Selling Sandy Beaches

Looks like I have some catching up to do!

2011-04-01T23:17:00.000-04:00

Last Friday evening I attended an exclusive Sunset reception at one of the best places for catching a fantastic Florida sunset- the luxurious Water’s Edge Condominiums, overlooking Clearwater Harbor in downtown Clearwater.

(The large building on the right. Taken from Memorial Causeway)

Since July 2010, over half of the 153 condos have been sold. There are multiple floor plans and three styles at Water’s Edge- City Homes, Townhomes and condos, not to mention 12 Penthouse residences- the height of luxury at 2400-3900 square feet each.

On this spring evening, under perfect skies and with a slight seabreeze, views could be enjoyed of Caladesi and Honeymoon Island to the North, Belleair Causeway to the South and of course, vibrant Clearwater Beach and the shimmering blue Gulf of Mexico to the west. All this from only the 12th floor! Below, Coachman Park, pedestrian access to Memorial Causeway, and the shops and restaurants of the new-and-improved Downtown Clearwater are only steps away.

Water’s Edge is the best value in the area for new construction, homes range from $235,000 to the high $600,000’s. Of the three models that were open to guests on Friday night, it was hard to identify anything as a negative. Built in 2008, the latest in upgrades were used, including concrete unit partition walls and high-impact rated windows. The interiors were pristine - high ceilings, user-friendly, spacious designs, and of course- stunning views.
Luxury amenities are everywhere, and range from poolside cabanas, multiple social rooms, a state-of-the-art fitness facility, and a business center, to name only a few.

The sunset that evening was at 7:45 pm. I made sure I was in the right place for a photo op. With a slight breeze off the Gulf, the sunset was a beautiful sight from Water’s Edge.

Contact me if you are interested in scheduling a tour or want to find out more.

Current sales stats – AUGUST 2010

2010-09-19T14:43:00.001-04:00

Residential real estate sales for the month of AUGUST in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 33 sales, consisting of:

Condominiums- 21 sales

Single Family Homes - 10 sales

Townhomes- 2 sales

Average square footage = 1696

Average Beds/Baths = 2/2

Average list price = $442,000

Average sales price = $404,000

Sales price to List price ratio = 92%

Average Days on Market = 84

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 16

High sale: $850,000 – Utopia Condo - 2300+sq ft – direct Gulf front-pool- 28 lavish residences in this building.

Low sale: $122,000 – Condo, Indian Shores @ Barefoot Beach - 700+ sq ft!

DISTRESSED SALES DATA:

There were 8 distressed sales, consisting of all short sales and 0 foreclosures (REO, Bank-owned)

NOW- get over to my website and check out my featured listings and you can see the latest foreclosure lists for FREE!

Florida winning very slow race to economic recovery

2010-08-02T18:51:00.000-04:00

From the Florida Association of Realtors- July 30, 2010
http://www.floridarealtors.org/

ORLANDO, Fla. – July 30, 2010 – The Gulf oil spill hasn’t ruined Florida’s economic recovery and the modest growth will continue this year, according to a new report.

While the oil crisis dealt a blow to the Panhandle tourism industry, it won’t be enough to stop the Sunshine State’s economy from growing 2.9 percent this year, a University of Central Florida forecast said. Even so, the report predicts recovery at snail’s pace both statewide and in South Florida as employers resist hiring and real estate values remain depressed.

“I’m still calling it a gravy-boat recovery – a gradual, tapered recovery and not a V-shape,” said the study’s author, UCF economist Sean Snaith. “Nothing’s really going to start percolating until 2011, and maybe the first quarter of 2012.”

Snaith’s call for a modest yet uninterrupted recovery mostly meshed with a new report out from the Federal Reserve that showed economic growth continued across the country. Yet there were troubling signs in the Fed’s latest Beige Book report, with evidence of spending slowdowns particularly evident in the South.

“It does reiterate that the economy is not bouncing back as much as we would hope,” Ryan Detrick, senior technical strategist chairman of Schaeffer’s Investment Research, said of the Beige Book.

Of the 12 economic districts covered in the Beige Book, only two reported a slowdown in economic growth: Chicago and Atlanta, which includes Florida.

Miami got one mention in this Beige Book, with the authors noting that hotels report an uptick in convention bookings and business travel. That trend has been apparent all year, and is helping drive a strong rebound in lodging revenue and occupancy rates across South Florida.

The Sunshine State received an outsized share of mentions in this Beige Book because of the Gulf oil crisis. The authors noted “significant concerns” over the spill’s impact on tourism.

There were positive signs mixed with discouraging news. Across the Atlanta region, businesses are adding hours to payroll without hiring new workers. Retailers reported a slight increase in sales, but were less optimistic than when they were during interviews for the June Beige Book.

Residential real estate sales also slowed, and people in that industry had a “pessimistic” outlook. Even so, Florida was singled out as having declining housing inventories while unsold homes increased elsewhere in the district.

The Beige Book became public just hours after Snaith released his report, and the combination captured the uncertainty facing economic forecasting this summer. While the recovery seemed to be gaining traction this spring, a series of disappointing reports have raised doubts about the momentum.

The Fed’s outlook followed Snaith’s mostly glum economic report that nonetheless predicted growth this year and for the rest of the decade.

Snaith predicts incomes across South Florida will grow this year and for the rest of the decade as the region crawls toward a slow recovery.

"It’s a fairly flat profile a while,” Snaith said.

Statewide payrolls won’t return to their pre-recession levels until 2014 and in two years housing starts will only rebound to where they were in 2001, Snaith wrote.

“Consumers in Florida have been beleaguered, much more so than their counterparts around the country, by disappearing home equity and an evaporation of stock market wealth,” Snaith said.

Still, the report reinforces the consensus of economists across the country that, by the math, the recession has passed and a fragile recovery has taken hold. For the combined economies of Palm Beach, Broward and Miami-Dade, Snaith’s forecast predicts mostly positive numbers through the decade.

Real personal incomes in South Florida should grow 2.5 percent this year after three straight years of declines, the report said. That’s despite a 1.3 percent decline in employment, with job growth expected to flatten next year and then hit a modest stride of 2.3 percent in 2012.

Snaith’s report also said the BP oil disaster will put off a full recovery in Florida’s tourism industry by at least a year. He doesn’t expect statewide employment in leisure and hospitality to grow until 2012, defying more optimistic predictions before the spill.

