“Avoid problems, and you’ll never be the one who overcame them.”
Richard Bach
As a homeowner considering a short sale it is important you understand the most common mistakes agents and homeowners make in this process. The CDPE agent that provided you this information has completed extensive training in the short sale process and in assisting homeowners who owe more on their properties than what they are worth and need solutions.
1. Property is Priced Incorrectly
PITFALL: This is the most common mistake made with all properties and the most common reason a listing expires and a property doesn’t sell.
SOLUTION: We will go through a detailed listing price strategy with you that will allow you to see exactly where your property should be priced based on the current condition, sales in your area and most importantly how much time you have left to sell.
Selling a home in a short sale is a combination of reducing the price of the home in a time-frame that satisfies the bank, while outracing the clock (that is moving towards foreclosure.) The strategy we choose depends on several factors in your market.
2. The Short Sale Proposal is Incomplete
PITFALL: This is one of the most common reasons why a short sale does not get approved. Most agents do not understand the short sale process and what your lender will be looking for.
SOLUTION: We understand this process in detail and will work with you to present a complete and cohesive proposal to your lender.
3. Inadequate Follow Up and Communication
PITFALL: If your agent does not follow up with everyone involved as your short sale goes through each threshold or step in this process you may not know that your file has been delayed and you again may run out of time.
SOLUTION: The right agent knows exactly how to follow up to ensure that your lender(s) issues are addressed in a timely manner and will make certain you do not have unnecessary delays.
4. Not Enough Time
PITFALL: It is critical that your agent understand the foreclosure laws in your area. They should be able to show you an estimated timeline. They should also know how to communicate with your lender and what to provide that in some cases can stall your foreclosure for weeks or months in order to let you negotiate a sale.
SOLUTION: Make sure you provide your agent accurate information as to exactly how many payments you have missed and any correspondence you have received from your lender. This will allow your agent to understand your situation and work to improve it.
5. Your Deal is Not Submitted Properly
If you do not follow the directions you receive for submission then you are expecting an over-worked, under-staffed department to go out of their way to handle your file. There is very little likelihood of this happening.
If you are instructed to fax your file, fax it and send a backup copy in the mail. If you are instructed to mail two copies, mail two copies. Once you have a contract, have gathered your information and completed your proposal you do not want your deal to fall apart because no one sees it.
6. The Buyer’s Offer is Too Low
PITFALL: Many agents will encourage you to submit any offer they get. The reality is that short sale is not the same as a fire sale! In order to have a legitimate chance at getting your deal approved you must have an offer that is more attractive to the lender than a foreclosure.
SOLUTION: The right agent will work with you to properly negotiate any offer that you receive to get ‘highest and best’ from each buyer so you are presenting the best solution possible to your lender.
An experienced agent will also manage a buyer’s expectations. When the buyer is left without understanding of the process, they often will not wait for the answer to their offer, which can be a longer time frame than a traditional sale.
7. The Buyer’s Contract is Not Strong Enough
PITFALL: In today’s economic climate, just because a buyer is willing to make an offer on a property does not mean that they are truly qualified to purchase. The reality is that a buyer needs to be preapproved for financing, closing funds need to be verified and their ability to buy needs to be confirmed.
SOLUTION: The agent that gave you this report is familiar with the details of exactly what must be verified in order to qualify a buyer to submit an offer on your property that has a chance at closing. Don’t risk this process with an uneducated agent who does not have these answers.
In summary
While these pitfalls may seem troublesome – the right agent can help you navigate your way to a successful closing. Don’t risk your financial future and the potential sale of your home with an agent who does not have all the solutions, call us today.
