Real Estate agent: documents you need for your short sales.

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First of all, understand the short sales.

A short sale is a transaction that happens when a homeowner is owning more money on his/her home than what it is worth in today’s Real Estate market, and when the bank or the lender is willing to take less than what the homeowner owes.
Most of the time, that bank or lender will be able to collect more money with a short sale than if the homeowner goes into bankruptcy or foreclosure. That’s why they will be listening to short sales under certain circumstances.
For the homeowner, the short sale transaction is a better situation than going bankrupt or foreclosed. They credit will be hurt for 2 or 3 years instead of the 7+ years in a foreclosure situation.

Secondly, here are a list of documents you will need in order to prepare the short sale transaction with the bank representative:


  • ~ Signed letter of authorization from seller authorizing you to negotiate with the lender on their behalf.
  • ~ Letter of facts about the property. Everything that is wrong with the property and why it is impossible to sell it at a higher price.
  • ~ Current Market Analysis. Highlight comparable sales that reflect the lower value.
  • ~ Photographs. Remember, the photographs aren’t to highlight a charming house. Photograph evidence of damage, bad location, etc…
  • ~ Evidence of all showings and feedback. Explain to lender results and conversations you’ve had while trying to sell the property.
  • ~ Copy of listing contract/MLS Listing/MLS history.
  • ~ Current “AS IS” CMA.
  • ~ Copy of purchase contract if you have one.
  • ~ Preliminary HUD
  • ~ Make sure the seller has a detailed, tear jerking letter of hardship. See an example here
  • ~ Sales and services Quotes

Also, insert copies of the following if any:
1. Code Violations
2. Fines
3. Hearing Information regarding the maintenance of the property
4. Evidence of lawsuits the City is filing against lenders
5. Evidence of pending litigation or changes in the law
6. Insert Tenant / Landlord provisions if it helps your case
7. Evidence of the town / city’s enforcement of fines against other banks
8. Latent Material Defect
9. Sexual offenders and predators


    -Two years tax returns and W-2′s.
    -Three months bank statements.
    -Pay stubs for last 30 days.
    -Detailed monthly budget.
    -All mortgages with account numbers.
    -Copy of the deed.
    -Copy of the note and/or mortgage
    -Pending bankruptcy, or other action/judgment or lis pendens.
    -Tear jerking hardship letter. See an example here

Buyers generally get a lot more house for their money in a short sale situation, because these properties are usually very competitively priced in order for the sellers to unload them before they end up in foreclosure. It’s a very good situation for them. The only downside I see is often the multiple offers situation for those short sale properties. But there are a lot of short sale properties available in the Cape Coral Florida market than in other parts of the country, so this area is the place to buy!.

So, if you are thinking of buying a short sale, here are 3 tips:

1 – Find a Realtor with short sales experience. There are many rigorous short sales and foreclosure training programs available to real estate agents, including the Certified Distressed Property Expert (CDPE) and the Short Sales and Foreclosures Resource Certification (SFR). If you wish to purchase a short sale property in Cape Coral, Florida, or anywhere else for that matter, you will greatly increase your chances of getting your deal to closing if your agent is experienced and comfortable with short sales….either through a short sales certification program, or through hard knocks experience in the field.

2 – Get pre-approved. No short sale offer will be considered without a pre-approval or a proof of funds letter. If you have not yet been pre-approved by a local lender and are not sure who to call, your real estate agent is a good source of referrals. The pre-qualification process generally takes less than 30 minutes, and can be done over the phone, however, a pre-approval takes longer but is better than a pre-qualification. Make sure you work with a local lender – today’s wild & woolly finance environment means that you greatly increase your chances of closing a deal if you use a local lender with a good reputation. All short sale offers must be submitted with a pre-approval letter, or with a proof of funds, as bank’s statements, in the case of a cash transaction.

3) Submit your highest and best offer the first time around! Lenders generally do not counteroffer….they will either say “Yes” or “No”. So if you are going to go through the process of waiting 60 days or more to hear back from the lender, you will greatly increase your chances of hearing that “Yes!” if you submit a good, solid offer with no contingencies.