“This was supposed to be the time that tourism was finally going to emerge from under the cloud of that recession and begin to recover,” he wrote.

Copyright © 2010 The Miami Herald, Douglas Hanks. All rights reserved. The Associated Press contributed to this report.

Sales stats for June – current prices of beach real estate

2010-07-17T10:24:00.001-04:00

This just in:

Residential real estate sales for the month of JUNE in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 41 sales, consisting of:

Condominiums- 28 sales

Single Family Homes - 10 sales

Townhomes- 3 sales

Average square footage = 1635

Average Beds/Baths = 3/2.5

Average list price = $484,200

Average sales price = $437,900

Sales price to List price ratio = 91%

Average Days on Market = 85

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 22

High sale: $1,400,000 – Indian Rocks Beach house- 2400 sq ft – Gulf front!

Low sale: $115,000 – Condo, Indian Rocks Beach- Intercoastal view- pool- 1300+ sq ft!

DISTRESSED SALES DATA:

There were 9 distressed sales, consisting of 6 short sales and 3 foreclosures (REO, Bank-owned)

NOW- get over to my website and check out my featured listings and you can see the latest foreclosure lists for FREE!

www.MyPinellasParadise.com

Florida Governor Crist signs massive condo bill today

2010-06-24T15:39:00.000-04:00

FORT LAUDERDALE, Fla. – June 24, 2010 – Gov. Charlie Crist traveled to South Florida today to ceremonially sign this year’s massive condo bill, SB 1196. The bill, among other things, exempts some elevators from code requirements, revises voting laws for condo associations, and makes changes to loss assessment coverage.

More here:

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=242134

Sales stats for May – current prices of beach real estate

2010-06-17T12:04:00.001-04:00

This just in:

Residential real estate sales for the month of MAY in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 43 sales, consisting of:

Condominiums- 26 sales

Single Family Homes - 13 sales

Townhomes- 4 sales

Average square footage = 1585

Average Beds/Baths = 2/2.5

Average list price = $455,081

Average sales price = $400,703

Sales price to List price ratio = 90%

Average Days on Market = 135

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 24

High sale: $1,350,000 – Belleair Beach house- 4000+ sq ft

Low sale: $101,500 – Condo, Indian Shores

DISTRESSED SALES DATA:

There were 12 distressed sales, consisting of 7 short sales and 1 foreclosure (REO, Bank-owned)

NOW- get over to my website and check out my featured listings and you can see the latest foreclosure lists for FREE!

www.MyPinellasParadise.com

Scientists: Chances of oil coming to Bay area very low

2010-05-13T22:20:00.000-04:00

Scientists: Chances of oil coming to Bay area very low

Certainly a relief for us in Pinellas County and Tampa Bay. Let's hope they can stop the leak!

Sales stats for April – current prices of beach real estate

2010-05-13T21:02:00.001-04:00

This just in:

Residential real estate sales for the month of APRIL in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 38 sales, consisting of:

Condominiums- 27 sales

Single Family Homes - 5 sales

Townhomes- 6 sales

Average square footage = 1577

Average Beds/Baths = 2/2.5

Average list price = $428,234

Average sales price = $391,905

Sales price to List price ratio = 89%

Average Days on Market = 100

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 15

High sale: $1,212,500 – Indian Shores condo- San Kevi- Gulf front

Low sale: $45,000 – Condo, Indian Rocks Beach

DISTRESSED SALES DATA:

There were 12 distressed sales, consisting of 11 short sales and 1 foreclosure (REO, Bank-owned)

NOW- get over to my website and check out my featured listings and you can see the latest foreclosure lists for FREE!

www.MyPinellasParadise.com

UF: Florida real estate market has hit bottom

2010-04-29T16:17:00.000-04:00

UF: Florida real estate market has hit bottom

Read and decide- seems to be a mixed bag of opinions!

Just remember:

Don't wait to buy REAL ESTATE,
Buy REAL ESTATE and wait!

Condos-condos-condos! Introducing Reflections

2010-04-21T18:39:00.002-04:00

If you’ve spent any time at all in Indian Rocks Beach, you can’t help but notice the two adjoining towers of Reflections, located at 900 Gulf Boulevard. Being the tallest building in IRB, this is THE vantage spot for Gulf views from every one of the 84 condos.

The 11-story block buildings were constructed in 1981 and consist of 42 condos in each tower, referred to as the North or South towers. Each condo is est 1275 sq ft, 2 bedroom with 2 baths, utility area, open living/dining area with large sliders opening to a tiled balcony overlooking the Gulf of Mexico. The master bedroom also features a Gulf facing window and sliders to the balcony. There are 4 penthouse condos that are est 1900 square feet with taller windows on the Gulf and unbeatable views. Here’s the view from a 10th floor balcony of the South Tower:

There is a keyed lobby entrance to the building, a recycling area and wheelchair ramp conveniently by the front door. Entering the lobby, one can access either of the towers via 4 swift elevators, or the common areas, including lounge area, kitchen, restroom facilities, and sauna. Other amenities include a Gulfside heated swimming pool, tennis courts and of course, the beautiful beach and white sand only steps away! There is covered parking under the building for each unit, and adequate parking for guests
Monthly condo maintenance fees range $500-550; the building is pet-friendly and condos can be rented out for a minimum period of 14 days. There is no onsite rental manager.

Average rental potential is minimum $875 weekly during December to April, and minimum $800 weekly during the summer season. Again, minimum rental period is 14 days, and many guests book for a month during the winter season. Average annual rental potential is $15,000-30,000 according to local real estate rental firms, and dependent upon various factors.
The list price of condos currently for sale at Reflections ranges $369,000-$529,000 and recent sales price average is $367,000.

Sales stats for March – Current prices of beach real estate

2010-04-10T21:06:00.002-04:00

This just in:

Residential real estate sales for the month of MARCH in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 27 sales, consisting of:

Condominiums- 16 sales

Single Family Homes - 5 sales

Townhomes- 6 sales

Average square footage = 1523

Average Beds/Baths = 2/2.5

Average list price = $472,594

Average sales price = $410,472

Sales price to List price percentage = 91%

Average Days on Market = 101

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 12

High sale: $1,025,000 – Sand Key condo- The Grande- Gulf front

Low sale: $146,500 – Townhome, Indian Rocks Beach

DISTRESSED SALES DATA:

There were 3 distressed sales, consisting of 2 short sales and 1 foreclosure (REO, Bank-owned)

NOW- get over to my website and check out my featured listings and you can see the latest foreclosure lists for FREE!

www.MyPinellasParadise.com

New Series of blog topics! Condos, condos, condos!

