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Short Sale Tip of The Week 6-3-09
Posted on 02. Jun, 2009 by ctlms in Short Sale, foreclosure
What price should I list my short sale at?
This is where many agents shoot themselves in the foot.
So here is the situation; The seller owes $200,000. Your CMA says it won't sell for more than $175,000. Where do you list it?
The correct answer is...It depends. Sorry, but as is the norm in life, there are no perfect answers. Here's the deal. If your seller is a couple weeks or a month from foreclosure you need an offer now and you need to list it where it will sell now. Period.
For all the other listings where the seller has some time, even if already facing foreclosure, you need to use some strategy.
What do you think the bank will say if you listed the above mentioned property for $175,000 and had a full price offer in a week? Most likely they would say, "Why did you list it so low? You could have received a higher offer if you listed it higher." And they will most likley counter the buyer with a higher offer, higher even than the listed price. And that buyer will probably bail.
Now how about if you had listed it at $200,000 and lowered it $10,000 after the first 2 weeks of no showings or offers and then lowered it $5,000 a week till an offer came in? Do you think you would get the same question from the bank? Is there any better evidence of what a property is worth, or at least what it is not worth, than having it on the MLS?
This strategy is perfect for showing the lender that the offer on the table is the best they are going to get. It is the best evidence to show a BPO agent or appraiser to justify the short sale offer.
A little bit of strategy can go a long way. And there are numerous areas of a short sale offer that require strategic planning to set your transaction up for the highest probability of leading to a successful closing.
Well that's it for this week.
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Bio
Sean Wilder started in the pre-foreclosure business in 2007. Previously he enjoyed successbusiness in the transportation industry, real estate investing and as a licensed Realtor. Sean brought the same determination and work ethic that lead to great success in his previous businesses to Loss Mit Services based in East Windsor, CT. His focus, combined with his drive to succeed, have been essential to his success as one of the area's top short sale negotiators.
Known for finding creative ways to overcome hurdles and never ending persistence; Sean, believes in the power of team. Sean and his team are in the trenches everyday, plowing through challenges and objections while negotiating with various lenders, and finding solutions to difficult problems. It is this daily experience that brings Loss Mit Services consistent success and provides them the knowledge to share.
Sean belongs to a number of industry groups and associations that allow him to collaborate, share, learn, teach and stay updated on the latest changes in the pre-foreclosure industry at the federal, state, local and lender specific levels.
Effective Oct 1, 2009 all debt negotiation companies that offer loan modification, short sale, or foreclosure rescue services needed to be licensed by the CT Dept of Banking. Sean and his company Loss Mit Services were the 1st to be awarded the Debt Negotiation License NMLS # 828273 which can be verified at the CT Dept of Banking Website by Clicking Here. In addition, effective Oct 1, 2011 Debt Negotiators were required to also be licensed Mortgage Loan originators and Sean also has received this license, NMLS# LO-831853.
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