Should I short sale my home?
Brenda: The majority of homes for sale on the market are still short sales in East Orlando. Many more short sales are anticipated to come on the market this year and next year. As of June 17, there were 217 active listings in 32828, 16 of which are bank owned, 97 are traditional resale and 104 are short sale listings. Almost 48 percent of all active listings in 32828 are short sales! Short sales have really become the new “norm” in this market. If a short sale is handled correctly with a very experienced agent, it can be a less painful process for the seller and the buyer. Pamela, you work with numerous clients who buy short sales. What advice do you have on buying short sales?
Pamela: The best advice I can give my buyers is to be patient. The process of looking at short sales is the same as when we look at traditional resales and bank-owned homes. As with bank-owned homes, the sale is “as is”, which means that a buyer has a right to inspect the home but no repairs will be made by the seller. The difference begins when buyer and seller agree to a contract. This is where the true "short sale" process begins and an experienced facilitator comes into play. Karen R. Spell, P.A., is our facilitator and she is also an attorney. Brenda, what is the process for selling a short sale from the listing side?
Brenda: As a listing agent in a short sale, I meet with the sellers and explain the short sale process in detail. I prepare a market analysis on my seller’s home to price their home correctly for the market so there will be fewer issues with the appraisal and the seller’s bank. The sellers often have two and sometimes three lenders on their homes. I work with Spell as well as her staff to help facilitate the offer with the seller’s bank/lender. Pamela, what are the main issues a buyer can face in a short sale?
Pamela: The main issue is again, patience. A buyer needs to go into a short sale knowing that it will take time to facilitate the short sale. It may take from three to eight months. There is no way to predict the time frame, unfortunately. Most of the time, buyers drop out of a short sale because they continue to look for homes and find another home they like or decide to settle for something just to get in a home faster. Brenda, what happens when buyer and seller agree to a contract?
Brenda: Once I get an offer acceptable to my seller, the seller signs the offer, then the work really begins on the short sale. I submit the offer to Spell who then submits the offer and all the paperwork to the seller’s banks/lenders. Then it’s a waiting process and a constant follow up and communication process with myself as the listing agent, attorney I use (and/or the attorney the seller may have hired), seller, buyer and/or buyer’s agent. The seller is involved and needs to stay involved in the short sale process with their bank/lender. But really it is the listing agent, such as myself, who stays on top of all parties involved to make sure the short sale goes through successfully. It truly is a team effort and experience on the listing and buyer side really can make the difference in how a short sale turns out.
Pamela: Yes, I agree. One of the first things the buyers’ agent should do in a short sale is call the listing agent and ask questions about the short sale, such as how many loans and which banks are involved. Has the process begun yet? Is there an attorney or agency who’s facilitating? If so, is there a fee to my buyer? The best way to find out about the short sale process is to join the attorney and the agent for a question-and-answer hour about short sales. Please come and ask all of your questions at a free seminar our offices are hosting on Saturday, July 9 from 10-11 a.m. at 3680 Avalon Park E. Blvd., #120, Orlando.
-Brenda Kolbrich
Keller Williams Advantage Realty II
407-963-6876
toporlandohomes.com
-Pamela Rehbein
Keller Williams Advantage Realty II
407-488-4078
homeforyourheart.com