Tag: Short Sale
Good chilly morning! We have had all the rain we need, thank you! It finally cleared up here and for the next week we are going to have sunshine, blue skies and temperatures in the mid seventies. Life is pretty darn good here on the Charleston Coast.
Real estate activity lately has been on the rise. We are seeing an increase in the number of properties sold, but a decrease in sales prices. There is plenty of interest in foreclosure and short sale properties, but why go through all the hassle when there are properties on the market priced even lower that are neither? Just smart sellers getting in front of the decline in the market. If you would like a list of some of my best buys just shoot me an email or go to my blog. I’ll be updating that list this afternoon (they are not just my listings.)
There is some good reading in this month’s E-Newsletter. The three main articles of interest include: “Knowledge is Power When Buying a House”, “Five tips to Increase Your Home’s Appeal, and “Four Questions Help Determine Improve or Move”.
And, pay attention to interest rates! Mark and I are re-financing because the rates are incredibly low! Call your lender this week to see if you can take advantage of the rates before they go back up.
As always, I hope you’ll give a call or stop by when you are in the area. Talk with you soon.
Betty Poore – Realtor
Your Connection to the Charleston Coast
These are crazy times. Seems we have fallen down the rabbit hole, and many of the old rules of real estate no longer apply. Unfortunately, most of us know by now what a short sale is. For those that don’t know, consider yourselves lucky. For many sellers facing the harsh reality of our economy, the decision to sell is no longer entirely theirs. Those of us you trust to complete the complicated short sale transaction have discovered a new animal preying on these misfortunes.
Sellers are presented with an offer which falls (usually) well below your mortgage(s). You may be tired, resigned and inclined to accept the offer, but now we must add to the contract “contingent upon third party approval”. In other words, we must now submit this “agreement to sell” to our lender(s) for their approval. Now you wait (usually months) for an answer. Anything can happen; yes, no, maybe, try again or no answer at all.
In the mean time, your property has been marked in our MLS system as “active contingent”. This tells all agents a contract has been signed and a contingency is waiting to be solved. In the past, only the buyer was seeking loan approval but now the seller is waiting for lender approval also. Once tagged “AC” future buyers and real estate agents may be more inclined to seek other properties instead of mixing it up with an existing “buyer”. It’s not like there are no other properties for sale.
But what if the buyer of your property knows how to work the system? What if that buyer knows where to look in the public records for upcoming foreclosures and wishes to keep other buyers away? Simply make an offer, and hope the seller is resigned to sell at any price to avoid foreclosure. This buyer may know the lender can not respond in a timely manner. So they sit back with the property tied up. Then show up at the court house sale. Everyone loses (the lender, the agent, the seller) except the buyer. Seller (and agents) beware.
Word to the wise, always seek the advice of an attorney specializing in foreclosure law when presented an offer to purchase on a short sale. Have your attorney contact the lender to slow the foreclosure process until an answer can be secured from your lender.
We all know the sad news, foreclosures are up in South Carolina as well as most of the country. However, if you are interested in purchasing property in Charleston, now could be the time to look. There are some great deals to be had.
Our agents are educated about buying and selling short sale properties and they have the tools, skills and information needed to navigate those tricky waters.
Give us a call 800.476.8444 or stop by one of our three offices (31 Center St. on Folly, 214 King St. downtown, or 1400 Palm Blvd. on the Isle of Palms). Nobody knows the Charleston Coast better.
Here is a link to a great article from RISMEDIA which is a great source of real estate news. Click for article by Jeff Lischer.
On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA), which will help homeowners who are unable to retain their home under the Home Affordable Modification Program (HAMP). Under HAFA, a borrower (the current owner) may be able to avoid foreclosure by completing a short sale or a deed-in-lieu of foreclosure (DIL).
