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Wednesday, October 31, 2012

Can a "short sale" be priced too low?

Should a short sale be priced way below the market?  Put another way "Can a Short Sale Property Be Priced Too Low?"
A short sale is a real estate sale where the probable purchase price will be less than the mortgage payoff.

As a result of this shortage the lender(s) will have the final approval of any offer the seller accepts. (Referred to as third party approval)

All sellers want a contract as soon as possible.  Because of the protracted process short sales go through many short sale owners want an offer asap to get the ball rolling.  The process very often takes six months or longer. 

But, does the lender want an offer at any price?   The lender wants as close to market price as possible.  The seller should want as much as the market will pay as well.

Why?  Because of the deficiency.  Read this before taking a low offer... Sellers, don’t say yes to a weak short sale offer!

When representing the seller in a short sale situation I always recommend listing at a price that is going to get an offer that stands a chance of being approved even with some negotiating.

When representing buyer in a short sale situation I recommend offering a price that has a reasonable expectation of gaining lender approval and getting a good deal!

While short sales are often priced at a discount just because of the process, pricing too low will do nothing except disappoint everyone involved…buyers, sellers and real estate agents.

If you are considering buying or selling your Viera, Suntree or Rockledge, Florida home, give me a call at 321-693-3850 or send me an email.

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