About Bradenton's Waterlefe

The first time home buyer tax credit will expire on November 30. With Thanksgiving that week it might as well be a week earlier. Typical F.T.H.B. are getting financing through FHA, VA, or USDA. These type of loans will usually take 45 days to close, if there is no major issues with the borrower. So we have a month to find a home, go to contract, and close it to get the cash for the buyer. Here in Manatee county First time home buyers, and their agents are scrambling. I get a few calls a day from buyer agents asking if one of my listings would be able to close in time for the deadline. 1. Avoid short sales, unless they are "pre-approved"- Short sales can take months to close. You do not have time for that, and betting that you found the "one" short sale that will close in time is a risky bet now. Focus on foreclosures, and regular motivated sellers ( yes, they do exist!). 2. Get your financing in order as much as possible, as early as possible.- If the deal does not close due to financing issues, or worse, is delayed for financing issues. You will be the one losing the benefit of the tax credit. Make sure you have a reputable lender, be realistic with the time frame, and be proactive to make sure they have everything needed to close the deal. 3. START SHOPPING RIGHT NOW! - Did I mention you have about a month to find, and get into contract with your next home? Also, you are not alone. There are plenty of buyers out there trying to do the same thing. The good deals are going FAST.. I wrote an offer for 5k over list price, pre-qualified buyer, quick close, etc. We were beat out. The home had gone into a bidding war. My buyer was maxed out with what he could afford, but we made the offer within 24 hours of the home getting listed.

I have now have closed a lot of short sales in the past three years. My words of wisdom for buyers, and sellers who are considering a short sale. Short sales can be a great deal typically selling for 10-20% below current market value. BUT, they have a tendency to frustrate buyers, and sellers in the process.

Patience, involvement and realistic goals are helpful to get a short sale closed. Either everyone wins, or everyone loses. The buyer gets a great home, for a fair price. The seller gets rid of a home that is under water, and can potentially wipe out a huge debt while avoiding a dreaded foreclosure. The market benefits because a short sale keeps one less home from becoming a foreclosure, or derelict.

1. There is nothing "short" about a short sale.. Only your patience.

I have closed a short sale in a record 4 weeks. The buyer went to contract the day the home listed. The seller was experienced real estate assistant, who was very involved with dealing with the bank. The bank was the "servicer" and the "investor". Servicer is the bank that payments are made to, and act as an intermediary to the investor who owns the note. In this case, they were one and the same. The home was in excellent condition. The buyers really wanted this particular home. Basically everything went perfect in this deal. Still, the buyers were anxious and considered canceling the contract because it was "taking so long".

2. Most transactions take a few months to get an approval, or counter offer.

It can still take a few more weeks for the " investor" to give written approval. I have experienced negotiators for lenders that will counter, negotiate, and verbally approve a deal, before any acceptance from the investor is given. Certain lenders take longer than others to get assigned a negotiator. This is really the major hurdle to get to an approval. Getting someone at the lender to talk with about a specific deal.

3. Inspections should be done shortly after going to contract, not waiting for "LENDER ACCEPTANCE"

It is very common to sell a short sale home two, three, even four or more times before a buyer sticks to the deal. Most short sale offers are written very loosely with many outs for the buyer. MLS rules dictate that homes "under contract", even short sales have to be put pending. Many times when many hours of work have been invested to get a short sale approved by the lender, the deal dies because the buyer is dissatisfied with the home inspection report. These sales are most often "AS-IS, with right to inspect". The problem is that this is usually tied to the effective date of the contract which is the day the lender gives written approval of the short sale. Short sales are often poorly maintained, and neglected. Utilities are often disconnected, pools are green, lawns are overgrown and full of weeds. You get the idea.

My suggestion for my buyers and sellers is that the major home inspection done within 10 days of going pending. If there are major issues, the buyer can adjust their offer accordingly to account for unknown defects. Also, with a written report the defects in the home can be submitted to the lender to further encourage them to accept the offer. Of course I would always recommend a walk through inspection, or home re-inspection close to the close date to account for any further defects, vandalism, or theft to the property.

