Establishing fair market value is really a loose term, because the reality a home is worth only what someone is willing to pay. And sometimes people are willing to pay more than they are "worth", and sometimes less. I would recommend that you have your real estate agent assist you in determining fair market value in the exact way I do it in my own business. Simply have your agent pull up all the comparable properties near the property you are evaluating. The agent will do a good job picking homes in similar condition, similar size, etc. Then actually get in the car and go see each of those properties. Also be sure to include in your list at least the same number of properties that have already sold, and drive past each of them, you can "see" the inside through photos online. You will quickly develop a sense of the value in that area. The sold properties are the most accurate predictors of value.
The rules apply to loans owned or backed by Fannie Mae and Freddie Mac, which account for more than half of the outstanding mortgages in the United States.
In a short sale, the lender allows the borrower to sell the house for less than what is owed on the mortgage. Short sales are a great alternative to foreclosure when they work. Because of the frustration of dealing with lender delays, many borrowers give up on the process.
But that could change when the new guidelines go into effect as servicers will be required to:
Acknowledge receipt of short sale offers within three business days.
Review and respond to short sale request within 30 days after they receive the offer and the borrower's request.
Update borrowers weekly if the offer is still under review after the 30-day period.
Make a final decision on the offer by no later than 60 days after the offer and borrower's request are received."
I recommend you search on Trulia (in your locale) and read about Q&A's or Blogs on the short sale topic, see which Realtor is the most knowledgeable, and ask him/her for some references, past short sales he/she closed, see what experiences they had, how they handled some tough situations...etc.
Short Sales (indeed loooong sales) have some intricacies involved, and finding a Short Sale specialist is crucial. As a buyer, you need be prepared to wait long, patiently. Short Sales are here to stay, and won't go away anytime soon, so by dodging the bullet you're losing lots of good opportunities! I've helped number of clients win great Short Sale deals here in SF Bay Area. It does take some extra effort, at times tough negotiation, but in the end it's worth it :)
As the majority of homes being sold now are a short sale that is not a good strategy on that agents part.
I have been conducting short sales since 1990 and did one the first short sales in Ahwatukee in 2006 when the market began to fail. Many agents don't want to have to wait for sale to be approved. They are looking for the easy button. Short sales involve more work and can take 30-90 days to negotiate & close.
I am Ahwatukee agent living in Ahwatukee with a wealth of knowledge to help you find your new home. Let my 24 years real estate experience assist you ! Jacqueline Stowe Arizona's Home Experts 480-980-8286.
One important issue you do need to know, since you're moving into the area, is that short sales can easily take from four to six months to close; maybe longer. However, there are times you find a property where the process has been started, the first buyer got tired of waiting for the lender's approval and walked from the deal. In that case, the process has been started and the timing could be great for your transaction.
Finding fair market value? That's what your Realtor handles for you! They will do a market analysis on the home you are wanting to purchase and discuss those results.
If I can be of service and you're looking to purchase in the area(s) I work, please give me a call.
The main problem with short sales is that they can take a long time to close. With a short sale, the owner is asking the bank to take less money than is owed on the mortgage. In my experience with short sales, if the sales price is within 20k of the amount owed, it expedites the process. When it's over 50k, it seems to take at least 6 months. In Michigan we have an addendum that addresses all of the issues that may arise with a short sale offer and one of the items is that you can withdraw your offer if you choose. So let's say we put an offer in on a SS property and then we continue to look at properties(which I highly recommend). Then we find another home that you would like to make an offer on, we complete this addendum and move forward. The whole problem with SS is that the bank can take "forever" to respond to your offer and they may also keep looking at offers, waiting for a better one to come in. The agent needs to find out where the bank is in the process, this can make a huge difference. Obviously a very tedious process. As a licensed Realtor, I would work only with an agent that has been in the business for at least 5 years and has had multiple SS closed sales. The reason being, is that there is so much to know in this profession and each SS deal is unique. You want an agent that knows the ropes, you don't want an agent that learns this tedious process at your expense! My advice would be to contact an agent that is experienced in all phases of residential real estate sales, like myself! If you have additional questions, please don't hesitate to contact me. And if you are searching for properties in Southwest Michigan, I would consider it a privilege to earn your business.
Tina Thornton, Realtor
Realty Executives Pro Brokers
Accredited Buyers Representative
Graduate Real Estate Institute
Certified Interior Stylist
Multi-Million Dollar Producer
Find yourself a Realtor and sign an Exclusive Buyer Agency agreement, then get to know the market in your target area and be patient, if you can wait for a good deal. You will know it when you see it. Are you planning on living in the house or will you be renting it as an investment property? Your answer to this question will play a big part in determining how long it will take for you to find the right house/home. Estate sales tend to be better than short sales.
Best of luck to you.
Qualified listing agents have developed better working relationships with assest managers of the banks and the banks are expecting offers faster with realistic prices.
If your agreement with your current agent has lasped by time you get ready to purchase, please feel free to contact me!
That's a very good question. I read your previous questions as well, also very good.
