Pricing a short sale - A buyer's perspective.

The Brevard County Florida market has plenty of "short sale" and pre-foreclosure properties listed for sale. There are a number of bank-owned or REO properties as well.

As a buyer, how do you know what the appropriate offer price would be? First of all, there is no good rule of thumb. Every property has variables impacting pricing which is different from the next (unless they are in the same neighborhood).

It would be nice to think fifty cents on the dollar owed on the mortgage. If it were only that simple!

In my opinion (and that is what this blog is about) your first consideration should be the "why" answer.

Why are you considering the purchase? If it is for an owner occupied property then the answer may be different than the investor "why."

An investor may be looking to "flip" the property although that may be a little risky in this current market. An investor may be looking for a rental property. After all, rentals are pretty popular right now. A rental property that can be purchased at a reasonable price my create a break even income or maybe a profit. In a few years the market will turn around - it always does - then the property may be "sell able" at a nice profit.

Of course, investors know all this stuff!

So the answer to "why" is your first clue in determining an offer price. My experience in the Viera, Suntree and Rockledge area is that the short sale properties are listed are really reasonable prices already.

Consult your real estate agent about pricing. Even though it is a "distressed sale" taking a look at the comparable properties is still necessary!

If you are interest in Brevard County short sales (especially Viera, Suntree and Rockledge), please give me a call. Drop me an email to agent@moving2brevard.com.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.

What makes a good "short sale" buyer...

Seems that a day does not go by that I do not receive an inquiry regarding short sales. Most of these inquiries are folks who have heard about the great deals available in the short sale market.

There are some very attractive deals in the Viera, Suntree and Rockledge areas of Brevard County Florida in "short sale" listings! But, not all buyers are ideal candidates for a short sale pursuit.

What makes a good short sale buyer?

First of all, flexibility is key. A flexible schedule is a must. Why? Because in short sale situations a "third party" approval is required. Short sales involve situations where the probable sales price will be less than monies owed therefore the lender must sign off on the offer. This can tale up to 60 days or even longer. So, if your time is pretty fixed, a short sale may not be the best route for you. [A "normal" transaction usually takes at least 30 days unless you are a cash buyer!]

If you have the cash to put down, a mortgage lined up, a willingness to possibly "start all over" if the offer is rejected (or someone else gets the deal), and patience...then you sound like a good candidate for the short sale market.

If you would like information on short sale opportunities in the Viera, Suntree and Rockledge area, please give me a call or drop me an email. I would be happy to email you some listings and answer any questions you may have on short sales.

There are currently 68 properties in Viera and surrounding communities listed as short sales with prices from $99,000 to $1.3 million!

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida. I can be reached by phone at 321-255-2600 or email me at agent@moving2brevard.com.

Short Sale Market Report for Brevard County Florida

Just wanted to post an update report on the "short sale" market in Brevard County Florida as of May 31, 2008.

A short sale is a property that is listed for sale where the probable selling price will be less than the monies owed the lender. These sales require the lender (third party} approval on any offer.

A search of the Brevard MLS system for listings showing "short sale" as a condition revealed 989 properties listed as of today. A check of the "pending" short sale listings shows 204 properties (single family homes) awaiting approval. According to the MLS report there were 42 short sales that closed in May 2008.

As I work primarily in the Viera, Suntree and Rockledge areas I checked to see the short sale activity in those central Brevard County areas. As of today there are 101 single family homes listed as for sale with "short sale" as a condition of sale. There were 30 short sales listed as pending at the end of May 2008. During the month there were 5 short sales that closed in the Viera/Suntree/Rockledge area.

So, of the 481 single family homes that sold during May 2008 about 9% were short sales. With the opportunity that short sales present it is hopeful that the lenders will make decisions quickly so it becomes less uncertain to pursue a short sale.

If you would like information on the short sale market in Brevard County, Florida, please feel free to contact me at 321-255-2600 or by email agent@moving2brevard.com .

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.

Folks are buying...and not just short sales!

In Brevard County Florida there were about 470 single family homes sold in April 2008. Of these, according to the local MLS system, there were 30 sold properties that were listed as "short sales."

