My general advice to buyers is to stay away from short sales. Below are a few reasons why:
* They can take many months (up to 6 months in some cases) just to get a response from the bank - which can be an acceptance, counter-offer or rejection.
* If the property has more than one lien holder, you are at the mercy and timing of both. Plus both will have to agree on how much go to the jr lien holders, which rarely occurs. Chances of this ones closing are even smaller.
* In most instances the seller keeps the property active (which can be done by several ways without violating any rules) and can have well over 20 offers on the same property.
* Many times the bank counter-offers with a higher price and/or the bids drive the price up. It is very common for short sales to sell for over asking price. That is why on a short sale the listing price might be viewed more like a start bidding point rather than the real price.
* Based on the latest figures only about 10% of short sales ever close. If you add to that the fact that each property can have multiple bids, you will see that each individual offer could have less than a 1% chance of getting the property after waiting many months for it.
- Foreclosures in most cases are a lot better option for the buyer. The listed price has been approved by the bank and they usually respond in 3 to 5 days (in some rare cases they might take up to 2 weeks, but that is not common). Biddings are also getting more common every day on foreclosures, although that is still not always the case.
Cooley Station is a great community, but there are also sevral factors to consider when buying in that community.
Hopefully you and your agent will be discussing all the different concerns (too many to list or discuss here), before you move forward.
Carlos J. Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -