Today I was reading some information on Short Sales and read some blogs where agents said – “No one is succeeding with Short Sales”. They asked why you would even show a short sale property to a prospective buyer. I always say the numbers tell the truth. And I’m sharing the Maui information with you.
What I found is that there have been many successful short sales – 49 have closed in the last 6 months. That is 5% of our market. The chance of actually closing a short sale is not nearly as high as with a bank-owned property. There are too many variables including lender, additional lien holders, tax implications and bankruptcy proceedings.
Here are the numbers…. (from MLS data with my special proprietary search capability)
last 6 months
|Short Sales Counts
|Short Sale Summary||258||11||49||97%|
|Bank-Owned Property Counts
The next question I asked myself was — are the short sales and bank owned properties good deals? The answer is “that depends”. As you see above, the ones that actually sell and close are offers close to list price. Average prices are 45% of the sold average price so short sales are definitely hitting harder at the lower end of the market. List price is often a good deal because agents systematically lower the price to a place that will sell. It is rare when a bank will accept an offer far below list price though! There were a few in the “80-89%” range (sale to list price ratio), several above list price but most were in the 95-100% range. Average for all of Maui in the same time frame was 94.4%. That tells me that there is more negotiating room right now with owners than with lenders.
Please contact me if you’d like lists of short sale and REO properties in Maui County.