I'm sorry to not be able to be more specific but every home is unique and the answer would need to be more specific to a specific home.
Have an Amazing day!
SFH (morgan hill area)
Control group=regular sales
n=136 homes, $275.76/ sf gla median=$784K sold/asked $ ratio: 97.8%
n=83 homes, $229.78/sf gla median=$435K sold/asked $ ratio= 98.4%
n=140 homes, $239.31/sf gla median=$498k sold/priced $ ratio=98.5%
The answer based on last twelve months (Mar 2011- Feb 2012) is expected.
Sam Shueh ,mba, cdpe, pe
Regular sales and clean REOs can still command a premium for dollars per square feet, 5-10% at most, because the demand for them is higher which drives up their price. Patient buyers can often find deals if they are willing to wait out a short-sale. However, now that prices are rebounding, while waiting for your short-sale to get approved the market (and rates) may move up and if your offer isn't approved you are left shopping in a higher priced market.
Regarding the differential between asking and sold price, in my own experience short-sales and REOs often sell for more than original asking because REOs are usually priced very competitively to get them sold fast. Short-sales are often priced too low to get a quick offer then the lender asks for more. In contrast many "equity" sellers think there house is worth more than it is and insist on listing too high.
I hope this answers your question.
Broker-owner / Realtor
Vice President - South County Realtors Alliance
Hope this helps
Pat Chadwell, broker
Certified Distress Property Expert.
Realty World - Residential Specialists
408-927-6565 x 11
CRS, SRES, CDPE, CIAS, ePro, SFR