What Is A Short Sale?

WHAT IS A SHORT SALE? 

Short sales, which some agree should be called LONG sales, have been around for awhile now.  I still hear the question on a weekly basis, "what is a short sale?"  A short sale is a process of selling your home for fair market value, which is less than what you currently owe on the property.  Example, I bought my home in 2004 for $289,000 and can't afford making the payments

on it anymore.  The market has come down since then and similar homes are all selling for $240,000 now.  No buyer will pay $289,000 for my home in this market, so I have to price it with the homes listed at $240,000.  In this case, I normally wouldn't be able to pay a real estate agent or the bank with the shortage I'd be getting from the new buyer, but with the bank's approval, I will be forgiven the difference.  

Now why do I say short sales should be called LONG sales?  Because they take super long!!!!  Well, in most cases they have.  They're actually getting much better, but last year they took an average of 4-12 months from the time the offer was accepted until the time it actually closed.  This year we're seeing 3-6 months now.  

The main objective when listing a short sale is pricing it for a 30 day offer.  You want to get that offer and short sale package submitted to the lender as soon as possible for your clients to get the process rolling.  

If you or someone you know is thinking about selling a home via short sale, give me a call and let me help you decide if that's the best option for you.  I can be reached on my cell at 508-523-8632 or by email at jckcrealty@gmail.com.  All appointments are confidential.  I look forward to helping you!  

THIS BLOG WAS BROUGHT TO YOU BY:
Kathleen Cooper
JCKC Realty Keller Williams
508-365-3567
www.JCKCRealty.com
www.Facebook.com/JCKCRealty

 

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