Short Sale Analysis
A short sale is agreement between the owner and lender to sell a property and settle the debt for less than the mortgage balance. When placing a short sale on the market, a real estate agent must perform a complete analysis of the marketability of the property; the potential for a quick sale; and the value of comparable properties in neighborhood.
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Elements
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A short-sale analysis includes a market analysis that measures the property against its peers in the neighborhood as well as a statement of sales in the last six months within a mile radius of the property. These elements determine the marketability of the location.
Repairs
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Part of a short-sale analysis is to evaluate the amount and approximate cost of all required repairs to a property. The total cost of repairs should be deducted from the market value and loan amount.
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Time Frame
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The better the value of a short sale, the better the odds that it will sell quickly--improving the chances for a sale and closing, and saving the owner from foreclosure.
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References
- Photo Credit sale image by petar Ishmeriev from Fotolia.com
