Short sales can become very complicated transactions. If you’re new to the real estate selling market, it can be challenging for you to proceed. In these cases, the best decision would be to seek professional help. However, remember that you should always be careful when choosing a short sale agent.
Since short sales are complex, many mistakes can be made. These are often made by inexperienced agents who have minimal training in the short sale process. You never want to be in a position where your agent can’t give you proper advice or is confused about the policies to follow.
There are nine key mistakes to avoid in the short sale process. While that might seem like a small amount, these mistakes can mess up integral steps in the process. Your short sale might end up not being a straightforward process. Don’t worry; there’s one way you can save yourself the trouble. Make sure to get the best short-sale agent in Charlotte, NC to avoid making the mistakes below.
What Does a Short Sale Agent Do?
Short sale agents specialize in assisting homeowners who wish to sell properties that the seller can no longer afford. Short sale specialists are real estate agents, but some can also be brokers or lawyers with previous industry experience.
These agents will also likely have experience in mitigating loan company losses and extensive knowledge of their regulations. They assist sellers with the property’s paperwork, networking, listing, and marketing. Would-be buyers of short-sale homes often choose short-sale agents, considering the complexity of the process.
As all short sales involve selling a property for less than the amount owed to the bank, it typically is used to prevent or avoid foreclosure. Short sales have a less financial impact than foreclosures do.
In these cases, a short sale agent begins by determining how much the property owner owes to the bank, then how much the property can be sold for on the housing market. The agent needs this information as it can be used to write a hardship letter.
Hardship letters are written to the lender or the bank that is owed money. It requests authorization to execute the short sale. A skilled agent helps significantly in this step, as they should have experience with the process. They will help the homeowner compose the letter, guide them to use the right words and ensure they provide the correct information to their lender.
A Charlotte, NC short sale agent will be able to help out with the processes that come with a short sale.Read more https://t.co/Bbcmit5lRE#ShortSaleAgent #Mortgage #AuctionHome #foreclosure #NancyBraun #ShowcaseRealty #CharlotteNC #NcHudHome #ShortSale pic.twitter.com/UbRLuN4pTb
— Showcase Realty (@ShowcaseRealty) August 27, 2021
How Do I Choose a Sales Agent?
No matter how detail-oriented you may be, some mistakes could still happen. Fortunately, these can be prevented. Here are some mistakes to avoid when choosing a short sale agent in Charlotte, NC.
Nine Mistakes To Avoid When Choosing a Short Sales Agent
1. Not Doing Enough Research
Like any other important matter in a person’s life, selling a home is a process that needs common sense, good knowledge, and help from professional advisors. Home selling can be excruciating and lengthy, and a short sale is even more complicated.
This is why it’s essential to do your own research before entrusting the whole process to a short sale agent. Research the short sale process, what requirements you may be asked for, and how much you might be able to pay your lender back so that you don’t have to resort to blindly trusting an agent with the status of your property ownership.
Though agents are there to help you, it also allows you to know what’s going on and when you should be stepping in and asking the right questions. This is your property, and short sale agents are there to assist you in the process.
Additionally, once you’ve finished learning about the short sale, take the time to understand what a short sale agent does and contributes to the process. Make a list of good short sale agents around your area, and take note of their portfolios for future reference.
2. Not Asking Enough Questions
As the homeowner, you have the right to know as much as possible regarding the process. Your house and financial situation are on the line, so you should know every detail possible.
Most first-time sellers make the mistake of relying on their agents too much. Just because an expert is an expert doesn’t mean you should sit back and watch the process unfold. You also have to be actively part of it.
Don’t be afraid to ask questions (about everything!) to your chosen short sale agent. Ask questions while going through the agent selection process. It offers transparency and additional information relevant to the process. More importantly, it allows you to determine precisely how much the agents know regarding the process.
Ask about the details, what you should be expecting, and what services the potential agent will provide to you. If an agent fails to answer these clearly or avoids responding appropriately, label that immediately as a red flag to avoid. Qualified agents must be able to let you know everything there is to know about short sales.
3. Choosing an Agent With No Valid Experience
At times, the experience can be a complicated thing to determine. An agent may have been in the industry for over a decade. However, how many transactions they’ve gathered over those years matters. It might be a red flag if their sales and successful transactions are low numbers.
In this case, since a short sale is different from a regular home sale, it’s good to be critical and closely inspect a potential agent’s track record. There are a few questions you can ask them regarding this. Here are a few questions you can request to know more:
- How did you become a short sale agent?
- How many years have you been a short sales agent?
- How many successful short sales have you closed?
- What could you recommend to me regarding my short sale?
- Do you have any previous experience with my bank?
- Will you be able to handle the negotiation for my short sale?
- How long would you think the process of my short sale will take?
There are only a handful of questions to ask, but they will confirm how much your agent knows about the process. They will also help secure how much help they can be in your situation.
