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I had dinner last night with some REALTOR friends from RE/MAX 100 Realty in historic downtown St. Augustine. Of course our conversation turned to the real estate market,(you cant put agents togther and NOT talk about the market) and Short Sales dominated the discussion. Teresa Mercurio, the Broker/owner of RE/MAX 100 was one of the first Certified Distressed Property Experts, CDPE, in the St. Augustine area and is considered an expert on the subject. I think we all agreed that short sales are frustrating for the Sellers, the Buyers and the agents involved.
There are many Short Sales that never get to closing. The listing agent really needs to know what they are doing. They must know if the Seller meets the Lender's Short Sale candidate criteria. They must have the proper knowledge to help the seller compile a complete Short Sale package. Finally they must have knowledge of the local real estate market and the ability to overcome a dispute with the with the bank's negotiator over fair market value.
A Buyer may put in a low offer, the Seller may accept it, and everyone may celebrate the home is now under contract! Yeah, the Buyer thinks they got a steal of a deal, the Seller thinks the mortgage burden may finally be off their backs and the agent is planning a trip to the Bahamas with the commission they will make.
Then they wait. And they wait some more. The Lender asks the Seller for more documentation. We all know what happens next.... they wait some more. Meanwhile, the Buyer gets the home inspected by a professional Home Inspector. The inspector finds that since the seller has vacated the home over a year ago, the A/C is bad, there are plumbing issues and the roof needs to be replaced. Not a problem says the Buyer, we got this steal of a deal price on the home, we can definitely put the money in for repairs.
Months go by, and the Lender finally comes back denying to except the low price and counters much higher.
The buyer's steal of a deal is no longer such a deal and they walk away from the transaction. Now everyone is unhappy. The Seller still has the burden, the agent is not going to the Bahamas and the buyers have no where to live.
Months were wasted during that Short Sale fiasco. The Buyers could have instead, used that time to build a brand new home, select all the beautiful options they love with the colors that make smile. Within a few short months the new is built, the Buyers are thrilled with their new home with a warranty and the agent gets to go to the Caribbean after all. Everyone is happy!
This is why buying a new home over a short sale makes sense.
Thinking of new homes in St. Augustine? Visit a Landon Home community today. Building in Kings Trace, Oakbrook and custom homes on your lot.
Marjorie Taylor, is a licensed Real Estate Broker representing Landon Homes and is a Certified Stager with VIP Staging and Home Management. A community leader, Taylor is past Chairman of the St. Augustine St. Johns County Board of REALTORS Technology Committee; and active in the Women's Council of REALTORS, she is professionally educated and trained, having earned the designations of CDPE, CRS, CSP, e-PRO, GREEN, GRI, TRC. View the Model Homes in St. Augustine
Marjorie is passionate aboutSt. Augustine and the needs of her clients. 2010 Entrepreneur of the Year - Women’s Council of REALTORS St. Augustine Regional.
Author Bio: Marjorie Taylor, is a licensed Real Estate Broker representing Landon Homes. Marjorie is a Certified Stager with VIP Staging and Home Management. A community leader, Taylor is past Chairman of the St. Augustine St. Johns County Board of REALTORS Technology Committee; involved with the St. Augustine Regional Women's Council of REALTORS and she is professionally educated and trained, earning the designations of CDPE, CRS, CSP, e-PRO, GREEN, GRI, TRC.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.