Fox Valley Realtors and short sales. This can be a tricky dilemma. A lot of banks today will not deal directly with a buyer/investor, they will only work through a Realtor. Short sales can run long, meaning that after you submit an offer, the bank can take up to 3-6 months to respond to it. REO’s usually like to work with a licensed Realtor, in fact, most are required to list each REO with a local Realtor. This can backfire however, when appraisals do not come in high enough. Banks will sometimes seek to lower their losses by forcing the Realtors to give up part of their commissions to close a deal. Unexpected at best, undesired at the least, this leaves Realtors in the lurch with their hands tied. To go back to a buyer and tell them to bring more money to the table when the buyer is adamant against it is difficult. To lose a hard fought deal is difficult as well. I, personally, do not like lose-lose scenarios. I prefer that everyone walks away from the closing table happy and satisfied that they got what they wanted/expected/agreed to.
So the next time your Realtor turns ghost white at the prospect of bidding on a REO or short sale, you’ll know they have had experience in this before!