Are Short Sales No Longer a Pain to Close?
A lot has changed with the pulse of real estate market here in Santa Barbara
over the last 12 months. After having a pretty steady / good market from Fall 2011 until about June 2012, the real estate market has really taken off over the last 3-5 months. Seemingly everything that is priced "simply normal" is selling and often with multiple offers. We have also seen a jump in prices across the board and most everyone is convinced we are off the bottom.
Part of what is fueling a lot of sales is the reality that short sales are no longer a burden to close
. As the market was dropping and short sales were starting to pop up everyone from 2008 until 2011, many short sales were taking 6-12 months to close and many eventually not even closing because of lack of expertise. The major reasons for the lengthy closings were that buyers were locking up properties and then walking away as the prices continued to fall and many Realtors were trying to close short sales on their own, talking to the banks directly and often getting thrown around in circles.
So what has changed?
- The real estate market has turned the corner and buyers are no longer walking away from short sales. In fact, here localy most of our short sales have multiple offers and the buyer that gets their offer accepted is very elated and "staying the course".
- Interest rates are at an all time low and this combined with the market turning the corner is causing buyers again to be very happy to find a short sale that is potentially just below market value.
- Agents are now much more knowledgable about short sales And most of the time are working with 3rd party experts to streamline the short sale process. I myself am no longer having to personally spend days dealing with the headaches of banks and not knowing who to talk to and getting thrown around from one person to the next, dealing with hours of long holds on the phone, numerous "other paper work", etc. Instead, I and other Realtors can now simply focus on clients and the sale of the home. The 3rd party short sale experts are then doing their part to get the short sale approved by the bank and / or investor.
I have worked on numerous short sales over the last years and with a few great 3rd parts short sale experts and have really noticed the change in the last year. Now most short sales from start to finish seem to be taking around 3-4 months on average and with a lot less effort and stress for everyone involved...especially the clients.
- What Part of the Santa Barbara Real Estate Market Sees the Most Distressed Sales?
- What Are The Most Crucial Components When Buying Short Sales or Foreclosures?
- Basics of The Short Sale Process
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For more information on Real Estate here in Santa Barbara, Montecito and/or our surrounding areas, as well as any other aspects of life in our wonderful town, please don’t hesitate to contact Kevin Schmidtchen
at Sotheby’s Int’l Realty.
Thank you for reading. I hope you find Santa Barbara Real Estate Voice informative. Please feel free to contact me or comment below with any thoughts.