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.
Tuesday, June 30, 2009
Monday, June 15, 2009
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.
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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.
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