Tualatin Short Sale Case Study #3
Location: Owner Occupied Property in Tualatin Oregon
Total owed on 1st Mortgage: $581,000
- Total Bank Loss: ($85,555)
This deal came to us by referral. One of our Rock Star Agents Jeff Knipe of Knipe Realty referred another Heavy hitter in conversation. He was telling her she had better start to learn short sales or her production would suffer. She took his advise and contacted us. She was struggling with a listing she had since August of 2008. The owner had pulled cash out of the property consistently every two years since 2003. A clear case of home as ATM when credit and lending terms were easy. The refinance Appraisal was probably using top end comps to pull maximum cash out.
Tualatin is a highly sought out suburb of Portland Oregon. This is a clear case where higher end properties sit above the equity lines and all of a sudden a job loss hits or divorce. Seller suffered a slow down in his construction business and relocated to Arizona to move in with family. In order to sell quickly dramatic price reductions are necessary.
She started her listing at $729,000 back in August of 2008. She had dropped gradually to $595,000 in November 2008 with little to no activity. My #1 negotiator Victoria noticed that the property taxes were extremely high and that was probably a reason why any new buyer would hesitate in making an offer. Their payments would be too high.
This hurdle was over come with aggressive price drop to $499,000. We call this a “Bottoms Up” approach to find
what price point buyers would flood in and make multiple offers. The seller was 4 months behind so there was no time to waste. That is exactly what happened. 2 highly qualified buyers came in and bid the property back up to $520,000.
So here are the final numbers:
Client owed $581,000 on the 1st mortgage they accepted $495,445 ( $85,555 LOSS)
Final Sales Price $520,000 Close Time 3 months.
If you can’t get offers on your short sales take a “Bottoms Up” Approach to spur buying activity. Step 2
Review the property taxes, if over valued then price aggressively.
Step 3 help the new buyer submit a request to county property tax assessor to have them provide their new appraisal like we did so they can lower them at tax time.
We would love to make your story the subject of our next case study!
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