Jeff Davi, California Real Estate Commissioner, addressed a group of Realtors® at a recent Women’s Council of Realtors® meeting and informed us that in California 54% of all real estate transactions are either short sales or REOs. But unfortunately, according to statistics, only 27% of short sales actually close, and after a very long time at best. That makes buying or selling a property through a short sale an iffy proposition but one that can’t always be avoided.

Here is the story of a client of mine who attempted to buy his first home which was a short sale.  After the end investor decided to pull the property (it was not part of the 27%), it sold at auction, was remodeled and put back on the market. My client was able to purchase the property in its new state for only a few thousand dollars over his original price. And he had a new kitchen and floors. But it took him 9 months.

In the meantime, the investor lost money, the person who bought it at auction made money, and my client maintained his same position. There is definitely something very wrong about that system.

I have a new luxury home coming on the market as a short sale. It is with some consternation that I take this listing with only a 27% success rate. But the clients deserve my best efforts to assist them and I will do everything I can to facilitate a sale for them. Hopefully I will write a blog about a happy ending again.

Posted by:  Judy LeMarr