2010-04-07T12:13:00.008-04:00

For readers, and future beach real estate owners, this week kicks off a new blog series, Condos, condos, condos!

Each blog will give information about a specific condo community among the many along Gulf Boulevard, starting in Indian Rocks Beach.

To kick off the series, I am introducing Reef Club.

If you've driven along Gulf Boulevard through Indian Rocks Beach, you've probably noticed the newly-painted salmon colored building located at 1000 Gulf Boulevard.

This 6-story block building (5 stories plus under-building parking) was constructed in 1983 and consists of 55 condominiums. Each condo is est 1300-1380 sq ft, 3 bedroom with 2 baths, washer/dryer hookup, and a Gulf-facing balcony. Each first floor condo (units 201-211) have a spiral stairway fromthe balcony for easy access to the pool and beach. There are no obstructions or other buildings between any unit at Reef Club and the Gulf!

There is a keyed lobby entrance to the building and other amenities include a heated swimming pool and spa, BBQ area, tennis courts and of course, the beautiful beach and white sand only steps away! There is parking under the building for each unit, but limited parking for guests. On holiday weekends and other busy times, the parking lot is often full.

Monthly condo maintenance fees range $410-550, as some of the end units have extra windows and other units have different sized balconies. The building is pet-friendly and condos can be rented out for a minimum period of 7 days.

Average rental potential is minimum $1500 weekly during December to April, and minimum $1000 during the summer season.

The list price of condos currently for sale at Reef Club ranges $369,000-$449,000 and recent sales price average is $340,000.

Just a few words about stats

2010-03-11T14:13:00.009-05:00

For the past six months I've been reporting sales stats on this blog for the areas of Belleair Beach/Sand Key, Indian Rocks Beach and Indian Shores. This data is pulled from our area Multiple Listing Service (MLS) and only accessible to active real estate licensees who pay membership fees for the access.

Many buyers are aware they can "search the MLS" through various websites, what they may not be aware of is that not all data is carried through and there is more than ample room for errors in the system.

One indicator that is reviewed each month is the Days on Market (DOM). This should give an idea of how long properties are actually on the market, with a shorter time frame seeming to indicate market improvement. Most people assume this figure is the number of days from the time a property is listed for sale until the day of closing, but this is incorrect.
The DOM numbers from the MLS can be very misleading.

Example: A recent closed sale was reported as a short sale and showed 117 days on the market- not bad! However, when the data was analyzed further, it was 117 days from the date of the listing until the contract was accepted. It took another 90 days for the transaction to close.
In my professional opinion, this should have been reflected as 207 days that the property was actually on the market.
Bottom line: not everything is the way it seems!

Another item of frustration is the Sales Price to List Price ratio. For the past 6 months, if one is reading the results as they are available from MLS, the average is 90%. The average person would assume that means a house originally listed for $200,000 eventually sold for $180,000.
This is another number that can be misleading, as the Sales Price to List Price ratio is based only on FINAL list price. If a property was originally listed for $325,000 but reduced eventually to $200,000 and then sold for $180,000, it is reported as a 90% Sales Price to List Price ratio, even though a true analysis would report this as a 55% ratio, indicating a possible "great deal".

However, having said that, I do not feel that list price on short sales is a reliable indicator as there does not seem to be a uniform method used to set such list prices, it seems in some cases to be at the whimsy of the listing agent. Some properties are priced very low in order to generate interest, with little to no regard for actual current market values.

In closing, I want to encourage prospective buyers studying the market to make contact with a real estate professional for a truer picture of real estate activity in a specific area.

www.MyPinellasParadise.com

Sales stats for February – Current prices of beach real estate

2010-03-11T14:01:00.001-05:00

This just in:

Residential real estate sales for the month of January in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 24 sales, consisting of:

Condominiums- 16 sales

Single Family Homes - 6 sales

Townhomes- 2 sales

Average square footage = 1414

Average Beds/Baths = 2/2.5

Average list price = $362,908

Average sales price = $322,219

Sales price to List price ratio = 92%

Average Days on Market = 120 (There was only 1 listing that was on the market over 365 days)

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 11

High sale: $640,000 – Sand key condo- Gulf front

Low sale: $84,900 – Condo, Indian Rocks Beach

NEW DATA THIS MONTH:

There were 9 distressed sales, consisting of 7 short sales and 2 foreclosures (REO, Bank-owned)

If you'd like to live here, full time or part-time, NOW is the time to buy!

www.MyPinellasParadise.com

Sales stats for January – Current prices of beach real estate

2010-02-11T15:53:00.000-05:00

This just in:

Residential real estate sales for the month of January in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 19 sales, consisting of:

Condominiums- 14 sales

Single Family Homes - 4 sales

Townhomes- 1 sale

Average square footage = 1925

Average Beds/Baths = 3/2.5

Average list price = $598,578

Average sales price = $525,579

Sales price to List price ratio = 90%

Average Days on Market = 244 (There were 4 listings that were on the market over 365 days)

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 10

High sale: $2,100,000 - Belleair Beach house (non Gulf front)

Low sale: $110,500 – Condo, Indian Rocks Beach

NEW DATA THIS MONTH:

There were 7 distressed sales, consisting of 6 short sales and 1 foreclosure (REO, Bank-owned)

If you'd like to live here, full time or part-time, NOW is the time to buy!

www.MyPinellasParadise.com

Homeownership rate declines

2010-02-03T15:49:00.001-05:00

Investors – are you listening? As homeownership rates decline, this signals an upcoming abundance of renters needing a home.

Homeownership rate declines – Commerce Dept says homeownership rates lowest in 10 years.

Another report by the Urban Land Institute suggests that, while homeownership is still much desired in the U.S., there will be a decline over the next few years.

This creates opportunity for the seasoned real estate investor! NOW is the time to pick up distressed Real Estate bargains.

For current bank-owned real estate on and near the beautiful beaches of Pinellas County, just west of Tampa, just visit my website!

Have a great week!

www.MyPinellasParadise.com

Claiming the housing tax credit for 2009?

2010-01-26T18:38:00.001-05:00

Here’s an article for taxpayers claiming the credit for 2009:

Bottom line: You may need to consult an accountant, as there are various criteria for claiming the Federal Housing Tax Credit.

Clearing up confusion regarding tax credits

Contact me with any questions!

