Let’s take a look at the latest market conditions in Weddington, NC.

Active Homes (currently on the market)

Total:  39

Average Days on Market: 230

Average List Price: $747,951

SOLD Homes (from 6/22//11 – 7/11/11)

Total:  5

Average Days on Market:  149

Average List Price:  $508,940

Average Sales Price:  $494,400

These figures are from the local MLS and a macroscopic view of the Weddington Real Estate market.

The term short sales have become more and more part of everyone’s vocabulary.  In fact, roughly 40% of the homes in today’s market are short sales and foreclosures!  Although these properties are known for their value (which is sometimes accurate), they also have a reputation for causing buyers to become distressed as well.

So instead of avoiding these properties altogether, get educated about the most common dramas that go down in these deals, and how you can avoid falling victim.

Banks won’t take a lowball offer.

Banks owe their shareholders and investors a duty to get as much as they can for these properties.  Just because you see it’s on the market and listed as a short sale or a foreclosure doesn’t mean they’re going to give it to you for a fraction of its worth.  The bank’s goal is to get a purchased price as close as possible to the home’s fair market value, as determined by the by the recent sales prices of similar, nearby homes, with some adjustments made for the property’s condition.  Fact is, many banks would rather see the listing agent reduce the price by a moderate amount, and wait to see what offers come in, than to accept an offer 30% below the asking price just because there are no other offers on the table.

Avoid the drama by working with your agent to make a realistic offer, based on recent comparable sales in the neighborhood, not just on what you think you can get away with.  You can waste a lot of time, spin a lot of wheels and lose out on a lot of properties making lowball offer after lowball offer on distressed homes.  Sit down with your broker or agent, review the ‘comps’ and make a smart offer that reflects a good value for you, is within your budget and is not bizarrely out of the realm of the fair market value of the property.