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 If the  Bank feels the price being offered by the buyer is too low they will either counter the  offer or go to the next one.  If the seller only signs one offer to submit to the bank  there is little for the bank to do other than make the counteroffer or reject the offer all together.  Then the process starts all over again.

I am not sure what the motivation is on the behalf of the company who listed the property, but if they would have would have checked the comparable sales, or would have called some of the neighborhood expert Realtors, they would find that listing a 3 bdrm., 2 bath home with over 1700 sq. ft. of living space for $210,000 is not comparable to  similar homes in Forest Ridge.

There is no apparent reason why this home has to be listed so low, other than to bring  multiple buyers to the table and hopefully bring the sales price up quickly to a more reasonable selling price.  Let’s hope that this is the case here, and that the list price is just a “starting point” at which offers will begin.

The double width driveway allows off street parking for guests.  The home has been secured with an alarm system, including the screens so you can  confidently sleep with the windows open at night during the winter months. There are 5 fans located throughout, two on the porch, one in each bedroom and one in the family room.  The kitchen cabinets have been updated and there is a transferable appliance contract good through December 2009.

All lawn service, pest control, exterior painting, roof repair and replacement, minor interior and exterior plumbing and electric repairs and basic cable are provided with the low monthly maintenance fee of $222.00 per month.  Residents can enjoy a clubhouse, 2 pools, tennis courts, activities and a free shuttle to Publix and banks.

I have noticed that many homes that have been foreclosed are not listed for sale and homes undergoing a short sale are taking longer to get approved.  If I had to guess the reason,  I would speculate that banks are overwhelmed with the number of properties in trouble and do not have the manpower to handle them.  My own experience in selling short-sale homes has been exhausting and disappointing. 

Currently I have  two listings with short sale contracts on on their single family homes.  The offers are cash, no financing. The price that was negotiated by the sellers  and buyers are at market value.  However, it has been more than 3 months since the offers have been submitted without an approval from the banks.  Each time we contact the banks, if we are willing to wait the 45 minutes it usually takes to get through,  we are told a different story, anything from “We don’t have approval from the seller to discuss the sale with you”, (even though the approval has been faxed to the bank multiple times,) to the very odd statement that ”The person who was handling the file no longer works here.”  When we finally do get someone to help us with the file it usually leaves their hands within 48 hours and is sent to another person for processing. 

Banks do this in order to keep the transaction at arms length; there are no relationships developed and the process is very impersonal.  In their defense, most of the banks are not even located in the state where the transaction is taking place.  The staff is paid hourly and have no incentive to close a sale.  Until something is done to require banks to make  decisions on fair market offers within a specific time frame  the real estate market will continue to struggle.  In the meantime, I believe we will see changes in the market and  qualified buyers are wise to purchase a home based on its availability if they want to close by the end of November to obtain their first time homebuyer tax credit.

The kitchen has a dining nook with room for a sizeable table and chairs, new granite counter tops, wood cabinets and a large pantry.  This 2 bedroom/2 bath split plan provides privacy for all occupants.  The master bedroom has an extra large walk in closet, large vanity with two sinks and a walk in shower.  This home is offered at $289,000.

Living Room, Dining Room and Den

Oak Grove is a small neighborhood within Forest Ridge in Davie, Florida.  Forest Ridge is best know for its gorgeous paved brick entry lined with 200 year old oak trees.  The history of the land where Forest Ridge is built goes back to the Tequesta Indians.  Forest Ridge is located on the highest point in South Florida, which is 29 feet above sea level.  Amenities include various swimming pools, tennis courts (6 are lit for night time play) and walking trails to  Tree Tops Park.  Forest Ridge is surrounded by a nature preserve and is minutes from Nova Southeastern University and Broward College.  Restaurants, shopping and all major highways are easily accessible.  Bamford Sports Park is a bike ride away, as well as Silver Ridge Elementary, an “A” school. 

Forest Ridge is located just south of I-595 on Pine Island Road on the west side of the road, across from Grand Oaks Golf Course.  It is not a gated community; take a Sunday drive and enjoy one of the most unique developments in Broward County.

How much is your house worth?