It also helps you be on the lookout, as some agents have experience in the real estate industry but do not have many short sales transactions. Remember that experience and successful transactions are both significant.
4. Choosing an Agent That Knows Nothing About Your Neighborhood
Any short sale agent can be a good one, but there are times when a lack of knowledge of your location can lead to bad transactions. Once again, doing as much research as possible on potential agents is best.
Try to ask them how many transactions they’ve done in your area. Find out how long they’ve worked in your neighborhood as well. A good sign of a good short sale agent is if they’ve been a resident of your area for more than a few years.
5. Lacks Experience With Lenders and Short Sale Banks
Not all agents do this, but some might. Sometimes, a short sale agent may overstate how many contacts they have at a particular bank. The thing with this is, although they may be stating the truth, bank employees are less permanent.
Although past performance with banks is not always an indicator that an agent is perfect, it guarantees that you can at least trust that they know the process with your specific bank. It will ultimately help things become easier to understand.
6. Not Scrutinizing the Red Flags or Trying to Find Them
Some people tend to see red flags and refuse to give them any notice. This sounds like a very rookie mistake, but some red flags can also be very well hidden. You should always be on guard during the agent-finding phase. This is why asking questions helps.
7. Choosing an Agent Who Gives Vague, Undetailed Answers
Building on the last point: watch out if you’re asking plenty of good questions, but the agent isn’t giving you good answers. If the agent didn’t provide enough specific information or back up their words, that’s a dangerous sign.
Vague answers tell you nothing. You should be suspicious if a short sale agent is being too ambiguous with you or not giving you enough information. Remember that this is still your property that will be sold, and the transaction and the process need to happen appropriately.
8. Looking for an Agent Outside Your Immediate Area
It can get very complicated if your short sale agent works outside your area. Your agent might be harder to reach, might not be available on short notice, may not know any of the employees at your bank, and of course, might lack knowledge about your neighborhood.
When looking for an agent, look towards someone close to you. Go for someone who is preferably a local of your city. Aside from being accessible whenever needed, they will know plenty about the area and are highly likely to have had previous experience working with local bank branches.
Additionally, a short sale agent from outside your area might not know how to successfully market your property according to what local citizens find appealing. It’s better to get a well-known agent from your neighborhood or city. More importantly, a local agent can price your short sale more accurately than one outside your area.
9. Settling for an Agent Just to Avoid Further Hassle
You have come so far interviewing and searching for agents, and it might not be a great idea to settle on someone when you haven’t thoroughly thought about it yet. Take all the information you’ve gathered. Think about which of the potential agents have checked off all the boxes.
Are they local, or do they know plenty about your area? Have they had any experience with short sales in your town before? How much experience do they have with short sale banks? The answers to each question you ask help you get closer to who might be the best option.
With all of that information in mind, find the best agent that can put in the full commitment to your short sale and help you throughout the whole process. This enables you to get through the transaction better and will eventually speed up the process efficiently.
You’ll need a skilled and top real estate agent in Charlotte, NC, like #NancyBraun of #ShowcaseRealty, to handle these early conversations because some lenders would rather foreclose on a home than allow a short sale. https://t.co/K9qnkPmr5v pic.twitter.com/Bt4wiVtt0V
— Showcase Realty (@ShowcaseRealty) August 21, 2021
How Can I Get the Best Deal on a Short Sale?
The main thing about a short sale is that you sell your home for less than it is worth. So it might be hard to get a good deal on it. Before anything can proceed, though, here is what should happen. Both the seller and the buyer must know if the lender has approved the short sale. After this, without their approval, the short sale cannot go forward.
If you’ve avoided all mistakes and chosen the short sale agent you think is best, it’s time to see how skilled an agent they are. The short sale process is about 4 to 5 times more complicated than the typical home selling process, but this is why a short sale agent comes in handy.
As the seller, you should make yourself aware of the risks of a short sale. You may check our blog about these risks here. The most notable of these is the length of the process. Interested buyers come and go; others may make an offer but cancel the contract halfway. Be aware that this isn’t the short sale agent’s fault or your own. Some buyers may just withdraw because they found a new home or cannot wait for the sale’s approval.
Either way, throughout this whole process, your short sale agent will be the one to help you. A short sale can go well with a good agent in your back pocket. Even after receiving the green light from your lender, the process will still take a long time. A skilled short sales agent can make the lengthy process go smoothly.
The Bottom Line
Since you’ve evaded all the red flags and chosen your agent wisely, the struggle will most likely decrease. Any transaction will be easier and better if you’ve received approval from your lender. If you want to maximize your chances of getting a successful short sale Nancy Braun and her company Showcase Realty offers the best short sale advice in Charlotte, NC.
You can most certainly get the best deal possible and experience a smooth transaction if you trust Showcase Realty. Since Nancy Braun is a North Carolina local for over two decades, there’s more than enough she knows to help you get your Charlotte, NC short sale done.