One key item many short sale listing agents don't know is that when you are handling an FHA Short Sale, it's absolutely critical to secure the Approval to Participate before listing the property in the MLS.
Because part of the process for the servicer to issue the Approval to Participate is to obtain an FHA appraisal.
FHA appraisers are instructed NOT to use distressed properties, unless they are the only valid comps.
The servicer is required by HUD to share the full appraisal with the listing agent.
An FHA Buyer is REQUIRED to use the same appraisal.
This means that if you list the FHA Short Sale at the FHA appraised value, an FHA buyer will be able to purchase the property at that price, secure in the knowledge that it has already appraised for the purchase price.
In a market with distressed properties, and at least for now, low inventory, this can mean a higher sales price than going the traditional short sale route, and allow a FHA Buyer to beat out the cash investors.
About the Authors - Updated 2017
If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.
Tony and Suzanne have Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!
Tony and Suzanne Marriott