Gateway Fort Myers Short Sales
In working with clients, the most frequent questions I receive have to do with short sales. Let’s face it, now more than ever, short sales are a significant portion of the market. Answering the most frequently asked questions about Gateway Fort Myers short sales will help you either buy or sell much more easily. Here are the top questions asked and answers:
1.) What is a short sale?
A short sale is just that, it’s a sale of a home or condo where the seller’s loan amount is more than what the property is worth in the current market. Most of the time, there must be some type of hardship on behalf of the seller for the bank to agree to do a short sale. For example, salary reductions or job loss would be considered a “hardship.”
2.) How long does a short sale take?
This is the million dollar question. Unfortunately, the real answer is “It depends.” I have seen short sales close in 1 month, but I’ve also seen short sales NEVER close; they simply went into foreclosure. The 2 biggest factors in deciding how long it takes to close are the banks involved and the company or individual doing the negotiating with the bank. You see, some banks have a TERRIBLE reputation for taking forever to close short sales, while others have great systems in place that facilitate negotiations. Also, 2 or more mortgages on a home can add significant time to the process. I recently saw a short sale with a 1st mortgage, 2nd mortgage, and commercial loan against the property. Hope that found a very patient buyer…! So how do you know this information? It’s simple, hire a great Realtor that asks these questions.
3.) How do I know the actual price the property will sell for?
Most of the listing prices you see are what the listing agent BELIEVES the bank will accept for the home. Once they get an offer in their hands the negotiations begin with the bank. At this point, the bank will order what’s called a BPO (Broker’s Price Opinion) of the property. This BPO is simply a real estate agent’s opinion of the value of the property. They report this back to the bank, and the bank typically wants to get at least 95% of this number for the property. If you put in an offer that falls below this mark, the bank will simply send you a counter offer. You always have option to accept the counter offer or reject it.
The long and short of it is that buying or selling a Gateway Fort Myers short sale can be frustrating at times, but the payoff can definitely be worth it. Statistically, short sales are the 2nd best deal out there, 2nd only to foreclosures. The great part about most (definitely not all) short sales is that the still owns the property and wants to sell. In more cases (again, definitely not all) the home will be in better condition than a foreclosure where the previous owner had no interest in the property whatsoever. I’ve seen entire kitchens stolen, baseboards stolen, lots of bad things.
Here is a list of all of the Gateway Fort Myers Short Sales. If you have any interest in any of them, make sure you ask me where they are in the short sale process. This can save you many headaches down the road.