Quite simply, the answer is yes. While some banks are still having trouble stomaching taking a huge loss, many others are realizing the necessity of getting homes off their books, or keeping them off there in the first place. I am seeing many more short sales sold at low prices.
Take, for example, a home that closed this past month at a price of $145,403. The original list price started out 138 days ago at $227,000. The owners had bought the home for $250,000. Instead of going into foreclosure, they were able to get the bank to agree to a short sale. And some short sale this was!
The buyers are now sitting on a home with instant equity because they bought it greatly under market value. If they hold the home for at least five years, there is a very good chance they would make a good resale profit on the home, should they sell in the distant future. The positive point to remember is that they made an offer to the sellers and were not embarrassed that is was low. I am sure the sellers were happy just to get an offer, and while difficult to swallow, the bank is probably happier that it won’t have to deal with the home as a foreclosure.
If you are in the market to buy, don’t be afraid to look at the short sales…you can get a great deal right now all over the Twin Cities for homes that are in excellent condition.