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This is NOT a short sale

By Lynn Brier-De La Cruz

Real Estate Agent with Jacksonville Florida Real Estate

October 02, 2008 11:33 PM

This is NOT a short sale! As I'm booking showing appointments around Jacksonville Florida, I'm noticing that this is how we now have to market property for any sellers we're lucky enough to have who will actually receive proceeds at the closing table. In Mandarin (south Jacksonville), where I concentrate my business, there are plenty of short sale and foreclosure choices for buyers in any price range.

Most agents a year ago would have turned and run at the thought of listing a property for less than what the sellers owed on their note. These days in Florida, if you don't take the short sale and/or foreclosure listings, you ain't got no listings.

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Elizabeth Ruvo

Watson Realty Corp. - Ormond Beach, FL

BA, CRB

How right you are, Lynn! Here in Port St. Lucie we are inundated with short sales and foreclosures. Most of the buyers think that's what they want because they can get a great deal. Sometimes they can, but we need to educate the buyers to the drawbacks and help them understand that there are some great values out there on traditional sales too.

If a seller really needs to sell their home (being transferred, retiring, need more space, etc) and they have some equity in the house, they will price it to compete with the foreclosures and short sales. And you're right, the listing agents needs to include in the description that it is NOT a short sale or foreclosure. This means the sellers will fill out a "Seller's Property Disclosure", they probably will make any necessary repairs, and the buyer will be able to close in the normal 30 - 45 days.

If a buyer doesn't have several months to wait for the seller's lender(s) to make a decision on a short sale, then they shouldn't even be looking at short sales. Even if time does not matter, they still may wait for months, have the lender approve the offer and then the seller backs out when they find out the bank wants them to sign an unsecured note on the default amount.

With foreclosures the buyer needs to be very careful and have a very thorough inspection as there will be no 'Seller's Property Disclosure" and you have no idea how the previous owners maintained the property and if they might have done something malicious in their anger over losing their home. Even an brand new, never lived in home in foreclosure can have problems and are very susceptible to vandalism and theft.

So, if any Realtors have the opportunity to list a property that is NOT a short sale or disclosure, they really need to price it and market it to compete with short sales and foreclosures.

Oct 04, 2008 01:34 AM

Lynn Brier-De La Cruz

Jacksonville Florida Real Estate - Jacksonville, FL

Good morning Elizabeth,

Thank you for your informative comment. I am finding it pretty difficult to educate the buyers who ONLY want to look at short sales and foreclosures so they get a good deal. Yes, there are many good deals to find, however, there is SO much more the buyer doesn't understand going in.

I think the hardest thing to get across to buyers is the timeline factor ~ lenders do not and will not follow any timeline limitation put forth in an offer, however, buyers must follow all timelines, just as if it's a regular resale they're involved in. That doesn't sound fair to buyers because it's not. It's just the way things run...

Oct 06, 2008 12:18 AM

Marty and Laurie Gale

Utah Realty - South Jordan, UT

Utah Realty | 801-205-3500 | UtahRealtyPlace.com

Good Morning from Your Western Friend from Utah.

It is important to educated as best possible the short sale process to your buyers.

Our market is about 30% short sale and Foreclosures.

Apr 23, 2010 01:30 AM

Anonymous

Good morning Marty,

How lucky that your market is only 30% short sales and foreclosures! Much better stats than here in Florida. When I wrote that little blog, our local market was nowhere near as bad as it is now. I'm pretty sure our distress sales far outnumber our regular resales now. Not good and getting worse. I'm hangin in there, though!

Lynn

Apr 23, 2010 01:40 AM

This is NOT a short sale

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Lynn Brier-De La Cruz

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