Sometimes I think Heather Barr at NorthPhoenixAgent.com has access to my article drafts. But given that I don’t have drafts, it must be coincidence. Or maybe it’s just that brilliant minds think alike”¦
Today Heather penned a great article, Not What It Seems, about the trials and tribulations of short sales in the Phoenix real estate market. She points out that buyers making offers on short sales are negotiating now for a home they may or may not own in some undetermined future. Heather concludes that REO (Real Estate Owned, Lender/Bank Owned, Foreclosures ”” whatever term you chose) properties are a more logical road to travel down due to the vast uncertainties of buying short sale properties.
Over the last several days, we’ve had a client involved in both a short sale and an REO property that illustrates the often ridiculous time periods involved in short sales and why home buyers may just want to consider a lender owned property vs. a short sale listing.
These dates are real. . .
May 21, 2008: Buyer places a very strong offer on a short sale listing in Maricopa. How long ago was May 21st? That’s one day shy of seventeen weeks. 118 days. Hillary Clinton won the Kentucky Primary that day, making it her fifth win in seven contests. Baseball season was just underway.
Fast forward to today, Sept 16, 2008: The buyers are still waiting to hear from the lender if the offer they made seventeen weeks ago will be accepted.
A lot can happen in seventeen weeks.
Just ask Hillary
118 days is a long time to wait to find out if you’ve bought a house.
September 10, 2008: Last Wednesday. Six days ago. Growing weary, the buyers submit an offer on a REO property.
Fast forward to today, Sept 16, 2008: The lender accepts the offer. Closing is slated for 23 days from now.
Less than 30 days after submitting an offer on a lender owned property, the buyers can be moving into their new home.
So unless you have either 1) a ton of time to sit and wait; or 2) the patience of Job, you may want to give serious consideration to avoiding attempts to purchasing a short sale. There are plenty of REO properties to choose from. Just be aware that in the current Phoenix real estate market, REO listings can move very quickly and often have multiple offers submitted. If you think you are going to get an REO by offering 70, 80, even 90% of the listing price, you will more than likely be out bid. Often times the winning offer is over the list price. Banks are utterly detached emotionally from their listings. They know what they need in regard to price, and they like quick closes. Unlike a human seller, a bank will probably not counter your low-ball offer, they will simply move on to the next offer in the stack.
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Phoenix Short Sales
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