Act fast on this opportunity to own an incredible Folly Beach deep water property for a steal! The builder has thrown his hands up and will let it go at auction prices to avoid foreclosure or short sale. This waterfront property will need to be finished which gives you a chance to add your tastes, and has awesome views of the Folly River Wait! It gets better, it is sold with a shared deep water dock! This is a huge home on Folly Beach for a fraction of what it should really cost. There were two available now only one left.
Everybody wants a deal, and now is the time. Don’t believe it’s the time to buy Real Estate yet? I disagree.
I must admit as a Realtor I may sound somewhat biased, but I practice what I preach. I’m a Buyer myself. I’ve purchased 3 homes myself in the last 2 years and tried for a fourth just last week losing out on a home that had 6 offers on it within days of coming on the market. Are you thinking that must have been a good deal? It was. 1600 square foot ranch home on James Island in a great neighborhood (mine in fact). List price…$99,000. Not a short sale. Not bank owned. It was an estate sale being executed by an attorney. Motivated Seller.
I avoid short sales. When I hear short sale, I think headaches and heartbreak for almost everyone involved. You can find a deal that way. And if you really love a property in a short sale situation, I would definitely attempt to purchase it via short sale first. But in my experience, you still may be paying more than you need to… but that’s a conversation for another day.
Motivated Sellers come in all forms and I do my homework to find them. I watch bank owned and estate sales. I watch for multiple reductions in a short period of time. I watch for major reductions. But these are not the only telling factors. People need to sell for all kinds of reasons…job transfer, loss of job, marriage, divorce, kids, up-sizing, downsizing, graduation, retirement, travel, health reasons and yes, financial reasons. These motivating factors happen in any market.
Here are some examples of the motivated sellers I’ve found for my buyer clients in the last 6 months:
Downtown Charleston – 1025 sq ft house with 2 off street parking spots and a yard. 1 block from Marion Square and steps off Calhoun .
Purchased for $190,000 – Tax appraisal valued the land alone at $228,000. Bank owned multiple offer situation.
(Link to listing – 2912368)
Folly Beach – Full .24 acre street to street lot with main house of 1500 sq ft and two 1 bedroom cottages on same property. 3 blocks to the beach.
Purchased for $360,000 – 3rd lowest residential purchase on Folly Beach in the last 3 years. Estate sale multiple offer situation.
(Link to listing – 2902489)
Mariners Cay – 2 bedroom, 2-story condo with views overlooking Folly River and the Marina
Purchased for $215,000 – Lowest priced purchase in Mariners Cay the last 5 years. Motivated out of town Seller.
(Link to listing – 2906274)
James Island – 3 bedroom, 2 bath, 1528 sq ft ranch home in Lighthouse Point
Purchased for $120,000 – Bank owned property multiple offer situation.
(Link to Listing – 2828792)
West Ashley – 2 bedroom, 1 bath single family home in Parkwood Estates
Purchased for $101,000 – Bank owned property multiple offer situation.
(Link to Listing – 2921950)
There ARE deals out there. When they are this good, they don’t last more than a few days and sometimes they are under contract in hours. I can notify my clients within minutes of them coming on the market. I’m not a salesman. I present my clients with the facts, the comparable sales and they decide for themselves. The Charleston area is full of deals, and I can help find them. Feel free to call or contact me with questions.
Real estate activity has really picked up here on the Charleston Coast. Showings are up substantially on properties across the board, regardless of price. The motivating factor seems to be the “deal.” Investors are looking for “deals” – the common thread being a short sale or a foreclosure.
What many investors don’t realize is just how many properties for sale are priced like a short sale … but aren’t a short sale. THOSE are the real deals because you can avoid the hassles of a short sale, some of which include:
- List prices that aren’t even approved by the bank.
- Three to four month response time from the lender, in some cases a rejection of the offer with no counter offer.
- The possibility of missing out on real buys as you wait for a response.
I could go on and on. For a preview of just some of my properties that are Priced Like a Short Sale but aren’t, click here.