In the current market many homeowners are finding themselves faced with foreclosure proceedings. With the hope of catching-up the delinquent payments dwindling the only option left often becomes selling the home…quickly.
Many areas have seen home values drop so that sales prices will not cover the loan balance. Don´t despair.
Your lender may be willing to work with you on a short sale transaction, i.e. you can sell the home for current market value but the sale is lender approved as to what they will accept for a pay-off of the loan. If a short sale offer is submitted for your home your lender might be willing to delay any foreclosure proceedings.
Valuing your home
For a fast sale it´s important to price your home right. How do you value your home? Difficult as it is you need to stop seeing it as your home with all the memories and emotions that may be attached and step back to look at it as a buyer might.
Start with a "market analysis". Compare your house to houses in the area with similar characteristics:
Similar square footage, number of bedrooms/bathrooms Similar features (fireplace, pool, etc.) Within one mile of your home Similar year built Sold within the last 6 to 12 months
Many real estate agents offer a free market analysis of your home. Ask for a list of all the comparable listings in your area. There are also many websites that will prepare a guesstimate as to the value of your home.
Shoot for a bottom line price
An accurate listing price is a necessity when looking for a prompt sale. There probably isn´t a lot of time for negotiations .
Look objectively at any necessary repairs, get estimates to make those repairs and subtract their cost from the market value.
Also subtract the amount of closing costs from the market value of your home. A real estate agent can probably help you determine this figure for your area (closing costs may amount to at least 3-6% of the sale price of the property).
After subtracting the costs of repairs and closing costs from the market analysis you have a listing price.
For the actual sale of your home you´ll want to engage a Realtor savvy in distress sales. A short sale is more involved than the usual sale and you´ll be glad to be able to fall back on the Realtor´s knowledge.
© 2008 by Lynnette Phillips
Many areas have seen home values drop so that sales prices will not cover the loan balance. Don´t despair.
Your lender may be willing to work with you on a short sale transaction, i.e. you can sell the home for current market value but the sale is lender approved as to what they will accept for a pay-off of the loan. If a short sale offer is submitted for your home your lender might be willing to delay any foreclosure proceedings.
Valuing your home
For a fast sale it´s important to price your home right. How do you value your home? Difficult as it is you need to stop seeing it as your home with all the memories and emotions that may be attached and step back to look at it as a buyer might.
Start with a "market analysis". Compare your house to houses in the area with similar characteristics:
Many real estate agents offer a free market analysis of your home. Ask for a list of all the comparable listings in your area. There are also many websites that will prepare a guesstimate as to the value of your home.
Shoot for a bottom line price
An accurate listing price is a necessity when looking for a prompt sale. There probably isn´t a lot of time for negotiations .
Look objectively at any necessary repairs, get estimates to make those repairs and subtract their cost from the market value.
Also subtract the amount of closing costs from the market value of your home. A real estate agent can probably help you determine this figure for your area (closing costs may amount to at least 3-6% of the sale price of the property).
After subtracting the costs of repairs and closing costs from the market analysis you have a listing price.
For the actual sale of your home you´ll want to engage a Realtor savvy in distress sales. A short sale is more involved than the usual sale and you´ll be glad to be able to fall back on the Realtor´s knowledge.
© 2008 by Lynnette Phillips
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