Short Sale Discounts in Newport Beach
By John Hyatt www.JohnHyatt.com
Literary buffs will recall in the Merchant of Venice’s phrase “all that glisters is not gold”, later modify to “all that glitters…”.
Newport Beach and Laguna Beach Short Sales certainly have a lot of glitter keep in mind though, as of today, there is a cost factor not displayed. That would be the additional buyers cost to close. Just to name just a few: delinquent HOA fees, repairs and a possible incentive to the other junior lenders. Example being a home in Ford Road closing at much less that the other models with the heater, air conditioner, cabinets, toilets and tubs removed by an angry contractor, bringing the real purchase price to close to or over other recent sales when you take into consideration the carrying cost during repairs and renovation.
The second quarter of 2011 , charted below, had 33 Short Sales close. The average discount varied from a whopping 23% over asking price all the way down to -11% off. The average short sales in Newport Beach was $806K and discounted 2.2% , taking 228 days to sell.
This chart reflects a tightening over the majority of banks on discounts but still widely varied.
You can see that there are bargain out there but be sure to understand what the final cost will be before putting pen to paper.
It would be very wise to carefully review the comps of non bank owned or short sales first at www.JohnHyatt.com or request a custom search tailored by price range and size available on this site. Then John can tour with you the selected short sales.
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