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.

$425,000 :: 3451 E ORLEANS Drive, Gilbert AZ, 85298

Property Photo

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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: 10/15/17
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 reduced on 10/9/2017 by 2%
Status: Active


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/!


$270,000 :: 3435 E ANIKA Court, Gilbert AZ, 85298

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3 beds, 2 baths
Home size: 1,749 sq ft
Lot Size: 9,583 sq ft
Added: 07/24/17, Last Updated: 09/27/17
Property Type: Single Family
MLS Number: 5637189
Community: MARBELLA VINEYARDS PHASE 1
Tract: MARBELLA VINEYARDS PHASE 1
The price of this listing was last increased on 9/1/2017 by 19%
Status: Active


Bank approved short sale. Great single story home. Culdesac lot. large lot.Sold as is.

Listed with HomeSmart


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


$299,000 :: 3542 E CLAXTON Avenue, Gilbert AZ, 85297

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4 beds, 2.5 baths
Home size: 2,834 sq ft
Lot Size: 7,405 sq ft
Added: 06/30/17, Last Updated: 09/20/17
Property Type: Single Family
MLS Number: 5627318
Community: SAN TAN RANCH PARCEL 9
Tract: SAN TAN RANCH PARCEL 9
The price of this listing was last reduced on 9/7/2017 by 2%
Status: Active


This nicely-sized, roomy home features custom paint, crown molding, updated ceiling fans and light fixtures, dual windows, garden tub in master, and a loft with wood floors. Kitchen opens to family room and has redwood cabinetry, corian counters, extra large walk-in pantry area. Views out windows include lots of green trees and some mountains. Back yard has lots of room for a pool! Home is located in popular San Tan Ranch community, with highly rated schools, multiple family parks and a low HOA! This quiet neighborhood is close to lots of shopping and restaurants, including San Tan Mall area, Costco, and Harkins. Location has easy access to freeway and rest of the valley.

Listed with Century 21-Towne & Country


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 :: 1308 E MINERAL Road, Gilbert AZ, 85234

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4 beds, 3 baths
Home size: 2,230 sq ft
Lot Size: 6,969 sq ft
Added: 09/15/17, Last Updated: 09/15/17
Property Type: Single Family
MLS Number: 5660968
Community: STONECREEK TWO LOT 232-382 TR
Tract: STONECREEK TWO LOT 232-382 TR
Status: Active


Pre-Approved Short Sale Opportunity! Ready for your personal touch, this 2 story, 4 bedroom, 3 bath, 2,230 sqft home in Gilbert's Stone Creek which borders Freestone Park and is close to shopping, dining and easy access to the freeway. Vaulted ceilings, Fireplace in living room, covered patio in backyard. Full master bathroom with two sinks and separate shower and tub.

Listed with Keller Williams Realty East Valley


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/!