Put Sacramento Short Sales on the Market Prior to Default Notice
Unlike the hey days of pre-2012 in Sacramento, we are not seeing a lot of short sales in the area anymore. About 4% of all the listings in Sacramento County at the moment are active short sales, as compared to about 75% a while back. Having a small percentage of homes for sale that are underwater is good news for just about everybody, though, except that short sale seller who needs to sell her home.
In case you’re wondering, and I suspect you probably are, my own caseload of short sales has dramatically decreased, but I still manage to sell and negotiate a large number of Sacramento short sales. I thought the number was much smaller than it is, but so far this year almost 1 out of every 4 sales I’ve closed has been a short sale. It means I am still pulling in a huge chunk of the short sale business and most likely continue to rank as the best Sacramento short sale agent in town.
Even though this month my closed sales for the month of July should top $6 million, only two of those homes were short sales, and they were small price tags. It is possible that July could be my biggest month this year. One of those two sales, though, was a real struggle in West Sacramento. The main problem was the dog urine smell in the back bedroom, compounded by additional problems: a rotting pergola that needed to be removed, additional pest work that was required and a broken HVAC. Not exactly every home buyer’s dream home.
On top of this, as expected, Bank of America had threatened to release the servicing, and the investor Fannie Mae demanded a higher sales price, which I challenged because it was incredibly out-of-line. It would not appraise for the buyer’s lender. Fannie Mae agreed to reduce the sales price but it was still higher than the buyer wanted to pay, but not so high another buyer wouldn’t pay it. That’s often the secret to these negotiations.
However, the sad news is other short sales are lingering, even priced way below the comparable sales, they sit. Buyers are passing by those listings in favor of fast closings and sellers who will make repairs. Some short sales take 3 months to sell today. That’s not good news if a seller has a Notice of Default filed already.