5 Myths About Short Sales
It’s a troubling time for a lot of folks. Tough times hit and suddenly families that were living the powerful dream of home ownership find themselves struggling to
make ends meet and overwhelmed by a mortgage they can no longer afford. For some anxious homeowners, fear, stress and shame have kept them from reaching out and finding out the very real options available to help them once again sleep easy and find peace of mind. If this sounds like you or someone you know – please take a look at the real truth behind five of the most common short sale and foreclosure misconceptions:
1. I’m all alone in this. Nothing could be further from the truth. Our shifting economy has put hundreds of thousands of families at risk of losing their homes and afraid for their financial future. The good news is there are many more resources and options available to you than you even imagined, and with the right short sale specialist on your side, you too can find answers to your questions and an opportunity to regain peace of mind and financial stability.
2. The bank wants my home. The banks do NOT want your home. In fact, in many cases, with the right advocate on your side, they will do everything they can while working in the perimeters of their legal restrictions to help everyone find a solution other than foreclosure that can be a win-win for all involved. Lenders across North America are already overwhelmed and under fire to move the foreclosed properties already in their inventory. They do not want to add yours to the mix. What’s important to note is that every situation, every family, every individual has a unique set of circumstances that needs to be properly diagnosed and “treated” for its unique qualities. A trained, designated short sale specialist can help you sort through your current situation to determine your best course of action.
3. I’ll have to file bankruptcy. While in some cases, depending on the level of debt and distress, bankruptcy is the smartest alternative, it’s certainly not in EVERY short sale case. In fact, many homeowners, once they’ve consulted with a short sale specialist and a team of professionals (including CPA, tax attorneys, etc.) find that their situation is not nearly as dire as they thought. Once again, it’s best to connect with a seasoned, TRAINED professional so that you can truly get a big picture view of what can be done to get your family to a better financial place.
4. It’s going to cost too much to hire a REALTOR®. It doesn’t cost YOU anything to utilize the necessary services of listing your home with a REALTOR® and short sale specialist and you are not obligated to pay for repairs to the home. When the lender approves the sale, they are also approving the costs of the sale, including the agreed upon sales commission and the home is sold “as is.”
5. I can call just any agent. While that’s true – you can – what’s important to know is that just like in any profession, not all agents are created equal. The current economic climate has created such an abundance of short sales and foreclosures that in order to truly get the best possible advice, help and end result for you and your family – you really do need an agent who has had the specialized training, the systems in place and the experience to take you all the way through the process – from diagnosing your particular situation – to negotiating with the lender – to getting your home sold and your family on with your future. Look for agents with special designations such as CDPE or America’s Home Rescue. They’ve put in the time, energy, expense and experience to ensure that they have EVERYTHING a distressed homeowner needs to make the best possible decisions.
If you’re facing tough times and are not sure what your options are let us know. We have powerful referral sources you can trust to give you the best possible advice and guidance for your situation. We’re here to help.
What’s My Home Worth?
Determining Fair Market Value
One of the first things a real estate agent does when helping a homeowner determine list price for their home or to determine if a house a buyer is interested in is priced at fair market value is to use comparables to see what other similar homes in the area have sold for.
It’s not always apples to apples — but experienced agents know that some common sense factors such being in the same neighborhood, school district, house size, property size, age of home, and similar features all play a part in separating the ’good comps’ from the bad.
Other factors play a key role as well. It’s not enough to have similar home — timing plays a big factor in the credibility of the comp. House A and House B may be nearly identical — but if house A sold two years ago or even two months ago in a volatile market — that price point is more than likely not still viable. So a wise agent uses all the tools at their disposal to come up with the closest possible comparison, and determine the fairest market value mapping out factors such as the ones above; plus date sold, number of bedrooms, number of bathrooms, amenities such as pools, fireplaces, etc. all play a role.
One thing agents do have to caution home sellers on when choosing price is the dollar value they put on the improvements they’ve made. Some are wonderful, upgraded kitchens and bigger bathrooms, etc. Some are more individual tastes. Ultimately the market price of a property is determined by the market. What a buyer will pay in that market at that time.
If you want to know what your home is worth – give us a call at 727-787-2299. We can recommend a real estate professional that can help you right away!
What Does That MEAN?
There’s lots of “terminology” out there in the media and online these days swirling around the real estate market and mortgage investments. So this month we put together
a glossary with words I thought might need a little more clarification.
Fair Market Value: In its most basic form – This is the highest price that a buyer, willing but not compelled to buy, would pay and the lowest a seller, willing but not compelled to sell, would accept.
Foreclosure: The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
Deed-in-lieu: Short for “deed in lieu of foreclosure,” this conveys title to the lender when the borrower is in default and wants to avoid foreclosure. The lender may or may not cease foreclosure activities if a borrower asks to provide a deed-in-lieu. Regardless of whether the lender accepts the deed-in-lieu, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents preparatory to a foreclosure being recorded and become a matter of public record.
Short Sale: A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Got a real estate or mortgage word or question you’d like to know more about? Call us today at 727.787.2299! We’ve got the answers!
Should You Move Up in a Down Market?
by Marlene Crawford
While it’s true that this market will make it difficult to get as much for your current home as you would like, the price of that larger home you’ve had your eye on also has gone down. If you consider the price decreases in percentages, NOW is the BEST time to BUY!
For example, if your current home is worth $200,000, and the home you want to buy has a value of $600,000, the difference in value is $400,000. Right?
Not necessarily! With home prices decreasing roughly 10% on average in today’s market, your current home would be worth $180,000, and the home you want to move up to would be worth $540,000. So while your home value has decreased only $20,000, the home you want is now $60,000 less!
Understanding exactly how the shifting economy affects your buying and selling power is not just my job, it’s my passion. While you might hear a lot of media hype expounding on bad-market syndrome or buyer’s market vs. seller’s market, know that in ANY market, I am here to bring you real information… in real time… with real answers on how you can achieve your real estate goals.
For the most accurate look at how you can best meet your real estate and financial goals in today’s market, please give us a call. We can connect you with a trusted Realtor and together we can take a look at all of the possibilities and determine the best time and circumstances for you to make a move. I’m here to help!
Buy? Sell? Wait?
Our markets have certainly run the gamut in recent years and it is tough sometimes for consumers to keep pace with the trends to know how timing can and will affect their 
home buying and selling decisions.
Interested in buying? When the interest rates are low and prices have bottomed out, you’ll find the very peak time for the best buying deals. Financing is critical, so make sure that you have a handle on that credit score and a history of steady work. We’re happy to help you best understand exactly how much you qualify for and what you’ll need to buy now!
Interested in selling? When home prices are peaking and the market has stabilized, it’s a good time to sell your home. Even in a buyer’s market, it’s a great time for consumers interested in the “move-up” market, or buying the next size home. What you may lose on the sale of one house, you usually more than make up for in the purchase of a new home. Call us today to find out just how much you could sell your home for in today’s market.
Still waiting? Not sure if it’s a good time to move, if you have enough for a down payment, or just want to weigh all your options? No problem. We can help you anytime to better understand where you are in terms of market conditions, price analysis, and buying power.
We’re a resource you can trust!