March South Florida Real Estate Update:
Last month I forecasted an increase in traffic and sales due to the lower interest rates and the change in the State’s property Tax Program, I was half correct. We have seen a drastic increase in the amount of traffic, in all price ranges, what we have not seen yet is the corresponding sales. The media is still full of doom and gloom and most buyers while they have realized that in area we are in that the market is either at the bottom or very near the bottom, they are still hesitant to commit themselves. In today’s market sellers are still taking some sort of offer below their already deflated asking prices, as we hit bottom the difference between asking and selling price will disappear in a very short period of time and the buyers will have lost out.
I am amending my forecast to the following:
The market will continue to show signs of improvement through the end of the 2nd quarter; we should see the bottom by the end of the 3rd quarter and have a stable market by the 4th quarter. Any significant price change will not take place till 2009 when prices will be begin to firm up and we will have our first positive market in almost 3 years. Now on to another topic of interest, “THE SHORT SALE”, a phrase that has become a topic of discussion of late by buyers and sellers alike.
“Short Sale”.
What is a short sale? Very simply, a short sale is when a buyer purchases your home and negotiates with your Banks to take LESS than what you owe them. The Banks accept this short payment as “Paid in Full” and that is how the loans will look on your credit report after closing. The foreclosure proceedings stop and you will normally not owe the Banks any money at all after the house is sold. Your credit report will not show the scarlet letter of a foreclosure which can ruin your financial situation for the next 10 years! By almost any measure a completed foreclosure is the most damaging event your credit status can incur – worse than a bankruptcy. A foreclosure on your credit record will negatively impact your ability to borrow money or even rent a house for years.
The key is in knowing HOW to convince the Banks this is a smart business decision.
We have created a Team of experts to help you through the process so that the short sale can be accomplished in the least amount of time, with the least discomfort to you. We have accomplished this without adding additional costs to the seller or buyer. The following are what our team will do for both buyers and sellers to facilitate this process.
· Show you where to find properties that need to be sold with a short sale contract.
· Explain the short sale basic concepts to Seller's, so they know just how a short sale can benefit them.
· Connect you with our network of nationwide investors who buy short sale properties to see if your short sale listing is right for them.
· Give you the language needed to put in every short sale contract which will protect the Seller and the Buyer.
· Work with the Seller to help them understand the short sale process and keep them motivated to sell.
· Gather all of the documentation and disclosures the Banks will need from the Seller to get the short sale contract approved.
· Create a detailed, customized short sale proposal for each of your contracts and submit that proposal to the Banks.
· Negotiate with any lien holders on the property and get them to approve the short sale.
· Negotiate with any Homeowner’s Associations and get them to approve the short sale.
· Work with the title company and any Attorney’s that may be involved in the foreclosure process and get them to approve the short sale.
· Convince the Banks to stop all foreclosure actions while the short sale contract is being reviewed.
· Meet with the appraiser the Banks send to the property and make sure they are fully aware of all of the market conditions, listings and home prices prevalent in the market to insure they come back with a value which supports your short sale contract.
· Use our personal relationships with the loss mitigation specialists at each Bank to get your short sale contract approved as quickly as possible and make sure it doesn't fall to the bottom of the pile.
Lea Plotkin and Rubin Wites are not just Realtors we are business people who happen to be Realtors. Lea has a Masters Degree in fine Art, run a new construction project, Training and IT director for Prudential Wites Realty, before it was sold to Prudential Florida WCI Realty in May of 2000. Rubin has a degree in finance, owned and operated one of the most successful Local Real Estate firms for 20 years before selling it. Together we have developed successful marketing programs that have enabled us to be amongst the top 1% of all Realtors Nation Wide. Today’s market is no different than any other and it requires aggressive marketing plans to enable both the Buyers and the Sellers that we work with to achieve their goals, that is what we excel at and if you would like more information on how we can help you as either a SELLER or BUYER in using the Short Sale process to your Benefit please contact either Lea Plotkin at 954-802-8451 or Rubin Wites at 954-592-6734
