Archive for the 'Buying Real Estate in Coconut Grove' Category
The Ultimate Guide To Short Sales In Coconut Grove
March 10th, 2010 categories: Buying Real Estate in Coconut Grove, Selling Real Estate in Coconut Grove
There are so many short sales currently on the market that some people are touting 2010 as “the year of the short sale”. For those of you who aren’t familiar with the term, short sales occur when a lender allows a property to sell for less than what is owed on the mortgage and takes a loss.
Here are a few tips that I have learned from my many short sale transactions:
What is the time frame on a short sale property?
It is my experience that buyers can wait 4 to 6 weeks just to receive a counter offer on an unapproved short sale. Once the buyer and bank agree on a sale price the deal can typically close in 30 days. There are new government regulations that have been put in place to speed up the process but I have not personally experienced any change in the timing. Truth be told, there doesn’t seem to be any way to force the banks to comply with the new regulations.
If I short sell my house, how long will it be before I can get another mortgage?
According to the New York Times, the average person who short sells their house can get a mortgage within 2 to 3 years. This is compared to 5 to 7 years if your home goes into foreclosure. Keep in mind these numbers don’t factor in any other credit issues.
Maybe you can get a loan modification as opposed to short selling the home?
Maybe you can but maybe you can’t. In the TARP report to Congress in January of 2010, 3+ million people have requested a loan modification in the United States but only 166,000 have received a permanent one. Personally, I know about 3 people who have been successful getting a loan modification and more than 20 who have not.
Maybe You Should Foreclose On Your House Instead of Short Selling It?
Keep in mind that when you walk away from a home in a foreclosure the bank can come after you for the difference between what the mortgage was and what the bank ultimately sold it for – i.e. deficiency judgment. Most of the time in a short sale the lender will release the seller from any future obligation of debt.
What Are The Questions I Should Ask When Submitting An Offer On A Short Sale?
- Is the short sale “unapproved” or “approved”? The difference is night and day and can take weeks off of your closing date.
- Are there any other offers? Many times an agent will keep a short sale “active” because they want backup offers knowing that the original buyer often times won’t stick around until the bitter end. But sometimes they do stick around and you should know ahead of time where your offer stands.
- Is the seller working with an attorney? If so, this can help the process move much more quickly.
- Am I required to use the seller’s attorney as my title agent? Many times, an attorney will not agree to handle a short sale transaction for the seller unless it is stated in the contract that they will get the buying side of the deal as well. They don’t make much money on handling a short sale transaction and try to recoup some of their cost on the Title. If this is a deal breaker for you, you should know it up front.
- Is it a local bank? Local banks seem to negotiate short sales much faster than larger national banks.
Short Sale Properties In Coconut Grove?
Click Coconut Grove Short Sale Properties to scroll through the 100+ short sales available in Coconut Grove. If you would like to see any of them give me a call and I would be happy to arrange a showing for you, as I said I have a great amount of experience dealing with short sales on the buying and selling side and would be happy to assist you.
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Interest Rate Hike Looming For Buyers
February 10th, 2010 categories: Buying Real Estate in Coconut Grove
There are mixed messages out there about when and if interest rates are going to go up. If the FED exits the market as planned on March 31st then interest rates are expected to rise. By how much? HSH Associates and Moody’s believe rates could rise to 6%. Morgan Stanley has stated anywhere between 7.5 to 8.5%.
Today the Federal Chairman Bernanke said that the timing of the exit would depend on economic conditions. He stated “at present the U.S. economy continues to require the support” of ultra-low interest rate policy”.
It seems that nobody has a definitive answer as to when and by how much interest rates will rise. But keep in mind that the cost to you of interest rates rising by 1% is equivalent to the home price falling by 10%.
Some buyers who are waiting out the market may hurt themselves in the end by being hit with a large rate hike. Historically when interest rates have gone up they have gone up fast. It is not uncommon for there to be a 1% hike in a matter of months.
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Slowdown in the $1 million to $2 million market
February 9th, 2010 categories: Buying Real Estate in Coconut Grove
3875 Park Avenue | $2,000,000 | 4,407 Sq. Ft. | 5 Bedrooms, 6 Baths
During the 4th quarter of last year we had quite a rush of $1,000,000+ sales in Coconut Grove but so far in 2010 there have been virtually none. The pending sale in Ye Little Wood fell through which leaves only 2 other homes under contract in this price range.
Scroll through what is currently available in the $1,000,000 to $2,000,000 price range in Coconut Grove. A few notes on these properties: 4074 Bonita Avenue is new on the market and it is listed at $1,795,000. I have not been inside the house but I do know that it is a very high price point for that street in South Grove. The owners purchased the land for $640,000 back in 2006. The land alone has dropped by at least half in today’s market.