As of July 30th, 2009 new regulations that are designed to protect homebuyers will go into affect.  We have already seen changes in the way appraisals are performed, under the new Home Valuation Code of Conduct (HVCC).  Appraisers are shielded from “undue influence”,  meaning that Realtors, Sellers, Buyers, Lenders or anyone else associated with the sale can not provide any assistance to the appraiser. 

In the past, I would always attend the appraisal of the home I had listed as a courtesy to the Seller and Buyer.  I would come prepared with comparable sales in the market, a survey of the home, a copy of the contract, and any other information I had to support the sales price of the home.  The appraiser and I would have a discussion about the upgrades to the subject property, time on the market and other issues that would be considered important to the appraisal. 

Lenders would generally select the appraiser from a list of approved appraisers, especially those who are familiar with the area in which the appraisal was being performed.   As of May, 2009, Lenders or Mortgage Companies cannot select the appraiser.  There is a middle man, a company who selects the appraiser from an approved list, regardless if the appraisers company is in West Palm Beach, Fort Lauderdale or Miami.  Very often I attend appraisals where the appraiser has never been in the neighborhood and knows nothing about the intrinsic value of the community.  I am not allowed to give any information to the appraiser, unless asked,  and therefore my position as the professional real estate agent is basically considered unimportant to the final result of the appraisal. 

While I do believe that this Code of Conduct was designed to protect a buyer, I also feel that there are too many restrictions being placed upon appraisers today. 

In my next blog I will talk about the July 30th Housing and Economic Recovery Act (HERA) and the Homeownership and Equity Protection Act (HOPEA) will affect the time it will take to close a loan.

1.) $30.1 million for down payment assistance for those who qualify for the federal first time homebuyers tax credit.  Beginning July 1, these first time homebuyers will be able to apply for down payment assistance in advance of closing and then repay the amount borrowed when they get their tax refund.  Remember that first time homebuyers may qualify for an $8000.00 tax credit depending on the home they purchase and their qualifications.

This is a wonderful opportunity for many and the state will be paid back.  Conceivably, more potential homebuyers could take advantage of the down payment assistance prior to the December 1 expiration date. 

2.) A reduction in the eviction filing fee from $265 to $180. 

3.) SJR 532, a constitutional amendment that will go before voters in 2010 to limit increases in property tax assessments on all non-homestead properties to 5 percent annually.  First-time homebuyers will benefit, too, with an additional homestead exemption up to $100,000

4.) In the area of property insurance, the Legislature capped rate increases at 10 percent per year for Citizens policyholders.  The Legislature also repealed the requirement that, effective January 1, 2010, sellers of property located in a wind-borne debris region, and which has an insured value on a structure of $500,000 or more, provide prospective buyers the structure’s windstorm mitigation rating.

It is predicted that the volume of REO properties will increase in the 2nd and 3rd quarter of 2009,  however those facing foreclosure have other alternatives to saving their homes, i.e. mortgage modification.  If the lender and the homeowner cannot come to an understanding the seller still has the option of trying to sell his home as a “short sale”.  If the foreclosure process isn’t too far along the seller will probably be successful.  However, if an auction date has already been set the seller has little recourse.

Sellers who are not involved in a pre-foreclosure or a short sale have taken the advice of their Realtors and adjusted their list price so they can compete with them.  This is where it gets interesting for the buyers who do not have the patience to wait to find out if their offer on a short sale will be accepted. 

Statistics do not lie.  The sales of expisting single-family homes surged in South Florida last month; 101 percent increase in Miami-Dade and a 47% increase in Broward.  Low interest rates, declining prices and the first time homebuyer tax credit seems to be the perfect combination.  The Florida Association of Realtors released information that states both counties enjoyed  growth since last year for the past eight months.

Foreclosures and short sales will continue to put downward pressure on the market until inventory stablizes.  However, if the pace of home sales continues at this rate it won’t be long until the inventory begins to decline and we all know what happens then!

A homeowner who successfully negotiates and closes a short sale will be eligible for a  Fannie Mae backed mortgage after only 2 years.  This applies to owners of a principal residence and investors, as well.  In comparison, a homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years and an investor who allows a property to go into foreclosure will have to wait 7 years for a Fannie Mae backed mortgage.

A foreclosure will remain as a public record on a person’s credit history for 10 years or more, whereas a short sale is not reported on a credit history.  There’s no specific reporting item for “short sale”.  The loan is typically reported as Paid In Full.  In some successful short sales, it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner.