HOW TO PRICE A SHORT SALE?

Short sale sellers who don't price their homes appropriately are unlikely to receive viable offers. That's because pricing needs to appeal to more than the buyer to ensure a short sale transaction will close. Pricing a short sale correctly involves choreographing a delicate dance between bringing in an offer and getting the bank to buy into that offer. Moreover, if a NOD or Notice of Default has been filed, time is of the essence. In that instance, there are only so many days left on the calendar before a short sale seller may lose the home to foreclosure. Price it wrong, and the home goes to the bank. That's one of many reasons why it's important to hire an experienced certified distressed property expert that has advanced knowledge and experience with short sales. The short sale price needs to be attractive to the following five parties: • The Short Sale Bank. Because short sales can take a minimum of 3 months to close from listing inception, the price should be based on pending or contingent sales, which will become the comparable sales at closing. Banks will generally accept an offer priced within reason of comparable sales. • The Buyer. Buyers that make offers on short sale properties typically want to buy under market; they want a good deal. Otherwise, buyers have little incentive to wait 60-90 days for a short sale to close. Sellers will catch a buyer's eye if the home is priced under the competition.