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A Short Sale Is Not For Everyone

By
Real Estate Agent with RE/MAX Results MN#20344949 WI#93113-94

Short sales tend to be the best deals for buyers in most Real Estate markets.  One of the main reasons is that the banks take so darn long to process them that only a small percentage of buyers are willing to deal with the painfully long wait.

Some buyers try this lengthy and frustrating transactions only to find that they nearly go crazy and have a nervous breakdown.  According to this article from RISMedia more and more First Time Buyers are losing interest in short sales.

Short sales are not for everyone but they normally work out if the listing agent knows what they are doing and if the buyers agent is able to keep the buyers expectations real.  Its then up to the buyers to stay extremely patient.  

I tell all buyers that your looking at 3-4 months on getting a short sale approved and closed on average.  I tell them 2-3 months if they are lucky. Can they go faster? Do they go longer? The answer to both of those is YES.

If you can't take loose ended time frames that ALMOST ALWAYS go longer then hoped then a short sale is not for you. If you have to be out of your current place by a certain time and that time is under 3 months then a short sale is not likely for you.  

Short sales are the best deals in most cases, but they will drive you crazy.  So take the good with the bad.

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Chuck Carstensen is a Realtor with RE/MAX Results in Elk River and Cambridge, MN.  Helping buyers, sellers and investors in great Minnesota counties like Sherburne, Isanti, Wright, Anoka, Chisago, Hennipen and Mille Lacs. He is a Certified Distressed Property Expert (CDPE).

Contact Chuck by emailing him at chuck.carstensen@results.net or by phone at 612-290-3809. 

 

Kimberley Kelly, SFR, HAFA, GREEN
HK Lane, Christie's International Affiliate, 760-285-3578 - La Quinta, CA
I do Real Estate like I played polo-to WIN!

Short Sale Buyers are a special breed.  Short Sale Sellers NEED a special breed of Listing Agent..no short cuts!  Here in the Palm Springs Valley area, I am seeing 3-4 month close times with my Short Sale Listings on average..but as you said, some are longer and some are shorter.  No guarantees!

Sep 27, 2011 02:04 AM
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Chuck Loose ended time frames is really the key here. You have to be able to roll with the time puc=nches. If you cannot then a short sale is not for you

Sep 27, 2011 02:05 AM
Dave Gubler
Mission Viejo, Foothill Ranch, Lake Forest, Ladera Ranch - Lake Forest, CA
Realtor | Orange County

Chuck you are correct... they are not for everyone.  In my markets short sales end up selling at a 10 - 12% discount relative to standard sales on average.  For the patient and mentally tough buyer this is a great way to save.  It can be a long road full of ups and downs and misinformation along the way.  The key, in my opinion, is to set expectations correctly from the outset.

Sep 27, 2011 03:17 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Buyers and sellers need to understand upfront what they are up against in a short sale...or buy

Sep 27, 2011 03:32 AM
Michael Collins
*ROCK REALTY|Broker|Realtor|Real Estate|WI Short Sale Agent* - Janesville, WI
CDPE, SFR , Wisconsin Short Sale Specialist Realto

Thanks for the post Chuck. I have been finding that the short sale process has been improved with most banks. The timeline is still pretty long though. 2-3 months would be a best case scenario.

Keep up the good work up there in Minnesota! (sorry about the Vikings this year)

Sep 27, 2011 03:38 AM
Jill Kipnis
Move, Inc. - Westlake Village, CA

Chuck, good post. Short sales can certainly be good deals, but buyers have to go into them with the proper expectations. Many short sales do not close, either because the lender takes too long to respond or the seller ultimately rejects the offer. Short sales may, however, be perfect for first-time home buyers who have a month-to-month rental, with no set time for closing or moving into their first home.

Sep 27, 2011 06:08 AM
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

Chuck, you have the patience of a saint, so I'm sure that's why you're so successful with short sales. Also being straight-up with your buyers about the process is a big plus.

Sep 27, 2011 06:13 AM