Do ALL Short Sale Offers Have To Be Presented To The Bank?

The question is do ALL offers have to be presented to the Lienholders/banks on a Short Sale? This is a question that comes up time and time again. if you go out and ask 50 Realtors this question the chances are you are going to get a couple of different answers. The answer should be simple....YES they do. There are Realtors out there that will disagree with this statement. Under a normal sale transaction in North Carolina the seller and buyer negotiate a sale price for a home. Upon agreeable terms to both parties a revised contract is written and signed by the seller and the buyer. The buyer goes through their due diligence period and closes on the house. On a short sale, everything is the same until you get to the diligence period. After the seller and buyer sign the offer it is then sent to the bank for APPROVAL. yes, I capitalized the word. it is very important to understand that just because the seller and the buyer have agreed to terms the bank does NOT have to accept them unless it makes financial sense to them. A seller cannot terminate an offer and accept another offer because the terms are better than the first offer. A seller can notify their Realtor to inform the buyer that they will accept the offer as a back up offer on the house. That part is correct when Realtors say the seller will only entertain one offer and all other offers will be placed as back up offers. However; here is where the confusion comes in. Just because the seller has accepted the offer as a backup (which is the legal and correct thing to do) does NOT stop or preclude the listing agent from presenting the offer to the lien-holder. A lien-holder has a vested interest in the property as a third party. it is being asked to release a lien on a house without getting fully compensated for it. Thus, as a Realtor we are required to disclose to the lien-holder that there is another offer and the terms and conditions of that offer. it has become a material fact to the lien-holders interest in the property. What a lien-holder does with that information is for another blog post.... But as a Realtor we are required to present all offers to the seller and notify any lien-holder on a short sale of a subsequent offer....If your Realtor is not doing that, they are violating the rules and laws governing us. So, if you have your home on the market as a short sale and signed off on an offer and received another offer; what did you do? What did your Realtor do? Dave diCecco Realtor/Broker www.davedicecco.com

Market Report: NoDa/The Arts Distrcit Charlotte, NC. Nov. 2011

NoDa or also known as the Arts District is a suburb of uptown Charlotte. Conveniently located 2 miles from uptown it is home to art galleries and various southern cuisine restaurants. People love living here for the old world charm it still has. An old textile mill area of is a thriving area of Charlotte. Below is the market trends over the past three years for the area from November 1st to october 31st. 3 years ago there were 43 homes that sold for an average sale price of $242,541. They were on the market for an average of 62 days. 2 years ago there was 24 homes that sold for an average of $235,046. They were on the market for an average of 161 days. Last year there was 30 homes that sold for an average of $183,117. They were on the market for an average of 113 days. Currently there are 31 homes actively on the market for an average asking price of $250,258. They have been on the market for an average of 182 days. There are also 7 homes under contract. These homes have not closed yet. They have an average asking price of $277,000 and were on the market for an average of 191 days. Based on the current market conditions inventory levels are still high in this area. A six month supply of inventory is considered to be a blanced market. Currently there is a little over a year supply. this bodes well for buyers in this area right now. Dave diCecco Realtor/Broker www.davedicecco.com

Market Report: Crestdale Crossing Matthews, NC. 28105 Nov. 2011

Crestdale Crossing is a quaint 110 single family home subdivision located in Matthews, NC. 28105 just outside of the center of town. This quiet community was built in 2002-2003. It's families love the location to the highways, the great schools and family like atmosphere with children playing in the park or riding bikes through the cul de sac's. Below are the market trends for Crestdale Crossing for the past three years. This will give you a good idea of how the housing has trended in there. These numbers are from December 1st through November 30th. 3 years ago there were 4 homes that sold for an average sale price of $121,875. They were on the market for an average of 23 days. 2 years ago there were 5 homes that sold for an average sale price of $114,350. They were on the market for an average of 81 days. Last year there were 6 homes that sold for an average sale price of $90,933. They were on the market for an average of 101 days. Currently there is only one home for sale at $79,900. There are 4 other ones under contract right now. The average asking price of the ones under contract is $86,863 and they have been on the market for an average of 83 days. David diCecco Realtor/Broker www.davedicecco.com