Pricing strategy on a West Sacramento short sale truly depends on a
number of things. First and foremost is where are they in the West Sacramento
foreclosure process. If there is an auction date set the price will be very
aggressive only because the bank usually won’t talk to us until we have an
offer. No offer, no sale date postponement and the West Sacramento property
gets foreclosed on.
The second item that plays most into
the equation is the condition of the property. Is it financeable, does it need
repairs; does it have to be a cash sale?
The third biggest contributor is who
owns the note. Is it a Fannie or Freddie
backed loan? Is it FHA or VA? Is it a portfolio or investor owned
loan. The difference being is that each investor expects a minimum return on
the West Sacramento short sale for them to approve
the West Sacramento short sale.
Lastly is the listing agent and
their experience. We always want to get as close to fair market value as
possible for the property and when we say fair market, that takes condition and
location into account. Our experience tells us that Fannie,
Freddie,
FHA and VA all have a percentage of fair market
value they want to net. We also know that an investor loses about 25-30% more
on a West Sacramento foreclosure vs. a West Sacramento short sale even if the property
is sold for the exact same price. We use a short sale
calculator which takes a number of values into account to tell us at what price
it makes more sense for the bank to foreclose rather than accept the West Sacramento short sale.
As always, it’s about the money –
from the banks perspective where will they lose the least amount – West Sacramento short sale or foreclosure. If
they will lose less on a West Sacramento short sale they will accept the short sale.
If they lose less on a West Sacramento foreclosure they will foreclose – pure
and simple Call me today for a free no obligation consultation. Call me today
and sleep better tonight; you’ll be glad you did
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