Short Sales and Tips for Newly Licensed Real Estate Agents
Q. What are short sales?
A short sale is a sale of secured real property that produces less money than is owed the lender; also called a short pay, in that the lender releases its mortgage or trust deed so that the property can be sold free and clear to the new purchaser. In essence, the lender decides to cut its losses by agreeing to a negotiated sale rather than experiencing the delay and expense of a foreclosure action, with the possible result of owning the asset and thus carrying a “real estate owned” on its books. Lenders often require that the brokers adjust their commissions before the sale takes place — even though the lender is not on the title, it is often positioned to call the shots.
Q. Do you have advice for newly licensed real estate agents?
Congratulations to new agents on passing their state real estate licensing examination. The agent's next step is to hang their license with a broker. And, hopefully, that broker will make sure the agent is properly trained and supervised. Understanding the practical issues of financing, forms and legal contracts, valuation, showing properties, and closing, among others, can appear overwhelming at first.
Here's an additional tip by Saul Klein (CEO of Real Estate Electronic Publishing, home of RealTown):
"Go through your personal address book. Call, mail, or e-mail everyone in your personal address book to let them know that you are now in the real estate business and that you would love to hear their advice and of course, if they know anyone who is interested in buying or selling, that you would appreciate if they mention your name. Don't be shy about this. Don't feel like you can't "impose" on your friends. If your friends won't help you, who will? Ask if it is OK for you to give them an update on your progress after your first year.
"New agents should join the online discussions on RealTalk here at RealTown to help expedite the ongoing learning process real estate professionals experience."
(John Reilly, e-PRO, SRS, is Vice President of Publishing for Real Estate Electronic Publishing Company, home of RealTown.)