Real Estate opportunities for Seniors- buy a vacation home!

2010-01-23T14:37:00.001-05:00

There have been numerous improvements Since the debut of the Reverse Mortgage loan program in the late 80’s.

For instance, a Reverse Mortgage can be used to PURCHASE a home. Those over age 62 looking for a new home will be pleased to learn that a Reverse Mortgage can be obtained for up to 50% of the price. The maximum loan limit is $625,000.

But WAIT- there’s MORE! A Reverse Mortgage can also be used to purchase a VACATION HOME! That’s right! The beach condo you’ve been wanting can now be YOURS if you are shy of having enough cash for the entire purchase. And there are NO repayments due until 12 months after the last owner has vacated the property!

I work with local Reverse Mortgage Specialist Jim Trickey. Being an active senior himself, Jim understands the various concerns that buyers and their families may have about these loans. He’s been helping seniors relieve financial stress for several years and has become extremely knowledgeable about the mortgage options available to baby boomers.

If you are over 62 and would like to purchase a primary home or vacation home, but need a little bit of mortgage money to make it happen, please contact me directly and I will be more than happy to refer you to Jim.

To see what local real estate is available, please visit my website:

www.MyPinellasParadise.com

Sales stats for December – Current prices of beach real estate

2010-01-16T13:34:00.001-05:00

This just in:

Residential real estate sales for the month of December in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 37 sales, consisting of:

Condominiums- 26 sales (Condotels- 1 sale)

Single Family Homes - 9 sales

Townhomes- 2 sales

Average square footage = 1710

Average Beds/Baths = 2/2.5

Average list price = $499,054

Average sales price = $439,405

Sales price to List price ratio = 90%

Average Days on Market = 203

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 17

High sale: $1,500,000 - Belleair Beach home, over 4500 sq ft on Intercoastal water.

Low sale: $141,000 – Condo, Indian Shores (Barefoot Beach Resort)

If you'd like to live here, full time or part-time, NOW is the time to buy!

www.MyPinellasParadise.com

What will $100,000 buy in the current real estate market?

2010-01-15T17:15:00.001-05:00

There are abundant news and media sources leading the novice investor, or the eager buyer, to believe that beach front condos are available for around $100,000. Today I hope to dispel that myth.

Here are 5 homes that are priced at exactly $100,000. I don’t feel that Short Sale property listings can be used for this particular blog segment, since list prices are still not regulated, and in many cases, do not reliably reflect market values.

Home #1: Clearwater condo, over 1500 sq ft, age restricted (55+), no pets, 2 bedroom/2 bath.

Home #2: Dunedin house, over 1000 sq ft, block home, 2 bedrooms, 1 bath.

Home #3: South Pasadena condo, over 1000 sq ft, no pets, age restricted (55+), 1 bedroom, 1 bath.

Home #4: Pinellas Park house, over 1500 sq ft, lakefront, 2 bedrooms, 2 baths.

Home #5: St. Petersburg house, over 1200 sq ft, 2 bedrooms, 1 bath.

Please note that NONE of these are bank-owned. It’s been my experience that these are usually listed at $99,900 rather than $100,000……another topic for another blog!

Visit my website today to see featured listings as well as review a list of current bank-owned real estate on or near the beautiful beaches of Pinellas County.

www.MyPinellasParadise.com

Sales stats for November – Current prices of beach real estate

2009-12-16T16:39:00.000-05:00

This just in:

Residential real estate sales for the month of November in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 32 sales, consisting of:

Condominiums- 21 sales

Single Family Homes - 8 sales

Townhomes- 3 sales

Average square footage = 1478

Average Beds/Baths = 2/2.5

Average list price = $356,445

Average sales price = $337,666

Sales price to List price ratio = 96%

Average Days on Market = 173

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 13

High sale: $1,025,000 - Sand Key Condo, over 2500 sq ft in Gulf front building.

Low sale: $119,900 – Condo, Indian Shores (Barefoot Beach Resort)

If you'd like to live here, full time or part-time, NOW is the time to buy!

www.MyPinellasParadise.com

Housing Tax Credit EXTENDED and EXPANDED

2009-11-24T21:59:00.004-05:00

It was iffy there for a while, but Congress did renew the Tax Credit for eligible U.S. taxpayers! It now includes a credit up to $6500 for buyers who HAVE owned a home in the past 3 years. See website for details about other qualifying criteria.

http://www.federalhousingtaxcredit.com/

There is also a provision for active military personnel that extends the deadline to purchase until 2011, giving our service members an extra year to take advantage of the credit.

Another benefit is length of occupancy, which is waived for military buyers who have to relocate within the first 3 years because of official business.

All other buyers must agree to occupy the property as a primary residence for the first 3 years, or forfeit the credit.

One concern lawmakers had (and still have!) is fraud. In the beginning, there was no IRS requirement to prove you actually bought a home, other than filling out the proper form. Also, there were numerous mortgage companies, and realtors too, who heavily promoted that you could get the credit before you buy - just by implying on the correct tax form that you intend to buy this year and amending your 2008 tax returns. Not so!

Now the IRS is requesting proof, which is easily handled by sending in a copy of your Settlement Statement (HUD-1) with the proper tax forms when filing for your refund.

The extension and expansion of the Federal Housing Tax Credit will ultimately lead to more buyers looking for homes, which is very welcome in an area that has plenty of inventory!

Start looking NOW

www.mypinellasparadise.com

Sales stats for October – Current prices of beach real estate

2009-11-20T18:22:00.001-05:00

This just in:

Actually, not JUST in. I’ve had these stats for 10 days, activity is picking up and I’ve been showing a lot of property! I don’t need to look at the calendar to know it’s November- the “season” has begun!

Residential real estate sales for the month of October in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 35 sales, consisting of:

Condominiums- 26 sales

Single Family Homes - 8 sales

Townhomes- 1 sale

Average square footage = 1559

Average Beds/Baths = 2/2.5

Average list price = $507,489

Average sales price = $449,366

Sales price to List price ratio = 91%

Average Days on Market = 204

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 19

High sale: $2,750,000 - Single Family Home, Belleair Beach

Low sale: $95,000 – Condo, Indian Shores (Barefoot Beach Resort)

If you'd like to live here, full time or part-time, NOW is the time to buy!

www.MyPinellasParadise.com

Why you need a Realtor to buy and sell Real Estate

2009-11-03T14:36:00.003-05:00

Since the Real Estate profession began, marketing experts are constantly trying to draw your attention to all the reasons "You need a Realtor!", yet many owners and sellers are still convinced they can do it all themselves without a trained professional. In some ways, and in some circumstances, this may still be true.

