Comments on: Relative Home Supply Growing In Tallahassee

By: Relative Home Supply | Real Estate Market Reports

Relative Home Supply | Real Estate Market Reports — Fri, 10 Jul 2009 13:21:27 +0000

[...] The relative housing supply is the number of homes available, measured in months of supply, when compared to the previous years rate of sales. While we know that the actual supply of homes for sale in Tallahassee has been dropping, we need to also keep our eye on the relative supply. [click to continue…] [...]

By: Joe Manausa

Joe Manausa — Mon, 06 Jul 2009 17:24:34 +0000

Thanks Doug. I can’t speak for everybody, but I don’t see anybody using the short sale as a marketing ploy. A large percentage of homeowners are upside down in their homes these days.

The definition of a short sale that is most widely used is when a home is sold for less money than it takes to satisfy all existing liens against the home. While the homeowners is the approving authority on the contract, you will not get it to closing without all lienholders’ approval.

As far as advertising, when somebody is using the term “short sale,” they are in essence warning all buyers that any transaction will be subject to lender approval. All short sales are “unique” in that it really depends on the experience of the asset management people working on behalf of the lender. It is my experience that everybody is kind of waiting to see what will happen. We have quite a few submissions that we are waiting weeks to hear back from the lenders, even though we call daily. It is very frustrating, but necessary, in order to get the market back to balance.

By: Doug

Doug — Mon, 06 Jul 2009 17:01:53 +0000

Joe,
Great newsletter this month. Have a few questions, observations regarding short sale properties. First, I wonder of all the agents in the real estate community really know what a short sale is. Its almost used as a marketing ploy nowadays. Its like any owner selling their house for less than what they think it is worth, is a short sale. So, what does the law or ethical standards say the definition of a short sale is? Does advertising a short sale mean that the lender has agreed to accept less than the mortgage balance and the seller and Realtor have written confirmation of this? Or, is everyone just praying they will take a short sale. Does the lender typically cut the commission so everyone takes a haircut? Or does the seller have to pay the commission out of pocket?