4. Realistic list prices and reasonable offers

Some times a buyer will call me with news of a home that seems to good to be true. Most often, they are. A listing agent can under price a home so dramatically that it can bid up the price. In my experience short sale homes will sell for 0-20% under the current, appraised value. So, if the home would be priced at 300,000 under normal circumstances, the same home as a short sale should sell for at least 240,000 and up. Short sales are not fire sales, they have to make sense to the lender and the buyer. . All buyers are looking for a great deal, but that does not mean the bank is going to be willing to take a loss without considering the alternative of foreclosure and resale.

Some listing agents will under price a home by more than 30% market value. This will get their phone ringing, and the offers flying, but is a disservice to the seller, buyer, and other home sellers in the market.

To be able to "steal" a home, it would be better to first look to foreclosures, and motivated, regular sellers. A property owned by the bank (REO) has to sell. The price will be lowered until someone buys it. Also, motivated regular sellers, that can afford to sell in this market, and "NEED" to sell are sometimes willing to make a deal just to be able to move on. Short sale buyers need to be patient, and realistic with the price they are willing to pay. This means if it is worth 250,000, don't bother with the 50,000 offer.

5. Sellers need to be PROACTIVE in the closing process.

My job as the Realtor is to expose the property to the buying audience. Make the property available to potential buyers, and agents representing buyers. And negotiate a successful CLOSED transaction. I can help the willing, but if someone is drowning in quicksand, I can extend the stick, but I can't jump in to save you. A home seller has to take the process very seriously. One of the most important indicators of a short sale's success is the Sellers tenacity to follow up with the lender(s), maintain the home, organize and prepare the required documents. Of course, My team, and the seller's negotiator are going to be calling and pushing to make the deal go, and keep the buyer updated, but the ones that go quick always have a very involved seller.

6. Hire a GOOD negotiator to assist with the lender negotiations

Short sale Sellers often are having money issues, but acquiring assistance is critical to the success of a short sale. This does not have to cost a fortune either. Options include title companies, that can charge as low as a few hundred dollars, to attorneys that can charge a few hundred an hour. Some firms charge a flat rate to take on a short sale negotiation. The added help is really needed due to the tedious process of following up with lien holders. If you are a buyer and the seller does not have a skilled negotiator involved, be wary. I have closed many deals without outside help, but the cost is greatly outweighed by the benefits for the seller. I have many options for the seller to consider.

Looking for a place to LIVE AND PLAY?


Waterlefe Golf and River Club is a first class community, located in East Manatee County, on the banks of the Manatee River on the West Coast of Florida.  Waterlefe Golf and River Club offers a meticulously maintained community of custom built homes, top notch 18 hole golf course, marina, private docks and amenities galore!

The 18-hole championship golf course is one of the finest in the country. The Waterlefe Golf and River Club course offers five sets of tees to challenge and fit any golfer. This beautiful golf course takes you along the Manatee River and through majestic Florida conservation.

Boating enthusiast will appreciate the marina and private boat docks that line the Manatee River. Congregate docks are available for those who prefer to keep their boat on their property. Waterlefe's waterways will take your from the Manatee River into the blue waters of the Gulf of Mexico.

Not a golfer? Don't boat? Waterlefe Golf and River Club truly has something for everyone. The River Club is a member-owned club with superb amenities and facilities. Enjoy fine dining, a serene swimming pool, tennis courts, a fitness room, banquet facilities and a tiki bar. Have a picnic with the family at The Point, enjoy an evening stroll through the conservation trails or have some fun at Wade's Wilderness Way. Whatever you are looking for, we promise you, you will find it in Waterlefe Golf and River Club.

Roberta Burish is your resident Real Estate Agent. Roberta Lives, Works and Plays in Waterlefe Golf and River Club. Roberta was also the first person to purchase and occupy a home in the neighborhood, making her truly - Your Neighborhood Expert.

Waterlefe Newsletter July

For more information on Waterlefe Golf and River Club and other homes available in East Manatee and Manatee County - Contact The Burish and Serena Team. 

