SHORT SALE vs. FORECLOSURE

I find that I have to explain the difference between a short sale and a foreclosure rather often. In the MLS the homes that are on the market and are short sales will have words like "subject to lender approval" in the public comments. These homes are not bank owned.

What is a short sale? It is when the bank agrees to accept less money than what is owed on the home. The sellers still own the home, but the offer is subject to the lenders approval. The home owner also has to approve the offer.

What is a foreclosure? It is a bank owned home. The owners did not pay their mortgage, and the bank went through the foreclosure process and now owns the home.

When a seller lists a home they agree to a certain price for it and put it on the MLS. In the case of a short sale, the seller has agreed to a certain price and put the home on the market. When an offer comes in, it is subject to bank approval. The "loss mitigation" department at the bank has to get a price opinion on the property and then who ever is in charge of the file has to get approval before the offer can be accepted. That means that the price you see on the MLS may not be what the bank will accept. We don't know what the bank will accept. The person who has the file usually has a few hundred other files on his or her desk, and it is just a file. Buyers can wait over 30 days for any kind of an answer. Sometimes with the short sales the home is listed for one price, but the bank has not agreed on that price. Sometimes they list it for a low price and collect offers over a period of months. Usually the buyers give up long before they have that yes or no answer, and sometimes the home is foreclosed on while we are all waiting for the answer.

With foreclosures buying them isn't always easy, but it isn't as hard as buying a short sale. A foreclosed home is already owned by the bank. Each transaction has been far more work than buying a home from an individual seller, but they frequently get worked out and go to closing.

If you have any questions about either process, give us a call for more information.

The Butler Team - 918.740.1000

Tina & Mike Butler

ButlerTeam@cctulsa.com

www.Tulsa4u.com

THE PRICING GAME

It has never been easy to price a home, and these days it's more difficult than ever. Buyers see everything on the market as being over priced and rarely offer full price. They are tuned in to all the negative ecomonic news and assume Sellers are anxious to sell. If a home is priced at or slightly under market value it will attract buyers and have showings, but offers on it will be for less than the asking price by at least $10K on the average priced home. It isn't a good strategy to price a home at $10K over market value to help sellers get their bottom line. Homes that are over priced by any amount do not get many, if any, showings. Without any showings there are no offers and the homes sits on the market month after month.

Market times are a little longer than they used to be, BUT homes are being sold every day! The homes that sell are those that are properly priced. An experienced realtor will spend a lot of time going over comparable solds in the area to suggest a realistic list and sell price. The good news is that once an offer comes in it can be negotiated up. Buyers seldom make their very best offer on the first round and they will negotiate. I like to think of low ball offers as "opportunities." The value of a home is what a Buyer will pay for it and it is Buyers that dictates the value of real estate, not the Seller. Sellers have to be ready to play the pricing game and realtors have to be willing to go that extra mile to recommend a price that is low enough so that Buyers will see the home, but high enough that when an offer comes in it is possible to negotiate it up to an acceptable amount.

The Butler Team (918) 740-1000
Tina & Mike Butler
ButlerTeam@cctulsa.com
http://www.tulsa4u.com/

BIXBY - THE PLACE TO LIVE!

Our thriving community is one of the fastest growing cities in Oklahoma! Why are people choosing to move here?

Quality of Life: Make one visit to Bixby and you'll see why it's one of the fastest growing communities. A great quality of life, excellent public education system, one of the lowest crime rates in the Tulsa metro area, and convenient access to metropolitan amenities. Area natives and those new to our community have discovered a diversity of beautiful neighborhoods carved into the rolling green landscape. Residents enjoy raising their family where business owners know your name, and neighbors come together in times of need and celebration. Bixby offers the quality of both single-family residential and multi-family residential dwellings. The cost of new homes range from $150,000 to over $1,500,000.

Perfect Balance: Bixby is close to everything attractive about a metropolitan area, while still maintaining a hometown feel. No matter who we ask, the 'small town' feel along with the beauty of the landscape is one of the top things that our citizens love about Bixby. It's a wonderful place to raise your family and also a great environment for business...large or small!

Leadership: Behind the scenes and in front, you will find a strong contingency of individuals that BELIEVE in Bixby and have a strong vision of making Bixby the premier community in Oklahoma.

We've put together a page on our website that highlights Bixby's parks, festivals, Spirit Bank Event Center, Bentley Park Sports Complex & more. Click here to learn more about the community we live, work, and play in!

The Butler Team

Tina & Mike Butler
(918) 740-1000
ButlerTeam@cctulsa.com
Bixby4u.com