Mark Galante's Blog
You might have heard one or two things about a short sale in real estate. It may look like a hard concept, but it is just another term for a conditioned sale.
What is a short sale?
A short sale in real estate happens when a property owner needs to sell the property for less than the amount owed on the mortgages or liens. It occurs when the current fair market selling price is lower than the sum of the mortgages owed, but the seller must sell anyway.
It is a term coined to mean that the current seller is short of cash to repay the original mortgage that is currently outstanding and cannot receive an offer of a high enough price to cover it. Since the seller is short of money, he has to ask for help from the bank to recoup a portion of the loan.
Today, short sales rarely happen. They were prevalent during the Great Recession but not anymore. In the rare cases where one is necessary, the bank may take into account mitigating circumstances such as a death of the primary income-earner, or a homeowner subject to a health challenge.
Advantages of making a short sale in real estate
As gloomy as it sounds, short selling is not at all that bad. The following are some of the advantages that come with short selling: A short sale protects your credit score. Instead of the alternatives, foreclosure, and default, a short sale protects your credit score as it shows that you make financially sound decisions. Credit bureaus often frown upon a foreclosure, so it is better to make a short sale.
A short sale helps you avoid foreclosure. One of the worst things that one can do to a credit score is to add a foreclosure record on it. Hence, it is better to make a short sale as it deflects the adverse effects of having a mortgage foreclosed.
A short sale saves the seller from paying the fees that usually get paid by the seller. The charges get covered by the bank.
Disadvantages of making a short sale in real estate
There is one disadvantage to making a short sale in real estate, and that is the lack of cash received on the part of the seller. This one is a given since the quick sale is a Hail-Mary pass in an otherwise potential foreclosure on the property.
Sometimes you need to short sell your property because you need to move to another state or country and keeping another property is not practical. Hire a real estate agent, one specializing in short sales, today to help you with the transaction.
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Real estate market data is readily available to home sellers across the United States. With this information at your disposal, you should have no trouble maximizing the profits from your home sale.
Now, let's take a look at three real estate market data that every home seller needs to check out before listing a residence.
1. Prices of Comparable Houses
Let's face it – determining a competitive price for your house may prove to be difficult, regardless of your home's age or condition. Fortunately, if you analyze the prices of comparable residences in your city or town, you can better understand how your house stacks up against the competition and price it appropriately.
Furthermore, it may be beneficial to conduct a home appraisal prior to listing your house. This appraisal enables a home expert to assess your house both inside and out. Then, you'll receive an appraisal report that contains a property valuation, which may help you determine a competitive price for your house.
2. Prices of Recently Sold Houses
Are you preparing to enter a buyer's or seller's market? Review the prices of recently sold houses in your area, and you can find out whether the current housing market favors buyers or sellers.
If home sellers are receiving offers at or above their initial home asking prices, now may be an ideal time to list your residence. Thus, you may want to add your house to the real estate market sooner rather than later to capitalize on a housing sector that likely favors sellers.
Conversely, if home sellers are receiving offers below their initial home asking prices, you may want to allocate significant time and resources to find ways to improve your house. Because if you enhance your house's exterior and interior, you may be able to help your house stand out from the competition and increase the likelihood of a profitable home sale.
3. Average Amount of Time That a House Is Listed
Check out how long houses stay on the real estate market before they are sold – you'll be glad you did. With this housing market data in hand, you can assess the pulse of the real estate market and map out your home selling journey accordingly.
If you need help collecting or analyzing real estate market data, there is no need to worry. Hire a real estate agent today, and you can gain the insights that you need to make informed decisions throughout the home selling journey.
A real estate agent is a housing market expert who is happy to help you in any way possible. He or she will provide recommendations about how to price your house and improve your home's interior and exterior. Plus, a real estate agent is available to respond to any of your home selling concerns or questions, at any time.
Ready to list your home? Review the aforementioned housing market data, and you can obtain deep insights into the real estate sector prior to selling your house.