First-time Buyers are Shying Away from Short Sales

A recent survey from Campbell/Inside Mortgage Finance shows that first-time buyers are less likely to pursue a short sale property than they were just 2 years ago.  According to the survey, which was reported by HousingWire.com, first-time buyers accounted for nearly 55% of short sales sold in November 2009.  However, by August 2011, that figure was down to 39.7%, and was the lowest figure ever reported by the survey.

As a broker myself, I have first-hand experience with first-time buyers.  For a first-time buyer, there is a level of excitement and emotion that is not as prominent in other buyers.  Short sales can be frustrating and time-consuming, and many first-time buyers would rather not go through the process when they can buy another home more quickly and easily.  Even despite the national average discount of 27% for a short sale (according to the survey), first-time buyers are moving more towards a sure closing than a huge discount.

 

 

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