{"id":4705,"date":"2008-09-28T06:38:34","date_gmt":"2008-09-28T13:38:34","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4705"},"modified":"2008-09-28T06:38:38","modified_gmt":"2008-09-28T13:38:38","slug":"in-a-declining-market-buying-a-short-sale-is-too-tall-an-order","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4705\/in-a-declining-market-buying-a-short-sale-is-too-tall-an-order\/","title":{"rendered":"In a declining market, buying a short sale is too tall an order"},"content":{"rendered":"

This is my column for this week from the Arizona Republic<\/i> (permanent link<\/a>).<\/p>\n

 
In a declining market, buying a short sale is too tall an order<\/strong><\/p>\n

Is it time to kick the stilts out from under short sales?<\/p>\n

Right now in most neighborhoods in the Phoenix area, the houses that will draw the most attention from buyers will be either short sales or lender-owned homes. They’ll be in all states of repair, but the prices will be very aggressive.<\/p>\n

And of those homes, the lender-owned homes will actually sell. They may be completely trashed, but the people whose job it is to sell those properties are judged by how quickly they can unload non-performing assets. Make an aggressive offer and you’ll get a aggressive deal.<\/p>\n

There are downsides, of course. You can inspect all you want, but don’t expect repairs. Because of this, many lender-owned homes will not qualify for FHA or VA financing. And once escrow closes, you’ll have to restore the home to livable condition.<\/p>\n

By contrast, a short-sale home might be in better condition. And it might be even more aggressively priced. The trouble is, the price in the MLS listing will be meaningless. The seller can approve that price, but the seller’s lender has to approve it as well. And the people who approve short sales aren’t judged by how quickly they sell the home but by how much money they bring in.<\/p>\n

The lender can take from 60 to 90 days to respond to your offer for a short sale home. And the response may be to counter at a higher price. If you counter back, you may wait another 30 days for a response.<\/p>\n

Here’s the worst part about this unwieldy procedure: Home prices are still falling in the Valley. You could wait months to get approval on a contract for a house that is now worth tens of thousands of dollars less than what you offered for it.<\/p>\n

My take? We need to cut short sales off at the knees. It seems foolish for Realtors to take them as listings, and beyond foolish to encourage buyers to pursue them. Lender-owned homes are offered Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is my column for this week from the Arizona Republic (permanent link).  In a declining market, buying a short sale is too tall an order Is it time to kick the stilts out from under short sales? Right now in most neighborhoods in the Phoenix area, the houses that will draw the most attention […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":{"0":"post-4705","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":9206,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9206\/now-could-be-a-good-time-to-buy-a-top-notch-home\/","url_meta":{"origin":4705,"position":0},"title":"Now Could Be A Good Time To Buy A Top-Notch Home","author":"Doug Quance","date":"July 17, 2009","format":false,"excerpt":"Some Well-Maintained & Updated Homes Are Better Values Than Foreclosures When all of the comparable homes in an area are foreclosures and short sales, you could get a really good deal on the nicer, well-maintained and updated homes. A broker recently called me regarding one of her listings. It's a\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3193,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3193\/looking-for-the-bottom-real-estate-speculators-are-establishing-the-bottom-dollar-price-for-lender-owned-homes-in-phoenix\/","url_meta":{"origin":4705,"position":1},"title":"Looking for the bottom? Real estate speculators are establishing the bottom-dollar price for lender-owned homes in Phoenix","author":"Greg Swann","date":"May 31, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Looking for the bottom? Real estate speculators are establishing the bottom-dollar price for lender-owned homes in Phoenix If you're looking for the bottom of the real estate market in Phoenix, chances are it's right up the block.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6299,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6299\/us-adults-may-not-want-foreclosed-homes-but-homebuyers-sure-do\/","url_meta":{"origin":4705,"position":2},"title":"“U.S adults” may not want foreclosed homes, but homebuyers sure do","author":"Greg Swann","date":"December 28, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0\"U.S adults\" may not want foreclosed homes, but homebuyers sure do Did you see in the news where only 47% of U.S. adults would consider buying a foreclosed home? An amazing number, isn't it? What does it\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2851,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2851\/if-you-dont-have-to-sell-into-the-current-phoenix-real-estate-market-dont-but-what-if-you-do-have-to-sell\/","url_meta":{"origin":4705,"position":3},"title":"If you don’t have to sell into the current Phoenix real estate market — don’t. But what if you do have to sell…?","author":"Greg Swann","date":"March 29, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link): \u00a0If you don't have to sell into the current Phoenix real estate market -- don't. But what if you do have to sell...? Here's a piece of real estate marketing advice that should be obvious: If you\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11498,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11498\/obamas-short-sale-program-could-put-downward-pressure-on-home-prices\/","url_meta":{"origin":4705,"position":4},"title":"Obama’s Short Sale Program could put downward pressure on home prices","author":"Al Lorenz","date":"March 8, 2010","format":false,"excerpt":"Mr. Obama's latest program for the foreclosure crisis attempts to stabilize the market in a different way than his previous attempts.\u00a0 Before, the feds tried to keep people in their homes by negotiating reduced payments through loan modifications.\u00a0 Few people were able to use the programs and of those that\u2026","rel":"","context":"In "Carnival of Real Estate"","block_context":{"text":"Carnival of Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/carnival-of-real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3200,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3200\/phoenix-real-estate-market-news-may-rocked\/","url_meta":{"origin":4705,"position":5},"title":"Phoenix real estate market news: May rocked","author":"Greg Swann","date":"June 2, 2008","format":false,"excerpt":"I tend not to cover local market news at BloodhoundBlog, but this is big, and I expect it might be replicated across the country. I'll be writing about it tomorrow for Saturday's Republic, but it won't be news-pages news for another ten days or so. Here's the news, in any\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4705"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4705\/revisions"}],"predecessor-version":[{"id":4706,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4705\/revisions\/4706"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}