Working with Luxury Short Sales in the Twin Cities
While high end homes don’t go into distress too often, the current market is causing some home owners to pursue the short sale route when selling their home. With home prices dropping in expensive neighborhoods, and seeing as many were artificially inflated due to the real estate market a few years ago, luxury homes are now seeing a much needed market correction.
Unfortunately, there are not as many buyers out there who can afford an expensive home (not to mention the high property taxes that come with million dollar homes). Currently the most concentrated area in the Twin Cities Metro area for short sales is in and around Lake Minnetonka, including areas like Chanhassen and Medina. But you can find a luxury short sale here and there throughout the Metro area.
Having worked with high-end short sales, I can say that they are quite different than the normal sale. The ones I have worked have almost always involved a higher up…not the average remedial negotiator who could give a rats butt, but someone who understands the potential huge financial loss that a million dollar home would create on their books. A $1.5 million dollar foreclosure is so much worse than writing off a few hundred grand in a short sale.
Case in point, a luxury short sale listing I successfully sold this spring became a success because I got the ear of the Vice President of the bank. He agreed that a $400,000 loss was much better than a $1.4 Million loss. Granted I am sure they would have gotten some money back if sold as a foreclosure, but it would have been much less than that of a short sale, not to mention the court and lawyer fees that would have been tacked on to the net. Working like a team to reach a common goal, the bank and I were able to negotiate very well together, creating a deal that helped the home owner out of a jam, and got the buyer a super deal in an expensive neighborhood.
If I had to give one piece of advice for a home owner looking to sell their expensive real estate as a short sale, than I would recommend finding an agent that not only specializes in luxury homes, but also has experience in short sales. (There are very few of us that do.) For the short sale million dollar homes currently for sale, most of them have an agent that has little to no experience in either. Sadly, this really only hurts the home owner as they don’t get what they really need – the successful sale of their home and avoiding foreclosure.
If you have any questions regarding the short sale of your home, please feel free to contact me anytime!