SHORT SALE: Well in a nutshell, the only thing short about a short sale is the amount of money the Bank ends up with for the sale of the property.
What happens is that a very unfortunate homeowner, who is unable to pay their Mortgage payment and is at least 3 months late with payments, or has been informed from the bank that they are being foreclosed upon or the homeowner knows it to be inevitable so they call their Realtor and ask for help selling the property. They decide upon a price that will bring a buyer which may not even be close to what is actually owed on the property. The Seller/Owner is trying to get the most possible. The buyers begin to call and make their offers and they are all presented to the Seller/Owner but they also need to be presented to the Bank for approval and the bank then appoints a person called a Negotiator who speaks to the bank for the Seller/Owner and the Realtor to have these offers looked at. It could take up to a month to even get a Negotiator and then the process could take up to 3 or 4 more months to get an answer on the many offers as they are presented. Finally the bank approves an amount and then one of the offers is Countered or Accepted at which time the clock begins to tick on the Normal 30 to 45 day Loan process Contract to Close Timeline. So as you can see a Short Sale could take up to 6 months from the time an offer is presented to when you close, if your’s is the offer accepted. BANK OWNED: This simply means what is says. The Bank Owns the property and your offer is responded to within 2 to 5 business days of being submitted. If there has been more than one offer submitted within the time of your offer being presented the Bank often times will have the Listing Agent tell all the agents to the buyers that they want your Highest and Best offer. Basically this means that all negotiations will be ended with everyone getting ONE LAST CHANCE to put an offer in. You can increase your offer at that time but ONCE AND ONLY ONCE at which point the Bank will review ALL the offers and choose the ONE that is the Highest and Best Offer. This can be difficult because there is no way of knowing how high to go. If you are unsure it is best to lean on the EXPERIENCED REALTOR. They can either make the deal happen for your or you will loose the deal. Obviously anything can happen and often times does and if you lose the bid you have to move on and try again with another home but one thing is for sure…..this is a very volatile market and if you are serious about a Bank Owned Property be ready to offer as much as $5,000 above the List price. I have had great success with this strategy and some VERY happy homeowners. BUT if you are the only offer on the table then of course, offer up to $10,000 below list, this way you can negotiate and possible get a good deal. The KEY is to know the market and be using a Realtor who KNOWS the market. Hopefully this can help you in your search for the perfect home.
Selling a house can be a bit like having a baby -- everyone gives you advice that may or may not be true for you. Here are ten myths uncovered:
1. Myth: You should always price your home high and gradually lower it if it doesn’t sell.
Truth: Pricing too high can be as bad as pricing too low.
You may think by listing high you can always accept a lower offer, but if you do, you'll miss the buyers looking in the price range where your home should be. Offers may not even come in, because interested buyers are scared off by the price and won't bother to look. By the time the listing price is corrected, you will have lost a large group of potential buyers. Your real estate agent will offer you a comparable market analysis. This is a document that compares your home to other similar homes in your area, with the goal of helping you to accurately assess your home's true market value.
2. Myth: Minor repairs can wait until later. There are more important things to be done.
Truth: Minor repairs make your house more marketable, allowing you to maximize your return (or minimize loss) on the sale.
By and large, buyers are looking for an inviting home in move-in condition. Buyers who are willing to tackle the repairs after moving in automatically subtract the cost of needed fix-ups from the price they offer. You save nothing by putting off these items, and you may likely slow the sale of your home.
3. Myth: Once potential buyers see the inside of your home, curb appeal won't matter.
Truth: Buyers probably won't make it to the inside of the home if the outside of your home does not appeal to them.10 Biggest Selling Myths Uncovered
Many buyers drive by a home before deciding whether or not to look inside. Your home's exterior will have less than a minute to make a good first impression. Spruce up the lawn, trim shrubs and trees, and weed the garden. Clear the walkways and driveways of leaves and other debris. Repair gutters and eaves, touch up the exterior paint and repair or resurface cracked driveways and sidewalks. Place potted flowers out front, hang a wreath on the door and put out a pleasing welcome mat for added curb appeal.
4. Myth: Once potential buyers fall in love with the exterior look of your home, you put interior improvements on the back burner.
Truth: Buyers have no qualms about walking right out the front door within 60 seconds if the house doesn't look like it could be theirs.
Remember that most buyers are looking for an inviting home in move-in condition. Spending a few thousand dollars for the right work on your home before you sell it, usually translates into a higher selling price and shorter marketing time. Your real estate agent will consult with you about the repairs and replacements that will benefit you most.
5. Myth: Your home must be every homebuyer's dream home.
Truth: If you get carried away with repairs and replacements to your home, you may end up over-improving the house.
At some point, improvements that you make to your home can exceed what is customary for comparable homes in your area. For instance, there may not be another swimming pool in your entire subdivision. After spending $20,000 to install an in-ground swimming pool that you hope will lure buyers, you may find that it only raises the market value of your home by $10,000 because there are no other comparable properties to support the market value of the pool. As a rule of thumb, if your improvements push your home's value higher than 20% above average neighboring home values, don't expect to recoup the entire amount of improvements. Your real estate agent can advise you as to the scope of projects you might consider in preparing your house for sale.
6. Myth: Buyers are never swayed by sellers that offer creative financing options.
Truth: By offering flexibility in financing options, you may lure more prospective buyers.
You might consider offering seller financing, paying some of the buyer's closing costs, including a one-year home warranty, or other buyer incentives. Your real estate agent, who has professional knowledge of local market activity, can help you decide what incentives, if any, to offer.
7. Myth: You are better off selling your home on your own, thus saving the commission you would have paid to a real estate agent.
Truth: Statistically, many sellers who attempt to sell their homes on their own cannot complete the sale without the service of a professional real estate agent.
Sellers who sell their home without a real estate agent often net less from the sale than sellers who use one. You visit a doctor when you’re sick and take your car to a mechanic when it needs repairs. It makes sense to contact a real estate professional when you are preparing to sell your biggest asset!
The presence of homeowners during a viewing can make buyers feel like they are intruding. They need to be able to visualize your house as their home, which can be difficult to do when they are acutely aware that it is still your home. Your real estate agent will be happy to look out for your home during open houses or showings.
9. Myth: Successful sellers insist that the terms of the sale happen their way or no way.
Truth: If you approach the sale of your home as the buyer’s adversary, you risk losing a perfectly solid buyer for no good reason.
Both you and the buyer have the same goal: for you to sell your home and for the buyer to buy it. Work with your real estate agent to approach negotiations positively and with a win-win frame of mind.
10. Myth: When you receive an offer, you should make the buyer wait. This gives you a better negotiating position.
Truth: You should reply immediately to an offer!
When a buyer makes an offer, that buyer is, at that moment in time, ready to buy your home. Moods can change, and you don't want to lose the sale because you stalled in replying. Maria Parker Direct: 407-929-6224 Fax: 407-479-3814
REAL ESTATE GOD'S WAY LLC 3525 Calloway Dr Orlando Fl 32810
E-Mail: MariaParker@REGW.org
Office Phone: 407-294-0963 ext 1 Office Fax: 407-479-3814 8. Myth: Good sellers should be available to guide prospective buyers through the home, giving the whole process a more personal touch.
Truth: Prospective buyers will feel more like the house could be theirs if the current owners are not there.
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