As I've mentioned in the past, I just can't seem to avoid bank owned homes and short sales.  They seem to be everywhere in the South Bay and we even see a continuing rise in places like Manhattan Beach.  As many buyers, and especially first time home buyers, are looking for the great deal, that often inevitably leads to short sales.  A short sale is basically a sale in which the homeowner owes more money than they can sell their home for and therefore need bank approval to allow the sale to go through.  That's where the problems start. Today I'll focus on the good aspects of the short sale and tomorrow the bad as they're certainly intertwined.

The Good

Without a doubt a short sale can make for an incredible deal for a buyer willing to wait out the process and remain patient.  As the seller isn't walking away with any proceeds, the realtor doesn't need to do the usual dance of trying to get the seller to be reasonable on the value of their home while trying not to offend them with the reality of the market.  So in essence, it's usually the realtor who sets the price, and it's their goal to get as much interest as possible...often listing the home for far less than the actual value.  This often leads to multiple offers and some discouraged buyers who have heard media reports that everything can be purchased for well below asking price...regardless of what that price is.  As I tell many of my clients who may not have the highest offer, is that this is a marathon...and not a sprint.  While there are other offers, there is also a very good chance that many, or all, of the interested buyers will eventually drop out, lose interest, or find something else.  Often short sales can be even better deals than bank owned, or REO properties as they're usually jumped on immediately with offers often well over asking price.

So if you're not in a hurry....short sales may be the opportunity for you.

Keith Kyle is a licensed Realtor and e-Pro with South Bay Brokers in Manhattan Beach.  He serves his clients throughout the South Bay and his websites KeithKyleHomes.com and FindYourSouthBayHome.comoffer the most comprehensive real estate websites in the South Bay with free MLS access, current home listings, open houses, recent home sales information and more.  Keith can be reached at 310-251-2344 or by email at info@KeithKyleHomes.com