Hoboken Short Sales | Jersey City Short Sales | Are You Gutsy?

Hoboken Short Sales, Jersey City Short Sales - Are You Gutsy?


Recently I've been taking many of my first time home buyers, and investors to see short sale properties in the immediate area. I always get asked why the listing has been on the market for so long? 300+ 400+ days is very typical with short sales. However, it doesn't mean that the short sale hasn't received any offers in that time.

The process to get one approved is very tedious and time consuming, it requires a lot of work and effort, phone calls and paperwork. With every offer that is submitted, the entire process is reset as if it were a new sale with a bank. Paperwork has to be redrafted, and appraisers must come out again...

In the MLS:
Short sales are treated differently than regular sales. For one thing, until a property is bank approved, an agent does not change the status update on the MLS, so it can show active for quite some time depending on the turn around time. The broker comments (which consumers cannot see) will say whether an offer was submitted and whether showings are still allowed.

Short sales sell for a discount:
If you have the guts to pursue one, and the flexibility of time, then you will be rewarded. On average short sales sell about 20% below market value, and foreclosures trade on average at about 40% below market value. *

Home inspections and short sales:
You'll want to discuss with your real estate agent and attorney what the best strategy is for you as to when to conduct a home inspection. Sometimes it makes sense to do the inspection up front and weigh the costs against your offer. Other times you may hold off on the inspection until you get the bank approval ok from the lender. This strategy works well with offers that are much lower than the price to get a counter vs a listing that has already been approved as a short sale.

Not all short sales are equal:
You'll want to avoid short sale listings that are misrepresented by either an agent that is not versed in short sales, or doesn't have a support team such as an attorney, a broker or a third party negotiating the sale, and you may want to avoid those that have uncooperative sellers.

For one to be accepted, the seller has to meet many financial and distress points, so if you speak with a listing agent that is representing the seller, and they tip off to you and your agent that they are not being cooperative, then find another.



*Jeffrey Otteau Valuation Group, Short Sale Studies