About 60% of the homes on the market are short sales. These are homes that the owner owes more than the house is worth. Sometimes, these owners are upside down as much as 50%. The problem with these homes for buyers, is the time it takes to contract a purchase. What some buyers do not understand is the seller and the lender must both agree to sell the home. Not just the seller. Even if you have a contract signed by the seller, it is not enough to sell the property. The next problem which is the main one for buyers, is the lender. Most lenders are taking weeks if not months to respond to a short sale contract. We recently had a buyer place a contract on a home, only to find out 30 days later, their offer was not considered.
The best homes on the market on REO/ Bank Owned Homes. These homes can be contracted in days not weeks or months. The asset manager of the lender has full authorization to release the home at floor price. Back in February it was easy to submit an offer to a bank and haggle them down 10-20%. Now, buyers are having to up their purchase price offer just to contract a home. It’s looks like it’s rapidly turning into a sellers market.
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