HEATHROW LAKE MARY SANFORD LONGWOOD FL AREA

HOME FORECLOSURE DISCOUNTS ARE FADING FAST

Just a few years ago the best deals in town by far were bank-owned and short sale properties. Fast forward to recent times – not so much.  Discounts averaged some 30% previously – Today they are down to 12% and in some cases right at market.  Why?

The inventory of bank owned and short sales have continued to decline along with the overall inventory.  Thus, it has simply become supply and demand.  In addition, many banks have begun to address and – most importantly – pay for replacing carpet, paint and fixtures.  What was once a house stripped of many essentials or trashed beyond most buyers’ ability to see past – are now being rectified by bank-owners in order to move the property quickly and usually for more than the cost of the repairs.

The decrease in inventory and the stepped-up efforts of banks to move properties quickly has created situations of multiple offers for a single property.

So – how do you compete when making an offer on a house you really want?

First, cash is still king.  Cash offers still tend to get the most attention. If you can swing a cash offer - and then perhaps finance later, you should consider it. 

However, if you are like most of us who will need financing keep in mind that financing offers will vary in degree of strength.  The larger the down payment – the stronger the offer and the more likely it will rise to the top of the heap.  Providing both a prequalification letter from your lender AND proof – like an online bank statement (with the account number removed) - that you have the down payment should be included with your offer.

Next – be in the ballpark on price.  Your agent should be able to give you comparable sales in the area and an idea of what the house is really worth. The bank-owner is going to have done the same thing prior to putting it up for sale and a short sale lender will do this as part of the approval process. Keep in mind lowball offers rarely win in a multiple bid situation – and – is it really a “deal” if you don’t get the house at all?  You should put your best offer in first because you can’t always count on getting another chance.   A reality check is to figure out what you are really saving.  $5,000 at today’s low rates on a 30 year fixed mortgage will increase your payment by about $24 a month – less than the cost of a single dinner out.

One final “price sanity check” on your offer is to think about the highest you’d be willing to offer.  Would you regret losing the house if you put in your lower offer only to find out your highest offer would have gotten you that house?

If you are looking to buy a home or sell your home – PLEASE CONTACT US!

To search for homes in the Lake Mary Heathrow Sanford Longwood Florida area click here .

FLORIDA HOMEBUYING - GET YOUR PRIORITIES IN ORDER! Buying a Home in Central, Orlando or Lake Mary Florida 

With so many great home deals today in Florida – it is easy to get lost trying to hunt down the one that is right for you. 

“Location Location Location” has always been the real estate adage – but when it comes to residential real estate it should be first “Prioritize Prioritize Prioritize” .   

The first “Prioritize” is to put needs over wants.  Make a formal list when quietly discussing and thinking this through.  It will serve as a reminder as to priorities when objective thought was the driving force rather than the caught-up-in-the-moment emotion of the buying cycle. 

Generally the most immediate need is the price point.   Convention has stated heretofore that one should buy as much house as one can afford with the idea that salaries increase over time with establishing a successful career path.   However, at New Southern Properties, we believe you should only purchase what you need – the balance can be saved or used for other purposes.  Being strapped to a house payment can seriously limit your options in a variety of ways such as job opportunities and career changes, deferred maintenance problems, personal expenditures such as vacations as well as emergency expenditures that may arise due to long term illness or layoffs. 

Other priority considerations should involve location, amenities and valuation (which does differ from price point).    Location priorities must consider both macro-location and micro-locations.   Macro refers to the overall neighborhood location within the area.  These would include proximity to food, goods and services shopping, schools, workplace and entertainment.   The other location consideration is that which is within the neighborhood.  These include being waterfront, on a corner lot, or backing to conservation areas.

Amenities can involve a wide variety of things.   Community pools, golf courses, tennis courts, bike and jogging trails, clubs and clubhouses as well as parks, fields and basketball or volleyball courts are some of the considerations.  Remember that these amenities have to be maintained in some fashion.  If they are within the neighborhood it may be Association fees that pay for it.  If not, it may be the county taxes.   Also keep in mind that amenities can be a great selling feature later on – more often than not – buyers want some type of amenities. 

Finally, last but in no way least, is valuation.  Valuation differs from price in that it involves considering the “bang for the buck” rather than just the price point at which you need to be under. For example:  Is the waterfront lot worth the $50,000 lot premium versus the home across the street?  Or is backing to the lighted tennis courts worth the $10,000 price reduction versus the one that isn’t next to the courts.   In terms of general practice, you should avoid being the largest house in the neighborhood – the smaller homes will tend to limit your valuation nearer to those immediately around it. 

Good Luck and Good Hunting !

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