Originally posted at http://bigbearizzy.typepad.com

With the large amount of home owners in financial difficulties these days, short sales are becoming more and more prevalent. Some really great prices on short sale properties have been coming on the market every day in Big Bear. While they can be a good buy, there are a few things you need to be aware of.

First, just because a Realtor lists a property as a " Short Sale " doesn't mean it really is. Some Realtors don't do the research and just list a home as a short sale because the seller tells them he is willing to take less than he owes for the property. While that sounds great, it isn't all up the the seller. The bank has the final say on whether or not they will accept less than is owed on any particular home. A good example of this is something that happened to me a little bit ago. My clients and I found a short sale listing that they really loved. It was listed at $299,000 , which was a very good price. I told my clients that short sales can take some time and to be patient. We made the offer and prepared to wait. Imagine our reaction when, a week later, the bank countered us at $330,000. $31,000 over the listed price. The bank was not prepared to do a short sale in any way. They countered back at the full amount owed on the home. Somewhere along the line, there was a communication breakdown between the Realtor, the seller, and the bank. To make a long story short, we had to find another house and the Realtor had to list the home at $ 330,000. My clients were disappointed, but they realized it is the nature of the game.

Another thing to be aware of is the fact that as soon as the contract is signed by both parties, it is valid. Even though you have to wait for the banks approval, you have still entered into a legal contract and must act accordingly. If you, as a buyer, decide to buy a short sale property, it is something you need to be aware of. I would recommend that you don't make an offer unless you are serious about purchasing the property. Making an offer " To see what happens " is not a good idea. Make sure that your Realtor checks the box on the short sale addendum that states that the contingency period does not start until the bank accepts the offer. You don't want to waste money getting inspections on a home where the offer might not even get accepted.

If you would like a list of the properties available in Big Bear, shoot me an email and I'll be more than happy to accommodate you. It's a beautiful day in Big Bear.