With sales of distressed properties (foreclosures, short sales, and relocation company-owned properties) making up more and more of the Flagstaff market each month, many RE/MAX Peak Properties agents, including me, have completed a series of classes in how to get these properties successfully to closing, whether representing the buyer or the seller of the properties. I’ve written several posts on the topics of short sales and foreclosures, including:
Short Sales in the Flagstaff Market, February 8, 2009
What Is a Short Sale? July 22, 2008
Want to Buy a Flagstaff Home in Foreclosure? July 23, 2008
And, I’ve started to include a breakout of distressed property sales in my monthly Flagstaff real estate market report: Over 25% of Flagstaff home sales in February were distressed property sales – still significantly less than the national norm of about 50%, but the numbers here are climbing. Flagstaff lagged the national decline in home sales and Flagstaff is likely to lag the upswing. Meanwhile, adjustable-rate-mortgage resets will not peak nationally until 2011, so we’ve got more distressed sales to come.
If you are a buyer and want to take advantage of the low prices offered by foreclosures or short sales, the key to getting through the transaction is patience. Amy Hoak writes about the need for patience in buying a home listed as a short sale in today’s MarketWatch.com real estate report. While you would think that foreclosures would move faster because those homes are already in the bank’s inventory and the bank’s incentive should be to move them, I’ve encountered frustrating delays for buyers seeking to buy foreclosed homes in Flagstaff. The hard fact is that the employees at bank servicing agencies are overworked and overwhelmed with the level of properties they have to deal with. The result of this situation is a tough escrow process that requires a determined buyer and skilled real estate agent. Here are Amy Hoak’s five warnings for home buyers, and a link to today’s article:
1. You’ll wait in the dark.
2. Banks will make you a deal, but within reason
3. Sales are 'as is'
4. Have a back-up plan
5. It's not only about price
Short sales, slow sales: Check out short sale properties, but get ready to play the waiting game, article on MarketWatch.com. | 
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