Southwest Florida 2009 update

SUMMER 2009 SOUTHWEST FLORIDA REPORT

Sales are up across the area as both investors and end users are scooping up the great deals on some of the foreclosed properties. Savvy buyers are starting to understand the way to a good deal. There was a period a few months ago when you could buy a foreclosed home in Cape Coral for under the bank's asking price. Generally speaking those days are over.

Does a full price offer guarantee success in buying one of these homes?

No, not necessarily. Depending on the price range most properties under $100000 end up with multiple offers. It could be a bid of a few hundred dollars over the list price will get that home. The key is aligning with a Realtor who is able to advise you correctly. Time is critical as your dream home could be gone before you know about it. If you have a Realtor working for you, at no charge, they will be on top of new listings as they hit the market and identify homes that fit your specifications. Be ready to decide right away.

Of course you will already have a mortgage pre-approval in hand as required by all bank owned sales unless you are paying by cash. If that's the case then you will need to provide proof of funds with your contract's submission instead.

Does the bank prefer a cash offer over someone needing a mortgage? NO. They prefer the highest offer. Period. They are trying to obtain the highest price for one of their assets. If you are not preapproved your offer generally won't be submitted to the bank for consideration.

If the listing says you must obtain pre-approval from a specific bank that is considered a RESPA violation. They are seen frequently in the confidential terms for Realtors in the MLS. That listing's realtor can be in big trouble for publishing those terms. Yes you may require a pre-approval from a legitimate bank. No, they can not require you to go to a specific lender. A cynical person could conclude it's just a way for unscrupulous mortgage officers to generate business. Again that's where you're experienced Realtor comes in to say no to that nonsense. Recently I confronted a fellow Realtor about this. His answer was he did not know it was illegal, but was just copying other listings. Sad. All he needed to do was call our free legal hotline if he had a question about legality.

But mortgage pre-approvals are easy to apply for and we recommend getting yours from whatever bank or credit union you have a relationship. It should also be free. You will still be able to shop around for the best rate but once you have the pre-approval in hand you are able to buy.

The period between 4/10/2009 and 7/08/2009 two thousand one hundred fifty four properties (single family, condos, townhomes etc.) were SOLD with the assistance of a Realtor. Of those 2154 properties only 421 were successful short sales. But 1200 were properties that were foreclosure sales. The remaining 533 were average people successfully selling in this buyers market. They should be congratulated for pricing their properties according to market conditions. The days of "I'm not going to give it away" or "I need to add to the listing price to figure in negotiations" are over for now. It's so important to price it correctly from the very beginning.

If you have not bought a home within the last 3 years you could qualify for up to $8000 government credit as a first time home buyer. And now that credit can be used for down payment assistance and help with closing costs. So don't wait much longer as this credit is due to end in November. And interest rates are still very low.

Finally, visit our homes for sale section as we always have a nice selection of properties in all price points. If you don't see your dream home there then visit our free MLS search for consumers. If you do register we will also sign you up for the more advanced automated LISTINGBOOK program you might have heard of. Everyone that has used it loves it. All we need is a name and email address to sign you up.