About West Palm Beach's Worthington

Step #5 of The 5 Steps to Listing a Successful Short Sale

Step 5: Short Sale Pricing Strategy

Pricing a short sale, including the subsequent pricing reductions, is the most important factor in getting a contract and having your short sale approved. The reality is, the short sale probably needs to be the lowest comparable property in the neighborhood in order for a buyer and buyer’s agent to cooperate. Additionally, in the case of a short sale, the buyer’s agent needs to be enticed to not only show the property, but to cooperate with the process.

There are several crucial factors you need to consider to price the property correctly, including:

Fair market value

Time left before foreclosure or pre-foreclosure

Days on Market

Property Condition

Amount Owed on the Property

Steps 2,3 & 4 of The 5 Steps to Listing a Successful Short Sale

Step 2: Take Pictures, Two Sets

When you are at your initial appointment with a short sale seller, you need to take photos the same way you would with any other listing, only you need to take two sets.

The first set of pictures is the one you would normally take for marketing: front of the house, back yard, kitchen, living area, bathrooms, etc. The second set should include specific pictures of any damage to the property or repairs that it needs. These should be as detailed as possible. Use a Photo Log to help ensure you keep everything in order.

Step 3: Damage and Repairs, Record the Details

As you take pictures of the property, complete a Repairs and Damage Form. This will be very valuable to you later when you begin negotiating with the bank. You also don’t want to have to make repeated, unnecessary trips to the property, so you should aim to accomplish as much as possible on the first visit. Go room by room and note everything.

Step 4: Initial Title/Lien Search

We recommend you have an initial title search done on every distressed (or otherwise) property you list. For a short sale, this is especially important, because if you have liens, fines, code violations or other clouds on the title, you need to see if they can be removed or negotiated immediately.

The 5 Steps to Listing a Successful Short Sale

Step 1: Complete 80% of the Paperwork at the First Meeting

You may have heard horror stories about the paperwork required for a short sale. The good news is, the Certified Distressed Property Expert (CDPE)® system will help you complete 80% of the paperwork on your first listing appointment!

By this time, you should have already pre-qualified the seller and determined that they are eligible for a short sale. You’ll need to review and get the seller to sign the following forms:

1. Signature Authorization – Recommended for all transactions (distressed or not). This should be sent to the mortgage company immediately after the listing appointment.

2. Short Sale Disclosure – In a short sale situation, this is mandatory.

3. Hold Harmless – In a short sale situation, this is also mandatory.

4. Homeowner Property Checklist – Remember, the property has to sell. Include suggestions for getting the property prepared on the Homeowner Property Checklist.

5. Homeowner Document Checklist – Before you leave your clients’ property, you need to leave them with a list of documents they will need to have ready for you. The documents need to be current, meaning if you list in January and don’t have an offer to negotiate until April, you will need documents for the time period immediately preceding the offer, not the listing (February and March).

6. Homeowner Financial Worksheet – This form is what lenders use to determine whether or not your sellers can pay their mortgage, so be sure that it is complete and that it shows a deficit.

7. Listing Addendum – Do not list a distressed property for less than seven months, and specify scheduled price changes in your listing agreement.

8. Hardship Letter – This explains to the lender what has happened to cause your client to be unable to continue making mortgage payments.

Look for Step 2-5 to Follow:

Is Your Mortgage out of Balance with your Budget?

It can happen quickly.

An expensive car repair, an unexpected hospital visit, a missed week of work – just a few little things and the life you’ve worked so hard to build can feel like it’s tipping dangerously out of balance.

Once the scales turn against you, it can feel like it is impossible to ever tip them back in your favor again. When your financial problems reach the point where they threaten your home, it is difficult to manage the stress. Sometimes it is even difficult to force yourself to seek help.

As a real estate professional who has earned the Certified Distressed Property Expert (CDPE) designation, my mission is to provide financially-challenged homeowners with options to foreclosure, ensure that they steer clear of scams, and help navigate them through the solution that best meets their needs.

Choose to face the challenge with a professional on your side.

I can help you realign the balance in your financial life and tip the scales back in your favor. Call or email me and schedule your free, confidential consultation. We can work together to make sure you end up ahead.

Worthington West Palm Beach Florida Real Estate - Homes For Sale

Worthington is a exquisite gated community located in West Palm Beach Florida. Major shopping, dining and entertainment are just minutes away. Homes for sale in Worthington also has easy access to the Florida Turnpike.

Worthington is an enclave of Luxury Homes that were built by Lowell Homes in 2005. There are a total of 81 homes with living square footage ranging from 3,024 uup to 4,415. There were a total of four different floorplans built in Worthington and every home has a two car garage. Two beautiful lakes and a preserve are within the gates along with a jogging trails and private park.. Home sites are also very private and oversized in Worthington.

For more information about Worthington and West Palm Beach Florida Real Estate visit: Worthington Real Estate