Wednesday, March 16, 2011

Aggressive Pricing to Move Short Sales

I talked to a colleague who relies on the RedX Real Estate Lead System the other day and he told me that in general he expects, and gets an offer within 30 days of listing a short sale. In fact he is so confident in those results that he makes it part of his listing presentation. So after hearing that statement, I had to learn more.

Here is how he does it…

First and foremost he explains that because the owner is taking a bath on the property and that the bank will do their due diligence when an offer is received, it is best practice to price the property at and just below market comps.

After getting the owners agreement, he goes about listing the property on numerous online sites. He posts the property on Zillow, Trulia and even lists issues a dedicated URL through Listing Producer. The benefit of the dedicated URL is that he minimizes the nosy neighbors who generally can just go online to snoop. Here is an example of one of his recent listings:

Next he schedules an open house, always a great way to farm an area and expand your listing base. I think he has added six listings in that neighborhood in the past month.

Finally, as part of his approach, if after the first three weeks there has been no activity, he convinces the homeowner to reduce the listing price by $10,000. This is done every two to three weeks until a magic price and buyer is found.

Obviously with a short sale getting the offer is just the beginning of the process. However you can’t argue with getting an offer that may be accepted by the banks within 30 days of every short sale listing.

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