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we want smooth sailing when it comes to our transactions when it comes to our escrows we want it to be smooth sailing in fact listen to this when it comes to taking a sale to taking a listing there are a few types I want you to know about that aren't going to be smooth sailing all the time every now and then we'll have a gust of wind that'll throw us off course that's okay now when we're thrown off course I want you to be ready although it's going to be challenging times a gust of wind a big wave so whatever it is that thwarts our journey I want you to be ready for it what kind of challenges can you expect well I want to discuss today three types of sales that you might be faced with in your career and some of them are so smooth some of them aren't going to be smooth sailing man there's going to be challenges there's going to be waves there's going to be rain while you're in that sailboat don't worry about it as long as you're ready as long as you're prepared as long as you understand what you're doing you'll eventually get to that end of the road it will be smooth sailing once you cross that escrow Finish Line let's start off with the first challenge the first challenging type of sale the first challenging type of listing how about a short sale ever heard of a short sale I'm sure you have a short sale so it is a short sale now I want you to pay special attention to this because there was a time back in the recession period 2008 2009 2010 well there was a whole bunch of short sales and I want you to be ready just in case history repeats itself with real estate a short sale let me give you a quick example a seller invites you over to their house to list their property you're ready right you get dressed you wear your best suit or you wear your best outfit hair looking good you're feeling good your attitude's right there you show up to the door and they say come on and have a seat they offer you a cup of coffee Rico's rule number one accept a cup of coffee accept a cup of tea except a glass of water whatever it is accept it join them join them be with them they're giving you the permission to stay there for at least half an hour while you're drinking that beverage got it and they say Mr or Mrs agent this is my situation I owe one million dollars on this house I owe the bank one million dollars I have a mortgage of one million dollars but it's only worth 700 000 it's only worth seven hundred thousand dollars not enough to cover that mortgage if I was to sell this property I can't pay back the bank I cannot pay back the bank the million dollars I owe them I'm short three hundred thousand dollars hence the term short sale I'm short and I don't have three hundred thousand dollars sitting around I don't have 300 000 under my mattress that I can make up the difference if I owe a million bucks and I sell this property and I'm only able to get what it's true value was which is seven hundred thousand I'm short what am I going to do well I called you real estate agent I called you to help me out what do you think I should do this is the classic example the classic example of a short sale and it's rather simple the seller contacts the bank B of A and says hey B of A I can't make payments anymore I I lost my job I got to sell this property and if I sell this property B of A I'm have enough to pay it back the is going to tell the seller well go ahead and sell it what it's worth if it's worth 700 000 it is what it is sell it well the seller says well hold on a minute I'm not stupid am I you'll come after me after those 300 000 I owe you will say don't sweat it this is a short sale you sell it get rid of it we'll forgive the difference what son of a guy you're gonna forgive the difference yeah we'll forgive the difference now mind you this requires approval of the bank the bank's first instructions gonna be hey sell it we'll find yourself a real estate agent sell it for what it's worth that's where you as an agent come in now mind you taking a short sale as a listing is not so simple it's not going to be smooth sailing don't worry about it there's a process now the process isn't short it's actually long I'm surprised they don't call it a long sale it is long it's long because it needs approval of the bank B of A wants to see proof that the seller really can't make the payments that the seller doesn't want to jump ship just because it's become an inconvenient loan so there's a lot of analyzing that the bank in this case has to do to approve this loan and that approval process ladies and gents takes a long time can take months I've seen it take years so when somebody contacts you and says Mr Mrs agent would you mind selling my house it'll probably be a short sale you have some thinking to do you have some thinking to do do you really want to accept this listing it can take a lot out of you you're in the boat you're sailing you're out the ocean out in the open Waters but you can expect some waves you can expect gust of winds you might you might see a shark in the in the ocean every now and then are you willing to take that chance and might not get to your destination but if you fight tooth and nail you probably will got it that's one type of sale the short sale in a nutshell next type of sale how about a foreclosure sale huh I've heard of those property that's listed as a foreclosure sure there are several out there there was a time in history not long ago either that we had a whole bunch of foreclosures out there for sale all over the nation it was flooded can you get a foreclosure listing can you sell as a real estate agent of foreclosure absolutely but typically typically the bank will select the realtor so you would have to go knocking on the doors of Banks and says hey can I help you sell your foreclosures now that's uh that's a long shot it's a possible sure you gotta have the tenacity to go after those Banks all the banks all the mortgage companies and say hey I understand you have a whole bunch of foreclosures because the nation is going through some kind of economic crisis would you mind if I represented you and selling all your foreclosures you're not dealing with an individual you're not dealing with an actual person a mortgage holder you're dealing with the bank it's you and the bank you're representing the bank when it comes to a foreclosure sale so if a bank contacts you and says ring ring hello are you an agent and you say yeah I am and they say well this is and we have a thousand listings that we'd like to provide to you what's going to be your answer you're going to say thank you for contacting me I'd be more than happy to take care of that for you beautiful that's a foreclosure sale and all you do is you get the product which is the house you take the product representative the bank and you put it up for sale and sure there's some particulars involved you'll negotiate with the bank who you'll be representing and they'll probably bring down your commission because they're going to give you a whole bunch of foreclosures not a big deal it's a lot of business for you so if you get something like that if you get the opportunity to represent a bank on foreclosures go for it you just hit the jackpot I'm proud of you now let's talk about one more type of sale this is what I call the traditional sale the conventional seal your regular sale I don't care what you call it it's a sale where it's you the seller and the seller has Equity it's a great it's a great situation this is the small smooth sailing sail the smooth sailing sail this is the one where we open escrow execute and close open execute and close open execute and close you get in a boat you start sailing the ocean there's no waves typically there's no rain typically there's no gust of winds typically and you just write it you sit back and enjoy the sale got it simple example seller calls you says I'm thinking about listing my house can I please meet with you what's going to be your answer Rocky style absolutely absolutely you're going to show up you're going to look good you're going to feel good you're going to be polished you're going to give them your presentation you're going to say how much do you owe Mr seller he's going to see a million bucks you're gonna say well I did my research your house is worth two million dollars you've done good you're in a great situation Mr seller fantastic after all your fees Mr cell you'll probably walk away with eight hundred thousand dollars pay off your one million dollar mortgage we sell it for two million dollars you walk away after all your fees with about eight hundred thousand dollars eight hundred fifty thousand dollars whatever the math is that's a nice traditional sale in this case the seller wins got it that's a nice conventional sale a nice traditional sale and that's what's happening in today's economy doesn't matter if you're a California Florida New York Oregon typically right now most sellers most homeowners are in that situation where most sales in the nation are your traditional conventional sales you have an agent who's hired by a seller who has Equity who's willing to sell their property to a buyer traditional sale smooth sailing so that's it ladies and gentlemen now this is the deal your career is based on sales whether you represent the buyer or the seller and any one of these cases you can also represent a buyer when it comes to a short sale you can also represent a buyer when it comes to a foreclosure sale you could definitely represent a buyer when it comes to your traditional conventional sale so either side of the fence you're playing on whether you're the buyer to sellers agent remember there's different types of sales out there and all of them will guarantee you a commission once you're done once it's over and out once it's finito smooth sailing we all want it every now and then it's not so smooth so what you can do this so at the end of the day just get to your destination now as a reminder all of these types of sales require a contract right a type of listing agreement take a look at this video right here you're going to get tons out of it it'll explain to you the type of listing agreements that are required for any sale we'll see you next week