Don't Sell the SHORT SALE Short

How to handle pre-foreclosure and short sale properties is still a mystery to many real estate agents. We certainly didn’t learn about short sales in real estate school, and when the foreclosure crisis reared its ugly head, many of us buried our own heads in the sand.

Short sales are not going away. Negative equity has overtaken the American real estate landscape. It certainly has in Orlando, Florida. What started as an isolated problem pinned on subprime mortgages has escalated into a full-scale war. And now, with the economy in turmoil and unemployment affecting more and more homeowners, the war has turned into a battle royale.

Sellers need you. And so do buyers. As a Realtor®, you may as well face the problem, roll up your sleeves, and go out there to lend a helping hand.

For those who can afford the time and money, check out these Short Sale designations that can be earned through formal in-class or online study.

• Certified Distressed Property Expert (CDPE) 
• Certified Short-Sale Professional (CSP) 

For those who can’t afford the money but can afford the time, there’s always self-education. Right here on ActiveRain, many veterans of the Short Sale Wars are happy to impart their wisdom, methods, and madness. They’ve already been through the trial-by-fire route, and the experiences they relate are extremely informative. By using their advice wisely and well, you’ll be a step ahead of your peers!

In the end, only experience gained firsthand—by listing and selling short sales—can turn inexperienced agents into full-fledged experts.

When agents represent homebuyers, they should understand the pros and cons of purchasing Short Sales and advise accordingly.

When agents represent homeowners, they should treat the Short Sale property as they would any other house for sale. They shouldn’t skimp, shortchange, or sell short either the seller or the hoped-for buyer.

1. Marketing - Market a short sale the same way you would a regular listing. That means multiple photos, a virtual tour, direct mail, and everything else. Buyers still need a reason to see your listing as opposed to the one down the street. If this means literally showing dirty laundry, do it. The price will justify the condition of the house.
2. List Price - Run a comparative market analysis and list the house at current market value. It doesn’t matter if the house is a Short Sale. It’s still a property with value. If it’s in a bad way, reflect that in the list price. If it shines as a move-in ready house, reflect that as well. Whatever you do, don’t throw a dart or deliberately try to undercut every other house in the neighborhood, not unless the condition of the house warrants it. A low price may generate interest, showings, and offers, but it doesn’t necessarily get the mortgage lender to approve the Short Sale package.
3. MLS Listing Information - Don’t skimp on inputting full information. Include ALL details and description that you would normally include for a regular listing. Sellers deserve no less for the house they call their home. Likewise, buyers deserve no less for the house they want to make their home.
4. Apply an Aggressive Short Sale Strategy to the List Price - Once the house has been listed at a price reflecting current market value, don’t let the price hang out there in limbo forever. Homeowners facing foreclosure don’t have time to wait. If the house doesn’t immediately get showings, lower the price. If the house doesn’t get an offer, keep lowering the price. There’s no reason a Short Sale house can’t be sold in a reasonable amount of time, not unless the mortgage lender rejects the offer out of hand.

 

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Proudly selling real estate in Oviedo, Winter Springs, East Orlando, City of Orlando & Winter Park 

 

Neighborhoods in Oviedo - Aloma Woods, Bentley Woods, Little Creek, Kingsbridge, Riverside at Twin Rivers, Alafaya Woods, Live Oak Reserve and many other others

Neighborhoods in Winter Springs - Tuscawilla and many others

Neighborhoods in East Orlando - Avalon Park, Eastwood, Stoneybrook, Waterford, Cypress Springs, Lake Nona and many others

Neighborhoods in City of Orlando - Delaney Park, Thornton Park, College Park, Colonialtown, Audubon Park, Baldwin Park, Lake Nona and many others

Neighborhoods in Winter Park - Comstock Park, Lake Knowles Terrace, Sylvan Lake Shores, Charmont, Orwin Manor and many others

 

 

JUDY CHAPMAN

Florida Licensed Realtor® and Sales Associate

Certified Negotiation Specialist (CNS)

Coldwell Banker Residential Real Estate

521 E Mitchell Hammock Road

Oviedo, FL 32765

 

Specializing in Short Sale Solutions for Homeowners Facing Foreclosure

 

 

 

To put your home on the market, please feel free to reach me at (407) 227-7763. Questions about the Orlando real estate market always welcome.