Why Short sales are attracting multiple offers in Reno & Sparks

"Reno real estate agent whistle blower! Admits to choosing bank owned homes over short sales!"

This could have been a catchier headline.

And yes I used to tell my clients to choose bank owned homes if they want to make sure that their homes close before the tax credit deadline (to be in contract before April 31, 2010 and to close by June 10, 2010.)

In many ways bank owned  listings are more dependable than short sales-- SS sometimes taking as long as one year to close (I've had three that lasted more than a year; I was selling).  The banks were still tweaking their systems to process the avalanche of short sales--owners defaulting on their mortgage who are trying to avoid foreclosure under their names.  Chaos.  I've had at least five deals where we were working on it for three months only to be told "Sorry Joe, we can't find your file. Please submit your package again."  Back then people avoided short sales.

But I don't care anymore what my buyers decide on buying--I have no choice! The demand for real estate in Reno has risen to the point where short sales are receiving multiple offers. Bank owned homes in Reno-Sparks are still bought at a feverish pace but there aren't enough to feed the hungry beast (hence, people flock to short sales):

The hungry beast--Demand in Reno homes the last five years:

Demand in Sparks the last five years:

I've gotten to know this creature (demand) pretty good by listing more than thirty homes and selling (buying side) about twenty. I'm part of the demand and the supply ( and the lack of). Many of my short sale listings are in contract, even receiving multiple offers. And when I take my buyers out to look for homes I am often battling it out with other agents for the same pool of homes--$180,000 and below. Multiple offers left and right.

Here's the evidence, (the dwindling supply in Reno the last five years):

And it's only getting to get worst come summer...(which might lead to our market finally reaching a bottom, yes!)