Archive for the 'Market Information' Category
Wednesday Open Houses- 12:00 p.m. – 2:00 p.m.
We will be kicking off this TODAY with 2 open houses for 2 of our listings which we consider to be GREAT family homes in Great locations!
The Ultimate Family Home
This luxurious waterfront home is located in Gables by the Sea one of Coral Gables most coveted neighborhoods. This home has a new price and new look! Come see this beautiful home and appreciate its grand size and bright spacious formal areas. This 5 bedroom/ 5 bath home has everything you expect from a luxury South Florida home.
Exquisite finishings including marble, onyx, granite, and Brazilian teak. Features include soaring ceilings in living room with fireplace, chef’s kitchen with breakfast area, family with a pre-wired sound system throughout, and much more. Wonderful views to the beach-entry pool and ocean access canal. No bridges to bay, extra wide canal, and 100 ft. of sea-wall.
If you will recall my recent post,“New listing in Pinecrest,” I just listed a 3 bedroom/ 2 bath home in Pinecrest last week. After 5 showings and 3 days on the market we had a signed contract in hand. It’s a wonderful house in a great location that I know will be the perfect home for it’s soon-to-be, new owners.
This is just another indicator that the key to selling homes in this market is pricing. When you price a home at a higher price than the market can support chances are it will just remain stagnant on the market. Pricing a home realistically will help everyone save time, money and patience, in the end.
If you are thinking of selling your home and would like to speak to me regarding the market, I would be happy to discuss. Please contact me here.
As you will recall in my recent blog, “What is a short sale?”, I explained the basics of short sales.
Even though it is popular topic in the news, there is still a lot of mystery and gray area surrounding it. So, it’s easy for misinformation to spread. Today I want to clarify three myths I often hear.
In a short sale situation, the bank owns the home.
This is incorrect. That is the case with a foreclosure, which is when a lender has repossessed a home from the owner, as a result of continued loan default, and is selling it in order to recover their loss on the loan. A short sale is when a homeowner decides to sell their home, usually as a result of a hardship like a job loss, due to the fact that they are no longer able to pay their mortgage. In this situation, the homeowner is “upside down,” meaning they owe more on the loan than their home’s current market value. When we go to sell the property the short sale lender has the option to accept or reject a “short payoff”. But the seller still owns the home and they get the final say as to whether they will accept a buyers offer and their lender’s short sale offer as well.
Short sales take up to 1 year to proceed to closing.
Well…sometimes this is true, but very uncommon. It depends on a lot of factors. Every lender is different. Sometimes sellers do not cooperate. And there are a lot of hurdles to get through with a short sale, often times adding to the amount of time needed to get to closing. Though over the last 6 months my team and I have noticed a considerable difference in the speed and efficiency of the process with most lenders. I’ve seen short sales close as quickly as 30 days and take as long as 1 year. Every situation has it’s own set of circumstances and challenges, but if you are patient and have the option to wait, it can often pay off for both a seller and a buyer.
If you sell your home as a short sale the lender will forgive your debt.
This is entirely up to the lender in question. Once they accept the short sale offer, and send the final short sale approval letter, it contains all of the terms of the sale and how the proceeds will be distributed. At that time, they can request the seller pay back a portion of the loan through a promissory note or a cash contribution at closing. Or the letter may state that the debt has been forgiven. It is the seller’s responsibility to make sure they get in writing, from the bank, that the debt is forgiven in it’s entirety. That is the only way they can be sure they won’t encounter additional debt collections down the road.
If you are considering selling your home or buying a home, and you have questions about short sales, I would be happy to speak with you. Please contact me here. I always recommend a seller consult a real estate attorney and their accountant regarding the possible risks associated with this type of sale. It’s not for everyone, but it could be a good solution to your situation.
I can’t tell you how many times I get this question from clients, family, collegues and various others in the course of a week. It is a relatively new concept, only really becoming popular within the last few years, and lately seems to be the situation with a good portion of my listings and those listings that buyers I am working with are interested in buying.
A short sale occurs when a seller’s lender agrees to take a payoff for less than balance owed on their loan. Then they either forgive the remaining debt or ask the seller to pay back all or some of the debt, through a promissory note or cash contribution. When a seller chooses to sell their home in this fashion it is typically a result of a hardship. Home values have plummeted over the past 5 years and that, combined with job losses and a very tough economy overall, have caused many home owners to resort to this option.
