The Timeline of a Short Sale; Chill Pill Advice
In this KWRI monthly video production, This Month in Real Estate, Jay Papasan & Bryan Ellington walk us through an example of a short sale timeline. Nationally, foreclosures are down and short-sales are up. This may be because more and more sellers are realizing that a short-sale may be their best path out of their distressed situation.
Patience, My Friend
A national study shows that, on average, it takes a lender 62 days to respond to a short-sale offer and another 67 to close. Buyers can get a good deal on a home but because of the time frame and sometimes weeks between meaningful updates (ie. update with actual new information &/or progress from the lender), this process is not for the average buyer. Now, a good Realtor is going to check in with you every week or two in this process but that does not mean she has any new information (the “no new information” message we all love to deliver).
In Austin, TX, you may not get a steal but you will most likely pay one of the lowest prices in the neighborhood. I say “not a steal” because the lender has to approve the price and the listing agent (or sometimes a 3rd party) has to convince the lender that the price is reasonable. To the lender, it’s a numbers game; they’re already going to lose money so they are assessing how much they think they have to lose to move this property off their seller-not-making-payments list.
I run neighborhood analyses all the time and am in the habit of looking at the bottom 10% to see if they are all short sale, foreclosure, pre-ss or pre-fc or some sort of bank-owned and/or a distressed seller situation … and yes, they pretty much are one of those.
Where are Short-sales in Austin, TX?
Everywhere. All price ranges.
Not all Realtors will handle a short sale. Many shouldn’t. They need to know what they’re doing and have systems in place to methodically move through a lender’s short-sale abyss. When we have a distressed seller, we partner with the short-sale specialists in our office, giving up a good chunk of our commission in order to get the job done. We know enough to write an intelligent blog on the topic and just enough to call in the troops (we’re not proud, just trying to serve our clients). It’s a ton of work and should not be taken lightly by any party.
If we have a buyer making an offer on a short-sale, one of our first concerns is if the listing agent knows what they are doing. Our other first concern is if our buyer is really prepared to stick it out for the long haul of if they will be a flight risk if they can’t handle the wait. If you are a buyer that would call your agent every two days wanting an update, don’t buy a short sale or work with a Realtor with the backbone and skills to get you to chill.
The short sale video link: This Month in Real Estate: June 2010
The Nelson Project at Keller Williams Realty in Austin strives to bring you valuable real estate information and news through this blog and our other online resources. Find more about The Nelson Project and search for Austin homes at www.TheNelsonProject.com. if you like this blog, you may want to visit our totally useful Austin neighborhood portal. If you really like what you see, tell your friends to call us with all their Austin real estate needs.
© Julie Nelson and The Nelson Project at Keller Williams Reatly, 2008-2010. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Julie Nelson and The Nelson Project at Keller Williams Realty with appropriate and specific direction to the original content.