Here's a Bad Way to Start a Northern Virginia Short Sale

By
Real Estate Broker with Long & Foster REALTORS®, Gainesville, VA VA License # 0225089470

Here's a Bad Way to Start a Northern Virginia Short Sale

I was out for a listing appointment this afternoon with Sellers who happen to be in a positive equity position in their home.  Their home is in a neighborhood where I already have a Northern Virginia Short Sale listed and under contract.  When I ran the comps for the listing appointment, I knew I'd be dealing with a home in much better condition than the Short Sale I had listed.  Imagine my surprise when seeing the active listings I found a home listed for about 115% of market value for a home in average condition and read the following remarks:

House needs a little touch up paint and carpet is worn and stained in some areas.  The property is As-Is.  The dishwasher and washing machine aren't working.

Northern Virginia Short Sales are typically sold in As-Is condition.  However, as a Northern Virginia Short Sale Agent, I don't think I'd list a Short Sale in poor condition 115% above market value of what a home in average condition goes for.  That is definitely a bad way to start a Northern Virginia Short Sale.

Part of getting a Northern Virginia Short Sale sold is figuring out a list price that is not too high, or too low.  If it's too high, the Buyer's appraisal won't come in at value and the sale could fall out.  If it's too low, the bank will want more money and counter offer when their appraisal comes in, and that can chase off a Buyer who thought they were getting a great deal.

Pricing a Northern Virginia Short Sale properly is critical to the success of your Short Sale.  If you overprice for what you have, you may end up in Foreclosure before you ever see an offer...definitely not the objective of a Short Sale.

Posted by

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.

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Rainmaker
886,458
Michael Jacobs
Pasadena Real Estate Representation 818.516.4393
Coldwell Banker Residential Brokerage

Chris Ann ---- as we know there are some listing agents who will price a short sale far below market value as part of their marketing plan to attempt(or is that tempt) a buyer who truly believes they are going to get a fabulous price on a property that a bank(or number of banks and/or other lien holders) will never accept. What a terrible waste of time --- no wonder some buyers become so fed up with the short sale process.

June 23, 2011 06:49 AM
Rainmaker
477,123
Melinda (Mel) Peterson
The Naked Blogger 541-659-1620
Real Estate Cafe LLC

Great point Chris Ann... and terrific use of key words... smart lady!

June 23, 2011 01:18 PM
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Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Lloyd:  I suppose it's possible, but I don't think even a bank would go that high.

Elizabeth:  Sounds like our market is a bit more predictable.

Belinda:  I would understand if the Seller stood to make money, but in a Short Sale?  Over pricing in that scenario makes no sense to me.

Michael:  It's true.  The success of a Short Sale starts with the Listing Agent.

Melinda:  Thanks!

June 23, 2011 01:29 PM
Rainmaker
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Tni LeBlanc
JD, MA, REALTOR, CalBRE # 01871795
Mint Properties, Tni LeBlanc (805) 878-9879

Pricing correctly is so key to a short sale.  What I haven't liked about the HAFA program is the fact that it initially restricts the listing agent's ability to price a home correctly.  I guess I wouldn't mind if they actually priced it right -- but that's a whole different subject.

June 25, 2011 11:22 PM
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Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Tni:  Sounds like your experience with HAFA and mine are the same.  I find their prices to be a bit.....how shall I say?.......overreaching.

June 26, 2011 10:20 AM
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