Feb

Real Estate Development Marketing

A real estate short sale occurs when a property’s loan balance is higher than the appraised value of the piece of real estate in question. Not all banks will do real estate short sales, so if you are considering this you should really seek some short sale advice. In order to successfully complete a real estate short sale, your first step is to look for a bank or lender that is willing to take on a short sale real estate transaction.

Many real estate investors grab the opportunity to do short sales. This is especially true when the foreclosure rate remains so high. Real estate short sales remain to be a popular property investing strategy. Hpwever, if you are new to real estate investing or development, again, you will want to seek some good short sale advice to prevent getting in over your head.

Short sale and real estate advice in a nutshell: A short sale is an option for the owner of a piece of real estate when a bank or mortgage lender agrees to discount a loan balance because of financial difficulties on the mortgagor’s part. Doing a real estate short sale is nothing more than negotiating with the lien holder of a piece of real estate a payoff for less than what they are owed.

To get started, the market value of a property must be determined by a real estate agent by performing a Comparative Market Analysis. From here, you must take into consideration the costs that you will incur to sell the real estate. Costs included are advertising expenses, commissions and fees payable to your broker, and the closing expenses of the transaction. You must also include the legal fees you will incur for the short sale. Next, summarize all your expenses and compare it against the property market value.

Then, you must deduct the amount of money that is owed against the real estate from the anticipated profits of the transaction. The difference is the "short" of the real estate short sale.

Before following through with the real estate short sale, you should also get a lawyer for short sale advice and help with the legalities of the transaction. Further, getting the assistance of a CPA who knows the tax-related concerns for real estate short sales is a good idea. You will want to determine what fees you will have to pay in relation to the short sale and real estate.

Most importantly, you have to find a buyer. Contrary to the belief of newbie real estate short sale investors, your buyer will not assume the mortgage, but the sale of the real estate will be paid directly for the mortgage.

At this point, you must contact your lender. Let your prospective lender know that you are about to go into a short sale, and show them the information related to the transaction. The lender accepts the deal according to the amount you offer.

Once everything is agreed upon, you are now free to dispose of the property and do a real estate short sale. The lender will have you present the contract between you and the buyer to see if the sales price is the amount that they will be receiving.

Again, before you get involved with real estate short sales, seek out professional short sale advice.