What is the Second key to a successful Short Sale?
Short sales can be tough, especially when you don’t even know what it takes to succeed in this business. As you may already know we’ve been in the Foreclosure and Short Sale business for over two years now. After working on over 100 Short Sale files we’ve figured out the 7 Key Elements to Successful Short Sales.
In today’s post I’m going to share the second key element to a succesful short sale.
Verify Property Value.
In order to have a succesful short sale you’re going to need to find comparable sales (comps) within the past 90 days. The sale prices for your comps needs to be considerably lower than the amount owed on the property you are trying to short.
Criteria for Comps:
- Property age +/- 5 years.
- Comp must be within 1.5 miles of subject property.
- Square footage +/- 10%.
- Property must be in similar condition.
Where to find property values.
The internet has tons of AVM’s to choose from. AVM’s should only be used as a guide due to inconsistencies in the data. Some of the most popular sites are:
I typically pull reports from 2-3 of these sites and compare the data. Another great source for comps is your local property appraisers website.
*These sites are easily found using your search engine. Just type “your county property appraiser” into your preferred browser. Remember to replace “your county” with the county that you’re searching for.
Don’t forget Realtors
I could be biased since I am I licesned real estate broker, but I think the best place to get values is the local MLS. Since the MLS has restricted access I think it’s important to have a Realtor on your team. The data on the MLS is typically the most up to date. Anytime a property is sold the MLS requires the information to be updated within 48 hours.
Read the first installment of “The 7 Key Elements to Successful Short Sales” by clicking here.
Short sales are a great way for homeowners to get out of a bad situation fast. They also provide great opportunities for buyers looking for a great deal.
Jon Christopher of Short Sale Way
Jonathan Christopher
August 22, 2008
Short sales are a great way for a homeowner to get out of a bad financial situation. Banks are really starting to loosen up their policies which has made it much easier to get a short sale approved.
Jonathan Christopher of Short Sale Way
Jon Christopher
August 22, 2008
I’ve been doing BPOs for a while now. Comps are very difficult. Sometimes you can search a neighborhood with hundreds of homes and only find 3 or 4 sales total within the last 6 months. Often these sales are of houses that are nothing similar to the subject property. It sure isn’t easy. I agree with you though that the MLS is best. I don’t use anything but the MLS when I search for comps on BPOs, short sales, or anything else I am working on.
Rob Arnold
August 26, 2008