Houston TX – I see a lot of agents making mistakes on short sales property valuation. Lenders hire a supposedly impartial third party to value the property.
Many of these people are evaluating 10 properties a day. There is very little quality control and usually no one checks their work.
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Because of that, I always try to meet them at the home when they are doing their inspection. I explain the history of the property and why it is selling for that price.
The lender will take as gospel whatever value that person tells the bank the property is worth. If that value is more than the property is selling for, then the lender won’t accept the short sale.
Here are some common mistakes that you need to make sure that your short sale agent avoids.
One common mistake is to use comps outside the neighborhood when the bank is ordering an appraisal instead of an agent. Agents understand that buyers don’t buy only in a specific neighborhood.
Buyers look for the best deal they can find within a specific are. Because of this, an agent is more willing to use comps outside of the neighborhood.
But, when the bank is using an appraiser you must use the closest geographical comps, not the lowest priced comps.
The second mistake is not controlling the access to the property. The person evaluating the property should not be able to get access to the house without the agent knowing about it.
Your agent must have all showings go thru their office. A third mistake I see is not treating the people valuing the property with respect.
Short sale agents will be meeting the same people over and over. So, they must be punctual when they meet them.
They shouldn’t be forceful on the value. I recommend that they be convincing but not overbearing. Don’t argue over the value.
Most of the time, the agent or appraiser is going to determine the value on their own. They will look at the comps, and if it all makes sense, then they will use your agent’s comps.
However, if they think that those comps are inaccurate, then they will get their own. I always show up 15 minutes early to familiarize myself with any potential repairs.
I look around and notice nicked drywall, peeled up flooring, cracked tiles, and other issues. When I go thru the house with the agent I note those items and write them on my clipboard.
Once I’ve prepped your Comparable Market Analysis, then I go ahead and send a copy to the short sale negotiator. I tell them that I put my own property valuation together for them to review.
Following these tips can mean the difference between failure and success on your short sale. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at soldbymichelle@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 832-274-5007
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Thanks for reading this, Michelle Gonzales.
Michelle is a Real Estate Agent at RE/MAX 360. Houston Short Sales Realtor:
Phone: 832-274-5007. soldbymichelle@gmail.com.
“Educating the Homeowner, One by One!”
View My homes for sale at www.yourhoustonhomesource.com.
Michelle Gonzales specializes in loan modification assistance and short sales in Houston Texas. Houston Loan Modification Help, Houston Short Sales. Houston Short Sale Realtor Houston TX Short Sales. Houston Realtor.
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