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 phrase of the day: managed chaos

Managed chaos, this is the word or the phrase of the day. When you are doing a short sale whether you live in Chandler Arizona or anywhere else, your short sale agent is going to need to know how to manage chaos. That is exactly what a short sale transaction is.

In a short sale transaction you have the buyer and buyers agent, listing agent, investor, servicer, servicer escalations department, MI company all wanting the best deal for them in the time frame they want, which is usually now. Everyone involved is going to be saying no a bunch of time, threaten to pull out or not approve it and eventually you get the approval letter then Fannie Mae wants you to close in five days.

There are so many road bumps and obstacles to overcome in many short sales that to an outside observer or anyone but the short sale agent it probably seems like chaos. The thing is, to the agent who is doing this every day and in the trenches it is chaos, but managed chaos.

We anticipate these problems are going to come up. We know what is normally going to happen next and prepare everyone involved. We have a plan on how to deal with these issues and know how to get around when a new issues arises. The key to a successful short sale is knowing how to expect the unexpected and managing the issues when they explode. And they will explode.

Bank of America short sale resolved quickly by not hearing no

This Bank of America short sale problem was resolved because when they said no, we heard KNOW. Many people hate short sales because they say no to often and many people hate Bank of America because they are slow to respond. When you get the two issues together it could create a problem.

Many times when banks say no the agent negotiating should be hearing KNOW not NO. When you have that mindset it becomes a problem to solve. What do they not KNOW that will make them change their mind.

Can the bank alter a short sale contract?

Video 90: The discussion came up on Twitter a few days ago, in a short sale transaction who owns the house and has the right to negotiate the contract, the borrower who owes the money on the house or the bank who is taking the loss? Can the bank actually alter the contract between the seller, buyer and agents? Any surety companies involved? One agent, the one who started the conversation, thought the bank owned the home and could do what they want. But as any good short sale agent will know, the bank is not a party to the contract and ONLY has the right to approve or not approve the transaction. The only way the bank can get more involved than that is if the short sale agent allows them to be more involved and that should never happen. Would love to hear your thoughts, you can leave a comment or e-mail me Dean Ouellette.

Should I hire a professional short sale company to do my negotiations?

Video 71: Today I am talking about a short sale listing where the buyers and I agreed to try to use a “professional negotiating company” to negotiate the short sale listing. Lesson learned quickly, they may do an ok job of getting files approved eventually, but to them you are just a number, just a file in a large stack of files. Make sure your agent or your agents team is doing the negotiations for you. If they do not have any experience doing short sales, then maybe they should refer the listing out unless you are willing to let them get short sale experience with your listing. So if you are looking to do a short sale in Tempe, Scottsdale or the surrounding area, make sure you know someone who cares about getting the file done is doing the negotiations. Would love to hear your thoughts, you can leave a comment or e-mail me Dean Ouellette.