Short Sale Tips And Mistakes

Although selling your home via a short sale in Arizona is almost always beneficial to both the buyer and the seller, it can be a long, complicated process which can unintentionally backfire and cause the seller to lose their home to foreclosure. If you are thinking of short selling your home, here are some short sale tips to avoid disaster.

Common short sale mistakes

  • Short sale is priced wrong – Price the property appropriately and make it attractive to the following parties: the short sale lender, the buyer, the buyer’s agent, the seller and the buyer’s lender. This may seem impossible, but there is an art to real estate pricing.
  • Agent is inexperienced – Many agents are attracted to short sales in today’s market because sometimes it is the only business there is. Sellers should find out what the realtor’s experience is in short sales. Short selling houses is a complicated and sometimes tricky process and agents should have at least 2 years experience in these types of sales and negotiations.
  • Poor marketing – An inexperienced agent will sometimes convince the seller to put an extremely low price on the home, and then not market it sufficiently. Then the seller wonders why his home is not selling. Short sale homes need to be marketed aggressively by an experienced agent.
  • Restrictions on showing – Buyers and their agents will often pass on a home that requires an appointment to view it. Seller need to be prepared to show their short sale home at any time, including weekends.
  • Lack of photographs on MLS – A listing with no photos or inadequate photos is likely to get passed over. Buyers can get the idea that there is something wrong with the home. On some sites, listings without photos get dropped to the bottom of the ranking.
  • Poor condition of property – The short sale home should be kept in peak condition and clean at all times in case a buyer comes looking. Untidy homes may cause a buyer to think that the place has not been kept up properly, or that the seller may trash it upon vacating.
  • Sellers are uncooperative – Sellers need to get their paperwork to the bank in a timely manner. Failure to do so can cause delays in short sale approval, and may cause buyers to back out. Sellers need to submit personal financial information and a hardship letter in order to qualify for a short sale.