Are Northern Virginia Buyers Losing Interest in Short Sales?

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Real Estate Agent with Long and Foster REALTORS®, Gainesville, VA VA License # 0225089470

Are Northern Virginia Buyers Losing Interest in Short Sales?

Are Northern Virginia Buyers Losing Interest in Short Sales?

Northern Virginia buyers are getting the message about Short Sales.  They aren't selling below market value anymore unless their condition warrants it, and sometimes not even then.  Short Sale Banks are tracking Northern Virginia market trends and want every penny they can get on the Short Sales presented to them.

Seems Short Sales, which had been filling a void of inventory, are just sitting on the market while Northern Virginia buyers are looking for move in ready homes.  And why not?  If a buyer is going to have to wait for months for an answer, or pay full market value for a home that needs work, why not go for certainty and move in ready?

Every home eventually finds its buyer, but with Short Sales, there is the added wrinkle of getting the bank to approve the contract and resulting short payoff.  Maybe 2014 will be the year the banks get a little more reasonable and stop trying for the top of the market on every single home.

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Rainer
146,252
Andrew Payne Realtor® Richmond VA Homes For Sale~804-938-5257~
Piedmont Real Estate - Richmond, VA
Richmond, VA, Real Estate, SRES®, NAR Green

Chris Ann,

It's good the hear about what Northern Virginia is doing.  Short sales can be inconvenient for buyers.  I'm glad your area is having fewer short sales.

Feb 16, 2014 11:57 AM #1
Rainer
248,200
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

Short sales seemed to be a great deal while many of the lenders waited until the homes went into foreclosure and collect the insurance and then sold the house.

Feb 16, 2014 12:04 PM #2
Rainmaker
1,027,260
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I can think of no logical reason why a buyer would pay market value for a short sale which is not a sure thing.  I would also be leary of an "as is" property which quite possibly has not been maintained well by someone who was struggling to make a house payment. There needs to be some financial incentive for the buyer.

Feb 16, 2014 07:54 PM #3
Rainmaker
3,826,669
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Good morning, Chris Ann -- given a choice and all other things being equal, I would think most buyers would opt for the standard sale over a short sale any day of the week.  

Feb 16, 2014 10:56 PM #4
Rainmaker
400,415
Alan Gross
PrimeLending, A PlainsCapital Company, Equal Housing Lender - Bethesda, MD
Loan Consultant

It sure doesn't make much sense to purchase a short sale when you have to pay market value and then wait months to see if the offer is accepted and you can go to settlement. But I guess if the house ir right it could be worth waiting for some people.

Feb 16, 2014 11:44 PM #5
Rainer
42,739
Pat McCormick
Long and Foster Manassas - Manassas, VA

Chris Ann, Given some of your other posts concerning the "reasonableness" of banks on short sales, why would they start being reasonable now?  I hope they do, though.  

Feb 16, 2014 11:59 PM #6
Rainmaker
2,191,704
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Nah, that's not gonna happen. Banks don't give a rats how long it takes us to sell these short sales that other buyers don't want because the banks take too danged long to process the paperwork. 30 days or 90 days? How long does a buyer prefer to wait? They'll go with an equity home every time unless there is some compelling reason. I have a short sale at Bank of America right now in which the bank is insisting on a value of $318K but the comps show under $300K. Even Zillow -- and yes, god forbid I will stoop so low as to throw a Zillow page at the bank when the estimate is often completely wrong -- shows $270K.

Feb 17, 2014 01:20 AM #7
Rainmaker
432,579
Shanna Hall
Real Estate Solutions - Kirkwood, MO
I love selling houses!!!St. Louis, MO 314-703-1311

Good evening Chris Ann- we are encountering the same thing is STL- there really is not much of a point to them anymore...

Feb 17, 2014 09:50 AM #8
Ambassador
3,242,770
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Andrew:  It's nice that the market has recovered to a point where they aren't making up the majority of inventory, but they are still out there.

Gerard:  This tactic will not surprise in a market with improving values.  Why not take it through foreclosure and stick an even higher price on the home?

Susan:  Yet, the banks don't see it that way.  They want the most money they can get.

Michael:  Most do.  In fact, tonight I showed a buyer a Short Sale where the bank had determined the price.  I would love to see a home inspection report on the place because the few things my untrained eye saw told me the bank wanted too much.

 

 

Feb 17, 2014 10:04 AM #9
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Alan:  If there's nothing else on the market and it's in good shape, why not?

Pat:  The only thing the bank wants is money, and the most they can get.  

Elizabeth:  You know it's bad when the best darned Sacramento Short Sale Agent has to resort to throwing Zillow in the bank's face.  Another great Short Sale Agent I know in my office got to talking with me today.  She said, "Why would they let it go now when the asset has finally started to appreciate?"  I see more foreclosures in our future.

Shanna:  That's not a bad thing because it means the market has recovered a lot of its lost equity.

Feb 17, 2014 10:07 AM #10
Rainmaker
926,706
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

I think I know a broker who said that if you put two heads of banks together, you would still end up with a person with an idiot IQ.  I will agree with that.

Feb 21, 2014 07:43 AM #11
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Ron:  You might create some atmospheric disturbence that turns into a black hole if you got all of them together.

Feb 21, 2014 11:55 AM #12
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Chris Ann Cleland

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