Short Sales, Today's Reality! The National Association of Realtors predicted that in 2009 and 2010 over 60% of all properties sold will be short sales or REO properties. If a house is to be sold in today’s market, there is a very good chance that a short sale will be needed in order to get it closed.

What Is A Short Sale? A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission and the seller is unwilling or unable to cover the difference.

How Do I Know It’s Short? You need to calculate the outstanding debt as well as the costs associated with the sale — include everything from the mortgage balance to the transfer taxes to the real estate commission. Next you need to provide the lender with an estimate of “fair market value”. This will give you an estimate of the net proceeds that will be realized, often called the net sheet.

How Do I Determine “Fair Market Value”? By definition, you or your agent can’t determine fair market value because you both have a vested interest in the property and sale. Your lender knows that and depends on appraisal reports prepared by qualified and competent licensed appraisers. Keep in mind that agents are licensed to sell houses and receive commissions for their efforts. Appraisers are licensed to provide an independent value analysis.

Get Ahead of the Curve! Order an appraisal from an appraiser licensed and experienced with Hi-Value properties. Not all appraisers are qualified or approved for the Hi-Value properties found on Nantucket. Once the appraisal is completed, you can submit the appraisal report to your lender along with the marketing plan that you and your agent have prepared. Now, you or your agent can discuss your property value with confidence when negotiating your short sale marketing price with the lender.

What is the Cost? Appraisal reports and formats vary, but from experience we generally know what format your lender requires for your property type. For non-complex properties, an interior appraisal can cost as little as $395.00. More complex properties can be quoted on a case by case basis. We can provide a number of billing options including credit card and 90 day terms for most all property owners.