Everyone dreams about a bargain. In the real estate industry, handyman's specials, relocation sales, and yes, even foreclosure sales have been used as headlines by realtors to attract buyers in search of a property they can purchase at below market value. Nowadays, the new buzzword seems to be "short sale". I have been a real estate broker for 20 years now, and this term really has me shaking my head. My take on the process is something like this......
Realtor R approaches a seller who is having some financial challenges, and notes that the seller owes $400,000.00 on his mortgage. Realtor R feels that in today's market, the sellers home needs to be priced at $350,000 in order to be sellable in the current scheme of things. Realtor R advises the seller to list his property for $350,000, and Realtor R will negotiate with the mortgage holder (the bank) when a contract is written to accept less than is owed on the property so that the bank doesn't have to go through the process of foreclosing on the mortgage with the seller. Realtor R is negotiating a lower price for the buyer, he is letting the world know that the seller is having financial troubles, and he is asking the bank to take a loss on the mortgage that is owed, and at the same time asking the bank to also let him take his commission from the lowered procedes. Realtor R also says he is doing this to help save the sellers credit, even though the seller will have no equity from the closing. Sounds like a nice arrangement for Realtor R, and the purchaser, while the bank accepts a loss and allows for a commission, and the seller walks away from the closing with nothing.
I have been following listings that have been termed "short sales" in the multiple listing service of northern Illinois in Skokie, Lincolnwood, and West Rogers park for the past year, and what I have found is not surprising. There are currently 74 listings in these areas active in the multiple listing service with the term "short sale" in the remarks, and there have only been 3 properties that have actually closed. Not very good ratios of list to close.
What does this indicate you ask buyer's who are looking for a bargain? What this indicates to me is that if you see the term short sale in the remarks of a listing you are trying to purchase, the chances of you actually owning that property are somewhere between slim and none.
There are so many well priced properties on the market right now that can actually be bought. Why waste time and energy looking at the "short sale" pipe dream?
Go to http://coldwellbankerleader.com/ , and search our database of listings. Our sellers want their property sold!!!!
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