How to Become a Short Sales Agent
A short sale is when the lenders on a property are willing to accept less than the full amount of the mortgage. The lender loses money, but less than the cost of foreclosing on the home. As real estate prices have fallen in much of the U.S. over the last few years, the need for real estate agents who are experienced in negotiating short sales has never been greater. This is how to become a short-sale agent.
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Instructions
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Become a licensed real estate agent in the state where you wish to negotiate short sales. Every state has licensing requirements to become a real estate agent. The Division of Real Estate in your state requires you to take certain classes and pass a state or national real estate exam.
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Join a brokerage. A licensed real estate agent must work under the supervision of a state-licensed brokerage. State requirements differ. Your broker has legal responsibility for agents in your office. They make sure agents comply with state and local law. You may be the only agent at the brokerage who specializes in short sales. Some offices have a division or team that handles all the short-sale negotiations. Other offices leave it up to individual agents to negotiate a client's short sale with the bank.
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Learn the short-sale process. Every bank has different requirements for agents and sellers to complete a short sale. The basic process is the same. You need to handle all the seller's documents and obtain any information required. As a short-sale agent, you keep in contact with the bank representative in charge of the file for the property. These bank employees work with hundreds of cases. An agent needs to be patient and respond quickly when documents are needed. The bank rarely calls you. You need to email, call and fax often.
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Join a short-sale Realtor team. Being part of a team gives you hands-on experience with parts of a short sale while you learn how they are done. Many short sales take six to eight months to complete. Being a member of a team gives you a part of many deals to keep income stable. Negotiating solo, you may work months on a single deal only to have the home go into foreclosure. Agents get paid only when a short sale is successful.
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Become a certified short-sale agent. There is no nationwide certification standard to be a short-sale agent. There are, however, professional organizations you can join. Certification means you have completed the requirements and comply with the professional standard of that organization. Having short-sale certification helps you enlist buyers and list homes. Some short-sale organizations provide referrals to members.
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Tips & Warnings
Negotiators for short sales only get paid when a deal is complete. Have other real estate deals in the works before specializing in short sales. Many sales take six to eight months of unpaid negotiation.
Don't do short-sale negotiation without being a licensed agent. The only exception to this is if you are the owner of the property being sold. Even then you don't make any money on a short sale, so use a professional with experience. They are paid by the bank only when successful. Investors negotiate short sales, but they are not paid for the sale. They make money reselling or renting the property.
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- Photo Credit real estate image by Andrei Merkulov from Fotolia.com
