We’ve had a lot of new homeowners call us lately for assistance with short sales. We assign these listings to the more experienced agents we’ve worked with. We’ve worked with agents from Keller Williams, Remax, Century 21, Weichart, and many others. On occasion we have to work with a new agent. We work with the new agents if they have questions or want to know about the process. This past week I had two separate agents ask me the same question. “How do I know what to set the list price at? How can I tell what the bank wants to NET?”
This is where their inexperience shows a bit. It’s ok, because we all had to start somewhere.
On each short sale we mitigate, we have the agents do a thorough market valuation. They provide comps and we ask them to provide a high and low price, based on similar solds. We usually ask them to take a look at the local market for the amount of REO’s and short sales. MOST times, when the lender does their valuation, they cannot look at sold comps for REO’s and Short Sales, however, if you want a TRUE comp you HAVE to look at similar properties in that category. There are some properties that are extremely difficult to comp, but we all work together to get an idea of what the property will sell at.
The key to remember is WE or YOU the listing agent have control over the list price…NOT the bank (unless you are doing a HAFA short sale) – It’s important that YOU show the bank what the property is worth and not the other way around. There are MANY times the lender will send out someone to come up with a value for the property and their “opinion” does NOT reflect the local market or condition of the property and then you have an uphill battle of trying to prove why your offer actually supports recent sold comps. Take control first. You need to set the list price. Once you can show market history on the property, it shouldn’t be hard to prove to the bank why your valuation of the property is the accurate one.
Maryann Little, Managing Member
Short Sale Mitigation, LLC