Extreme Makeover – Real Estate Edition – Part I : Your Value Proposition

Diane,

I have been involved in one short sale. It closes on the 26th. I started it early in April... an agent friend said I don't have the time... I said I would do it for the education. Yes, after 32 years in RE, I get it more every day.

Ultimately, I have tracked about 50 hours including phone, email and fiduciary tasks as well as all work my assistant (licensed Broker) and I performed. Ultimately, the pay will work out to $310.00 p/hour. I am sure this is rare that it works out that high p/hour. It is a $620k sale. The lender (CW) is paying a full fee.

Each one is different and I would first suggest that you evaluate how realistic and committed the seller is to helping and doing prompt work. Paula is exactly right on the authorization for you to talk w/the lender. My seller had an attorney in another state, not familiar with RE work, helping. Yes she was a help. It did save me hours.

I would say you really need to evaluate each detail. If the first and second are with different lenders... CAUTION! Most of ours go down the toilet. The house also cannot have a lot of issues in a home inspection, particularly wood infestation.

You may want a home inspector / termite dude to take a look. Ask for a favor... take them to a business to business lunch to return the favor or pay them a reduced fee... it can help. AS IS Where IS is the way they eltimately sell. This can help in your approach to marketing and pricing.

Best to you, but there are variables... but be careful to evaluate. I went on a straight commission deal. Paula works hers on a consulting basis. I lack the experience or relationship with the lenders. She has much more.

My education was profitable... the agent wont accept a referral fee so I am sending him w/wife to dinner several times with gift certs.

Communication is what took so much time... follow every phone call with an email and document everything so you have records. Files move (at lenders) many time to new people.

Good Luck!

Bill Holt, ACRE, On the Outer Banks, NC - www.obxmls.com

Thank you for your reply. I will most likely write an offer on this listing. The value (after doing a rough CMA) comes in about 20K under what the offering is.

One thing I must keep in mind is how quickly values can shrink as well as escalate. Last year I was working on a transaction in Layton, UT. The agent for a major builder (the property had no connection with the builder) raised the price of his own personal property by 30K in one month. I was incredulous and asked "How can you do that?" He replied "Because I can". I'll let everyone know how this plays.