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.

$230,000 :: 3220 E SANDY Way, Gilbert AZ, 85297

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3 beds, 2 baths
Home size: 1,325 sq ft
Lot Size: 6,534 sq ft
Added: 11/22/17, Last Updated: 12/12/17
Property Type: Single Family
MLS Number: 5691190
Community: SAN TAN RANCH PARCEL 5
Tract: SAN TAN RANCH PARCEL 5
The price of this listing was last reduced on 11/22/2017 by 3%
Status: Active


Nice home with open and light floor plan. Home features vaulted ceilings, bay window eat-in kitchen area and fireplace in the living room, as well as a behive fireplace on the back patio. Floors are tile, real wood and matching wood laminate~ no carpeting. A/C is about 4 years old. Large master suite has a walk in closet. Backyard has a fenced play pool and covered patio.

Listed with Heritage Success Realty LLC


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


$448,000 :: 3451 E ORLEANS Drive, Gilbert AZ, 85298

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3 beds, 3.5 baths
Home size: 2,843 sq ft
Lot Size: 9,583 sq ft
Added: 05/13/17, Last Updated: 12/06/17
Property Type: Single Family
MLS Number: 5605108
Community: MARBELLA VINEYARDS PHASE 2A RE
Tract: MARBELLA VINEYARDS PHASE 2A RE
The price of this listing was last increased on 11/15/2017 by 5%
Status: Conditional


Spectacular 3 bed, 3.5 bath home with spacious floorplan. Enter and note the gorgeous wood look flooring and plantation shutters throughout. Open kitchen sports tons of cabinetry, granite counters and oversized island with breakfast bar, perfect for whipping up all your favorite recipes. Bonus room can be turned into an office, or den. One of the spare bedrooms has its own attached bath and private entrance. Large master with en suite bath featuring double sinks, soaking tub, separate shower and generous walk-in closet. Versatile backyard, whether it's a cook out with the covered patio and built-in BBQ, to just relaxing alone in the heated spa or practicing your stroke in the putting green. Come see today!

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/!


$245,000 :: 1170 E VERMONT Drive, Gilbert AZ, 85295

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3 beds, 2.5 baths
Home size: 1,993 sq ft
Lot Size: 4,356 sq ft
Added: 06/05/17, Last Updated: 12/04/17
Property Type: Single Family
MLS Number: 5615697
Community: VILLAS AT THE SPECTRUM
Tract: VILLAS AT THE SPECTRUM
Status: Active


Spacious 3/2.5 home has fenced in backyard with patio. Open kitchen with pantry has sliding glass doors to backyard. Large great room includes den. Home has 2 car garage and the water softener will convey. Property is a short sale sold in as-is condition.

Listed with J.S. Real Estate, LLC


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


$340,000 :: 1584 W LAUREL Avenue, Gilbert AZ, 85233

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4 beds, 3 baths
Home size: 2,961 sq ft
Lot Size: 10,890 sq ft
Added: 06/05/17, Last Updated: 11/15/17
Property Type: Single Family
MLS Number: 5615649
Community: PLAYA DEL REY AMENDED
Tract: PLAYA DEL REY AMENDED
The price of this listing was last reduced on 6/6/2017 by 7%
Status: Active


Single level, 3 car garage, oversized corner lot situated in the gated Playa Del Rey ski lake community. Wood and tile floors, cherry cabinets, granite counters, stainless steel appliances. Soaring ceilings, surround sound, ceiling fans, security system. Split floor plan, bonus master sitting room, dual master closets, dual sinks, separate shower and tub. Oversized secondary bedrooms, gas fireplace, low maintenance landscaping.

Listed with RE/MAX Solutions


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


$265,000 :: 2615 E PATRICK Court, Gilbert AZ, 85295

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4 beds, 2.5 baths
Home size: 2,250 sq ft
Lot Size: 8,276 sq ft
Added: 02/04/16, Last Updated: 08/21/17
Property Type: Single Family
MLS Number: 5394080
Community: CROSSINGS AT CROSSROADS UNIT 1
Tract: CROSSINGS AT CROSSROADS UNIT 1
The price of this listing was last increased on 6/22/2017 by 6%
Status: Active


This is an incredible short sale opportunity** This home is a must see. No use of a third party negotiator. Offer is subject to lenders approval. Don't hesitate making an offer

Listed with RE/MAX-Preferred Choice


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