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How Do You Know if That Short Sale Will Get Approved?

By
Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

In the Sacramento MLS this morning, I noticed we have 157 active short sale listings in Sacramento County, and 2,269 active regular listings. Short sale listings -- not counting those that may never close but are pending in some fashion -- make up about 6% of our total listing inventory, which is extremely low. It means given the choice between buying a short sale or buying a regular home, many buyers, especially those who want to close quickly, will pass on a short sale opportunity.

If they do decide to buy a short sale, they often want to hit the price really hard, thinking they should get some kind of compensation for whatever reason, or that maybe the bank won't approve the short sale. Low-balled short sales are pretty much doomed and a complete waste of time. You've gotta be reasonable and know what the bank will want to get it approved.

You can read more in my personal blog today about Ways to Know a Bank Will Approve a Short Sale.

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

Comments(5)

Morris Massre
Pembroke Pines, FL
Real Estate Instructor Broward County Florida

Look, I agree with you, but try telling that to those buyers who watch a lot of television.  If it's a short sale then it's already a good deal.

Feb 10, 2015 02:59 AM
Tammy Adams ~ Realtor / Podcaster
Maricopa Real Estate Co - Maricopa, AZ
A Maricopa Agent who Works, Lives & Loves Maricopa

So many folks think they can lowball a short sale. All that does it let everyone know what the "real" price will be. Unfortunately, some agents price low to start only to disappoint some folks that are truly looking for a new home and not an investment. I had one the other day that went from $90,000 up to $192,000! Both sides were crazy..lol  The true comp value is more like $140,000 on a good day.  :-)

Feb 10, 2015 06:15 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

It takes a special breed of cat to successfully market and sell Short Sale Listings, Elizabeth. I'm not one of 'em. . .BUT, you are!

Feb 10, 2015 11:33 AM
James Dray
Fathom Realty - Bentonville, AR

I had actually had two short sales.  The first one went so smooth I was surprised.  The second one not so much.  I'll work them but really I don't want to. 

Feb 10, 2015 07:25 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Thank goodness you said it. I also think sellers are better served in a Short Sale if they have an experience Short Sale Agent doing the work themselves.  A third party negotiator is playing numbers.  If you throw enough files against the wall, some will pay out.  You and I actually interview our sellers to make sure there is a case for Short Sale, and know what list prices are likely to be acceptable to the banks and sellers potential tax consequences.

Feb 11, 2015 10:30 AM