What is a short sale? A short sale is when a homeowner is upside down or owes more then the home is worth when closing cost are added and the bank agrees to let the owner offer the home for sale but with third party approval (the lender).
Looking at homes for sale in the Multiple Listing Service (MLS) in Central Florida we see short sales from condominiums and town homes to single family homes and yes even estate homes in Dr Phillips and Windermere. It’s a great alternative to a foreclosure which can be on your credit history for seven years and it also gets a homeowner out of a home they can’t afford.
The problem the real estate market is having with short sales is the list price in the MLS many times is a number the bank is not willing to accept. This causes problems for homeowners just trying to sell their home the old fashion way and makes them compete with unrealistic list prices which can bring down home values in communities. Sure value is found by sold comparisons not active homes on the market but having short sales sitting for months with low list prices just so that they can get showings and offers is an unfair advantage to sellers that are trying to keep the values in their communities and of course sell their home for the highest price possible.
Bank owned homes, short sale, preforeclosures are all sellers and should be allowed to list homes at any price. This is a free market and that’s the beauty of it but listing a home at a list price just to get activity is not fair and not free, we are all paying for it.
