All About Buying A "Short Sale" Home

You may be wondering what a "short sale" property is. In most cases, it is a property whose owner is facing foreclosure and trying to preserve his/her credit rating.

Short sales are different from other property sales. Instead of only involving two parties, the buyer and seller, a short sale also involves the holder of the mortgage loan. The seller has approached his or her mortgage holder requesting to sell the property for less than the balance owed on the mortgage, thus the expression “short” sale. The mortgage holder may reject that request and proceed into foreclosure, but many banks are ready now to accept less money for a property than is owed on it because a short sale will likely cost the bank less than putting the property through foreclosure. A short sale can be a good deal for the seller and it can also make the property a good deal for a buyer.

If you are a buyer looking for a great deal, a short sale properties can be an attractive option although you need to understand the differences between a normal real estate purchase and a "short sale." In a short sale, the buyer and seller negotiate and agree on a price as with a normal real estate transaction. The differences are as follows. You will have to offer to buy the property "as is." The seller is very unlikely to agree to pay for any repair needs uncovered during a home inspection. You also will not be able to stipulate any contingencies. At this point, the process moves out of the seller’s hands to the bank’s loss-mitigation department.

To increase your chances of a successful offer, make your offer price reasonable and include a substantial earnest money deposit. If you plan to use a mortgage to pay for the home, include a lender approval letter with your offer.

A buyer's offer usually takes about 30 or more days to get through the bank's loss mitigation process. Mortgage holders seldom make counter-offers and some banks will not notify you or your Realtor if the offer has been rejected... only if it is accepted.

If you are a prospective short sale buyer, I will work with you to get you the best possible deal. With my designation as an "Accredited Buyer Representative," you can feel confident that I know how to go about getting exactly that for you.

I invite you to call me directly at 941-228-2321 or at my Sarasota REMAX Office at 941-360-7777 with any questions you may have. I always have available a list of Sarasota area short sale properties available for viewing.

Sarasota Florida Home Sales Top 500 Again In May

Overall home sales in the Sarasota real estate market exceeded 500 for the second time since June 2008, inventory levels dropped, and the median sale price for both single family and condominiums stabilized in May 2009. These statistics all point toward a normalization and moderation of the market following a more volatile period during the past two years.

Overall home sales of 506 included 375 single family homes and 131 condominiums,
nearly identical to the April, 2009 numbers. Pending sales also remained at highly elevated levels, with 719 pending sales for single family homes and 210 pending sales of condominiums in May. The trend for pending sales has been upward for several months beginning in March 2009, when the figure topped 800 for the first time in three years.

“We are all encouraged by the recent strength of the Sarasota - Bradenton - Venice real estate market, and we're hopeful that this upward trend will continue as we enter the traditionally slower summer season,” said Sarasota Association of Realtors President Bill Geller. “Of course, until we get through this period of elevated foreclosures and short sales, the median sales price will remain artificially low."

Sarasota has mirrored the national trend. The median sale price for single family homes stood at $155,000 in May 2009, down slightly from the figure of $160,000 in April 2009. The median sales price for condo was $181,000 in May, also slightly lower than last month’s figure of $182,750. While prices have leveled off, they are still much lower than May 2008, primarily due to the high number of short sales and foreclosures, which have pulled down the median prices from last year’s levels.
.
The health of the Sarasota real estate market in May 2009 continues to improve for both single family homes and condominiums as inventory of homes for sale continues to decline.

If you would like to know more about homes for sale in Sarasota and its surrounding communities of Bradenton, Osprey and Venice, visit my Sarasota & Bradenton Real Estate website. You may also want to review my thoughts on my view of the proper role of a Sarasota Florida Buyer's Agent. I invite you to call me directly at 941-228-2321 or at my Sarasota REMAX Office at 941-360-7777 with any questions you may have.

Consumer Confidence Soars as Sarasota Homes are at Bargain Prices

U.S. consumer confidence soared in the month of May to its highest level in eight months, suggesting underlying improvement in the economy after a grim first quarter that witnessed a record plunge in home prices and soaring unemployment.

The Conference Board said on May 26th that its index of consumer attitudes jumped to 54.9 in May from a revised 40.8 in April, well above forecasts which centered around 42.0. That was the biggest one-month jump since April 2003. Index values above 50 reflect a positive movement in the level of consumer confidence.

The confidence data was in line with other evidence suggesting that, while the economy continues to contract in this quarter, the pace of deterioration has substantially slowed. "That moderation in the rate of decline in economic activity is raising hopes that an actual improvement will take hold in coming months" said Mark Vitner, senior economist at Wachovia.

