Are Short Sales Your Best Option When Looking For A Northern Kentucky Home?

By
Commercial Real Estate Agent with Access Capital

Some of the most asked about properties in Northern Kentucky real estate are short sales. A short sale simply indicates an owner is selling their home in a real estate market that will not support what they owe. Many people have been led to believe that short sales are the best way to buy a property, yet that is not usually the case.

In a market where values have fallen as they have for the last 4 years, banks are less and less likely to take a offer significantly under the homes value. What many buyers do not realize is that the bank will appraise the property before approving the short sale, and they know what it is worth in today’s market. Since the lender is already taking a loss from the original mortgage, they are more likely to stick to approximate market value. I've actually seen cases where short sales are priced a little over the current market, yet people assume it is a good deal. 

Lender owned (REO) properties are often better deals. Banks and lenders are not in the business of owning real estate. They would much rather collect money. So lender owned properties are often aggressively priced, yet as of late we have noticed that they too are priced close to market value and are not willing to give up too much ground. Lender owned properties often have maintenance issues that have to be factored into the price as well. Although margins have gotten smaller, lender owned properties are still easier to purchase for a good price, than a short sale.

A more traditional option is a straight sale. Despite the buzz, a traditional seller with equity is often your best bet for a great price on a well maintained property. When looking for your next home, don’t limit your search to short sales, or lender owned properties. Your dream home may be waiting with its owner still living in it!

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All The Best,

Herb Johnson

859-372-8019 Direct Line

Herb@HerbJohnson.com  Email

www.HerbJohnson.com      Website

Buyers and Sellers wanted. Referrals Appreciated!

4895 Houston Road

Florence, Kentucky  41042

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Rainer
100,715
Sherry Peckhoon Sim
Broker/Owner, Covering the Beautiful Central Coast
Sims & Company

Very well said, Herb. In our area, most short sales are priced competitively too.  Buyers need to know that short sales are not necessarily "good deals" and thus won't be disappointed when they could not discount prices.

March 05, 2012 02:10 AM
Anonymous #2
Anonymous
Anonymous

Great blog and great job. Keep up the good work and good luck to you this year. Thanks. 

March 05, 2012 03:16 AM
Rainer
168,750
Herb Johnson
Access Capital

@ Sherry: When the price is competitive yet only 26% of short sales close it makes a compelling case to avoid them in my opinion. Thank you for your kind words.

@Josh: Thank you for the encouraging words!

All the best,

Herb

March 05, 2012 06:18 AM
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Rainer
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