Cape Coral Real Estate

And the keyword “normal” is for the word buyer, not for the word market.

We all know that, except in few areas, this country is facing a buyer’s market. OK. We all got that. But what a potential buyer needs to know is a seller is not going to give it away for nothing. And I’m talking about his or her property.

I have a high percentage of my calls coming from buyers looking for owner financing. Fair enough. There are about 6,000-7,000 homes for sale in Lee county. Only 63 owners are considering helping potential buyers with some kind of financing. So when you call me saying that it’s a buyer’s market, you gonna give $3,000 down on this $600,000 mansion and you will accept no balloon and only an interest rate of 4% and the seller is better to accept your offer because it is a buyer’s market…well…it’s not going to happen.

If you are looking for some kind of owner financing, it’s more likely because you are not qualified for a bank loan. While an owner willing to provide some kind of terms is most likely to have a free and clear property.

So, in the owner financing fields, it’s always a strong seller’s market.

Comments (0) Jun 24 2011

If you are a Real Estate agent, you will most likely be confronted to short sales soon or later, especially if you are in Florida. Here are some tips to master those short sales.

First start off listing the property right in the mid range of all the other comps and current listings in the neighborhood. If the comps and current listings range from $150K – $180K for example, then you want to
start off listing your property around $165K.

Secondly, you reduce the list price by about 3% each week until you receive an offer on the property.
So in this example you would drop the list price by about $5K each week until you received a solid offer.

Remember, when you first list the property you will also be submitting a COMPLETED Short Sale packet to the lender (with a lowball offer)… Once you do this the lender will order a BPO which will usually take 3-4 weeks to complete.

So in this example, by the third week of lowering your list price you would be the lowest priced property in the area, which would also be about the same time that the BPO would be completed by the lender.

This means that when you do receive a solid offer on the property, you will be able to get an answer from the lender very quickly, now that the BPO has already been done.

Another possibility in this situation is that you drop the list price from $165K to $160K after the first week and you then get an offer on the property… Now you can leave the list price at $160K while you work on getting this very strong offer approved by the lender…

Remember, if you started listing it to low, you would never have received an offer this high…
When you use this strategy you can also show the lender your activity report on the property. You can show them that you made an attempt to get them the highest possible offer.

Here is why this is important…

The lender knows if they ever had to Foreclose on the property, they would have to pay attorney fees, auctions fees, and the process may take more than 6 months.

And that’s not all…

After all that time and money, they would have to list the property as an REO and do the same thing that you just did! List the property and then keep dropping the price until they get an offer.

Here is the key…

By showing the lender that you have already done exactly what they would have to do, and that you can save them 6 months of expenses, it will make your offer much more likely to get approved. If you can get a dollar number for those expenses, the bank will see you know what you talking about and will most likely follow you advice, and even gives you more listings.

This is the only way to make sure your Short Sales get completed in a timely manner and you don’t waste your valuable time with listings that sit on the market with no activity for months.

Comments (0) Dec 01 2009