Terms like “short sales” and “bank-owned” are on many people’s tongues and minds in the real estate industry. Let’s take a look s to look at what the data reveals about how these types of properties have been selling lately.
(Info obtained from RMLS total active listings as of July 23, 2010. View Coverage Area for RMLS)
The first graph compares total number of Active Listings to the number of Short Sale and Bank Owned properties. As you can see from the graph, the number of active short sales and bank owned properties is a small fraction of the number of total active listings.
- Total Active Listings = 31, 762 properties
- Active short sales = 3,731 properties & 11.7% of total active listings
- Active bank owned properties = 1,715 properties & 5.4% of total active listings
Now, let’s compare total pending sales in the market with pending short sales and pending bank owned properties. There were 5,094 total pending listings, 877 pending short sales and 913 pending bank owned properties.
Lastly, let’s examine sold listings:
- There were 17,751 total sold listings from the period of January 1, 2010 to June 30th, 2010
- The number of sold short sales was 1,620, just 9.1% of total sold listings
- Bank owned listings sold at a higher rate with 3,422 sales, which is approximately 19.3% of total sold listings
What Does This Mean For You?
If you’re a flexible buyer without time constraints, then you can obviously find a fabulous deal. Flexibility is key because buying a short sale or bank-owned property can take a loooong time to close.
If you’re a seller then you should be aware of the competition, but not obsessed with it. Most likely, you won’t be able to compete with their prices. So what’s a seller to do? Stress your home’s value by taking steps to set it apart:
- Have you noticed that many short sale or bank-owned properties are either vacant or not kept up? ie. tall weeds + brown grass + dark windows = lonely, dingy, unappealing property. You can make your home more desirable by maintaining it beautifully and keeping it attractive to buyers. Show buyers what a warm, loving home you have! They will want it for themselves.
- Experience tells us that drastic price-cutting STILL doesn’t bring in a buyer if there are no buyers to be had! So don’t panic and drop your price too far, which can result in your home still sitting on the market…only now with a lower price.
- Conventional sales will most likely close faster than going through the immensely complicated and paperwork-laden details of a short sale or bank owned purchase. Your transaction will progress faster and smoother, benefiting both you and the buyer. Some buyers need to purchase within a time frame and that means they will be looking at your property — not a short sale or bank owned.
Give us a call and we’ll be happy to talk in more detail about what this means for your specific buying or selling circumstances.
Call Bella Casa Real Estate Group at 503-437-9005