Is a Short Sale a Bargain?
Many people are under the impression that homes that are being sold as a “short sale,” are priced lower than market value. The short sale is new phenomenon where the mortgage holder is the ultimate decision maker on price, terms, and all aspects of the real estate transaction. But hey, many say, they are selling “short,” and therefore it’s worth the hassle to get the bargain.
It is “short?” Here are two nearly identical properties: both built in the last 6 years, both 3 bedroom, 2 bath, tile roofs, pool, and on Gulf Access canals. One priced at $534,900; the other at $449,000. Which is the short sale?
The $534,900 house is the short sale. A bargain? The $449,000 house is the one that was priced right and a “normal” transaction. It sold for $400,000. (If you would like MLS details on either of these properties, let us know and we’d be happy to send it to you.)
It can take weeks or months before the lender will even respond an offer. So that means a buyer and seller are on hold while the lender keeps the property on the market. All the usual protocols of offer, counteroffer, and acceptance are thrown out the window; the lender holds the cards. This means a lot of confusion, frustration, and sometimes heartache.
There’s a lot more to know about short sales, and we advise proceeding with eyes wide open if you entertain this option. And, yep, we know this is a controversial topic and undoubtedly we’ll get some passionate feedback on this one.