I’ve written about short sales a lot over the years, and I continue to because they are still a huge part of our market. Buyers and sellers know that the market is improving, but the reality is that short sales are still everywhere. Values have not increased and a lot of sellers are still under water on their home. Years of holding on may finally be coming to an end and it’s time to attempt a short sale before your home goes to foreclosure. Here are three important things to keep in mind.
The short sale is nothing to fear. Having a competent Realtor to guide you through the process will make your life a lot easier. We process a lot of short sales in our office and we have been so successful because we have a local attorney do the negotiating with the banks. It helps to have a third party working on your behalf and the bank is more apt to deal with them than the homeowner/borrower. Most banks are simply trying to figure out how they can squeeze more money out of the homeowner. That’s why deflecting to an attorney to handle the negotiating can help your cause. We work hand-in-hand with them and process the whole transaction to get you out from under the property.
I recently accepted a short sale file that has me concerned. It’s concerning because the homeowners are not providing the necessary documents needed by the bank to approve their sale. When homeowners drag their feet and don’t act quickly, it’s possible that the bank will literally throw the file to the back of the pile and it will sit there dormant for several months. Banks need all the completed paperwork in their file as quickly as possible and they don’t tolerate incomplete files.
When you list your home for sale, make sure you price it competitively. I often see sellers overprice their home as a short sale thinking that if they get a buyer to overpay for a property the bank will magically be more lenient. This is just not right for three reasons; one is that by overpricing the home you price yourself out of the market and will not get showings and will not get a buyer. In this market, buyers are educated and they know prices better then most Realtors. Reason two is because banks do an appraisal on the house and they sell it for what it’s worth based on the market. Reason three is because the homeowner in a short sale, in almost all cases, does not get any proceeds no matter what the home sells for. So, it’s not serving anyone by trying to net more.
Good Luck Selling!
Need help Selling, Buying, or with Property Management? Gulf Pointe Properties would be glad to help! Please contact Gabe for advice at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com Gabe Mellein is the broker of Gulf Pointe Properties, He has 8 years experience in the SW Florida Real Estate Market. He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate.
