Wells Fargo Short Sales Not Closing in Today’s Market

January 18, 2014 at 7:24 pm Leave a comment

by: Maria Hass –

The current market is dominated by traditional home sales. Homeowners with this type of sale set their home price at top dollar to get the most out of their investment.

The transaction is simple, fast, and the price is pre-determined by the seller. On the other hand, short sales take longer to process, are not guaranteed to close and the price in most cases is not pre-approved by the bank. These differences in features make”traditional sales” attractive to the buyer and short sales unattractive.

So, why buy a short sale? Most short sales are bought by investors who have the time to wait, don’t care if they close on the house and wants the house only for a “screaming deal.” Yes, very low price is the compelling reason why short sales sell.
However, many lenders like Wells Fargo price their short sales like “traditional sales.” This is not the appropriate price to sell a short sale. It is comparing apples to oranges and will not work. Gone are the days when buyers have no other choice but to bid on the shorts sales because that is ALL there is. The short sale era has passed. We are now facing the traditional sale era and lenders should adopt to the market changes.

I have a short sale listing with Wells Fargo and it is over 90 days old. A buyer offered $200,000 but Wells Fargo countered at $220,000. The investor didn’t agree and walked. The house lingered on the market at $220,000 to start and $210,000 but still no offers.

After over 1 1/2 months of marketing the house at Well’s Fargo‘s price, the house was reduced to $200,000 and we are waiting for an offer, back at the original offer. The house needs updating and TLC. The market has slowed down during the holiday season and remains soft — and listings of traditional sales continue to rise.

If Wells Fargo and other short sale lenders and investors consider pricing their homes at lower than traditional sales, more short sales will close. But it looks to me that lenders don’t really want to close short sales like they used to and would rather see homeowners refinance under HARP or wait until a house regains equity before selling which could take forever.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , , , .

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