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5 Critical Steps for Miami Short Sales…

The ShowcaseMiami Team has helped over 60 Sellers successfully complete short sales.

Sellers often choose to do a Short Sale if…

a) Seller can not afford the monthly payments on their home

b) Seller owes more on their mortgage than the property is worth (upside down)

c) Seller wants to minimize any damage to their credit despite the distressed nature of the sale (in general, a Seller can expect their credit score to be reduced 75-125 points in a short sale)

d)  Seller wants to own a home again once their finances are back to normal (within 2 years, one can buy again after a short sale. In fact, I know 2 buyers who purchased again within 2 years.   In contrast, it will take 5-7 years to qualify to purchase a home again if there is a Seller lets their house go to foreclosure).

 

5  Steps for Miami Short Sales…

It’s a fact that over 30% of Miami Single Family Home listings are short sale listings (pre-foreclosure) yet only 7% of closed sales in Dade County are short sales.  Therefore, it is critical to hire a Miami Listing Agent who is experienced in closing large volumes of short sales.

Below, you will see the formula the ShowcaseMiami Team has used to successfully close over 60 short sales for our Sellers.

  1. List Property for Sale at a price that is justified by recent sales (by pricing the property this way, you will receive multiple offers within the first 2 weeks of the listing).
  2. Seller then executes the one offer with the  “highest price and best terms” which the ShowcaseMiami Team then sends to the Seller’s lender(s).
  3. Seller’s Lender will then send an appraiser or realtor to the property to perform a Broker Price Opinion (“BPO”) to determine if the offer made by Buyer represents fair market value.
  4. About 3 weeks after the  “BPO” is performed, Seller’s Lender will either accept the Buyer’s offer or make a counteroffer based onthe “BPO” value.
  5. Buyer will either accept bank’s counter or make a counter of their own.  I recommend that buyers NOT make another counter because it could take weeks to get the bank’s 2nd counteroffer back (often, the bank negotiator has to get authorization from the investors on the loan for additional reductions).

 

Other Short Sale Considerations…

  1. Buyer and Seller sign an addendum up front stating that Buyer will lose their $1,000 deposit if they withdraw their offer prior to 90 days.  This keeps all parties to committed to being patient while the bank approves the short sale.
  2. Have an addendum stating that Buyer must inspect property prior to making offer and purchase property in As-Is condition.  (the last thing you need in a transaction is to gain the bank’s permission to short sell the property and buyer backs out in 60 days because of the property’s condition).

If you have additional questions on what steps to take next, we are available for a private consultation at your convenience to discuss the best strategy for your particular situation.

 

ShowcaseMiami Realty specializes in assisting homeowners to Sell their Miami home.

(Highest price in the Shortest period of time)

To discuss a strategy for your home, call…

Jason Smith

Broker (Seller Specialist)

ShowcaseMiami Realty

www.ShowcaseMiami.com

786-326-8115