Are you ready to short sell your home?

Not sure what a short sale is? A short sale is when you owe more than what the house will possibly fetch in the open market . This could be due to many factors, but often is a result of a rapidly declining real estate market.

For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to forgive the difference.

What's involved in a short sale?

First, figure out the true market value of your property. An experienced real estate professional, like RE/MAX Performance, will be able to give you a reasonable idea of what your home should probably sell for based on prior sales of similar houses in the neighborhood. Watch out for websites where a computer estimates your house'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 take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at closing.

Finally, get in touch with your lender and let them know of your situation. They may even have a specific department that handles short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to approve the final sale.