Cape Coral Florida Real Estate

This blog has great value to Sellers!

When doing a market evaluation or considering lowering your price due to competing homes for sale....

Notify your agent you do not want to compare with short sale properties listed for sale.

Why?

Price on a short sale is a desperation to sell by the owner. Very low asking prices do not matter to owner nor agent. They are trying to sell before foreclosure and the bank eats the difference.

Or do they?

Not in reality. The bank will do an appraisal or Broker opinion of value and reject low offers. Most lenders are not up to date with current market conditions and values. If they reject the offer they will not tell anyone what they will take, thus the game continues. Raise the asking price a little and see if they take the next offer. Plus the seller does not know that taxes will be owed on the difference between sold price and owed price. Not to mention that they may well put a judgement against the seller for that amount.

How this hurts sellers?

Properties listed for sale (short sale)may have unrealistic asking prices. If your agent uses these to set your asking price. You will be too low compared to normal listings.

Why short sales are not your competition!

A very few are selling at or near the price asked.
It takes about 3 weeks to get an answer from the lender and most buyers will not wait that long to find out accepted or rejected.
The lender will not sign the sales contract and is not bound by time constraints nor the contract. Closing dates irrelevant. Most agents will not even show Short sales. If the lender decides to pay 1% (really) that is what you get. Kill the deal and ethics come into play.

Short sales are not your competition and should not be used as comparables.

90% of agents are not aware of this. I am.

If you want a real pro to sell your home, call me.

239-770-0686 Joseph Beauvais/owner agent
Email; SunnySpotRealty@comcast.net
Sunny Spot Realty Inc.

Read more about short sales;

http://www.sunnyspotrealty.net/ShortSale

Is it time to Buy a Florida home or wait?

It depends!

1. Credit perfect, lots of money down and want to flip or rent out. Answer, No!
2. Credit less than perfect and or you have a small amount down.(less than 20%)
   Answer, Yes!

Why? What is the difference?

Lenders are in bad shape. Too many owners cannot pay due to over extending themselves and taking out equity line loans. 920 foreclosures last month alone.

How will lender recoup the  losses?
Answer,Through future buyers.