Short Sales: Keys to Success
Short Sales have certainly changed the real estate landscape in the Hemet - San Jacinto Valley, CA over the last several months.
I first started listing Short Sale listings in the MLS in the Spring of 2007, in the local Hemet - San Jacinto Valley, CA area. At the time, short sales were few and far between as the masses were still speculating if there was a housing bubble or not.
Since then, I have learned there are four key elements that further the odds of a successful Short Sale listing, in the MLS.
SELECTION: While there are many homes and homeowners who find themselves in the situation where a short sale may make the best sense to them - the truth is that not all short sale listings are equal.
Many homes are encumbered with second mortgages, home equity lines of credit and other financial complications. Yes, it is possible to resolve these obstacles but the likelihood diminishes to a point where it may turn out as nothing more than a waste of valuable time, energy and resources.
DETAIL: Attention to detail through every phase of the Short Sale is paramount to success. There is nothing worse than delivering an incomplete Short Sale Package to the lenders negotiator. Not only is it a waste of the lenders time, it is likely to leave a taste of unprofessionalism in the negotiators mouth.
Delays caused by the lack of attention to detail will frustrate everyone as the same steps are repeated for no other reason than the listing agent was not careful and skipped a document.
COMPELLING: As a short sale listing agent it is important that I work with my clients to write a compelling hardship letter. The basics of any hardship can be easily defined in 3 simple sections:
First - Explain how life was before the hardship
Second - What happened and how it changed everything
Third - What the homeowner hopes to accomplish
Hardship is only one criteria of a successful short sale. Comparable data must be collected to establish the value as well as. Condition of the home for sale must be addressed, as well as any other mitigating circumstances and neighborhood characteristics.
PERSISTANCE: I learned a long time ago that ‘Persistence Breaks Resistance'. Another way of looking at it is that ‘The squeaky wheel gets the grease". The trick is to know how much pressure can be applied and how often it should be.
The key to contact with the lenders short sale negotiator is to remain firm and yet helpful at the same time, always seeking ways to keep the process moving forward and providing any and all information that the negotiator asks for.
Homeowners need to understand these elements of a successful short sale so that if put in a position of potentially selling their home short they will understand that not all short sales are created equal and that just because a friend, neighbor or relative was able to accomplish a desired outcome, there are no guarantees.
Short Sales: Keys to Success