6 Short Sale Marketing Mistakes
If you are a homeowner and you are considering putting your home on the market as a short sale, you know you are not getting any money from the sale. Because you are not getting any profit out of the sale of the home, you might not care how your home is marketed, but you should. The better marketing of your short sale home, the better position you are in when negotiating with the bank for approval of the sale.
Short sale mistakes:
1. One or two pictures of the home. – Don’t only have one or two pictures on the MLS. Buyers always equate little or no pictures to poor condition of the home. Short sales should have as many pictures as regular sales, you really need at least 12.
2. No lockbox on the home.-All home sellers need to make it as easy as possible for buyers to see the home. This is true even if your homes is a short sale.
3. No sign on the home.-Buyers are driving neighborhoods that they want to live in, if they don’t see a sign, they may never know that your home is for sale.
4. Low commission.-Your short sale home should be offering the same or more commission than the regular sales in your area. If you are offering .25% or more less than all the other homes in the area, you will greatly reduce the amount of showings.
5. FSBO.-Doing a short sale as a For Sale By Owner is just crazy. You are not saving any money! The banks understand that they will need to pay a standard commission, and they would have to if they foreclosed and sold the home.
6. Charge a “short sale processing fee” for a short sale processor. I am seeing some agents charge the buyer or the buyer’s agent a “short sale processing fee” of on average 1% of the purchase price! Then they try to make it ok by saying just reduce your offer by that amount. But the buyers don’t know whether the bank will take their offer or not. Charging a processing fee for something your real estate agent is supposed to be doing is another mistake that will decrease your showings.
The best marketing you can do for your home, when it is a short sale, is to treat it just like a normal sale. Marketing your home completely to compete with regular sales, gives the bank one more reason to accept an offer. Typically a foreclosed home has no marketing, and if you can show the bank all that was done to get the highest and best offer, it gives you a higher chance of acceptance.