Jump to Navigation
We can handle your closing anywhere in the state.
Subscribe to This Blog's Feed

Is there really a stigma against short sales?

It's perfectly understandable how real estate investors, homeowners and even prospective homeowners might be slightly hesitant to read the latest news reports discussing the real estate market. After all, the 2008 recession ushered in several years of record foreclosures and plunging property values.

Fortunately, it appears as if these parties can safely pick up their newspapers and log onto the Internet, as the news concerning the real estate market here in the U.S. has been largely positive over the last few months.

For example, a recently released report from the real estate firm RealtyTrac shows that home sales and home prices are both up. In particular, the report shows that the number of short sales -- sales where the bank agrees to accept less than what is owed on the mortgage -- made up 14 percent of all sales last month, a 6 percent increase from the same time last year.

However, many experts are now wondering why the number of short sales isn't actually higher. In other words, why aren't more investors choosing to purchase short sales?

This is a particularly good question when you consider that short sales are good for the seller who gets to unload a property they can no longer afford, good for the buyer who can secure a property that is likely in better shape than a foreclosure at a fair price, and good for the bank who can clear the property from their books with altogether less hassle.

Interestingly, a group of researchers at the University of Southern Mississippi and Florida International University conducted a study of 5,000 home sales in Boca Raton and determined those properties listed as "not short sales" were purchased anywhere from 10-15 percent faster than non-distressed homes.

They theorize that it likely has something to do with a stigma against short sales.

"The short sale process has longer marketing times and lower probabilities of a transaction than properties that are not being marketed as short sales, the study shows. All of these are costly and certainly lead to a slowdown in market clearing," said one of the study's authors. "This, in turn, leads to greater residential real estate market uncertainty and a slower recovery."

In the meantime, experts are urging real estate investors and home buyers to take advantage of what could prove to be a great opportunity.

Please visit our website to learn more about residential real estate transactions and short sales.

Source: Wall Street Journal Market Watch, "Short sale stigma helps home buyers," Quentin Fottrell," July 26, 2013

Tell Us About Your Transaction

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Visit Weeks & Irvine at One of Our Six Locations

North Charleston office 8086-B Rivers Avenue
North Charleston, SC 29406
Phone: 843-553-9800
Toll Free: 800-553-7449
Fax: 843-553-9804
Maps and Directions

Mt. Pleasant office
1100 Queensborough Blvd, Suite 102
Mt. Pleasant, SC 29464
Phone: 843-856-9800
Toll Free: 800-553-7449
Fax: 843-216-0930
Map and Directions

Mt. Pleasant North office
3040 Highway 17-A North, Suite B
Mt. Pleasant, SC 29466
Phone: 843-388-3250
Toll Free: 800-553-7449
Map and Directions

West Ashley office
873 Orleans Road, Suite 102 1/2
Charleston, SC 29407
Phone: 843-571-2996
Toll Free: 800-553-7449
Fax: 843-571-2998
Map and Directions

Summerville office
106 West 7th North St
Summerville, SC 29483
Phone: 843-875-7111
Toll Free: 800-553-7449
Fax: 843-875-7721
Map and Directions

Goose Creek office
567 Crowfield Blvd.
Goose Creek, SC 29445
Phone: 843-553-9100
Toll Free: 800-553-7449
Fax 843-553-9183
Map and Directions