Once you submit an offer that is approved by the seller, the seller has to submit your offer to their lender to see if the lender will accept the offer as well….remember, in a short sale situation the lender is agreeing to accept less than what the homeowner owes on the mortgage…..and the lender is going to do whatever they can to minimize the amount of that loss to their bottom line. Parting with their profits is not something that comes easy to lenders… it takes awhile to find out if they are willing to take the level of financial beating that is inherent in the amount you are offering. Sometimes the wait can be up to 90 days….sometimes much more (the amount of the wait often depends upon which lender holds the paper).

Look at the frustrating wait time as the price you pay for getting the chance to get a home you might not otherwise be able to afford.

If you want to receive listing from banks, this program will give tremendous help to get in the game as well.

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Comments (0) Dec 31 2009

Investors: what you should do during a BPO.

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Once you have sent your offer of 55% of the lowest average comparable and deducting for any repairs to the bank, the bank is going to hire a third party company to have a look at the property that is being discounted or what it is called a short sale transaction.

The following steps are what you have to consider to have a successful outcome from that third party that is doing the BPO/Appraisal.

Make yourself the contact person for the process.
When the third party company that is calling you to schedule an appointment, you want to make sure that the person on the phone knows the fact that this property is been foreclosed and do they know that it has a contract to be sold. Most of the people just want to come out and take pictures and run to the next one. They are in it to get as many done in a day as possible because they are getting paid minimal money to do this task, most of them being Real Estate agent that are not producing enough for a living. Build a rapport with them right out of the door and ask them a few questions while you have them on the phone. For examples:

Do you know that the bank is looking for a quick sale value on this home?

How long have you been doing BPO/Appraisals?
As you are listening, you are on a mission to gain information. You will be able to use this information to give you more details on how to proceed with this particular person before meeting them at the property.

How many of these inspections are you doing a day?
How many have you done in the last month/last week? And so on…

What is the name of your company/Phone #/Fax #/cell phone#?
So you can contact them ahead of time to confirm your meeting when set.
I also call some of them time to time for tips about new foreclosures.

If it is a Realtor, ask if they do a lot of REO’s.
This is a bank foreclosed home that Realtor’s like to list after they have been foreclosed on. You want to be sure on this because it will help you know how to proceed in handling the person in the field.

If it is an appraisal you are going to
You want to know this as well because an appraisal will be a little longer than a BPO. They are going to measure the property just like they did when it was purchased. They will do the size of bedrooms, how many rooms, all interior pictures, front and back pictures of the house and more…

Compiling all the right paperwork to take to the meeting at the house consist of the following:

A folder that has all information about the property
Write in big “Foreclosure” and “Working with banks and sellers to liquidate properties” on the front of the folder.

A copy of the purchase and sale agreement
You sent it to the loss mitigation department. It should be completed and executed in a time frame of 30 days or less.

A hardship letter
The hardship letter we were talking about here from the seller explaining why they are losing their home.

A repair estimate of the house
All documents supporting the value that is being offered. Made you homework here. You’ll get better at it with experience though.

Low comparable from the property
Get you comps from Real Estate agents, MLS and so on. Get the lowest 3 similar LISTED and 3 SOLD properties. The keyword is lowest here!

Articles from newspaper or online articles
Try to get newspaper articles explaining the down turn of the market or any problem of the area where the property is located. Check online local newspaper as well.

Copy of the building sketch of the property
If it is an appraisal, supply the appraiser with a copy of the building sketch of the property. This will put a smile on the appraiser face because it helps them get their job done sooner. This move will instantly put yourself as knowledgeable and therefore, your numbers as much more accurate, even if you may be a bit low :-)

The day when you are meeting them at the property
Make sure you call and confirm they are going to be on time. Be professional.

Arrive early so you have a chance to get a feel of the house
Drive by the neighborhood and look for any signs in yards. Take them down if any and remove any flyer/advertising you may have at the house. You do not want them to know what you are marketing it for. Look around the house for any new damages or negatives to point out.

When the agent gets there
DO NOT HAND them the package you have. Lay it down somewhere visible in the house (kitchen counter or on bar). Start building a rapport with them. Have a conversation about anything, something in common (have a quick look at his/her car bumper sticker. You most probably see something he/she like to talk about: pets, football team, etc…). Ask how they are doing and get a little personal.

Do not start bashing the house
As if you want a low value, it is important though that you don’t bash the property. Let them in and walk the house showing them around from behind them. That will let you read their body language. Do not get up in their face. Be nice and have a sense of humor about the meeting and that you two are in this together.

