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SANDY -- One in seven homes listed for sale on the real estate board's Multiple Listing Service in Salt Lake County is what's termed a "short sale."
A short sale basically means a homeowner is asking the bank to let them sell the house for less than what they owe. The rise in short sales can be traced to the troubled economic times.
"There are a lot of properties purchased at the height of the market and in order to move those properties, it needs to go to a short sale," said Dave Anderton with the Salt Lake Board of Realtors. "You can actually look at it as a good thing. I'd rather see more short sales and less foreclosures."
Short sales can be good for buyers, who can get the property they want at a pretty good price. But there are some catches: you're competing with other offers (which have to be priced by market comparables) and you've got to get the seller's bank to sign off on it. That alone could take several months to get an answer on whether your offer is accepted.
"Short sales aren't for everyone," said Deanna Devey with the Utah Association of Realtors. "If you're a buyer who wants to go and be in your house in a month, a short sale is probably not for you. But if you're someone who, ‘I have time to wait, I'm looking for a good deal, I'm going to be really patient,' a short sale is what you want."
A short sale sometimes can be one of the preludes to a foreclosure, which Anderton said is also on the rise in Utah but still below the national average. On the bright side, house sales are also going up in Utah.
"Some of that's being driven by the first-time buyers and the tax incentives being offered by the federal government, the state housing grant of $6,000. These short sales are driving sales, too," Anderton said.
President Barack Obama's administration recently announced new incentives for short sales, including money for those who facilitate a short sale and homeowners to help with relocation expenses.
E-mail:bwinslow@ksl.com
