Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
The process of short selling a house could potentially help you get out of a bad mortgage situation. However, there are some mistakes that many people tend to make when short selling a house. Here are a few of the most common short selling mistakes to watch out for.
1. Unrealistic Pricing
One of the biggest mistakes that people make when trying to short sell a house is to price it unrealistically low. When you sell a house in this manner, you will need to price it below market value in most cases. That does not mean that you should try to put a price on the house that would equal giving it away. Finding a buyer when you put a very low price on the house should not be a problem. The only problem will be getting the mortgage lender to agree to this price. The lender has to be willing to accept the offer before it will go through. This means that you should not bother trying to price the property well below market value.
2. Lack of Marketing
When you are trying to short sell a house, you need to make sure that you market the property thoroughly. If you do not spend some time and money getting the word out that you are trying to sell the house, you may not be able to find a buyer in time. Many people think that just because they put a low price on a house and call it a short sale, the buyers will come running. In reality, you have to market a short sale just as you do any other home. If you avoid this step, you might not be able to sell the house as easily as you thought.
3. Not Being Flexible
When you are trying to short sell a house, you should be as flexible and accommodating as possible with potential buyers. Many real estate agents will come in and set up restrictions on when a property can be seen. If you want to sell your house as quickly as possible, you need to accommodate anyone and everyone that wants to see it. Even if it means that you have to make the house available on nights and weekends to accommodate potential buyers, you should do so.
4. Not Preparing the Property
Before trying a short sale, you should try to get the property into decent condition. This might involve changing the carpet and painting and fixing small holes in the walls. You might even need to do some things to the outside of the property in order to give it a nice curb appeal.
Once you get the property looking good again, you need to make sure that you keep it in good condition throughout the entire sales process. If you are still living in the property, make sure that it is always clean whenever potential buyers are coming over to look.
- What Lenders Don't Reveal About Home Equity Loans
- Should You Refinance? Make Sure the Timing is Right
- 3 Reasons Banks Reject Short Sales
- FHA Eligibility with Bankruptcy and Foreclosure
- 3 Warning Signs of Loan Modification Scams
- What To Do When Mortgages Default
- Alternatives to Getting a 2nd Mortgage
- Home Equity Loans for People with Bad Credit
- 3 Common Short Sale Mistakes