There are many ways to market a short sale of a property.
A short sale is a type of real estate transaction where the value of the sale is less than the mortgage on the property. This occurs when the borrower is delinquent on his payments and the bank decides that it is more profitable to sell the real estate now than to wait until it falls into foreclosure or the property value dips more. There are many ways to market these properties because they are sold for less than market value.
Traditional Real Estate Marketing
Real estate agents tasked with marketing a short sale property would be wise to first start with the traditional methods of marketing. These include newspaper advertisements, open houses and listing on the multiple listing service (MLS). Agents in wide networks such as REMAX or the National Association of Realtors (NAR) can use their own associations to further spread word of the sale. The ads should stress that it is a short sale and the price is likely below market value.
New Marketing Ideas
Along with the rest of the world, real estate has entered the Internet age. Sites like redfin.com allow users to list their own properties with minimal help from the company's agents. If you would like to short-sell your own home, this might be a good venue. Craigslist is a good resource to gauge investor interest, as it is an widely viewed site. You may also create a dedicated website for short sales and optimize it for search engine hits. This way, you can post all your short sales in one location and maximize exposure.
Investor Groups or Firms
Short sales are especially enticing to investor groups or firms. These experienced investors know that a property sold below market value can quickly be turned into a profit. Use the white pages in your town to find real estate investment firms. Call or write these firms and propose meetings with their acquisition managers. Prepare the terms and pricing structure that you will be able to provide on your short sales and propose those to the acquisition managers. The more interested groups the better, as it will drive up the price.
Marketing to Potential Short Sale Clients
If you are a real estate consultant, you may also want to initiate a short sale by finding and marketing to potential clients. You can find lists of delinquent mortgages published by municipalities. Whereas the actual short sale is a little easier because the house value is below market, convincing the current owner is more challenging because she is abandoning her home and relinquishing all potential for profit. Therefore, marketing to these individuals is more complex. It requires a phone call, brochures, flyers and even face-to-face meetings. In this case, the most successful marketers are those with personal charisma.
Tags: below market, market value, real estate, short sale, short sales