That’s a common question I get from a Metro Detroit first time home buyer. There is no rock solid answer. It just depends on the individual seller. But I will give you some general guidelines. I will break this up intoMetro Detroit foreclosures, short sales, Metro Detroit HUD homes, and private owned houses. When I say private owned houses I mean homes that are being sold by ordinary people and not bank owned or government owned.
Here is what happens is that we send the purchase offer to the listing agent. Then
- PRIVATE OWNED HOUSES - the listing agent tries to contact the homeowner. The homeowner may be out of town on business, may have a family emergency so it may take time to get an answer. Remember this offer isn’t more important than the sellers job, or the sellers kids, or the sellers family function. So the offer may sit on a desk for a day. But the average response time for a private owned home is usually anywhere from 2 hours to 2 days.
- METRO DETROIT FORECLOSURES - The listing agent usually works from 10 to 5 each day. So if it is after hours it won’t usually get looked at until 10 o’clock the next morning. Then it is shipped over to the bank. Sometimes it takes a whole day to get over to the bank from the listing agent. Then the bank personnel may take another day to look at it. So it usually takes at least 2 days up to two weeks to get an answer on a purchase offer for a Metro Detroit foreclosure.
- METRO DETROIT HUD FORECLOSURES - We submit the bid on line. Then it depends whether it is in the initial 10 day owner occupied purchase period or it is daily bidding. If it is in the intial ten period we will get an answer the day following the end of the period. Or we will get an answer by 4 pm the following day if it is daily bidding.
- METRO DETROIT SHORT SALES - We send the offer to the listing agent. The seller usually automatically accepts it. Then the listing agent and seller have to send all the info to the seller’s bank to get approval. The seller’s bank then hires somebody to give them an estimate of market value. Then the paper works sits on somebodies desk. Eventually the bank assigns the short sale case to an employee. Eventually the case works it through the system. A Metro Detroit short sale can take anywhere from one month to six months. The average time is 3 to 4 months. At that time the bank can reject doing the short sale for the seller. (for whatever reason they want). I have heard the average completion rate for short sales is only 10%.
These are just estimates of how long it may take to get an answer when you put in your purchase offer. It may be quicker or may be longer. We never know. So don’t depend on them.
Russ Ravary your Metro Detroit real estate specialist
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