I Priced the Short Sale Too Low!
Please note: Before I get into the subject of this write up, I want to make a couple things clear… When the market was hot, seller’s really did not need the assistance of Realtors in selling their properties. They most likely needed us for negotiations, contracts, etc. But to sell the property was fairly easy in the Southwest Florida market. They put a sign in the yard and they had 10 offers the next day. This market is in demand of great real estate professionals who know what to do in selling a short sale.
With that said… When I first started taking short sale listings and selling them, I immediately was taught a valuable lesson on a short sale property in Naples, Florida. I priced a listing below market. I had plenty of activity for buyers and put it into contract immediately. I submitted the full package, the BPO was ordered and I was assigned a negotiator. The bank came back with a certain net amount which increased the contract price $40,000. I informed the buyers and they elected to back out. Bummer right?? Not necessarily. I had plenty of other interested parties and was able to get the property back into contract at a bank approved price and closed shortly after. No big deal. However, it was my mistake by not scrutinizing the market more in detail and price it more accurate. The initial buyer was a bit upset and we eventually sold them something else. That buyer was great to work with however, it was not necessarily a good experience for them as they thought they would have gotten that property. It can appear misleading if we do not price the property to reflect the market correctly. If we are priced too high, the property sits on the market, there are limited showing and the short sale real estate becomes stagnant. If you are priced too high it is imperative to monitor your market place and see what recent sales are and what new inventory on the market is going for- Be sure to immediately adjust accordingly (price reductions). Our market in Southwest Florida is so volatile that we are consistently monitoring our available inventory but also our inventory that is in contract in which we strive for back up offers. When dealing with short sales please consult a real estate professional in your area who knows market conditions and how to successfully perform a short sale-sale.
Steve Daria is a the broker / owner of Maxim Realtors, LLC, specializing in helping clients with short sales in Fort Myers, FL.
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