Why Real Estate Agents Hate Short Sales

By September 21, 2009 Market Report No Comments

I recently attended a Real Estate Trade Show.  There was a common thread in conversation.  “I hate short sales”.  While we all long for the good old days when buyers had rights (no AS IS contracts) and rising real estate values assured order in our world the simple reality is that at least for now this is not the case.  Anyone who has purchased Ft Myers FL Homes in the past five years and finds that they need to sell for any reason is upside down.  It is impossible to dispute that the market assumptions in effect then are much different now.

Unemployment in 2005 hovered around 3% and everyone was making money.  In 2009 Lee County posts 13% unemployment and many have been on the rosters for so long that they no longer are considered in the calculations.  Today we hear daily about government employees, long considered guaranteed jobs, losing their positions.  Construction jobs have all but dried up.  The result of all this hardship for many homeowners is the inability to keep up with mortgage payments.  Even homeowners with traditional equities of 20% and more find themselves upside down when property values plunge by 50%.  In the end the only way out is a Short Sale.

The key ingredient to any short sale is a purchaser.  Agents find purchasers then submit their contract along with required paperwork to a bank that is overwhelmed only to have it turned down and thus the process begins anew.  We solve that problem by stepping in and purchasing the property directly.  We are able to negotiate with the guarantee to the bank and to the homeowner that if an agreement is reached the deal will transact.  We then find buyers who are able to fix their purchase price and close with certainty in a reasonable time frame.

Clearly this is not a pleasant situation for anyone.  Having to give up a home is emotionally taxing and nobody does it without turmoil.  We are committed to taking as much stress out of the process as we possibly can by doing all negotiating and then closing the deals allowing our homeowners to turn the page and begin anew.

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