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Sunday, October 16, 2011

Short Sales - Price MUST BE DISCOUNTED to Compete.

While reviewing new listings I noticed a few new short sale listings that looked very very attractive like one in the Whetstone subdivision in Rockledge.

And then I checked out the recent price reductions.  Typically there are more price reductions than new listings.  Many were short sales where the price had been reduced about 10%.

My question to sellers of short sales is why the price reduction?   It should not be necessary - period.

Why are you not pricing better than the standard sales initially? 

Two reasons why a short MUST BE DISCOUNTED... 
  • Uncertainty Risk for Buyer. Short sales may or may not be approved by the lender.
  • Time.  Why wait for six months or longer?
Why would a buyer make an offer on a short sale when a similar property is on the market as a standard sale at a similar price and will close sooner?

If you are planning on selling as a short sale go ahead and price better than the standard is the only way especially in a declining market. 

If you are in Viera, Rockledge or Merritt Island and a short sale is a consideration, call me directly at 321-693-3850 or email me to discuss the short sale process and some of your options.

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