Short Sales - Think beyond yourself!

Short sales are on the rise throughout the nation and we are starting to see more and more of them here in Glendora. 

Short sales occur when the worth of a house is actually less than the amount owed to the bank and the  seller unloads the house at fire-sale prices.

Banks are accepting these deals in order to reduce some of their inventory even though they are not receiving back all of the money they are owed.  However, this is not my concern.

I am concerned with seller (and real estate agent) lack of knowledge and understanding of short sales.  There are a lot of agents out there, especially ones not from Glendora, who will tell you the price at which you sell short does not matter.  Since the seller will not receive any money out of the deal, why should he care about the price at which it sells.

Well, the seller should care and your agent should explain why.

First off, the sale of your house will set the new comparable price for the next sale in the neighborhood.  So, if you take an extremely low price on your home you are really hurting your neighbors.  Now they will be forced to take a lower price when they go to sell their house even if they are making standard sales.

  These are the people who watch your house why you are away, walk by each night and say 'hello,' or may even babysit your children. 

Is it fair to them that your financial situation is going to have such an impact on them? 

Beyond that, when the prices in the neighborhood are being lowered this will mean less real estate taxes going to the city of Glendora.

If the city is receiving less money, this will affect our roads, water lines, parks, schools, etc.  As residents of Glendora, we want to keep the values of our homes as high as possible even in this tough market.  Most people selling their homes on short sales are not leaving town, just trying to get out of the house which they inhabit.

They may be trying to purchase a home in Glendora down the road once they get their finances figured out.

Here is something else that many people don’t think about.  As taxpayers, we bailed out the banks so that they would not all go out of business.  The government is still helping to cover the banks losses on many of these short sales that are happening.  Who is covering these losses?  We are!  The lower these homes sell for, the more losses that the banks have and the more money the taxpayers are paying to cover those losses.

In no way am I saying to hold out and try to get the absolute highest price possible, as short sales need to be taken care of fast.  But, don’t throw your $400,000 house on the market for $199,000 because it doesn't matter to you what price the bank gets.

Just take a minute to think about your neighbors and the ramifications of what you do and list the house for a solid price that will sell quickly, but will not ruin the neighborhood.