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In this episode you’ll learn whether or not Short Sales actually take longer than normal sales.
Short Sale Help for Agents: Do Short Sales actually take Longer than Normal Sales?
Short sales are definitely not going away anytime soon! In fact in many markets across the country distressed sales account for as much as 40% of houses being sold. To be successful in real estate now and in 2012, embracing the distressed property market – and specifically short sales– can be your key to success. We know that short sales are a necessary market segment and we also know that they need to be an integral part of every real estate agent’s business plan. Although short sales have been driving the real estate market for quite some time now, there are still plenty of how-do-I? questions being asked; possibly more now than when agents were just discovering how to do short sales a few years ago.
Why does it take so long to get a Short Sale approved?
But the question asked most often by my short sale boot camp students is “why do short sales take so long to get closed?” And while many agents may initially disagree with this statement the truth is that in many cases short sale don’t take longer to close, they just seem to take longer. It’s a common case of perception versus reality, similar to the eternity of time that passes while impatiently waiting for a red light to turn green, or the time spent waiting for a server to bring out the check after you’ve just finished a wonderful meal. The perception of time passing is a bit different than the reality… It just seems a lot longer than it really is. The same can be said about the time it takes to list, sell and close a short sale.Consider the following: In a normal real estate transaction you take a listing. Then you wait 30/60/90 days, or even longer, hoping for a buyer to come along. After that point you work out the details of the sale and move forward to get the deal closed which could take another 30 days or more. This adds up to 60 to 120 days from the time you listed the property to the time you close the sale and get paid. That’s the reality of a normal transaction.
Normal Listings: LIST to CONTRACT 94 days + CONTRACT to CLOSE 34 days = total of 128 days
Short Sale Listings: LIST to CONTRACT 11 days + CONTRACT to CLOSE 113 days = total of 124 days
The real difference in the time it takes to close a normal transaction versus a short sale is almost negligible, but the perceived difference is huge. This is mostly due to the fact that agents have been conditioned over the years to believe any sale should close 30 days or so after a buyer has been found. Short sales take much more time once a buyer has been found – normal sales take much less. So the next time you hear an agent complaining about how long it takes to get their short sales to close remember this; the perception of time passing, whether sitting at a traffic light or waiting for a short sale to close, is often perceived as taking much longer than it does in reality.
Let me know your thoughts by commenting below…
Happy Learning — Scot
The post SSP 004 : Short Sale Help: Do Short Sales actually take Longer than Normal Sales? appeared first on How to Sell More Houses.