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Short Sale information for Salt Lake City

Posted by UtahCribs, Real Estate, Homes on April 15, 2009

So let’s just cut to the chase. Understandably, everyone wants a deal these days (us included) on their real estate purchase. This usually makes buyers lean towards a foreclosed home or a short sale. I wish the Utah Cribs Team had a dollar for everytime we got a call from a client, friend or family member inquiring about a “screaming deal” on a house they just found. We do the research, pull the house up on the MLS for them and answer their questions. Probably 95% of the time these homes are unapproved short sales. They inevitably want to know how much can we lowball the already low price and see if they can walk away with a home for 30-40 cents on the dollar. For the everyday home buyer, it simply does not work like that and you have to understand the short sale process in order to become a player in the game and actually get an offer to stick, otherwise you will just be writing a bunch of offers, waiting around, and probably have your significant other getting frustrated with you.

In a nutshell, short sales work like this: The seller realizes “Oh crap! I’m behind in my payments and I can’t sell for what is owed! What do I do?” The seller then talks to a real estate agent who says their only shot at getting out of the house without a foreclosure that will damage their credit for years to come is to see if the bank will accept a “SHORT” on the house. Meaning the bank takes an amount less than is originally owed to recover some of their money. Why would banks do this you ask? Because they also realize, “Oh crap, I can’t sell for what I’m owed even if I do foreclose on the seller. The foreclosure process can be expensive and time consuming, so we might as well take the loss on the house now if it looks like there’s NO WAY to get our money out of it!”

This means the seller lists the home with the agent and the agent typically has to start the home at a higher price to show the bank that it can’t be sold for what is owed. The agent will usually lower the price incrementally, or sometimes they will just lower it all at once to a ridiculously low price to generate activity and get an offer. The bank hasn’t even approved ANY of these prices!!!  This is usually when the potential buyers come across it and give their agent a call telling them they have to get out there ASAP to see this house a write up an offer. The problem is the bank has yet to even start the short sale process which can take 2-3 months minimum. The banks want to be sure that the value really has dropped, so to do this they will order a BPO (Broker Price Opinion) to see what a neutral third party thinks about it. Once that has been done, the bank will then approve a price and that can take a couple weeks more to get through all the different employees in the bank that have to approve it.

So what does all this amount to for a buyer? It means short sales can take a long time and work BACKWARDS when writing an offer. Look at the recent comparables in the neighborhood, PUD, or develepment depending on what the property is and go from there. If there are recent sales in the neighborhood for $150K and the house is an UNAPPROVED short sale priced at $115,000, you more than likely will not be able to pick it up for $115,000. But think of it like this, if you picked it up for $125K-$135K, its still a great deal right? That’s what buyer’s have to understand. Most of the short sales are UNAPPROVED, and when they are approved, most of the time the sales price is either at list price or higher. If the home is priced super low and unapproved, statistically you shouldn’t even try to lowball him because it just won’t work out for you. Here is a list of APROOVED SHORT SALES and what they sold for to back up what I just said. List price is on the left, Final Sales price is on the right. Please call us about your short sale and we’d be happy to help you out.

Photo of Property MLS # List Price Stat Style Tot SqFt Sold Price Ref #
Address City                     Acres NS/EW Tour/Open
Bd/Bth/Fm Gar/Port Bsmt/%Fin List DT Sold DT Year Blt Type Photo Cnt
 852436  $149,900 SLD   Rambler/Ranch  2,538  $165,000  1
 5518 PAULETTE AVE   West Valley City  0.23 3865S/5518W   Tour /
 4/2.00/2  2/0  FULL/100%  12/15/2008  03/13/2009  1959  SNGL  11

 837689  $155,000 SLD   Townhouse/Row-Mid  2,302  $150,000  2
 36 S SANTA ROSA PL   West Jordan  0.04 8370S/2370W   Tour /
 4/2.00/2  0/2  FULL/65%  10/02/2008  03/17/2009  1977  CNDO  8

 859725  $165,000 SLD   2-Story Split  2,104  $170,000  3
 4407 W 6165 S   Salt Lake City  0.13 6165S/4407W   Tour /
 5/2.00/1  1/0  PART/90%  01/23/2009  03/12/2009  1991  SNGL  9

 834508  $170,000 SLD   Rambler/Ranch  1,099  $170,000  4
 242 W ELECTION RD   Draper  0.11 11900S/242W   Tour /
 3/2.00/1  2/0  NO/CR/0%  09/22/2008  03/06/2009  1996  SNGL  9

 826075  $179,900 SLD   Rambler/Ranch  1,527  $179,900  5
 1426 E 8545 S   Sandy  0.23 8545S/1426E   Tour /
 4/2.00/1  1/0  NO/CR/0%  08/18/2008  03/02/2009  1958  SNGL  12

 848021  $190,000 SLD   Rambler/Ranch  2,320  $196,000  6
 5339 W SHAGGY PEAK DR   Riverton  0.21 14030S/5339W   Tour /
 3/2.00/1  2/0  FULL/0%  11/19/2008  04/01/2009  1999  SNGL  8

 835292  $205,000 SLD   Rambler/Ranch  2,214  $210,000  7
 825 E 9590 S   Sandy  0.19 9590S/825E   Tour /
 4/2.00/1  2/0  FULL/100%  09/24/2008  03/16/2009  1973  SNGL  1

 812511  $210,000 SLD   Rambler/Ranch  2,697  $216,000  8
 5329 MORNING BLUSH DR   Herriman  0.19 14200S/5329W   Tour /
 3/2.00/1  2/0  FULL/20%  06/27/2008  04/01/2009  2002  SNGL  8

 856360  $219,900 SLD   2-Story Conventional  2,928  $219,900  9
 6325 W CITY VISTAS WAY   Salt Lake City  0.12 4670S/6325W   Tour /
 4/3.00/1  2/0  FULL/0%  01/09/2009  03/02/2009  2007  SNGL  5

 779743  $230,000 SLD   Rambler/Ranch  3,242  $239,000  10
 11549 HARVEST CREST WAY   South Jordan  0.10 11549S/4460W   Tour /
 3/2.00/1  2/0  FULL/0%  03/11/2008  03/14/2009  2004  SNGL  11

 861115  $234,900 SLD   Rambler/Ranch  3,300  $237,000  11
 5768 W SORRENTO WAY   West Jordan  0.18 7020S/5768W   Tour /
 3/2.00/0  2/0  FULL/15%  01/30/2009  03/31/2009  2005  SNGL  12

 

 819765  $249,950 SLD   Rambler/Ranch  3,182  $245,000  12
 9774 SHAROLYN LN   South Jordan  0.24 9774S/5010W   Tour /
 4/3.00/2  2/0  FULL/80%  07/25/2008  03/17/2009  1998  SNGL  1

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One Response to “Short Sale information for Salt Lake City”

  1. Yeah, It’s a good info, i think it shows that the sale is less, is it?

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