Buying real estate can be an exciting experience. From meeting with a real estate agent and going out to see homes to writing an offer and waiting nervously for the seller to accept it, real estate can be thrilling and full of emotions.
When it comes to buying a short sale Home for sale in Sierra Vista, that emotion of anticipation can quickly turn to one of frustration and ultimately apathy if you are not working with real estate agents — both the listing agent and your buyer’s agent — who fully understand the short sale process.
A short sale is a type of real estate where a seller is selling his or her house for less than what they owe on it. This means that their mortgage company is being asked to accept less– or to be shorted– than what they are owed. The reason for this short selling is that home was most likely purchased during Arizona’s boom where property value skyrocketed uncontrollably. When the recession hit, those value came plummeting back to earth and homeowners were left with underwater homes.
During the first couple of years of the recession, lenders were reluctant to accept offers that did not make them whole. They were slow in developing processes to handle the maelstrom of homeowners requesting their bank to accept a short sale offer. The result was that it took months and months, even years, for a home for sale in Sierra Vista to be sold short. Even now, six years after the onslaught began, banks still labor under the sheer volume of work they place upon themselves to get a short sale done.
Make no mistake. Short sales are here to stay and represent a large portion of the number of homes for sale in Sierra Vista. There is value to a buyer willing to wait the months it takes to buy a short sale: equity. Mortgage companies understand that no buyer would wait for several months to buy a home at market value when they could buy a home for sale in Arizona that is not a short sale and close in thirty days. The response of the banks is to entice a buyer with a good enough equity position that the buyer will wait out the process. Most lenders will accept a short sale offer on a home that is close to twelve to fifteen percent less than the fair market value of the home.
If you have the nerve to write an offer on a home for sale in Sierra Vista that is a short sale, set your expectations appropriately. Expect long delays. Expect the bank to counter your offer. But also expect your agent to communicate on a bi-weekly basis with the listing agent to keep you informed of the process.
Castle & Cooke Arizona offers homes for sale, new houses, real estate & new construction for residential & commercial purposes in Sierra Vista, Arizona (AZ).