inventory

Short Sales Suck? Not So.

Mario AvalosLeave a comment

Short selling a property in today’s market is a whole different ball game than what it used to be a year go or so. For the better. A combination of a dried-up-inventory-market and quicker negotiation turn-around is making short sales (aka: underwater homes) that much more attractive.

Back in the day it was normal to work with a buyer’s offer without collecting earnest money upon execution of contract. The bad part about this old way to handling a short sale was that 6 months down the road, once a short sale was approved, most buyers would go MIA (missing in action). This created a mess in terms of having to re-approve the short sale with a new buyer’s name often delaying the process another two or three months.

Now that inventory is dried up and short sale departments are on the ball about getting short sales approved, they are a commodity. Considering all the bidding wars and multiple offer situations that exist in well priced properties, it can be somewhat emotionally complicated to buy an REO making short sales a good option to go after assuming a buyer does not need a home within the next 6 months to a year. Because of this, demanding (as part of the negotiation process) buyer-earnest money upon execution of a contract is a must…and buyers will wait.

If a buyer does not want to put money up front, move on to the next. And the next. And the next. Until a buyer is found that will stick with you until the short sale is approved. It’s a seller’s market out there, even if your upside down.

Prices Up. Show Me The Money!

Image Mario AvalosLeave a comment

budildings in kendall

A combination of almost no available inventory due to sellers holding on to the fence and foreclosed homes not hitting the market at expected rates is creating a nice upward price-ride for home sellers. Price a property 5% to 10% above fair market value based on sold comparable during last 6 months and it will sell. Obviously, choosing the comps are key to determining the correct floor to set the price. So…if there no inventory, buyers are getting loans and have the cash to close them…where’s the bump in the road?  Appraisals.

Appraisals continue to be the itch in a healing wound. If they was only a science to calculating price across the board, life would rock. But it’s not a science. Unfortunately its an art. Yes…Zillow is good at getting close to giving an idea of what is a house is worth, but not great. Mind you…I am a fan of them. But this is not about Zillow or the appraisers. This is about an industry that is picking up at a pace no one ever saw coming.

Critics. Say what you want. This is a phase. This is temporary. Who cares. Even if it is. Its a step int the right direction. Its positive news. And we will take it any day of the week. Based on numbers, I don’t think this is temporary. At least not in Miami Dade County considering that at this point in time there is only a 4-month supply of inventory across single family homes, townhouses and condos. Yes. Condos. I know. I can’t believe it either. Don’t believe me? Put you property for sale at the right price (just for cracks and giggles), and you will see offers (plural) lining out the door. And that goes for ugly homes too.