There is a common misunderstanding that a short sale is when the bank (seller’s lender) owns the property and has the right to sell it at their terms. That is actually the definition of a foreclosure. With a short sale, the seller still owns the property and ultimately gets to accept or decline the buyers offer. However, since they are asking their lender to take a “short payoff” the bank does get a say in whether they will accept the final number.
After dealing with a multitude of short sales I have become an expert in marketing and closing these sales. It can often take months for the bank to process the paperwork. However, it’s a great option to help a seller avoid foreclosure and preserve their credit as much as possible, allowing for a faster financial recovery. If you or someone you know is considering a short sale, please contact me here. I would be happy to discuss your situation.
If the answer is “Yes” then I am sure you will want to attract buyers and receive the highest possible purchase price for your home.
Pricing is crucial in today’s market.
An over-priced home gives the impression that you are not serious about selling.
Although, inventory is progressively decreasing there are still a lot of homes to choose from out there. Serious buyers are aware of this and are doing their homework before making their next big purchase. It is safe to say that an overpriced home will often be overlooked not only by these buyers, but by realtors. Many buyers grow tired and frustrated with available housing, which includes short sales and foreclosures. That being said, a well-priced home that is just placed on the market is most likely to attract the pool of buyers who have been shopping in your neighborhood. These homes will receive lots of activity, including showings and eventually offers. In some cases, if the area is in high demand we have seen bidding. Yes, even in this market homes do get sold over the listing price.
Remember to focus on data and trends and to check your emotions at the door. And most importantly choose a realtor, like myself, to help you sift through all of the numbers and get down to the realistic value of your home. I can provide you with market trends, statistics and recent sales to assist you in determining the correct price to market your property.
If you are interested in selling your home I would be happy to help you with the first steps. Contact me here.
So you want to buy a home in Palmetto Bay…
I just listed a house this week at 14500 SW 84 Court in Palmetto Bay and within the first few hours of it going live on the market we had two showings set up for that same day.
It has 3 bedrooms and 2 bathrooms, plenty of living space including formal living/dining rooms. A large kitchen with tons of counterspace and an island with sink. Good sized bedrooms. Screened, partially covered patio and pool. Big yard with fruit trees. A garage with enclosed utility/laundry area. Great location. This house is just simply “comfortable,” a perfect family home.
It appears that we are starting to notice a decrease in the inventory in this neighborhood and others nearby, meaning fewer homes to choose from. Buyers are anxious to see a home as soon as it goes on the market so that they can be first in line should it be a home they are interested in pursuing.
Call or email me today to learn more about this property or other listings I have in Palmetto Bay.
Almost everyone is curious about what is going on in the real estate market in Miami. That goes for residents and out-of-towners alike. And with the consistently changing market it’s important to stay on top of the housing market trends. The best way to do this is to look back over the past year and compare the numbers of today with those of 1 year ago:
In December 2008 there were 14,988 single family homes for sale in Miami-Dade County. In December 2009 there were 8,271. That’s a 44.8% decrease in the amount of homes for sale.
Looking at activity levels, for the end of 2008 there was an average of 625 sales per month compared to 807/month in 2009. A 29% increase in sales!
So, inventory is down and sales are up. That’s great news as we head toward a more balanced market and better times ahead in 2010.
For more information on the South Florida Real Estate Market, contact me today.
It’s a major incentive for buyers right now.
Business Week published an article in December titled “If you don’t buy a house now, you’re stupid or broke.” The article basically noted the historically low interest rates we are now experiencing. Rates are currently around 5%, the lowest they’ve been in 40 years. Here’s a look back so that you can see where we’ve been…
- Average of 9% in the 1970s
- 10% in the 80s and early 90s
- 7-8% for much of the 90s
- 6% only over the last couple of years
You have to understand the impact the rate has on purchasing a home. Every quarter point change is equivalent to approximately $6,000 for every $10,000 borrowed over the course of a 30 year fixed loan. We know interest rates won’t stay this low forever. So what are you waiting for?
Just one more reason to call me to discuss buying a home today.