Houston TX 77389 Shortsale

Listing a short sale is a little like venturing into the wild, wild west. There’s only a little order, lots of imposters, and laws are broken without much penalty.

Real estate agents bring a little stability to the transaction, but a short sale’s success depends on a variety of variables. This type of transaction is constantly evolving; however there are a few things that remain the same, and that every agent needs to know when working with short sales.

Market Value Matters

Short sales sell for market value. That’s right. A bank will typically agree to a short sale if the numbers make sense. Banks understand that homes need to appraise. Banks also need to mitigate their loss.

Listing a home for well below market value is not the best strategy for getting a short sale accepted. Sure, you may get plenty of offers, but if the bank won’t accept any of them you end up having wasted a ton of energy, not to mention paper, and facing quite a few angry potential buyers.

Banks are no longer in the business of giving away houses. If you send the bank numbers that make sense, you increase your likelihood of a successful short sale closing by 90%.

Only Real Hardships Get the Help

I’ve lost count of the number of times potential sellers have told me the only reason they are pursuing a short sale is because everyone else is doing it. Purchasing a house during the housing boom is not a legitimate hardship. Purchasing a house during the housing boom and being unable to pay your mortgage is a hardship.

Strategic default is never a good idea! Banks actually analyze short sale sellers’ hardships, and most center on the economy, so the bank is going to make sure that a short sale is in their own best interest. Acceptable hardships include medical issues, divorce, disability, significant loss of income, death, unemployment, and relocation.