What are Short Sales ?

Short sales are sales agreed to by a lender, to avert foreclosure, that will provide less than the outstanding balance of the original loan.  After the owner has signed an agreement for sale with a potential buyer, the lender or lenders have the right to accept, reject or make a counter-offer to the buyer.  In Nevada the process often takes 3 months or more to get an answer on a short sale offer from the lender, and buyers typically find that they get a counter-offer rather than an acceptance.

Losing three (3) months waiting for an answer to an offer is usually enough to turn most potential buyers off.  The remainder a frustrated after they have gone through the process a few times and come up empty.  With short sales being fraught with delays and often yielding only counter-offers and not acceptances, many buyers decide to bypass the process altogether and shop for foreclosed / REO bank owned properties.

During this time of falling prices appraisers are often contacted by owners who cannot believe that the prices of homes within their subdivision have fallen so dramatically.  Appraisals often reflect the fact that properties sold using short sales and REO sales are indeed comparable market sales.  While some properties that end up being sold in foreclosure need significant work, others are in good to excellent condition, and appraisers consider condition in their appraisal reports.  When auctions, short sales and foreclosures all point to declining prices, it must be understood by owners that an appraiser cannot base their value opinion on the highest price paid in the neighborhood.            

Contact us with your questions or concerns regarding your specific appraisal assignment in Nevada at 1-702-568-6699.  We can also be e-mailed at grigdon@cox.net.  

Commercial Real Estate Appraisals in the Las Vegas & Henderson, Nevada Area.