The long and short of it
by The Real Estate Dance
Durning my recent short sale, foreclosure certification class I realized just how important actual experience is. I am not one that learns by reading or listening, I must “do” to fully understand, hands on. Having just done a short sale with one of my clients, I was all too familiar with the process. It was with Bank of America using their equator system.
I watched in amazement when we got to the part about pricing short sales based on time on the market and what a lender is willing to take. Everyone thought you could get a distressed property for such a deal. The banks look for 88% of fair market value at first then that decreases slightly as time goes on. Everyone in class was shocked.
After a few minutes of watching the instructor get bombarded with questions about short sales not being such deals at all, I raised my hand. I explained that a short sale has nothing to do with the property, the property isn’t in distress, the people are, due to a change in financial circumstances, job loss, illness, and so on. It was one of those ah hah moments.
My recent short sale was a stunning house, in fact, it sold well above other houses in the area due to the upgrades and condition.
Yes, there are some wonderful deals out there if you have time, money and the energy to put into a house fixing it up, but, if you desire a move in ready home and are eager to close, avoid a short sale. It’s anything but short.