Maple Valley area short sales (single family homes within the Tahoma School District boundaries) currently make up approximately 16% of Active Listing inventory. However short sales comprise approximately 41% of pending sales (homes under contract waiting lender approval or financing for the buyer).
So why the difference?
Partly it is due to the length of time a short sale takes to negotiate. These properties stay in escrow longer than a "regular sale" which is usually closed within 30-45 days. These regular sales flow into and out of the Pending pipeline while many short sales stay in place longer.
Another reason may very well be that short sales often must be priced more aggressively to incentivize a buyer to stick with the deal and wait out the process.
One this is clear though, if Lenders would begin preapproving short sales, prices would begin to stabilize and the escrow period would be shortened considerably.
In the meantime, my files grow thicker and one by one, we add to the number of successfully closed short sales in the Maple Valley market.
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