I heard short sales make up 75% of the market. Is that TRUE?

MIAMI - DECEMBER 22:  Real estate agents Izzy ...

That depends. If you read my last blog you will see it is correct in the single family homes under $300K for Santa Clara County.  However, the percentage changes dramatically as the price of the home increases.

Type of Sale under 300K 300k-500K   500-750K  
Regular Sale 10% 189 34% 411 70%
REO 15% 81 15% 48 8%
Short Sale 75% 279 50% 115 20%
Misc       11 2%
total   549   585  

 

So if you are a buyer not wanting to hassle the long wait for the short sale process you will probably need to get in the $500K+ range.

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Short sales abound

short sale

Working with a couple of buyers in the lower price range, I decided to see how many ACTIVE homes were short sale properties, bank owned (REO) and regular homes in homes listed under $300K.   I decided not to check the condo/townhome group – this group has significantly higher overall numbers of available properties, however, there are more restricted loan products to this group which will affect the ability to sell.

In Santa Clara County, the number of homes less than $300K was very few compared to the number of buyers out there.  There are 78 short sales (“for sale” hopefuls), 21 bank owned properties and 13 regular sales.  So less than 10% are regular sales and 15% are bank owned.  The whopping majority are short sales.  I call them “for sale” hopefuls.  The lender has not yet approved the sales price and the owners hope they will.  While a percentage might close some never will.  I have seen properties in escrow since last summer!  Some of those have closed recently though.  So a buyer in this market might get a decent home at the decent price through the short sale process – You just need patience. 

We will see if things change next month when a proposed program to speed up the short sale process comes into being.  I will be back with you when I see how this is really affecting homes in our area.

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Does Specialty Training Help?

 

I’m just back from the National Association of Realtors Convention in San Diego.   There were lots of timely break-out sessions (and others that could put you to sleep- I walked out of one). I could tell the Realtors that showed up were we interested in learning and improving their capabilities.   I have personally found that training helped me and the clients I represent tremendously. I decided to take advantage of the class for the newest certification → SFR = Short Sale and Foreclosure Resource Certification.  With so many companies springing up, I thought it was time to take the class offered by our National Association of Realtors.  Just as I predicted I did get a LOT out of it.  One of the newest offerings by FannieMae that just came out was discussed – The Deed for Lease Program. It is to help  “minimize family displacement, deterioration of neighborhoods caused by vandalism and theft to vacant homes, and the effect these have on families, communities and home price stabilization. This progream allows qualifying borrowers of properties transferred through deed-in-lieu of foreclosure (DIL) to remain in their home and community by executing a lease of up to 12 months.”  Obviously, this would be a possible last resort.  For example, the kids could remain in their school and have a stable home to come to.  Sure the family has gone through the loss of their home but they do not also need to pull up roots and leave the home and neighborhood as well. It was also comforting to hear the lenders are getting more engaged in the short sale process rather than just foreclosing.  With training comes knowledge and with knowledge you can be more causative in life.  I like that.  Count me in! Have you have training that benefitted yourself and others? By going to the seminars/training you get the in the trenches battles that have taken place so you can strive to avoid them.                
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