What A Buyer Must Know About A Short Sale!

The Ins and Outs of a Short SaleAugust 2009 Distressed Sales

Short sales have gone from being a rare and infrequent occurrence a couple of years ago to a significant number of the real estate transactions in Phoenix due to the number of homeowners with negative equity that need to sell.

Simply stated,  a short sale is when the proceeds from the sale are less than the amount owed and the sale is contingent upon an acceptable agreement between the seller and the seller’s creditor(s).

The chart above furnished by The Cromford Report shows the percentage of distressed sales for each city for August 2009.  The blue bars represent the portion of total sales that were short sales.  As banks are increasingly reluctant to foreclose, short sales are on the rise.  For example, short sales accounted for more sales than bank-owned homes during August in Anthem.  And in Fountain Hills, short sales were equal to the number of foreclosure sales.

Wow – Look At That Price!

Chandler Waterfront homesBanks will not process short sales until they have a contract.  So a typical short sale may go through gradual price reductions until an offer is received.  Once received, the process can begin the cumbersome short sale process of determining the sales price and gaining the required approvals.  It does not have any correlation to the list price! The initial list price you see on the listing has NOT been approved by bank.   Short sales are routinely priced below market in order to receive an offer so the process can be initiated.  During the process, the bank requests an analysis of market value through a BPO (Broker Price Opinion) and then compares the offer price to the market value from the BPO.  If it falls too far out of  range, you can expect a counter offer after waiting for 2 – 3 months.

What Do You Mean It’s Not Available?

Another major point of  frustration can be the mechanics of searching East Lakefor a short sale.  On Realtor.com it may show as available, but in reality the short sale has an accepted offer that has been signed by the seller and forwarded to the bank for consideration.  Once an offer is received on a short sale, the MLS status should be changed to AWC, Active With Contingency, the contingency being the approval by the bank.  However, many real estate portals do not recognize the AWC status and continue to show the property as Active.  Bottom line: contact a Realtor to help you identify which properties are truly available.  Note: some websites are beginning to identify short sales that have contingent offers.

Do You Qualify As A Short Sale Buyer?

Ahwatukee waterfront homes for saleThere is no special financing required to purchase a short sale; however, any prospective buyer must understand the delays and frustrations associated with the process. Especially if you have a defined time table for finding a house, a short sale will most likely cause extreme stress, premature gray, potential marital strife,  and frequent trips to Walgreens  for extra Tylenol.  I am not kidding! Yes, you will hear about the short sale that closed in 6 weeks, but don’t count on that.  You must be flexible on the closing and have all the paperwork submitted to the lender since you’ll wait for 3 – 4 months and then all of a sudden the bank will require you to close in 18 – 24 days.

So Why Go Through All That Pain and Suffering?

With all of this said,  you might wonder why anyone would pursue a short sale property.  A good example is a house that closed 2 days ago Dobson Ranch Park Lake and Golf Coursethat a family  relocating from Wisconsin purchased.  After looking at many homes and gaining a good understanding of the area, a short sale in south Gilbert caught their eye that could not be matched.  Their patience paid off and they got the best house on the market in their opinion and mine after waiting over 3 months.  Properly negotiated, short sales can offer significant savings to the patient and flexible buyer.

For those that feel they are up to the task of considering a Phoenix area waterfront short sale, the links below will be helpful.

Phoenix Waterfront Short Sale Searches:

Phoenix Waterfront Short Sales

Gilbert Waterfront Short Sales

Chandler Waterfront Short Sales

Glendale and Peoria Waterfront Short Sales

** The good news is that any short sale with an accepted offer will be noted for the properties in the above links. **

For more details on the intriguing part of the market called short sales, please call me at 480-326-8571 for more stories information.

$325,000 :: 3571 E FAIRVIEW Street, Gilbert AZ, 85295

Property Photo

Mls Icon

3 beds, 2 baths
Home size: 2,212 sq ft
Lot Size: 7,406 sq ft
Added: 08/20/19, Last Updated: 09/20/19
Property Type: Single Family
MLS Number: 5967501
Community: PECOS PARK 2
The price of this listing was last reduced on 9/20/2019 by 13%
Status: Active

One-story 3bd/2ba,open concept home in VERY desirable area. Great room, office/den (can be converted to 4th bedroom),master split with dual sinks, garden tub, walk-in closet. Kitchen opens to a dining area and family room with vaulted ceilings, lots of cabinets and pantry. Enjoy familyget-togethers in your large living room and dining room. 3-car tandem garage. Fireplace, beautiful backyard with tropical-style pool, BBQ with bar seating, 3 patios(one covered with ceiling fan and mister). Mature landscaping, sprinkler system, lighting system, easy maintenance yard, grassy area for the kids/dogs, beautiful rosebushes, large trees, cozy front porch. Park area with tot-lot, BBQ grills, walking paths, basketball court. Great schools, close to everything - San Tan Mall, restaurants,gro

Listed with Revelation Real Estate

Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!

$569,000 :: 2907 E DERRINGER Way, Gilbert AZ, 85297

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6 beds, 3.5 baths
Home size: 5,637 sq ft
Lot Size: 12,633 sq ft
Added: 09/17/19, Last Updated: 09/17/19
Property Type: Single Family
MLS Number: 5979427
Status: Active

Welcome home to this former model home with tons of upgrades! This gorgeous home features 6 bedrooms plus an office, a loft and a media room! The gourmet kitchen is a chef's dream with beautiful granite countertops, huge breakfast bar, built in wall oven and huge pantry. The master suite features a sitting area and huge walk in closet. You will love the large soaking tub, separate shower and dual sinks in the large master bath. You don't want to miss this one! And all of this on an oversized lot that backs to the greenbelt!!

Listed with The Offer Company

Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!

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