What do Realtors actually do in a short sale, and how do I find the best one?
Short sales can be very complex, and your best bet for a smooth transaction is to get just the right help! A failed short sale can lead to a foreclosure and deficiency judgment, so it's critical to do your homework and make sure you have the right real estate agent in charge of your short sale.
Very few Florida Realtors actually understand the short sale process or have a lot of experience with them, so you'll want to do your homework. You can read reviews of Realtors on sites like Zillow and gain an understanding of their history and clients experiences, but you'll still to ask some key questions when interviewing real estate agents. But first, what exactly is the Realtors role in a short sale?
The real estate agents role in your short sale:
Seller consultation and preparation:
Before your home ever goes on market, a detailed consultation needs to happen between the agent and the seller in order to:
- Determine whether the seller is likely to be approved based on their hardship, liens and financial situation.
- Prepare the seller and their expectations for the short sale process.
- Help plan for timelines and relocation.
It takes a highly experienced short sale real estate agent to be able to account for every possible scenario that could come up in your short sale with your specific circumstances. Minna Reid and her team have spent decades consistently working short sales and have successfully closed hundreds. It takes this kind of experience to be able to anticipate and overcome every possible challenge to your short sale and set you up for the best odds of success.
Property marketing and contract negotiations:
- Full scale property marketing for exposure to the most buyers.
- Showing management.
- Expert sales contract negotiations for best price and terms.
- Screening of buyers and buyers agents to ensure strongest buyer and best possible odds of approval.
Short sale documentation preparation and follow up:
Short sales involve a ton of financial documentation and document follow up. Lenders can be unresponsive and slow and require a lot of constant follow up so that your file doesn't fall through the cracks. Your Jacksonville Short Sale Realtor will:
- Advise and assist with getting your documents together and review them to be sure they will lead to a short sale qualification.
- Submit all your documents and regularly follow up on their progress.
Manage the short selling lenders property valuation:
As part of the short sale approval process, your lender will require a valuation of the property so that they establish current market value of the home. Your Realtor will:
- Coordinate this valuation with your lender, which is usually an appraisal or BPO (Brokers Price Opinion).
- Challenge and dispute the value and have it corrected if it is inaccurate and causes a short sale decline.
Negotiate the short sale on your behalf and get the short sale approval:
- Negotiate the most favorable terms of mortgage debt settlement.
- Obtain lien releases to clear title to transfer to the buyer.
- Work with HUD for a Partial Claim Release.
- Assist with Federal Tax Lien Releases if necessary.
- Arrange for relocation assistance payments whenever possible for qualifying clients.
- Overcome any possible short sale decline, and get the sale back on track to approval.
As you can see, your Realtor is responsible for the most critical tasks in the short sale process. It's very important to screen your real estate agent to make sure they are capable of handling these tasks, as they can be the difference between a successful short sale, and a foreclose.
Questions to ask the Realtor you are considering for your short sale:
How long have you been doing short sales?
Short sales are specialty transactions requiring loads of extra knowledge, documents and steps, as you are asking your lender to take a loss on the mortgage and forgive the difference so you can sell. All lenders have different guidelines for their short sales. Short sales are very different from traditional real estate sales. Financial consequences for short sellers can be significant so you want someone on the job that knows what they are doing. Your best bet is someone who has many years of experience handling these transactions.
How many sellers have you represented in a short sale?
Representing buyers in a short sale is a totally different ballgame than representing a seller in one. The listing agent does all the short sale processing on behalf of the seller. Ideally you are looking for someone who has closed multiple short sales on the seller side to a successful close, and not just a few short sales here and there along the way. Tens, if not hundreds of closed short sales is preferable.
How many sellers side short sales have you closed successfully?
Listing short sales does not mean closing them. You are looking for someone with a good track record of actually closing their short sales. Less than half of listed short sales actually close, the number one reason being mismanagement. A solid short sale Realtor will close over 90% of all the short sales they take on.
Who does your short sale negotiations?
Is the real estate agent negotiating the short sale? Is negotiation being outsourced to a third party? How is that person getting paid? Is the Realtor expecting YOU to negotiate your own short sale? YIKES! Best to find out now. Agents who are intimidated by and inexperienced with shorts sales will always seek to bring someone else in to handle the short sale, and this may not be to your benefit.
What kind of a timeline can I expect?
Although no short sale timelines are set in stone, an experienced agent with a track record of success will be able to give you a general time frame as to how your short sale will go.
How much will this cost me?
In 99% of cases, sellers can expect to pay nothing out of pocket throughout the short sale process as most fees are covered in the sale. In fact you may even receive relocation assistance at close. However some folks - especially those with good credit and assets, may be targeted for contributions.
These requests can be avoided or negotiated, but it will take someone very experienced to anticipate this and take steps to avoid it proactively.
What will happen to my second mortgage, HUD Partial Claim, or judgment lien?
A second mortgage, partial claim or other junior liens add some variables to the mix. All claims against title will have to be resolved in the short sale. Your agent should be asking questions about these and have a plan in advance to deal with them.
Need expert help with your Florida short sale?
We've been specializing on short sales since 2008! We've helped hundreds of homeowners move on from their over-mortgaged homes, and we can help you!
Minna was the best thing that happened to us in a very long time. We’ve been planning on moving on from the house and on with our lives and the house was simply an anchor. We’ve had two liens on the house that would take a long time to cure and we were forced to sell the house to settle with the bank. I’ve looked around for someone who specializes in short sales, not just an agent that did 2-3. The process took a while, but Minna was super persistent, and her strategic approach was close to none. We have lost two buyers, got a push backs from the back and lien holders and she was able to stay on top of it and at the same time, she kept us afloat emotionally. Because of her, we were able to leave CT and move to FL where we are currently waiting for our new place. Warm thank you to Minna and her team for doing what they do best.
M.R.
Last Updated on July 19, 2025 by Minna Reid