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Selling Your Short Sale Home in Vancouver, Washington

By
Real Estate Agent with Keller Williams Realty

Lets face it, a lot of people are losing their homes.  Some through foreclosure, others through short sales.  Sometimes the human element gets lost in the sheer numbers that are staggering to say the least.  I look at each case individually and remind myself daily that these are not just sellers, they are people who are hurting.  It is my job to help them through this difficult time with as little stress and trauma as possible.  The following is some information I've gained through the many short sales and foreclosures I have worked on. 

Why would I mess with a short sale versus just being foreclosed on?

If you are in a bad spot and behind on your payments, you probably qualify to sell your home in a short sale.  By missing one or more mortgage payments, you have done damage to your credit score.  However, if you get foreclosed on, the damage will be much worse.  The goal is to minimize the damage to your long term situation which you do by participating in a short sale vs. being part of a foreclosure.

As a seller, what selling strategies should I consider if I am losing my home?

There are several things to take into consideration if you find yourself in this position.  Many people choose to try and live for free as long as possible because that is the only economic benefit they will get out of their home.  The key is to time things so that you don't sell too early, so you can live "rent free" for as long as possible and yet not wait so long that it ends up going into foreclosure.  In this scenario, we usually price the home a bit high at first and then slowly reduce the price to a number that the bank will accept as the short sale value.

If you don't care about living in the home for free because you have another place to live, then we try to price the home so that we attract a buyer, but not so low that the short sale bank won't accept the offer.  There is a fine balance between the two and an experienced Realtor can help you to choose the best option for your situation.

What pitfalls do I need to avoid?

It is very important that you understand that your credit will be damaged when you miss mortgage payments.  This means that you may have a hard time finding a place to rent with your newly ruined credit score.  In that case, sometimes you are better off finding a place to move to before you miss a payment while your credit is still good.  You won't be able to take advantage of living free, but are assured a good place to live after the dust settles.

Pricing is also a very touchy subject.  Too many people make the mistake of pricing their home too low.  It may get you a quick offer but it usually means that after months of waiting for the short sale bank to respond, they reject your buyer's offer because it is too low.  You could then find yourself out of time and will miss the chance to avoid foreclosure.

The most common mistake we see, is when someone hires a real estate agent that is not an experienced short sale negotiator.  Though your friend or relative that sold you the home may be competent in many aspects of real estate, this is a highly developed specialty.  Hiring the right agent is the difference between getting it done and ending up in foreclosure which has a devastating effect on your credit vs. the effect of a successful short sale. 

I first got my real estate license in 1978 and am usually in the top 2% of agents in Clark County, Washington.  I have a full time short sale negotiator on my team to make sure everything gets done right and on YOUR time schedule.  Please call me for a personalized and confidential interview to decide the best strategy to help you through a difficult time.  Because of the many people I have worked with through this process I have great empathy for you and your situation.

                       WHEN YOU NEED A GREAT REALTOR.....

                                                                                       WHAT ABOUT BOB???

 

Bob Bloom, Partner

Keller Williams Realty in Vancouver, Washington

360-607-5829

Vancouverbob@aol.com