The Growing Popularity of Short Sales in Colorado Springs
Short sales are emerging as a trending topic in the Colorado Springs property market. As the threat of foreclosures increases, banks and homeowners are joining forces with proactive market professionals to sell properties at discounted prices. When a homeowner is delinquent on payments and at risk of foreclosure, a real estate agent can alleviate the situation with a short sale. However, short sales are not simple. As stated by the Colorado Springs Business Journal, it requires a committed and sharp real estate agent to steer the process.
The Complexities of Short Sales
Short sales present an alternative to foreclosure by selling property for less than the amount owed by the homeowner. They provide the lender with approximately 80% of the property’s value, which is certainly more beneficial than a total loss. A foreclosed home brings its own set of challenges. Banks must reestablish its value, cover repair costs if the property is damaged, and potentially face high broker commissions. Moreover, it could take several months or even years to resell the property.
The Crucial Role of Real Estate Agents in Short Sales
Short sales provide banks with options, but it requires a persistent real estate agent to arrange the deals. Tiffany Lachnidt, team leader of The Distinctive Group, a Keller Williams Real Estate affiliate, was propelled into distressed transactions in 2007 when an investor-client asked her to list and sell seven residential properties facing foreclosure. “We got them all sold within a year,” she said. Now, half of her business consists of homes at risk of foreclosure, bank-owned real estate (REOs), or short sales.
Despite the challenges, short sales are facilitating property sales. This process showcases a real estate agent’s bold, innovative spirit, and a circumstantial willingness on the part of the lender. A struggling market needs intelligent alternatives to survive, and it seems that real estate agents and banks are recognizing this.
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