This Property record is a great example of how a short sale is possible. Please take note: The property sold on 11/09/2005 for $495,000. In January 2011, the property was listed for sale at $249,000. 3 weeks later the price was dropped to $229,900. 2 weeks later, the price was dropped to $219,900. 2 weeks later, the property was pending with a contract. 1 month later, the price was dropped to $197,000 (assume the bank completed their Broker Price Opinion ‘BPO’) and determined the actual value of the home was closer to that number.
MLS# | Action | Status | Price | Date | List Agent | Agent Name | List Broker |
Sold | CS-Closed Sale | $190,000 | 6/30/2011 | ||||
Price Change | PC-Pending w/Contingencies | $197,000 | 4/14/2011 | ||||
Pending | PC-Pending w/Contingencies | $219,900 | 3/15/2011 | ||||
Price Change | A-Active | $219,900 | 2/28/2011 | ||||
Price Change | A-Active | $229,900 | 2/7/2011 | ||||
New Listing | A-Active | $249,900 | 1/18/2011 | ||||
Sold | CS-Closed Sale | $495,000 | 11/9/2005 | ||||
Pending | PC-Pending w/Contingencies | $495,000 | 7/2/2005 | ||||
Extended | A-Active | $495,000 | 6/2/2005 | ||||
New Listing | A-Active | $495,000 | 5/28/2005 |
In the meantime, There is approximately 6 weeks time that passed while the Seller’s Lender and the Seller prepared for the closing. On June 30, 2011, the property closed for $190,000.
From Listing to Closing the process took just over 5 months. This is common. Buyers of short sales require patience, but in the long run, there are nice homes at great prices available for purchase.
Other contributing factors
1. Buyers must have pre-approval from their lender prior to submitting an offer.
2. Buyers with CASH are considered strong.
3. Buyers who do need a loan to purchase, will have better success closing the deal if they have at least 20% down payment.
