Over 1200 South Orange County Homes for Sale Today are Short Sales
There are currently 1239 active listing for Orange County homes for sale that are Short Sales, Notice of Defaults, or In Foreclosure Process. While most are in the lower price ranges, there are more and more cropping up in the $1,000,000 and over range. With all of this going on, here are some tips for buyers in the Short Sale market today to help you be successful in reaching your home buying goals.
1. Even if you make an offer on a Short Sale listings, it is usually still flagged as Active in the MLS to try to generate MORE offers.
So your offer is written up and you have confirmation it has been submitted to the bank. Now you wait around hoping no one comes in higher than you, but the house will usually continue to be in Active status in the MLS – the listing agent WANTS more offers to show the bank what the market will bear. Be prepared and make sure your agent stays on top of what’s going on and keeps you informed.
2. Short Sales can generate multiple offers – especially if the property was listed way below market value.
Even if you and your agent write up a great offer to buy a Short Sale home, since we know from Tip #1 it will continue to be marketed, there may be many more offers coming in, especially if the house is listed below market value. This is a smart listing strategy to test you, the buyer, to see how high you are willing to go. Knowing that there are other offers helps you evaluate top price to try to win the home. Remember – the bank always makes the final decision to accept or reject an offer. Make your first offer with the “best and final” mentality, or be willing to re-submit a higher offer if more come in higher after yours. The bank is making a bottom line decision and they don’t care about your personal situation, just if you qualify and are making the highest offer.
3. The listing price for a Short Sale is set by the listing agent, not the bank.
In a Short Sale situation, the bank only responds once offers have been submitted. They do not work with the listing agent to set the price. You buyers’ agent should be aware of market values and help you strategize about what price to offer. Your buyers’ agent should also try to find out know how many offers have already been submitted, if the bank has responded (or where they are in the Short Sale process) and should know if any offers have already gone over the list price. This information will help you make an informed offer – one that will hopefully be successful.
The only time this is not true is when offers have been submitted to the bank and accepted, and the buyer has disappeared – then the listing agent know what the bank will accept and often flags the listing as “Bank Approved Short Sale.”
4. You can submit offers on other homes while you wait for the bank to respond to your offer on a Short Sale listing.
Don’t let the bank hold you hostage! Keep up your home search while you wait for a response to your offer. You may find an equity owner on a property you love and you may be able to put together a deal and even close escrow before the bank ever responds to your Short Sale offer. Go after as many as you are comfortable with – in this market it is a game you need to know how to play to win!
5. Many times, buyers with offers on Short Sale listings will back out before the bank responds.
Wait out the process – especially if it is a home you really, really want! Even if there are 7 offers and yours is in the middle or low range. By the time the bank responds, many of the other buyers may be “gone” – or will have bought another home (see Tip # 4,) lost interest, or lost their financing. It is a battle of wits, wills, and stamina in today’s market.
These few tip should make you successful, and less frustrated, in buying one of the many Short Sale homes for sale in South Orange County. This is an unusual market and there are some great deals out there! Go for it.
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