Archive for the 'Tips for Sellers' Category
Do You Want “a Deal” in Weston? Please Get in Line!
April 16th, 2009 categories: Great Deals, Savanna, Tips For Buyers, Tips for Sellers
List Price: $ 269,900.00
4 Bedrooms
2 Full Baths
1 Half Bath
SF Living Area: 2,116 ( $ 127,55 Per SF)
Development: Savanna, Weston FL
Last Saturday I showed this property. The property looked well maintained and had all the appliances. The backyard was very small and the 4th Bedroom is actually a Den. When the Builder ARVIDA sold in pre-construction this model had the option of having that space built out as a Bedroom or a Den.
There a just a few of Foreclosed Single Family Homes in Weston and this one was priced very aggressively. I expected there would be competing offers.As much as I know that Weston’s Real Estate Market has changed a lot in the last few weeks, when I received this message from the listing agent on Tuesday I was shocked!
LISTING ANNOUNCEMENT : 928 SUNFLOWER CIR WESTON
Thank all for showing this property. This email is to confirm that an offer has been accepted on this property. If you did not receive a call than your offer was not accepted. Again thank you to the 101 agents who showed the property and the 20 or so who put in offers. Thanks again and have a great day.
About this Listing Announcement
You have received this listing announcement because you have shown this property previously.
More details on 928 Sunflower Cr (Multiple Listing Service-MLS Detailed View)
Foreclosure Information:
As per Broward County Records:
Mortgage Balance: $ 540,921.00
Judgement Amount: $ 570,681.00
Posted Date: 6/15/08
Previous sale date: 10/09/00 for $ 220,200.00 – Most probably the owners refinanced at the peak of the market.
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Weston Real Estate Single Family Homes Sales 1st Quarter 2009
April 10th, 2009 categories: Great Deals, Market Update, Tips For Buyers, Tips for Sellers
In Broward the Future Looks Bright!
Compared to the same period 12 months ago the number of sales have increased almost 50% and inventories have been decreasing steadily.
In Weston the Market is Changing Very Fast!
The Inventories have decreased and pending sales are increasing at a rapid pace.
As the Real Estate Market changes it’s very interesting to look at the comparison between the price properties were listed at and the actual price they sold.
When looking in detail at the List-to-Sale ratio I found an interesting difference between the ratio for regular sales, short sales and foreclosures. Motivation seems to be the key to pricing!
“92.53% Average List-to-Sale Ratio for Regular Sales
“95.19% Average List-to-Sale Ratio for Short Sales
“94.91% Average List-to-Sale Ratio for Foreclosure Sales
I can conclude that as we have been experiencing in the last months…Buyers are looking for bargains and apparently they feel prices are as low as they are going to get and the properties priced appropriately are getting those buyers.
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Ready to Sell? Price Wisely!
April 6th, 2009 categories: Tips For Buyers, Tips for Sellers
One of the main challenges for Real Estate agents is how to price properties.
We have to make sure:
*Our sellers get as much for their property as possible
*Potential buyers/cooperating brokers find it attractive enough to get traffic and realistic offers to present to our sellers.
*Once we are in Contract the property appraises
*If it is a Short Sale, the Buyer’s lender must find the purchase price reasonable to accept the reduced payment.
In simple words: Price Wisely!
We, as Real Estate Agents, normally have two choices when dealing with what a seller expect to get for their home.
-Share what we know. It’s our job to gather information to help price the property right. An over priced property is a frustrating experience and a waste of time for all parties involved. I understand how hard it is to accept that our property is worth less that what we paid for or was valued a couple of years ago, but that is a reality that might not change very soon. It is better to address the options a seller might have and take action according to his/her best interests. If the property MUST be sold, it has to be priced to sell.
-Tell what the Seller wants to hear, a NO NO for me. Telling a seller that their property is worth more than what it really is, I find it’s insane. I know they might want to hear that…. but will that help them at all? Over price a property can create expectations that later will be a source of disappointment
What we look for when setting a Price?
