Monday, August 06, 2007

Are You Selling Your Home Short?

If you purchased your home in the San Fernando Valley within the last few years, it’s possible if you decide to sell now, you won’t have enough equity to cover the cost of selling your home. These costs include escrow and title fees, Realtor fees, etc…

Let’s face it, real estate agents would prefer to have a buyer purchase a home directly from the seller without getting lenders final approval. It makes the job much easier and requires less time and aggravation.

I believe homes which are labeled a “Short Sale” do sell for less than what a similar home would sell for in the area. From my own experience, when a home is being sold short, there is a good chance that the home is also in pre-foreclosure.

Selling your home short will cause a negative impact on your credit and also tax consequences. You might want to check with your accountant so you’ll know what impact it will have the next time you fill your taxes.

To learn more about short sales, click here.

Written by: Richard M. Johnston, RE/MAX OTB Estates

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