I was really surprised by the low number of short sales. Some of these short sales are priced very attractively. The positive news for sellers is that there were over 400 sales that were not short sales.

As of today there are just over 1,000 listings that are noted as short sales. That leaves another 6,000 listed that are not short sales! There are 110 properties in the Viera, Suntree and Rockledge area listed as short sales (3 sold in April). Of course once these short sale properties are sold, or the inventory reduced, they will continue to impact the "fair market" pricing for other properties.

So, although the market does have a high inventory of short sales in the market, a lot of other homes are selling. That is good news for sellers...although I will admit the homes that are selling are priced a lot more competitively than in years past! Price it right and there are buyers in the market!

Interested in buying or selling in the Rockledge, Suntree, and Viera areas of Brevard County, Florida? Please give me a chance to be your Realtor of Choice.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.

Foreclosure Properties in Brevard County Florida

I read this afternoon on the Florida Today web site that 1 in 97 Florida homes is in some stage of the foreclosure process. Although this does sound alarming this also brings to light the opportunities that are in the market place!

I do not wish anyone to lose their home. I do not wish for anyone lose the "American Dream" of home ownership. For those in the process there are steps some are taking with the lenders to mediate the problem. If you are in a situation where you are behind or unable to make payments, please call your lender's loss mitigation department. Lenders do not want own real estate - at least not in this market!

Many of these pre-foreclosure properties are listed for sale on the MLS system here in Brevard County. Many are classified as "short sales." A short sale is a situation where the sale price is likely not to cover the monies owed. In these cases the sales process will require third party approval (the lender's approval). This process is not a quick so if you have time....check it out.

In the Suntree, Rockledge and Viera areas of Brevard County there are about 110 properties listed as requiring third party approval. That is quite a few choices! The prices range from around $100,000 to $1.3 million although most are probably under $250,000 (about 75 listings!).

I can provide information on any area of Brevard County if you are interested in short sales or pre-foreclosure properties. Just drop me an email to agent@moving2brevard.com and let me know the area (Palm Bay, Cocoa, Merritt Island, etc.), the price range, number of bedrooms and any other pertinent information.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.

Do you own your house? or Does your house own you?

Does your house own you or do you own it? That is a real question for some in today's real estate market. I keep reading all these stories in the newspapers about foreclosures and short sales. I see listings where the home's value is obviously about 60% of the mortgage owed.

What does an owner do when they are making payments for another 25 or so years on a house that is worth very little. Most face up to the reality and go forward. They know that over the long run the market will come back. The home's value will appreciate, eventually. A house is where you make your home not to be viewed only as an investment!

Then there are the situations where life throws a curve ball. There is a serious illness in the family. A death in the family where someone has passed away. There is a job loss or the "new" job" pass so much less. Circumstances of life just seem to be making you feel as if the house owns you. The ability to make mortgage payments is jeopardized. The resources to maintain the home are not there. Even if you make the payments, repairs can not be made.

Sometimes you reach that point where there seems to be no solution. There may be a solution and and it needs to involve the mortgage lender. Contact the lender's loss mitigation department? Discuss the options openly and ask for some type of loan readjustment. Ask about some type of loan forbearance. See what the options are from the lender. In a worst case situation I would ask about consideration for a short sale (selling for less than the mortgage amount owed).

There are options and each one has its advantages. In my opinion the most important thing is to prevent a foreclosure proceeding!

If you are facing some tough challenges and a short sale may be a consideration, please feel free to contact me if you are in the Viera, Suntree and Rockledge are of Brevard County, Florida. I don't have all the answers but I will give you my honest opinion!

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne Florida.

"Short Sale" Market Report for Brevard County March 2008

Another month has come and gone in Brevard County Florida so what does the short sale market look like now? I was showing properties to a buyer client last week and I used the term "short sale." That was when she stopped me. Those of us in the real estate business sometime forget that not everyone knows our terminology. After a quick apology I explained the short sale process.

Briefly, a short sell is a situation where the probable selling price will not cover the mortgage amount owed a lender. Many lenders would rather sell "short" of the mortgage payoff to minimize their losses. Of course, there are usually extenuating circumstances so this is not a case where a seller just decides to sell at a loss!

