Posted on Friday, May 04, 2012
Short sales – that very tough situation when sellers bring cash to the closing and work out arrangements with their banks to forgive part of the debt. Buyer’s may or may not find a “great deal” here because many times the property is priced at or near the market.
As we enter the later stages of the real estate recovery these short sales may wane a bit, giving way to outright foreclosures as Bank’s lose patience or gain courage to move to foreclosure properties on existing properties. But as we see reported in Florida Realtor yesterday “short sales … which most real estate observers expect will outpace foreclosures in the coming year.” OK so the pros disagree with us but I am not so sure. Does it matter? Not really – it will be all about the overall inventory level anyway, by neighborhood which will drive the market.
Let’s take a further look at this.
New short sale procedures will streamline the process. Florida Realtor reports “The guidelines, required by the Federal Housing Finance Agency and effective June 15, would require servicers of mortgages backed by Freddie and Fannie to review and respond to requests for short sales within 30 calendar days of receipt of a buyer’s offer.” The research goes on to say “On average, according to recent data from foreclosure search engine RealtyTrac, short sales are taking 306 days from start to finish, compared with 113 days in 2006 as the housing market started to unravel.”
Speed – as long as it is fair – is a good thing. It primes markets. It moves transactions along. It fixes tough problems more quickly.
What should buyers and sellers really focus on though? Inventory. I know, I know a bit of a broken record here but as long as Naples, Florida real estate inventory is trending down at 8.3 months we are going to have price support and increasing buyer competition. Short sales – as tough as they are – are welcomed here to fill in for shortening supply and move though tough problems more quickly. We applaud an effort, any fair effort, to get this behind us.
TGIF everyone.
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No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Some of the data relating to real estate for sale on the NaplesBestAddresses.com website comes in part from the Broker reciprocity program of M.L.S. of Naples, Inc. The properties displayed here may not be all the properties available through the MLS reciprocity Program. This information is deemed reliable but is not guaranteed. Buyers and sellers are responsible for verifying all information about their purchase prior to closing.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
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