Short sales are a great way to sell a property that is valued less than what is owed on the proeprty, and the financial benefits far outweigh losing the home to foreclosure. But what happens when a listing agent lists a property so far below asking price? Ttypically the property creates a lot if interest, and buyers get really excited. Is this healthy?
The answer is NO. Buyers are often disappointed when the property fails to close, because banks do not sell at ridiculously low prices far below market value. Why would they? They're already taking a huge loss, and banks at this point will choose what's best for them. If they lose less in foreclosure, that's the route they'll take. If more than one loan is invloved, there are 2 or more banks, PMI companies, etc. that can kill the deal. So the seller is left holding the bag and facing foreclosure, meanwhile the buyer has lost the Steal they thought they were getting, and other opportunities have passed the buyer by.
Nobody wins. We've written an article enititled Artificial List Prices Affecting the SW Florida Real Estate Market that outlines what happens in a short sale. It's important that sellers interview agents and set a realistic list price. The article also touches on how those misleading list prices affect the market in other unintended ways.
You can view our latest Future of Real Estate Video Show. This past week we interviewed Lee County Florida Sheriff Mike Scott and asked him questions about Florida and Arizona's immigration laws and how that affects how his department acts from a law enforcement perspective. you may remember Sheriff Scott who made national news during the 2008 presidential campaign about Barack Obama.
