More on Distressed Sales: Five Pitfalls of Distressed Real Estate Listings
Working with distressed real estate listings is not for the faint of heart. Navigating through the minefield of a short sale or foreclosure takes skill and awareness to avoid having your deal blow up -- or even worse, your business. Here’s how to sidestep potential pitfalls:
- Refer the business to another agent if you aren’t adequately trained to handle these transactions.
- Avoid making recommendations if you don’t know your seller’s financial status.
- Determine what kind of loans your seller has on a property and what type.
- Have an attorney review all lender listing agreements.
- Engaging in property management issues can be dangerous.
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Of the 53,597 sales in TREND, 8,422 of them, or 15.7%, were considered to be either bank owned properties or short sales.
Inside the Numbers: REOs
The counties with the highest rates of REOs in 2010 were:
- Kent County, DE – 16.5%
- Philadelphia County, PA - 15.8%
- Salem County, NJ - 14.2%
The counties with the lowest rates of REOs in 2010 were:
- Chester County, PA - 5.5%
- Bucks County, PA – 6.2%
- Montgomery County, PA – 6.2%
Inside the Numbers: Short Sales
The counties with the highest rates of short sales in 2010 were:
- Burlington County, NJ – 8.9%
- Mercer County, NJ – 8.6%
- Camden County, NJ – 8.4%
The counties with the lowest rates of short sales in 2010 were:
- Berks County, PA – 2.8%
- Philadelphia County, PA – 3.4%
- Delaware County, PA – 3.5%
Dedicated Fields Improves Accuracy of Statistics
TREND has improved our method of collecting data on these properties which has resulted in improved- and more accurate – statistics on distressed properties. We added fields in October 2009 which make it easier for you to report these conditions. This information is captured when the listing is entered and again when the agreement of sale information is entered.
As a result of these fields in the MLS, we’ve been able to gather more accurate and reliable statistics related to distressed properties throughout our entire MLS coverage area. You now have a dedicated place to accurately report a distressed property when they exist.