Everyone knows that I love short sales. I love the fact that the traditional seller stalls and objections (purchase price and commission) are not a factor when taking the listing. I also love the fact that there seems to be a never ending supply of listings.
If you’re familiar with my Pelican Brief theory or have read my posts posts about the limited success of the Making Home Affordable Program, then you know that many of our loan modifications end up as short sales or foreclosures down the road.
So, the question is this… should you cherry pick your short sale listings? To that end, should you be selective in all of your business? It’s up to you, but here are three thoughts to consider:
- When talking short sales, do you want to spend months negotiating the short sale approvals only to learn that the seller has a tax lien that won’t be removed? If working short sales is your thing, you’ll want to be selective and not choose one like this.
- If you 40 hours to devote to a listing or home sale, would you prefer to devote that time to a $60,000 mobile home or a $600,000 single-family residence? If your answer to that question is the single family home, then you’ll want to be selective in the business you choose.
- If you had a choice between working with a seller who was friendly and cooperative with showings of a $300,000 home, and working with a seller who thought his home was worth $500,000 even though the stats say $450,000, which would you select? If you picked the first one, then you are a cherry picker.
It’s your time to spend and it’s your business. But if you want to see lots of business in your future, you may want to be disciplined and regimented in what you select. Don’t waste time working on deals that will never close. Instead, be a cherry picker!