The Real Deal Miami

Short sales and REOs more common but still poorly handled, survey says

September 11, 2009 03:27PM

Short sales and sales of bank-owned properties are becoming increasingly common as the recession continues, according to 541 brokers and sales agents who participated in an online Inman survey in May focused on real estate professionals’ adaptations to the downturn. Respondents, who came from across the country, with more than a quarter in Florida or California, said REOs and short sales made up, on average, about 20 percent of their listings this year. Fourteen percent of the survey respondents said that more than 40 percent of the listings in their markets were short sales. Most of those who participated in the survey said banks need to improve the way they handle short and REO sales because the processes take too long and often alienate both brokers and buyers. Despite the increase in short sale and REO listings, brokers and agents said that even in areas where 61 to 80 percent of active listings were short sales or REOs, those properties accounted for less than 60 percent of sales. TRD