That's Too Much for a Short Sale!!

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

That's Too Much for a Short Sale!!

Yes.  Words that an experienced Northern Virginia Short Sale Agent will never speak.  Why?  Because we know that Short Sales, despite the fact that the banks need to approve a short payoff of the mortgage(s) are really no different when it comes to evaluating their price.  There is no discounted value an appraiser gives to a Short Sale simply because it is a Short Sale.  Appraisers are trained to look at homes and compare their size, condition and location to the comparables in the area.  If the comparables are regular sales in largely the same condition, similar size and in the same neighborhood...well...that's what is going to be reflected in the bank's counter to the buyer.

I had a bank counter a Short Sale today.  They countered with a 12% higher sales price than the Buyer of this particular Short Sale offered.  The Buyer stated, "That's too much for a Short Sale!  What?  Are they comparing it to regular sales?"

Yes.  In fact they are.  And no wonder.  The home is in great shape, unlike the previous Short Sales in the neighborhood.  Unfortunately, in the time it took the Buyer to get an updated lender letter to us so we could get the Short Sale to the bank, some very good sales hit the market.  That renders the offer that we thought was a slightly low, but workable offer, much lower and no longer feasible with the comparison the bank did to those sales.

When you are looking to purchase a Northern Virginia Short Sale, please realize that the unrealistically low list prices that you may see on some homes are really there to get a contract to stop an impending foreclosure sale.  The bank will not accept much less than market value in our area for a Short Sale.  What does that mean to a Northern Virginia buyer?  Simple.  If the home you just viewed is a Short Sale priced at $319,000, but all the homes selling like it and around it are selling for $399,000....the bank is going to want something closer to $399,000.

If you are considering buying or selling a Short Sale, give me a call.  I've been a Northern Virginia Short Sale Agent since 2007 and can help you navigate the market with something most Short Sale buyers and sellers don't have....a realistic view point from a true Short Sale professional.

Chris Ann Cleland, Associate Broker-Licensed in Virginia, Long & Foster REALTORS®

703-402-0037, ChrisAnn@LNF.com, www.SpeakingOfShortSales.com, www.NVARealEstate.net

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Coral Gundlach 01/08/2012 08:24 AM
Topic:
Real Estate General Information
Location:
Virginia Prince William County Bristow
Groups:
Bartender, Make it a Double
Short Sale REALTORS®
Short Sales Pre Foreclosures Bankruptcy and More!
Short Sales Specialists
Virginia Foreclosures Short Sales and REO (and Pre-Foreclosures)
Tags:
northern virginia short sale agent
wells fargo short sale agent bristow va
wells fargo short sale agent gainesville va

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Rainmaker
399,788
June Tassillo
Owner/Broker RE/MAX Elite Realty - Franklin, NC
Let me help you with the next phase of your life!

Well that make perfect sense Chris Ann.  If that is what the values are in that particular area for the same home that is what it is.  You can't just say well its a short sale and the bank should take less.  Some of my buyers come up with the craziest ideas of why a home is valued at a lower price.  

January 07, 2012 08:53 PM #1
Rainmaker
1,030,862
Belinda Spillman
Aspen Lane Real Estate LLC - Aurora, CO
Your Real Estate Resource For Life!
Hi Chris. I think the public automatically assumes that short sales are going to be bargain basement prices. I try to remind people that we are shopping for a home and not just a deal. It's easy to get caught up in the hoopla of below market prices with all the bank owned and foreclosures. Luckily they have an expert like you to guide them.
January 07, 2012 09:01 PM #2
Rainmaker
514,467
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Chris Ann, I know...it is astounding to me that no matter what the deal is, if it's a short sale, REO, Foreclosure or whatever, people claim it needs to be less than asking. This, with a huge amount of factual evidence to the contrary, but just something people THINK.

I wrote 2 full price offers last year because BOTH were so well priced in the first place!

 I just hope enough people read this and follow your blog to know what is really involved in the short sale in you area!

January 07, 2012 09:51 PM #3
Rainmaker
238,471
Peggy Hughes
PHA/Peggy Hughes Associates - Professional Moving Organizer - San Francisco, CA
SF NYC LA

A major reason why buyers need an experienced agent, like yourself Chris Ann, to represent them... to help them really understand that what's going on in their particular market.  Great post.

January 07, 2012 10:18 PM #4
Rainmaker
259,789
Coral Gundlach
Century 21 Redwood Realty, Arlington Virginia - Arlington, VA

As ususal, Chris Ann, a great explanation of the Short Sale marketplace.  Thank you for keeping us and the rest of the world informed on what the standard is.

There is the perception among buyers that Short Sales are bargains and they are not.  I had someone contact me recently saying he wanted to look at short sales and foreclosures only.   Why?  He thought they would be a bargain.   Yes, some are, those that need work, but so are regular sales that need work.  I am going to have to re-blog this one!

January 08, 2012 08:19 AM #5
Rainmaker
984,596
Gary L. Waters, Broker Owner Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Melbourne, FL
Personal Service, always.

So many people think short sales are fire sales...and we know they aren't!

January 08, 2012 08:48 AM #6
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Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

June:  Short Sale in a lot of buyers minds mean fire sale, and it's just not true in a market like ours where property is moving quickly.

Belinda:  I'm sure it's different in other markets that are heavily laden with these things that just sit there on the market.  That's not Northern Virginia.  All of our homes moves fairly quickly.

Russell:  I am sure there are a few buyers out there that will read this and take it to heart. 

Peggy:  Thanks.  I love educating my clients as they learn the market.

Coral:  In all seriousness, the best bargains may be the traditional sales, particularly if they have been well maintained.  But same goes for traditional sales.  They aren't worth more just because a bank doesn't have to approve them.

Gary:  I used those exact words (fire sale) in my first response.

January 08, 2012 10:12 AM #7
Rainmaker
535,110
Curtis Van Carter
Coldwell Banker Brokers of the Valley, Yountville Napa Valley - Yountville, CA
Napa Valley's Broker Extraordinaire in Yountville

Chris Ann

Great post about another bouncing ball we have to consider in this wonderful times we are going through. Now if I can only go back to the days of writing the offer with my clients in the car based upon the number of agents we see going to the home to present. Hmm, maybe things haven't changed that much.

cheers cvc

January 08, 2012 01:10 PM #8
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

Chris Ann,  It seems that some buyers feel they deserve a discount for waiting for lender approval.  We know that lenders don't feel that way.  As you point out .... it's all about market value. 

January 08, 2012 04:22 PM #9
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Chris Ann Cleland
Long & Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Northern VA

Curtis:  What is they say?  The more things change, the more they stay the same.

Kathleen:  And the reality is that banks really have their acts so much more together these days.  I haven't had an extreme wait for Short Sale Approval for a long time.

January 08, 2012 06:31 PM #10
Rainmaker
1,209,667
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

I get that sometimes from buyers as well. "Oh, but the home around the corner is a short sale and priced at some-ridiculous-price." They just don't know any better. Their agent never educated them. You feel like saying, "well, go waste your time sitting in escrow for 4 months on that one then and get rejected," but I don't.

January 09, 2012 11:33 AM #11
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Chris Ann Cleland

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