6000 SW 108 Street Pinecrest, Fl

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.

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.

Myth #1

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.

Myth #2

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.

Myth #3

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.

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.

That’s almost unheard of turnaround time.

Most people would like to avoid a short sale if at all possible. I’ve even heard of agents who refuse to show their clients short sale or foreclosure listings because they don’t want to deal with the perceived hassle. But when you have a professional team in place, including experienced realtors and a title company on board from the beginning to facilitate the process, it makes the transaction move much more smoothly.

While it’s true that short sales do require a bit more patience and time they can often be the source of a great purchase, creating fantastic opportunities for buyers.

What has been your experience with short sales? Comment on this story to share your thoughts.

If you have questions about short sales or foreclosures or are interested in obtaining help with your distressed sale or purchase. Contact me here.