5 Things to Consider to Short Sale your home?

Tucked away in the woods, next to a babbling brook

I have represented dozens of home owners here in Sarasota and Bradenton through successful short sales.  In the past three years a lot has changed, Three years ago most people didn’t even know what a short sale was.  Now it’s common terminology for almost everyone.

1. Doing a short sale of your home takes effort, and some determination. The process has become more streamlined with the majority of lenders today.  For example Bank of America Short Sales are now run completely through there Equator.com system.  Turn around time from Bank of America on short sale approvals have dramatically decreased.  This is a good thing.
2. There is currently legislation in place that exempts primary home owners who do a short sale being exempt from 1099 income from the accepted short sale.  If you owe 200,000 on your home, and you short sale it for 100,000, then your lender (bank of America, for example) can then send you a 1099 which would be “capital gain” for you. A taxable event.  I am not giving financial advice here, and bring this up because I require anyone that is considering a short sale here in manatee county to consult with a CPA, Attorney, or financial advisor to discuss the specifics of the law.  This exemption does not apply to second homes, or investment properties.  In certain cases,  I have had customers that have been able to work with their Accountant to avoid the taxes from the gain.
3. Talk with a reputable real estate agent that has experience with doing short sales in manatee and Sarasota county.  The amount of people that claim to be short sale experts, and even short sale “advisers” is amazing.  There are plenty of companies that have employees (not-real estate agents) out soliciting distressed home owners.  Most of these companies are flippers.  After I meet with you to discuss short selling your home, I would recommend consulting with a LOCAL attorney for legal representation in the short sale.  I think having the right help is critical to the success of your short sale.  I believe that selling to an end user of your home is preferable than to a flipping real estate company.
4. The Stigma around doing a short sale are far less than a few years ago.  With almost half the sales here in Sarasota and Manatee counties being short sales people don’t shun homeowners that decide to proceed with a short sale.  Most people realize that short sales are better than foreclosures for the community, and helps maintain the value and aesthetics of the community.
5. Keep your home in the best condition you can.  This advice may be obvious, but it’s worth stating that homes in good condition are more likely to sell, than homes in poor condition.  Although many buyers are open to the idea of “fixer-uppers”, most would prefer to buy a home in good condition for a steal of a price.  There is no guarantee that your home will sell, you will need a buyer.  You need to make your Bradenton, Sarasota home for sale look better than the other comparable homes, and the distress deal. 

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