As a rule, I do my best to talk buyers looking for property in the Phoenix real estate market out of considering short sales. There are numerous reasons for this, the most prominent being that the purchase is less a negotiation than a guessing game.
“How about $160,000?”
“You’re getting warmer, but let’s check with the banker. Deal or no deal.”
List prices on short sales are wholely cut from the listing agent’s cloth of imagination. The price might be based on the current market. It might not. That part doesn’t really matter to the listing agent. All that matters is attracting an offer so they can then find out what price the bank’s really willing to take.
If you need proof of this phenomenon, look no further than this listing from the Phoenix area’s Arizona Regional MLS – a 3,200-square foot home listed for $550 dollars.
I kept thinking this was a rental placed in the wrong category, at least until I got to the bottom and saw the notation “Short Sale/Lender Approval Required.”
Needless to say, I don’t think the bank’s going to accept $550 for this home – not when the original mortgage was $484,000. Then again … nah.
If you’re thinking about purchasing a short sale, at least keep your mind open to bank owned properties. The prices are legit and the answers usually come in days, not weeks or months. And you won’t see any $550 hocus pocus either.
[tags]Phoenix real estate, short sales[/tags]