2 questions, Are short sale prices just fantasy? and Where are the fence sitters?

[citydweller]

I’m following the Mission Valley (92108) market. There is currently a short sale listed at the Franciscan (6780 Friars Rd) for a 1 bedroom at $149,900. This unit was purchased for $281K in 2005, so what are the chances the bank will approve this short sale? Also of interest, this unit sold for $180K in 2003, so the asking (fantasy?) price is below 2003 pricing.
I know for a fact that renters in this complex are paying as much as $1075 per month for a 1 bedroom unit. If someone bought this unit for 100% financing at 6%, their mortgage of $900 plus the HOA of $290 would be $1190 (prop tax offset by tax deduction), that doesn’t seem like much of a premium to pay to be a homeowner.
Also, there is a foreclosure listed at Rancho Mission Rd for $119,900 for a 1 bedroom, and judging by the pictures it does not appear to be trashed.
At these prices, where are all the fence sitters, waiting to jump into the market?

[jimmyle]

Here is a 43% loss in Mira Mesa. So 46% might not be a fantasy.

Date Price Held Return Annual
02/14/2008 $206,000 2y 7m -43% -19%
06/30/2005 $360,000 n/a – –

http://www.sdlookup.com/Property-088A520F-10248_Maya_Linda_Rd_35_San_Diego_CA_92126

[jimmyle]

Here is a 43% loss in Mira Mesa. So 46% might not be a fantasy.

Date Price Held Return Annual
02/14/2008 $206,000 2y 7m -43% -19%
06/30/2005 $360,000 n/a – –

http://www.sdlookup.com/Property-088A520F-10248_Maya_Linda_Rd_35_San_Diego_CA_92126

[jimmyle]

Here is a 43% loss in Mira Mesa. So 46% might not be a fantasy.

Date Price Held Return Annual
02/14/2008 $206,000 2y 7m -43% -19%
06/30/2005 $360,000 n/a – –

http://www.sdlookup.com/Property-088A520F-10248_Maya_Linda_Rd_35_San_Diego_CA_92126

[jimmyle]

Here is a 43% loss in Mira Mesa. So 46% might not be a fantasy.

Date Price Held Return Annual
02/14/2008 $206,000 2y 7m -43% -19%
06/30/2005 $360,000 n/a – –

http://www.sdlookup.com/Property-088A520F-10248_Maya_Linda_Rd_35_San_Diego_CA_92126

[jimmyle]

Here is a 43% loss in Mira Mesa. So 46% might not be a fantasy.

Date Price Held Return Annual
02/14/2008 $206,000 2y 7m -43% -19%
06/30/2005 $360,000 n/a – –

http://www.sdlookup.com/Property-088A520F-10248_Maya_Linda_Rd_35_San_Diego_CA_92126

[NotCranky]

The pitfalls of short sales are many. The price is a wishing price, more dependent on how established the mechanisms for actually selling that property short . Have your agent quiz the listing agent on the topic. Ask if they can verify that the short sale has reasonable possibilities of success before spending too much time and energy on it. Has the lender approved the short sale? The price? Is there evidence of this? Are they making progress towards these goals? If not tell them express your interest but with strong language of it being non-binding, if written, and move on. Check back in a month or so. Don’t go getting pre-approval letters every month for a hopeless properties, that can hurt your credit.

Short sales can be fairly cut and dry but it is taking a while for the parties to get up to speed on them in some instances.

SDR has posted some threads on this topic, You can find them in the archives.

Here is a thread I was just looking at that discusses some important issues on the topic.

http://www.sdlookup.com/Forums/General/tabid/57/forumid/104/tpage/1/view/topic/postid/14786/Default.aspx#14786

[NotCranky]

The pitfalls of short sales are many. The price is a wishing price, more dependent on how established the mechanisms for actually selling that property short . Have your agent quiz the listing agent on the topic. Ask if they can verify that the short sale has reasonable possibilities of success before spending too much time and energy on it. Has the lender approved the short sale? The price? Is there evidence of this? Are they making progress towards these goals? If not tell them express your interest but with strong language of it being non-binding, if written, and move on. Check back in a month or so. Don’t go getting pre-approval letters every month for a hopeless properties, that can hurt your credit.

Short sales can be fairly cut and dry but it is taking a while for the parties to get up to speed on them in some instances.

SDR has posted some threads on this topic, You can find them in the archives.

Here is a thread I was just looking at that discusses some important issues on the topic.

http://www.sdlookup.com/Forums/General/tabid/57/forumid/104/tpage/1/view/topic/postid/14786/Default.aspx#14786

[NotCranky]

The pitfalls of short sales are many. The price is a wishing price, more dependent on how established the mechanisms for actually selling that property short . Have your agent quiz the listing agent on the topic. Ask if they can verify that the short sale has reasonable possibilities of success before spending too much time and energy on it. Has the lender approved the short sale? The price? Is there evidence of this? Are they making progress towards these goals? If not tell them express your interest but with strong language of it being non-binding, if written, and move on. Check back in a month or so. Don’t go getting pre-approval letters every month for a hopeless properties, that can hurt your credit.

Short sales can be fairly cut and dry but it is taking a while for the parties to get up to speed on them in some instances.

