Helping homeowners in a short sales get accurate pricing for their home isn’t as difficult as first thought. Short sales are not as frequent as they used to be because the economy has improved significantly. As a result, banks have come back with higher prices potentially reducing the number of interested buyers. It can present a problem especially when a family is facing foreclosure. Finding a team to help a family through this challenging situation is essential and should be high on their list of things to do.
Families in financial distress who cannot make their mortgage payments and find themselves in a position where their home is underwater can be difficult. Short sales are great because it can help bridge the gaps between the distressed family, the bank and a potential buyer of the home. This type of sale can be helpful for the homeowner because it can allow them to avoid foreclosure and reduce the impact placed on their credit rating. A bad credit rating could potentially destroy a family for many years to come. Many homeowners look at short sales as a way to avoid foreclosure and possibly start over again with a somewhat clean slate.
The first consideration a family should look into is finding a team that is experienced enough to work with them through their unique situation. Working with a team with vast knowledge can allow them to be creative and help the family through a difficult time. An experienced team will know when to Pivot and when to stay on course depending on the circumstances you’re facing. Many situations are unique when it comes to short sales, so working with outdated strategies can be a significant detriment to a family. Some steps need to be laid out early on to allow for things to be malleable deeper into the process. By not covering specific steps first, it could eliminate potential options later.
Some of the modern strategies that are working right now in this current market involved submitting a contractor’s report with repair estimates enclosed. The report should include Images and a comprehensive list of items that should need addressing. This particular stage may seem difficult to the family selling their home, but it’s an essential component to help with negotiations later on with the bank. It shouldn’t be something taken personally but rather just an element for the negotiation process.
Another element used today Is submitting an appraisal of the property. It is also known as a property valuation or a land valuation. It will allow owners to take into account any Improvements they’ve made to the property that may not otherwise show up just by taking an average of the recent pricing in the area. It gives the homeowner an opportunity to get credit for specific details and improvements that would otherwise slip between the cracks.
Likely, a good team in today’s market would also submit true comparables at the price point you’d want for the property in and around the area. Having this detail accurate allows for more straightforward negotiations with the bank to bring the price to something that will not scare off a lot of potential buyers. In fact, even suggesting a slightly lower price will attract more potential options resulting in a quicker resolution. The smoother the process goes with all the parties involved, the faster things can happen. It can be reassuring for families that are facing foreclosure.
To conclude, homeowners should consider an excellent team that has experience when considering a short sale for their home. The team will understand the current market as Banks continue to evolve and they’ll understand what applies to your unique situation. A team will work with buyers to use current strategies such as submitting contractor reports and have an accurate appraisal done on the property. They will also likely use true comparables at a price that will not scare off buyers.