Working with an agent on a Short Sale brings into play issues that don’t always come up in a traditional real estate transaction.
Your agent will ask for help in areas that might seem unusual – even for those that have gone through several real estate
transactions previously. In our experience, here are some things to keep in mind.
Short Sales Take Time
Getting a Short Sale sold, approved and closed will have your agent working hard to keep everyone on the same page and to
keep the deal together. If it’s clear your agent is working diligently on your behalf, don’t be too rough on him/her if things don’t happen
as quickly as you would like. Lenders simply don’t go very fast sometimes.
Your Lender Will Want Documents
Your agent will ask you to put some documents together so they can be presented to the lender. The lender needs to see evidence of
a true financial hardship. For a list of the documents most lenders require, click here.
Pricing The Property
Your agent will outline a pricing strategy designed to demonstrate to the lender that a real effort was made to maximize the lender’s
recovery of capital. In many cases this will mean starting the pricing at a level above that at which the property will sell quickly.
Be patient, the strategy helps the lender get comfortable that we are working with them.
Responding to an Offer
We want to send the lender an offer that is at a price that is at, or very close to, fair market value. It’s usually best not to send an offer
to the lender that is written at a price well below fair market value. If the offer is below fair market value it is usually best to counter the
offer, or reject it.
One Offer is Best
It is usually best to send only one offer to the lender. We want a buyer that is committed, and if the buyer does not get a commitment
from you, the buyer may be out looking for a property on which they can get a commitment that frees them to attach
themselves emotionally to the property.
Finally, As The Seller You Have Rights
And that means you can change your mind. If your plans change, for any reason, you should consider having as part of your agreement
with your agent the right to cancel the listing contract. It is possible that during the time the Short Sale is being negotiated
your lender could change their policy on Loan Modifications, making you a candidate. Your agent should be willing to allow you
to cancel thelisting agreement if your plans or circumstances change.
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