The agent who represents the buyer has little or no contact with the short sale bank. The purchase requires additional disclosures to you, so that you are aware of the extended time it may take to receive a response back from the sellers' bank. Your offer is written and presented to the seller like a normal purchase and then,
if the seller accepts your offer it is forwarded to their bank. Usually the asking price is the amount the bank has already agreed to accept but if the home does not sell at that price they may reduce the asking price or consider offers of less. The lender will order a Broker Price Opinion from an agent not involved in the sale to see if the offer was fair or too low.
The process differs at each bank. If you search the name of the bank and type in short sale you will see many blogs between agents trying to help each other process short sales. They are cumbersom, time con-
suming and troublesome. Some never close other close in 60 days, but that is extremely rare.
So to answer your question; you should choose an agent who is experienced in all aspects of real estate in the area where you wish to purchase. The most important issue is value. Just because a property is a short sale does not mean it is a bargain. Ask the agent to prepare a Comparative Market Analysis for the home
you like and that will give you an idea what it is worth. Also, be sure you have been prequalified in writing.
Good luck Myra!
It is your agent's job to show you all homes that interest you. While short sales do tend to take longer, be more time consuming and take more expertise, they are closing in Arizona. I am a Certified Distress Property Expert and I have experience in both the buying and selling side of short sales. There are so many short sales in our market at this time, it is critical for Realtors to be knowledgable in the short sale process.
Ahwatukee is a great area! I would be happy to assist you in purchasing a home.
Every short sale has it's own story line. There are some that have 1 loan and some that have more than one that need to be negotiated. Some are with the same bank as an 80/20 loan. Others may be from two different banks... There is also the HOA to consider as the owner/seller may not be up to date on the dues and that needs also to be considered.
There are investor guidelines that are the holders of the note. The bank that your agent would be negotiating with is usually just the servicing agent and they have guidelines that they have to adhere to by the investors. If you are patient enough to wait for a good deal and then possibly loose it at the very end for some unforseen reason then a short sale may be a good idea. They also can go very smoothly as they may have had an offer working and all was a green light and the buyers decided for what ever reason to not go through with the transaction.
Now everyone is on board and knows what is expected for all the parties.
Short sales are not a bad deal... you just have to be understanding of the process. I hope this helped.
My best recommendation would be to find a CDPE (Certified Distress Property Expert) who has extensive training and a network of other professionals with which to "brainstorm". We have monthly webinars from our group as this is an ever evolving segment of real estate and you want to make sure the agents are following the FTC Guidelines. There are over 8,000 CDPE's in the United States. If you would like for me to recommend someone specifically, I know the questions to ask to see if they have experience as well as training. There is no charge to you for this service. Just call me or send me an email for a referral agent.
Carolyn Zeigler, CRS, CDPE, ePro
Your Realtor probably has had some bad experiences with short sales as it used to be only 10% would actually close escrow. When we work on short sales we have a number of questions we ask the listing agents to see which ones would be worth working on. I would suggest keeping the whole market open to look at but be prepared that if you look at short sales there still are a number of them that won't close due to the bank, and there are a few other complications I won't go into online, but would be happy to explain to you.
There are certainly great deals in our area and it is a great time to buy. The market has been getting busier recently.
We do work that area if you need further assistance, please feel free to contact us.
Brenda & Ron Cunningham
Recognized as one of the Top 50 Realtors in the Valley in the Phoenix Business Journal.
By the way I work as a buyers agent and also as a listing agent. Most of my business comes from my past client base so the needs fall on both sides. Why does matter to you, I think it does because I understand Short Sales from both sides. At one point in 2009 I was negotiating over 40 Short Sales.
The Short Sale experience from the listing side allows me to better serve you as your buyers agent.
Buyers agent have an obligation to serve you as the client. I always try to have an good discussion with the buyer to determine if Short Sales fit the situation at hand. For some Short Sales just won't work and for others they are just fine. Your personal needs and wants would be the determining factors in your decisions.
Ahwautukee is fantastic, great schools and a beautiful community. The nations largest municipal park borders the north side. Be a little cautious of the proposed freeway on the south side. I started my Arizona real estate career in Ahwatukee and it always feels special.
Always glad to answer questions for you.
Arizona Homes for Sale by a Guy from Iowa
The resistance you have found is because Buyer Agents often times are not willing to wait for a short sale to transpire; as they sometimes never do. Also, commissions are at a reduced rate so that takes a bite out of the Buyer Agent's income. But the bottom line is, the market is filled with short sales and if an agent wants to survive, he better get used to it!
There are some "tricks" in ensuring a short sale has the highest possibility of success. I just closed one today and I guarantee you, 99% of the agents out there would have run away screaming and would have never seen the transaction through close of escrow. The good new is, it closed and the home (in Anthem) appraised for $15K more than the list / sold price.
If you need an experienced agent to represent YOUR interests, please give me a call!
I would be happy to help with your search! I can provide detailed information on any property of interest. It would not be fair to limit yours choices outside of short sales as this is the majority of our current inventory. They do require patience, however are very obtainable. Please contact me if you would like some help.
REALTORÂ®, ABRÂ®, e-PROÂ®, SFR, RESC
Arizona Premier Realty Homes & Land
Cell: (602) 410-7660
Office: (623) 594-7680
Fax: (602) 978-0003
7200 West Bell Rd. St. I-400
Glendale, AZ 85308
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