We have been reporting on the status of the real estate market in the Santa Clarita Valley - We have seen that the majority of the inventory are and have been short sales. The Short Sale is a property where the owner is attempting to get their Bank or Banks to allow them to sell the home, condo or town-home for less than the amount they owe.
Here is the most interesting thing about the SCV Short Sale Process - they are doing funky things with our Local Santa Clarita Values. Instead of holding true to form and pricing the short sales at FMV - Fair Market Value - some of the agents are undercutting the real estate market to the tune of $40,000 to $100,000 in some cases.
When people are looking to purchase a home - they are seeing those low values and prices - they automatically assume those are "real" prices. When in fact, there is no way that the banks are going to allow for that much loss with the properties they are agreeing to sell short.
Those that are "assuming" those are the real prices and true market values - are not getting good advice from their Realtor of Choice. Or maybe they are turning a deaf ear to them. Sometimes for some people, it is easier to hear what they want than hearing the truth.