The top 4 mistakes real estate agents make when entering the short sale market
The Top 4 Mistakes Real Estate Agents Make
When Entering The Short Sale Market
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Introduction: Learning from David Letterman
Mistake 1 : Not Realizing How Big the Opportunity Is
Mistake 2: Thinking It's Easier to Negotiate the Deal Themselves
Mistake 3: A Lack of Legal Experience Dealing with Things Like Deficiency Judgments
Mistake 4: Negotiating Too Low – and Losing Out on Valuable Commission Dollars
Conclusion: Black Gold
Learning From David Letterman
Comedian and television celebrity David Letterman made Top 10 lists famous, funny,
and a great way to get his point across to an audience. Sometimes he was making a political
point and sometimes he was simply making fun of someone or saying something true about
His approach is priceless and so we just had to steal his idea. Our list is not a Top 10
list. – it's only a Top 4 list. But I hope it has the same effect as something Letterman would
use. The lessons contained in this report are directed at a specific audience. If you are a real
estate agent, then YOU are our audience and you're going to want to follow along. We
know that you are a real estate guru. You know the real astate business and how to make
money. We're not here to tell you otherwise.
But our team knows short sales, and we want to pass on to you the lessons we've
learned the hard way. These four lessons will not benefit you if you do not take them
seriously, learn them, and apply them to your work. Avoiding these four mistakes will save
you time and money, leaving you with more of both to do what you love to do.
Mistake number 1:
Not Realizing How Big the Opportunity Is
Missing out on an opportunity is deadly. It won't kill you, but it will kill your
pocketbook. It will destroy your earning potential. Nobody wants something like that to
happen – just the opposite. People want to make money. They want to earn more. But how?
It begins with making the most of opportunities that come your way and recognizing
how big each opportunity is. There is a difference. It's importance to not only make the most
of every oppotunity but also recognize the potential within an opportunity. So how does this
relate to short sales?
There are two things everyone knows. (At least, they should know.) You never leave
money on the table, and you never make excuses for missing out on oppotunities.
Allowing those short sale listings to simply sit on your desk at work collecting dust IS
leaving money on the table. Stop that right now! Pick up the listing of short sales and blow
off the dust. Do something with them rather than doing nothing. Look at them as great
opportunities and not as a waste of time with little to no return. Short sales are big
opportunities. They do not have to be a waste of time. They can be a good use of time with a
nice financial return. Taking no action with your list of short sales equals leaving money on
the table. Taking action with your list of short sales equals putting cash in your pocket.
Missing out on opportunities doesn't just relate to short sales. People miss out on
life-changing opportunities every day. Here's a case study:
You've been job hunting and you're faced with two choices. One is a job that you're
familiar with, that's comfortable, that you can do okay at and make some money. The other
job is unfamiliar territory, an uncomfortable situation, that you could do okay at but could
also fail miserably at, and has the potential to make you a lot more money – but not until you
succeed. Which job do you choose?
Most people would choose the familiar, comfortable, safe job that is profitable now.
And there is nothing wrong with that decision. But not choosing job number two is a missed
opportunity to do something new and different and challenging with the potential to unlock
wealth and success later on. People choose job one because they are afraid to fail. They
make all sorts of excuses why they shouldn't take the job. Choosing job two is risky and
could lead to personal failure. So what if you fail? At least you'll know you tried. There are a
lot of job number ones. You can always go out and find one of those.
Choose job number two.
Missing out on an opportunity a short sale can provide you is similar to our case
study. Stop making excuses why you shouldn't touch a short sale. Stop choosing those
familiar, comfortable, and safe sales and choose short sales. The time for action is now.
When a short sale presents itself, grab it with both hands and don't let go until you squeeze
as much cash out of it as possible. If you don't know how to squeeze gobs of cash out of
short sales or even where to begin, then continue reading the rest of the report. You'll
discover more as you read on.
Mistake number 2:
Thinking It's Easier to Negotiate the Deal Themselves
My friend is a pilot for a large commercial airline. He loves to fly and travels all over,
stopping in cities across the world. (Occasionally I envy him.) Recently we discussed the role
and importance of a co-pilot. A trained co-pilot is important even with the advanced aircraft
technology of today.
