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Short-sales are becoming more important for Real Estate Agents in Minnesota to understand. The average real estate agent does not understand what a short-sale is let alone how to negotiate a short-sale in the Minnesota real estate market. Help-U-Sell South Suburban Realty learned quickly how to not only list but to negotiate the short-sale so that the client can complete the real estate transaction quickly. The short-sale is not an easy thing to understand. Sellers don't always know what it takes to qualify for a short-sale. Realtors in Minnesota and Nationally do not always offer the short-sale as an option. The best thing to do is arrange for a free consultation with Help-U-Sell South Suburban Realty to see if you qualify.
What is a short sale?
Short-sales are used when the seller owes more than their home is worth in todays real estate market. Many real estate markets in Minnesota and across the United states have been declining in value in the past few years. Some real estate markets have been effected by properties declining values more than others. A large portion of the Minnesota real estate market has been effected.
A short-sale is necessary to help the seller that has to sell and can't afford to wait out the declining real estate market. The bank will often discount the loan to market value to release the lien on the home. Sometimes the bank will release the lien but go after a deficiency with the seller. The agent needs to be able to not only understand how to negotiate a short-sale but also to educate the seller on all of the scenarios that can play out during the negotiation on their home.
The deficiency is the difference between what is owed on the mortgage and what the home sales for. Sometimes the bank will want the homeowner to arrange to pay back the difference over a period of years. Often times the bank will offer an affordable payment plan with zero percent interest on the difference. Sometimes the bank will not request the money to be paid back and the seller can move on. The short-sale in and of itself should not hurt the sellers credit. However, missed or late payments can and will effect the sellers credit. It is in the sellers best interest to try to short-sale the home instead of staying and not being able to make the payments. It is a much better solution for the seller than a foreclosure. The forclosure will stay on a persons credit report for up to 7 to 10 years.
Who qualifies for a short-sale? If the seller payments are too high for the seller to be able to pay due to job loss or an ARM that has put the interest rate higher increasing the payment to an amount that is no longer affordable to the seller. Job relocation is also another issue that forces the seller to sale the home because they can't afford two homes but are forced to relocate.
Buying a short-sale is also a very difficult process if the agent does not understand how it works. The short-sale is not the same as buying a REO property. With an REO property the bank has already done the BPO or apprasal on the property and has established a price that they will accept. With a short sale that is not the case. The agent is trying to educate the bank on the market value. They are making a case for the price that is being offered. If the buyers agent does not understand this process is will be very frusterating for the agent and the buyer. The buyer needs to understand that the offer will take longer to get an answer on with the bank. It can be a great deal as long as the buyer understands the process. That is why it is extremely important that you pick an agent that has a lot of experience in this type of real estate market. Buyers must interview agents in this market to know that they are getting someone with a lot of experience with all types of transactions. Agents at Help-U-Sell South Suburban have the training and experience to make the experience as easy and painless as possible in this real estate market.
Please make an appointment today with one of our agents to learn more about this market and how to understand all of your options as a buyer or seller. Although no one can guarantee what this market will do we can do our best to help the client make the most educated decision and decrease the risks involved.
Help-U-Sell South Suburban Realty has both Buyer Agents and Seller Agents that have the extensive knowledge needed to represent the client in this market. Please contact us today for more information on our services. |