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Short Sale and REO Myths

Posted by Jesus (Jesse) Gonzalez on June 27, 2008 at 2:58am
Common Short Sale and REO Myths. I am shocked and this misinformation out there that is being passed as reliable. To combat some of these silly and often gullible myths, let me outline some for you today. 1. You can ridiculously low ball banks because they have built in projected losses on their REO’s and Short Sales. In other words, they all have a “sweet spot” selling price and if you know what it is, your offer will be accepted. a. The first problem I have with this myth is to believe this silly idea is like saying that when they made the loan in the first place, they were betting on default. Let me assure you, that isn’t the case hence, the fall of the sub-prime market and resulting credit crunch. I don’t know any banker or for that matter any consumer, who took a risky loan with the idea they were intentionally going to default. b. My second problem with this myth is that to believe it, you are assuming banks don’t have a clue as to market value. My goodness people, these are banks we are talking about. My point is, they are this nations monetary backbone, I would think they would know something about market value and fair pricing, wouldn’t you? Banks hire agents to go out and provide opinions on a properties value before they ever put it on the market. Typically they get more than one opinion from several different agents and therefore, they sometimes have more knowledge than the buyer’s putting in the offer! c. The third problem I have with this myth is that is creates weird expectations and speculations on behalf of any prospective buyer. People who believe this can’t understand why their offer was refused. In fact, it puts a lot of Realtors in weird situations where they are writing up silly offers on homes that they know the bank isn’t going to consider. Then when the all to obvious counter comes bank, the buyer wants to be offended or looses faith in their Realtors abilities. In short, this myth is bad for all involved. It creates hostilities, resentment and hardship. We as Realtors who work with REO’s and Short Sales must do a good job in educating our buyers or even other agents that yes, we will present the offer, it’s our duty however, DID YOU DO COMPS BEFORE SUBMITTING THE OFFER? If not, you might want to! We have a lot more myths out there about Short Sales and REO’s I would love for you to share your ideas and thoughts…..thanks.
Tags: myths, reo, sale, short
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Posted by Jesus (Jesse) Gonzalez

Jesse Gonzalez is a highly accomplished and respected real estate professional with a wealth of experience in the industry. With a career over 15 years, Jesse has established himself as a leading real estate sales and marketing expert.

As a licensed real estate agent since 2005 and a broker since 2008, Jesse has a comprehensive understanding of the complexities of the market. In 2013, he founded his firm, Liberty House Realty, LLC demonstrating his entrepreneurial spirit and commitment to delivering exceptional service to his clients.

Jesse's expertise extends beyond traditional real estate transactions. He obtained his Registered Appraisal Trainee in 2019, providing him with valuable insights into property valuation and market analysis. Although he decided to focus primarily on sales, his appraisal background gives him a unique advantage in understanding the intricacies of property values and trends.

With a dedication to excellence, Jesse consistently achieves outstanding results for his clients. Last year alone, he closed over $20 million in sales and received the prestigious Sapphire Award from his local association, recognizing his exceptional achievements in the industry.

Beyond his successful career in real estate, Jesse is passionate about education and personal growth. He is completing his undergraduate degree in Forensic Psychology, with plans to attend Law School in the fall of 2024. Jesse's ambition is to become a real estate litigator, focusing on real estate consumer protection law and advocating for the rights and interests of homebuyers and sellers.

As the owner/operator of the nation's largest social network for REO professionals, <a href="http://www.REOProNetwork.com">www.REOProNetwork.com</a>, Jesse has positioned himself as a thought leader and industry influencer. Through this platform, he fosters collaboration and knowledge-sharing among REO agents, attorneys, asset management firms, and other professionals in the field.

With a commitment to professionalism, integrity, and providing a personalized experience for his clients, Jesse Gonzalez is a trusted advisor and a driving force in the real estate industry. Whether assisting clients with buying or selling properties, he consistently goes above and beyond to exceed expectations and ensure successful outcomes.

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