Saturday, June 11, 2011

Are Davenport, FL Short Sales Worth Less Than Market Value?

Are Davenport, FL short sales worth less than market value? That's a good question, and I'm going to try to answer it for you. There were 362 houses sold in Davenport, FL between March 1, 2011 and June 1, 2011. They sold for an average price of $134,157. Of those, 68 were short sales. These 68 Davenport short sales sold for an average price of $118,810. 151 of these homes sold were REO/Foreclosures and sold for an average price of $109,632. Lastly there were 143 equity sales (regular sales) which sold for an average of $167,352.

Obviously short sales and foreclosures sell for much less than regular sales. The short sales were sold for right about 12% less than the total average. The foreclosures sold for about 18% less than the total average. With foreclosures, the bank lists them low because they want multiple offers in order to get the best price. Doesn't sound like it's working does it? But that's a discussion for another blog post. This article is about short sales.

There's a reason why short sales are worth less than a regular sale. We all know a home is worth exactly what a buyer is willing to pay for it. To a buyer a short sale is a bit of a gamble. With a short sale a buyer has to wait months to find out if the sale is approved. With a regular sale they know it's approved and can close as quick as they and the sellers like. During that time their deposit is tied up and they could be missing good deals elsewhere. There is a chance that the seller's lender won't approve the sale. This could mean the buyer just wasted a lot of time.

For taking this gamble buyers aren't willing to pay as much for the home as they would be for a regular sale. There is a negotiating tactic to be learned here. The data shows that short sales are worth about 12% less than market value. That should be in your short sale letter to the lender. It should also come up again if they counter and want market value for the home.

A Davenport, FL short sale just isn't worth market value. That's just my opinion, but I have the facts and data to back it up. Happy selling people! :)

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Mortgage Assistance Relief Services Disclosure

Tutas Towne Realty, Inc is not associated with the government and our services have not been approved by the government or your Lender. If you stop paying your mortgage you could lose your home and damage your credit. Your Lender may not agree to the change of your loan and/or a Short Sale.With a Short Sale, there are no guarantees offered and we cannot provide legal advice. Seek legal advice.
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Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales, Orlando Florida Short Sales, Celebration Florida Short Sales, Winderemere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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