Listing a Short Sale
Due to the number of Short Sale listing agents that are not handling the bank negotiations correctly, the Real Estate Board in Richmond (DPOR ) is looking into cracking down with disciplinary action against agents that are not acting in a responsible and successful manner. With selling agents frustrated and completely vulnerable to the listing agent’s abilities, the DPOR is moving closer to action against these listing agents. I understand it would be based on your listing agent success ratio on Short Sales.
With more and more of these falling through, National Realty recommends no agent take a listing for a Short Sale without permission of the Broker. If you are presented with such opportunity, contact the office. This is a review of steps needed in a Short Sale listing. ( Buy side is not as difficult.)
Listing Agent Responsibility:
Client should sign Short Sale Listing Agreement.
Receive bank information and contact info.
Agent responsibility to follow up on a continual basis is critical.
Place post sign, name rider & lockbox.
Add to MLS
Have seller sign “authorization to negotiate with bank form.
From MLS stats determine and show detail sales price recommendation.
Find the Short Sale Representative for negotiations.
Process all paperwork.
Keep all paperwork confidential.
Order National Sign post install and take down.
Order and deliver HOA documents /facilitate all paperwork.
Order Termite inspection and facilitate all paperwork.
Keep clients informed.
Keep listing and selling agents informed.
Coordinate with lender’s appraiser access to property.
Assist seller on hardship letter and all documentation required by bank.
Handle all correspondence with banks.
Handle selling agent Broker paperwork and signature on addendum, which protects commissions. (This new approved form will set our company policy commission of 6%) but if it is reduced, then both companies would agree to split 50%/50%. The listing of most short sales must be at 5%
Handle detail bank required forms through settlement.