Short Sales Losers

Shorts sales, boo boo.

I don't get it, sure someone, somewhere at sometime got a great deal on a short sale, but now everyone thinks they can. Moreover, there are more and more short sales, making them harder to do because of volume. Folks let me say that stats say one in six short sales close, but my stats say 90% of them do not! The leading short sale agent in my office has closed one in the last ten! ONE!

Currently I have buyers making a good offer on a short sale, but the agent is countered our offer $5000 dollars over list price. Now the offer was under list, but told us "that is what the bank will take". If that is the case, why are you listing said property under what the bank will take? Who does that service? Not the seller, because now you have to try to get a price over list. Doesn't service the buyer, because they are asking me "is it false advertising?". Doesn't service the bank, yes they have an offer, but now they are going to lose the deal. Oh and keep the house on the books! Just what the bank wants, more inventory.

Remember this rule in real estate: Your house is only worth what someone will pay for it!

No doubt that this deal will not happen, the agent already said the bank won't except our counter offer, but my buyers and I agree...it is our best and final offer. Sorry seller, they wanted your house..

In this deal, everyone loses. Well off the blog, I have to find them more houses to see..

You can find me on Twitter and Facebook at www.FindTheOneMN.com

The lull before the storm?

Everyone is talking about the decline in the housing market in the month of May. Of course there was going to be a decline, the tax credit FINALLY ended! Folks were not sure what was going to happen with the market, so they took a break. But I have to tell you, business is picking up and I see it getting stronger as the months go on.

I say don't worry about the real estate market too much, it will work it's way back. But any purchase being made today will payoff down the road. 30 year fixed rates are low, all time low, and housing prices are down. Does anyone smell it besides me...Equity!

The new trend in five years, when all these first time buyers start buying their move up house, will be assumable mortgages. Why? Assumable mortgages will be all the rage in five to seven years, because the interest rates will be low on the FHA Loans being used right now. It will be a cheap way for buyers to buy a home, because we can not expect the interest rates to stay low forever!

Look at the present to see the future, and follow the trends. BTW stainless steel is a fading fad, I will tell you why at a later date! Stay tuned.