-Sold Properties: I look at comparable sales to get an idea of how much the property will appraise for. Yes! I said to get an idea because every appraiser makes apply their own criteria when pricing. The comps they use, the values they give to views, pools, etc… Many times when more than one appraisal is made on a property they differ. I do a lot of research and look for closed sales, pending sales, potential upcoming foreclosures and general market trends. I also keep a close eye on the market to be aware of any new comparable sale that might affect our property.
-Active Listings: I try to forecast what other properties our potential buyer could be looking at and I put myself in that buyer’s shoes. I look at out competition in the price range and suggest the seller to price in a way that we get picked in the first list of properties a real estate agent will send his/her client(s), normally the best 10 to 15 values and in the list of properties that client will choose to see in the first “round”. Someone buying in Weston will look for properties in different communities in Weston and often they will also consider other areas like Pembroke Pines, Miramar, SW Ranches or Davie.
How NOT to price?
Sellers often think they can price backwards, based on how much money they need to get. I am sorry to say that it doesn’t work that way. Wait for that crazy buyer willing to pay $ 50,000 more that market value is a dream, I will not say miracles do not occur but I haven’t seen one of those yet.
Pricing is an art but not a DALI masterpiece.
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The Condo Paradox, Destruction Of A Market Place
March 16th, 2009 categories: Tips For Buyers, Tips for Sellers
Would you be outraged if you found out that the Federal Government was taking actions that are slowing the pace of the recovery in the housing market? Well it appears that is exactly what is going on.
While the Federal Government is pouring billions of tax payer dollars into the economy in an all effort to stabilize the housing and financial markets the recently nationalized Fannie Mae is tightening condominium lending standards. These new standards make it more difficult to obtain financing for those who want to buy a new condo.
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Who is the Seller? And Why it is so Important to know!
March 9th, 2009 categories: Tips For Buyers, Tips for Sellers
The answers might sound obvious but that little??? detail is one of the main elements of a contract. You have no idea how many times owners get stubborn with this concept. Incredible???
In a Regular Sale:
The owner(s) of Record! It is critical to have all parties sign the Listing Agreement and the Sales Contract to make sure we will not have surprises at the last minute. If the property is under a Corporation or a Trust it is important to ask for the paperwork showing who has the authority to sign on behalf of the owner. If it is signed by someone with a Power of Attorney it’s safe to ask for a copy of it. Sometimes we have a hard time obtaining the information from owners or listings agents…it’s incredible that some people do not understand how important this is!!!
In a Short Sale:
The owner(s) of Record! BUT, Technically since Short Sale Contracts include a contingency on the Lender(s) approving it, until the Bank(s) signs, there is “nothing”. Any other Lien Holders, second mortgages, construction liens, homeowners or condo associations…become “ghosts” that can ruin a transaction if they are not addressed from the beginning.
In a REO:
The owner(s) of Record! REO goes for Real Estate Owned/Bank Owned Real Estate Property. Once a property is foreclosed the Bank takes possession, even thou it is not reflected immediately in the Tax Records and in that case the seller will show as Owner of Record and a bank’s officer will sign the contract.
Each one of this transactions has a different way to handle it, a time frame for responses/closing and challenges the buyer and seller might be facing.
After everything is said and done, if anyone with an interest on the property doesn’t agree with the sale, there will be no resource for the Buyer if there is not a fully executed contract.
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Do You Want to Buy a Short Sale Property?
February 4th, 2009 categories: Market Update, Tips For Buyers, Tips for Sellers
5 Things you should know to avoid loosing your mind in the intent:
Everyone is talking about short sales* and there is a reason for it. More than 30% of the properties listed for sale in almost every neighborhood are short sale listings. Listed prices are normally a bargain and way below regular sales and even below foreclosed properties*. The problem is that some prices are unrealistic and just a gimmick to attract buyers that will end disappointed because the bank will never accept the offer. One of my main concerns is that some potential buyers think those are realistic prices and use them as a reference for the rest of the market. As attractive as a short sale deal can be you must beware…
1.Set up your expectations upfront! This is not your typical real estate transaction. Since there are third parties involved: the lender(s), homeowners associations and/or contractors it takes time to get it approved. The time varies in every transaction and can be take as long as 9 months or a year is the buyer has the patience for it.
