Manhattan New York Short Sales is becoming a common phrase in Manhattan Real Estate market. Buyers should know the Short Sales Process and manage the expectation to what is required of them.
Feels like yesterday, Manhattan New York Real Estate was selling record prices in buildings such as 15 Central Park West and The Plaza Hotel. Today, we are reminiscing those days where Foreigners are in town and buying High-end Manhattan Real Estate with not much of thoughts or aggressive negotiation.
Manhattan Short Sales is coming to New York. As Manhattan New York Real Estate agents, we have been hearing a lot of short sales and bank owned properties surfacing all over rest of United States real Estate market. Not only until recent 6 months, those short sales are starting to creep into the North part of Manhattan neighborhoods, such as Harlem, Riverdale and Inwood. Now you can find a short sale or two in newly construction buildings that were built in the last 5 years.
As experienced short sale agents, we handling Manhattan short sales for several distress sellers, all in new construction buildings, new construction buildings that were built and sold in the last 5 years. These sellers bought in a market where new construction were guaranteed to appreciate in value as long as you get into the sales office the first phase of the marketing process. The buyers were required to put down only 10 percent of the price, and they were granted a mortgage with almost any lender. So with a $1M property, the buyers were only required to have $100,000 + the closing cost to the closing table. Not too bad for a million dollar condo.
I am faced daily with questions by the buyers and buyers’ agents on the short sale process. It is important for me as listing agents to explain the process and different challenges we may encounter as we move forward. Managing expectation is a must.
Manhattan Short Sales Buyers:
- Be Patient. If you need to move in immediately, this is not the one for you. The lender will take their time to review the short sale package and it is similar to a Co-Op board package, it can take anywhere from 90 days to 180 days from offer + short sale package submission to close.
- MAYBE Deals but not Steals. If you plan to make an offer, please present your best and highest offer. Lender is absorbing the loss of this property, therefore the lender will want to minimize as much loss as possible. The BPO (Broker Price Opinion) or appraisal will show the lenders the most recent market comparables, the lender will not sell lower the fair market price.
- Best and Highest offer. Short Sales processors at the bank that have a lot of cases to work on and documents to look and work through, our case is only one of a million, so make their work easy is the key to successful Short sale transaction. As a Short Sale listing agent, I will not put the seller in a position where the sale price is the reason that we do not receive an approval. Therefore short sales buyers, please do not expect the lender counter your offer. If you can not present your best and highest offer, we will be happy to keep your offer as a back up offer. The lender will rather say YES or NO, lender likes certainty, not maybes.
- Cash MAYBE be the king. If you are an all cash offer, which most of our short sales buyers are. That is a plus. However, the lender are looking to absorb as little loss as possible, so just because the offer is all cash with no mortgage contingency, it does not mean that you will be approved compare to other higher offers that needs financing. Price is the most important concern for the lender.
We are Real Estate agents under one of the most successful Manhattan Brokerage firm Prudential Douglas Elliman with extensive market knowledge. In addition, we have the confidence and success rate in completing Manhattan short sales transaction.
If you are an owner that is unsure if you are qualified for a short sale or already behind your mortgage payment, call us today at (917)837-8869 or email us for a confidential conversation.