The Big Question!!
When the agent/appraiser asks who you are in this process, whenever this comes up, either on the phone in the beginning or on the way there when you are confirming the appointment, DO NOT LET THEM KNOW YOU ARE AN INVESTOR. You are just the person meeting them there to show them the house. Minimize yourself. If they ask you if you are the listing agent or the Realtor® and you are not, let them know that our company works with the seller and the bank to liquidate the property. If you are a Realtor® then answer yes I am a Realtor® but working to help the seller.

What should I wear to this meeting?
Try not to over dress or look like you are better, smarter or know more than they do. Play at their level or below. Allow them to be in control or at least think they are in control (better results). Ask them if there is anything else that they need. Include a couple of newbie’s questions about their field. Leave an impression that you know he/she is the professional here.

Getting the package in their hand.
Talk a little about the market and show them things that need repair along the way. However, be helpful not forceful. When you pass by the package pick it up and let them know you have a copy anyway. Inform them that it contains info like comps, the current purchase agreement, etc… You don’t have to tell them everything in it because they can see it for themselves. You want them to ask you for it. Let it be their idea of getting it instead of it seeming like you are forcing it in their face, you must take this type of approach.

What do you think of the value?
After the meeting, hint around about the value. “What do you think the value will come in at?” “Ballpark figure”. Come across with the seller needs to sell attitude rather than they want to sell. If the agent/appraiser will tell, that is okay.

Can I follow up with you?
Have either yourself or someone else follow up with them 24 hours after the value was done. Thank them for coming out, be polite and ask them if they have completed the value and sent it in to the bank.

Calling 24 hours later.
Start out asking them how it is going. Then ask them if they have completed any more inspections since the one they did with you. By this time you should have an idea of how well they are going to respond. Just ask what they thought the value came in at and did the value come in around the contract price.

After that, call the bank and ask if they have received the value and can they accept the offer that you have submitted. If not, ask them to call you back with the approval as soon as they get it.

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Comments (1) Dec 27 2009

Short sales documents

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There are a significant number of short sales in the Cape Coral area. And I see also a significant number or Real Estate agent that have a false idea of what is a short sale. A short sale is a Real Estate transaction where a homeowner is selling his/her property. It is NOT the lender who is selling it. The lender just takes a loss. If you are involved in a short sale transaction, here are the documents needed:

Purchase and sale agreement.
This is the contract, the accepted offer. This document shows that an owner is willing to transfer ownership of the property to a buyer, under a specific set of conditions and/or terms. The purchase and sale agreement needs to be well-executed. To be legally binding, it must be signed by all who have their name on the deed.

Hardship Letter.
The hardship letter is an important document written by a homeowner to his/her lender, explaining the reasons for being unable to continue paying the mortgage. To be effective, it must state the homeowner’s situation, show concern, and demonstrate that the homeowner is taking action for the problem to be resolved. It is even better if this letter is hand written and not very long.

Homeowner’s financial statement.
This is a document presenting all income, assets and liabilities. The homeowner and all co-borrowers must be included on this worksheet.

Latest two bank statements.
If the homeowner has more than one account, all the statements must be presented.

Latest two pay stubs if any.
If the homeowner has more than one job, all the stubs must be shown. Unemployed homeowners must present the latest available. Self-employed individuals can provide a profit and loss report.

Last two years tax returns.
Sometimes, homeowners in a foreclosure situation have missed filing their taxes. In this case, present the latest available and write a personal note to the lender explaining the situation very clearly.

Last two years W-2s.
Employers provide this to employees and the IRS every year. Provide the latest available.

In addition, if relevant and available, you may include the following list of documents. Those may be useful as well. In some instances, they are absolutely necessary.

    * Death certificate
    * Divorce decree
    * Incarceration decree
    * Bankruptcy discharge letter
    * Relief from stay
    * Proof of disability
    * Insurance claims
    * Police reports
    * Court approvals
    * Anything that may be useful

Additional Documents.
Once in contact with the lender, these two additional documents will be needed.

Listing agreement.
Lenders want to see if the property is listed or has been listed by an agent. They like to see that homeowners are serious about selling and did everything in their power to sell it, or to be out of their problem. This is also a must for real estate agent commission allowance.

