What do YOU do when you see a Short Sale that is WAY UNDER PRICED?

Have you ever seen a Listing that is so Under Priced you just have to get your Buyers to it? Perhaps your investors or maybe even yourself. It is not a new trend to Under price short sale listings to get a HUGE response and multiple offers, But it is a trend where people should have learned their lessons.  Here in the Manchester NH area there still are some Home Owners who may owe more than the home is worth. They choose an agent full of promises but little to no experience in short sales. The agents answer is to price it super low, get a buyer quick and toss it to teh bank and wait, and wait and wait.... 

Under priced Short Sale listings make the experienced Listing Agent like me cringe. They have little chance of getting approved as values are increasing, even if only slightly. That means banks will not be approving short sales for any amount much under market value.

When i see this tactic, I take my buyers and run. It is a waste of time tio make an offer on a sale that may be doomed before it starts.

A short sale does not need to be frustrating, It seems to go as well as the agent handling it is experienced in listing, negotiating and selling them. I list and sell short sales, foreclosures, bank owned homes and reo properties in and around the Manchester NH area so i see it all.

To get a short sale to to be approved and limit frustration, there are some things that everyone involved has to do and some things you should  avoid. 


SHORT SALE CLARIFICATIONS

1. The bank is not the seller in a short sale - the home owner is the seller.
2. The listing agent works for the home owner - not the bank.
3. The bank does not set a list price - the listing agent does.
4. The home owner accepts the offer - their bank must then approve the sale


SHORT SALE MYTHS - THINGS YOU NEED TO AVOID

1. THE LISTING AGENT SHOULD PRICE THE HOME WAY BELOW MARKET VALUE

This is one of the most common killers of a short sale, the banks will assess what the home is worth in todays market and will want that sale price near market value less any repairs needed

2. MORE THAN 1 OFFER SHOULD BE SUBMIITED TO THE BANK FOR APPROVAL

Virtually all banks prefer the listing agent to look at all offers, have the seller sign and accept only 1 offer and submit the best offer to them with the short sale package.

3. THE HIGHEST PRICE IS ALWAYS THE BEST OFFER

The highest priced offer may not be the best offer, an offer without any contingincies is best. Next best is an offer without a home inspection contingincy. Mortgage contingincies are allowed as long as a pre- APPROVAL is submitted with the offer.

4. ADDING AN EXPIRATION DATE TO YOUR OFFER WILL MAKE THE BANK WORK FASTER

This myth actually works against you, the process is what it is, if a negotiator sees an expiration date they often decline the short sale immediately. The process has certain steps and each one has to take place for an approval.

THE BEST TIPS WHEN BUYING A SHORT SALE

1. Work with an agent who is well experienced in the short sale process
2. Get pre-approved BEFORE looking at homes
3. Find out if the house in is in foreclosure, if so - you may want to avoid it.
4. Never base any offer on an asking price.
5. Assess what the house is worth and base your offer on that less any needed repairs. 
6. Try to inspect prior to making an offer. Include a credit for repairs needed in your initial offer.
7. Do not try and renegotiate after the bank accepts the short sale
8. Have patience and 2-3 months to wait to close as it may take that long
9. If you have no patience or need to close quickly, a short sale may not be for you
10. Be ready to close in 30 days from when the back approves the short sale

 

In Conclusion: The first thing is never consider the short sale approved unless in writing from the bank and signed by the bank and seller. Make sure you complete a walk through before closing. All occupants/tenants/owners should vacate the home. Make sure those items included in your contract are remaining in the house. Once you close, it is your problem so do not close without a walk through.

 I leave you with my philosophy which is to provide more personal and professional service to guide my clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest. If you want to Buy or Sell A home, I can help.

 

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

It does not take magic to turn your "For Sale" sign into a "Sold" sign. it takes a full time Local Agent who specializes in Listing homes like yours.

If you are thinking of buying a Home please contact us. Get a free pre-qualification along with some of the BEST CUSTOMER SERVICE through each step of the Buying Prices.

Please call for a FREE MARKET ANALYSIS to know what the value of your home is.

WE STRIVE TO PROVIDE THE BEST POSSIBLE SERVICE THROUGHOUT EACH STEP OF THE LISTING AND SELLING PROCESS!!!

 

If you need to sell your home and you owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale which may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees.

 

We are local agents with experience who GET RESULTS!!!

We stand by you through every step in selling your home..

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. With 28 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area. To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com . We are Full Time Agents ready to serve all of your Real Estate needs through each step of the Buying process.

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