Southwest Florida Real Estate

DM Dean Homes

2010-09-28T13:00:00.000-04:00

13050 Garfield, Placida Florida

2010-09-16T05:20:00.000-04:00

9706 Little Gaspailla Island

2010-09-09T15:37:00.000-04:00

So what is HAFA & how does it work?

2010-04-20T17:05:00.001-04:00

Captain Bob Davies, CDPE 941.468.4485

Where have all the foreclosures gone?

2009-08-10T13:00:00.003-04:00

I have watched the number of foreclosures in my local areas including Longboat Key, Siesta Key, Bird Key, Casey Key, Manasota Key, Palm Island, Little Gasparilla, Boca Grande, Venice, Englewood, Rotonda, Port Charlotte, North Port and Punta Gorda continually decrease. 3 months ago at any given time there were approximately 600 plus foreclosures available. I would receive 15-25 new foreclosure updates daily. In the past 3 months the number of available foreclosures above $70k has been reduced to less 150. Instead of getting 15-25 new foreclosure listings a day I will receive 1-2 new ones and 3-4 status change, meaning they went under contract.

Please don't interpret this as there not being good deals out there, because there are. I find a couple of incredible deals every day but one needs to act fast as they are gone within 1-5 days.

The lack of foreclosures is a combination of events. The first is the banks are overwhelmed with the number of defaults, short sales, modifications, foreclosures and the overall loss of capital & its worth.

Second is the banks are being held accountable to prove that they attempted to modify every loan that is in default. They now are being compensated for each modification they do.

The third reason is that many REO properties are being sold in blocks, large wholesale packages to investors and they never hit the market. This means that many potential buyers will never see them.

Another thing that needs to be taken into consideration is that property prices are a direct result of supply & demand. As the supply has begun to decrease, the demand has started to increase along with the prices - Economics 101. It is in the banks best interest not to flood the market with foreclosures and cause the prices to decrease but to control or trickle the foreclosures out to sustain the market price.

There will be more foreclosures to come, but they will roll out in a more controlled manner as to not decrease the prices anymore.

What does this mean to you as a buyer? When you find one that you want act fast. There are more buyers in the marketplace than there are good deals. If you are in the market for a home, now is an opportune time to move forward while Florida is still on sale!

You can't always believe what you hear or the media is wrong?

2009-04-29T16:33:00.003-04:00

Ready for the media's best kept secret? Sit down. The real estate market in Florida is not only recovering, it is booming for those people in the market for great deals. FACT: this was the 6th month in a row that sales increased dramatically. FACT: last month was the highest sales month in Florida history, second only to June of 2005. 2005 was the height of the market boom and they only sold 6 more homes in Sarasota County than last month. I know what you are thinking - are you kidding me? By watching the news and all the coverage on the growing number of foreclosures, I thought I had plenty of time and plenty to choose from. Well listen up - there are a great number of foreclosures, but the number of buyers is growing even greater.

Here's the skinny if you are considering a home purchase in FL in today's market. Every home that is in good condition and priced right will have multiple offers on it within 24 hours. Some banks even make the agent disclose in the comments that property must be on the market for 10 days before they will even look at offers. The result is on the 10th day the offers are stacked up and the bank chooses the highest & best offer and the show is over. A low ball offer does not stand a chance in today's market unless the home is trashed and no one else wants it.

Many buyers have experienced putting in 3-4 offers unsuccessfully before coming to terms that they must be realistic with their offer amount. You are not going to "steal" the home by paying half of the listing price. Someone else will pay the market value if you will not, which by the way, is 50%-60% less than it sold for a couple years ago. The banks are not going to discount them another 20% if the current price is within what the current market will bear. Once a buyer has learned this most important lesson, they stand a much better chance at being successful with their next offer.

The best advise that I can offer you is to be sure that you are working with an agent that knows the foreclosure market and can tell you exactly how much per square foot banks have accepted recently for similar homes. If the home that you like is priced $20 per square foot below other comparable homes that are not as nice that should be a good sign that this home will sell for or above listing price. Recent comps are the best guage to determine a home's value and can be used as a guideline for the amount to offer.

Don't follow the masses that are listening to the media's doom & gloom. People are buying. Let me tell you that the time is here. It will be over much faster than most of us can imagine. Before you know it this historical moment will be lost! I follow the numbers and we only have a third of the amount of available foreclosures that we had 3 months ago. With that being said, now that the banks have reduced the inventory and have a handle on the supply, they will better control the remaining foreclosures still to hit the market in order to have more control over the supply and demand and therefore the prices.

This is a historical moment in real estate as the banks have never been this vulnerable and willing to deal. Don't miss it!