This is the RESPA compliant settlement net sheet. RESPA stands for Real Estate Settlement Provisions Act. It shows who gets paid what, and how much. This document shows the main thing the lender wants to know: How much the lender will get. You can get in touch with you favorite title company to have it ready as a good faith estimate.

Those are the documents needed for a short sale to be negotiated and it is important for Real Estate agent to be ready right away. That will help you, your sellers and the buyer’s agents. The more complete, the better. The degree of what is acceptable varies from lender to lender. Some lenders are more demanding than others. Have all these documents. The short sale will go a lot smoother.

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Comments (1) Dec 26 2009

Virtual staging anyone?

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As we all may know, there are a high percentage of foreclosure and vacant homes on the Cape Coral market these days. And I always come across buyers who have a hard time to like enough a vacant house to make an offer on it. Most of them do not have the vision of a particular property’s potential.

I know a solution of it is staging. This is becoming popular and well spread by several TV shows about this option. However, if staging a vacant house may provide a good return of the investment, what about low priced homes? It makes no sense to spend $3,000-$4,000 for staging a home that will bring $3,000-$4,000 of commission.

That’s how I came across a staging solution for those property, but in a virtual way!
Virtual Staging Solutions is a company selling a software where you just have to upload your listing’s pictures and ad the furniture yourself. Therefore, you can show the before and after pictures, giving a better idea of the property’s potential to any buyers. It can be viewed online or you can put it on a CD as well.
You can send them your pictures and they will stage them within 3 -5 business days.
They have a slideshow on their website where you can see an example of virtual staging. The software cost $197 as of today. Think about it. You can use it over and over and will most probably get your money back quite fast. I use this software myself and I’m very pleased with it but I’m not selling it in any way. I’m not the owner nor I work there. I’m only a Real Estate agent.

So get your vacant listings virtually staged and bring your laptop with you!
Visit their website for more details:

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Comments (1) Dec 25 2009

Identify a fake seller!

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I ended up canceling another escrow yesterday because it was obvious that my clients and I were in front of a fake seller. I’m getting better at how to identify fake sellers. Missing deadlines contract, non-cooperative, etc…give you sign of what I call fake sellers. So let me share with you some tips on how to spot fake sellers. This may be helpful before going in escrow.

The not motivated sellers:
A seller is always willing to talk, at least through his/her Real Estate agent. When you have no answer or stuck seller – you know, those seller whom will not touch anything, price or terms -, you can easily identify a not motivated seller. You are going right into trouble. You need to identify the motivation in your deal: job transfer, baby on the way, wedding, pre-foreclosure, etc…

The unrealistic sellers:
The price is almost the only common reason why a property doesn’t sell. So it happens that sellers sometimes just test the market. He/she’s wasting everybody’s time. They’re not real sellers. Real sellers may initially overprice their home but very quickly (generally within 5 days) bring their price back to the realistic market value. So try to spot that and move on…

The don’t have timelines sellers:
Fake sellers don’t have a timeline. If there’s a job transfer they have a timeline, if a school is starting they have a timeline, if they’re closing escrow on their next home, they have a timeline. But, if you’re working with a seller without a timeline, you may not be working with a motivated seller. Timeline is a proof of motivation.
If you heard “my seller has all the time in the world” or “he/she’s not on a hurry to sell”, move on.

The not forthright sellers:
Fake sellers are not forthright. They try to hide things. Real sellers, on the other hand, are extremely forthright. In fact, they are disarmingly candid about the condition of the home, the area that you are buying into, and even the neighbors next door. Listen more than talk. You’ll get the picture almost right away and you will easily understand the sellers’ situation.

The non co-operative sellers:
Fake sellers are non-cooperative as they have no reason to co-operate with you. Real sellers will be co-operative as much as they possibly can. They want the transaction to go smoothly, they want to work with you to solve problems. They have a ‘let’s make things happen’ attitude.
So, if you’re suddenly running into inconsistent behavior, having a lot of surprises, you may be working with a fake seller. Don’t walk away from such transactions, RUN!

With some experience, you will be more than happy to save time and avoid your buyers with bad Real Estate experiences. Good luck!

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Comments (0) Dec 23 2009

New opportunities in a slow market.

