Phoenix Market Trends - Listing Success Rate as of Mid-June 2013
The Listing Success Rate is a great tool to understand the current state of the Real Estate market in general. This particular indicator gives a lot of specific insight to the transactional type of each home on the market - HUD properties, Normal properties, REO (Bank-owned) properties, and Short-sale properties are all included in this perspective.
Reviewing the chart below, there are higher percentages of Listing Success Rates for HUD and REO (Bank-owned) properties. There are a few reasons as to why this is the case: first, these two types of transactions are typically a specific type of home buyer.
In the case of purchasing a HUD home, the Lenders in these transaction types are extremely strict with how they qualify potential buyers and the process is one of constant updating and following up. These types of transactions are so strict, that by the time the closing process comes around, everything is typically a "go" from start to finish.
REO (Bank-owned) properties are also a specific type of transaction that puts the Buyer directly in line with the Lender/Seller, allowing the two to negotiate to a point and typically have a higher efficiency of closing a deal. When the Lender/Seller is trying to rid itself of debt in a property, it typically only wants to get the money that is owed on a particular property, not necessarily after the money that the home is worth. For example, if a home is worth $200K, but there is only a $50K note with the Lender, they will sell the property for $50K to collect what is owed. This is one reason that these homes sell more often than not; as, there is typically not a problem with value and both parties are eager to get the deal done.
The other two transaction types shown on the chart above are for Normal and Short-sale transaction types. These are not as successful transaction types in the Metro Phoenix area and nationally, as well - simply because these are the two transaction types that are more difficult to complete.
When a property is going through a Normal transactional process, there are a lot of different factors that come into play and could potentially be deal-breakers in the middle or towards the end of the process. Bank qualifiers, appraisals, inspections, are all factors that could be the potential breeze that blows over the house of cards.
The Short-sale transactional process is the one with the worst percentages in the Listing Success Rate, simply put because these transactions are a long and frustrating process where often times Buyers will either walk away from a property or the Sellers cannot meet extra requirements.
Overall, it is a GREAT time to sell your home. If you have been considering selling your home, give Anna Banana a call today. Anna will prepare your FREE PROPERTY ANALYSIS REPORT and help you achieve your home or investment property's full potential.
Phoenix Market Trends - Listing Success Rate as of Mid-June 2013
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