Best Practices for Dealing with Orlando Short Sales
Orlando Short sales are distressed properties in that sell, by mutual agreement between the buyer, homeowner, and the mortgage co, for less than what is owed on the property.
If you’re a seller and you need to stop an Orlando foreclosure on yor hoome, this a great way not only stop the foreclosure, but to get out of debt with your lender, and many times even walks away with cash from the closing. The best part is that it doesn’t cost you anything so you have nothing to lose!
That’s not all… you can continue living in your house mortgage free while the short sale is being processed which can be for up to 2 years in some cases [depending on the lender].
For buyers, it’s a great way to obtain a real estate investment. Yes, they can be tricky to find and obtain, but are worth the work… sometimes.
Here are 4 tips for short selling in today’s real estate market.
1. The short sale realtor
The final price for a short sale is determined by the lender, not you or the buyer. Many buyers have learned this the hard way because they submitted an offer that did not come anywhere close to the bank’s asking price. This doesn’t mean you have to lock yourself into the asking price, but you do have to start from there and work your way down. Doing this will increase your odds of the bank accepting your bid.
Unfortunately, if you have an Orlando realtor that is not experienced in doing short sales then you have a big problem. The realtor has to be willing to negotiate with the bank and be ready to show proof as to why the offer is what it is by doing a market analysis on the property among other things.
An Orlando Short Sale Expert will go back and forth with the lender several times before coming to a mutual agreement that works for all parties involved. With some lenders like B of A we’ve had short sale files that have taken over 2 years to close. If your Orlando realtor is not willing to be persistant and stay the course with the lender for as long as it takes, then you probably hired the wrong Orlando real estate agent for the job.
2. Be careful of going too low
Another tip is to avoid going too low when you submit your offer. A bank has to balance the benefit of having a buyer take the property off of its hands without having to go through foreclosure and spend more money versus accepting far too little for the property and missing out on a lot of money. If your offer is too low chances are that they won’t accept it. However, a good realtor will guide you through this process as well.
3. Have your Orlando agent check comparable homes
This one should go without saying. You have to know what the true value of the property is, as well as how much, if anything, you plan to spend on repairs or upgrades. If there are substantial repairs that need to happen, this can be great for justifying your offer. This is why you should work with an experienced realtor so that he or she can you through this process.
4. Have your Financing Ready
When you’re searching for an Orlando short sale, make sure that you have your financing in place and ready to go. If your realtor shows you a property that you love, chances are that someone else loved it to and usually the first person to submit a solid offer to the bank will get their offer accepted. If you’re a cash buyer then your offer stands an even better chance to get accepted.
Remember, Shortsales take time and you have to be patient . If the bank rejects your first offer, which happens a lot, address their concerns and make them a counter offer. Thousands of Orlando properties that were purchased would not have been bought if the buyers sdid not stay the course and stick it out. Considering the stabilizing market my advice to clients is to send in your highest and best offer from the start. I’ve had clients lose their dream house over a couple thousand dollars and every single one has wished that they would’ve gone up that extra two or three grand.