According to a recent Standard & Poor's/Case Shiller index, during the first quarter of 2009 alone, U.S. home prices fell by 19.1%, the most in the 21-year history of the survey. Given the improvement in consumer confidence combined with the dramatic reduction in home prices that has occurred in the past year, it is no surprise that in the Sarasota - Bradenton real estate market, home and condominium sales have come back to life.

"We believe the current climate of historically low interest rates, major incentives for first-time home buyers, and the many other government programs designed to stabilize the economy and the housing industry are all having a very positive impact," said 2009 SAR President Bill Geller. "Every downturn is followed by an upturn - we know this to be true historically. We've been through a difficult time in the Sarasota real estate industry, and ... we are seeing now the beginnings of a new, dynamic era"

Home prices in Southwest Florida have not been this low in years and mortgage rates are still at all-time lows. The Sarasota - Bradenton - Venice Florida real estate market is literally bursting with properties for sale at the most attractive prices in years. With short sales and foreclosures as well as builders still trying to sell their excess inventories and the normal amount of families down-sizing, up-sizing and upgrading, there is a home, condominium or villa in the greater Sarasota market priced very attractively in every price range for every family.

Whether you are looking for a golf course community, a waterfront location, or a supremely comfortable neighborhood, the Sarasota - Bradenton Florida real estate market has something that is perfect for you.

It won't be long before Sarasota real estate property prices start climbing again. so don't miss this opportunity.

If you would like to know more about homes for sale in Sarasota and its surrounding communities of Bradenton, Osprey and Venice, visit my Sarasota & Bradenton Real Estate website or call me directly at 941-228-2321 or at my Sarasota RE/MAX Office at 941-360-7777.

Anna Maria Island - Florida's "island in the Sun"

Living on an secluded, relaxing island may be only a dream for you right now, but Anna Maria Island still has many modestly priced homes, condominiums and villas available for sale at the right price

Each of Anna Maria island's three cities has spectacular beaches and continuous outdoor activities -- plus dozens of enjoyable shops and restaurants. Anna Maria Island is also home to the delightful Key Royale golf course in Holmes Beach. Each of the three cities on the island, Anna Maria, Holmes Beach and Bradenton Beach tries to preserve the "Old Florida" flavor that is the island's heritage by limiting the size and type of buildings.

Whether you're looking for a multi=million-dollar waterfront villa, a beautifully restored home, or a rustic cottage, Anna Maria Island has it all. There is a home in the town of Anna Maria, itself, or in Holmes Beach or Bradenton Beach that's perfect for you.

I invite you to learn all about the waterfront and other homes available on Anna Maria Island. For more immediate assistance, call me directly at 941-228-2321 or at my Sarasota REMAX Office at 941-360-7777. I look forward to being of assistance to you.

Waterlefe Golf and River Club in Bradenton Florida

Fine Homes, Championship Golf and a Marina
Waterlefe Golf and River Club, located in Bradenton, Florida along the Manatee River is a community of fine homes and an 18-hole championship golf course on over 630 acres of magnificent landscaping and amenities which blend into the natural waterside area.

The golf course winds through conservation areas and along the scenic Manatee River. While the golf course is a sight to behold, the River Club features fine dining, banquet facilities, a fitness room, swimming pool, tiki bar and The Pointe family gathering area, a relaxing retreat for residents to enjoy a picnic or a stroll through conservation areas and along the scenic Manatee River.

If you are a boating enthusiast, you should check out the 59 boat marina and private boat docks lining the Manatee River. Another 14 congregate docks are convenient for those who prefer to keep their boats at their home.

What Canadian Buyers Need to Know About Florida Real Estate

I've recently written an article covering several things that Canadian citizens considering buying a second home in Florida should be aware of to make the most advantageous investment.

You may access that information on my website at
What Canadian Buyers Need to Know About Florida Real Estate.

After reading the article if you have questions or would like information on attractively priced homes and condos in the Sarasota Bradenton Florida area, call me at 941-228-2321 or E-Mail Me. I'd be happy to be of assistance.

A Home Seller Can Assist In Your Home Purchase

If you are ready now to take the step of buying a home, but don't have all the upfront cash you think you'd need, there are several ways in which a home seller can assist you in buying his home. A competent Realtor can review all of your options but here are a few examples.

FHA MORTGAGE WITH SELLER FINANCED CLOSING COSTS
FHA has a mandate to help people buy homes so they make it easier for a buyer to qualify for a loan with more lenient income to debt ratios and credit scores. Sellers are also allowed to contribute up to 6% toward the Buyers closing costs. FHA mortgages requiring as little as 3.5% of the purchase price as down payment have been available for years. Your Realtor, working with the home seller and an FHA-approved mortgage provider, can structure your loan so that the seller pays all or nearly all of your closing costs, other than the 3,5% down payment. In the current market environment, many home sellers are willing to participate in this type of arrangement to get their home sold.


