Short sales

They’re moving like molasses but a few are about to emerge into the sunlight and when they do, they’ll be dragging comparable prices down. I’m aware of one in our office that should close in three weeks for $600,000 less than it sold for in 2005 – about a 1 /3 drop. That will certainly hurt the values of houses in its immediate Riverside neighborhood, and there are plenty more like it coming.

13 Comments

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13 responses to “Short sales

  1. The Broker Fixer

    I’ve heard the process is complicated to secure a house in a short sale. Buyer, seller, and bank have to come to terms and it can take months. Is it rare for one close in three weeks like you refer to in this thread?

    • Oh no, that three weeks is when a deal started in November is finally scheduled to close. There is, to my knowledge, no such thing as a three week short sale. Count on six months, and be pleasantly surprised if it happens sooner.

  2. Anonymous

    The Real Estate Agents in this town must be financially running on fumes. Any difference on commisson % to agent with these short sale transactions other than the lower price point?

  3. The Broker Fixer

    That makes more sense. I imagine the whole process is nothing but contention on the part of the seller, forced out, wanting to hold up the closing? I heard one saga where the short sale deal concluded but the sellers refused to leave the premises. I bet that’s not such a rare occurrence.

  4. Wandering Through

    There are many brokers with their own personal homes on the market due to the lack of activity in the market. A lot of those houses are priced with the same unrealistic prices they recommend to their clients.

  5. Wandering Through

    That and perhaps a smidgen of delusions of grandeur thrown in for good measure.

  6. SlappedAss

    As I so eloquently stated last week, ditch your broker/agent lower the price by the same 6% and use Craigslist, FSBO.Com, Zillow and Trulia to get people in. No one knows your house like you do. No one cares about your money like you do. Realtors are great at telling clients to lower their price in order to sell. That advice is worth 6%? I knew a Realtor in Greenwich had her dump on the market for over a year, priced $200K high, this is on a $649K home, and after 11 months lowered it by $10K. Amazingly its still not sold. Better yet, its empty, she can’t rent it, can’t sell it, can’t pay for it. But won’t lower the price. These are the people we pay $30K plus of our hard earned money to for their expertise. The days of getting a listing, slapping it on the MLS and answering the phone are over. This is why so many realtors are no longer realtors. I love it though, I just bought a foreclosure, in Greenwich from one of these experts-they didn’t facilitate the deal, they owned the property, and couldn’t make the payments. Ouch.

  7. Anonymous

    I’d love to read some (florid) prose of posted descriptions of houses for sale by broker/owner !

  8. To SlappedAss: Congrats on your foreclosure purchase. You purchased a property no one wanted. Most over priced listing are because the client does not take the advice of their Realtor. Yes, I am a Realtor. If you hired a guide on a safari you would actually do what they recommend because of their experience. Not so in Real Estate. A Realtor can have twenty years in the business but the owner calls the shots. They sell when they finally listen. Good luck with Craig’s List. Let us know when it comes on the market.

  9. Cos Cobber

    WorthyChief, so if you had made a commission on the foreclosure would it suddenly become a desireable property?

    There are good realtors and bad realtors. Most are bad. I think greenwich is too sophisticated a market to forge ahead without a broker. If I lived in some tracked housing in Vegas or Orlando I’d probably look more closely at ditching the broker.

  10. pulled up in OG

    “Georges Pahud takes over the Canadian Real Estate Association at a particularly tense time in its history.

    Months away from a date with the Competition Tribunal to deal with allegations of anti-competitive practices – Ottawa’s competition watchdog is challenging CREA’s tight control of the popular Multiple Listing Service – the Vancouver-based real estate agent is tasked with guiding its defence and rebuilding the industry’s relationship with consumers. Mr. Pahud took over on Monday, the same day the association passed changes that will make it easier for consumers to post homes they intend to sell themselves on the MLS for a flat fee.”

    http://www.theglobeandmail.com/report-on-business/new-crea-chief-you-cant-get-something-for-nothing/article1511429/