When you look at apartments that are on the market, and advertised as short sale opportunities, you really have to have your "comparable" homework done. The prices of apartments in a particular building, and neighborhood, will vary greatly. If you find a short sale situation, by way of the Internet in the form of ads placed by the owner, Real Estate Broker or bank, they will do very little, if anything, in order to help you discover the true value of the property. You therefore need to protect yourself by having your own representation, in the form of a Buyer's Agent. Just keep in mind that there is no cost to you associated with having your own Buyer's Agent, because the seller pays the entire commission.
Senior Real Estate Sale Associate
The short sale process is very long though with the new Gov program to streamline then, HAFA, is suppose to get much shorter and have clear and cut deadlines for each step of the process. It aslo provides for no judgements against owners
One significant difference for the owner is that the credit doesn't suffer as much as it will from a foreclosure.
Another advantage from a short sale is that keeps vvacant properties to a minimum in communites preserving values and reducing crime risks. 908240-7702 WA -Balt - MD
Yes some Short Sales take longer, and often are a little better price...but the time they take is often a function of agents who do not know what they are doing and have to re-do the materials..or they failed miserably in record keeping and did not prove the case in that presentation resulting in a rejection by the bank.
Do not mix up the concept of foreclosure and short sales...they seem similar but are anything but as far as a buyer goes.
Most short sales in Manhattan are in new condos. Buyer's typically bought during pre-construction and paid too much with little down and high mortgage and monthly fees. The market turned and so did their financial situation.
As Anna said they are not all such great bargains. In fact I have seen buildings with several units for sale. I've seen short sales priced higher than non short sales. If the sponsor/developer still has some units available for sale that is where you will find the best deals although you wouldn't know that from their listing prices.
A good local buyer's agent knows what developers/sponsors are willing to deal and knows how to negotiate with them.
The Corcoran Group
A short sale is a very different animal than a regular sale. The owner can no longer afford the payments, and what the property is currently worth is less than what is owed to the bank on the property. Therefore what they could sell it for is still short (hence the name "short sale") what is owed to the bank. The bank has to agree to this. The reason it is a lengthy process is because of the level of involvement of the seller's bank and all their red tape. The bank is really in the driver's seat ina short sale. When an offer is placed, the waiting period can be quite long to hear anything back.
Halstead Property, LLC