Short sales have been a nightmare to work so some agents avoid them like the plague. The process for buying a short sale could take anywhere from 3 to 12 months ---then not close. This process lowers the demand for short sale homes which increases the demand for the non-short sale homes. The following chart compares Non Short Sales vs. Short Sales for single family homes priced $200,000 to $800,000 in West Seattle.
In the Difference section notice how in the Closed Sales row the Short Sale homes sold for 14% lower than Non Short Sales. That equates to saving $56,000 on a $400,000 home. That is a substantial difference. But perhaps the buyer, anxious to move into their new home, will not end up with the home because sometimes just prior to closing the lienholder ends up not completing the transaction.
If a buyer has a long time frame to move, loads of patience, a tolerance for jumping through hoops and playing the waiting game they will end up with a good buy. If not then they should focus on the Non Short Sale homes.
There is some good news because some of the banks have improved the process but it still takes diligence and patience. The money saved buying a short sale I consider “sweat equity” because the buyer will be sweating through the process and will have earned the equity.
Have you had an experience with a short sale? If so please share your story.
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