Questions Agents Should be Asking Sellers
I know that some of you out there probably have some questions that we should add to this list. I would love to hear from you.
Liz Loadholt
Stan Huff, my assistant manager in the Mt. Pleasant office, just brought to my attention that our agents really really need to be getting better information from their sellers. He has a very good point --- there are quite a few bad situations out there that may could have been avoided if only the agent had asked more questions at the listing.
Here are some of the questions suggested by Stan (and me) that agents should be asking sellers.
Here are some of the questions suggested by Stan (and me) that agents should be asking sellers.
- How much do you owe on this property?
- Do you have a 2nd or 3rd mortgage on this property?
- Who is the lender/lenders?
- Are you current on your mortgage payments?
- If not, how behind are you?
If they owe more than the property is worth, Agents should then ask the Sellers:
We suggest that agents put the below disclaimer if they have these questions written out for the sellers.
As real estate professionals, we are here to help you get this property sold. We cannot give you legal advice or tell you what your credit or tax consequences are. Please seek advice from your Attorney, CPA, Financial Advisor or Tax Advisor.
- Have you talked to your lender about a short sale?
- Is this home in foreclosure or pre-foreclosure?
- Do you understand that the lender may 1099 you or place a deficiency judgment against you?
- Have you talked to your tax advisor and attorney?
- Are there any pending law suits or judgments against you or this property?
- Do you have any personal tax liens?
- Have the property taxes been paid?
- Have you filed for bankruptcy and has it been discharged? Please give me a copy of the discharge order if it has been.
- If you are in bankruptcy, contact your attorney before we list the property. Have your attorney contact me, the listing agent.
- Once we receive an offer the lender will require a lot of information to complete the sale. Will you cooperate and diligently supply all needed information?
We suggest that agents put the below disclaimer if they have these questions written out for the sellers.
As real estate professionals, we are here to help you get this property sold. We cannot give you legal advice or tell you what your credit or tax consequences are. Please seek advice from your Attorney, CPA, Financial Advisor or Tax Advisor.
I know that some of you out there probably have some questions that we should add to this list. I would love to hear from you.
Liz Loadholt
Liz this a great and very informative blog and often times I think that agents just dont ask their sellers enough questions in fear of prying.
Excellent point, excellent list Liz, good job on the article.
Liz; Short sales are running rampant. I can't imagine that agents are going into listing appointments not asking these questions.
These are great questions to ask all sellers since all of these questions are critical for approval of a short sale..
Great post Liz..... Particularly in this market we need to ask all the right questions so that we're best prepared to help our sellers.
I don't know if you have or had such an incentive in the US, but in Canada for a while we had "cash backs" where, rather than take a lower rate, a Mortgagor could opt to receive thousand of dollars in cash up front and pay the standard rate instead.
Unfortuantely, that works kind of like a loan and if the Mortgagor decides to terminate the mortgage ahead of schedule, then a percentage (oftern thousands of dollars) is to be paid back to the Mortgagee. This usually DOES NOT show up on the Mortgage Statement, so unles you specifically ask for a Mortgage Verification to ne completed by the Lender, it may be your commission that is going to back it back if there are insuffuicient funds to close.
@ricksergison- Good information and very interesting. I learned another something new today.
@chrisann- Agreed that the market is becoming more common place for short sales, but I don't think everyone is prepared for them.
@liz- I really like #10....the pace with the sellers and the expectations should be laid out from the onset.
I did to have a list with me because sometimes I forget to ask. And if you don't ask they won't tell you.
Great post, all of these questions are very important to ask a seller. If they are not up front with you from the beginning, then we can't help them. Thanks for the post.
Tough, and unfortunate, questions to have to ask a seller. But great list! thanks for posting.
Thank you Liz! I am so blessed to have you & Stan looking out for us. Having the questions written down is excellent to hand to my seller at a listing appointment. Brava!
Great post Liz. A couple of years ago many of these questions didn't seem necessary, but in the market today, they sure are!
Enjoyed your post. Unfortunatly, these are current questions that need to be asked. How are things in the Mt. Pleasant area? Do you ever get to Edisto?
Cindy
Cindy,
Don't get to Edisto very often, but have been several times. It is beautiful there ---- how is the market there. In Mt. Pleasant, we are seeing a pick up in acitivty, so we are hopeful and excited.
Liz Loadholt