The term “short sale” was hardly even heard of 4 years ago. The name alone is so ironic in that it usually takes 3 months to a year to close.
Most Realtors® won’t even show them as now a days you are lucky if they close at all. They are without a doubt the most frustrating of all sales. Still I guess we will be forced to live with them until someone let’s the lawmakers know that enough is enough. We need regulations and rules. Realtors are either getting rich or running for the poor house.
Fannie Mae recently passed a regulation that prohibits banks from negotiating the buyers commission or reducing them. A small but great victory for buyer’s agents who are at the mercy of the listing agent. Most of the time they offer 2.5% – 3% and state on the MLS that if commissions are reduced they are split 50/50.
Well I guess we have to take the word of the listing agent and their escrow officers on this.
I recently had a listing agent tell me that they reduced the total commission to 3% and I was to settle for 1.5%. She then accidentally forwarded me an email from the bank negotiator, who allowed a 7% total commission. Talk about dishonesty and greed. Unfortunately it is very prevalent in this market. I did manage to get my 3% but with a lot of Broker to Broker combat.
How I long for the old days. When the seller was the owner of the home and not the bank.
I see greener pastures ahead.
We are already seeing recovery and price increases in Orange County. Sellers have been scared to sell because their appraisal value is too low from the foreclosure and short sales comps. I am finding my buyers have no problem paying the higher regular sale prices. Buyers are weary of foreclosures and short sales and jump at the chance of an old fashioned 30 day close standard sale. Some would pay a great deal more.
So I would say it is a great time for sellers to sell their home. Cheers to getting back to normal!