Promoting a condominium is challenging in a down real estate market. It is even more challenging to sell a condominium when you’re attempting to market one that is worth less than what you owe on your home mortgage. But sometimes–such like a job loss or decrease in working hours is now feasible for you to pay your mortgage payments–you have no other option. To sell a condo in this situation, you’ll probably have to hold a brief sale, through which you market at a price that is lower than what you owe on your mortgage. The challenge lies in convincing your own mortgage lender to approve such a sale. Your lender will eliminate money if you market for less than what you owe.
Find a real estate agent in your community with expertise with selling condos through short sales. Ask agents how many brief sales they’ve handled in their professions, how long it took them to market these condos and how frequently they nabbed an offer near the seller’s initial list price.
Call your mortgage lender and explain that you are interested in a brief sale. Tell your lender that you will need to sell your condominium, but that you owe more about its mortgage than that which the residence is currently worth. Your lender should send you written permission to go ahead with a brief sale. Your lender may do this if it has monetary incentive to do this; for example, if you are struggling to make your current mortgage payments, your lender may decide that a brief sale is a better financial decision than waiting until you fall to foreclosure. Lenders can incur substantial losses when they have to evict residents and market their properties, particularly in a down real estate market.
Study comparables with your real estate agent. These listing what similar condos in your neighborhood have sold for. Based on your neighborhood, several condominium units might have sold recently, providing you a fantastic list of possible price points. Your broker will have access to such comparables. The comparables will help you and your real estate agent determine the best asking price for the condo.
Set an asking price for your condominium. Generally, if you place an asking price which is lower than that which equal condominium units have sold for, then you are going to market your unit in significantly less time. Buyers frequently have several similar condo units from which to choose. You can set yours apart, and help increase the likelihood of a quick sale, by offering it at an aggressive price.
Send any supplies to your own mortgage lender for its acceptance. If your lender prohibits an offer, which might happen if the buyers’ asking price is too far below what you owe on your home mortgage, you can’t accept it.
Accept an offer if both you and your lender approve of it. Your real estate agent will help lead you through the process of closing the purchase.