Vero Beach Real Estate – Distress Sales

July 2nd, 2009
I can be argued that anyone who has their home on the market now
is a motivated seller. Why don’t they just wait a while for home prices
to recover and avoid losing their equity? Many reasons actually:
-Death, Divorce, Job loss, Health Issues ect……
-Relocating and don’t want to manage a rental from afar
-An Opportunity elsewhere – lose here, gain there
Whatever the reason, it creates an opportunity for the Vero Beach home buyer.
Many potential home buyers do not want to deal with some of the issues
that can arise when a home must be sold as a “short Sale or is a foreclosure:
- Lengthly response times from the lender to a purchase offer
- Deffered maintenace because of the seller’s financial situation
- The need to make repairs, some of which can make financing difficult
By carefully analysing the time on the market, prior sales history,
comparable sales and current value, these bargain homes can be found.
Buyers who limit themselves to just foreclosures or short sales are
missing a good portion of the current market of Vero Beach homes for sale.
Many buyers today are not realistic about the price they will pay for a
home. Perhaps they watch too many late night TV infomericials claiming you
can buy homes for a few thousand dollars. The lowest price is often
determined by the potential cashflow to an investor. The recent sales increase
in 3/2 homes under $100k has been driven by investor purchasers seeking
a decent return on their investment.
There is also a common misconception that lenders will do anything to avoid
a costly foreclosure situation. The truth is that they are partially
insured against some losses and will write off others. They have a very
good idea of current value from their selling agents and price accordingly.
Lenders are motivated to sell quickly, since they must stay below a predetermined
ratio of good to bad debt, but are still targeting close to value.
Whether a home is a distressed sale, short sale or foreclosure, an informed and
prepared buyer will always get the best deal! Studying the market, analysising
specific properties and pre-qualifying with your lender are critial components.
I can be argued that anyone who has their home on the market now
is a motivated seller. Why don’t they just wait a while for home prices
to recover and avoid losing their equity? Many reasons actually:
-Death, Divorce, Job loss, Health Issues ect……
-Relocating and don’t want to manage a rental from afar
-An Opportunity elsewhere – lose here, gain there
Whatever the reason, it creates an opportunity for the Vero Beach home buyer.
Many potential home buyers do not want to deal with some of the issues
that can arise when a home must be sold as a “short Sale or is a foreclosure:
- Lengthly response times from the lender to a purchase offer
- Deffered maintenace because of the seller’s financial situation
- The need to make repairs, some of which can make financing difficult
By carefully analysing the time on the market, prior sales history,
comparable sales and current value, these bargain homes can be found.
Buyers who limit themselves to just foreclosures or short sales are
missing a good portion of the current market of Vero Beach homes for sale.
Many buyers today are not realistic about the price they will pay for a
home. Perhaps they watch too many late night TV infomericials claiming you
can buy homes for a few thousand dollars. The lowest price is often
determined by the potential cashflow to an investor. The recent sales increase
in 3/2 homes under $100k has been driven by investor purchasers seeking
a decent return on their investment.
There is also a common misconception that lenders will do anything to avoid
a costly foreclosure situation. The truth is that they are partially
insured against some losses and will write off others. They have a very
good idea of current value from their selling agents and price accordingly.
Lenders are motivated to sell quickly, since they must stay below a predetermined
ratio of good to bad debt, but are still targeting close to value.
Whether a home is a distressed sale, short sale or foreclosure, an informed and
prepared buyer will always get the best deal! Studying the market, analysising
specific properties and pre-qualifying with your lender are critial components.
I can be argued that anyone who has their Vero Beach home for sale now is a motivated seller. Why don’t they just wait a while for home prices to recover and avoid losing their equity?

