Many buyers that ARE in the market to purchase a home in the Phoenix and Mesa, Arizona market have an unreasonable expectation of what homes cost. They hear all about the 
“deals” out there for $50,000 $60,000 and up, and are looking at those prices. And they want a four bedroom, pool, three car garage, etc. I’m even hearing such things as “that home is way overpriced!” Really? How does the buyer know that – unless he/she hears that from a friend, or a news' report, or reads the newspapers all about what is really going on. How about “asking” your Realtor?
EVEN if - as many are concerned about, the property is overpriced, it likely will not appraise! Typically, those low ball prices indicate a beginning price, or the property has 
major issues. Even up to $100,000 is a questionable number when purchasing a nice home – including Arizona.
Many are walking away from the short sales. One warning for all of those buyers considering of a short sale, and thinking what a great deal they will get. Yes, SOME may work, but the majority do NOT.
For one example: What if you make an offer on a short sale, and the seller, as most do, has a second on the property? What if the second lender won’t acquiesce on the money owed to them? Then what? I’ll tell you what!! For months you wait – the first finally agrees on a dollar amount - but the second won’t budge.
The deal falls through. Simple as that. Never mind that the second loses its entire dollar amount owed if the home is foreclosed upon. I was showing a home on Saturday, spoke with the listing agent, and after months of wait
ing, this exact scenario happened, and the buyers walked.
Consider purchasing from a seller with whom you can negotiate, and who will make those repairs, and provide you with the disclosures and insurance information that is important. On Saturday, last, I showed several homes – one of which was listed by a seller! It was comparable in size and in price – and in STELLAR condition.
Yes, this is a great time to buy a home, but do so wisely. Work with an experienced and knowledgeable Realtor who can advise and counsel you through the process.
Mesa, Arizona Real Estate. Call me at: 480.216-3334 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit one of my websites: HomesAzRE.com, ServingMesaArizona, MoveToMesaAz.com or MoveToSunnyAz.com. Or stop by my blogs at: MesaAzRealEstateVoice; or Phoenix Valley Real Estate Blog
Mesa, Arizona Real Estate. Call me at: 480.382-8711 for information on purchasing or selling a home in Mesa, Arizona or surrounding towns. OR email me: Teri@TeriEllis.com. Feel free to visit my website: HomesAzRE.com, or stop by my blogs at: MesaAzRealEstateVoice and AzLadyInRed!
Sister, you said a mouth full ~ and you're right on! Short sales are for gamblers and folks that have nothing but plenty of time and no sense of the market. I know that sounds blunt, but it's really the truth. There are sooooo many properties out there that are easier and better deals. Very nice post!
Teri
Short sales really can be a dice game at times. I had no idea what a bargain it is by you in Arizona
Tom
Thank you for sharing, id prefer to have a root canal without drugs than play in the short sale game, Im happy with REO's
Both the buyers and sellers agents need to be skilled at all the ins and outs of a short sale. There are times that logic is thrown out the window for sure especially in your example of the 2nd mortgage holder not bending.
I probably spend more time talking to Sacramento home buyers about the pitfalls of short sales than any other topic. For buyers who aren't in a rush to buy and whose hearts won't be broken if the deal falls through, short sales are the way to go. But if their search is time sensitive or they want warranties, pest reports, repairs, I suggest they not consider a short sale.
Teri--Short sales take lots of patience for all parties involve agents and sellers. Good write up explaining to those thinking about making an offer on the pitfalls.
Randy, it is soooo frustrating to try and work with people who don't know what our market is - when the ones working on the package lives in Georgia....hellooooo, why would that be relevant to Arizona? ;-)
Tom, homes are very reasonably priced here - even without a bank owned or short sale. ;-)
Andrew, I tend to agree with you...;-)
Bill, both must be skilled, that's true - but then there are the other parties involved...and then months later, the buyers decide they can't wait any longer..and walk. ;-)
Elizabeth, I share the same philosophy....but no matter what they say - they can wait forever, etc., they still get frustrated when it doesn't work....;-)
Teri, thank you. I like to educate the buyers and the sellers...in Arizona, right now, a home can be purchased from a regular seller - with warranties, with insurance, etc. and they can negotiate. ;-)
Not only do we have to get the first mtg company and the second but the Mortgage insurance company to agree and they are the most difficult to deal with.
Teri - That's a great blog piece you have written there Lady! And, I agree with Andrew 100%...I'd rather go through a root canal than do a "short-sale."
Terry, and it goes on and on - exactly my thoughts ....
Myrl, thank you. I'm thinking you're both right. ;-)
Wow you said it all and to the point...Thank You!!! We have been selling short sales for a while, they are no fun for either party involved.
Thanks for a great blog!
Cheron Lange
I hear what you are saying load and clear. I can't believe the number of people we hear from every day who think they want to buy a foreclosure or a short sale. They have no idea what a headache those sales can be and that the majoritiy of the short sales never close. We get calls every day from propective buyers down in Phoenix & Tucson, even from brokers in those localities, who want to know if there are any bargains on the mountain? I had a broker call last week who had a buyer who wanted his "cabin in the woods" for $100 a square foot. Hard as it is for people to believe, our market here in the White Mountains while affected by the market downturn is never going to a "bargain". We have our share of REO's and Short Sales too but they are not the driving force in our marketplace. The few that are on the market are so trashed out that it will take a fortune just to make them livable again. Many have been damaged so badly that they could be classified as "Knock down - start over" properties. I have yet to have a Short Sale work and while I did get two REO's closed, one of them was a month late closing.
The bargain that buyers are looking for may not be that REO or Short Sale, it may be a nice property down the street that is owner occupied and someone who is motivated to sell. The house will pass muster much better than the majority of these REO's and Short Sales because the owner still lives in it or has recently moved and they cared about the property.
So, I hear what you are saying loud and clear. I just wish the public would begin to understand that too.
Cheron, thanks so much....I just HAD to say it...;-)
Sandra, well thank you for coming by and sharing. It's all about the bargains today isn't it? Something for nothing - maybe even PAY the buyers? ;-) Welcome, I've not met you. ;-)