Short sale specialists will tell you that you are missing the boat if you are not involved with these transactions in the greater Phoenix real estate market.
I could not disagree more adamantly.
Here are 7 Good Reasons not to get involved with short sales.
- Average time to get acceptance (or more likely a denial) from a lender is more than 75 days. Some agents say longer.
- There is no guarantee the offer will get accepted at or near that price because the majority of Realtor list homes at random arbitrary prices that they think or hope the banks will accept.
- estimates as high as 80%, some say 90% of offers on short sales do not consummate in a closed escrow
- 3 month waiting periods prevent buyers from looking for other houses which often result in opportunities lost.
- REO /lender owned listings are now priced as well or better than short sales. Make your offers on these homes.
- Lenders are more inclined to reject offers that do not have financing with large down payments. Many FHA offers are rejected due to high decline ratios and lengthy underwriting times.
- Banks are just not cooperative. In most cases, they prefer to reduce current REO inventory. Further, they can often collect PMI from insurers if the home actually is foreclosed upon.
I have prepared short sale packages for approval for sellers. I have negotiated contracts with bank asset managers. I have represented buyers with success. I have watched buyers wait and wait and miss out on other opportunities.
If you are thinking about buying a home, skip short sales. They Suck!
Instead, make offers on the many REO and lender owned properties on the market.
There are REO at as much as 50% discount to 2005 prices in Phoenix, Scottsdale, Carefree, Peoria and Fountain Hills.
If you want an experienced agent who can help find you an REO home, call any of these experts:
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Copyright © 2008 James Wexler *Short Sales Suck ! – 7 Reasons Why!*
Contact James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs
I am in a different market, Portland Oregon, and in my office we are 4 for 4 for short sales in the last couple of months. They were rough but they closed. You have to be persistent and not sit back and wait because it can be worse than the DMV. Anyone who gets into Short Sales needs to team up with someone with experience.
Just as real estate is difficult when we get started, short sales are a new ballgame. But of course I am talking about my market. Yours is a bit more painful.
I would agree that REO’s are more attractive but we don’t have a ton of those here…yet.