Go Back To Article List

How to Sell Real Estate in a Short Sale

Posted Monday, January 12, 2015

You have found yourself in a difficult financial situation. What is even worse is that your home is under water as you are now unable to keep up with the payments. You have determined that a short sale is your only way out; however, you are not sure where to begin. Following four key pieces of expert advice will enable you to sell real estate in a short sale with ease.

Talk to Three Key Players

When you are considering a short sale, you need to speak with three key players, a real estate attorney, a CPA and a qualified real estate agent. The laws that determine a mortgager's ability to go after a mortgagee when there are deficiencies in a short sale will differ depending on the state in which you live. These three key players can provide you with the best advice on how you are to proceed so you can make the sale with confidence and protect yourself.

Find the Proper Agent for the Job

It is imperative that you find the right agent for the job as not all agents are experienced in short sales. To ensure you choose the most qualified agent, you need to do the following:

1. Research agents' track records online.
2. Interview agents about their short sale history, such as by asking them how many successful short sales they have had and how many short sales they ended up losing to foreclosure.
3. Ask if you can speak with the real estate agents' last five short sale clients.

Do not let real estate agents fool you with fancy titles. These titles can be earned after merely taking various courses. Additionally, do not fall for any scams that seem too good to be true because more than likely, they are.

Figure Out Your Home's True Value

The last thing that you want to do when you sell your home in a short sale is list your home too far below market value. The banks will not budge as they want as close to market value as possible. Since you want your short sale to be successful, it is critical that you know the true value of your home. There are three ways you can find out what your home is worth. You can talk with a real estate broker, conduct an Internet search and hire an independent appraiser. Once you know the actual value of your home, you can set your sale price slightly above the mark and lower it slightly at intervals until you receive an offer.

Get Your Package Together

As soon as you receive your offer, you need to compile your package. Your package will include important documents, such as a letter of hardship, tax returns from the last two years and recent pay stubs. The bank will try and find anything to put off the sale. Do not give the lenders any ammunition.

When you sell real estate in a short sale, you will need to exercise patience. There will be quite a bit of negotiation between the bank, potential buyers and your short sale team. Buyers will come and go; however, do not get discouraged. A highly experienced team will make your short sale happen sooner or later, and you can then begin rebuilding your life.