You would think that all the stuff published by financial advice websites would have some consumers more educated about the role of real estate agents, especially in the case of a short sale. They don't. I have to educate many who reach out to me and set them straight on certain ideas in their head that they get from who knows where- most likely these asinine "what your agent hopes you never know" online columns that sow discord rather than educate.
A few brief examples:
- The Open Listing. The guy is essentially a FSBO but wants me to do the short sale once he gets a buyer. Do it Yourself is fine if you are building a picnic table, but not saving your financial rear. When it is explained that he saves nothing the way he theoretically would if he had, say, equity, I still get blank stares.
- The Un-Bundler. The Un-Bundler wants me to do their short sale, but wants to keep cousin Ethel as the listing agent. I have to explain to this person that the only compensation paid by lenders in a short sale is a brokerage fee, and I cannot take an upfront fee from him. He has a choice: List with me or have cousin Ethel dock her license with me. But I'm not doing all the dirty work for another agent.
- The Competitor. The competitor wants half my commission if they find the buyer. I have to explain to them that I don't compete with clients, but more importantly, paying them a rebate in a short sale is bank fraud. They probably got this advice off some website somewhere that isn't talking about short sales specifically but addresses negotiating commissions.