When you list your Los Gatos house for sale, it’s a wise notion to clearly add the line: “Not a Short Sale or REO” to the Public and Private section of our MLS Listings. The reason for noting the Sale Type is that properties listed as ”not short sales” are selling for 2-5% more than non distressed properties without the designation according to National Association of Realtor Data. The data also indicates that “short sale” properties also spent more time on the market, selling about 10 percent to 15 percent later than similarly properties in the same region of the county.
The challenge with the Short Sales are the un-certainty associated with the approval and the sellers’ motivation. For example, if the Seller decides to declare bankruptcy; the Short Sale process can not continue. Another unknown to most Short Sale buyer is the strength of the Short Sale application and the chances of the lender’s approval.
In addition, distressed properties do attract their fair share of Cash investors which are typically not the buyers who will be paying top dollar fora property. In fact, in you last San Jose Short Sale we had 3 Wholesalers who placed an offer on the property only to try to flip it and back-ed out! This process delayed our transaction by at least 3 weeks since each time a new approval had to be generated from Wells Fargo bank.
Bottom line is that you only need to find one qualified buyer for your Los Gatos home and you should be careful which offers you select since they could be flipping your property prior to closing to another buyer. Feel free to Contact Us if you need help spotting the Wholesalers in the area.