In general, New York has one of the most expensive real estate markets on the East Coast, as well as one of the most competitive in the country. Potential buyers and homeowners often struggle to find a property that fits their needs that they can successfully make an offer on. However, some properties just won’t sell.
The issue with the property not selling usually stems from a discrepancy between the price the seller wants to charge and the perceived value of the property. Some sellers simply have unrealistic expectations for financial gains on a real estate transaction, while others may only want desperately to get out from under the burden of an upside-down mortgage.
Some homes have a price tag that exceeds their value.
When people purchase homes during a seller’s market, they typically have to pay more for a property than they would during slower sales periods. In some cases, those prices may have been artificially inflated by a bubble. Other times, the price initially seems reasonable, only to have the neighborhood slump in value due to increasing crime rates or some kind of environmental contamination.
When a property has a mortgage that exceeds its fair market value, the only option for sellers who have to move may be to take a loss. If they can’t absorb the loss through their equity, the lender may have to approve a short sale.
Negotiating a short sale requires experience.
When a bank pays out hundreds of thousands or millions of dollars to help someone purchase a property, they aren’t usually keen on letting those people walk away from the property without repaying the full amount of the loan.
However, sometimes circumstances make it quite obvious that recovery of the total investment amount simply won’t occur. Whether due to damage to the property or a drastic reduction and local property values, a reduced market price on a property with very little established equity can force a lender to consider a short sale.
To complete one of these complex real estate transactions, you very likely need the help of an attorney with experience in real estate and either ironclad financing or liquid cash with which to make an offer. Getting the right help early on can improve your chances of successfully completing a short sale transaction on a house in New York.