I’ve noticed several resales listed at Park Monroe, 65 E Monroe St, over the course of the year, but today is the first time I can recall seeing a short sale listing in the building. At least that’s how Redfin characterizes it; the condo’s agent, Nicholas Colagiovanni of Baird & Warner, calls the two-bedroom a “pre-short sale” in his listing text, so maybe a buyer who’s quick on the trigger won’t have to deal with the whole rigmarole of a full short sale process.
Either way, unit 4415 sold in March 10, 2009, for $482,959, and went back on the market 11 days later. It’s been delisted and relisted five times since, the most recent instance coming last week, when it went off the market briefly and returned on Friday for $399,000, more than 17 percent below the original sale price.
The 1,236 square-foot home has 10-foot ceiling heights, a recessed terrace, hardwood floors, an island kitchen with the usual trimmings (42-inch cabinets, granite countertops, stainless steel appliances, etc.), two baths with marble finishes and raised vanities, and in-unit laundry. Heated garage parking is available for an additional $50,000.
The (pre-)short sale arrives at a time when Equity Brokerage Services is still trying to move developer units at Park Monroe. The brokerage has 22 condos on the market, ranging from a 1,002 square-foot one-bedroom priced in the $300s to a couple of 2,473 square-foot two-bedrooms priced at $1.6 million, with most being priced above the $460s. By comparison, the majority of the 21 homes Equity has sold in the building this year have closed in the $440s or lower.
There is no pre-short sale or pre-forclosure. These terms are confusing. Either the bank and investors involved on the loan will allow a short sale or they won’t. .
Maybe the agent means they are just now contacting the bank to get the short sale approved for the seller. This may not bode well for a buyer who wants a deal done because it’s way early in the process and the lender on the property for sale may not even allow them to sell short.
Secondly, many lenders want a place listed for at least 3 months before they will start the short sale approval process with the seller. Remember, the bank has to approve the seller to short sale rather than go to foreclosure. Then, the bank has to approve the buyers offer.
Anywho, my point is these added terms are confusing. This is either approved to be “allowed” to sell short, or its not (yet). What is true however, is when we see “may be a short sale”, this signals seller may not have the money to bring to closing if market price offer is lower than they can afford to sell the unit (but, they will go ahead and try to short the unit in that case).
Good post Eric. This might also be the new language for “Motivated Seller”.
If the buyer paid 20% down, then it’s possible at $399 this wouldn’t be a short sale, but if they had to reduce from there, then it could turn into one, hence the “pre-short sale”.