Why You Need an Agent When Short Selling Your House

Julia Vakulenko asked:

The part of the short sale process that many buyers do not understand is that a loan on a home may exceed the amount of the home’s worth. This is especially true when changes in the real estate market in a given area go south. Take this example: A home buyer chooses a new construction for their home purchase. They purchase the home for $250,000. Only 3 months after the close of the sale, the builder chooses to lower the price of the models sold in that community to $200,000. That means, the worth of your home just dropped by $50,000 with the flick of a pen.

This example is important to understand when it comes to short sales. A homeowner can have two or three mortgages on a home. The home may be worth $300,000 and the first mortgage may only have $150,000 left. A great buy, right? Wrong, if the other mortgages add up to another $200,000, the home will be placed on the market for a short sale that may cost the buyer more than the home is actually worth.

Sheer confusion, I understand. But, at the heart of understanding the short sale process and the loops that much be carefully stepped through when going after that short sale are what real estate agents are trained for. A seasoned agent. One that knows the area, knows the comps, know what the potential real estate values will be worth based upon experience and understanding of real estate fluctuations. These are the real estate agents that can point you in the right direction.

A short sale can be a great deal, but that does not mean it has to be. The real estate agent you choose when searching or attempting to buy that short sale, will mean a world of difference when it comes to that bottom line; your new home and you!

Get Advise from a Scottsdale Realtor

Be Sociable, Share!
Categories : Foreclosures

Leave a Reply



If you are thinking about Buying a Home, and this is your first home or you have purchased several properties, we are here to provide Information that every home buyer should know, before you look at the first home! Scottsdale AZ Homes For Sale


Thinking about Selling your home, if this is your First sale, or you have sold several properties before, we are here to help you by provide Information that every home seller needs to know before you decide to sell your home! Az Realty Results


Thinking about Investing in Real Estate? If this is your first property or you have made several purchases, we are here to help you by providing Information that every real estate investor needs to know before you decide to start your investing! Az Realty Results