Not really a short sale

XXX Cheswick Ct $187 /sqft. Asking $239,900.

Today's property has a pink kitchen. Maybe that's why they feel it is worth so much.

It's also a "short sale," according to the listing.

It's asking $239,000 after having been purchased in 2007 for $250K.

Today's seller does not understand the term "short sale." A short sale is when the BANK looses money. If the seller looses some or all of their down payment, that is not a short sale. It's a bummer.

When the seller is trying to sell their house for less than what they owe on it, that is a short sale. In that case, the bank has to approve the sale and usually drags their feet for a long time. Short sales take twice as long to close as do conventional sales.

Fortunately for the knife-catcher who ends up buying this place, the bank is not losing money and will not drag their feet on closing this sale. The bank doesn't care at all if the seller looses their down payment.

Todays owner put 10% down on a $250K purchase price. The took out $200K from "Florida Corporation" and another $25K HELOC from National City Bank. The owner stands to loose $10K of their $25K down payment. This house is only selling at a 4% discount from its 2007 price. The $10K loss, however, is assuming they get their asking price. That's also ignoring the 6% cut that the realtors will take -- 6% of 240K is 14.4K. Holy cow. 4% depreciation + 6% realtors fee. That's 10% of the price of the house. If the sellers get their asking price, they will lose 100% of their down payment.

100% loss. That's a staggering figure.

Fortunately for the bank, they at least had 10% down. 20% down is the norm, but 2007 was a different era.

6% goes to Realtors. Gee. That's 60% of the down payment for these sellers. 60% seems awfully high. Are Realtors really worth that much money?