Much has been written about short sales and, in particular, about real estate agents entering that market to help sellers who are shackled by financial ties. Of course, the other side of the coin is the people who buy shorts. Is there an opportunity for real estate agents on the buying side? Buyers need guidance just like sellers. And in fact, most believe they need more help than traditional buyers because of the complexities of short sales.
If you’re thinking about helping buyers with distressed properties, take a few minutes to consider these tips.
1. Educate yourself. Perhaps one of the reasons you have avoided helping sellers is all the education. Well, if you’re going to help buyers, you’ll need just as much (and some say more) than sell-side agents, this is one of the most important things to consider if you’re an agent.
2. Preach patience. Many buyers enter the short sale market thinking not only that they will get a good deal, but also that they will get it quickly. Not so fast Mr. Buyer. Bank approval of offers can sometimes take weeks, so it’s imperative to first know how long buyers are willing to wait, and then prepare them for the additional time it will take to close deals. You need to educate your buyer well or you may end up with a dissatisfied customer if you don’t expect some aspects of the process. You explain that the process can be challenging, but you also talk about how it’s a great way to find a great home that is usually the best priced home in the neighborhood.
3. Keep emotions at bay. This is a good follow up to number two on patience. Yes, short sales by their very nature are extraordinarily emotional for sellers, who are often incredulous and in denial. But beyond that, because short sales take so long, buyers (and even your agents) can also end up emotionally.
4. Communicate constantly. One way or another to maintain expectations throughout the process is to constantly communicate with everyone involved. Buyers’ agents need to keep in touch with bankers, asset managers, loss mitigation people, but especially sellers’ agents: they need to work closely together relentlessly. And be sure to share any information you get from sellers’ agents with your buyers—keep communications open.