How To Do a Short Sale…. Successfully
It’s a word we’ve come to know, to fear perhaps, and almost certainly make us uncomfortable. But Short Sales are and can be our best friend in today’s market. Here’s a short expo on how to do a Short Sale successfully, from an experienced short sale expert.
How Does A Short Sale Actually Work in San Diego?
- I’m not kidding about this first one. None of the other tips matter if you don’t pay attention to this short sale MUST. You have to first select a San Diego Realtor that knows how to do short sale listings. This Realtor should be educated and able to explain how the banks, credit agencies,and potential buyers will react to your requesting a short sale.
- Then the emphasis shifts back to YOU. You’ll need to be willing to talk to the short sale listing agent about how much you currently owe on your home, whether you’ve been current on your mortgage payments, and if you’ve been contacted by the bank for any reason. Remember that a short sale occurs when you list your home for sale for less than the current loan amount, and the bank gives its approval to sell your home and take the lower amount. You may think that a short sale means that you’re going to go the bank “asking for a handout.” Nothing could be further from the truth. This is business. Serious business….and it means that you and your Realtor need to work hand in hand to encourage the bank to approve working with you to leave your home with the least damage to your credit and finances.
Who Is Selling My Home…Me or the Bank??
- The most common question no one ever asks is the one above, and it is critical that you understand the answer. Here’s how this works. The short sale real estate expert is going to provide you with the current value of your home (this is called the comparative market analysis by real estate professionals). With that information in hand you’re going to forget about how much you actually owe the bank….honest. All you and the Realtor need to decide is the actual best estimate of what your home will sell for today.
- At that point you will list your home for sale with your short sale real estate expert. You’ll want to do everything in your power to make sure your home is actually ready to sell. Clean, polish, unclutter and make your home as inviting as possible. Your job, with the help of your Realtor, is to get buyers to visit your home, like what they see, be relatively happy with your asking price, and then make an offer that YOU accept.
- The offer you accept will be a contingent offer, though. That is, the buyer will understand that you are accepting the purchase offer from the buyer CONTINGENT on getting the bank to say “yes” to it. If the bank does not approve of the price or conditions, you will not be able to move forward with the sale.
How Can I Successfully Get Bank Approval of My Short Sale?
- Success in the short sale process starts back with the first rule above. Your short sale real estate professional will be your best opportunity to gain an approval from the bank. Here’s how that will happen…
- If your home has been marketed professionally, then you will get a willing buyer who is willing to pay market value for your home (that is, not what YOU thinks it’s worth, but what the “market” decides it is worth). Then this offer will be delivered by your real estate agent to the bank’s ASSET MANAGER. This is the person at the bank who will help or hinder your attempt to short sell your home. The asset manager’s job is to make sure that you qualify for a short sale, and that the amount the bank is going to allow your home to sell for is at or near what other homes similar to yours are selling at now.
- You will have given the short sale real estate professional the right to negotiate on your behalf with the bank’s asset manager, and usually if you have all worked together during this process, the short sale will be approved.
- Once approved by the bank, you will notify the buyer, who will do their inspections and move with you into opening of escrow. A short time later….your short sale will be accomplished!
If you decide to use the services of Don Reedy, one of North County San Diego’s most respected and experienced short sale listing agents, then your chances of achieving the sale of your home with the bank’s permission will be much improved. So here’s what to do…
- Just Do It! Get on the phone with Don right now.
- Forget the papers, the news, even your well intentioned neighbor’s advice. You need experience now, not well meaning pseudo experts.
- Start planning the sale of your home. Make your home ready for sale. You want buyers to make offers on your home so that you can approach the bank with that offer.
- Read the other articles on Short Sales on this site. Become an expert yourself. Take charge today. Others may be waiting, watching….and they’re all hoping for another government windfall. Trust me….we’re out of windfalls. Nothing left but facing your situation with humor and intelligence, and working with your bank and your real estate short sale professional to get your home sold and get you on track financially.