I’ll start with the real evaluation of the short sale market for sale in Salt Lake City.  Wikipedia definition of a Real Estate Short Sale
The numbers on the WFRMLS as of 7-28-2009 is:

• Active Short sale listing in salt Lake county 1400.
• Active listing not short sale 6333 in Salt Lake City.
• Under contracts non-short sales 1500
• Under contract Short sales 233
• Short sale Sold 60 days 204 or 102 a month
• Non–short sale Sold NON-Short sales  1,859 or 929 a month

In  evaluating the numbers I want to say that the # of short sale listing to close is very good 14.7% of short sale sell a month.  Only 6.8% of non-short sale sell every month.  That would be related to price see My pricing article to understand price.  1031 Home For Sale in Salt Lake sell a month and short sale are about 10.10% of the homes that sell.  Now if that is correct why is everyone talking about them as if they are the only homes that sell?

My man on the streets view, of how short sale relate to purchasers in Salt Lake, is they are prices way below the average price per square foot (PSQFT) the PSQFT for short sale range $55 to $75.  Where the median listed PSQFT in Salt Lake County in June was $97.  See why the buyer only sees those homes as the homes for sale.  They are the desirable good buy bang for the buck homes.  So buyers rule mentally out the $100 + PSQFT and look at the lower priced higher bang for the buck, short sales and they become the Real homes for sale in their mind.  Since buyers will only look at 20 or less homes before they make there mind up and make offers, the best homes become the homes for sale.   Since these are the short sale and bank owned that become the market.   Buyers see the really well priced short sale and they want to buy it because they wnt 20%  equity in this market.  What happens when they want to buy a short sale?  We’ll the reality of a short sale listing become very frustrating to the buyer because of the 1400 short sale on the active market over 70% are not really active!  What?The Majority are not really active because they have an offer the listing agent is exclusively working with the bank.  What shenanigans are going on? We’ll the WFRMLS has allow the listing agent to keep a listed  short sale home that is under contract as active on the MLS.  Even if they use the new Binding Contract Short Sale Addendum our Utah Association of Realtors have created.  It clearly states the offer will be binding pending bank approval and the seller can only market the home for back up offers.   I don’t know why they allow this.  I have had hour long conversation with the MLS Director and they say it’s the board of directors that allow it.  There is some progress in the last week,  an active offer pending bank approval status has been added, that the agents can see but not the public.  So on the public side of the MLS still sees these under contract property as active.  Misleading! Unethical! you say, I say You're 100% right.  I’m working on that and will have a conversation with the director of the MLS tomorrow after meeting her in person yesterday and having a conversation with the UAR legal counsel on the interpretation of the form.  Actually The director is really a great person and wants the MLS to be legitimate and a the finest tool to find home in UTAH.  So why the mess?  We'll there are some  that want it to be there marketing.  They price short sale low put them under contract for 50 to 60% of what they should be with an investor friend and keep them active.  Why because they will get sign and Internet calls form buyers wanting to buy that low priced home.     I learned that in a continuing education 5 hour Core Law course, approved by the Utah Division of Real Estate of  Real Estate.  After having a conversation with the director of education for the Utah Division of Real Estate, I was one of the agents that

complained and the course was removed shortly after that.   My hope is in a couple of weeks it will not show this status of short sale pending approval to the public.  If we take away the incentive then we may see this stop.  We may see this stop but I wouldn't count on it.  Until the MLS takes on having integrity with the short sales we will have the same frustration and unethical agent abusing the system to profit.    Oh yea I said it!

Well that is the sad frustrating state of buying short sales homes for sale in Salt Lake .  Your best bet as a buyer and agent is to do leg works.   Mail to the homes that meet you criteria and are not listed on the Notice of Default list saying your a buyer .  Many of these homes are working on modification that wont work and denied after month of waiting and will need to sell to avoid foreclosure.  Call the agent on all short sale ask if they are under contract with the only approved short sale addendum the UAR form. report ones that aren’t using the contract pending when they have an offer in to the bank.  If you look at short sale the first week of a listing and make a reasonable offer.  You should be able to get one under contract.  I will set up a list of 2 week old short sale listing on my home search page.  I currently have short sale homes for sale in Salt Lake as East and West because there are too many for one search.  I will put a new short sale less then 2 week old.  Remember bank have a rule of 82%  so with a 6% commission you will need to offer 88% of the current market value of a short sale.  So don’t get frustrated just get good agents that will call the short sale listing before you go out and ask if they are under contract using the new UAR short sale addendum.