Las Vegas Real Estate Short Sales
Many buyers in the Las Vegas real estate market see advertisements for short sales. But what is a short sale? Las Vegas continues to have one of the highest foreclosure rates in the county. In an effort to try to decrease some of these, some banks are willing to consider short sales before they are forced to take the property through foreclosure. If the borrower is having difficulty making the payments on a property and is unable to sell it for what is owed they can request that the bank allow a short sale. Meaning the bank will allow the sale for less than what is owed on the property hence the name “short sale".
The short sale process starts with the property being put on the market for sale. When the owner accepts an offer they submit it to the bank for approval. They must also submit a short sale packet (documents to verify they are having financial difficulties). The bank will then have the property appraised and review all the documentation to decide whether or not to allow the short sale.
The benefit to short sales is that if the sale is approved, a seller can usually get these properties under market value. The drawback is that when the property is put on the market it is usually listed at a very low price to get as many offers as possible as quickly as possible in hopes that the bank will take one. Typically banks take several weeks to a month to give a response and they are under no obligation to take any offer and often times don’t.
There is a misconception that a short sale is where a buyer can get the best deal. In my experience, Las Vegas buyers can usually get a better deal on bank owned properties. The response time is much quicker, there are fewer parties involved, less red tape and the listing price is generally under market value because selling banks are motivated to move the properties quickly.
Date: Sunday, December, 2nd 2007 @ 12:55:41 AM
Views: 348
Views: 348
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