How To Price Your Naperville Short Sale Home | http://ryanhillrealty.tumblr.com/post/82808361065/how-to-price-your-naperville-short-sale-home | http://www.ryanhillrealty.com/ | Find out how many parties are involved on a Naperville short sale transaction. Make transaction easy with a certified Naperville short sale agent. If you have questions or feel you may qualify for a Naperville short sale, please contact certified Naperville short sale agent Teresa Ryan on 630-276-7575 for a free consultation.
2. After you have decided that a
Naperville short sale is your best
option to avoid foreclosure, one of
the first things you should do,
together with your Naperville short
sale agent, is to come up with the
right price for your Naperville short
sale home.
3. Pricing a short sale property is not as easy as
it sounds. You, the seller, may be tempted to
price your home too high. You run the risk of
not getting any offers if your property is priced
way above market values. It may also be
tempting to list the short sale at a low price to
sell it quickly. If the price is too low, the
lender may not approve the short sale since
they are already taking a loss on the property.
4. How do you choose an
appropriate listing price
for your Naperville short
sale home?
5. 1. Work with your Naperville short sale agent.
At this stage, you hopefully have found the right
Naperville short sale agent with extensive
knowledge and experience in short sales. Your agent
will help you determine the best price for your
Naperville short sale by evaluating your home and
looking at comparable sales. Comparable sales are
the recent sales in your neighborhood during the
previous 6 months, which your agent will use to
come up with a reasonable selling price for your
home.
6. 2. Look at the current market.
Your Naperville short sale agent will do a comparative
market analysis (CMA) to analyze the sales price of recent
sales of similar homes in your neighborhood. They will use
this as a basis to determine the best price of your home.
The listing agent will also prepare a broker’s price opinion
(BPO), which is an agent’s personal evaluation of the value
of the home based on its condition, current market
condition, and recent sales in the area. The listing agent
provides the BPO for the lender’s use in determining
whether or not to approve the short sale offer.
7. 3. Make sure the listing price will
be attractive not just to the
buyer, but to all the parties
involved in the short sale.
The price of your short sale home
must be attractive to the following 5
parties involved:
8. ● The Lender. Lenders will
usually approve the offer
price on short sales based
on comparable sales in
the neighborhood.
9. ● The Buyer. Buyers of Naperville short
sale homes are looking for great deals,
otherwise, these buyers wouldn’t have
any incentive to wait for 3 months or
more for a short sale to close. If your
Naperville short sale home is priced a
little below the competition, it will be
more attractive to buyers.
10. ● The Buyer’s Lender. The buyer’s lender will
usually have their own appraisal done on the
Naperville short sale home to determine its
market value. The home should appraise
within the value of comparable sales in the
neighborhood. If the home is priced higher
than the appraisal, the buyer would need to
cover the difference between the appraisal
and the approved short sale price or back out
of the deal altogether.
11. ● The Buyer’s Agent. Short sales are not
usually a favorite with buyer’s agents
since they earn lower commissions and
the deals take longer to close compared to
traditional real estate transactions. The
short sale’s listing verbiage has to give
the buyer’s agent an assurance that it’s
going to be worth his time and effort.
12. ● The Seller. Some short sales are subject to
deficiency judgments, where lenders pursue the
buyer for the shorted difference. With the expiration
of the Mortgage Debt Forgiveness Act in January
2014, sellers may now be subject to taxes from the
forgiven debt (which is considered as taxable
income). This means sellers need to get the highest
price possible for their short sale homes to cover all
these expenses. This does not mean you have to
start with a high price right away. A short sale that
is priced just right will attract multiple offers and
start a bidding war, which will gradually hike up the
short sale listing’s price.
13. It may seem an impossible feat
to appeal to all 5 parties
involved in a Naperville short
sale, but with the help of an
experienced Naperville short
sale agent, it is possible.
14. If you feel you are qualified for a
short sale and need help in pricing
your home, please contact certified
Naperville short sale agent
Teresa Ryan on 630-276-7575 for
a free consultation.
