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SALT LAKE CITY — Housing market insiders say they're seeing fewer short sale homes on the market. There are still plenty out there, but analysts say people need to find the right agent before considering one.
Some analysts say the drop in the number of short sale homes can be attributed to home values going up.
"Two years ago, when home values were down by maybe 15 to 20 percent from where they are today, [people] struggled trying to sell their house. Basically, that ended up in a short sale," said Al Bingham with Republic Mortgage.
Bingham said two years ago, a lot of potential home buyers were not well informed by their agent about all of the potential snags in the process. Buying a short sale home can frequently take a very long time. Sometimes, it can take so long that the buyer loses interest.
"I've seen several short sale offers go out several months," Bingham said. "I've even seen one that went out eight months."
Bingham said the problem is that banks and lenders don't have a set list of regulations they must follow. Each loan process is different. Even if a contract is signed, that doesn't mean there won't be negotiations over the home price later. Bingham said these negotiations can happen a lot before the sale is finished.
The final home price might not necessarily cover the costs of potential repairs that need to be made. Bingham said many of a home's previous owners didn't take as much care of the house as they should have.
Related:
US home prices rise 12.2 percent, best in 6 years
U.S. home prices jumped 12.2 percent in May compared with a year ago, the biggest annual gain since March 2006. The increase shows the housing recovery is strengthening."They're not going to put money into a home that they're eventually going to leave and lose to the bank," he explained.
If you're in the market for a short sale home, Bingham said it's important to know just how much experience your agents and loan officers have with these kinds of homes.
"If they haven't done that many, or if they haven't done any, that's a tell-tale sign that maybe there is an issue or maybe they're not experienced enough to understand, exactly, the issues that can go along with short sales," Bingham said.