A couple of points about the short sale....third party approval is required and the process can be lengthy. A normal sale is usually closed within a month or 45 days of the contract date. Obtaining lender approval is not as quick. An agent in my office just got an acceptance from the lender today. Her buyers had submitted the offer over 60 days ago! So, patience is required!

As of today there are 811 properties listed as short sales requiring third party approval. As I specialize in the Viera, Suntree and Rockledge areas this will give you a snapshot of those central Brevard County areas.

Currently there are 87 properties in those areas listed as short sales. The list prices for these range from $89,000 to $1,300,000. Many of these properties are newer construction properties with 50 built after 2000 ( 21 are 2006 and 2007). The Viera area is a relatively new planned unit development and about 50 of these fall into that specific area.

Short sales present opportunities for buyers who have the time and money to pursue them. If you would like information on specific listings and prices, send me an email to agent@moving2brevard.com .

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne Florida.

There is no Cookie Cutter Short Sale Recipe

I attended another "short sale" training session yesterday. Why? Because every session I attend gives me insight into the process. And it reaffirms my existing opinion that there is no cookie cutter recipe for a short sale.

I have heard so many different things as well as read various expert opinions on the short sale process. Likewise, my experience has been different than some I have heard or read about.

Some lenders say they will not consider a short sale unless the borrower is behind in mortgage payments. Some apparently will consider short sales even before the borrower is delinquent. Some lenders will not consider a short sale option until an offer/contract from a buyer is presented with the request. Apparently some lenders will consider the request before the property is listed for sale.

Who knows for sure? Each lender is different. I even heard the staunch anti-short sale lenders such as SunTrust will now consider short sales. At least that is the rumor.

In my opinion why would any lender not be willing to consider a short sale?

• Given the choice between a short sale and a foreclosure why not cut your losses? A foreclosure costs money.
• A foreclosed property has the potential of being vandalized or damaged in some way.
• Foreclosure properties have the reputation of being distressed properties which sell for less.
• When a homeowner is not making payments, the lender has to cover tax payments. Banks are in the business of lending money...not owning real estate.

So, why not accept a short sale?

Although the time period for completion of a short sale is very often from one to three months or more, they are an available option for sellers and buyers. So, patience is required in a short sale transaction!

Desire information on short sales in Brevard County, either as a buyer or seller? Please feel free to contact me to discuss your circumstances. Be aware that I am a real estate agent and not an attorney or accountant. For that type of advice, please consult the appropriate professional.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.

Short Sale Decisions...when will they come?

I was speaking with another agent in my office yesterday. She has been diligently working with a lot of "short sale" purchasers lately. I inquired about her progress. Her response....

"short sales are a pain..."

Having worked a few short sales previously I understood what she was saying. You find the buyers. You find the right property. You negotiate the deal with the "seller." You get the offer forwarded to the lender. You wait...and wait...and wait...

Short sale decisions do not come quickly, usually. Even when all the preliminary work is done, the documentation presented to the lender, and lines of communication established...decisions take time.

Sometimes the lender calls to say they have another offer. Do they really? I wonder.... Sometimes the lender's decision makers are in Kansas and the property is in Viera or Suntree Florida. [Toto we are not in Kansas...was that Dorothy in the Wizard of Oz?]

Short sales are good opportunities for buyers. If you are a seller and facing a hardship, don't lose your home to foreclosure. Talk with a lender about loan modification. Talk to your lender about a short sale. Want me to discuss the possibility of a short sale with your lender, email me at agent@moving2brevard.com .

Gary Waters, Florida licensed real estate agent serving all of Brevard County Florida and specifically the areas of Viera, Suntree, Rockledge, and Cocoa.

Still Busy doing BPOs

I did a couple of new Broker Price Opinions (BPO) this morning, actually over the course of a couple of days. These were both in the zip code 32940 which is primarily Viera and Suntree (north Melbourne) Florida.

Homes in these two areas are almost always nice and of newer construction. Such was the case for these two properties. Let me tell you, the competition is keen for active , "for sale" properties. Finding comparable "sold" properties is getting more and more challenging. And, the eye opener?

Prices are so low....!

