5 Myths About Short Sales
It’s a troubling time for a lot of folks. Tough times hit and suddenly families that were living the powerful dream of home ownership find themselves struggling to
make ends meet and overwhelmed by a mortgage they can no longer afford. For some anxious homeowners, fear, stress and shame have kept them from reaching out and finding out the very real options available to help them once again sleep easy and find peace of mind. If this sounds like you or someone you know – please take a look at the real truth behind five of the most common short sale and foreclosure misconceptions:
1. I’m all alone in this. Nothing could be further from the truth. Our shifting economy has put hundreds of thousands of families at risk of losing their homes and afraid for their financial future. The good news is there are many more resources and options available to you than you even imagined, and with the right short sale specialist on your side, you too can find answers to your questions and an opportunity to regain peace of mind and financial stability.
2. The bank wants my home. The banks do NOT want your home. In fact, in many cases, with the right advocate on your side, they will do everything they can while working in the perimeters of their legal restrictions to help everyone find a solution other than foreclosure that can be a win-win for all involved. Lenders across North America are already overwhelmed and under fire to move the foreclosed properties already in their inventory. They do not want to add yours to the mix. What’s important to note is that every situation, every family, every individual has a unique set of circumstances that needs to be properly diagnosed and “treated” for its unique qualities. A trained, designated short sale specialist can help you sort through your current situation to determine your best course of action.
3. I’ll have to file bankruptcy. While in some cases, depending on the level of debt and distress, bankruptcy is the smartest alternative, it’s certainly not in EVERY short sale case. In fact, many homeowners, once they’ve consulted with a short sale specialist and a team of professionals (including CPA, tax attorneys, etc.) find that their situation is not nearly as dire as they thought. Once again, it’s best to connect with a seasoned, TRAINED professional so that you can truly get a big picture view of what can be done to get your family to a better financial place.
4. It’s going to cost too much to hire a REALTOR®. It doesn’t cost YOU anything to utilize the necessary services of listing your home with a REALTOR® and short sale specialist and you are not obligated to pay for repairs to the home. When the lender approves the sale, they are also approving the costs of the sale, including the agreed upon sales commission and the home is sold “as is.”
5. I can call just any agent. While that’s true – you can – what’s important to know is that just like in any profession, not all agents are created equal. The current economic climate has created such an abundance of short sales and foreclosures that in order to truly get the best possible advice, help and end result for you and your family – you really do need an agent who has had the specialized training, the systems in place and the experience to take you all the way through the process – from diagnosing your particular situation – to negotiating with the lender – to getting your home sold and your family on with your future. Look for agents with special designations such as CDPE or America’s Home Rescue. They’ve put in the time, energy, expense and experience to ensure that they have EVERYTHING a distressed homeowner needs to make the best possible decisions.
If you’re facing tough times and are not sure what your options are let us know. We have powerful referral sources you can trust to give you the best possible advice and guidance for your situation. We’re here to help.
What’s My Home Worth?
Determining Fair Market Value
One of the first things a real estate agent does when helping a homeowner determine list price for their home or to determine if a house a buyer is interested in is priced at fair market value is to use comparables to see what other similar homes in the area have sold for.
It’s not always apples to apples — but experienced agents know that some common sense factors such being in the same neighborhood, school district, house size, property size, age of home, and similar features all play a part in separating the ’good comps’ from the bad.
Other factors play a key role as well. It’s not enough to have similar home — timing plays a big factor in the credibility of the comp. House A and House B may be nearly identical — but if house A sold two years ago or even two months ago in a volatile market — that price point is more than likely not still viable. So a wise agent uses all the tools at their disposal to come up with the closest possible comparison, and determine the fairest market value mapping out factors such as the ones above; plus date sold, number of bedrooms, number of bathrooms, amenities such as pools, fireplaces, etc. all play a role.
One thing agents do have to caution home sellers on when choosing price is the dollar value they put on the improvements they’ve made. Some are wonderful, upgraded kitchens and bigger bathrooms, etc. Some are more individual tastes. Ultimately the market price of a property is determined by the market. What a buyer will pay in that market at that time.
If you want to know what your home is worth – give us a call at 727-787-2299. We can recommend a real estate professional that can help you right away!