CA Short Sale: Short Sales and You, Selling in California

February 8 (FreeRateUpdate.com) – Here in the Inland Empire of Southern California short sales have been a hot trend since the economic downfall in 2007. Since then agents have claimed to be specialists, swearing they can help homeowners. There are short sale agents who have a talent for successful short sales in your area. The trick is how to spot them. As a homeowner considering short sale in California you need to be aware that Home Equity and multiple mortgages can come after you for the loan even after a short sale. You need to know what you can and cannot do in a short sale and how to effectively sell it!

Here are some of the common mistakes sellers make with short sales:

Short Sale Mistake #1: Priced Wrong

Short sales that sell are priced appropriately.  The price should be attractive to the following parties: And remember to communicate with all 5 parties in the transaction at all times during the short sale process. This is one way agents lose their buyers in a short sale is by lack of communication.

• The Short Sale Bank
• The Buyer
• The Buyer’s Agent
• The Seller
• The Buyer’s Lender

Short Sale Mistake #2: Inexperienced Listing Agent

Sellers should find out how many short sales a proposed short sale listing agent has actually closed apart from the number of short sales the agent has listed, this is important as the major obstacle for the short sale agent is the negotiations with the mortgage banks.  Unfortunately there is a large number of agents claiming to be short sale specialists who don’t know how to talk to the bank at all much less negotiate pricing and terms.

Short Sale Mistake #3: Bad Marketing

Some agents believe that price alone will sell a short sale, just because it is a short sale doesn’t mean it doesn’t deserve the same amount of attention as a standard sale! Not only does the price need to be reasonable, but the home deserves the same type of treatment as any other listing actually it needs a little extra attention becuase some buyers are put off by the sometimes lengthy process of a short sale.

Short Sale Mistake #4: Showing Restrictions

If the listing requires an appointment, a buyer’s agent might not choose to show that home in favor of a listing without appointment restrictions. Always be able to show the home, make arrangements with your realtor to be able to show the home if you aren’t there. You must be able to have a trustable working relationship with your realtor.

Short Sale Mistake #5: No Photographs

Submitting a listing with no photograph at all — is like saying you don’t want buyers. Buyers aren’t likely to return, you need to have a minimum of 4-5 photos: front of the house, kitchen, backyard, bedroom either living room or bathroom, bonus room something to make the house stand out.  Sellers need to think like buyers

#6: Poor Property Condition

Sellers need to prepare the home for sale and keep it in nice condition. If toys are scattered about and the kitchen sink is filled with dishes, buyers can’t see past the mess.  Understandably short sale sellers have no extra money to put into upgrading the home, but since they are going to be moving out eventually it is a good idea to start packing away unneeded items and storing them neatly in the garage or renting a storage unit.

#7: Uncooperative Sellers

Sellers need to submit required documentation to the bank in a timely manner. If the package is incomplete, the bank won’t process the file, and that will delay approval.   Many banks are revising their required documents and if it is a lengthy process they will ask for updated information.  Sellers need to know this upfront so they are aware that they can’t just turn in the first sheet and be done with it.  They can have ongoing participation and need to keep in mind that the mortgage lender won’t work for your unless you are working for them as well.