Over the last three years, the real estate market has turned upside down. In the last year, the prevalence of short sales in the Tempe, AZ has gone up while REO listings have gone down. Here’s a brief analysis of the Tempe short sale market, plus an answer to the question, “Is now a good time for a short sale?”
The Statistics
Short sales make up about 25% of all listings closed. The remaining half consists of REO’s and traditional listings split almost 50 / 50. REOs and short sales combined are more common than traditional home sales. This means that on more than half of their properties, banks are both selling homes for less than they’re owed or they’re foreclosing on the property and taking a loss.
The median sale price in Tempe is $155,000. Since short sales generally go for 15% to 35% less than market value, a short sale buyer can expect to save $23,250 to $54,250 in the Tempe real estate market.
What Do These Numbers Mean?
The way the market’s shifted has likewise shifted how a short sale might typically be done. A few years ago, many real estate agents had never touched a short sale. It seemed like an esoteric real estate practice that they didn’t need to learn about – They just needed to know how to find and close traditional listings.
That kind of belief is less prevalent now. Real estate agents are more experienced at short sales, which mean you’re more likely to find someone with real expertise to help guide you through the process. Experts in short sales have also come into the picture – real estate agents who specialize in helping people in conducting their short sales.
The market has also had an impact on the banks. Banks are more inundated with requests now than ever – Meaning short sale requests may take longer than the past. This means it’s absolutely crucial you get your paperwork and documentation right the first time around. If you miss something in your documentation, this could result in your request not being processed by the banks – lengthening an already lengthy process.
Is Now a Good Time for a Short Sale in Tempe?
I believe the answer to this question is “It depends.” For sellers, first take a good look at your financial situation. See if a short sale is really what you want to do and whether a short sale is truly viable in your situation. If it is, then the answer is yes. Definitely choose short sale over foreclosure.
For buyers, the question comes down to: If you could wait 8 weeks to 6 months to close on your home and in exchange save somewhere between $23,250 to $54,250, is that worth it to you? If the answer to that question is yes then you’re in luck, because that’s exactly what the Tempe short sale market looks like right now.
There isn’t a cookie cutter answer to whether or not now is the right time – The only answer that matters is whether or not these market conditions make it the right time for you. Only you can answer that question.
Call one of our short sale experts at (480) 331-2832
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