Scottsdale Arizona Short Sales Popularity Growing…

Scottsdale Arizona has seen quite a few real estate market changes over the past few years and one of the growing trends right now is short sales.  A short sale is when a property is sold for less than the outstanding mortgage balance and the bank agrees to take less in order to close the deal. 

Scottsdale is an amazing city and a fantastic place to call home but has been susceptible to wild real estate market swings just as the rest of Phoenix.   Even affluent Scottsdale home buyers have seen a drop in their home prices and considering the current economy it’s not always feasible to continue to pay a mortgage on a property that has lost 30% or more of it’s value.  We are seeing an increase in the number of calls we are getting from homeowners who are underwater in their home and right now their main concern is trying to avoid foreclosure.

There are currently about 4800 active Scottsdale homes on the market and about 950 of those are short sales.  That makes 20% of the active listing homeowners just in the Scottsdale real estate market alone that are underwater, or owe more than their property is worth and are actually trying to do something about it.  These numbers don’t take into account the large number of people that just let their property go into foreclosure, which is about the worst thing they can do.

What we try to do is explain all of the options available to the homeowner so they can see that burying their head in the sand and just letting the property go is not the way to go.  Very few people end up qualifying for a  loan modification and about 50% of those that do end up not paying after the first 6 months anyways so it’s usually best to try the short sale route.  Banks are becoming much more receptive to short sales and they are an excellent way to write off those large discrepancies between your balance and your current property value. Plus, we can usually get our clients back into the purchase of a home after just 24 months.

Love ‘em or hate ‘em, it looks like short sales are here to stay – and are becoming much more common, even in higher-end areas.  Before considering a foreclosure or a short sale, please speak with a professional regarding your situation.

Related posts:

1. Arizona Short Sales and REO Listings by the Numbers
2. Phoenix Real Estate Stats – Current market conditions
3. FHA underwater program begins today
4. Phoenix – Scottsdale Home Stats
5. Scottsdale Luxury Homes take a hit as real estate market continues decline.