Pricing the Short Sale Right is Imperative for Success.

Reblogger Gabe Sanders
Real Estate Agent with Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales 3090099

Pricing a short sale is just as important as pricing any property for sale, along with some different criteria.  Here's an excellent post from Broker Bryant Tutas:

Original content by Bryant Tutas BK607690

http://centralfloridashortsales.comOne of the keys to having a successful Short Sale is pricing. Now there are folks that say pricing doesn't matter because the seller is receiving no funds anyway. Well....they're worng. Tell that to the seller who has to pay taxes on the "short".

It is imperative that the Short Sale property is priced right. When I say "priced right" I mean as close to market value as possible at a price that will get the property under contract quickly.

One of the problems I see in my market is that many Short Sales are priced way to low. Pricing low may generate a lot of activity but these deals, more than likely, will not close. You have to be able to justify the purchase price to the lender.

Pricing a short sale should be just like pricing any other property. You are looking for a price that will sell the property in a reasonable amount of time and at a reasonable price. The fact that the property is a short sale, requiring 3rd party approval, is nothing more than a negative market condition.

If the true market value of the property, if not a distressed sale, is $200,000, then what you should be doing is taking this figure and making an "adjustment" for the "negative market condition (short sale)". Depending on your market it could be a 10% to 20% downward adjustment. Let's say that your market is showing you that short sales are selling for 20% below a normal sale of similar properties. That means that this property should sell for $160,000. So maybe you price at $165,000 or $169,000 depending on your area's sales price to list price ratio. Reduce as necessary.

Now you have a property that is priced right AND you have a very good chance of getting the Lender to agree to the short sale. The higher the price the easier it is for the Lender to make a decision. What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

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Rainmaker
114,299
Laurie C. Bailey-Gates
Robert Paul Properties - Barnstable, MA
ABR, SFR

Hi Gabe,

Good information.  I hear today, that many sellers are getting a forgiveness of debt and do  not have to pay taxes - it all depends on what the bank you are dealing with is willing to do as part of the work out negotiations.

Laurie

May 26, 2010 11:52 PM #1
Rainmaker
526,133
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

Great advise and I agree completely. I just wish some of the lenders would see it that way. 

May 26, 2010 11:53 PM #2
Rainer
278,100
Kathryn Maguire
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach

Great post!  I recently had a short sale where the bank wants us to adjust the price lower than the seller feels comfortable because they are afraid of being pursued for the deficiency..or getting the tax bill if it is forgiven.  I have told them about having an attorney to protect their interests in the negotiations but they were still apprehensive.  The price adjustment goes in today and we will get it sold.  And they can move on....it's a good thing!

May 27, 2010 12:02 AM #3
Ambassador
2,215,299
Wanda Kubat-Nerdin - Wanda Can!
Prado Real Estate South - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

Gabe, This is great information to pass along! So many SS listings are priced ridiculously low to grab attention but often disappoint buyers when they in turn put in a low-ball offer on top of that.

May 27, 2010 05:10 AM #4
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Thank you for stopping by and taking the time to read my re-blog.

Jun 16, 2015 07:06 AM #5
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Laurie, thanks for taking the time to comment it is always appreciated.

Feb 12, 2018 06:52 AM #6
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Ellen, thanks for taking the time to comment it is always appreciated.

Feb 12, 2018 06:52 AM #7
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Kathryn, thanks for taking the time to comment it is always appreciated.

Feb 12, 2018 06:52 AM #8
Rainmaker
4,797,361
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Wanda, thanks for taking the time to comment it is always appreciated.

Feb 12, 2018 06:52 AM #9
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Rainmaker
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Gabe Sanders

Stuart Florida Real Estate
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