Short sales are usually priced below market value because the properties need to sell, FAST. Short sales are usually in better condition than foreclosed properties since they are usually still occupied at the time of sale so the appliances and utilities are still in use.
I have a short sale listing that instantly had multiple interested parties. After going through the offers, the seller chose the highest and best offer, which was way above list price. Sounds great so far, right?
Up to that point, short sales are easy. It's the part in dealing with the banks and mitigators that can be tough. The bank mitigators duties are totally out of Real Estate Agents' hands. Sometimes they say it'll take two weeks for a reply and it takes them 4 weeks. When buyers are dealing with short sales, it's crucial that they are prepared for this type of wait. If they are prepped for this, the wait won't seem so bad. If not, it might be a good idea to move on to the next property. Short sales are not your typical real estate transaction, that's for sure!
Tell me about it! I had one that went on for 4 months and then when we were about to go to closing, we discovered the seller racked up $12,000 on a line of credit that had a zero balance 2 months earlier...ugh.
When dealing with short sales, patience and forgiveness are very much needed. Patience to go the long haul. And there is no telling when. Forgiveness for when the short sale doesnt go through that everyone is not bitter about it.
Vanna, very true. It can be frustrating for all parities involved. This is the market in many areas today.
Vanna, I am not a big fan of short sales, kinda funny that they are named "short" they sure weren't referring to the time factor involved. Hang in there, it's the market we are deaing with these days
Craig,
That must have been frustrating. Did that short sale go through?
Loreena,
That is very true. Not only do shortsales take a long time, they involve a lot of work. It is frustrating for the parties when it seems like they've done everything for that short sale home and the sale doesn't even go through!!!
Gabe,
It's true that short sales are taking up a bigger share of the real estate market. In Anchorage it hasn't been too bad, although there has been an uptrend in in Short Sales.
Gerry,
I was thinking the exact same thing. Wow, what a play on words. Short sales=longest sale in Real Estate.
=)