?? Short Sales and Foreclosures ? Yes, they are having an impact on value! But what about the future?? When talking real estate, we are often asked; Can I get a good deal on a short sale or foreclosure?
2012 buyers are plentiful and they are focused first on the increase in short sales and foreclosures in our market, and this is having an impact on property values from Ocean Front to residential neighborhoods throughout the Coastal Region. On land, there has been as much a 50% depreciation in value from 2005, and for residential properties, our analysis offers a decrease in value of more than 25%.
However, the good news for the overall market is that there is not a large inventory of these properties on the market, and, buyers are focusing on other properties, and inventory of the entire market has been on the decline since 2011.
Short sales and foreclosures have been on the rise in Sussex County over the last year.? Sussex County short sale closings increased from 54 in 2010 to 141 in 2011, and currently, there are 166 short sale listings on the market, and 87 bank owned properties (those that have been foreclosed on), about 6% of the properties listed for sale.
The increase in short sales and foreclosures will be a key factor in pricing properties for sale in 2012.? Many homeowners that have held back from selling in hopes of market price improvements may not be able to hold on any longer.? Others will realize the need to move on and pursue a short sale in 2012.? And those selling outright will have to understand the value of real estate has been impacted by the short sales and foreclosures that have occurred.
The Andy Staton Group stays committed to working with all types of buyers and sellers and has developed significant expertise in the short sale and foreclosure markets.? We have structured the sale of dozens of short sales for both sellers and buyers, and recently for bank sales, or foreclosed properties. Almost every prospective buyer we encounter today asks about short sale and bank owned property opportunities.
In the past, a short sale was quite a daunting challenge.? Fortunately, short sales have now become considerably easier, depending on the financial institution and the number of loans that encumber the property.? Bank sales of foreclosed properties are even more efficient, with the buyer often getting an answer on offers in just a few days.
For sellers involved in short sales, the transaction is not as difficult as you might expect.? Few lenders allow approval of a short sale listing price in advance of receiving an offer from a potential buyer.? Most lenders require an offer before they will consider a short sale request.? Our extensive expertise in the short sale process also allows us to assist buyer clients who are interested in purchasing a short sale property.? Knowing the process from both sides, gives buyers and sellers an added advantage in this type of transaction.
Give us a call if you would like more information about how we can support you in the short sale process.