Shakopee Short Sale Market Update

I just baffled myself this afternoon when putting together my market update of the Shakopee short sale homes currently on the market. Seriously I was shocked when I learned of the 305 homes currently shown as active on the market 85 of those homes are listed as a Shakopee short sale. Short sales in Shakopee are becoming more prevalent from hardships such as job loss, divorce and too much debt. We are definately seeing more and more owners qualifying for a short sale.  Outside of those home listed in Shakopee as a short sale 5 other homes did not disclosure their status and 50 more homes were listed as Shakopee Foreclosures. With that said, Shakopee short sales and foreclosure homes as of 2/24/11 dictate a whopping 44% of all homes on the market!

Now 44% of all homes on the market being Shakopee foreclosure and short sale listings may seem high, but that number realistically is probably even a low percentage estimate. I have seen many cases where Shakopee real estate agents do not even disclose if the home is a short sale or foreclosure. When a home in Shakopee is listed an agent has three choices when filling out the Minnesota MLS input sheet. They can answer YES, NO or NOT DISCLOSED to two questions 1) Is this home a potential short sale? and 2) Is this home lender owned?

I can see Realtors reasons for not disclosing the short sale status of a home, but Shakopee foreclosures are pretty obvious, is your seller a bank? If yes, well then it’s lender owned, answer the question correctly please Shakopee Realtors! Now many Shakopee short sales listed might not be listed as a short sale because they are not short sales, yet. Sure you may have a home priced at $224,900 that is not a short sale, but at $220,000 will it be one? How about $210,000? I commonly see many overpriced homes in Shakopee that have NO CHANCE of selling. The Shakopee townhome market is notorious with many homes cancelling in frustration or expiring their listing contracts. I just saw a Shakopee townhome listed for close to $150,00 when the previous week I showed two homes in the SAME DEVELOPMENT for $98,000 and $109,900 respectively. Now sure the home may not be a labeled as a short sale in Shakopee, but will it sell? Doubtful. Another reason I hear Shakopee Realtors not wanting to label  homes as a short sale is because they feel no one with show the listing because buyers don’t want to wait to hear back from the bank. I find that discouraging as an agent and very frustrating for a buyer because we take the time out of our day to show the home it is a complete waste of time. Some buyers may have ample time to look for a short sale home, but others have a strick timeline and need to purchase with 45 days or less. That does not leave a lot of time to search for a Shakopee Home.

PENDING HOMES IN SHAKOPEE

Homes in Shakopee that are currently sold and waiting to close escrow represent an even higher percentage of short sale and foreclosure homes. Of the 63 homes pending in Shakopee, 27 homes are forclosures and 7 are short sale listings representing close to 54% of the total homes pending. Again this does not include the nondisclosure I previously spoke about. Being a curious Realtor, I decided to look at the homes pending being there are not nearly the numbers to go through like active homes on the market in Shakopee. Of the 29 homes not tagged by Realtors as a Shakopee short sale or foreclosure, 5 showed in either the exclusive agent remarks or tax records as being bank owned. Another interesting fact that jumped out at me was 7 of the 29 homes in Shakopee pending were new construction. Again out of curiosity I went back and reviewed active homes listing in Shakopee to find of the 170 homes not tagged as shorts sale or foreclosures 31 of those were new construction homes in Shakopee.