With the Santa Clarita short sales stacking up, we are caught in a bit of a quandary. The "Standard Sellers" in The Santa Clarita Valley are at a loss. If the agents only priced their sellers short sale listings at fair market value, the Standard Listings might have a chance.
Unfortunately, some are looking at short sales as a reason to deviate from the Fair market value pricing. This is due to the disclaimer that is included with each and every short sale listing, "The price, commission, all terms and conditions are subject to Lender approval."
If a Real Estate agent had a listing in Valencia CA with a Fair Market Value of $500,000.00, and if it was a short sale, with the above disclaimer, the agent could place it onto the Santa Clarita for sale market at $300,000.00. The Sales Price is still hinging on Bank Approval.
The "Run-On" aside, this causes the Standard Santa Clarita Seller quite a bit of damage. Why would a buyer want to pay more than $300,000.00 for a similar "Standard Sale" listing in the same neighborhood?
However, everything is connected together. The economy, the debt, the unemployment and real estate. It impacts the entire society as a whole.
Here is our latest Santa Clarita real estate blog update for March 2012.