Short Sales ::: Pitfalls & Solutions

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Short Sales ::: Pitfalls & Solutions

Postby GreenRealty » Sun Nov 21, 2010 9:34 am



Short Sales ::: Pitfalls & Solutions

As a homeowner considering a short sale, it is important you understand the process. Following are some of the most common mistakes agents and homeowners make when handling a short sale.

Your Property is Priced Incorrectly

Pitfall: Your Property is Priced Incorrectly
This is the most common mistake made with all properties, and the most common reason a property doesn't sell.

Solution: Agent Providing Understanding and Transparency Your real estate agent will go through a detailed listing price strategy with you, allowing you to see exactly where your property should be priced based on its current condition, sales in your area, and most importantly, how much time you have left to sell.

Your Short Sale Proposal is Incomplete

Pitfall: Your Short Sale Proposal is Incomplete
This is one of the most frequently seen causes for the rejection of short sales proposals. Most agents do not understand the short sale process and what your lender will be looking for.

Solution: Understand All Aspects of the Process
Your agent should understand the short sale process in detail and be able to explain it clearly. The agent should also be able to communicate effectively with both you and lenders to produce a complete and cohesive proposal.

There has been Inadequate Follow-up and Communication

Pitfall: There has been Inadequate Follow-up and Communication
As your property goes through each stage of the short sale process, an agent can jeopardize the transaction by not properly communicating with everyone involved. As the homeowner, you may not know that your file has been delayed, and that you again may run out of time to close and avoid foreclosure.

Solution: Select an Agent With Experience
The right agent knows exactly how to follow up to ensure that your lender's issues are addressed in a timely manner, and will make certain you do not have unnecessary delays.

Not Enough Time

Pitfall: There Isn't Enough Time
It is critical that your agent understands the foreclosure laws in your area. They should be able to show you an estimated timeline for the process, from start to closing. In addition, they should know how to communicate with your lender. Certain information can be provided to lenders to postpone your foreclosure for weeks or months in order to negotiate a sale.

Solution: Provide Accurate and Useful Information
Make sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.

Your Deal is Not Submitted Properly

Pitfall: Your Deal is Not Submitted Properly
If you do not follow the directions you receive for submission, then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this situation working out in your favor.

Solution: Follow Instructions Closely
If you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. When you reach the point of having a contract, all your information, and a completed proposal, you do not want your deal to fall apart because no one sees it.

The Buyer's Offer is Too Low

Pitfall: The Buyer's Offer is Too Low
Many agents will encourage you to submit any offer that comes in. The reality is that a short sale is not the same as a fire sale. In order to have a legitimate chance of getting your deal approved, you must have an offer that is more attractive to the lender than a foreclosure.

Solution: Proper Negotiation
The right agent will work with you to properly negotiate any offer that you receive to get 'highest and best' from each potential buyer. This ensures you are presenting the best possible solution to your lender.

The Buyer's Contract is Not Strong Enough

Pitfall: The Buyer's Contract is Not Strong Enough
Especially in our current economic climate, willingness to make an offer on a property does not mean that a buyer is truly qualified to purchase. The reality is that buyers need to be preapproved for financing, closing funds must be verified, and their ability to buy needs to be confirmed.

Solution: An Agent Familiar with Qualifying Buyers
Your agent should be familiar with what must be verified in order to qualify a buyer to submit an offer on your property. Otherwise, these offers may have little chance of closing. Don't risk this process with an uneducated agent who does not appreciate this aspect of short sales.

In conclusion, While these pitfalls may seem troublesome, the right agent can help you navigate your way to a successful closing. Don't endanger your financial future and the potential sale of your home with an agent who does not fully understand the process. CDPE-designated agents have completed extensive training in the short sale process, and in assisting struggling homeowners who need real solutions. They understand what you are going through, and are here to serve and help save your family's interests.

Patty Da Silva, Broker - Owner of Green Realty

I am the BROKER and Owner of Green Realty Properties®, and also a REALTOR® and listing specialist. Being a REALTOR® isn't just a career to me, it's my life! I truly love what I do; I think I need to with 14 hour workdays - but I enjoy every minute of it! As a REALTOR®, I help people navigate through a major transaction that is likely foreign to them, guide them, teach them, and share my knowledge. Most of all, as a REALTOR®, my job is to be compassionate and understanding through this often stressful and confusing time in a person's life. In tough times like these, my sincere desire to help others has given me the ability to stay in a business that I wholeheartedly adore.

If you live in or are relocating to my gorgeous part of the world - South Florida (Davie, Cooper City, , Plantation, Southwest Ranches, Weston, Sunrise, Pembroke Pines, Coral Springs, Fort Lauderdale, Aventura, Miami and the Palm Beaches) - My Green Realty Team looks forward to your call so we can assist you with your all of your Real Estate needs. At Green Realty we speak English, Portuguese, Spanish, Greek and Japanese fluently, which is a great asset in a multicultural area like South Florida.

If you are a Seller in this complex market, hiring a Broker-REALTOR® who specializes in listing homes is probably the single most effective step you can take to get your home sold. As an experienced Licensed Real Estate Broker-Realtor, I can appropriately price your home based on recent closings, current listings, inventory levels and specific conditions of your home and neighborhood. Since 87% of buyers start their search for a home on the internet, I make sure my Sellers' homes enjoy maximum exposure with intense internet marketing in over 20 sites, which provide the marketing necessary to spotlight your home to as many buyers as possible. I bring my Sellers peace of mind that is second to none; from listing to closing they know that I, along with my team, will handle every detail with excellence.

If you are a Buyer, you can also get all the benefits, knowledge and experience of working with a REALTOR® at no cost. Green Realty Properties has a team of experienced Buyer's agents who bring enormous value and knowledge to the transaction. Our REALTORS® will search tirelessly to find your dream home and apply their great negotiating skills for your benefit during the contract phase.

If you are reading this from your beautiful part of the world and are just looking for some guidance, I hope the information provided will be beneficial in your search for a great REALTOR® in your area, who won't give up until you have found your dream home or have sold the home that you have outgrown. I truly believe that it is essential to be educated whenever choosing any professional.

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Green Realty ::: (954) 667-SALE (7253)

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