However, the housing market has undergone a major transformation in the past few years and this may not be the easy task it appears.

So, why do you need a Realtor to buy and sell Real Estate? Well, I firmly believe the number one answer to this lies in the complex nature of tasks required of the parties involved.

In any one real estate transaction, there are upwards of 11 people involved, and closer to 22 when financing is involved! If you've ever tried to manage a group of people before, you can already see that there can be numerous issues with trying to coordinate one transaction.

Trying to buy or sell on your own will only eliminate 2-4 of these parties: the Realtors! Which means, as a buyer or seller, YOU may be responsible for coordinating all these functions, and still keep your day job and possibly prepare for a move or relocation yourself!

Another reason you need a Realtor to help you buy and sell is due to the numerous changes in legislation, paperwork and procedural processes that have occurred since the housing crisis began, and developments happen almost on a daily basis. As an independent seller or buyer, do you want to be liable for what trained professionals are constantly required to keep up with?

If you are a buyer, it gets even better since all this knowledge is FREE to you! It's customary for the Seller to pay the entire real estate commission, the buyer does not contribute one cent to the commission. However, the caveat may be: "You get what you pay for". If you are worried that you may be "stuck" with an agent, then do not commit to that agent. But be sure to let them know. Since Real Estate agents do not get paid until a sale closes, it's only fair to be upfront with the person spending hours previewing property for you and arranging showing appointments.

Some agents will ask you to sign an agreement that states you will only work with them for a certain time period. This should not be an automatic cause for alarm. If it's early in the business relationship and you are not yet that certain that this is the agent for you, then feel free to negotiate the length of the agreement, which can even be canceled! (Please note, most agreements state that the Realtor is due a commisison if you go back and purchase a home they introduced to you within a certain time period after cancellation or expiration)

Although most agreements are typically 6 months, in cases like this, as a Realtor, I would feel comfortable with a 30-day agreement. Personally I know that I would be able to prove myself to you in that time period and that most folks would be comfortable with a shorter "trial period".

For sellers, all the valuable services offered by a Realtor are NOT free. Typically, sellers can expect to pay between 4 and 6% of the selling price to a real estate agent. In today's market of fallen prices, this can be a major obstacle for a seller. However, statistics have shown that when a Realtor is hired to sell a property, the property generally sells more quickly and for more money than a seller is able to negotiate. These two factors alone are worth a mere 4 to 6%, as well as being negotiable items when the Listing Agreement is negotiated.

The bottom line is "Always operate from a foundation built on honesty". If you are upfront and honest with a Real Estate professional from the beginning, which sets expectations and defines objectives of all interested parties, you will repaid many times over with great service and a successful transaction!

Have a great week! And if you need a "Beach Break", visit my website and click on the LINKS page- Enjoy!

www.MyPinellasParadise.com

Sales stats for September- Current prices of beach real estate

2009-10-17T13:55:00.005-04:00

This just in:

Residential real estate sales for the month of September in the following beach areas:

Indian Rocks Beach, Indian Shores, Belleair Beach/Sand Key

There were 33 sales, consisting of:

Condominiums- 26 sales

Single Family Homes - 5 sales

Townhomes- 2 sales

Average square footage = 1409

Average Beds/Baths/Garage = 2/2/1

Average list price = $390,724

Average sales price = $347,790

Sales price to List price ratio = 90%

Average Days on Market = 143

Number of properties that are on the beach side of Gulf Boulevard (NOT necessarily Gulf front views) = 18

If you'd like to live here, full time or part-time, NOW is the time to buy!

www.mypinellasparadise.com

REALTOR® Magazine-Daily News-Banks Making Short Sales Tougher

2009-10-09T16:39:00.001-04:00

REALTOR® Magazine-Daily News-Banks Making Short Sales Tougher

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First time Homebuyer Tax Credit

2009-10-07T10:18:00.002-04:00

Here is the form required by the IRS for the tax credit and subsequent refund:

Homebuyer Tax Credit
Form 5405

The clock is ticking!!

Boy, is my face red!

2009-10-06T11:13:00.004-04:00

CORRECTION: regarding Federal Housing Tax Credit

After further research into this topic, and a discussion with my CPA, it's time to issue a retraction on this topic.

The Federal Housing Tax Credit IS a refund, even if you do not owe income tax. If you file a tax return and can qualify to claim this credit, you will receive this money in the form of a tax refund.

There still seems to be confusion about this incentive for homebuyers and I hope this helps clear up some of the questions.

However, the clock is ticking. To claim the credit, the real estate sale has to close by December 1, 2009. That's less than 60 days, which may not be enough time, depending on your transaction.

For example, I am working with a very well-qualifed buyer right now on a traditional sale, and the lender is telling me they need a minimum 30 days to close. In the mortgage world, we call these customers a "slam-dunk" because the process is normally very streamlined with a buyer of this caliber. Just as a point of reference- in the past, most lenders could close a purchase transaction in about 10 days.

So, if you are a buyer looking at short sales and hoping to close in less than 60 days to get the tax credit, I strongly recommend you switch strategies and start looking at deals that can close in time. Foreclosures take less time to close than short sales, but time is truly of the essence today.

For a list of bank-owned properties in this area, please visit my website and click on the "Foreclosures" page.

www.MyPinellasParadise.com

Home Is Where the Tax Credit Is | The Big Money

2009-09-29T13:26:00.004-04:00

Home Is Where the Tax Credit Is The Big Money

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This opinion piece was titled, "Just let the homebuyer tax credit die", when I saw it this morning on the MSNBC homepage.

Recently, there has been an increase in media coverage of the Federal Housing Tax Credit, which is to be expected, given the proposed end of this program on November 30, 2009.

The incentive to first-time homebuyers is not exactly a bad idea, but, other than the issues mentioned in this piece, there are other caveats to be aware of. For instance, in a recent article written for real estate professionals, one real estate broker commented that he is telling buyers this is a tax REFUND. Come April 15, he is probably going to get numerous angry phone calls from buyers when they find out they're not getting a huge refund!
It's a simple case of understanding how the IRS defines "credit" and "refund", which I strongly suspect are the same in ANY dictionary.

