Major Mistakes Of Short Sale Selling Made By Sellers

mistakeSometimes short sale sellers consider that it is easy to make the short sale selling mistakes. In fact the process of short sales are complicated which if not handled properly can be a cause for the sellers to lose their home through the proceedings of foreclosure. Mostly it is to be said that the best days to own a boat are that day when we buy the boat and the day when we sell it. But that’s not true in all cases because when it comes to home ownership then unless or maybe you live on a boat. The best days in home ownership are those days when homeowners buy a home and then all the way through until they decide to sell. A lot of homeowners feel bad when they sell their house. The eyes of homeowners remain swelling with tears until the ink is dry on the listing agreement. And it is common for sellers to be very emotional about their homes because homes hold treasured memories and homeowners developed relationship with their homes.

Here are some of the common mistakes sellers make in short sale selling;

Short sale selling mistake 1: Home is priced wrong and too high

Some of the short sales are too high, some are too low and some are priced just right and appropriate. The short sales that are selling should price appropriately and should be attractive to the following parties;

  • The Short Sale Bank
  • The Buyer
  • The Buyer’s Agent
  • The Seller
  • The Buyer’s Lender
  • The defeated home selling mistake that a seller can make is hanging a wrong price tag on a home. If the home is priced too high then buyers would not look at it. If the home is priced low then the sellers will worry that they will not be able to get the profit.
  • To sell a home pricing is an art. The part of the market value is based on comparable sales but the other factors consider are market movement, demand, the location of home and condition.
  • If the home is overpriced then the buyers might submit the lowball offers which tend to result in an immediate offer rejection.

Short sale selling mistake 2: Inexperienced listing agent

Specifically in the falling market those agents who have little business are attracted towards the short sales like grasshopper to a flame. Before starting the short sale selling the sellers should find out that how many short sales has been closed by a proposed short sale listing agent apart from the number of short sales the agent has listed. If many of the agent’s listings have been on the market for more than 90 days without an offer then there is something seriously wrong. Agents who succeed in this business have a minimum of two years of experience negotiating with short sale banks.

Short sale selling mistake 3: Bad marketing

Some agents believe that pricing alone will sell a short sale and they persuade sellers to place a humorous price tag on the home. After that the agent purposely refuses to adequately market the home. The price of home is not only need to be reasonable but the home deserves the same treatment like other listing. Short sales should be exposed to the widest pool of buyers which means putting that listing on all of the major websites and also includes direct mail marketing and networking.

Short sale selling mistake 4: Showing restrictions

The agents of buyers bless their overworked and tired hearts sometimes will take the path of least resistance. If the listing agent requires an appointment then a buyer’s agent might pass over that home in the favor of a listing without any restrictions of appointment. When the buyer’s agent calls to announce a shoeing then the response should be “come on over. We are ready”.

Short sale selling mistake 5: No photographs

If a listing is submitted to the MLS without the multiple photographs or no photograph at all then it like hitting the door in the face of buyers and then buyers are not likely to return. A listing with missing photographs sends messages that mean nobody cares if the home sells and there is probably something wrong with it.

Short sale selling mistake 6: poor property condition

Short sale homes mostly benefit greatly from the home production. Sellers need to prepare the home for sale and keep it in perfect condition. If beds are unmade, toys are separated and kitchen sink is filled with dishes then buyers cannot see past the mess. As well as some of the buyers are worried that if the home is in disorder during a showing then the sellers trash it upon vacating.  

Short sale selling mistake 7: Uncooperative sellers

Sellers need to submit the required documentation to the bank in a timely manner. If the package is incomplete then the bank would not process the file and that will delay approval. If a seller refuses to submit the personal financial information and reasonable hardship letter then the seller will not qualify for a short sale.