Twin Cities Foreclosures – Selling Fast (Shorts not so much)
October 28, 2009
The Minneapolis Area Association of Realtors reported this week that bank-owned properties are selling 3 times as frequently as short sales. MAAR Foreclosure vs. Short Sale News Release
Lender-owned foreclosure inventory available for sale in the Twin Cities is down 60 percent from last year, falling from an estimated 4,886 at the end of last September to 1,960 this September. Short sales are a different story—basically holding steady over the last 12 months.
The simple reason for this growing chasm is that foreclosures are selling roughly three times as frequently as short sales. Many consumers have reported considerable delays and uncertainties associated with making an offer on a short sale home. These complications are likely the main cause of the relatively quiet sales activity.
A couple things I can point out that weren’t mentioned in this article -
- While lender-owned properties were moving much faster, part of the recent reason for that is the First Time Homebuyers Credit. A short sale doesn’t give a buyer a definitive answer and closing date which means many buyers steered away from short sales fearing that they wouldn’t get a deal done by the November 30th deadline.
- Another factor in the lack of sort sales is the lack of education among Realtor’s in getting to a successful short sale outcome. The traditional Realtor has about a 30% success rate with a short sale. One of the reasons I became a Certified Distressed Property Expert (CDPE) was that by using their processes and tools we average a 90% success rate.
- If you know of someone who is struggling with a hardship and making their house payments I can help.
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[...] A previous article I wrote showing how successful short sales were falling behind successful foreclosure sales here in the Twin Cities – Foreclosures Selling Faster Than Short Sales [...]