For the REAL info, all first-time homebuyers are urged to visit this site for accurate information on the Housing Tax Credit:

www.FederalHousingTaxCredit.com

Along with qualifying criteria for this tax credit, such as income limits and length of ownership requirements, pay close attention to the deadline of November 30.

IMPORTANT: If you are a first-time homebuyer looking to buy distressed real estate and get the benefits of the tax credit, STOP looking at SHORT SALES. You will not close by November 30. Look instead at properties that are truly available for timely close: bank-owned (aka foreclosures) and regular sales are where you should focus your time at this point.

Great deals are out there and they aren't confined to SHORT SALES or even FORECLOSURES. There are numerous motivated sellers in this buyers market.

Check out my weekly list of bank-owned properties in this local area- updated each week!

www.MyPinellasParadise.com

FHA Cash to Drop Below Mandated Levels

2009-09-18T11:59:00.000-04:00

Personal comment: No surprise there. Since the credit freeze in conventional lending markets led to the push for more FHA loans, this was bound to happen. This will be the next financial crisis as FHA loan default rates continue to climb.

FHA Cash to Drop Below Mandated Levels

Foreclosure vs. Short Sales market observation

2009-08-12T11:57:00.003-04:00

Just yesterday, I decided to check out some stats on the active distressed real estate listings within our local MLS (Multiple Listing Service).
The area searched was approximately 25% of Pinellas County, which is a good representation of the general marketplace.

The initial look at the numbers of sales in each category over the past 90 days was nothing extraordinary.
Foreclosures- 52 sales
Short Sales- 69 sales

However, the truth is evident when you look behind the numbers at the length of time these properties are spending on the market!

Foreclosures- 13 of 52 listings were on the market over 90 days, and only 1 on the market over 1 year.
Short Sales- 53 of 69 listings were on the market over 90 days! Seven listings were on the market for over one year!

Even though the marketing time of short sales is lengthy, the real shock is when looking at active listings- properties currently listed for sale and classified as foreclosure and short sale.

Active Foreclosure listings - 34.
Of these, 9 have been on the market longer than 90 days. The longest DOM (Days on Market) was for ONE listing at 193 days.

Active short sale listings - ARE YOU SITTING DOWN???? 342
That's right, TEN TIMES the number of FORECLOSURES on the market. But, as any infomercial hawker will tell you, WAIT - THERE'S MORE!
Of the 342, 196 of these have been on the market longer than 90 days, and 36 listings have been on the market over one year.
The listing with the longest DOM? 966 days

So, what do YOU think- are SHORT SALES the answer to finding a great deal? These numbers seem to indicate otherwise.

For the latest list of local foreclosures, please visit my website and see the "Foreclosures" page.

http://www.mypinellasparadise.com/

Have a great week!

REALTOR® Magazine-Foreclosure Bargains Are Disappearing

2009-08-11T07:58:00.002-04:00

REALTORÃ‚Â® Magazine-Daily News-Foreclosure Bargains Are Disappearing

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Financing distressed real estate - Chapter Two

2009-08-05T09:59:00.003-04:00

Another critical hurdle to financing a home these days is the HVCC, or Home Valuation Code of Conduct. This agreement between NY's Attorney General Mario Cuomo and FNMA (Federal National Mortgage Association), is wreaking havoc on an already devastated housing market, and just in time to lengthen recovery time.
The legislation, which went into effect May 1, requires a different procedure for ordering property appraisals on behalf of mortgage applicants, in an attempt to avoid fraudulent values.
While I could write a book about the issues involved with HVCC, the highlights that affect BUYERS are as follows:

1. More costly to borrowers in terms of both time and money. Appraisals now take longer since there are more people involved, including an appraisal management company. This can mean purchase contract closing date extensions, interest rate lock extensions and changing moving dates and reservations, etc, etc..

2. Another way the HVCC increases costs for borrowers is the increased likelihood that the lender will require additional reviews of the appraisal once it has been received, again at the expense of the borrower, not the lender.

3. Some appraisers are timid, or maybe just are not familiar with the geographical area and local market trends. If mistakes are made on the appraisal, this may force the borrower to go to another lender and start over. It is VERY difficult to make corrections, no matter how logical and simple it may seem, once an appraisal report has been received by the lender.

Thomas Pierce, of www.examiner.com, sums it up best in his July 29 article titled "New appraisal regulations harm consumers", when he stated,

"This is still yet another example of a political figure with just enough knowledge of the mortgage industry to be dangerous unleashing a series of unintended consequences which ultimately harm the consumer".

www.examiner.com/x-18018-Boston-Mortgage-Industry-Examiner

Several trade groups, such as NAR (National Association of Realtors, www.nar.org ) and NAMB (National Association of Mortgage Brokers www.namb.org ) are currently objecting to HVCC and trying to open a review and dialog about how this practice is affecting the entire housing industry. Until the problems associated with HVCC are addressed and resolved, expect continued red tape when trying to get your next mortgage.

So, how does this pertain to buying distressed property? The HVCC applies to all mortgage transactions completed by lenders who sell or service loans for both FNMA and FHLMC (Federal Home Loan Mortgage Corporation), which is the overwhelming majority with the closing of hundreds of other mortggae loan channels.
However, in addition to this hurdle, some lenders simply will not finance a foreclosure property, or a short sale property. And they are within their rights to set this policy, as unfair as it seems to a well-qualified buyer looking for mortgage money.

Basically, it comes down to the #1 rule in mortgage lending: The Golden Rule, meaning whoever has the gold makes the rules!

Have a great week!

www.mypinellasparadise.com

Financing distressed real estate - Chapter One

2009-07-28T15:07:00.004-04:00

Greetings!

In my last blog post, I mentioned that HOA fees may be an issue when a buyer is financing rather than paying cash. Be careful! Even if you are NOT buying distressed real estate, you could still be affected.

As of April 1, 2009, FNMA (Federal National Mortgage Association) put a new guideline in place that pertains to condominiums eligible for financing. The new guideline is as follows:

"No more than 15% of the total units in a project may be 30 days or more past due on their HOA (Homeowners Association) dues. For example, a 100 unit project may not have more than 15 units that are 30 days or more delinquent."

This is another reason why FORECLOSURES are better candidates for purchase than SHORT SALES.

Once a lender has taken legal ownership of the property (through foreclosure), they are required to bring all delinquencies current.

On the other hand, if the real estate in question is in short sale status, chances are high for delinquent HOA dues. The smaller the project, the higher the likelihood that conventional mortgage money cannot be found.