Has Florida once again become a sellers market?

2008-10-31T12:35:00.001-04:00

Sounds crazy, but it is true! Prior to, but especially in the last 90 days, many areas of Florida have become a sellers market when it comes to the number of offers on homes with popular criteria and the most competitive pricing. It still is a buyers market in the sense that these homes are at bargain prices. For this reason there are so many buyers in Que waiting to pounce on the right home. North Port is most famous for this. It is an area where you can get the newest, largest and least expensive home in the entire Venice, Port Charlotte, Englewood and Southwest Florida area.

Sellers offering homes that are in demand and priced right are receiving multiple offers and have the convenience to pick the highest and best offer. In order to attract more attention, some properties are hitting the market priced below what the home will actually bring, even in today's bargain market. This is creating a frenzy for buyers to scramble to get in an offer before someone else gets the home. It has gotten to the point that if I show a buyer a home in the morning that they like and want to put in an offer that afternoon I have to call to see if the home is even still available. Then, if it is, the next question that I have to ask is are there any offers on it yet. Just to give you an example, I had a buyer that wanted to put an offer in on a home last week and they were making a respectable offer. I called and was informed that there were several offers submitted that day. When the results were in the home sold for $10,000 over list price. I have actually seen homes sell for $25,000 above list price!

This seems to be a common occurrence in Southwest Florida. Buyers think that there are so many homes to choose from that it is overwhelming. Truth be known, by the time you take out the short sales, if someone does does not want to wait 3-6 months, take out the ones that are overpriced and the ones that need a lot of work or are unfinished there aren't so many choices.

Many people are coming to Florida and finding out that if they want to get a good home at a good price they need to be educated as to what homes are actually selling for not what they are listed for! If you find a home you want, be realistic about what you offer cause other buyers that are familiar with the market are.

In summary if you listen to the media no one has bought a home in Florida in the last 3 years. Let me tell you as a REALTOR that has worked this market for some time, homes are moving fast!

2006 Gulf access pool home with universal design

2008-10-09T06:27:00.002-04:00

Florida Foreclosure & Short Sale Q&A for the North Port,Port Charlotte,Venice area

2008-08-25T16:28:00.002-04:00

As more buyers move into the Forida foreclosure and Short Sale market they have many questions about how they work in Florida.
Question: "What about liens and encumberances?
Answer: In Florida when the buyer comes to the table to close, all liens mortgages and encumbrances are paid by the bank. The buyer starts clean with a property free and clear of encumbrances.
question: Can I finance a foreclosure purchase or do I need to pay cash?
Answer: Most if not all bank owned properties require that a pre approval letter be submitted with the offer. You can finance through whoever you like but be prepared to send a pre qualification letter when your Realtor presents the offer. If you are paying cash then you will need to submit a "Proof of Funds" letter with the offer.
Question: Are all foreclosure and Short Sales sold "As Is"?
Answer: Most if not all are sold "As Is". This does not mean "Buyer Beware" it simply is done this way since the bank has never lived in the property so they cannot warrant the condition of the property. As with all purchases buyer should have all applicable inspections done by licensed inspectors. In most if not all cases you have a 5-10 day inspection period in which to perform the inspections. If you are not happy with the results you can opt out of the purchase without penalty.
Question: How do I find foreclosures and up to date accurate information on them?
Answer: The Banks best way to market and sell the property is to list them with local Real Estate brokers who know how to market and sell these properties. You will find that using a local Realtor is free to the buyer and is the best way to get current information and data on foreclosures since Realtors have access to the Multipe Listing Service where most if not all of these properties are listed.
In closing I cant stress the importance of having a licensed buyers agent work for you not the bank to represent your interests and negotiate the best deal for you with the bank.
Tune in next week for more Q&A as well as information on foreclosures and Short Sales.

Florida market update,Venice,Englewood,Port Charlotte & North Port Florida

2008-08-17T08:50:00.001-04:00

The sales seem to be rolling in especially in North Port ,Port Charlotte and Venice Florida. The property selection is good if you take into consideration the number of short sales. I had mentioned in a previous blog that the percentage of short sales would increase, I was right. If agents or buyers do not want to mess with short sales they will most likely have to deal with regular resales. It seems that as soon as a nice foreclosure hits the market it has multiple offers on it. The reason is the foreclosures are the best priced properties within their criteria so they move fast.
I see in many cases that the banks are pricing the homes below even the current market value and creating bidding wars on these aggressively priced homes. If you are looking at foreclosures do a market analysis on recent sales of similar homes and be ready to pay that per square foot. These properties are deals but the bank is not going to sell it to you for any less than what another ready,willing and able buyer will pay in todays marketplace. Most importantly remember if you make a ridiculous offer be prepared to get a ridiculous counter offer!