I have submitted both of these price opinions. When I submit BPOs I submit three active "for sales" and three "solds." I wonder if I will get questions....why the price opinion is low. My response - it is a buyer's market, lots of homes for sale, really, really cheap! There are lots of short sales and foreclosures in Viera and Suntree!

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida.

Short Sale or Pre-Foreclosure or Foreclosure? Which is best buy?

Yesterday I attended a short sale seminar sponsored on by North American Title Company of Melbourne Florida. As short sales is a big topic among real estate buyers and sellers these days I found this very enlightening.

I have worked with sellers who had to sell their homes as a short sell. I have worked with buyers attempting to purchase short sell properties. Having worked both sides of the transaction Ioan tell you - it is a lot more challenging than any "normal" transaction.

I have shown properties that were listed as short sales, pre-foreclosures and foreclosures. By and large the property that was the most "move in" ready was the short sale.

An interesting thing I have noticed about foreclosure properties. They are vacant. The electricity and water are usually turned off. The appliances are usually missing. I have seen the sinks, vanities, garage door opener, water heater, air conditioner, interior doors, and other items missing. Sometimes vandalism is an issue. Sometimes the owners remove items before moving out. Regardless, foreclosures are usually not never in good condition once the owner leaves!

What about short sale properties? Well, usually the owner is still living in the home. The owner has a vested interest in getting the most for the house. The owner still has an emotional attachment to the property. The owner is trying to make the best of a difficult situation. The owner still cares!

The property that makes that sense from my experience is choosing the short sale over the foreclosure. Why? Again, people care. Who are the "people?" The owner, the lender, the seller's agent, everyone involved. Once a foreclosure is bank owner, who cares? Some lender in some state perhaps thousands of miles away? Not really. Sure, there is an employee somewhere but do they really care? I doubt it!

Want to know more about short sales? Want to see what is for sale in the Brevard County short sale market? Please email me with your interest and I will gladly send you the listings.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne, Florida serving Viera, Rockledge, Suntree, Melbourne and all of central Brevard County. Email me at agent@moving2brevard.com or phone me at 1-321-693-3850.

Does "Short Sale" mean the same as "Quick Sale?"

I spoke with a potential client yesterday. We discussed the Brevard County market and because she has some time I asked her about short sales. She was not familiar with the term which does not surprise me at all. Sometimes those of us who deal with real estate every day fail to remember that others are exist in a world outside of real estate.

She had been looking at MLS entries and seeing them described as a "short sale." She thought maybe that referred to accelerated closings or something. Get a quick closing thus a short sale - sounds logical, doesn't it?

If this were only true...So, what is a short sale?

Simply put, it is a situation where the likely sales price of the property will be less than the money owed to the lender. Short sales are great opportunities for those who have the time. Since bank or some other third party approval is required, these deals take time - and patience!

The time required may be as short as a month but I would allot about 60 days for the deal to close...after a contract is negotiated.

The approach to a short sale is the same as any other home purchase. You view the property and negotiate (through your real estate agent) with the seller (through their real estate agent). Once an agreement on a contract price is reached then the offer is transmitted to the lender.

Once approved by the third party, the closing can go forward.

Short sales are not fire sales! They are homes that are attractively priced to move - even in a slow market. As such, they are potentially great opportunities for those with patience, money, good credit and knowledge! By the way, there are short sales at all prices from the $100,000 mark to the million dollar range!

Interested in the "short sale" market for Brevard County Florida? Email me for information. Interested in the Suntree, Viera and Rockledge short sale market? Email me. Or, call me at 1-321-255-2600 or 321-693-3850 direct, email agent@moving2brevard.com .

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne Florida.

Condo and Town House Short Sale Opportunities in Viera, Suntree and Rockledge Florida

I wrote a short post yesterday on single family home short sale opportunities in the Viera, Suntree, and Rockleldge Florida areas. I really had an unexpectedly large number of reads for this post and even a couple of inquiries.

Because of all the interest shown in the short sale opportunity in Brevard County Florida I decided to take a look at the short sale listings in this same area for condos and town houses. In case you did not read yesterday's post there are 77 single family property short sales in the area from Suntree to Rockledge. If you are familiar with the area you know that Viera is right in the middle of those areas.

