What happened to short sales?

banks-know-better

The days of being in the short sale business for me are pretty much done. Unless I think I can really help a client with a good hardship, I will help you find an agent to negotiate your short sale for you.

And a message for the buyers I am working with, beware of short sales. DO NOT get your hopes up on one getting done.

A few years ago about 75% of short sales were getting approved and sold, that number is now down to 48% in Arizona. Yes, more short sales are NOT being completed than are being completed.

And the process seems to be taking long too! Sometimes a lot longer!

Here is a story of a recent short sale, I represented a buyer interested in the property, not the owner of the house.

House was listed at 239,900. Running the comps, it appeared to be dead on. I probably would have listed the house for $235-$240k if I listed the house today.

Offer was accepted and the file was submitted to toe bank.

Banks counter offer? A little more than $252,000. At least a good 5-6% above what any reasonable buyer would be willing to pay for the property.

And that my friends is why short sales are not getting approved any longer.

I have two short sales sitting active on the MLS right now waiting for new offers, both are overpriced and will continue to sit until the bank agrees to drop the price. Yes, we fight to get them to reduce the price, but they know the market much better than us obviously. </sarcasm>

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