Beware of Short Sale Specialists and Loan Modification Specialists in Boise and probably everywhere else.
As time goes on there have been more and more Realtors® advertising themselves as Boise Short Sale Specialist. I just got done researching on the MLS. Something that is easy for any Realtor to do. I have written about this several times in several places. I think this is a Realtor ethics problem.
Many of these "certifications" are a few hour courses. Some are sponsored by banks. First of all, in any profession to call oneself a "Specialist" implies that is all you do. In dentistry an Oral Surgeon is a specialist. They do NOT do general dentistry. A Cardiologist doesn't do general medicine. But many of these so called short sale specialists, at least the Boise Short Sale Specialists that I look at list and try to do anything and Everything. So they are NOT specialist. You can be an expert in Boise short sales and do general residential real estate but if you are saying that you are a Boise Short Sale Specialists you are implying that you are limited in your real estate practice to being a short sale Realtor IN BOISE. Not even in Nampa, Eagle, Kuna or other places.
I just spent some more time looking at the track record of two of the most aggressive Boise Short Sale Specialist Realtor® advertisers. One closed 15 short sales this year, 44 total, some of those co listed, has 94 canceled, withdrawn or expired. That is a 68% failure rate! He has 19 short sale listings or co listings.
Another, in the same Real Estate group has closed 4 short sales in 2011 28 total including 5 co listings and 57 expired or canceled for a whopping 67% failure rate.
But I guess maybe that is good! Because I have read several articles saying that the Florida failure success rate is only 14%. That was about a year old article though so I am sure it is getting better.
Who would go to a heart surgeon with a 50% failure rate? Now maybe this isn't as serious, but failing a short sale can be devastating. It usually results in foreclosure which is usually (not always) a worst outcome for a homeowner.
I have a 6.2% failure rate. That is a 93.8% success rate. Part was due to canceling after listing because the seller had multiple properties and decided to do bankruptcy after we listed so we canceled.
My experience with people who have tried to do loan modifications are that they have even worse horror stories. I have yet to meet anyone who has successfully completed a permanent loan modification. Often when they call they are days or a couple weeks from their auction date.
Article 11 of the Realtor® Code of ethics includes the following: "Realtors® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth. (Amended 1/10"
When I look at the advertising and web sites that some Realtors® post and publish, and then look at their experience I think it is clear that they are in violation of this Code of ethics. A short sale experience is bad enough for a person to go through without finding out the hard way that they have an incompetent agent.
People have to start someplace. The best training for short sales is to do them. But I think it is the responsibility of a Realtor to be honest in their representation. We pay good referal fees. You can save a lot of trouble and headache by referring your short sales to people like us who have done a lot and have a high success rate. You can also co-list with someone with experience until you are a master.
On the other had I want to warn people who are considering a short sale, or a loan modification. You have to do your homework. You have to ask the right questions. You don't want to get tied up in a contract or process that is going to fail. Ask any agent who holds themselves out to be an expert or a specialist to SHOW YOU. It is easy to find anyone's track record on the Multiple Listing System.
If you are thinking about doing a Boise Short Sale, or a short sale in Meridian, Eagle, Nampa, Kuna, or southwest Idaho or McCall Idaho please call me. I will do all I can to get you the information you need and to help you. If you are a Realtor® and are tired of beating your head against the wall with short sales refer them.
Jon Gosche Broker, GRI e-Pro
Jon Gosche Real Estate