The Significance of Short Sales In Palm Coast and Flagler County

When shopping for residential house for sale in Palm Coast and Flagler County, you will undoubtedly encounter ‘Short Sales'. Right now (as of 3/24/09) of the 1,737 Residential Houses for sale in the County, 518 are Short Sales.

• 274 or 16% of all Residential Houses for sale fall into the $0 to $150,000 listing price range
• 176 or 10 % of all Residential Houses for sale fall into the $151,000 to $250,000 listing price range

So if you are beginning your property search, it is important to understand not only what a ‘Short Sale' is but also what to expect if making an offer on a property with this designation.

What is a Short Sale?

This is a pre-foreclosure situation where the owner owes more than the property can sell for today. Since the sale of the property would not generate enough to pay the loan(s) off and the difference can be very substantial, the owner and the bank are agreeing on terms of settlement of the difference at the time of sale.

Does the bank approve the listing price I am seeing?

Yes and no. The banks often ask for an analysis to set an initial listing price, but are wanting to minimize loss and this is where pricing can get "tricky". The banks are really waiting to see actual offers which come in and will evaluate them at that time. Again, the bank is attempting to minimize loss.

Who has the final say whether to accept an offer?

Unlike normal offerings for sale, the bank must approve the offer. This can take more time compared to normal situations where the owner has the final say in whether to accept and offer or not. Therefore, you must be prepared to be patient to hear back on your offer.

Should I avoid ‘Short Sales'?

I don't recommend it, because you can find a great deal when it comes to Short Sales. But it depends on each individual buyer's situation such as the timeframe in which you want to buy. Again, the process can take a bit longer with ‘Short Sales'. My recommendation is to plan out your search as normal (i.e. area, price range budget, features, etc.). Naroow your choices to about 5 properties and visit each. If some ‘Short Sales' fall into your choices, leave them as an option. Evaluate the properties side-by-side (Click here to get a property comparison worksheet) determining which one best suits your needs. You can evaluate at that time whether the ‘Short Sale' process is right for you. At the same time, you still have other properties to choose from.

Feel free to give me a call today if you are looking to buy in the area so we can get a plan together for your specific needs today.

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