Short Sales – The Great Investor Opportunity

Short Sales in Arizona have a come a long way in processing times and successfully closing.Short Sale processing times are now averaging about 45 days for the Big 3 lenders, Bank of America, Chase, & Wells Fargo.

The Phoenix Arizona market has changed drastically over the first quarter of 2011 and we are now down to a 3.8 month supply of inventory indicating great demand and stiff competition for homes.  There is a great opportunity for investors to purchase short sale homes at higher discounts than REO (Bank-Owned) homes.  The opportunity with a Short Sale listing is that an investor would not encounter the multiple offers involved and current bidding wars on REO’s.  The investor is not tying up any funds while the short sale is being negotiated which allows them to continue to look for other homes if interested in purchasing multiple properties.  Most lender’s will pay up to a 3% closing cost contribution on Short Sale Listings as well.  Therefore, the cost to acquire a Short Sale home can be less than an Bank Owned Home and less than a home bought at auction, since there are typically no closing cost fees paid on an Arizona Bank Owned Home and no auction bid fees associated with Short Sales.  Auction bid fees can range from $3,000 and up.  These are addition acquisition costs that will lower an investor’s Cap Rate.

 For more information regarding Short Sales, Bank-Owned Homes, or Bid Services, please call us today at 480-355-8645.