Short Sales 101

As we start the last quarter of 2009 a clear pattern has emerged. Short Sales on current listed homes are taking over the market place. Let’s talk about the benefits to a short sale.

Seller: 1. The foreclosure is postponed while the short sale contract is negotiated.

2. The Seller will be able to repurchase a home 1 year earlier, 3 years vs. 4 years, than in a foreclosure.

3. Seller will normally not be responsible for any of the loss that the bank incurs for their principle residence.

Buyer: 1. Purchase a home below current market value.

2. The home has not been vacant for a long period of time. Limited damage to property vs. a bank owned property.

3. Closing costs and some minor repairs can be negotiated into the contract.

Agent: 1. Higher commissions than bank owned listings.

2. Very motivated seller

3. Listing priced for a quick sale.

As with any real estate sales there are some down sides. Contracts take several months to negotiate, the banks refuse to approve some short sales and Sellers are asked to sign a personal note on a small percentage of the approvals. These options are considerably better than just letting the home go to foreclosure sale. In good, bad and flat real estate markets a certain percentage of homes must be sold. Sellers and real estate Agents must adapt to these changing market conditions to sell properties. Stay tuned into the market for the next trend.

Don DiFiore Broker/Owner

RLO Realty

303-888-8493 This e-mail address is being protected from spambots. You need JavaScript enabled to view it