The lowest “Price Per Square Foot” homes in this price range are distressed sales. The home on Poinciana Close Road is a foreclosure listed at $1,118,000 with a PPSF of $165.00. The home on 1801 Espanola is an approved short sale listed at $1,699,000 with a PPSF of $259.00. And finally the home in De Garmo Estates is an unapproved short sale listed at $1,500,000 with a PPSF of $277.00. I have a client who is very anxious to get in to see this property, but the current tenant is being very uncooperative with letting us in. The agent has said that we may have to wait until his lease is expired to see the home. Photos and more information on these homes can be found here.
If you are interested in buying or selling real estate in Coconut Grove and are looking for a Coconut Grove specialsit, feel free to give me a call on my cell at 305.342.1623 or send me a note here.
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Coconut Grove Featured Property
January 18th, 2010 categories: Buying Real Estate in Coconut Grove
I was in this home twice over the weekend and it is worth checking out if you are looking for a property in this price range. The home is located at 3535 Crystal Court in the North Grove. It was built in 1936 but has been totally updated with a modern touch. The home features 5 bedrooms, 5.5 baths, 4,712 square feet of living space on an 8,000 square foot lot. The rooftop terrace offers great views of the bay. Asking Price is $1,575,000, it has been on the market since September. Listed by EWM Realtors, Inc.
Details include:
- 1 car garage
- 2 separate staircases offer privacy between family bedrooms and guest suite.
- Bonus playroom
- Den downstairs
- Pool and jacuzzi
- Rooftop terrace
- Lot runs from street to street
As always, if you are interested in buying or selling real estate in Coconut Grove feel free to give me a call at 305.342.1623 or contact me here.
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Coconut Grove Short Sales – 24 For Sale
January 12th, 2010 categories: Buying Real Estate in Coconut Grove, Coconut Grove Real Estate
24 of our 192 single family homes on the market in Coconut Grove are listed as “short sales”. To view all short sales that are currently listed as “active” in Coconut Grove click here. Keep in mind that short sales are not for the weak. Once you submit your offer to the bank you can wait months to get a response. A few things to consider when making an offer on a short sale:
- Some agents keep their “short sales” on the market (active) long after they receive the first offer because they want those backup offers knowing that the original buyer may not stick around until the bitter end. I have spoken to an attorney who handles short sales on a regular basis and he believes that submitting many offers to the bank only confuses them and delays the process even further. So although there are currently 24 listed as “active” on the MLS, many of these likely already have offers.
- Some sellers price their short sale at a price that would never be accepted by the bank just to attract buyers. This leads buyers to believe that they are getting a “steal” then months down the road find out that the bank has countered several $100,000’s higher.
- Once you finally get approval by the lender the decision can be overruled or revoked just before closing.
- There is a big difference in an “Approved” short sale and an “Un-Approved” short sale. Approved short sales can take significantly less time to close than Un-Approved ones.
I currently have 2 short sales pending (I am the listing agent on both), but I have written countless offers on short sale properties for my buyers. 99% of the time my buyers have decided to move on to other properties because they get frustrated by the process - this is after I preach to them about how long and frustrating the process can be. Last year I had clients back out of their offer after waiting 4 months with no response only to hear back from the bank a week later. By then, the clients had been so soured by the process that they decided not to buy anything.
To view a list of all single family short sales (16) that closed in 2009 in Coconut Grove, click here. You are able to see the List Price and the Sale Price. There are currently 17 short sales in Coconut Grove that are listed as pending on the MLS, some went pending in July of 2008 and still haven’t closed.
In the Coconut Grove single family home market in 2009, short sales only closed an average of $4.00 per square foot less than the non-distressed sales.
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The Home Inspection Hurdle – It Can Make Or Break The Deal
December 29th, 2009 categories: Buying Real Estate in Coconut Grove
I have had 3 deals within the past month fall apart after my buyers did their home inspections of the property. Just to clarify, this is AFTER the sellers and buyers agreed on a sales price. Most home sale contracts in South Florida are “as is”, meaning that the buyer purchases the property “as is” and the seller is not required to fix anything wrong with the home. The buyer then has an inspection period after the contract is signed and they are allowed to cancel the contract based on the outcome of that inspection.
That being said, once the inspection report is given to the buyer they can try to renegotiate the sales price of the home with the seller for the repairs. I would say that this happens 75% of the time. I recently closed on a house where the buyer and seller split the repairs 50/50.
But some reports that come back are so frightening to the buyers that it sends them running in the other direction. This has happened to 3 of my clients in the past month. The first buyer had severe allergies to mold and the inspector told her that although the mold report came back negative there had been some leaky pipes in the walls and the roof was leaking. Even after the seller offered to put in an entire new roof, the buyer was still not interested. Her allergies were too sensitive and she couldn’t risk the possibility of being allergic to her own home.
