Why short sales aren’t always a good option

Why short sales aren’t always a good option

I have many clients who call looking for deals on short sales and foreclosed homes in the Prescott Arizona and the Verde Valley including Prescott Valley, Chino Valley, Dewey-Humboldt, Paulden, Mayer, Clarkdale, Cottonwood, Cornville, Lake Montezuma, Sedona and more. Many think that short sales are better deals than foreclosures, which can be the case depending on their circumstances.

What to consider?

The short sale process has many moving parts that must be aligned in order for the sale to close. The third party lender/lenders have to agree to a short sale. Many times the listing agent is not provided with pricing that is acceptable to the lender at the time the home is listed. The home will most times be priced at fair market value and pricing will be lowered until and offer comes in. This could take several months and once an offer does come in there will most likely be counter offers by the seller based on what the lender will at that point disclose they are willing to accept based on several different factors. It could take days or months still at this point to close the transaction. If you do not have time to wait…..a short sale may not be for you.

When you buy a foreclosure in the Prescott or Verde Valley area, the process is much more straightforward and the prices are set by the bank at the time the property is listed. There is no waiting, guessing, or strategizing with a foreclosure property. In today’s market the best deals are flying off the market as quickly as they are coming on. Tough part with a foreclosure today is that you may be up against many other offers. Properties are not at times selling over asking price with multiple offers. Prescott homes between 150K-250K move extremely quickly so you much have a dedicated hard working agent to keep up with this market.

Some short sales are amazing buys if you have the time and patience. They are at times less competitive as people have shied away from them due to past difficulties in getting them closed. They used to be much more difficult to get accepted but we are now seeing the lender get more streamlined and deals moving quicker. The key to success is being prepared and having a full understanding of both processes and having an agent that knows their stuff and is actively in the market on a full time daily basis.

I invite you to contact me if you know someone who is looking to sale their home!!!!

Stephanie Woods
The Stephanie Woods Team
Keller Williams Check Realty
928-237-4435
Stephwd@msn.com