Should I rule out short sales?

If you do you will have a small selection of homes to choose from. I have been successful with short sales for a year now, which doesn't seem like a long time but they are relatively new to the southwest Florida area. I saw them coming and realized that I need to get acclimated with how they work as they will be a large part of our inventory. I am now well versed in dealing with them and have much success. I am very selective with the ones that I list and show as they can be a nightmare and a blatant waste of time if not done properly or if the bank is not realsitic.

My advise would be to first try to find a home that is a foreclosure or a resale before looking at short sales. If it seems that short sale properties are your only option then you need to get familiar with them or find someone that is before going down that road, as they are not for the faint at heart!

Sarasota and Charlotte County are a Hot Market

2008-07-06T13:37:00.003-04:00

It seems that the log jam has began to break! Both Sarasota and Charlotte county, North Port, Venice, Englewood and Port Charlotte to be more specific increased by 24% on sales in May over April and is up 11% over sales last May. Many people who were waiting for the bottom to hit clearly see that may have happened. June has been extremely busy and it is snowballing into July. There are MANY buyers in Que just looking for the best deal on the right home.
North Port offers the newest, largest and least expensive homes in this area of Florida. If you have been scoping out Venice and Englewood the time is right for the taking. Prices in many cases are 50 cents on the dollar as compared with 2005 prices, and offer a great value. With this being said many of the foreclosures that hit the market are priced low even for today's market conditions. This has caused a rush of buyers and agents to view these under priced homes looking for a bargain and created an enormous amount of traffic on these specific homes. The result has been Multiple Offers and homes selling at or above list price in a bidding war situation. This is not the case on all homes, mainly the ones that are obviously under priced as compared to similar homes with similar criteria.
Contact a real estate agent and he or she can do a buyers comparative market analysis (CMA), based on recent comparable homes and give you a per square foot price range for what similar homes have sold for in todays market. This can prove to be a helpful guide for what you should offer for a home. Again this is a GUIDE as there are many variables in homes such as condition, location and so on. In closing, be realistic with your offer. If you make a ridiculous offer on a home expect a ridiculous counter offer.

Pre foreclosure/Short Sales

2008-05-21T22:02:00.003-04:00

With the economy the way it is many good people are facing foreclosure that would never have dreamed that it would happen to them. Unfortunately home prices have plummeted and people have been forced into a position of having to give up or walk away from their homes since they owe more than they can sell them for.
With that being said, a foreclosure on your credit can ruin you for more than 7 years. Since this is so new to this area people in many cases do not know what to do.
Well there is an alternative, it is called a Short Sale or Pre Negotiation. It has much less of a negative impact on ones credit and enables many people to get back on their feet and re group.
The time and cost of foreclosure is not real attractive to the banks, so they have found a better solution via short sale. They now are reacting faster to short sale offers and realize that it is a better option for them and the borrower.
I have had a great deal of success in assisting sellers with a successful short sale and saved them from the stress that foreclosure brings.
If you would like to see if a "Short Sale" is an option for you feel free to contact me for a free confidential consultation and avoid the stress and repercussions of foreclosure.

Short Sales

2008-05-12T21:03:00.004-04:00

I have had a good week listing and selling short sales. If the ground work is layed properly short sales can be a very smooth process and it doesn't have to take forever to get them closed.
The success is determined when they are listed not when an offer to purchase is presented. Understanding the proper way to list a short sale is imperative. The owner needs to know completely how the process works, not left guessing what will happen. If the proper steps are laid with the bank and everyone is on the same page working together the seller can absolutely avoid foreclosure and the repercussions that come with it.
After having spent much time analyzing short sales and speaking with mitigators I have set sellers, buyers and myself up for success. It did not come easy as short sales are new to this area and this market.
It is a great feeling to help sellers who are worried that there is no way out other than foreclosure to be able to sell their home and not kill their credit for many years to come. A Short Sale saves the bank much time and money so it is many times their best avenue.
I am actively looking for sellers that want to get out from under the pressure they are feeling from owing more than their home is worth and giving them a chance to rebuild. If you or someone that you know are in this position give me a call and I will be more than happy to offer a free confidential consultation. It won't work for everyone but I will help the ones that I can!

