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Tuesday, January 24, 2012

Short Sale Strategy – A sellers obligation to negotiate the best price possible

I am involved in several of short sale transactions as a listing agent as well as a buyer's agent.  Of course these are separate transactions as it is not legal for a real estate agent to represent both sides in Florida (as a dual agent).

If you are not familiar with a short sale here is the definition in a nutshell.. 
A short sale is a situation where a homeowner is selling a property for less than the mortgage monies owed.  
After a seller receives and accepts a favorable offer, the offer to purchase must then be sent to the mortgage lender because.....Short sale approval depends on the lender – period.
Although ultimately the decision whether to approve a short sale rests with the lender, my question to sellers is this...

Should the seller do all they can to get the highest price possible for the lender?

The answer to the above question should be an emphatic "yes!"

Why?   Because if there is a deficiency (short fall) and there almost always is, the lender will have to make a decision on that short fall.
  • Do they write it off (forgive the debt)? 
  • Do they require the seller to bring some money to closing?  
  • Do they require the seller to sign a personal loan for the difference (or a negotiated amount)?
  • ????? 
These are just some of the possibilities so with this unknown it is obvious sellers should do the best they can to make the home sell for the best possible price.

And when an offer comes I believe it is a sellers obligation to negotiate the best price possible and then let the bank decide.

If you are considering selling your Brevard County Florida home and a short sale is a possibility, call me at 321-693-3850 or email me to discuss your options.

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