Short Sales in Northeast Florida
Owe more than your home is worth and need to sell? You may have more options than you think. We'll help you find the right one.
A short sale is not a quick sale.
It's actually anything but. "Short" means the home is selling for less than what the seller owes on it, so the sale comes up short of the loan payoff. The lender has to agree to accept less, and that takes time.
60 days is rare, though we have seen it. It depends on who's negotiating, how fast the lender responds, and how quickly the buyer moves once approval comes through.
We're seeing more short sales than we have in years.
Most of the short sales we're working on right now come from homeowners who bought in the last couple of years with very little down. Values haven't moved enough to build equity, and then life happened.
- Job relocation
- Divorce
- Marriage or a growing family
- Job loss
- Military orders
- A change you didn't plan for
If that sounds like you, you're not alone, and there's no judgment here. It can get overwhelming, but you don't have to figure this out by yourself.
A short sale isn't always your best option. We'll tell you if it's not.
Just because someone calls us asking for a short sale doesn't mean that's the route we go. Before anything else, we run net sheets and look at the whole picture.
Sometimes people are surprised. A recent sale nearby may have pushed values up, or a buyer may be looking for exactly what you have. And sometimes bringing a little money to the table makes more sense than a short sale.
And not every home can be a short sale.
You can't just decide to go that direction. Your lender has to approve it and agree to accept less than what's owed. We'll help you understand whether it's possible in your situation before you commit to anything.
How we work with short sale sellers
No two short sales are the same, so there's no one-size-fits-all plan. Here's how we get started.
We sit down at the house.
This isn't really a phone conversation. The condition of the home plays a big role in what makes sense, so we like to meet in person and walk through it with you.
We learn your situation.
Have you talked to your lender about a short sale? What's your timeline? What are you hoping for? Your answers shape the plan.
We run the numbers.
Net sheets for a traditional sale and a short sale, side by side, so you can see what each path really looks like.
We build a strategy and guide you through it.
From pricing and listing to working with the lender and getting to the closing table, we're with you every step.
Some of our sellers start as a traditional sale.
We've listed homes priced to avoid a short sale, and over time, no offer came in high enough to clear what was owed. When the seller didn't have the money to bring to closing, we helped them transition to a short sale. Others knew from day one. We've guided sellers through both.
How a short sale is priced and negotiated matters. A lot.
Lenders typically won't respond to a price until there's an offer in hand. That's led to a few different pricing approaches, and they're not all good for you.
Lots of offers, then a price jump.
Back during the last housing downturn, some agents priced short sales far below market to get a stack of offers. The lender would come back with a much higher number, the buyer would walk, and the home would return to market at the bank-approved price. That costs everyone time.
A reasonable price from the start.
Pricing closer to what the home is actually worth, in hopes the lender approves the offer the first time. Fewer surprises for the buyer and a better chance the deal holds together.
The right approach depends on your situation, where the home is, how many homes are for sale nearby, and what the market's doing.
Who's negotiating changes things too.
Sometimes the lender handles the short sale directly. Other times a third-party short sale negotiator is involved, and their fees can change what a buyer ends up paying. Understanding that up front, and properly disclosing those fees, gives your sale a much better chance of making it to closing.
What does it cost the seller?
Typically, sellers don't pay much out of pocket in a short sale. Sometimes a little work is needed for a buyer's loan approval, but usually not a lot.
Lenders usually agree to cover real estate commissions, though not always all of it. Sometimes closing costs are covered too, but not always. It really depends on the scenario, and we won't know for sure until we submit an offer and see what the lender says.
Before you decide, talk to a CPA.
A short sale has real consequences. Before you go down this path, we highly recommend talking with a CPA about:
- Possible tax implications
- How it may affect your credit
- How long it could be before you can buy again
You won't be able to turn around and buy a home right away, so make sure you understand what that means for you. We're happy to share professionals we trust.
Thinking about buying a short sale?
We help buyers purchase short sales too, and because we work the listing side, we know what's going on behind the scenes. Here's what we want you to know first.
Expect months, not weeks.
You're not going to close in 30 to 45 days like a traditional sale. Be ready to wait for lender approval.
A price that's too good is a red flag.
It may mean the home was priced low to draw offers. If the lender says no, you've lost a month or more on a home you can't buy at that price.
Don't expect a huge discount.
Lenders won't give a home away when they can get more by waiting a month or two. Not in today's market, anyway.
Condition and your loan type matter.
The seller doesn't have money for repairs, and the lender won't fix things either. If your loan requires repairs, that can be a deal-breaker.
Watch for extra costs.
Between negotiator fees and post-closing repairs, some buyers actually spend more on a short sale than a traditional one.
We can send you a list.
Want to see what short sales are on the market right now? We'll pull a list and explain what to look for.
Short sale questions we hear a lot
What is a short sale?
A short sale is when a home sells for less than the seller owes on the mortgage, and the lender agrees to accept less than the full payoff. The lender has to approve both the short sale and the price.
How long does a short sale take?
In our experience, usually somewhere between 60 days and 6 months. It depends on the lender, who's negotiating, and how quickly the buyer moves once approval comes through.
Can any home be sold as a short sale?
No. The lender has to agree to it. We'll help you figure out whether a short sale is possible in your situation, and whether it's even your best option.
Does the seller pay anything in a short sale?
Typically not much out of pocket. Lenders usually agree to cover real estate commissions, though not always all of it, and sometimes closing costs. It depends on the scenario and what the lender approves.
Will a short sale affect my credit or taxes?
It can. Talk with a CPA before deciding so you understand the possible tax implications, the effect on your credit, and how long it may be before you can buy again.
Can I start as a regular sale and switch to a short sale?
Yes. We've helped sellers transition from a traditional listing to a short sale when offers didn't come in high enough to cover what was owed.
Are short sales a good deal for buyers?
Sometimes, but usually not a huge discount in today's market. Expect a longer timeline, homes sold as-is, and possible extra fees. A price that seems too good may not get lender approval.
Not sure where you stand? Let's talk.
Whether you're thinking about a short sale, already behind, or looking to buy one, give us a call. We'll listen, run the numbers, and tell you honestly what we see.
We'd love to help, and we look forward to speaking with you.
CrossView Realty · 9393 Mill Springs Dr, Suite 220, Jacksonville, FL 32257
Serving Duval, St. Johns, Clay, Nassau, and Putnam Counties
The information on this page is general and educational only. It is not legal, tax, credit, or financial advice. Short sales require lender approval, and outcomes, timelines, and costs vary by lender and situation. Please consult a qualified CPA and, where appropriate, a Florida real estate attorney before deciding to pursue a short sale. CrossView Realty is a real estate brokerage, not a law firm, lender, or tax advisor.
CrossView Realty · Brokerage License CQ1051941 · Jennifer Hendry, Broker, License BK3193836 · Licensed by the Florida Real Estate Commission. Member of the Northeast Florida Association of REALTORS® (NEFAR) and the National Association of REALTORS® (NAR).
