5 Common Mistakes When Making a Short Sale

There are several common mistakes that can occur in a short sale. Short sales are designed to transfer ownership of a property and have a bank agree to a sales price that is less than the remaining loan balance. This is often an alternative to foreclosure and is an easier process to deal with for both borrower and lender. While short sales can be beneficial for both parties, they are not without their problems. A short sale must be properly executed in order to avoid multiple problems. Here are a few common mistakes often made when doing a short sale.

1. Wrong Listing Agent

Getting the wrong listing agent involved in the process can hurt everyone. The short sale process can be very complicated, depending on the property. If you have an inexperienced listing agent involved, the property can go unsold for long stretches of time. The right listing agent will know how to navigate the process through to completion. Therefore, you should always want to work with a listing agent that has closed several of these transactions.

2. Wrong Pricing

Pricing the short sale has to be done very delicately. If you price it too high, no one will look at it. If you price it too low, people will think something is wrong with it and the bank will not be motivated to sell at that price. You have to find the happy medium and price it accordingly.

3. Inadequate Marketing

Many listing agents take the wrong approach when it comes to marketing a short sale. They mistakenly believe that price is the only factor in the process. Therefore, they put a cheap price on it and expect the herds of buyers to come flocking. In reality, you have to put a good price on it and market it just like you would any other property. Treat it just like a normal house being sold and you will have much more luck with the process.

4. Unnecessary Restrictions

Putting restrictions on when the property can be shown are no good for anyone. Many house listings say something like "No Showings on Sunday" or "By Appointment Only". While it might make it easier on the seller and the listing agent, it discourages people from viewing the property. You want your house to be available any day of the week. This will maximize the selling potential of the property and get more people to consider it.

5. Lack of Photographs

Shopping for a home has changed drastically in the last few years. Instead of driving around town looking for signs, most people just sit down in front of the computer and browse through the listings. Looking at the pictures on the MLS is how most people find the houses that they want to look at. Even if your house is priced great and has a great description, many people will never take the time to look at it if it does not have any pictures on the listing.