Common Mistakes Being Made On Short Sales

I see a lot of agents making mistakes on short sale property valuations. Lenders will hire a ‘supposedly’ impartial third party to value the property for them.

Many of these people are evaluating 10 properties a day. Many of them are new and/or inexperienced agents just looking for a way to make a few extra dollars. Or, the agents may think that if they value the property high and it doesn’t sell at short sale but gets foreclosed on by the bank, that they will get the listing from the bank..hard to believe, but it happens! There is very little quality control and usually no one checks their work.

Because of that, I always try to meet them at the home when they are doing their  valuation-inspection. I explain the history of the property and discuss the comparable sales (and provide them with hard copies of the comps) and what price we feel it should sell for. The lender will take as gospel whatever value that person tells the bank the property is worth. If that value is more than the property will sell for, then the lender won’t accept the short sale and the whole deal may fall apart  and the home end up being foreclosed on.

Here are some  common mistakes that you need to make sure that your short sale agent avoids:

• One  mistake is to use the wrong comps. If your agent is not extremely knowledgeable about your neighborhood and all of it’s recent sales…this could be a big problem.
• The second mistake is not controlling the access to the property. The person evaluating the property should not be able to get access to the house without the agent knowing about it. Your agent must have all showings go through their office.
• A third mistake I see is the agent not treating the people valuing the property with respect. Short sale agents will be meeting the same people over and over. So, they must be punctual and professional when they meet them. They shouldn’t be forceful or pushy on the value….just helpful and knowledgeable.
• Lastly, the agent should be able to point out all of your homes defects and deferred maintenance items to the evaluator. It is extremely important that the bank knows of the exact condition of the property as this can have a dramatic effect on its eventual market value.

After the all-important bank valuation appointment, your agent should prepare a professional Comparable Market Analysis, then send a copy to the short sale negotiator.

Following these tips can mean the difference between failure and success of your short sale.

Thinking about a short sale? We have helped many homeowners in Palm Beach County short sale their property and get back on their feet.

Please feel free to send me an e-mail at ShortSaleInfo@thejacksonteam.com or give me a call on my direct line at 561.602.1258

When we talk, I will explain how the process works in detail and answer any questions you may have.

Thanks for reading… Steve Jackson.