2.Make a Reasonable Offer! Before a bank accepts the price you are offering they send a Broker to prepare a Broker’s Price Opinion (BPO) and that is the value used by the lender as the property’s potential sale price. Remember that every dollar the bank accepts under the original loan amount is a loss for them.
3.Don’t fall in love! Falling is love is fun but not with a house that might never be yours. A Short Sale is a “business transaction” in which you pay with patience the money you are saving. Many things can go wrong or get delayed in the process… Until the last minute the transaction may fall thru.
4.The house should be vacant prior to the closing date! If there is a tenant living in the property make sure the seller has negotiated with the him his departure from the property at least 15 days prior to closing. You should not close while the tenant is in the property unless you want to become a landlord or you are willing to evict him.
5.Be prepared to spend a few hundred dollars and loose them! Until a short sale closes you there is no certainty that it will and you might end paying for inspections, appraisal and even an extensions of the locked rate.*It’s important to distinguish between short sales (properties where the loan(s) amount(s) are higher than the market price of the property) and Bank Owned/Foreclosures/REO’s (properties owned by Lenders after the foreclosure process is finalized).
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The Real Estate Market Bottom-Are We There Yet?
January 6th, 2009 categories: Market Update, Tips For Buyers, Tips for Sellers
What's ahead?
I wish I could answer …we are just 2 hours away honey!!! But that’s not the case when I am asked about the real estate bottom.
We are all affected by the current real estate crisis…
A synergy (for the bad) of events caused it; a few measures from all parties affected have been taken and there is a lot of uncertainty in the near future. Every industry goes through good and bad times and you all know which one we are facing now. The good news is that sooner or later it has to end.
After the dot.com crisis investors were looking for alternatives…
And it funneled a lot of cash into Real Estate. It seemed to be a “secured asset”. Land, bricks and mortar were much more tangible than stocks and sexier than bonds. Money was available, return on investment was very attractive and it started a party of speculation where many people had too much alcohol and got short sighted. Most Banks and investors lend money to anyone willing to get a mortgage. Some Appraisers played with prices. Many buyers, real estate agents and mortgage brokers got dizzy and gambled on real estate as the forever winning slot machine.
We all suspected what was going on…
How many forged loan applications were dancing as the band played. How many people cheated on basic personal finance principles? How many promises of eternal love and richness were told and believed? Everyone was doing it so it must have been right…..But as every party, even the best, ends one day…. and we are supposed to leave with good or bad memories depending on how we decided to enjoy it. That was not the case in this one. When the party was over a caravan of cars left the place with drunk drivers in front of the wheel. The sad part is that even if we just drank water …. all got involved in the accident caused by drivers under influence. The crash left behind blood and tears.
The good news is that the market in South Florida is showing some interesting signs
Inventories have decreased: Miami-Dade County in 6.1% and Broward County in 13.8%
Closed Sales have increased: Miami-Dade County in 40.6% and Broward County in 48.3%
Pending Sales have increased: Miami-Dade County in 75.5% and Broward County in 51.6%
What is really going on?
We all wonder….Should I sell now? Should I buy now?
Even though I don’t like attorney’s answers and I prefer the ones in black and white I would respond…..It depends!
If you plan to stay in your home for a few years and you can find a fair deal…it’s your time to buy. Most of us stay in our houses even knowing prices might still go down because our roof is our home and not a short term money machine.
If you need to sell in the near future ….you better sell now; at the best price you can realistically get (not what you want or need). If you are upside down I would advice you to talk to an attorney, an accountant and an honest Real Estate Agent to help you fully understand the potential consequences of a short sale.
Getting to our destination will take a trip on an uncertain and bumpy path with many unforeseen events. Even thou it may not be that easy since there is too much debris on the road; when we get there we will look back and be happy for all we learned from it.
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