This has been on my mind for awhile and I want to talk to homeowners who are thinking of selling their homes by short sale. Folks, as your Realtor it is my job to get you the best price the market will allow. That goes for any home I list, not just homeowners who have equity.
Selling your home by short sale is no different that selling your home the traditional way. You must put your best food forward, take care of your home the best you can and hire a Realtor who will market your home, and get you the best price any other seller could expect to have. What I expect every seller to do is keep the utilities on, and remain in the home until we are able to secure short sale approval. It is your responsibility to keep your home in good repair as best as possible. It is still your home until it goes to settlement and it is your responsibility.
Don't sell yourselves short just because you cannot afford your mortgage! That is crazy!!!!
Beware of anyone who suggests you list your home really low and says "We only need one contract to send to the bank!" The price really doesn't matter the bank will decide how much the house is worth!
Say What?
I have had several inquires from distressed homeowners who are asking questions. People who and who are exploring what and how a short sale is done. I keep hearing that they were told just to sell it under market to get a quick sale that they only need one offer to start the process!
Yes, a seller only needs one offer, however you want it to be a Fair Market Value
"My take on this is, it serves no one when a homeowner lists their home for a ridiculously low price just to get the short sale process started. In my opinion this is extremely bad advice."
Let's say you did that. You acceped an offer, sent it to the bank, and then months later after everyone has been anticipating short sale approval the bank responds and says we need to sell the home for tens of thousands more or we just foreclose. Everyone looses in that situation. Not only you, but your neighbors, the buyer and the buyers agent, the title company, the loan officer and everyone who worked so hard for months trying to get your home to settlement.The only person who could possibly benefit is your listing agent who has been getting all those phone calls from buyers who are bottom fishing for a good deal.
Here is important fact. Anyone can sell a home under market! It is always best to list your home with someone who knows the area well, knows the fair market value in your community and who has a track record of getting short sale homes to the closing table.
Think about it this way.
Let's assume your home value wasn't upside down. The Realtor determines that if you sell your home for Fair Market Value or just a tad below, you would realize a $100,000 profit at settlement. You would be thrilled. Right? Now just imagine how you would would feel if that Realtor said to you, I think you should just list it for $50,000 under market just to get a quick sale, because it really doesn't matter. My guess is your response to that idea, would be to kick that Realtor to curb so fast it would make their head spin!
There is a better way, and one that you can still hold your head high when you sell.
Do You Have Questions? You Can Reach me direct at 703-851-3085 or contact me by email .
Contact Peggy James or Erick Blackwelder of Erick and Company - Exit 1st Choice Realty,14029 Crossing Place, Woodbridge VA. 22192. Realtors®, call 703-851-3085 (Peggy) or 703-590-2252 (Office) to list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Montclair, Dumfries, Occoquan, Dale City, Gainesville area's. 
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The views expressed herein are my personal views and do not reflect the views of Exit 1st Choice Realty.
Peggy: The bank does decide the price and I do not think that there is anything wrong with explaining that to a seller. However, taking a listing and accepting an offer that are not near market price/value is a waste of everyone's time. I think that is what you are saying here, right?
Hi Melissa, thanks for chimming in here. We are both in agreement. Listing a short sale bedrastically lower than Fair Market Value is a waste of time and money for everyone involved.