Following the crash in 2008, many agents have done anything and everything they can to avoid short sales. However, short sales are largely misunderstood, and can actually be a great option.
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After the market crash in 2008, the term “short sale” was heard more and more often within the real estate market. Due to a lack of understanding, agents tended to avoid short sales at all costs.
Now, a decade later, things are much better for both buyers and sellers. Short sales, however, are still a part of our market.
Here to talk with us today about that very topic is Jason Sanseverino of My Closing—our group’s go-to listing company. Since My Closing specializes in short sales, I brought Jason in to help explain a little bit about them.
A short sale is a type of sale in which the net profit doesn’t cover all of the real estate needs. To determine if a seller qualifies for a short sale, the homeowner must have faced a hardship which has made them unable to make the mortgage payments.
Some typical hardships include divorce, illness, the death of a borrower or immediate family member, reduction of income, excessive obligations, and also forced or military relocation.
These are all hardships that are seen as qualifiers for a short sale.
But what happens if the seller has surplus funds? Unfortunately, this means they likely don’t qualify for a short sale.
A short sale can be a win-win situation for both buyers and sellers.
Sellers who do qualify for a short sale, though, won’t have to worry about typical closing costs when they work with My Closing.
Things like Realtor commissions or real estate taxes will all be included in the short sale. In fact, qualified sellers may even receive money from their property through their lender as a relocation incentive.
Buyers, however, should expect traditional transaction costs. In short sales, buyers might be exposed to certain additional expenses including HOA bills. However, My Closing will do a complete title search in order to eliminate any of the surprises. This will allow us to notify buyers up front.
In certain circumstances, a short sale can be a win-win situation for both buyers and sellers. If you’d like to understand your options as a seller, feel free to contact Jason at 877-299-0215. Otherwise, we also have agents available.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