SDR has posted some threads on this topic, You can find them in the archives.

Here is a thread I was just looking at that discusses some important issues on the topic.

http://www.sdlookup.com/Forums/General/tabid/57/forumid/104/tpage/1/view/topic/postid/14786/Default.aspx#14786

[NotCranky]

The pitfalls of short sales are many. The price is a wishing price, more dependent on how established the mechanisms for actually selling that property short . Have your agent quiz the listing agent on the topic. Ask if they can verify that the short sale has reasonable possibilities of success before spending too much time and energy on it. Has the lender approved the short sale? The price? Is there evidence of this? Are they making progress towards these goals? If not tell them express your interest but with strong language of it being non-binding, if written, and move on. Check back in a month or so. Don’t go getting pre-approval letters every month for a hopeless properties, that can hurt your credit.

Short sales can be fairly cut and dry but it is taking a while for the parties to get up to speed on them in some instances.

SDR has posted some threads on this topic, You can find them in the archives.

Here is a thread I was just looking at that discusses some important issues on the topic.

http://www.sdlookup.com/Forums/General/tabid/57/forumid/104/tpage/1/view/topic/postid/14786/Default.aspx#14786

[NotCranky]

The pitfalls of short sales are many. The price is a wishing price, more dependent on how established the mechanisms for actually selling that property short . Have your agent quiz the listing agent on the topic. Ask if they can verify that the short sale has reasonable possibilities of success before spending too much time and energy on it. Has the lender approved the short sale? The price? Is there evidence of this? Are they making progress towards these goals? If not tell them express your interest but with strong language of it being non-binding, if written, and move on. Check back in a month or so. Don’t go getting pre-approval letters every month for a hopeless properties, that can hurt your credit.

Short sales can be fairly cut and dry but it is taking a while for the parties to get up to speed on them in some instances.

SDR has posted some threads on this topic, You can find them in the archives.

Here is a thread I was just looking at that discusses some important issues on the topic.

http://www.sdlookup.com/Forums/General/tabid/57/forumid/104/tpage/1/view/topic/postid/14786/Default.aspx#14786

[SD Realtor]

Couldn’t agree more Rustico. Alot of times though it sucks because the listing agent doesn’t have a clue of whether the lender will approve the short sale. In alot of cases as well, the peskiness of the listing agent will make a big difference. I have been nagging and nagging and nagging the asset manager for a short I have listed for months on in quite often. I am always nice and kiss his ass. It does indeed look like the approval will happen. However I think in alot of cases listing agents give up on the listing even when an offer is in… and they just don’t do squat.

Anyways you covered it well. For buyers I am working with on shorts, I just tell em, submit the offer, then basically put in a mental closet. Move on to other properties. Then if it happens all the better. Make enough offers and one will come through. Also not to worry about being obligated to oblige if the offer is accepted months later. You can always get out of it via any of the contingencies.

SD Realtor

[SD Realtor]

Couldn’t agree more Rustico. Alot of times though it sucks because the listing agent doesn’t have a clue of whether the lender will approve the short sale. In alot of cases as well, the peskiness of the listing agent will make a big difference. I have been nagging and nagging and nagging the asset manager for a short I have listed for months on in quite often. I am always nice and kiss his ass. It does indeed look like the approval will happen. However I think in alot of cases listing agents give up on the listing even when an offer is in… and they just don’t do squat.

Anyways you covered it well. For buyers I am working with on shorts, I just tell em, submit the offer, then basically put in a mental closet. Move on to other properties. Then if it happens all the better. Make enough offers and one will come through. Also not to worry about being obligated to oblige if the offer is accepted months later. You can always get out of it via any of the contingencies.

SD Realtor

[SD Realtor]

Couldn’t agree more Rustico. Alot of times though it sucks because the listing agent doesn’t have a clue of whether the lender will approve the short sale. In alot of cases as well, the peskiness of the listing agent will make a big difference. I have been nagging and nagging and nagging the asset manager for a short I have listed for months on in quite often. I am always nice and kiss his ass. It does indeed look like the approval will happen. However I think in alot of cases listing agents give up on the listing even when an offer is in… and they just don’t do squat.

Anyways you covered it well. For buyers I am working with on shorts, I just tell em, submit the offer, then basically put in a mental closet. Move on to other properties. Then if it happens all the better. Make enough offers and one will come through. Also not to worry about being obligated to oblige if the offer is accepted months later. You can always get out of it via any of the contingencies.

SD Realtor

[SD Realtor]

Couldn’t agree more Rustico. Alot of times though it sucks because the listing agent doesn’t have a clue of whether the lender will approve the short sale. In alot of cases as well, the peskiness of the listing agent will make a big difference. I have been nagging and nagging and nagging the asset manager for a short I have listed for months on in quite often. I am always nice and kiss his ass. It does indeed look like the approval will happen. However I think in alot of cases listing agents give up on the listing even when an offer is in… and they just don’t do squat.

Anyways you covered it well. For buyers I am working with on shorts, I just tell em, submit the offer, then basically put in a mental closet. Move on to other properties. Then if it happens all the better. Make enough offers and one will come through. Also not to worry about being obligated to oblige if the offer is accepted months later. You can always get out of it via any of the contingencies.

SD Realtor

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