52% of condos* for sale in the metro Phoenix MLS which are priced under $75,000 are in some stage of foreclosure (they’re listed as either “short sale” or “pre-foreclosure”).
Here’s a handy chart for the visually oriented. “SS” equals Short Sale and “PF” is for Pre-Foreclosure.
|List Price $75,000 & Under|| List Price|
|All condos for sale now||1,981||5,186|
|Condos for sale now that are SS/PF||1,024|
52% of total
39% of total
|SS/PF units sold since 1/1/10||204||251|
|Months waiting on seller’s lender to OK the deal||4.1 months waiting||4.9 months waiting|
|Absorption rate of SS/PF||9.7 months||20.66 months|
What does all this mean?
If you’re trying to buy a short sale or pre-foreclosure condo, patio home or townhome, you’re going to wait about 4 to 5 months between the time you make the offer and the time the seller’s lender approves the deal. If they approve the deal. It might be worth your while to look for properties that aren’t short sales and try to convince those sellers to come down a little in price. It’s so much more convenient to buy from someone who’ll actually answer you in hours or days, not months! Decide how much of a premium you’re willing to pay for a quicker answer, and someone with whom you can negotiate repairs and who pays for a home warranty, prior to closing.
If you’re trying to short sell your condo, etc., you’ve got a lot of competition. Have your documentation in order (for your lender, explaining why you need/deserve a short sale) and have a backup plan. Maybe your backup plan is talking to your lender about a loan modification instead of a short sale or outright foreclosure? Maybe it’s making plans for where you’ll live when time is up? Whatever it is, you’ll have 3-5+ months to create it.
Image courtesy of StockExchange user xmje43p
Disclaimers: data pulled from the Arizona Regional Multiple Listing Service on Monday March 30, 2010 at 11:20am local time. Data believed accurate but cannot be guaranteed. *In this post, “condos” includes properties classified as apartment style/flat, patio homes and townhomes.