What’s a short sale? – A sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan.
As we enter 2011 I am continuing to collect data on the REO (foreclosure) and shortsale activity in Lewis County.
As you can see on my Lewis County data worksheet below, over the past 30 days, 35% of properties sold were REO properties and 9% were short sales. (click to enlarge)
For sellers having a high percent of bank owned foreclosure properties available to buyers, can add to the already tough challenges of selling in today’s market. Over the last 30 days sales of REO properties sold at $60/sqft where as non REO owned properties sold at $118/sqft. That can make a difference of $87000 on the price tag of a 1500 sqft home! Keeping in mind…a large number of foreclosure properties are in need of repairs making financing difficult and those don’t always attract the same type of buyer. So many of the available foreclosure homes won’t necessarily compete with the typical seller owned home on the MLS but they are an indicator of overall health of our housing market.
For Buyers, prices along with interest rates remain low. Work with a real estate agent who can help you submit an offer that will meet standard REO seller guidelines.
Dice image credit to http://www.freedigitalphotos.net/images/view_photog.php