Available homes for sale

2008-05-04T08:06:00.000-04:00

The reason that I believe there will be an increasing percentage of short sales is that the majority of them are not closing. As the resales and foreclosures are going under contract and closing they are removed from the active supply of homes. Short sales on the other hand, unless handled properly are not closing. The process can take 4-6 months and many seem to fall apart leaving buyer and agent with a bad taste in their mouth for short sales. I personally have had several properties that were short sales, had reasonable offers on them and the buyers were tired of waiting for a response from the bank and withdrew their offer. When that happens the whole process starts over again.
I have since made it my policy not to list or sell a short sale unless the seller is willing to follow my lead and that I have received certain commitments from the bank that has the mortgage on the property.
Since putting this procedure in place I now have happy sellers and buyers. This has enabled me to stack the odds in favor of the buyer, seller and bank, which creates a winning scenario for all involved.

False perception of available homes for sale

2008-05-02T11:56:00.000-04:00

One item that is giving buyers a false perception of the local market is "Short Sales". In all cases the list price on short sales is subject to 3rd party approval (the bank) and in all cases the list price may not be sufficient to cover the liens mortgages and encumbrances on the property, thus the term "Short Sale". So are these real prices? Will the bank accept this price even if the offer is for full list price?
It seems the newest, largest and least expensive homes on the market are short sales, but that does not mean these homes can really be bought for this price. This is giving people a false perception of what money can buy in today's market as well as how many are for sale in any given area.
I just did a search in the MLS and the criteria that I used was as follows: All of North Port, 3-5 bedroom. 2000 or newer, 1200-3000 sq ft under air and actively for sale. Here are the results: there were 878 homes that matched this criteria for sale and 240 of them were short sales. that means that approximately 30% are short sales! In my opinion that percentage will increase every day. Tune in later to find out why.

Foreclosures and short sales

2008-04-30T07:35:00.001-04:00

Foreclosures and short sales are the buzz words and these are what is selling in the Venice, Englewood, North Port and Port Charlotte Florida market. There seems to be many people that do not know the difference between a short sale and a foreclosure. They are not the same. A foreclosure is when the bank is selling the property, it is already owned by the bank thus the term REO(real estate owned). These are handled by an asset manager from the bank in most cases. They list them with a local real estate broker to market and sell them. The main difference between buying a regular resale VS a foreclosure is the paperwork. Since the bank has never lived in the property they will have you sign an addendum that basically states that you are buying it "AS IS", since they cannot warrant the condition the property is in. You still have a 10 day inspection period and the sale is subject to inspection. If you are financing you will need a pre approval letter before the bank will look at the offer. If you plan on paying cash you will need proof of funds from where your money is. A short sale is the owner, not the bank selling it. These are often referred to as "Pre Foreclosures". The owner owes more than the property will sell for in today's market and is trying to get the bank to settle for less. Thus the term "Short Sale". If these are listed and presented properly they can be very successful. If the proper process has not been followed it can take upwards of 4-8 weeks to even get a response on an offer that is presented, and 4-6 months to close if the offer is successful. If handled properly you can normally get a response within 3 weeks on an offer. Another key to success is to have an approved listing range that the bank will accept. Unless the bank has approved a list range the list prices are not real and I find them to be a waste of time. For more information on this subject please watch the video's that I have posted on You Tube or feel free to contact me if you have questions.

Florida Real Estate market update for Venice, Englewood, North Port, Port Charlotte Florida

2008-04-29T15:49:00.001-04:00

The market runs in cycles and history repeats itself. The real estate market went through this same phase in the early 1990's. Property values plummetted and the aftermath was foreclosures. Foreclosures are a sad thing but they are also the markets way of curing itself. They create activity in the market as people scramble to get the best deals. This creates a buying frenzy as people who missed the opportunity in the past step up to the plate and buy foreclosures at 50 to 60 cents on the dollar. As these properties sell they reduce the amount of available inventory.
There is a window of opportunity, which we are experiencing now when the banks truly discount properties to the point where they are really a deal to the time when the supply and demand is back in check. Once the supply and demand are back to the healthy level that window is then gone.
The majority of us are followers, not leaders, many are led by various media critics that say that they prices will keep coming down. My answer to that is that they are right in one way. The properties that are over priced will continue to come down and follow the market in an effort to keep up with the competition. The ones that are priced right to begin with for today's market are selling. I see homes hit the market everyday that are priced low even for today's market, and within 3 days they have 30 to 60 people look at them and have multiple offers on them. Most often the ones that are priced aggressively sell ABOVE listing price.
But again the media has many followers that are sitting on the sidelines watching the best ones come and go.
In my opinion this is partly the reason why 90% of this countries wealth is controlled by 10% of the people.
Don't get me wrong if one is not in a financial position to take advantage of the market conditions and be able to wait it out until the market rebounds then they should not get into the game.
But if you wait until the media says it is time to buy then you might as well take a long nap! By the time positive media sells this opportunity will be long gone and then one can wait another 10 years for this to happen again. Remember, history repeats itself....