This entry was posted on Wednesday, May 2nd, 2007 at 8:31 pm and is filed under Quality of Life, Rants, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
What Could be Better than a Short Sale or Foreclosure?
It is difficult to avoid the subject of short sales and foreclosures when discussing real estate.
We receive ongoing emails and calls from people wanting to buy short sales and foreclosures because they want the best deal possible. They believe that the best buys can only come from bloodied sellers and lenders and that somehow real estate agents are the best bloodhounds of all (which is often true).
Theres this misconception floating around that if a lender is willing to shave off some of the debt owed on the property and sell it for less than what is owed, it must be a good buy. The same logic is also applied to foreclosures.
But reality sometimes paints a different picture.
Many of our San Diego clients have been able to get outstanding buys on real estate not through short sales or foreclosures, but from the best kept secret of all:
Motivated sellers.
And it makes a lot of sense. If, as a savvy real estate agent, I decided to sell my own home in todays market at the best price and within the shortest time frame possible, I would:
1. Stage the home.
2. Price it 3 to 5 percent under the competition. (Hear that, Freakonomics?)
In short, I would compete with any short sale or foreclosure competitors in pricing because I can, and thats because I have enough equity in my home to do so. There are also more sellers in my position than those who are in over their heads.
Hence, it makes good sense to work with a Realtor who is in tune with seller motivations and local market conditions and who keeps an ear to the ground to hear market rumblings as well as occasional agent gossip that doesnt appear in MLS descriptions.
In times like these, working with a knowledgeable and wise real estate professional may be one of the best investment decisions you could make. And when looking for the best buys in real estate, pay attention to short sales and foreclosures and look even more closely at seller motivation.
Read also:
Short Sales in the Luxury Home Market
Real Value in Real Estate Gossip
San Diego Home Home Losses Hit New High
May 4th, 2007 at 1:17 pm
This is some pretty sage advice Roberts. Why do so many sellers have difficulty understanding they will get more by asking for less at the initial listing?
May 4th, 2007 at 1:38 pm
Keith: Perhaps they are afraid of leaving something on the table–and don’t understand that it is THE MARKET that determines pricing–even with ultra-luxury properties.
Sometimes it is the seller who loves THE MARKET, and sometimes it is the buyer.
July 2nd, 2007 at 3:28 pm
Help for Texas and more
Sandy Pope
512-923-5214 cell or 512-267-2616 office
buyfromsandy@yourfinallyhome.com
Is the value of your home going down as well?
Do you owe more on your house than you could sell it for?
Has life made making your mortgage difficult, if not a strain?
You don’t have to file bankruptcy or face foreclosure. There is now a solution “Short Saleâ€. You may have heard about it, but what is it? A Short Sale occurs when a homeowner owes more on their property than the property is worth, and the bank is willing to accept less. Let me help you save your credit. Would you like more information about Short Sales or if you have any questions, please give me a call or email me.
Sandy Pope
512-923-5214 cell or 512-267-2616 office
buyfromsandy@yourfinallyhome.com
July 12th, 2007 at 3:23 pm
I have taken a series of Short Slae course for the Austin, Tx areas and have found with a system a short sale can be smooth and clean. The banks are more willing to help when the agent is educated with short sales. I am willing to help if anyone needs it 512-923-5214
July 12th, 2007 at 7:06 pm
Sandy: The short sale is certainly an alternative to foreclosure, but it certainly doesn’t guarantee no damage to a client’s credit rating. In fact, it can be equally damaging. That is one of the areas that must be negotiated with the lender.
An agent can never guarantee a clean exit via a short sale. Homeowners should be wary of anyone who promotes short sales as an easy and no-risk exit strategy from real estate ownership.
August 13th, 2007 at 1:05 pm
I agree! Keep in mind usually a homeowner is already 30 to 90 days delinquent, anyone familar with credit will know this alone will take time to correct on your credit. But if you had to pick Foreclosure over Short Sale….and there were NO OTHER OPTIONS…Go Short Sale.
There are many people who “try to HELP”. They charge you to get to the middle of the lake then leave you with no direction! Most of the phone calls I get and people I have helped I haven’t even charged! I do charge a coaching fee, but I only get paid if you have a successful closing of a short sale! PLUS I still help after the fact. I have talked to many title companies AND agents AND banks and the hardest part of Short Sales, THEY ARE NEVER THE SAME!!!! Even dealing with the same bank you get different information depending on the day and time! The benefit of a coach is at least you have their mistakes to avoid!
New Castle Real Estate, LLC is starting a Short Sale club, where we conference call once or twice a month with guest speakers who have important information about short sales and also you will have an opportunity to ask real live people questions that you have about the short sales you are doing and ask nation wide what “is really going on”! There will be a small fee to cover conference call fees, audio recordings of calls, newletters, and speakers. Everyone is invited all you need is information about a short sale or want to learn more about short sales.
Short Sales are not a state by state, this is NATIONAL!!!! A bank, is a bank, is a bank…whether you are an agent, an investor, of a individual trying to get out of your house in Texas, Florida, or California, the banks want to know the same thing.
If your interested call, you don’t have to be an agent, you just have to want to know more about this “Short Sale” thing everyone is talking about.
Call or write Sandy 512-923-5214 or buyfromsandy@pieceofaustin.com We can all learn from each other. No better teacher than real live!
July 17th, 2008 at 9:24 pm
I am a broker here in California. It is so refreshing to finaly hear someone with intelligent and correct information. If we continue to give the correct information enough times maybe someone will listen. thanks great service and we will change the market even if the government is against us….. just a personal observation.