One of our great news success stories was this condo in Carlsbad. Over the last 9 months, the condo market in the coast went from $345,000 for a 2 bedroom, 2 bath to around $250,000. With a short-sale, a declining market is a huge challenge. As the process takes 60-90 days for bank approval, the market moves downward from where you have offers at and from where bank appraisals are assessing values. As values move down, buyers expect a reduction in price.
For Example:
August – Multiple offers at low $300’s.
September – Bank appraisal at $330,000
October – Bank Approval of purchase price, but prices have gone down since August. Buyer now wants property at $300,000.
Offer must be resubmitted – process restarts.
But after many months, we prevailed. The whole team (including the owner) is very excited to celebrate this new short sale closing.
Mon, Apr 27, 2009
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