The second buyers fell in love with a property in a gated community but when they found out that the roof needed replaced (potentially $25,000), one of the two septic tanks needed replaced (potentially $5,000) and the house had mold issues, they decided that it was just too much of a project than they were willing to take on. They weren’t even interested in re-negotiating the contract and cancelled it today.
My last clients didn’t even wait until the inspection report came back. They attended the inspection this morning and pretty much went running out of the house when they heard the issues brought up by the inspector (the house was being held up by cracked concrete blocks and the inspector said it was the worst he had ever seen). We are drawing up the cancellation of contract as we speak.
Lately appraisals have been the biggest hurdle that buyers and sellers face during their real estate transaction, but the past few days prove that home inspections can certainly make or break a deal as well.
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“For Sale By Owner” Homes Can Be A Challenge For Realtors
December 5th, 2009 categories: Buying Real Estate in Coconut Grove
Back during the boom there was a “For Sale By Owner” sign on every block in Coconut Grove. These days, it is very rare to find a true FSBO and for the most part FSBO’s have been taken over by the discount broker (the broker that charges a small fee to place your home on the MLS but otherwise gives you no added service). Although there are a plethora of reasons to have your own experienced agent representing you on the selling side (i.e. to qualify buyers, market your home correctly, negotiate properly, help with appraisal and inspection hurdles, help with pricing, etc. etc.) I do not hold it against anyone who decides to sell their home on their own.
But problems do arise when I am representing the buyer who is hoping to purchase a “For Sale By Owner”. First, the sellers have typically over-valued their house and I am the one who has to break the news to them that the comps don’t support such a price (this is usually the job of the listing agent) and because I am representing the buyer they have a hard time accepting my numbers. Second, handling the negotiation process is very difficult when you are the opposing party and have to deal directly with the seller. As you know, real estate transactions can get very emotional for some people and if you don’t have that other agent as a buffer the deal can easily fall apart. Third, my commission is not protected by a listing agreement found in a traditional transaction.
I have certainly handled many purchases of “For Sale By Owners” for my clients, but the deals do not come without headaches.
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Buyer Activity Is Up, Listing Activity Is Down in Coconut Grove Real Estate
November 23rd, 2009 categories: Buying Real Estate in Coconut Grove, Selling Real Estate in Coconut Grove
Buyers have been very active the past few weeks in Coconut Grove. I am out with clients just about every day showing property and we have had record numbers at our open houses.
Where are my buyers coming from? The majority of my buyers are coming from out of town, mainly the Northeast and a few from outside the US. I also have some who currently live in Coconut Grove and are wanting to upsize/downsize, and some renters from the Brickell area looking to buy.
On the other hand, listing activity has been slow across the board. We see this slow down every year around Thanksgiving time because people like to wait until after the holidays to put their home on the market. Although it may be more convenient to wait until January to put your house for sale, these people are missing out on one of the busiest months of the year. Think of all the out of towners who will not get to see their homes!
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.
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Slim Pickings
October 27th, 2009 categories: Buying Real Estate in Coconut Grove
I have an out of town buyer who is looking at properties between $1,000,000 and $2,000,000. She requested to see 15 houses, of those 15 only 5 are still available. Some were short sales with multiple offers, some had pending contracts, a few were rented and one was sold.
Moral of the story: There is not a lot of good inventory between $1,000,000 and $2,000,000 on the market today.
Thinking of selling your home? Now might be a good time to put it on the market when we have such a limited supply of quality high end homes. Please give me a call for a market analysis of your property.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.
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Bidding Wars On Two Grove Properties
October 23rd, 2009 categories: Buying Real Estate in Coconut Grove
There have been two properties to go into bidding wars in the Grove recently. The first, was a foreclosure located at 3520 St. Gaudens Court. St. Gaudens is one of the premiere streets in Coconut Grove and this 3 bedroom, 2 bath, 2,500 sq. ft. home was priced at $434,900. There has not been a sale under $1,000,000 on this street in years. Rumor has it that the property was bid up close to $200,000 over the bank’s asking price.
The second property was located at 84 Bay Heights Drive and was part of an estate sale. The home needed total renovation, but did feature a very large living room, large screened terrace with vaulted wood ceilings and a full underground basement. The home had 4 bedrooms, 2 baths, 2,912 square feet of living space on a 9,547 square foot lot. The list price was $399,000 and it was listed by EWM. Word is that this house has at least 12 offers already.
To stay updated with all of the current Coconut Grove real estate information, receive my blog posts directly to your inbox by subscribing here.
If you are interested in buying or selling real estate in Coconut Grove, please give me a call at 305.342.1623 or send me a note here.
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