Saturday, June 30, 2012

Sarasota Short Sale 2012 Statistics

It goes without saying that short sales are a subject of frustration for home buyers, sellers, and the real estate agents that serve them.

One of the most frequent issues I see with buyers is the question of what kind of offer should they make; specifically, can or should a buyer make a low offer on a short sale, hoping to negotiate a better price?

Recently, an article came out about lowball offers and their consequences, which you can read here: http://bit.ly/N18Vb4.

I decided to take this article a step further and research what is actually happening in my real estate service area of Sarasota, Manatee, and Charlotte Counties.  Using MLS sold data, I examined the list price to sales price ratio for short sales.  I took this even further by examining this data by price range.  The data includes all short sales (single family homes, condos, etc.) from January 1 to June 30, 2012.

The local data supported the article referenced above.  The sales price was uniformly in a narrow range of 94-98% of the list price, regardless of the price of the property.  You can see the data on the spreadsheet I created in Google Docs here:   http://bit.ly/NggKJb

Bottom line:  If the list price on a short sale is out of your budget, or not realistic versus comparable sales, move on to another property.  Remember, a short sale is already heavily discounted versus the property's previous sales price at the height of the real estate market.

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