Short Sale Seller Mistakes to Avert

As an Orange County CA real estate agent working with short sales, I often see short sale sellers make serious errors that can readily be averted. Here is a brief list of frequent mistakes that I see and ones that you should avoid if you are contemplating a short sale for your home.

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1.    Waiting Too Long to Place the Home on The Market

. Much too frequently sellers may be in denial about their financial hardship and fail to quickly search for options to cure their situation. A loan modification could be the preferred option for many property owners hoping to stay in their property - if not approved by the lender, sellers require a solid alternate plan. In many cases, a short sale may be the best alternative, and sellers need to allow adequate time for their realtor to list and market the property and put forth potential agreements and short sale package to the bank. If your home is already projected for a foreclosure sale, there really may not be sufficient time to allow a bank to suspend the auction - in most instances time can be a seller's best asset or liability - so if a short sale is the best option don't delay.

2.    Making the Property Difficult to See and Sell. More often than not, sellers are unhappy to be selling their homes under less than ideal conditions and elect not to be very helpful with buyers/buyer realtors. This approach only consumes valuable time and could very well be the track to foreclosure. When a short sale is the most desirable approach, it is imperative to present the home in a favorable manner - it needs to be available to prospective buyers and maintained in reasonably good showing condition.

3.    Failing to maintain the property. It may be understandable that economic hardship has limited many seller's abilities to maintain their homes in excellent condition. However, there is no reason not to perform routine and basic maintenance to guarantee the home shows favorably to prospective buyers. Uncut lawn and green pools do not attract to buyers and will only result in difficulty in selling your property, or a reduced sales price which may make it a challenge to acquire bank approval to short sell the home.

4.    Delays in presenting short sale packages to the bank for approval. Much too often, sellers delay the short sale approval procedure by not getting prepared to submit the short sale application and agreements to the bank in a timely manner. Remember that as a short sale seller time is your greatest asset and liability. Lenders need sufficient time and a complete application to address the request. Buyers are depending on you and your agent to gain lender consent to the short sale in a logical timeframe. If short sale applications with supporting documentation is submitted in a timely fashion, and buyers are constantly updated with status, the odds of a successful short sale heighten considerably.

5.    Choosing the wrong short sale agent or broker to market your home. Short sales are much more complicated than standard real estate deals. They generally take much more time to complete and incorporate working closely with the seller's lender to acquire lender agreement for the sale. As a result a distinct skill set is required and short sale knowledge is critical.

If you are considering a short sale for your property, it is essential that you find legal and tax advice as well as consult with an knowledgeable short sale realtor in your area.

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