Short Sale Tip of The Week 4-29-09

Posted on 29. Apr, 2009 by ctlms in Short Sale, foreclosure

Listing Price Changes        When & Why?

When listing a short sale, especially one in foreclosure, your seller is walking away from the closing with no money from the sale.  As long as the sale is approved by the lender(s) and the seller is relieved of the deficiency, the sales price makes no difference.

So why should you wait weeks or even months to lower the sales price if you have not received any offers?

You should not.  It is in your clients best interest for you to sell their property as quickly as possible, regardless if they are in foreclosure or not.

Reasons to be quick to lower the price if your client is behind on payments:

  • Every month that goes by is another month they are marked as late on their credit report
  • Every month their are more and more fees being added to their debt that must be negotiated away with the sale
  • The stress alone is worth getting it done asap
  • Even after an offer is received it can take months before a closing
  • The foreclosure may happen before you get an accepted offer, you need an offer sooner rather than later

Reasons to be quick to lower the price if your client is current on payments:

  • Every dollar they make in mortgage payments from here on is a dollar they will never see again.  They are no longer paying down principal because they are getting no money at closing.
  • It is more common for lenders to want the seller to sign a promissory note when they are current and have good credit.  They are better served getting the property sold and taking the money they would have been throwing away on that mortgage interest and putting some or all of it toward that low interest promissory note.
  • Once again, just being done with it is important enough to get it done.

As Real Estate agents you all know that "Price Sells", especially today.  So why waste time and money by sitting on a listing that you could have already had under deposit and be half way to a closing if you had lowered the price months ago.

Price reductions are also a great tool to use with the lender when negotiating a short sale.  A good listing history showing successive price reductions and no offers is a good indication of the proper market value to the lender.  You would not believe how often a BPO comes in EXACTLY at the listed price. 

So don't wait for an offer to come in at the price you think the property will sell for.  Start lowering it toward that price asap.

Agents that work with us to get their short sales closed, receive these kinds of tips right at the beginning of the listing process to make the deal as quick and painless as possible.  There are numerous "Tips & Tricks" to successfully getting paid your commission when dealing with today's short sales.

Give us a chance to prove to you how easy and profitable they can be for you.

Have an awesome day and look out for future tips from us.

Sincerely,

Sean Wilder
Loss Mit Services

PS check out our online short sale processing system at www.CTLMS.com that keeps you up to date instantly, whenever there is a change to your short sale file.

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