Florida Mortgage Lenders and Florida Realtors

/in , /by

I had the opportunity to be a guest blogger for a well-respected Florida mortgage broker.

While Brian Forrester is vigilant about everything that impacts borrowers and the mortgage industry, he really remains connected to what is happening in the real world and what home buyers and sellers and Realtors face every day.

If you need an excellent Florida mortgage lender, let me know and I’ll be happy to connect you…here’s a link to my guest post about this buyers’ market!

Don’t Sell Yourself Short

/in , , /by

In any buyers’ market, the quest for the best deal is foremost on the property seeker’s mind. But there are many misconceptions about what constitutes a great opportunity.  Just because a home is listed as a “short sale in Trinity!” does not mean it is your best option. And the same goes for bank owned properties; on all fronts, buyers need to be very sure about what they are getting themselves into.

Short Sales in Trinity – Pricing vs. Value

For instance, a “short sale” does not mean it is listed at a better price than other homes in the neighborhood. The lender wants to recover as much of the money owed to them as possible, so the amount they agreed to accept from a buyer is typically pretty much in step with fair market value.

Besides, there are a ton of motivated sellers on the market whose homes are priced as well as any short sale. The difference to the potential buyer is that these sellers are adjusting their prices commensurate with market fluctuations. Today’s short sale property could potentially be worth less after the three, six, twelve months that it can take to get the contract to the closing table.

Property Condition

A short sale property may not be receiving the best care. Since the seller is likely encountering financial difficulties, they may be prohibited from consistently maintaining  it.

And if you go down the road of a bank owned home, you won’t have benefit of a real live seller with whom to negotiate repairs; and the pool, roof, and lawn may not be in the best condition. You are instead dealing with a financial institution that is backed by a battery of attorneys; your list of repairs and your concerns are inconsequential.

Short sale or bank owned — you may not just be capitalizing on someone else’s misfortune; you may very well be inheriting a headache, tread cautiously.

Short Sales Specialists

/in , /by

flowers

While being a specialist was once a term reserved for the medical profession, it now applies to the real estate industry. And the simple reason is that it has become complex.

Success in the short sale and foreclosure arena demands an understanding of the laws and the negotiation tactics specific to these transactions.  

Typically, buyers and sellers select an agent based on reputation and compatibility; but if you’re dealing with a short sale or a foreclosure or are looking to obtain advice on how to proceed with either, you need to make sure that the Realtor you select has the appropriate accreditations.

Realtors who seriously want to offer effective short sale and foreclosure services now pursue a focused course of education to earn approval as a Certified Distressed Property Expert.

Realtors with CDPE accreditations are specifically trained in all the issues that can derail these types of transactions and how to keep them on track. They also receive education in the techniques that allow them to operate as a true advocate to guide their client through the intricacies of these unique processes.

Don’t Sell Your Home, Exchange It!

/in /by

st george in trinity

A tremendous tax advantage that is often overlooked when buying property is the tax deferred opportunity commonly known as a 1031 Exchange. While the guidelines are very specific, they are relatively simple to manage.

Basically, a 1031 exchange allows the buyer to strategically sell a qualified property and buy another within a specific timeframe. Since the IRS views the transaction as an “exchange” and not a sale, it permits the taxpayer to defer the capital gains tax on the property they sell.

We are seeing more and more clients taking advantage of this opportunity; it is not a complicated process, it just has its own set of ironclad rules.

When can you do a 1031 Exchange?

  • If you plan on acquiring a replacement (or what is commonly referred to as a “like kind”) property after selling an existing investment property
  • If the total purchase price of the “like kind” property is equal to or greater than the total net sales price of the existing property you are selling
  • If all the equity that you receive from that sale is used to acquire the replacement “like kind” property

How are the monies handled?

The proceeds from the sale of the investment property must be held by a “qualified intermediary” and do not get handed over to you or your Realtor. These funds are in a sense “escrowed” pending application to the purchase transaction.

What are the 1031 Exchange Timelines?

There are two:

  • The Identification Period – You must identify a selection of other replacement properties that you wish to buy. This period is exactly 45 days from the day that you sell the property; no exceptions.
  • The Exchange Period – This period ends exactly 180 days after the date that you close on the sale of the home (or is the due date that your federal tax return for the year in which the transfer of the property has occurred, whichever situation is earlier). This is the time period you have to finalize your new purchase transaction.

Please note that while none of these time frames are negotiable, it is a very clear cut process that can save you an extraordinary amount of money and even adds more appeal to this buyers’ market.

An Emotional Real Estate Market

/in /by

P4120033

Every market is inundated with percentages and statistics and predictions. In the real estate market you’ve got yet another layer comprised of: information about available inventory, the interest rates, hurricanes, and tax incentives.

The icing on these layers of course is the emotional component that comes into play. Some sellers think their property is not regarded highly enough, while some buyers think they are getting ripped off. We’ve unfortunately seen negotiations fall apart over some pretty minor things because feelings get involved.

Not to mention, if you’re a buyer in today’s market you may be under the impression you can easily move on to the next property. It is not always that simple anymore. You would think that buying and selling property would be a fairly simple transaction; well, it used to be. But there are many stars that need to align these days to get the deal done. All the new laws and guidelines (most of which were put in place to protect people), have had far reaching ramifications that can complicate the process to the point of impeding it.

What I’m trying to say is: if you’re a buyer and have found a home you love or you’re a seller and have found a buyer that is qualified – you should try to work it out with both parties under the expertise of your realtors and the lender. Emotions get in the way too often. If you are fortunate enough to have found one another, try to stick together because you may be hard pressed to find someone else to meet over a conference room table anytime soon.

While no one should settle for a sale or a purchase unless it is really right for them, I’d like to suggest that you may regret it if you give up on the deal too easily for the wrong reasons.