Is This Worth My Money?

So, how do you know that what you are offering is even based on a realistic amount? This a very good question and one that every buyer should be asking.   While there is NOTHING or NO ONE that can guarantee that today’s good value will be worth any thing tomorrow, you need to get the best deal you can today based on today’s market conditions.

Here is where to begin…

•   Search for comparable properties (similar sq ft, beds, baths, garage, age) that have sold in the community of the subject property within the last 90 days.  If there are not at least 3, stretch the search to 180 days.

•   Your competent buyer's agent should also give you a comparable market analysis report which should be very similar to your findings, as well as the current deed on the property, plat map, septic permit (if applicable) and tax record.

THE DO NOT’s…

•   DO NOT- base the value on the tax record or a "zillow estimate".  Both are un-reliable sources in a fluctuating market.  Nor do these two tools take into account upgrades, changes in the home or neighborhood or rental properties.

•   DO NOT- base your offer price on what the seller owes or what you think they owe.  However, your buyer's agent should be able to give you an "guestimate" on about how much they owe to help with your negotiations.

•   #1 DO NOT- work with the listing agent or builders agent as they work FOR THE SELLER.  It's in your best interest to choose someone who has your best interests at heart and can completely negotiate on your behalf.  The seller typically pays the buyer's agent's commission, so you're getting the benefit of working with a professional, for free!

A necessary tool in the homebuyer's toolbox is the appraisal.  The lender is going to require an appraisal and it can be completed during the due diligence period and the buyer should be more than willing to pay for it.  The appraiser will determine the value for which the bank will finance, and if the seller refuses to re-negotiate, so that the selling price at least matches the appraisal value, the buyer has the opportunity to back out of the contract, free and clear.

At the end of the day, a home is only worth what a buyer is willing to pay for it.  But, until the last “i” is dotted, purchase with intelligence.  When everyone is well informed and realistic, you will have a smooth transaction with no surprises!

Whether you're curious about buying or selling your home, I would love to help!  I'm never too busy for any of your referrals!

Foreclosures Are Here! Jacksonville Real Estate

Foreclosures are here!

The current market comprised of foreclosure properties is an unfortunate situation for all parties involved, and is increasing daily. HomeTeam Real Estate has positioned itself with local and national banking institutions including national REO asset management companies, which allows us to understand the process more thoroughly, have access to more inventory and work more efficiently for our buyers.

What is a foreclosure?
Foreclosure is the legal process by which a bank seeks to recover the amount owed on a mortgage typically due to default. There are several stages in the foreclosure process:

• Pre-Foreclosure / Short Sale: Basically, when the proceeds of a home "fall short" of what is still owed on a mortgage. During this time, the owner may possibly have the option to sell to a third party for less than what is owed on the mortgage and the bank may potentially avoid a costly and lengthy foreclosure process by accepting this lesser amount.
• Auction: If the property is not sold during the pre-foreclosure period (if there is one), a public auction is then typically held to sell the property to the highest bidder. Foreclosure sales may include a minimum bid amount along with accrued interest, attorney fees and possibly other foreclosure fees. Typically, the property is purchased "as-is."
• Bank-Owned / REO (Real Estate Owned): If the property fails to sell in the pre-foreclosure stage or at auction, ownership reverts back to the lender.

Short Sales

• Mortgage servicers have 10 days to accept or deny a short sale request. After a sale is completed, the borrower could be completely released from debt.
• Borrowers are eligible to receive a $1,500 moving allowance, if they sell their home through a short sale.
• Mortgage servicers will receive $1,000 for each completed short sale.
• Investors who hold first mortgages can get as much as $1,000 for allowing second lienholders to release their liens.
• Second lienholders can get only as much as $3,000 in proceeds from short sale to release their liens.
• The property must be the homeowner's principal residence.
• The homeowner is delinquent on the mortgage or default looks likely.
• The loan was made before Jan. 1 this year and is less than $729,750
• The borrowers' total monthly mortgage payment exceeds 31 percent of their before-tax income.
Source: Keeping Current Matters 3/2010, HAFA Guidelines

Avoid Foreclosure Checklist -- Homeowners' Options

• Bring your loan current and maintain regular payments in a timely manner.
• Work out a repayment plan.
• Refinance your home with better rates and terms.
• Modify your current loan with your lender.
• Rent your home and make the mortgage payments to your lender.
• Sell your home and pay off the loan amount due.
• Borrow money from a relative or friend to bring your payments current.
• Get protection under the Service Members Civil Relief Act (SMCRA).
• Enter into a Deed In Lieu of Foreclosure or "friendly foreclosure."
• File for bankruptcy protection to stall the foreclosure process.
• Sell your home in a "short sale" if the lender will accept a discounted payoff for the outstanding mortgage due.
• For more information about foreclosure laws in your state visit http://www.foreclosurelaw.org

For homeowners struggling to make ends meet or who can no longer afford to keep their mortgage current, there are options!  A qualified REALTOR® can help you realize those options, whether it be a loan modification, short sale, or other type of government relief.  I would love to discuss your options with you, or if you know someone that could benefit from a consultation, please let me know!  

I'm never too busy for any of your referrals!