BUY DOWNS – There are many variations of the "Buy Downs," Some are permanent, where the interest rate is reduced over the entire life of the loan. Others are more temporary, allowing you to keep the interest rate, and therefore your monthly payment, low for the first 1 -3 years of the loan. The most popular is what's known as a 3-2-1 Buy Down. Here your rate is 3% below the market interest rate in the first year, 2% in the second year, and 1% below in the third year. This allows you to grow into your loan payments over 3 years. If your expectation is that your family income will grow over that period by enough to cover the eventual cost, this may be an option for you. "Buying down" your first 3 years of loan payments in this manner will cost the seller roughly 4.5% of the loan amount. As an example, on a $225,000 mortgage the fixed rate payment at 6.5% would be $1,422.15. Using a 3-2-1- buy down, the first year payment would be $1,010.35, the second year is $1,140.04, the third year is $1,277.53, and in the remaining 27 years, $1,422.15. That "buy down" of the first three years payments saved the buyer over $10,000 in mortgage payments.

SELLER FINANCING – Less frequently, but occasionally, there are sellers who own their home outright (no mortgage on the property) who will agree to assist you by holding your mortgage. In this case, you do not have to qualify through the normal bank financing route. In effect the seller, instead of a bank or other mortgage company, becomes your mortgage provider. Such a mortgage can be written with essentially any terms and conditions that you and the seller agree upon ranging from financing 100% of the purchase price to requiring a minimal or larger down payment, with or without a "balloon payment" at some point in the future, and for a term of 10, 15, 25 or 30 years.

If the home seller is motivated, and there are no other offers for the home, he may be willing to work out a deal. However, if the seller is unfamiliar with seller financing, your Realtor can show them what is involved and how the process works.

Such private lenders frequently charge a higher interest rate and may want to use this approach to get the highest possible price for their property so you need to deal with a competent Realtor who can negotiate your way through this option for you. But, if cash on hand is the problem you are dealing, this approach may be an option.

The point of this discussion is this. If you have a reasonably decent credit rating FICO score and are ready to buy your first home, don't be scared off because you don't think you have enough saved up yet. The price of homes and the interest rates available are as low right now as they have been in a long time. Meet and discuss your options with a competent Realtor like Brian Ward, Sarasota Realtor. You may be closer to your dream of home ownership than you have dared to hope.

Bradenton Florida Homes Are More Affordable than Ever

While existing home sales in other parts of the country have fallen for more than 6 months, the Bradenton - Sarasota real estate market was the fourth highest selling market in Florida.

Home sales for January, 2009 rose by 4% over the same month in 2008 in part because of a reduction in the median price of homes in our market. The median price in this market has fallen to $144,800 from $246,300 a year ago, the lowest it has been since November, 2001.

The decrease in home prices has meant that home ownership has once again become affordable for the average family and thus more families, young and older, are beginning to look at homes in the Bradenton Florida area. There are currently about 2,650 existing homes for sale and another 1,800 homes working their way through foreclosure in Bradenton so there are plenty of homes to consider.

Once people start looking at homes here, they also learn something else very appealing. Mortgage interest rates are at all-time lows. QuickenLoans.com is currently quoting a 30-year fixed rate mortgage at 4.75% (APR 4.967%) and a 15-year fixed rate mortgage at 4.25% (APR 4.622%).

For those with more limited down payment funds, an FHA Express 30-year fixed rate mortgage can be had for 5.00% (APR 5.185%). With an FHA Express loan, your down payment can be as low as 3.5% of the price of the home and first-time buyers, defined as anyone who has not owned a home in the past 3 years, are eligible for an income tax credit of up to $8000.

If you are a young family that has been wishing homes in the Bradenton Florida area would become more affordable so you could bring the pleasures and benefits of home ownership to your family, it's time to start looking.

If you are a senior looking for a warmer clime in which to retire, or maybe just a seasonal golf course or waterfront home or condo to escape the harsh northern winters, Bradenton Florida may be the right place and this may be the right time to make your move to the Florida SunCoast.

If you would call me at 941-228-2321 or e-mail me at brianward@remax.net, it would be my pleasure to be of service to you by either just answering your questions or showing you the many fine home and condo values available here. You may also want to visit my Sarasota Bradenton real estate website for information on the many golf course and waterfront communities here, all of which offer the delightful Florida SunCoast lifestyle.