Posted by Jace Stolfo on Tuesday, September 1st, 2009 at 9:17am.
As some evidence for this, I pulled 11 Boise bank-owned homes that have sold since 8/11/09 and researched their marketing history. All 11 of these Boise REO's attempted to complete a short sale prior to becoming bank-owned. As you'll see below, every home sold for less than what they had been marketed for as a short sale.
|Boise Idaho Bank-Owned||Sold Reo Price||Short Sale Price||% Difference|
|10747 W. Parker Ave.||$93,000||$105,000||-11%|
|3975 S. Rushmore Way||$129,900||$149,000||-13%|
|7487 W. Snohomish||$145,000||$174,000||-17%|
|11450 W. Amity||$149,900||$239,900||-38%|
|3903 Rose Hill||$160,000||$170,000||-6%|
|12531 Orion Greens||$183,500||$209,000||-12%|
|2710 S. Roosevelt||$194,500||$270,000||-28%|
|9503 W. Montebello||$194,900||$220,000||-11%|
|4259 N. Chatterton||$202,900||$279,900||-28%|
|1159 Opus ST.||$272,000||$529,000||-49%|
|11960 N. Humphrey's Place||$290,000||$299,000||-3%|
It's important to note that none of these short sales had been approved. Most often, bank approved short sales will sell before the foreclosure auction because buyers don't have to wait. However, even the approved short sales I've seen that don't get sold before the auction still come on the market cheaper as bank-owned.
Data Source: Boise MLS (IMLS). Information not guaranteed. No representation or warranty of any kind is made.