Increasing pressure to avoid increased foreclosure costs is prompting more homeowners to consider short sales: home sales that do not satisfy the debt owed on the property, but are negotiated anyway to the benefit of both seller and lender. Sellers should remember that these sales are treated as traditional home sales, and for that reason should do what they can to get the most from the sale. A few suggestions include marketing the home, keeping the property in good repair (living in it, if possible, helps with this), being flexible when showing it to prospective buyers and keeping the home insured. For more on this continue reading the following article from JDSupra.
Short sales are growing in popularity as lenders and borrowers are striving to avoid the foreclosure process. Because the market is flooded with homes for sale, it is imperative that the seller make their home more attractive to buyers interested in a short sale. Below are a few tips for the seller of a short sale home:
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- Market, Market, Market! A short sale is treated like a traditional sale of your home. Be sure to put a sign advertising your house in your front yard. Your house will be shown to potential buyers, so “market” it in every way possible. The rooms should be bright, clean and clutter-free. The front yard should have nice curb appeal. Research tips on how to make your home look spacious and inviting. The goal is to make your home the one property the buyer is willing to wait to get.
- Be flexible. Showing your home is a pain, but try to be flexible and allow buyers to view it as much as possible. It is worthwhile to have a lockbox so buyers can gain access anytime during the day.
- Stay in the home. A home typically sells better if it is fully furnished. However, if it is necessary for you to move out of the house, be sure to keep the yard maintained and leave the utilities on. You may also want to ask a neighbor to keep an eye on the property to make sure no vandals or squatters get into it.
- Maintain insurance. Most lenders require that you keep the property insured. If you fail to do so, your lender will add an expensive force place insurance policy to your account. Also, the lack of insurance could further delay the short sale.
- Be cooperative. Your short sale is likely to be more successful if you remain involved in the process. Try to respond to the lender’s requests as quickly as possible to keep the short sale process moving along.