The SECRETS to getting a SHORT SALE Approved. What to do and what to avoid...

By
Real Estate Agent with Godzyk Real Estate Services
http://actvra.in/mWl

A short sale does not need to be frustrating, It seems to go as well as the agent handling it is experienced in listing, negotiating and selling them. I list and sell short sales, foreclosures, bank owned homes and reo properties in and around the Manchester NH area so i see it all.

To get a short sale to to be approved and limit frustration, there are some things that everyone involved has to do and some things you should  avoid. 


SHORT SALE CLARIFICATIONS

1. The bank is not the seller in a short sale - the home owner is the seller.
2. The listing agent works for the home owner - not the bank.
3. The bank does not set a list price - the listing agent does.
4. The home owner accepts the offer - their bank must then approve the sale


SHORT SALE MYTHS - THINGS YOU NEED TO AVOID

1. THE LISTING AGENT SHOULD PRICE THE HOME WAY BELOW MARKET VALUE

This is one of the most common killers of a short sale, the banks will assess what the home is worth in todays market and will want that sale price near market value less any repairs needed

2. MORE THAN 1 OFFER SHOULD BE SUBMIITED TO THE BANK FOR APPROVAL

Virtually all banks prefer the listing agent to look at all offers, have the seller sign and accept only 1 offer and submit the best offer to them with the short sale package.

3. THE HIGHEST PRICE IS ALWAYS THE BEST OFFER

The highest priced offer may not be the best offer, an offer without any contingincies is best. Next best is an offer without a home inspection contingincy. Mortgage contingincies are allowed as long as a pre- APPROVAL is submitted with the offer.

4. ADDING AN EXPIRATION DATE TO YOUR OFFER WILL MAKE THE BANK WORK FASTER

This myth actually works against you, the process is what it is, if a negotiator sees an expiration date they often decline the short sale immediately. The process has certain steps and each one has to take place for an approval.

THE BEST TIPS WHEN BUYING A SHORT SALE

1. Work with an agent who is well experienced in the short sale process
2. Get pre-approved BEFORE looking at homes
3. Find out if the house in is in foreclosure, if so - you may want to avoid it.
4. Never base any offer on an asking price.
5. Assess what the house is worth and base your offer on that less any needed repairs. 
6. Try to inspect prior to making an offer. Include a credit for repairs needed in your initial offer.
7. Do not try and renegotiate after the bank accepts the short sale
8. Have patience and 2-3 months to wait to close as it may take that long
9. If you have no patience or need to close quickly, a short sale may not be for you
10. Be ready to close in 30 days from when the back approves the short sale

THE BEST TIPS WHEN SELLING A SHORT SALE

If you owe more than your house is worth, if you are behind in your payments or if you have to move. A Short Sale could be for you. The most important tips is to list with an agent who is well experienced in listing, negotiating and selling Short Sales. If you live in NH, call me first. I use a professional negotiator that works on the sellers behalf when negiotiating with the bank at no cost to you. Most often the home owner can complete a short sale at no cost to them.

AVOID OUT OF STATE AGENTS AND NEGIOTIATORS!!!!!!!!



CONCLUSION: As a Leading Listing Agent here in New Hampshire, I strive to offer my clients the best in personal and Professional service. Whether you are the seller, the buyer or another agent it is my goal to be the most helpful agent i can be. Treating Buyers and Other Agents with respect (Like i would want to be treated) is the only way to lead ones life and business. It keeps buyers and agents coming back as well as gets my listings sold quickly and at the best price obtainable.

In a Short Sale you often only have 1 chance to sell it correctly. Making a bad choice on who you list it with or waiting too long if the foreclsoure process has started can kill a short sale quickly.  CALL ME FIRST for RESULTS!!!



If you need to sell your home and If you may owe more than your house is worth, i may be able to help. I specialize in working with home owners to get your home sold. There are many options such as a short sale whcih may be able to help you.

Please try and avoid out of state or out of town agents and companies that make "out of this world promises". We are local agents with experience who never charge any up front fees. WE GET RESULTS!!!


PLEASE SEE SOME OF MY MOST POPULAR BLOGS

 
 
ONE OF NEW HAMPSHIRE'S LEADING AGENTS FOR SHORT SALES AND BANK OWNED HOMES...

If you are Looking for a Real Estate Agent you have come to the right place. Scott Godzyk is a Full Time and Local agent ready to serve all of your Real Estate needs through each step of the buying or selling process. We are proud to be locally owned and operated.

