Busting the Big Myths: What Agents Need to Know About Distressed Properties and Short Sales
Daniel Tromello
Ask most agents about distressed properties, and you’ll get the same look; some mix of hesitation, bad memories, or straight-up avoidance. And fair enough. There are a lot of stories out there about short sales that never close, auctions that go sideways, and sellers that vanish when things get complicated.
But a lot of that? It’s myth.
We're here to call that out.
We’re breaking down the most common misconceptions about distressed properties, short sales, and auctions, and showing what’s actually true when you’ve got the right strategy and the right support. Whether you’ve written these deals off entirely or just haven’t found your footing yet, you’ll walk away with a clearer picture of where the real opportunities are and how not to lose the client in the process.
Most myths in real estate don’t come out of nowhere. They’re rooted in real experiences - bad ones. And when agents get burned on a short sale, or watch an auction spiral, or lose a client mid-deal, that stuff sticks.
But that’s not the whole picture.
Here’s what we hear all the time and what we’ve actually seen in the field:
Myth #1: “These properties never close.”
That can feel true if you've watched one fall apart. But more often than not, it's not the property - it’s the setup. With a clean strategy, the right buyer, and someone managing expectations early, these deals can close quickly and cleanly.
Myth #2: “Auctions are risky and unpredictable.”
They can be if you don’t know what you’re walking into. But auctions have structure. They come with data. They’re not the wild west if you’re working with someone who knows how to navigate the process.
Myth #3: “Short sales always fail.”
A lot of them do. Usually because the paperwork is a mess, the buyer isn’t serious, or the agent is flying solo. But when handled properly, short sales can be a strong path to resolution. We've seen it and we’ve helped make it happen.
Myth #4: “You’ll lose your client messing with this stuff.”
Only if you’re guessing. Clients lose confidence when things drag out or go sideways. When you bring in someone who can steady the deal and offer real solutions, you actually gain credibility and loyalty.
Myth #5: “Banks won’t budge, and sellers won’t cooperate.”
Sometimes, yes. But more often, what looks like a wall is just confusion or fatigue. Sellers aren’t always being difficult - they’re overwhelmed. And banks don’t want the property. They want a solution that makes sense.
Here’s the point:
Distressed doesn’t have to mean disaster. When these deals are managed with the right strategy, they don’t just close, they build stronger relationships and better outcomes for everyone involved.
Most people in distress aren’t difficult. They’re just overwhelmed.
The house is falling apart. The bills are piling up. Maybe there’s family involved. Maybe they’ve already had two buyers fall through and don’t know who to trust anymore.
That’s who agents are walking into meetings with. And honestly, it’s not just about the numbers at that point.
You’ve got to manage the deal, but you’ve also got to manage the person. That takes more than a CMA and a listing agreement. It takes time, patience, and sometimes backup.
That’s where we come in.
We don’t push you out of the way. We stay behind the scenes, help you reset the conversation if it’s going sideways, and make sure the client still sees you as the one steering the ship.
You don’t lose control.
You don’t lose the listing.
And the client doesn’t walk.
Why REsolve Works
We’ve heard all the same stories. The short sale that dragged on for six months. The auction deal that got retraded at the last minute. The buyer who vanished. The seller who shut down.
It’s no wonder agents hesitate.
But that’s the thing, these deals aren’t impossible. They’re just easy to screw up when no one’s really in control.
We’ve been working in this space long enough to know what works and what doesn’t. We don’t need to overcomplicate it. We’re here to help you steady the deal, protect the relationship, and actually get it closed.
You’ve still got to do your part. But you don’t have to do it alone.
Distressed deals aren’t some niche. They’re just part of the market - one that most people avoid because they’ve heard too many bad stories.
But the deals are there. The clients are real. And when you know how to navigate them, they’re not nearly as complicated as people make them out to be.
You don’t need to chase every one. You just need to stop writing them off.
We’ve been doing this a long time. It works. You just have to know what you’re walking into and who’s walking in with you.
