Do you really want a short sale?
Hi,
One of the buzz words in real estate this year is "short sale". As the market has declined, more people have been forced to sell at prices below what they owe on the home. With that, a new sub industry popped up with so-called short sale experts.
For those of you who don't know what a short sale is, basically, it is a sale of a home for less than the amount owed as stated above. In this case, the homeowner puts the home on the market, and upon accepting an offer, submits that offer to their mortgage holder for their approval. The lender may agree to take less than is owed, but in doing so, may also avoid having to foreclose on the property, which in many cases will cost them even more. The ability of the owner to do the short sale needs to be approved up front by the lender.
Many buyers and agents stay away from short sales because it may take the lender months to respond to an offer. Most buyers don't have that amount of patience. Therefore, many of the buyers are investors taking advantage of the decline in prices. The main reason I am mentioning all of this is I heard some staggering statistics in a class a few days ago. The instructor said that statistics from a title company that is the leader in short sale and foreclosure transactions in the Pheoenix market show that anywhere from 70-90% of short sale transactions are never completed. That is a wide range, so I can't be sure how accurate it is. I knew it was high but that is amazing. There are a few reasons for this including buyer's withdrawing due to impatience, lenders not willing to negotiate and lenders choosing to not to forestall the foreclosure process.
Additionally, the amount of time it takes to complete a short sale has not really gotten better. They often take at least 3 months, and sometimes have gone up to a year!. Some banks won't even look at the file until it is 90 days old, and may even use short sales as a measure of how many foreclosures they will have in the future.
Keep in mind that now is a great time to buy. Prices are down all over. Foreclosures are leading the market. And there are some nice properties to be had at bargain prices. If you are looking for a sweet deal, but don't want to wait, there are plenty of properties to choose from. For more info, please feel free to contact me.
Adam Tarr, ABR,ePro, Assoc. Broker
RE/MAX Excalibur
Scottsdale, AZ
480-236-7374
adam@WeAreAZRealEstate.com