With all the "short-selling" going on these days, it is sometimes a challenge to find homes that a buyer can expect to move into within a reasonable time period (in certain areas & neighborhoods). Our MLS has had a policy that all short sales must have that status disclosed within the listing.
I have seen it in the description that the public sees, hidden in the agent remarks and clever language that one must have a clear command of the English language used to disguise the fact that a listing is indeed a short sale.
Just a little while ago, I heard that our MLS board is considering removing the requirement that short sales must be identified in the listing...with the argument that it is unfair to the selling party, since so many people are avoiding those listings altogether.
My belief is this: short sale status should always be disclosed in a listing, and where the public can see it plainly & in easily understood language. In fact, there should be a checkbox to sort out or specifically include short sales in a search. Short sale status is of material concern to a prospective buyer, just as whether a property has a garage or a carport. Real estate is a disclosure-oriented transaction, and if misdirection or misleading tactics are used to generate traffic become an accepted practice, we are selling our ethics down the river in the name of expediency.
I was taught from Day 1: Disclose, disclose, disclose! To ignore the basic foundation upon which trust begins in our industry is to invite more trouble and lawsuits.
Our ethics and morals protect us from legislation & litigation REALTORS®.
Specializing in Buyer Representation in the Tucson, Arizona real estate market.
"Never forget - Real Estate Is About People"
Good points. I just finished taking the ethics class online with the NAR.org (of course the fact that it is due by tomorrow had nothing to do with how I spent my evening tonight!). I absolutely agree that we must disclose the fact that it is a short sale. That seems like a pretty significant point to a buyer! and to the cooperating broker too.
If a buyer doesn't know it's a short sale up front, he's certainly going to find out soon enough so why "bury" the fact? I'm with you, disclose it up front!
Lise - thanks for commenting first. I agree that it is also significant to the brokers on both sides, too!
Richard - can you imagine how much time, effort, phone calls & emails will be wasted withouth disclosure?
I agree with you. Because the short sale can be risky for the buyer, it is not fair to hide the ball! Some believe it is a privacy issue, but I don't agree. The buyer should know all the facts in making a decision to go forward with such things as test, appraisal fees etc.
A lot of home buyers in my area are looking into short sales first because they expect to get the best deal (even if it takes longer).
Joan - privacy, schmivacy...if you want to sell it, disclose it. Upfront. Thanks for coming by!
Darrell - there are good opportunities for those who have the freedom of waiting for them: all the more reason to make it them easier to identify.
Kent (nice name, by the way) - currently ours does too, but the grapevine says that the change is being considered.
Kent,
Sounds like the big listing brokers are trying to stack the deck. Are they also going to remove wording about third party approval being required?
Rich
It should be & is always disclosed on our local MLS. The wording usually reads "Subject to 3rd Party Approval"
Some clients have expressed a concern with having the short sale broadcasted to their neighborhood by means of the yard sign. I have seen it done by a local Realtor who advertises "Short Sale" right on the sign. In these cases I believe the disclosure is not necessary as it would be a blatant disregard for your client's wishes & is not required by local code. Just another thought on the subject.
It is a material fact. You must disclose.
I think the board should abide by the rules and laws established for this purpose.
Rich - I don't know, just heard about this through the grapevine. I'm going to ask some serious questions of people to find out whether this is for real or just a thought that got loose!
Peter - I can understand the concern about having it on the sign right in front of one's house, but in the database is another thing entirely.
Mike - thanks for dropping by
I've seen this more times than I care to ... I don't know what would cause an agent to not want to disclose short sales... it's not as if it won't be discovered.