SHORT SALE SELLERS: What you should NOT do
Short sale listings compete for all buyers against bank-owned properties and regular listings; and as such, a short sale MUST be extremely attractive to attract a buyer who is willing to wait for a short sale to be approved. We also know that there are no guarantees.
A short sale listing will have quite a few hurdles from the get-go.
The last thing we need is a for the seller to contribute to the difficulty of selling the property.
What are the things a short sale seller should NOT do?
Don’t ignore the usual rules of selling a house
- “Cs”: keep it Clean, Clutter-free, neutral Colors. Remember Curb appeal.
- A lot of buyers avoid short sales --- make your property one that they can’t pass up.
Don’t have so many restrictions that it’s hard to see your property
- Don’t refuse to have a lockbox --- many agents and their buyers may just skip your property altogether and move on the the next
- Don’t be inflexible regarding the days and times your house can be shown
- Don’t refuse a yard sign --- yard signs also attract buyers who may be searching in your neighborhood
Don’t vacate the premises. But if you do...
- Don’t disconnect the utilities --- think of the inevitable: someone uses the facilities and leaves a lingering odiferous souvenir
- Don’t stop maintaining the yard --- an unkempt yard is a huge turnoff. It also invites vandals and other miscreants who start using your yard as a garbage dump
Don’t rent it out.
- Don’t count on a tenant promising to be cooperative.
- A tenant from hell could make it impossible for people to see the property
- Some tenants seize this opportunity to STOP making payments once they think you are near foreclosure, because they think they don’t have to pay and they can hold out for “Cash for Keys”
- Buyers don’t want the additional challenge of evicting the tenant and may want the property to be delivered vacant
Don’t discontinue your insurance
- It’s still the bank’s investment. If they discover that there is no insurance, they will get a force place insurance that will be costlier, and bill you for the cost.
- Worse, lack of insurance could delay the short sale even longer
Don’t be inaccessible and uncooperative
- Don’t disappear --- wherever you are, make sure your agent can get hold of you
- Don’t delay giving the documents that the short sale lender wants. They won’t touch the file unless their documentation is complete. They may be slow in processing the short sale, but once they are ready, they have strict timelines to observe. And you’d better be ready!
Related posts
Short sale primer for sellers - setting the groundwork and expectations
Tenant from hell caused short sale to be foreclosed
Alert the media: Force Place Insurance WILL delay short sale
Comments(11)