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While at the beach last week-end, I carefully watched the news regarding the major lenders like CountryWide and Thornburg Mortgage. There was a very good article about the mortgage issue. Since the change in liquidity for mortgages, there’s an opportunity for savvy investors.

Everyone is talking about all the bargains to be found because of the rising number of foreclosures and the excess inventory. It’s true that sellers are beginning to discount price and bargains are showing up. You can expect even larger discounts within the next 12 to 18 months. But today, I want to talk about another opportunity.

The new opportunity is on the back-end when you sell the property. Since all the lenders are turning off the tap, it’s time you step up and offer financing to qualified buyers. Wait there more…

Don’t make the mistake and think I’m talking about those with C & D credit. There are buyers with great credit scores that are getting turned down because the underwriters are drying up. In addition, the remaining lenders are asking for hefty down payments of 20%.

Attract those with great credit scores and get at least 10% down, take back a note of 80% at 7.5% or higher and then take back a second of 10% at a higher interest rate of 9%+. Of course, factor in the credit score and adjust those rates accordingly.

Buyers will become easier to find and you can upload your properties a little quicker. You will be surprised to find buyers with decent credit scores. So step up and start being the bank. More than ever is there a demand owner financing on the backend.

Because the sub-prime lenders are gone.. I mean really gone. So if you want to fund those with C & D credit, you can find even larger pool of buyers that need financing. So while you are buying the bargains in foreclosure on the front tend develop a system to start funding your buyers to create a cash cow.

You’ll end up with selling properties faster and creating some excellent returns.

Note: Be aware of the federal and state lending regulations when lending directly to consumers.

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Comments (0) Dec 22 2009

Cape Coral flipping properties

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It’s time again! Time to flip properties, especially here in the Cape Coral area where foreclosures have hit badly in the last couple of years. Great finds can be made these days. If you have the will to get involved in the rehab/flipping field, here are 10 tips for you to keep in mind.

1. Do not get emotional about house flipping. It is after all a business. If the numbers do not work, proceed to the next property. Some investors commit the mistake of being too attached to the flip that they sell at a high price and end up holding the flip longer thus reducing profit.

2. First impressions count. Pay attention not just to the inside of the house but the outside as well. You cannot show off all the upgrades done inside the house if potential buyers are turned off by the outside appearance of the house and its surroundings.

3. Personal tastes are a no-no in a flipped property. Your flip needs to be attractive to buyers, not you. You should define who your target buyer is and what is his/her preferences. Color is a vital part of flipping houses. Stick to neutral colors especially when it comes to painting and laying the carpet.

4. Spruce up the kitchens and the bathrooms. They will noticeably increase the price of a house. But be sure that fixtures and appliances match the target price range. If the kitchen and bathrooms look clean, sleek and updated, the house will sell faster and for a higher profit.

5. In house flipping, time is money. After making a detailed list of renovations to be done, come up with a timeline. A timeline is an important way to let contractors know when the next group of workers needs to be in a specific part of the house. One rule of thumb is to work from top to bottom and tackle the big work projects first.

6. Hire a good contractor. You cannot be at the job site all the time. This is where the contractor comes in handy. He can keep a close watch on your time line and also the part of the budget that is his responsibility. He can keep track of problems and readily find solutions. The easiest way to find a good contractor is through referrals.

7. Be ready for paperwork. There are loads of paperwork that accompany house flipping. The most important paperwork you will have to attend to are permits. It takes time to obtain permits so you need to apply for them before work begins. Not having the necessary permits can cause work stoppage and this cost money. Contracts and receipts are doubly important. Be sure to keep them. You also need to obtain insurance coverage not only on the property but the workers as well.
8. Keep track of your progress. Throughout the entire house flipping process, you have to constantly monitor your progress. That way, you will know at any given time where you stand on the project. This will help you keep focused. Time is of the essence in house flipping.

9. Start small or simply, and then work your way up. Your first house flipping project should only entail cosmetic work. You may not get a huge return on your investment but you will surely learn valuable lessons and develop experience.

10. As with any business venture, expect the unexpected. You will certainly encounter something that you simply did not expect. It may be a problem that appears hours before the transfer of ownership. You will almost always run at least a little over budget or hold the flip a little longer than expected.

Go get them or let me help you to find them :-)

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Comments (0) Dec 21 2009

It’s stupid not to buy now!

