Short Sales are on my mind these days. I have a great one listed here in Pine Bush and have had many requests to go out and look for short sale properties from buyers I have been working with too.
Let's talk the reality of value on a short sale property. Many of the buyers that I work with are under the mistaken impression that they are going to get a fantastic bargain on short sales. Some, in fact, have told me that they only want to look at short sales or foreclosures so they can get the best possible value. Well the plain truth is that most short sales will sell at market value and the process can be long and frustrating for the buyer. WHAT???
Yes the term "short sale" is used when the current homeowners owe more on the property than they can sell it for in the current market. It means that the sellers are trying to get the bank to take less for the house than the remaining mortgage.
Many people have heard that banks will take 20% - 30% less for short sale home as a rule of thumb. That does not mean 20% - 30% less than the current value of the home it means they might agree to settle with the sellers for 20% - 30 % less than the sellers currently owe the bank on the property. The bank is not inclined to give away property. They operate with the belief that they can complete the foreclosure process with all it's tax advantages for the bank and end up with as much or more value than if they let the short sale go through at a low price. I know it sounds crazy but it seems to be true.
That being said you can get some great homes that are being offered as short sales. They are often better cared for than homes that have gone through the whole foreclosure process. They may even be as "perfect" as or even better than those houses offered on the market without the short sale contingency. You just need to have patience, the ability to wait longer to take possession, and the emotional fortitude to withstand possible failure even after months of waiting. Yes they have changed laws to make the process easier but it still may be a difficult road to travel.
If you are interested in finding a perfect home for yourself in the Greater Hudson Valley of New York I would love to help you. If you are looking anywhere else in the world give me a call or send me an email so I can refer you to a great agent where you want to be.
Paddy Pizappi, Associate Broker for Buyer Representation
RJ Smith Realty - A Real Estate Solutions Company
Serving the Greater Hudson Valley of New York
from Pine Bush, NY at the corner of Orange, Ulster, and Sullivan Counties
Call or Text to 845-800-7086