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Old 10-24-2009, 12:45 AM
 
Location: RSM
5,113 posts, read 19,761,775 times
Reputation: 1927

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Quote:
Originally Posted by Charles View Post
What I am getting at is, can the selling price of a short sale be considered market value, and thus be used as a comparable sale for the purpose of determining the market value of a similar home?

Here's an example. This house is currently for sale for $829K. It is not a short sale.

44 LEDGEWOOD Dr, Rancho Santa Margarita, CA 92688 | MLS# S593495 (For Sale at $255/sqft)

In July, this home, very similar, basically across the street sold (as a short sale) for $700K (Selling Price was $228/sqft)

31 Ledgewood Dr Rancho Santa Margarita CA 92688 (MLS# S553640) - Ledgewood, Rancho Santa Margarita homes for sale

(Just to illustrate how times have changed, 31 Ledgewood sold for $1.075M in 2006)
My grandmother just had her house appraised and shortsales, auctions, bank owned, etc etc all count in your comparable property valuation by law/regulation
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Old 12-26-2009, 08:42 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
Reputation: 17831
Quote:
Originally Posted by flo2900 View Post
Short sale homes work like a bid....ppl think theyre gonna get a good deal...WRONG...home will sell at current market value.
Just for fun, I pulled 122 recent sales (past 3 months), SFR, 4+BR, YB>1990, $600K-$850K, in south OC.

Short sales (49 homes), $243/sqft average
Non Short sales (73 homes), $274/sqft average

If short sales are selling at current market value, why are the short sales apparently selling for significantly less per square foot?


http://www.redfin.com/search#lat=33....5&zoomLevel=12
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Old 01-03-2010, 03:26 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
Reputation: 17831
"Still, the buyer is paying a premium not to have to deal with the risks involved in buying a foreclosed home or a short sale, which can take several months to close.

So, should distressed homes sales be compared with other homes? Is one inherently worth more than the other?

A new analysis of foreclosure and non-foreclosure sales by Zillow.com found that even when most of the market is made up of bank-owned homes, non-foreclosures sell for as much as 30 percent more. Another study by Harvard's Joint Center for Housing Studies came up with a similar conclusion."

but it also says

"So it appears that in neighborhoods with high foreclosure rates, values for all homes are being pulled lower than in areas where there are few or none."

from

Lower home appraisals appear to be up - Real estate- msnbc.com
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Old 01-05-2010, 02:10 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
Reputation: 17831
Are property short sales getting easier? - Mortgage Insider : The Orange County Register
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Old 01-07-2010, 07:33 PM
 
Location: Irvine
257 posts, read 946,074 times
Reputation: 114
I tried buying a short sale once and it was a sleezy experience - not something I wish to repeat.
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Old 01-07-2010, 10:31 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
Reputation: 17831
Quote:
Originally Posted by masalamomma View Post
I tried buying a short sale once and it was a sleezy experience - not something I wish to repeat.
That may be changing.
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Old 01-07-2010, 11:22 PM
 
Location: Irvine
257 posts, read 946,074 times
Reputation: 114
Quote:
Originally Posted by Charles View Post
That may be changing.
Really? How so?
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Old 01-08-2010, 09:27 AM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
Reputation: 17831
Quote:
Originally Posted by masalamomma View Post
Really? How so?
Are property short sales getting easier? - Mortgage Insider : The Orange County Register

Will a Quicker ‘Short Sale’ Process Bring About Healthier Home Sales in 2010?
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Old 01-10-2010, 01:37 PM
 
Location: Irvine
257 posts, read 946,074 times
Reputation: 114
Interesting. I never quite understood why the banks delayed so much in the first place. One short sale I looked at the owner had been living in the home without paying the mortgage at all for a year. Duhhhh, what?
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Old 01-10-2010, 02:00 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,748,294 times
Reputation: 17831
Quote:
Originally Posted by masalamomma View Post
Interesting. I never quite understood why the banks delayed so much in the first place. One short sale I looked at the owner had been living in the home without paying the mortgage at all for a year. Duhhhh, what?
This whole short sale/shadow inventory thing is really complicated and to me, pretty mysterious. I read Dr. Housing Bubble, Irvine Housing Blog and the OC Register Real Estate blogs amongst other things. I am still confused.
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