told the sellers that I will only take the listing if I handle the entire transaction including bank negotiations. Why?

To take on a listing in this market, and any market, involves taking a risk. That is, a substantial business investment covering the cost “doing” business, which includes time, advertising, payroll, insurance, licensing, internet, phone, rent, etc. etc.. In a normal market, the calculated risk of the business investment is that the listing will most likely sell, and the burden of expenses will reimbursed, plus some business profit. With a Short Sale, the risk is much higher. Why? The Short Sale lender may not approve the sale. And the time investment to reap a return may be five times longer than a normal sale, reducing any profit if the sale is approved.

To lessen the key business risk of an unapproved Short Sale– both for me and my seller, I must control the Short Sale from start to finish. Why? Because I can:

Assemble excellent lender packages personally reviewed by me
Directly and immediately respond to negotiators’ calls and emails
Immediately provide well-written market narratives and critical analyses proving price
Ensure that appraisers and bank BPO agents understand the subject property’s challenges
Immediately provide additional documentation required by the lender
Keep the parties well-informed and in the deal
Document all tasks in detail for transaction-saving reference
Provide creative solutions to negotiators’ demands such as promissory notes and cash contributions
Use twenty years of negotiations skills to ensure success

Can a third party do all this? Perhaps. But I know I can. If I pass along the critical Short Sale negotiation stage to a third party, my company’s business success is entrusted to others, as is my seller’s chance of approval.