Short Sales-Pricing Them to Sell isn’t Rocket Science

By
Real Estate Broker with CJ Realty Group, Inc.

Short Sales-Pricing them to SellOver the last few days I've had a number of calls from agents on my Belmont Bay short sale listing  Some of them have asked the important questions about the short sale package but most of them have skipped past it and asked "so what will the bank take?"

In fact pricing a short sale listing is the same as pricing any other listing.  You can list it low, you can list it high or you can list it in line with the other comps in the area.  If you list it low sure you can generate multiple offers, which on a short sale isn't always the best way to get the bank to act or you can list it high and give a buyer the opportunity to feel they are getting a deal by making a lower offer.

However if you price it right and the bank sends out an appraiser who says "yes it is priced right" you have a much better chance of getting your deal closed.  So when an agent asks "so what will the bank take" my answer is always going to be "list price."  Protesting that the bank should be "happy" to receive a cash offer of $50,000 to $75,000 isn't realistic and I wouldn't be doing my duty to the seller by telling them to accept it. 

Though I don't list short sales by the dozens I did just get an approval back from the bank on one in 14 days recently.  The appraisal supported the contract price which I think made it a "no brainer" to the lender.  As we see the percentage rate of short sale closing move upward I think more agents have gotten the message that short sales need to be priced where the market dictates.  Pricing them low or pricing them high isn't going to get you to closing.

Check the comps before you ask "how much will the bank take?"  If the property is priced right then, say YEA and know your client has an opportunity to get a nice property at a great price.

Posted by

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and CJ Realty Group,  a call at 703-346-2213. 

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

Military Relocation Professional


Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.
CJ Realty Group Woodbridge VA 
Real People*Real Life*Real Estate

Licensed in Virginia



 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Topic:
Real Estate General Information
Location:
Virginia Prince William County Woodbridge
Groups:
Dedicated Bloggers
Northern Virginia Real Estate
Realtors®
RE/MAX Active Rain Bloggers
Virginia Foreclosures Short Sales and REO (and Pre-Foreclosures)
Tags:
belmont bay
short sales
woodbridge
prince william county real estate

Comments 13 New Comment

Rainer
150,258
Ken Montville
The MD Suburbs of DC
RE/MAX United Real Estate

It always nice to have a responsive bank (and to think that two weeks is now considered speedy). But finding the right bank or loss mitigation specialist or whatever to work with the listing agent to move the house may not be rocket science but it may be more like a trip to Vegas -- a real crap shoot.

March 31, 2009 09:47 AM
Rainmaker
312,527
Carol Culkin
Overland Park
Reece & Nichols

Cindy - Yup, pricing it to stand out - that's what is key for short sales ...and the traditional sellers need to know this to compete with short sales. Unfortunately, it's a viscous cycle.  

March 31, 2009 03:27 PM
Ambassador
1,770,881
Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
CJ Realty Group, Inc.

Todd-they do seem to be more responsive than they used to.

March 31, 2009 08:15 PM
Ambassador
1,770,881
Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
CJ Realty Group, Inc.

Ken-on this particular deal the initial response came quickly but there are a few sticking points that are keeping us from jumping up and down with glee.

March 31, 2009 08:16 PM
Ambassador
1,770,881
Cindy Jones
Pentagon, Fort Belvoir & Quantico Real Estate News
CJ Realty Group, Inc.

Carol-I think if you price them according to the market and don't try to play games with the lender and potential buyers you are more likely to end up with a positive outcome.

March 31, 2009 08:17 PM
Ambassador
1,770,881

Cindy Jones

Pentagon, Fort Belvoir & Quantico Real Estate News
Have A Northern Virginia Real Estate Question?
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the woman to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

CJ Realty Group Listings