My friend told me how a co-pilot is not in command but is there to relieve or assist
the pilot in flying the plane. The co-pilot can step in if something should happen. They help
safely negotiate the takeoff, in flight turbulence, and landing of the plane. Pilots and co-
pilots are negotiators.
Negotiating short sales is no different. Negotiators need a co-pilot to relieve and
assist in the negotiating process. A good negotiator knows when and how to use
information to close the deal. He/she also knows the bottom line and when to walk away.
Negotiation requires a lot of intentionality, planning and maneuvering through turbulent
conversations. It's good to have a partner alongside you to help negotiate your list of short
sale deals. Find a good co-pilot to assist and relieve you.
Do not fly alone! You never know what could happen, so it's important to have
someone along for the flight to back you up. Take someone along with you that knows
when to say yes to a deal and when to say no.
Mistake number 3:
A Lack of Legal Experience Dealing with Things Like
Some things in life are better left to professionals. This is especially true when it
comes to knowing and interpreting the law. Have you ever tried to read a will, or lease
agreement, or any type of legal document? Talk about boring! I sometimes wonder if
atterneys and judges write laws in such a way as to intentionally bore peope into signing.
It's like they've discovered a way to hypnotize you with legal jargon, or something I
like to call legal quicksand. Do not get stuck in legal quicksand. If you don't know the
legalities attached to short sales, then don't try to navigate short sales on your own.
You have three options.
1. Go Han Solo and attempt to close short sale deals alone.
2. Employ a bright attorney who knows your local laws.
3. Surround yourself with a team of short sale experts.
You choose. It's your choice. You can decide to have a qualified, talented attorney
helping you. Or you can connect with a team of short sale professionals who know what
they're doing. Surrounding yourself with people who are smarter than you is not a sign of
weakness. It's the sign of a great leader. Great leaders surround themselves with people
smarter than they are because it raises their level of leadership. This is not my idea. John
Maxwell teaches it at his seminers and in his books.
If you surround yourself with people who are dumber than you are, your success will
only reach as high as your own intelligence. If you surround yourself with people who are
smarter than you are, your success will rise to a whole new level. It will rise to their level. So
find a bright attorney or a smart, professional team of people who know short sales.
Whichever you choose, it's important that you be extremely careful and do your homework
so that you're not caught in a financial and legal mess.
Deficiency judgments are a prime example. States differ on deficiency judgments, so
you HAVE to know your local laws to make these rulings work to your financial advantage.
Find help. That's our best advice. Partner with a team of professionals who really know what
they're doing. There are people out there who know this stuff. You may just have to use the
power of Google to find them. Or you can contact us. We're here to help you.
Mistake Number 4:
Negotiating Too Low and Losing Out on Valuable Commission
This mistake is tied directly to Mistake number 2. You need to find someone to help
you negotiate. There are a lot of real estate agents who lose out on commission dollars
because they enter a negotiation with low expectations. Most agents misunderstand the
value of a piece of property in foreclosure.
Nobody likes to lose money. Someone who is familiar with short sales is familiar with
a home's value. They also have greater experience in pulling as much cash as possible out of
the sale. Find that someone. Do not be left alone trying to pull cash out of short sales when
you have no experience evaluating them.
Please take these four tips to heart. Learn from others' mistakes. These four mistakes
are more than just a list of simple, common sense advice on short sales. Avoiding them by
handling short sales with a bit of wisdom and intentionality can have a huge impact on your
Short sales, handled correctly, can be like drilling for oil. You have to dig and drill in
different plots of earth until you hit a pocket of oil. Keep drilling away at short sales while
avoiding these mistakes and you'll strike it rich. Eventually you'll hit a patch of black gold.
And when you do, people will be watching you with envy, wondering how you did it.
Then you can be the one to share with them the Top 4 Mistakes Real Estate Agents
Make When Entering the Short Sales Market.
MLS Direct Network of Central Florida