There are only 20 condos listed as short sales in the same area. I really expected this to be a higher number. With all the newer construction I suppose the builder's still own a lot of the vacant units. There has been a lot of new condo construction over the past few years. But given the state of the market this smaller number is a positive for sellers!

The price range for these short sale listings is $85,000 to $240,000. One of the nicest units I saw listed was a 4 bedroom 3 bath, 2 car garage unit with 2,292 square feet living area at $228,000. That sounds awfully enticing for a 2005 built unit!

I have said it before but it needs repeating...short sales usually take time and requires patience!

If you would like information on the short sale opportunities in Melbourne Florida and the surrounding areas of Viera, Suntree and Rockledge, please drop me an email or give me a call. Want me to email listings, just send me an email with what you are looking for including the area of the county. I have business associates who specialize in other areas so if your desired area is south or north, please let me know.

Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Melbourne Florida. I can be reached at 1-321-255-2600 or 1-800-651-6940 (office) or by email to agent@moving2brevard.com .

Please read my other blog at www.activerain.com/blogs/gwatersc21 and visit my web site http://www.moving2brevard.com/ .

The Amazing Price is Possibly Real!

The mass media has a way of moving or, at least shaping, the public perception of nearly anything. Take a look at the presidential primary candidates and the upcoming "Super Tuesday" process. The media, pollsters, pundits, and others are all out there trying to shape the public's view of their particular candidate.

Such is true in the real estate markets regardless of location. I see info-mercials touting the rewards of buying at tax auctions. Some are pushing you to buy their book on how to do whatever. I saw one web site that basically said that people will fail but systems don't fail. I guess he was selling a fool proof system. Either way, someone is always trying to sell something.

I am a real estate agent and I do sell real estate to willing buyers on their timetable at their desired price.

Now the real estate market in central Florida appears to be down. Unfortunately, selling and buying real estate is not always a win-win situation for both sides of the transaction.

In the current environment there are people who find themselves in very challenging positions. They face the possibility of foreclosure. The market has shifted and they now owe more money on a home than the market is willing to pay. As we all know, the market sets the sold price, not the seller. Sellers may advertise a price but ultimately the market (read that as buyer) sets the real price.

Such is the case with "short sales." Properties listed as short sales are those where the market price will more than likely be less than the monies owed. Realistically, some of these are opportunities for buyers. No, the seller may not make any money but they do get out of a bad situation. And, the buyer is in a position to purchase a nice property at a fairly nice discounted price. And, at some point, will probably sell for a profit when the demand increases. So, if you have the cash this may be a chance to capitalize on the short sale market. One key point to remember, the owner may sign off on your offer but ultimately the deal is subject to bank approval!

If you would like information on short sale opportunites in Viera, Suntree and Rockledge, Florida, please feel free to contact me at agent@moving2brevard.com . Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty Melbourne, Florida.

Over the past week I have completed several broker price opinions for different lenders. If you are not familiar with the terminology, let me explain. Before a home goes into foreclosure or to a "short sale" the lender wants to have an estimate of the real value of the property.



As a real estate agent I am not an appraiser so I do not perform an appraisal. I only look at comparable values and give an opinion of value. Regardless, the point of this is there is a tremendous amount opportunity in Brevard County Florida when it comes to short sales.


Last month there were somewhere around 500 properties listed in the Brevard MLS system with short sale as the reason for sale. Folks are in trouble. For various reasons the various sellers need to sell. Because the property values have declined so much, the opportunities are there to buy for less than the mortgage owed.


Unfortunately, the seller's loss and the lender's loss are now the buyer's gain. If you would like to look at the opportunities for great real estate deals in Brevard County, Florida, let me know. I would certainly welcome a chance to be your real estate agent in Brevard County Florida.


I want to be the Realtor of Choice for Viera, Suntree and Rockledge Florida!



Gary Waters, Florida licensed real estate agent, serving buyers and sellers in Viera, Suntree, Rockledge and Melbourne Florida! Contact me at my office: Century 21 Baytree Realty, Melbourne Florida. Call me at 1-255-2600 (office) or email me at agent@moving2brevard.com .

Please read my blog at www.activerain.com/blogs/gwatersc21 .