Fair Market Fantasy for Tampa Bay Florida
December 9, 2008
You’re probably wondering what the fair market value of your home is in this nightmare real estate market. I suggest you get rid of that idea as it is virtually a meaningless statistic. Fair market sales aren’t very common in the Tampa Bay Florida real estate market right now. But if you’re just dying to know email me at email@example.com and I’d be happy to help you with home valuation. I can tell you the fair market value and what I believe is a more realistic listing and sales price.
Welcome to the world of REO’s and Short Sales
Most of the homes selling in Tampa Bay Florida today are either REO’s or Short Sales. REO stands for “Real Estate Owned,” which, if you ask me, is a rather silly acronym. REO’s are owner by the banks. These are foreclosed homes where the sellers have lost the battle and are now out of their homes. The banks have hired REO listing agents to attempt to sell the properties. If the REO listing agents fail to sell the homes might end up being sold at auction.
Short Sales are homes that are still owned by the sellers, but they are teetering on the edge of foreclosure. If they don’t sell they will be taken back by the bank, but in order to sell the seller must sell at a price lower than what they owe their lender. (I am over-simplifying this process) The lender is getting “shorted” a sum of money so the lender must review the sales agreement and either approve or reject it.
Sellers that are in good financial condition that simply want to sell their homes at the fair market value have a real problem on their hands. They are forced to compete with a large quantity of very low priced bank owned and short sale properties, and usually it is simply impossible to compete and still walk away with some cash at closing. Unless the seller has tremendous equity this is just not the time to sell. I strongly suggest sellers sit back and wait this real estate/economic crisis out. While the market is saturated with REO’s and short sales fair market sales will remain a fantasy in the Tampa Bay Florida market.