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How are downtown St Petersburg condos affected by distress sales?

Downtown St Petersburg view out to the Pier

Townview and the Pier

Downtown St Petersburg condos are increasingly less affected by distress sales. In June 2012 none of the sales were distress sales.  Of the downtown condos currently on the market, only 2 are bank owned properties and none are short sales.

Of the 22 downtown condos that went to contract during June, 4 are short sales and 2 are bank owned properties, for a total of 27%.  If we look at condos currently under contract, 17 out of 40 are distress sales (42.5%). Keep in mind that these short sales may stay “under contract” for months due to the slow processing of short sales by the lenders – so, some of these properties went to contract months ago. Therefore those percentages are “old news” rather than the current trend. As these get approved, they will show up in the sales figures.

Bank owned properties generally are able to close much faster than short sales. Some lenders have made significant improvements in the time for their short sale approval process, others are slower than ever. With a bank owned property you’ll usually know in 1-2 weeks or less whether you have an approved contract; with a short sale it may be months before you know if your offer is acceptable, and then you have to see if the owner will accept the terms offered by the lender. So, prepare for lots of uncertainties with a short sale.

Should you target a short sale property in downtown St Pete? Not necessarily. Sometimes you can get a better price from a motivated seller, with less hassle. Work with your Realtor® to evaluate the property and the market.
If you aren’t currently represented, contact The Simms Team at ALVA International, Inc real estate for help in buying or selling a downtown St Petersburg condo.

The above figures are taken from My Florida Regional MLS.

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