Florida Short Sales Buyer Beware

The short Sale process is rapidly becoming a bad term in Northwest Florida. In areas like Destin, Panama City Beach, Santa Rosa Beach and Navarre Beach, Realtors are even hesitant to list or show them because the majority have little chance of becoming anything other than a future Foreclosure. It has become a game of cat and mouse with sellers trying to walk away from their obligation and the banks attempting to hold them to it while preserving and getting the most for their Real Estate. I mean, who can blame either side in this process. The sellers are looking to preserve their future and the banks have no idea what to do with the property. There are many problems that I will outline and everyone should read closely if you are thinking about purchasing, selling or renting a short sale. The first problem with a short sale is that sellers have somehow been told that they can sell their home for less than they owe and walk away clean. Nothing could be further from the truth in most cases. I see many people who can actually pay for the home but choose to try to short sale rather than meet the obligation. This is a problem on many fronts but the most glaring are the false numbers it puts in the market. A buyer will call me and say , I found an unreal buy on this short sale and send me the property to look at. Usually after careful data crunching I soon realize that some Realtor has badly underpriced the property to which no bank will approve the deal in the first place even if you offer full price. A bank is going to look at an appraisal and they will also order at least two Broker Price Opinions. If these values are higher than the list price , it is game over for the short sale and the asset will move even closer to the Foreclosure sale on the courthouse steps. There is a very fine line in the fact that a short sale must be priced low enough to present value to the buyer and high enough to give the seller a reason to consider the deal. Many sellers are trusting there futures to inexperienced agents whom most have very little experience with any type of distressed sale. This is not the time to hire an agent to list your home that is a good friend of the family and does Real Estate part time. You need to hire a true professional and ask for their resume in Real Estate. Would you hire someone to work for you in a normal job with no experience ? A good rule of thumb for sellers is that the agent should have no less than three years in the business and at least thirty distressed sales that were actually successful.

From a buyers prospective it is all too often that buyers contact me completely frustrated on the short sale they banked on that went south after months of waiting for an approval that never came. There are far to many actual Foreclosures that the banks have already taken back in their inventory they will sell you at a real price and most likely a discount to other homes in your area. If in fact you just decide that you found your dream home and it is a short sale, your agent should do his or her homework for you to be able to tell you whether you have any real chance of buying it as a short sale. Most buyers that are waiting for the short sale to be approved are missing deal after deal in the Foreclosure market . With the pace that Foreclosures are selling these days you have no time to wait as when one comes online you must act and quickly or you will be eventually locked out of the best time in our generation to purchase your dream home. Buying a home in this market is just as important to hire the most experienced agent to help you maneuver the short sale s and REO assets. It takes an experienced Broker to know how to locate the Foreclosures as well as approved short sales that can actually close . part time or newer agents in general have no clue where to even start. Your goal is to find the right property and get started in your new home instead of dealing with months of waiting and frustration with the process. here at the Williams Group, we specialize in nothing but Foreclosures as well as short sales for sellers and buyers. The distressed market is here to stay for many years to come and we must all get used to the new way the world of Real Estate works. Whether you are looking for a solution to your home going into Foreclosure or looking to take advantage of the opportunity to own a home at prices not seen in more than a decade you must call us today. Many of our Foreclosures are under contract within the first 14 days on market so it is imperative to work with Brokers who know where these assets are and can be on the constant look out for exactly what you are wanting in a home. Maneuvering the world of Distressed property is now easy, you found The Williams Group ! Call today for a free consultation.

Thomas Williams
Pelican Real estate
Managing Broker

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