If you owe more than your house is worth, If you are behind in your payments, I may be able to help. Call me to find out how you may be able to sell your home at no additional cost to you.

Scott Godzyk is the Owner/Broker of The Godzyk Real Estate Services located in Manchester NH. With 25 years of Real Estate experience Scott specializes in Listing and Selling Bank Owned Homes, Short Ssles, Residential Properties, Condominiums, New Construction and Investment Properties. Scott services the counties of Hillsborough, Merrimack, Rockingham and Belknap. To contact Scott Godzyk please call 603-661-2121 or email sctprop@aol.com. his website is www.ScottSellsNH.com.





 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Charles Stallions 06/23/2012 07:30 PM
  2. C. Lloyd McKenzie 06/23/2012 08:08 PM
Topic:
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Location:
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Show All Comments
Rainmaker
791,373
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales a

You posted some great advice here Scott, very important to work with a Realtor who has short sale experience.

October 04, 2011 11:39 AM #1
Rainer
135,752
Mike Warfel
Bauer-Reno & Assoc. - Port Huron, MI
Associate Broker

You have a very clear view of what a Short Sale is, thanks for sharing your experience.

October 04, 2011 11:44 AM #2
Rainmaker
1,051,438
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Thank you for the comment AL, i had an awful experience yesterday with an agent who listed a short sale but didnt even know how the process worked. I felt bad for her seller... thanks and have a good day

October 04, 2011 11:46 AM #3
Rainmaker
1,051,438
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Thank you for the comment Mike, i have done alot of them and would love the process to be easier so i added my 2 cents. have a good say

October 04, 2011 11:47 AM #4
Rainer
86,182
Wale Adewoyin
1st Crown Realty Corporation 972-268-9400 - Arlington, TX

Scott, I find that not only do you need an agent with short sale process knowledge, you need one who is used or willing to learn how to deal with banks and corporate real estate issues. Like you pointed out, the bank is not interested in who buys, but their loss ratio.

December 26, 2011 09:57 AM #5
Anonymous
Anonymous
Thessy Onyenedum

Scott, thank you for this educational article.  Have been selling short sales a long time.  Thought I knew it all.

Million thanks for the insights.

February 26, 2012 08:18 AM #6
Rainmaker
57,607
Margaret Hickman
Keller Williams Realty - Cenla Partners - Alexandria, LA
REALTOR, GRI, ABR, SRS

Wonderful article.  It provided some good insights for buyers and agents.  The process is not for the impatient.  I do think, however, it could be improved if communication were opened between the various departments within the lender organization.  The foreclosure department doesn't know that a short sale is in progress and vice versa.

February 26, 2012 03:04 PM #7
Rainmaker
494,150
C. Lloyd McKenzie
Prudential Allstar Realtors - Albuquerque, NM
MBA - Prudential Allstar Realtors -

Good Evening Scott...Very Good Post.  You mave some valid points.  The roblem is that banks are not playing by th rules.  There should be a standardizes set of rules for all players

June 23, 2012 08:03 PM #8
Ambassador
671,401
Karen Crowson
Alain Pinel Realtors, Pleasanton, CA - Livermore, CA
Livermore Wine Country Homes

This is a very comprehensive and well written article.  Good information for buyers and sellers of short sales.

June 23, 2012 08:18 PM #9
Rainer
167,369
Dave Sullivan
www.TheCreditGuy.TV - Birmingham, MI
The Real Story on Your Credit Score - TheCreditGuy

 

Excelent information I will forward it if that is ok? thank you!!!

November 01, 2012 06:54 PM #10
Rainmaker
395,804
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

Hey Scott.  You've included some good information here.  I'm sure many will find it useful.

keep up the great work,

Corona Short Sale Agent

December 29, 2012 03:02 PM #11
Rainmaker
306,780
Inna Ivchenko
Mannis Real Estate Group - Calabasas, CA
Los Angeles / Valley Homes

Great post, still true, still plenty of them. Short sales are on and they are not going anywhere.

According to CoreLogic here are the numbers:
As of October 2012, 2.3 million housing units still remain in shadow inventory. The total translates into a supply of 7 mmonths and sits 12.3 percent lower than the 2.6 million units in October 2011. Shadow inventory represented 85% percent of the 2.7 million properties that are seriously delinquent, in foreclosure or in REO, according to CoreLogic. And, five states alone accounted for 45% of the 2.7 million properties. The states were Florida, California, Illinois, New York and New Jersey. Source for CoreLogic numbers was DS News.

January 16, 2013 01:09 AM #12
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Rainmaker
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Scott Godzyk

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