Short sale myth-busting

Something I hear out there from a lot of agents, most of them not doing short sales from the listing side is Chandler short sales are getting easier to get through than they used to be. Well maybe if you are comparing them to 2007, but short sales are not any easier to get closed today than they were 6, 8, 12 months ago. In fact they may be harder.

Short sales often have the MI company, or investor or servicer pushing back wanting more money, cash contributions, promissory notes or relying on bad valuations and sticking firm. I am not sure why banks are putting their foot down more than they used to, it may be because the cost difference now between a short sale and foreclosure may not be as great because of all the extra staff that has been needed to be hired to process them. But whatever the reason is, one thing is certain if you are looking to get into short sales because they are getting easier, be prepared to be stunned.

Kristin and I probably talk to a few agents each a month that start doing short sales then come asking for help. They conversation is usually concluded with them making a statement such as “I am not doing another one of these short sales again.”

Chandler short sales a lot like Chandler weather

The weather in Chandler Arizona is in my opinion the best in the country. Here in Chandler it is sunny an average of 330 days a year. This morning when I woke up was one of the other 35 days a year as it was windy, dusty and about to rain. So while the weather in Chandler is great, it is not perfect.

Just like the weather, even with the best short sale agents things will not work out 100% of the time. The industry average of short sale closings is close to 40%. The best agents will close somewhere between 80-90% of their short sales. If any agent tells you they close 100%, RUN. They are either lying, have lost their mind or have not done enough deals.

There are reasons that short sales do not pan out that are sometimes out of the control of the listing agent. But while no one will close 100% of their deals, there is still a big difference between those closing 80-90% and the industry average of 40%.

The reason some agents close 85% while other agents close less than 30% is a combination of experience and understanding that every no is just one no closer to getting a yes.

Chandler short sale agent talks about BPOs hurting deals

As a short sale agent in Chandler I have noticed recently there are some serious BPO issues that continue to hurt the short sale market in Chandler and surrounding areas.