Many reasons actually:

-Death, Divorce, Job loss, Health Issues ect……
-Relocating and don’t want to manage a rental from afar
-An Opportunity elsewhere – lose here, gain there
Whatever the reason, it creates an opportunity for the Vero Beach home buyer. Many potential home buyers do not want to deal with some of the issues that can arise when a home must be sold as a “Short Sale” or is a foreclosure:
- Lengthly response times from the lender to a purchase offer
- Deffered maintenace because of the seller’s financial situation
- The need to make repairs, some of which can make financing difficult
By carefully analysing the time on the market, prior sales history, comparable sales and current value, these bargain homes can be found. Buyers who limit themselves to just foreclosures or short sales are missing a good portion of the current market of Vero Beach homes for sale. Many buyers today are not realistic about the price they will pay for a home. Perhaps they watch too many late night TV infomericials claiming you can buy homes for a few thousand dollars. The lowest price is often determined by the potential cashflow to an investor. The recent sales increase in 3/2 homes under $100k has been driven by investor purchasers seeking a decent return on their investment.
There is also a common misconception that lenders will do anything to avoid a costly foreclosure situation. The truth is that they are partially insured against some losses and will write off others. They have a very good idea of current value from their selling agents and price accordingly. Lenders are motivated to sell quickly, since they must stay below a predetermined ratio of good to bad debt, but are still targeting close to value.
Whether a home is a distressed sale, short sale or foreclosure in Vero Beach Fl, an informed and prepared buyer will always get the best deal! Studying the market, analysising specific properties and pre-qualifying with your lender are critial components.

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Vero Beach Ocean Drive Redevelopment Will Improve Property Values

December 18th, 2008

The ongoing redevelopment of the beachside retail and commercial district will have a great positive impact for the value of residential areas on “Central Beach”in Vero Beach Florida. The recent rebuild of Sexton Plaza, the addition of several upscale hotels, and the planned improvements at Humiston Park will increase the appeal of a central beach address.

Vero Beach Real Estate owners and residents alike will benefit from the great selection of retail on Ocean Drive and many fine restaurants. With easy walking access to the beach and many opportunities for shopping and dining, central beach will once again be the place to stay.

The opportunity for investors and prospective homeowners is the recent decline in the price of property listings. The are several current listing for single family homes under $300,000 and condos under $200,000. Although these listing may need updating and or renovation, these prices haven’t been seen since 2003.

Now is the time to take advantage of a great selection of homes for sale, a strong buyer’s market and historically low interest rates!

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Vero Beach Foreclosures and Short Sales

November 30th, 2008

The recent decrease in home prices in Vero Beach, Sebastian and through out Indian River County is partially due to short sales during pre-foreclosure. Bargains seen in Bank owned properties that have gone through the foreclosure process are also spurring buyers and Investors to act.

Distressed properties are typically sold at 2 different stages of the Vero Beach foreclosure process.

Pre-foreclosure – when the seller is behind on payments and owes more than the home’s value, the lender may accept less than the loan payoff, a “short sale”. Public notice of this situation is made by filing a Lis Pendens

Post-foreclosure – is after the bank takes title and markets the property, also called an “REO” (lender owned) property. I have extensive experience with both stages and will explain the pros and cons of each approach.

Short Sales – since the home is usually occupied, it is being maintained and likely to be in better shape. The short sale process is still evolving – many lenders are overwhelmed and unable to respond to offers in a timely manner. This approach requires a great deal of patience from the buyer since the time from offer to closing can be 3 months or more.

Lender Owned – the property is usually listed with a Real Estate Broker and the process of buying is far more efficient. Although you are still dealing with a lender (not unlike a bureaucracy), this system has been in place longer. The downside is that the home has often sat vacant and is in need of repair. I always recommend a professional inspection regardless of outward appearance.

Sign up for my Foreclosure Watch List for Vero Beach, Sebastian and Indian River County by filling out the criteria form. It’s free, customized to your areas of interest and I won’t even ask for your phone number!

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Why use a Buyers Agent for Your Vero Beach Home Purchase?

November 30th, 2008

Whether it’s your first or 50th home, real estate is a complex and major transaction. Be aware that when you are looking to purchase real estate in Vero Beach FL, the listing agent works for the seller, not you the buyer. The best way to be certain that an agent is working in your best interests is by signing a buyer representation agreement with your own agent.

