Many FSBOs may Qualify as Short Sales

If you are selling your home on your own because there is not much equity in the home and you don't think you can afford to pay a realtor, you may be better of attempting a short sale if some or all of the following apply.

1. Have an agent give an objective valuation of the property to see if there would be any equity left after selling costs are subtracted. This is called a seller net sheet. A ballpark number of the selling cost is 7 1/2% of the selling price, you can use that as a rough starting point.

2. Are you overpricing your home because you feel you need to net a certain amount at the end of the transaction? This will not work in the current market, buyers are looking for deals and you are adding stress, frustration and wasting time. It is difficult emotionally to let go of an amount that your home may have been worth five years ago, but you need to bite the bullet.

3. Have you sat down and worked out a monthly budget for your household? This budget needs to show a sincere effort to minimize expense and cover monthly expenses with income. You will have to demonstrate a hardship in order to qualify for a short sale. Examples of hardships are job loss, medical emergency, divorce but are not limited to these things. You will generally write a hardship letter and the lender will determine if you are qualified for a short sale.

4. Agents and sellers in the past have avoided short sales because of the time and trouble that it takes to complete one. It was not unusually for a short sale to take six months to a year, or not even close at all and end up going to auction. Recently, some lenders have made a serious effort to streamline this process as they see imminent foreclosures piling up and ominous shadow inventory looming, the short sale process is gradually getting better.

Above all, talk to an agent to discuss your options. Try to find an agent that is experienced working with short sales. Short sale certifications include CDPE, Equator Certification and of course actual experience working short sales with different lenders.