Don’t You Understand the Rules of Selling a Connecticut Home as A Short Sale?
That was the final statement sent to me by an agent putting an offer on one of my short sale listings. It was generated out of frustration that my clients would not accept her buyer client’s/husband’s low ball cash offer on the home and sending it forward to the bank. My clients were incensed at the low ball offer, but for the wrong reasons.
Any home being sold as a Short Sale in Connecticut will have a great number of emotions tied into the transaction. The primary emotion is over the loss of the home, and the hardship that brought them into the situation. Bad things happen to good people and part of the job we real estate agents have is to explain this to them and hope the Bank is as understanding about the situation and recognizes the misfortune as well.
The pricing of the home also creates emotions as it would be at market value and usually the home was bought for considerably more. The sellers may have failed in their attempts to get a mortgage modification and when the home is given a market price, they recognize that the new owners will have a mortgage that would be within the sellers’ ability to pay, but they are on the wrong side.
Once the sellers are onboard with the reality of what needs to be done, then it’s a matter of getting a value to the bank that has best likelihood of being accepted. Banks want to get a good deal that will close quickly and give them a reasonably good return against the outstanding mortgage. There are no guidelines as to what will be accepted, however, anything within 10% or less of market price will always have a good chance. Coming in with an offer beyond this range will hurt the sellers, as the home will be taken off the market while the offer is processed, and has a good chance of not proceeding forward if the bank counters the offer and the buyers either cannot afford the higher value, or just do not want to pay the Bank’s price.
When Banks get the appraisal done at the beginning of the process, they will then monitor the actions and offer reductions in the attempt to get the house sold.
Our job as a short sale agent in Connecticut is to market the home and get a price that will get the Banks’ acceptance and allow the sellers to move on. Taking any offer and sending it forward, just because, is not a positive and often times can cause the seller to lose the home to foreclosure as that is always the inevitable possibility with the failure to make mortgage payments.
Don’t You Understand the Rules of Selling a Connecticut Home as A Short Sale?
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