Short Sales in Coconut Grove
August 5th, 2009 | categories: Coconut Grove Real Estate, Selling Real Estate in Coconut Grove
So far this year there have been 8 single family home SHORT SALES sold this year in Coconut Grove. The average length of time between the day these homes came on the market and the day they closed was 9 months.
It would be better to know how long the short sales took from the moment the first buyer submitted their offer to the closing day because this unknown factor is a huge issue for many buyers. However it is impossible to know the official number of months it takes to close a short sale because many Realtors (i.e. the not so honest ones) don’t like to change the status of their short sale from “Active” to “Pending” in order to receive more backup offers. They want those backup offers because the first buyer almost always walks away from the short sale due to the amount of time it takes to complete the process. It is usually the second or third buyer that actually ends up buying the property.
In my experience, the time between when the first offer is submitted to the bank, to the time when the property closes (usually with a different buyer), is at least 6 months (compared to 1-2 months for a normal sale).
Great Post Riley! Time of acceptance from a bank on a short sale is anyone’s guess. It truly depends on the a few factors:
1. The bank and how organized their short sale process is and how quickly a short sale negotiator will be assigned as well as the BPO (Broker Professional Opinion) and/or appraisal.
2. Another major factor is how deep into the foreclosure process the property is in on. I have heard that it costs the bank approximately 15-20% during the foreclosure process to take the property back and carry it.
3. Hiring a short sale negotiator to send over the entire package to the bank and open direct contact. It is imperative with all short sale listings that listing agents already have a short sale negotiator/lawyer in place before the agent even lists the home on the MLS. I promise you that if you have an expert negotiator in place, the 6 month average turn-around time will be significantly decreased. Here in Fort Lauderdale, I work with a law firm that does not charge my sellers an upfront fee. Instead, he works his fee into the negotiations with the bank and requires the buyer to use his company for title.
Buyers really need to understand what they are getting into. Buyers agents should also do their homework and make sure to research the short sale listings before showing these properties to their perspective clients. Patience is a virtue, but working with the RIGHT listing agents will fast-track the short sale process. I have closed a few short sale listings this year in 3 months or less. Woo Hoo!!!
Well said Riley! Prospective buyers, looking for ’steals’(and who isn’t?), have added royally to the barrage of short sale offers. Short sales can drag out for months. Foreclosures tend to move at a quicker pace(for the most part)… Buyers are wise to keep their options open (not ousting the REGULAR SALES!) There are so many good deals right now that fall into NEITHER the short sale or the foreclosure category! Sellers who have owned for years(as opposted to those who bought at the peak of the market, and are now selling at the bottom) can afford to sell at competitively priced, current market values(and still come out ahead, themselves).