Real Estate Bubbles

[Joe Mammy]

No. How dare those pesky banks.:roll:

But my question is still not being answered.

How many of these short sales are actually closing?

There was a good article in the WSJ last week that stated nationally only 20% are closing:
http://www.marketwatch.com/news/sto...D60-4710-BB79-2CA5169A0FE8}&dist=TNMostMailed

In our office it seems at least 50%. I find it interesting that the bottom feeders are now targeting short sales. Hey, why not? If you have the patience and do your research on the properties' mortgage(s) then you can target the ones with the best chance of closing, also an experienced short sale listing agent and a seller who discloses his progress with the loss mitigation dept of his lender is also essential.

The joke around our office is they should be called "long sales" since they take so long to close. I just put a short sale property under contract where a previous buyer backed out after waiting 60 days for an answer from the bank. The listing agent did not even tell the bank the buyer was gone and slid our offer right in and we expect to close within 30 days - an actual short short sale.

 

[Franny]

What I have noticed in a particuliar price range is the non short sales are now having to compete with short sales therefore driving down the prices to a very close bottom. Anyone else agree?

 

[SHELLY]

The seller/listing agent raised the list price from $800K to $849K. It is disclosed as a short sale. Why raise the price? You'll have to ask them...

I guess I'll have to wait until they're off their medication.

.

 

[Garner]

I don't know the reasoning behind that particular price increase, but I can come up with 2 reasons why an agent might raise the list price on a short sale property.
1 The lender has turned down an offer at the previous list price and stated that they would accept an offer at the higher price.
2 The agent needs to show the lender that they are trying to sell the home at the higher price. (That they didn't just make up a really low number) When they can't do it they can justify reducing the price to the lender, and ultimately the lender will accept a more realistic price for the property. Of course, the agent needs to stay in regular contact with the lender, telling it about showings, activity and price reductions so that it is documented in the file.