This new guideline change makes it even more difficult to reduce the inventory of distressed real estate, although the cash buyer is always welcome!

Have a great day and please send any questions my way!

Where are all the Foreclosure properties??

2009-07-27T15:46:00.002-04:00

Contrary to popular belief, as well as numerous overblown media reports, the number of actual foreclosure listings on the market is surprisingly low. Many prospective buyers are under the impression there are hundreds of these in our local beach area.
From a professional point of view, it seems to be a confusion of terms, as MANY real estate agents consider SHORT SALES (aka "Pre-foreclosure") to be the same classification as FORECLOSURES, when, in fact, they are very different. I cannot stress this often enough.
From my recent tracking of local distressed properties in the MLS (Multiple Listing Service, used exclusively by licensed real estate agents), I consistently find FOUR TIMES AS MANY SHORT SALES as FORECLOSURE listings!
For the past several months, the weekly list of ALL BEACH FORECLOSURES in Pinellas County (from Clearwater Beach to Tierra Verde) numbers from 12-20 properties TOTAL.
So....WHERE ARE ALL THE FORECLOSURES??

The most obvious reason pertains to the lenders themselves. (I am not the most un-biased person to comment on this, given my 15-year career in mortgage lending.) Lenders have a backlog of pending foreclosures, short sales and pending loan modifications, as well as overworked and underpaid/under-trained personnel, creating a frustrating experience for those depending on them to move the properties off the market.
Also, lenders are in no rush to take over the maintenance of these properties, paying for lawn care, **HOA fees and other securitization services, not to mention paying property taxes!

** non-paymentof HOA fees is causing problems also- look for upcoming blog on this subject!!

Another, related, factor is the court system. In Florida, foreclosures are judicial, meaning the courts are backlogged as well. In a normal environment, a Florida foreclosure takes about 5 months. Right now, the average time is 10 months or even longer.

A third factor? Various "foreclosure moratoriums" set forth by FNMA (Federal National Mortgage Association) and both the Bush and Obama administrations, all of which are currently expired. The moratoriums were put into place to allow distressed homeowners an opportunity to take advantage of numerous plans to modify or refinance their home loans.

Only when and if lenders and courts can streamline the process will more foreclosures enter the marketplace. In the meantime, the current inventory I track is moving from listing to SOLD in a very timely manner. Foreclosed properties (aka Bank-owned) seem to be priced right and ready to move at this time.

For a weekly list of FORECLOSURE properties, all you have to do is visit my website and click on the "Foreclosures" link to access the documents.

www.MyPinellasParadise.com

Have a great week!

Foreclosure homes- How much should I know?

2009-07-23T08:11:00.004-04:00

Increasing numbers of looming foreclosures indicates that now is the time to become as familiar as possible with the pros and cons of buying distressed real estate. If you are working with a professional, knowledgeable Realtor that you are comfortable with, half the battle is already won as he or she will be guiding you every step of the way.

A great agent is a critical asset to you, especially when considering distressed real estate. I've found that, as in any relationship, compatability is key! Spend some time in the initial meeting or phone call to determine if this person is someone you feel comfortable with. Some agents are annoying and some buyers are annoying. It's just the way life is. Do not agree to work with someone exclusively if you feel you cannot trust or rely on the person to keep your best interests in mind.

On the other hand, if you are comfortable with the Realtor, keep working with him or her and make it exclusive, even for a limited time period if you are concerned about getting "stuck in a long-term agreement." And, I'll let you in on a little secret: some Realtors are also observing you as a client, and from time to time may not want to work with you. Don't be offended, as they are usually only trying to save both parties from an unpleasant experience.

What else can you do to become familar with the distressed property market? There are about a million resources on the internet. However, as anyone familiar with the online world knows, most of the content is pretty much the same. Don't get overwhelmed- choose 2 or 3 resources you really like and get involved- read articles, ask questions, and also include your agent in the process, if you've selected one. Some popular sites are Realtor.com and Trulia.

Some caveats: Most of the public sites that allow you to search for homes do NOT differentiate between SHORT SALE and FORECLOSURE. Since many short sale homes are listed at low prices in order to generate offers, online home shoppers are most attracted to these, and are usually surprised to learn the home is actually a short sale.

Since not all search engines are up to date, some of the listings found online by independent home shoppers have been taken off the market or sold by the time a Realtor is contacted about the property.

By engaging an agent with MLS (Multiple Listing Service) access, you can be assured of the most current and accurate information available.

A GREAT OPPORTUNITY to buy real estate exists right now. What are you waiting for?
View this week's foreclosure lists for bank-owned property in the local area on my website and have a great week!

www.mypinellasparadise.com

Foreclosure vs. Short Sales- What's selling?

2009-07-09T09:58:00.005-04:00

If you are still in doubt about the difference between a "Foreclosure" and a "Short Sale", you can refer to my first post on this blog.
When pursuing distressed real estate, you will be happy to learn that you can avoid several unknowns by targeting a specific type of property.

My recent analysis of the local market area indicates that FORECLOSURE SALES and SHORT SALES are closing at around the same rate over a 60-day period; although the ratio of active For Sale listings reveals a 4:1 ratio of SHORT SALES to FORECLOSURES.

Putting in simpler terms, there are FOUR TIMES AS MANY SHORT SALE listings as FORECLOSURE listings, an obvious indicator of very long periods of time associated with buying a short sale property.

Now is the time to always, always, ALWAYS remember.....

It's ONLY a good deal if it CLOSES!!

You can see this week's list of foreclosures for sale in this area by visiting my website. These lists are updated every Friday, but if you see something attractive- DO NOT WAIT. Chances are it will be gone soon. There are some very good deals on the list!

http://www.mypinellasparadise.com/

Thanks and have a great week!

Distressed Real Estate- good, bad and ugly homes!

2009-06-28T14:34:00.002-04:00

Buying distressed real estate is NOT for the financially immature and usually is not a good strategy for first-time homebuyers. Why? Because most of the properties are in need of repair and some require extensive renovations, which is usually in direct conflict with the low downpayment mortgages being offered and insured by FHA. The lenders offering this type of financing are particular about property condition and most sellers in this position will not or cannot afford to make needed concessions needed to complete the transaction.

The ideal buyer in the distressed real estate market is the investor, with means or access to home building and remodeling skills, and who plans to hold the property at least 5 years.
Contrary to what the media may be reporting, it is very difficult, if not impossible to "flip" property in this market.

