You can find a deal, but is it a deal if you can't close? Buyers are finding out the hard way that the biggest issue affecting home hunters in the valley is not the price. The number of homes currently listed at a price that is less than what is owed to the owner's mortgage lender is massive with a capital "M". If you are going to purchase a home in the Phoenix area, you will see short sale listings. A short sale is a simple concept where a seller is attempting to avoid foreclosure by selling their home for less than what is owed on it. What is not so simple is getting the transaction to close escrow. The vast majority of these listings get offers due to their very attractive pricing, but most will never close escrow. This inevitably leaves the seller stuck with the foreclosure they hoped to avoid and the buyer completely disenchanted with the prospect of getting a great deal in today's buyer's market.
So now you have a big question itching for an answer - do these properties ever close escrow? They sure do close and the closed short sale can be an unbelievable deal! Your chances of success depend on a few things. Here are some key points to remember:
A short sale property listing is only as good as the Agent listing the property. Experience counts. Make sure the Agent representing you and your purchase has also successfully listed and closed short sales. If they have, they know what questions to ask the listing agent. How many liens are on the property? A first mortgage and a second mortgage? Is the property in default? Have foreclosure proceedings started? Is an auction date scheduled? Can the auction be postponed? What bank are we dealing with? Have you contacted them? What are that bank's policies and procedures? Answers to questions like these will surely save you time (potentially months) and heartache (lots).
Expect to wait. Although most are striving for improvement, loss mitigation and home retention departments have been unable keep pace with the inundation of short sale offers since being caught off guard 18 months ago. Most of the time, they initially respond to offers within 30-60 days after initial submission.
Other options for purchase are available as well. Sellers with plenty of equity offer quality homes and are able to sell at a realistic market price. Foreclosed properties that are now bank-owned (also known as REO or Real Estate Owned properties) provide a more customary response time and escrow process.
With the help of your Agent, you'll know your options, formulate your winning strategy, and go on to find that special deal in one of the most attractive buyer's markets in history.
About Kurt Van Ness:
Kurt Van Ness is a Certified Residential Specialist and Managing Broker at Keller Williams Realty Platinum located in the Biltmore area of Phoenix. Kurt represents serious buyers and sellers all over the Phoenix metro area - even other Realtors!
Kurt, We just wanted to let you know how much we appreciated your assistance with finding us a great home in Arizona. As veteran Realtors ourselves, we easily recognized your years of experience and high standards. Your calming attitude and professional manner allowed us to put a lot of trust in you; of course you never let us down. -Donna Hunter & Phillip Bertolino
Kurt Van Ness can be contacted at 602-553-4100 or 602-696-6200 or at kurtvanness@cox.net.
About Kurt Van Ness, CRS (602)696-6200:
Kurt Van Ness is the first Phoenix Area Investment Advisors with the National Association of Residential Real Estate Investment Advisors (NARREIA). He is a regular Market Advisor to Bank of America Securities, Credit Suisse Equity Research, Realty Times and Gary Rosenberger's Econoplay. Kurt is the Designated Broker of the highly successful Keller Williams Realty Platinum at the beautiful Biltmore Lakes. As a Certified Residential Specialist and a Certified ePRO Internet Marketing Specialist, he is prepared and qualified to assist buyers and sellers in all types of sales. Additionally, Kurt Van Ness has a Bachelors Degree from Arizona State University (1994), the priviledge of having been an Arizona State University Varsity Swimmer (1988-1991), is a recipient of the Citibank Collegiate Scholar-Athlete Award (1988) and been presented an Agent of the Year award.
Married to his wife Charlene for 10 years, he has four beautiful children, three dogs and always lots of fun.
Member of:
National Association of Realtors Arizona Association of Realtors Phoenix Association of Realtors Scottsdale Association of Realtors Prescott Association of Realtors National Association of Residential Real Estate Investment Advisors (NARREIA)
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
