Although both are involved in the same market, the estate agent and short sale realtor are two very different beasts.
The thing about real estate agents is that they work on commission basis. They try to sell the home at quite a high price so that they get more commissions. The actual price that the home is eventually sold at is something that is agreed between the buyer and the seller and considering it is in the best interests of the seller to sell for as much as possible, this coincides with the desires of the estate agent. As a result of this, both the agent and the seller are probably to hold out for the higher price possible to increase their profits.
Short sales are somewhat different however as the property needs to be sold as a matter of urgency because the seller either can't meet the payments, or they no longer want to pay a loan that's worth greater than their property. Anytime a house is sold for less than the loan value, the lender has to agree to this because they are the ones taking the hit. The final decision on the price that the home is sold for is now determined by the lender and not the seller. In fact, the seller has no decision in the matter and normally has no choice but sell to avoid foreclosure.
One thing that would turn a lot of conventional real estate agents away from the short sale is that it may take an incredible deal of negotiating to come to a deal with the lender. They must be able to strike a compromise between selling as high as they could, whilst encouraging the quick sale, to avoid the property from going into foreclosure and losing the deal altogether.
One of the chief problems that a conventional real estate agent would have with a short sale is the commission received. With standard sales, the commission is agreed beforehand at a fixed percentage irrespective of the cost. Because however the lender is already agreeing to take a hit, they will be ready to pay significantly less in commission as they try to limit their losses further. The commissions in the instance of a short sale are paid by the lender and has to be agreed upon when the short sale realtor submits his proposal.
Many estate agents may shy away from the short sale as they pay lower commissions and it takes few considerable skill to reach a negotiation with the lender. It might even at times be a difficult sell for the agent as houses which are being short sold are probably to be in need of repair and maintenance due to the previous tenants not having the finances to maintain the property.
Additionally, a short sale realtor must be licensed to do so which requires extra training and education, several may just not be legally qualified to do so. You will find still a number of estate agents however who are qualified and experienced in the short sale and those who can short sell are able to take benefit of a market niche.
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