Short sale -Is the MLS listing helping or hurting me?
I am putting together a short sale package for a 1st mortgage. The property is only worth approx. $60000 due to the amt of repairs needed(that's what we'd like to get it for). The note is for $95000. The homeowner had it listed on MLS for 6 mo with no offers at $135000 for obvious reasons. The bank requires the listing but how do I justify his asking price to make them realize he was out of his mind asking that much? Is the MLS listing hurting or helping my case? I plan to include numerous pics in the package that show the extent of damage. Any suggestions?
Help from the "pros" would be appreciated!
I forgot to mention that the comps for this property are all over the place since part of it is residential and part is commercial. It's a house on 2 acres of commercial land but the house was grandfathered in as a residential zoning. So, I am not sure how to present the comps either. Any insight would be greatly appreciated. Thanks.
The MLS listing can help or hurt depending on how you use the information. I think it can help to prove the home was overpriced when listed by the realtor. If it needs an extensive amount of repairs, then you can have a contractor give you some estimates to include in your short sale proposal. Most investors get expensive estimates.
You can remind them of their losses if they hold onto the property longer than they need to...i.e. holding costs = monthly payments each month that goes by. You have to show them that the home is worth less than it really is.
Tanya