A buyer’s agent represents the buyer who is purchasing property in a real estate transaction. Research by Vero Beach Real Estate Agents has shown that when a buyer’s agent is used, the prospective buyer found a home one week faster than consumers who did not.
The buyer’s agent works for, and owes fiduciary responsibilities to, the real estate buyer. This is especially important when buying  Vero Beach Foreclosures and Short Sales. A buyer’s representative will:
1. Evaluate the needs and wants of the buyer and locate properties that fit those specifications.
2. Assist the buyer in pre-qualifying for financing, and show properties in that price range.
3. Assist in viewing properties by accompany the buyer on the showings.
4. Research the selected properties to identify any problems or issues.
5. Advise the buyer on structuring an appropriate offer to purchase the property.
6. Present the offer to the seller’s agent and the seller on the buyer’s behalf.
7. Negotiate on behalf of the buyer to help obtain the identified property.
8. Assist in securing appropriate financing for the selected property.
9. Fully-represent the buyer throughout the real estate transaction.

The Buyer Representation Agreement

It is important for the buyer to discuss the buyer’s agents compensation in the initial interview. It is typically paid by the seller as a percentage of the sale price. Terms may vary depending on the requirements of the buyer, be they a prospective home owner or an Investor buying Florida beach foreclosures. The agreement should spell out the responsibilities of both parties throughout the real estate process.

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Vero Beach Home affordability at highest level in four years

November 30th, 2008

With home prices decreasing and interest rates holding at historically low levels, the number of potential homebuyers who can afford to buy new and existing homes has reached the highest level in more than four years.

According to the third-quarter statistics, 56 percent of all new and existing homes sold were affordable to families earning the national median income of $61,500 – far more than the 40 percent of families who could afford Vero Beach homes at the peak of the housing boom.

“If there is a silver lining to this crisis, it would be that some housing markets have become more affordable with a larger inventory to choose from,” said NAHB Chairman Sandy Dunn. First time home buyers can benefit from a $8,000tax credit due to expire next spring. Investors are also returning to the market in anticipation of increasing home prices and interest rates.

Vero Beach, Fl realtors are citing a Manpower Employment Outlook Survey that predicts growth in construction, manufacturing and retail jobs. Balmy weather, low property taxes, and a cost of living 3 percent lower than that of nearby West Palm Beach make this coastal town an affordable alternative, with sandy shores and the best surfing on the East Coast. Foreclosures and Short Sales may be driving the lower home prices and increase in sales of Vero Beach houses.

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Vero Beach – Finding a Niche Market for Successful Real Estate Investing

November 30th, 2008

Creative investors are profiting from a new housing niche – no longer are they buying, repairing and “flipping” homes to the retail market. They are taking a longer term approach to allow the market to recover and profit in the interim by offering financing. With a record number of Foreclosures and short sales in Vero Beach Fl, there are many opportunities to invest in.

There are buyers in every market, the only problem is many good buyers won’t qualify for a bank loan under the new lending guidelines. Some investors are deciding to hold the mortgage themselves for up to five years. By doing so, they make some extra money and ensure the sale of their rehabbed property went through. At 8 percent interest, an investor can plan to make an extra $10,000 in interest in addition to proceeds from the sale of the house.

While you may have buyers that many banks would probably reject, and take a smaller down payment than most financial institutions, you can sell for more in any market. Find somebody with halfway decent credit and a steady job, write a binding legal contract, and be sure the home is properly insured. Even though you are charging higher interest, you are offering homes that buyers can afford, something most banks didn’t do before with sub-prime mortgages.

Lou Harris a Vero Beach real estate agent, said that in today’s tough housing market, offering homes with owner financing gives sellers an edge. “Depending on the area, it can be critical and the difference between making a sale and not,” said Harris, who advises investors on Vero Beach foreclosures and short sales.

Owner financing in 2006 was part of the sale for one in every 400 properties sold in Indian River County. That jumped to one in every 50 this year, and that number will grow as the inventory of Vero Beach houses declines during the next few years.

Harris said that while the market has been a tough road for sellers these past couple of years, there is a niche that owner financing will fill. “I think it’s potentially a good system,” he said. “ The investor is getting a decent return on his money and it’s safer than the stock market. I think it’s a fabulous strategy.”

But buying a home cheap, fixing it and selling it by holding the mortgage isn’t for everybody. Sellers need a reliable source of discounted properties and the equity to buy. Sellers should also make sure they have all the financial documents in order, such as proof of buyers’ income, tax returns and credit history, in case the seller wants to sell the mortgage one day to another investor.

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