If first-time homebuyers are determined to buy into the distressed market, it's preferable that they are pre-approved for conventional financing with a hefty downpayment and money in reserve that can be used to refurbish the home.

Most, if not all, distressed property is listed "as-is with right to inspect". From a professional standpoint, planning to purchase a home inspection should be priority upon acceptance of a purchase offer. Normally, a buyer will have a 10-day period to have the inspection performed, review issues and problems, and, based on the report, may decide to walk away from the contract. BE CAREFUL! A buyer only has a specified number of days to cancel a contract based on the inspection results without losing the earnest money deposit.
With the inspection results in hand, it is often easier to obtain estimates from various contractors and determine the true cost of necessary repairs.

This entry completes my coverage of the biggest pitfalls associated with buying distressed real estate. There are too many other issues that can arise, and it's always advisable that a buyer have a team of experts to help navigate this strategy of buying real estate "for fun and profit"!
:-)

Check out this week's FORECLOSURE LISTS on my website- 60 homes ranging from $39,900-$989,000!
Just visit my website and click on the FORECLOSURES page.
www.mypinellasparadise.com
Have a great week!

Short Sales, Loan Modifications and Bankruptcies, oh my!

2009-06-21T13:54:00.003-04:00

What else could go wrong with a short sale? How about last minute loan modifications?
Example: (Based on a real situation)
Seller lists home with Realtor as a short sale. Buyer puts in and secures a contract to purchase the home through a selling agent. All inspections are done, financing arrangements are made and appraisal is done. Four months into the transaction, it is finally time to close. The morning of closing, the sellers do not show up to sign the documents. Some panic ensues and the seller's Realtor finally reaches the sellers and is told they will not be selling the home since they just worked out a loan modification and will be keeping the house!
What does the buyer lose? Technically they would not lose their earnest money deposit, but would lose any money they paid to secure the mortgage or for independent inspections. The biggest loss of all though, is the loss of the "great deal" the buyers thought they were getting,
as well as the time invested in the transaction. Perhaps moving arrangements had even been made, utilities transferred, boxes packed, etc, etc.

Another event that could trouble a short sale situation is if the seller files for personal bankruptcy. Once the filing is legal, lenders are forced to cease all action until the case is worked out through the bankruptcy proceedings. This is less common than loan modifications, but it can happen.

Both of these scenarios are more likely in the case of an occupied property, specifically OWNER-OCCUPIED.

If you are seriously looking to buy a short sale home, I would suggest eliminating the ones that are still occupied. And of course, as for ANY short sale- prepare to wait.

If you don't want to wait, and possibly miss out on the great deals that are closing every day, start looking at foreclosed homes instead! My website has an updated list of 59 homes in the local area, a third of them in the beach areas of a popular vacation destination!

http://www.mypinellasparadise.com/

Short Sale contract terms- Pay Attention!!

2009-06-15T16:38:00.004-04:00

Our local board of Realtors requires a Short Sale Addendum with every purchase offer submitted. This addendum states in no uncertain terms that the seller is not liable for the following:
A- Delays caused by Lender,
B- Failure of the Lender to approve the contract
C- Failure of the Lender to complete the short sale after approving the contract, or
D- Any costs or expenses associated with the delays or Lender's failure to approve the contract, or to complete the short sale after approving the contract.

It doesn't take a brain surgeon to determine that, for a buyer of a short sale, this can be a high-risk situation.

However, as a buyer of distressed real estate, you do still have the standard right to inspect the property. Within an agreed upon number of days after the inspection, a buyer can cancel the contract due to inspection results, but would not be refunded any inspection fees.

Remember: There is NO penalty to the lender or the seller for failing to complete a signed purchase contract on a short sale. You would receive any earnest money deposit back, but you would lose other monies and could end up with nothing, not even a house, and certainly no "GREAT DEAL".

You can review a list of current Foreclosure homes on my website, updated every Friday:

www.MyPinellasParadise.com

Buying Distressed Real Estate- where to start?

2009-06-08T15:51:00.001-04:00

The most important first step when seriously considering buying distressed real estate is to become familiar with the pros and cons of such transactions.

Short sales should NOT be confused with QUICK SALES. Prepare to wait. And wait. And wait. And then wait some more. These transactions can take months to see any progress towards closing. Once you submit an offer, there is no deadline for the lender to respond. And the lender is the decision maker in a short sale situation.

Even if you specify a response date in your offer, lenders are not obliged to act in a timely manner. The acceptance of an offer depends mainly on how much loss the lender is willing to lose, and secondly, the strength of the buyer's offer. Buyers offering list price or higher and paying cash are typically considered more favorably.

Often, short sale transactions are "processed" by yet another party, a for-profit company that specializes in this type of transaction; commonly known as a Loss Mitigator and hired by the listing agent. However, there is virutally no oversight of Loss Mitigation companies, and this does not always make for a smooth process or even speed up the transaction.

Bottom line: First rule of buying short sales = practicing extreme levels of patience. If you are looking for a home you can move into within 30-60 days, short sales are probably not for you.

Foreclosures and Short Sales- Learn the Lingo!

2009-06-07T08:11:00.000-04:00

Many prospective real estate buyers are looking for a “deal”. Most of them are speaking of distressed properties; homes that have been through the legal foreclosure process, are bank owned, and/or known as “short sales”.

To become a savvy buyer in this complex market, it’s crucial to distinguish between these terms, and they are quite different. Many buyers interchange the terms “short sale” with “quick sale”, and this couldn’t be farther from the truth.

The majority of short sales are technically “pre-foreclosures”, where the owner usually has a hardship, the mortgage payments are in default, and the lender has started the foreclosure process, sometimes filing a Lis Pendens (public notice of intention to begin formal foreclosure). Many lenders will not pursue a quick foreclosure if there’s a chance the real estate can be sold first, as foreclosure is the most expensive option for a lender.

The length of time a lender may allow a property to be sold as a short sale will vary from a few months to more than a year. The next step for an unsold short sale is foreclosure.

Foreclosure means title has been transferred to the bank holding the defaulted mortgage, through the proper legal channels, and is now owned by the bank as a non-performing asset.
These properties are usually vacant, or, in some cases, the bank allows a tenant to remain in the home until it can be sold.

So, what if you want to buy distressed real estate? Where do you start?

Stay tuned for my next blog. You can also visit my website: www.MyPinellasParadise.com