What is a short sale? It is when a seller’s bank is willing to accept a discounted price to clear out an existing mortgage. Homeowners do not need to be in default for their loan to qualify for a short sale.
They have become very popular due to the financial hardships experienced by homeowners who can no longer pay their mortgages. Instead of having the banks foreclose their properties and ruin their credit, the homeowners opting for a short sale.
In fact, most of the banks will consider short sales if the seller is current but the value of the home is significantly less than what is owed. Taking advantage of the great deals on short sales is a very good idea, but first, you need to hire a real estate agent.
It is a very good idea to look for a real estate agent to get the short sale approved and find buyers for the house. The agent will answer your questions and help you steer through the process from the beginning to the end.
The agent will also help make the daunting and laborious process of paperwork easy and ensure that it gets approved by the lender in a shorter period.
A licensed real estate agent will also perform their duties with the best interests of the seller in mind as they are bound by certain fiduciary responsibilities and their activities are regulated by the state’s real estate commission.
Below are some of the things you need to consider when hiring a short sales real estate agent.
Look for someone with short sale experience as these homes are much different than traditional sales. A short sale can also come with all kinds of additional steps and delays if you don’t hire a qualified agent. Find a real estate agent who is certified CDPE to help navigate murky waters.
Experienced agents have specialized training in the short sale process and the issues that help sellers avoid a foreclosure. Choosing an agent who is not versed in this process usually leads to lags in the sales process as an inexperienced agent will spend time knowing the forms that should be filled out or fill the forms improperly.
Interview the agents
Before making your final decision, you need first to interview several agents. This will help you find somebody you are comfortable working with, who you are sure has your best interests at heart and one with knowledge of the neighborhoods you are looking into.
Negotiations will run much more smoothly when your agent knows the appropriate comps to support your home value. Their particular area of expertise should also fit the property you are trying to buy or sell. You want to hire someone who is an expert in short sales and not someone who will learn on the job.
Getting a short sale approved can be a very difficult and time-consuming especially for someone who is not an expert. This is why it is critical to ensure that you hire a real estate agent who specializes in short sales.