The main benefit of a short sale is that a short sale can be used to prevent a property from going into foreclosure and allows for faster credit recovery to the seller. That creates a win-win situation for both the bank and the seller. Banks are not in the business of owning houses and do not want houses to come back to them through the foreclosure process. This can be very costly to the bank by the time they pay an attorney to process foreclosure paperwork, have to maintain an empty property, then pay an agent to sell that property as a foreclosure.

As for the seller, while you will not get away scot free after a short sale, the benefit of a short sale is that you can recuperate financially much faster than if you experience a foreclosure. Situations do vary based on your individual circumstances but generally you will not take as big of a hit to your credit rating with a short sale vs. a foreclosure in most cases. Peace of mind… a Charlotte short sale can also provide the benefit of piece of mind knowing that you did everything in your power to work with the bank to sell the property.

Deciding to short sell your home can be a stressful and leave you feeling apprehensive.  Because your home represents the biggest investment most of us have, the decision on how to sell your home should also be very diligent and serious.

In North Carolina, every real estate agent is required by law to explain agency and provide you with the Working With Real Estate Agents Brochure at the first significant contact.  You should never disclose information about yourself or situation to an agent until you understand the relationship of who works for who.

Exclusive Right to Sell

What most home owners don’t realize is that agents that represent both buyers and sellers may be working under a conflict of interest.  After all, the agent has a legal obligation to protect the seller’s interest.  They must get the highest price possible for the seller.  Conversely if they are working as an exclusive buyer’s agent they are to negotiate the best deal for the buyer.  So when interviewing agents, before you disclose why you are selling or how much you owe on your home, remember if you do not hire that agent to list your home and they come around with a buyer, they could use what you have told them against you.  Conversely, should you try FSBO (for sale by owner) the buyer’s agent does not represent you.

The following are key differences between the responsibilities of exclusive buyer’s agents, listing agents, traditional dual agents and designated dual agents.  Before you hire a listing agent should familiarize yourself with the different types of agency so you understand the roles of an agent in different situations.  It is important to remember that in North Carolina there has to be written consent by both parties in order for a transaction to be conducted under a dual agency or designated dual agency arrangement.

1)   Representation
Exclusive buyer’s agents:  Act solely on behalf of the buyer.  Obligated to help you buy a home for the lowest possible price on the best terms and not disclose any confidential information about you without your permission.

Listing agents:  Legally bound to help their sellers to get their property sold at highest possible price.

Dual agents: (usually a listing agent) represents both seller and buyer in the same transaction non-exclusively, in other words they act as a referee, ensure everything is disclosed, get buyer and seller to come to a mutual agreement and get them to the closing table.

Designated dual agents:  This situation covers the instance when a buyer represented by an agent of the firm listing your house is interested in making an offer on your home. One agent (listing agent) represents the seller and the exclusive buyer agent represents the buyer with all the protections of an exclusivity agreement remaining in place throughout the transaction.



2)   Providing and interpreting market data/marketing and promotion of your property
Listing agents:  Should provide a complete market analysis of your home, interpreting all data for you.  Provide information on market conditions and tips on what it will take to get your home sold. Market and promote your listing in the MLS, internet and print advertising as well as provide a sign, lockbox and access to the showing appointment desk to name a few.  Your listing agent should provide a comprehensive marketing plan along with any and all information needed to understand the sales process and what services you should expect from them.


3)   Negotiation of Selling Price
Listing agents:  Will guide you through the entire negotiation and represent you throughout the negotiation process.  Including but not limited to the inspection process, appraisals to closing.


4)   Confidentiality
Listing agents:  Must disclose any material facts about the property to prospective buyers and their agents through various required disclosures, However, any sensitive information about the seller is kept confidential.

Why do so many Charlotte NC short sales not close?  In a nut shell most short sales don’t close if:

The bottom line with Charlotte NC short sales is that you need an experienced agent that has a successful track record in listing and closing short sales.  They are time consuming and require a lot of attention to detail and follow through.  If you would like a confidential interview to see if you qualify for to do a Charlotte, NC short sale, please contact Jennifer Manchester at 704-661-1147

Should I stage my Charlotte NC short sale? The short answer YES!

Many people have preconceived notions as to what home staging is. They think it is something they saw on HGTV and that it costs thousands of dollars. The truth is that home staging is simply preparing a home for sale, even a short sale. Many things that I recommend in my staging consultation are free or near free and involve little more than sweat equity.

The number one recommendation I make to every seller including Charlotte NC short sale seller’s when they are getting ready to list their home for sale is CLEAN. I have written many articles on this very subject and I can tell you that nothing sells a home faster than CLEAN. Many sellers who have fallen behind in their mortgage payments and are in need of a short sale neglect to clean their property. It is almost as if they have given up and feel that it doesn’t matter anyway. It matters, the goal in selling your Charlotte NC short sale is to sell it as fast as possible and for as much money as possible. CLEAN sells.

The number two recommendation I make to every seller including Charlotte NC short sale seller’s is DECLUTTER. There is a saying in home staying that goes, if you can’t see if you can’t sell it. Buyer’s are buying square footage and they want to see what they are buying. If an offer came in today and it was accepted you would start packing so you could move on. I always recommend to every seller to pack now and remove as many items as I recommend. Have a yard sale, donate unwanted items to charity or post your items on craiglist so we can highlight your space and get the home sold.

The number three recommendation is COLOR. I know as a Charlotte NC short sale seller you probably do not have money to paint. However, you most likely have the leftover paint from when the house was painted. Use that paint to touch up scuff marks, repair any holes or damage in your drywall and paint. If you have enough leftover neutral paint use it to repaint rooms that may have bold paint colors. Ask your family if they have any leftover neutral paint if you don’t.

The final recommendation is CURB APPEAL. Keep the lawn mowed, your hedges trimmed, if you need to touch up paint the exterior then do so. Many buyers make a decision to buy a house before they even get to the front door. CURB APPEAL is critical to getting your Charlotte NC short sale – sold.

Short Sale vs. Deed In Lieu which is the better alternative? The answer is… it depends on your situation. Without going through the details of a client’s specific situation, no one can answer that question and most certainly not your bank.

I feel it is important to discuss all the options with my potential clients even if it means they choose an option other than listing their house as a short sale and choose another route. I explain the differences between a short sale vs. a deed in lieu usually during my first meeting with a potential short sale seller. My philosophy is to be honest and let clients know everything up front so they don’t come back to me and say “why didn’t you tell me that?”.

When it comes to explaining the difference between a short sale vs a deed in lieu, I also always inform my potential clients that they will need to seek legal as well as financial advice prior to making a decision. There are legal, credit and tax implications to both options and before anyone can make an informed decision they need accurate, unbiased advice from an experienced real estate attorney and tax accountant to fully understand the journey they are considering. I know, many of you think that it is expensive and you are already struggling financially but I have found it better to spend a little money on the front end instead of a lot on the back end because you made an uninformed decision. Most attorney’s and tax professionals need no more than 1-2 hours initially to explain the legal and tax consequences of a short sale vs. deed in lieu. In my opinion it is money well spent and will prevent big surprises that can catch you off guard if you are not prepared.

Many banks also require you to attempt to short sale your property for at least 90 days before they will accept a deed in lieu, so in my opinion you need to understand both before you know which one is in your best interest.

If you would like to know more about Charlotte NC short sales or Deed In Lieu, call me today!