How Robert McArtor Price's a Short Sale Listing in Maryland
When listing a short sale in Baltimore, Harford County, Baltimore, Anne Arundel County, Cecil and surrounding areas, I list the property at, or close to, Fair Market Value. On a national average, short sales sell at just 9% below Fair Market Value, whereas foreclosures sell at least 35% below Fair Market Value.
If there is no activity, lenders will favorably view incremental price reductions (3-5%) every 21 days or so. Although it is tempting to accept the first offer on a short sale, it may not be wise to do so if the offer is extremely low. The lender will either deny the low offer, or they reduce fees and commissions in order to meet their net requirement with the low offer.
Should a low offer be denied by the lender, precious marketing time has been wasted, marketing dollars that the we spend increase when the home is put back on the market, and you the seller has moved closer to foreclosure.
Remember, you (the seller) still have control over whether to accept an offer or not. The lender will perform their own BPO (Broker Price Opinion). We will meet with the agent at your home to discuss the BPO that has been ordered to defend against a possible inaccurate (high) BPO. We will discuss comparables, property condition, etc. with that Agent.
We will also submit a CMA (comparable market analysis) to your lender, making sure the CMA is detailed. We will describe and take photos of anything that we feel reduces the value of the property. It’s difficult to appeal BPOs, so the best offense against a bad BPO is defense! Keep in mind that banks don’t view short sales in the same manner that they view foreclosures; they do not expect short sales to be deeply discounted transactions. If you are considering the Short Sale option and you live in Maryland, considering the services of a Certified Short Sale Agent, Robert McArtor with Long and Foster Real Estate, Inc.
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