Pricing of your Gainesville Short Sale
Pricing of your Gainesville Short Sale Pricing the property right will have a greater chance for it to sell. There is a strategy to pricing depending upon several factors. This will depend upon condition of home, last mortgage payment made, the short sale lender involved, foreclosure sale date and market conditions.
The main factor in pricing a home is if it is in active foreclosure and or how long the payments have been in arrears. Once a homeowner stops making mortgage payments the clock towards foreclosure starts ticking. This means you should start becoming more aggressive with your pricing strategy the longer time goes on when mortgage payments are not being made. Depending upon the condition, location and time line short sales typically sell anywhere from 5 to 20% below market value. You will need to check laws and regulations in your state. In Florida, once the home is past 90 days late the lender files for a lis pendens on the home.
If the house is not in foreclosure status and it is not past due with its mortgage, the home should be priced closer to market value with a price reduction strategy for it to go under contract. The lender will want to obtain maximum profit for the short sale and keeping a marketing history and price reduction worksheet to give added fuel to getting the offer priced approved once an offer is received.
As the short sale agent, it is important to understand short sales and the market conditions clearly. Many times short sales sit due to an improper pricing strategy.
Here are some of the pricing strategies to adopt:
• You may lower the price 25 – 30 days after the initial posting of the property in short sale. Depending upon how late mortgage payments are you may be reducing slightly every 2 weeks thereafter. It is important to note to have a bottom line range to stop so the home is not priced out of an acceptable range by the lender. The goal is to be in the ball park.
• How you price your home listing depends on the current market, the status of the house, and the community wherein it is situated.
• If the homeowner is not updated with its mortgage payment, it is advisable for a price reduction of 6% to 10% for $150,000and below, 5% to 10% for properties $200,000 to $300,000. Furthermore, for luxury properties, a bracket within $50,000 to $100,000 is maintained.
• If the property is on a foreclosure status, price it according to the current market value and lower the price around 10-21 days period until a proposal is made.
• If the short sale listing is not in danger to be foreclosed and the seller is paying his/her current mortgage, keep the prices high and choose the best offer if possible.
Have a tangible business plan of the range of listing prices you agree to take. Worst comes to worst, you would not end up in deficit with the short sale property you are working on. You need to include your time, hard work, and cash expenses. Deduct them to the commission you’ll get when the short sale will close. Planning ahead of time is a necessity so as not to build up emotional stress along the way.
You can have a fixed amount that will be basis for your time, effort, and expenses. The sum is the basis wherein you will not accept listings under that amount.
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Call Stephanie Anson today at 352-260-0153 for a confidential phone interview regarding your options.
Please seek legal advice. This information is for informational purposes only.
Contact Stephanie Anson, CLHMS, CDPE, SFR, Realtor®, Anson Properties LLC. Licensed Realtors® in Florida at 352-260-0153 to list your property for sale or to purchase a property in Gainesville, Archer, Alachua, High Springs, Waldo, Keystone Heights, Hawthorne, Melrose, Cross Creek, LaCrosse, Williston, Earlton, Ocala, Micanopy, Newberry, Kanapaha, Haile Plantation, Duck Pond and the rest of Alachua County Florida, Orange County Florida and Seminole County Florida. We are accepting referrals. Gainesville Short Sale Agents