Top 3 Reasons that Short Sale Fail
I'm often asked during my short sale con-ed course "What are the top reasons that short sales fail? You must be able to see certain trends - what are they and what can I do to prevent them?" This is an excellent question! I've actually come up with 70 reasons that short sales fail, but let's focus today on the top 3.
I see all 70 over and over, which explains why the national average for closing short sales is only 10%. I've also personally made about every one of those 70, but have learned from those and have since improved my team's closing rate to about 85% over the last 6 months (we're so proud!).
On to the top 3...
#1 is pricing your listings too high. There's no excuse for this and pricing too high creates so many problems (long days on market, less motivated buyers, the bank thinking it's worth more than it is, etc.).
#2 is not being focused on the "process" that's involved with short sales. Which step are you on? What's next? What's after that? Are you driving the process forward, or are you just along for the ride?
#3 is failing to justify the offer value to the bank's BPO agent or appraiser. Maybe this should be #1 - I'm shocked at my con-ed course how few REALTORS® realize the importance of this "secret".
For a complete list of 70 reasons short sales fail, check out click here
Not all of these can be prevented, but many are at least partially (if not completely) in your control. To prevent the ones you can control, it's crucial to get yourself educated or delegate to a team that you trust and that can perform (was that too shameless of a plug?)
Dedicated To Your Success,
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