My First Time: My First Short Sale
This post is being submitted as an entry in Patricia Kennedy's: Your First Time - The Real Estate Edition Contest.
3 Causeway Road, Holland MA
In the summer of 2012, a couple contacted me for help with selling their home. In the course of discussion, it was revealed that they owed more on their mortgage than the house would gain in the market. They expressed interest in selling as a short sale, and we listed the home as such.
This was my first potential short sale transaction. Luckily, I had gone through the training for the Certified Distressed Property Expert designation and had an encyclopedia of resources available. In addition, short sales had become a regular part of my market in Central Massachusetts. I felt this one had a good chance of being approved.
We listed the home in August at $209,900 and received an offer in October. The buyer was unable to obtain financing due to the fact that the home was in a flood zone. We dropped the price to $199,900 in February. The activity was very good, but being over that $200,000 price point was just too high a reach.
A number of other offers came and went, and I have to say that this was largely due to buyers' agents not telling their buyers about the need and cost for flood insurance. It was fully disclosed in the listing but was not being communicated clearly to the buyers. We would get halfway into the process. and the buyers would be denied financing because the cost of flood insurance put them over their monthly budget!
We finally sold it in January 2014 at $195,000.
This was one of my most rewarding transactions, being able to advise my seller clients on how to work with their lender during the course of the short sale and finally seeing their lender approve the short.
Comments(5)