Time and time again, I run across Port St. Lucie homes in the MLS that have multiple offers on them within 5- 10 days of being on the market, many of these homes end up selling for thousands over the listing price. All of them are REOs (bank owned).   As soon as an REO hits the MLS, there are countless offers within days. Many of these homes end up going into a “highest and best” situation where the top bidders have until 5:00 p.m. on a given day to submit their absolute highest offer on the property, with the highest bidder winning. Although the REO rush has cooled a little over the last 3-4 months, in extreme cases I have seen these homes go for $35,000 over the listing price!  When you study the REO sales in an area, the “move-in condition” properties are almost always sold above list price. I’ve even seen bank owned, newer homes that needed an entire kitchen, master bath, and A/C system replaced, sold at listing prices comparable to ”move-in”  home prices. Most of these homes are an absolute steal, even above the listing price. Sadly, a lot of them could have been bought at a potentially lower price, and with less competition as a short sale. The seller could have avoided foreclosure altogether had he gone that route.

When I look at  these homes, I’ve noticed many of them have been on the market before being listed as an REO. They were listed as “short sales.”  These homes sat on the market at similar listing prices without so much as a few showings. When I see a home go into foreclosure because the owner just gave up and walked, that’s one thing. When I see a home go into foreclosure after a destitute owner did everything they could to avoid foreclosure, it’s an entirely different and tragic situation.

 

Blind To Opportunity © Scott Maxwell - Fotolia.com
© Scott Maxwell – Fotolia.com

The current buyer’s negative  perception of short sales seems to be caused by the incompetence of a few big lenders, and by agents without training listing a property for short sale. The big lenders that are causing most of the problems can be handled with tenacity and knowledge. If an agent has the training and experience to market and negotiate short sales, very few of that agents deals will fail. There are always outside forces that can keep a deal from closing, and the same is true for short sales, but if done correctly, a short sale can be one of the best deals out there.  In this market, however, there seems to be a psychological aspect to buyers competing over REO listings. They seem to enjoy the competition and want to win the “highest and best” game, even if they pay thousands over list price. If the purchase is an investment, or primary home, wouldn’t it be a better business move to go into short sales that have less competition, but give the buyer an opportunity to get a better deal? A well qualified short sale listing can be done in 60-90 days. There are now a couple of banks (soon merging into one) that are approving prices in 7 days and closing in 45 days. In the end, the extra amount of time needed to buy short sales makes up for itself in the potentially thousands of dollars saved over buying REOs.

I have been working with short sales for over 4 years. I have a CDPE designation (Certified Distressed Property Expert) and the National Association of Realtors SFR certification (Short Sales and Foreclosure Certification Program ) . The designation and extra training gives me much more clout with the banks when negotiating a short sale.  It gives me and my team a great deal of satisfaction to keep a seller(s) from going into foreclosure, and helping buyers get a great deal.   CDPE’s mission statement is “Stopping One Foreclosure at a Time.” Check out my Foreclosure Help & Prevention web site and download FREE reports that will help explain the short sale process and the steps you need to take. You can visit that site here - www.PortStLucieForeclosureHelp.com

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Filed under: Avoiding Foreclosure • Loan modifications • Our Listings • Real Estate • Short Sales

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