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Today, the interest rates are still very low but they will rise soon. It’s cyclic. Some potential buyers may never see a chance to buy so cheap again.

Maybe you are very happy in your actual home, or maybe you don’t see yourself doing something else than renting. But if you have the idea to buy a property, the time is now. And if you don’t, I know you will regret it badly later.

As I write this, the average loan rate for a fixed 30 years is about 5% with no points. And it’s a 40 years lowest!! So this may be a once in a lifetime opportunity.

Historically, in 1970, the rate was about 7.25%, then rose to about 10% in 1973-1974 to then settled at about 8.5%-9% until 1976 to rise again at about 10%, which then, as seen as a OK rate by homebuyers.

But from 1977 to early 80′s, the rate climbed to 18%. Some homebuyers still remember those years today for that fact. Later it was always fluctuating between 11% and 9% until around 2000 when we saw a slow drop of the loan rate down to 6%-7%. That’s why 5% is something rare enough to mention these days…

So, what can we learn from the historical trends and numbers?

In the last 30 years, we saw that 6%-7% was the very low and 18% the very high, with an average of around 9%. So 5% can be seen as a golden digit!

The most important is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let’s assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Stay with me now. We are at 5%. It is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $48,000.

Let’s put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $48,000 more per point in interest rate changes between now and the time you decide you are ready to buy.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I’m trying to tell is that if you are planning on being a homeowner now or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

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Comments (0) Dec 15 2009

The Cape Coral’s strong seller’s market

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Last friday, I just got a new listing through the MLS here in Cape Coral.

It is a good looking house in the middle of the city. Priced right and even if the colors are a bit strong, the floor plan was acceptable. Since I’m looking for a home for myself, I passed by the same day alone and brought my wife for a second showing the next day, Saturday.

Cape Coral property for sale

Cape Coral property for sale

Today Monday, I just receive an answer back from my Sunday email about a question I had. The email was not an answer to my question but a solid: “This property is under contract” !

Even if I go through the MLS and react immediately, I still have a hard time to get a property for myself. It remind me the 2002-2005 golden years of Real Estate, when I listed a property, any property, and got a couple of offers the very same day.

Cape Coral, Ft Myers and Lehigh Acres area is, as I type this, in a strong sellers’ market, whatever the medias say…

So, don’t make the same mistake. If you see a property you like, put it under contract immediately, then, go see it and think about to purchase it if it is really for you. Keep that in mind!

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Comments (1) Dec 14 2009

Pricing it right in a Buyer’s market

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You don’t have to be a Real Estate agent to know that market values have been, and probably still are, dropping nationwide. And still, some are creating an upside-down effect whereby the remaining mortgage proves higher than appraisal itself.

But when it’s time for you to go for a listing presentation, when the time comes to pricing out a property, sellers often have an ego when it comes to their own home. Make sure to be prepared and show all evidence you can get about market pricing. Try to let them know to leave their ego at the door. You must present your homework and go from there or leave. Yes, you got that right, l-e-a-v-e. An overpriced property in today’s market has no chance to compete with the foreclosure and short sales environment. Leaving will be the best advice you can give to yourself at that point.

The price is right could not be a truer analogy. A homes market value will be primarily based upon those homes most comparable to yours in square footage, style and age that have sold within the past six months in a 2-5 mile radius of your location. This is what the bank underwriters base their determination on. It’s not that a Realtor® is a moron, it’s not that John Doe down the road sold his house for a heck of a lot more a year ago, it’s an industry standard that makes absolutely no exceptions. Realtors know the industry and this is what you need to teach.

Let sellers understand that buyers today are savvy. They’re on the web, tuned into the news, reading articles. They want to be seduced and their looking for enticements. If a duplicate house is selling on your road for $200,000, then price yours at $195,000 and throw in a cleaning service to sweeten the deal. Many buyers are strapped for cash and offering to pay part, or all of their closing costs will definitely prompt a quicker sale. That another option for sellers that can be the little je-ne-sais-quoi which can bring the signature at the bottom of the purchase contract.

Remember, when the Price Is Right, all parties walk away with a smile on their face. When the price is not right, you’ll get the sellers on your shoulders blaming you for your failures…

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Comments (2) Dec 12 2009

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