Do you need to short sell your home?

Not sure what a short sale is? A short sale is when the value of a home is less than what is owned. Short sales are often the result of prices in a market rapidly deflating.

For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to write off the difference.

What steps do I take in a short sale?

First, assess the true market value of your house. An experienced REALTOR^®, like Greater R.I. Properties, LLC, will be able to give you a reasonable idea of what your property should probably sell for based on prior sales of similar houses in the area. Be careful of websites where a computer estimates your property's market value since they may not have complete information or know important things like neighborhood trends and current listings.

Next, don't forget about your closing costs. My work in this area means I know to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.

Finally, get in touch with your lender and make them aware of your situation. They may even have a particular team that handles short sales. Ask about their exact procedures. Some lenders will be more willing to work with you than others. They may be able to lessen how much you owe or make other arrangements. Your lender will have to approve the final sale.