Imagine that... short sales sell for more than actual REOs! For those of you who know me, I've been saying this for years and the banks are just now starting to catch on. This shouldn't come as a big surprise, though the numbers may be a little skewed because, let's face it, there are some beater REOs that the banks are selling as-is. The above article talks about the amount of short sales on the rise. In California they were up to 23% of all closed residential sales. Any BPOs that I do, I try to steer clear of using any short sale comps unless I absolutely have to. Ultimately though, it's not easy to find 3 solid active and 3 solid sold comparables to use in the report.
What I've noticed in my own personal business is that banks are starting to catch on. They recognize that the foreclosure process can get pricey and the longer it goes through the process the more values fall and in the end, the banks are losing a good 10% just in value depreciation because of time. Add on the fact that the fees of a locksmith, preservation company, attorney, etc. aren't getting any lower, it makes sense to sell the short sale and get the asset off their books. One short sale I have took 2 weeks to get approval (once we had an offer of course), we're in escrow now and should close by the end of the month. Short sales are doable and banks are getting quicker at approving and moving forward with the sales than ever before.