When experience counts, count on Burish and Serena.
941-704-4223
Info@USA-FloridaHomes.net

Today's news about the big upswing in the stock market, and the 20 percent increase in sales confirms what i have seen in the last month. Sales locally have been brisk, and the traffic to my listings has really picked up. This is of course "peak season", so I hope that this trend will continue to pick up. This combined with the decreased listing inventory should cause home values to start to level out.
Really what is needed is more mortgage reform with higher loan amounts. The market above 400 is really slow. Most of the activity is in the "entry level", 200k and under market.

I think that the key to a market recovery will come with the inflation that will be coming sooner than later. Not that I am am fan of inflation. But I think it is coming.. Everything will get more expensive, including building homes, which will raise home prices, as everyone's mortgage stays stable.

Also, having our dollar devalue a bit would help too. I have a few european and canadian buyers who are deciding to stay on the fence in hopes the dollar weakens.

In Bradenton and Sarasota, our average sales price did go up by 1,000 last month. I think that is a great sign, since it has not risen in 2 years!

I am inviting you to my "Waterlefe Tour of Homes" for this coming Sunday February 15, 2009 from 1-4pm. If you have been considering buying a larger home, downsizing, or perhaps buying a home for investment, there has never been a better time to be a buyer for this great community. Waterlefe is a jewel that offers the rare combination of BOATING and GOLF at one address.

1. Our neighborhood is not too big, or too small.
2. There is a great variety of residences from the 200's to the multi-million.
3. Convenient location close to shopping, airports, and a reasonable drive to some of the world's best beaches.
4. A social and diverse population of residences including full time, seasonal, and vacation home owners.
5. Excellent values as home prices have dropped nearly 50% since the peak of the market.

Our real estate market was one of the first to be hit by the downturn. For the following reasons I feel that today is the day to become a buyer in the market.

1. Interest Rates are at historical low levels. A 30yr fixed mortgage can be locked in today around 5%. The rates have been very volatile recently, and many think that the rates will rise as soon as there is evidence that we are in recovery.

2. The United States Senate passed the tax credit this past week. This will give a huge incentive to buyers that are "on the fence" to jump into the market. The credit will allow a home buyer who is buying a "primary home" the ability to take up to 15,000 OFF their tax bill for 2009! There is a possibility that this amount may be adjusted, but it is highly likely to pass. This is not a deduction, but an actual credit. The money does not have to be repaid if the homeowner stays in the home for at least 2 years. Also, there is no restriction on income, or price of the home. The bill will have a time restriction of one year that will force people into becoming urgent buyers.

3. We have "PENT-UP DEMAND". There are many people that have not been effected by the economic downturn. There are still 90% of the population that are employed. There is a coming wave of baby boomers that want to retire to somewhere warm, with Boating, Golf, and plenty of sunshine. The media blitz that has made prices fall so fast and hard will actually work to our favor when it comes to a recovery. People want to know that they are getting a great deal, and that their Florida purchase will not go down any further. Once the media grabs hold of the recovery, this will drive a great wave of buyers frantic to get a deal before prices start to rise.

4. Our inventory in Manatee County is maintaining around 6,300 units. This is About HALF of a year ago! Some of this reduction can be attributed to the combining of our MLS systems, but the vast majority is from sellers that were hoping to sell have gotten realistic and taken their home off the market. Foreclosures and short sales account for about 1/4 of the inventory selling county wide.

5. Economic and Global instability make Florida look better, and SAFER. Instability in the rest of the world makes investing in Florida Real Estate a relatively safe proposition. Particularly in our area. Last year 52% of the sales in Sarasota and Manatee Counties were CASH deals. Last year Sarasota/Manatee had the HIGHEST Proportion of Foreign National Buyers in the State. We benefit from lower taxes, fewer hurricanes (than the east coast), excellent cultural opportunities, low crime rates, and a stable local government.

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." -Warren Buffet

I agree with Mr. Buffet, that when we are in a recovery the opportunity is already missed. The time to be bold in real estate is when the majority of the population is fearful. Our local market is poised for a recovery based on the time of price deflation, and reduced inventory. There are no guarentees that prices will rise any time soon, but the best selection, and the best deals will become harder to find, even if prices stabilize. More buyers will mean less selection, and the really good buys will get snapped up. ( This is already happening, 6 contracts I have written so far this year have been in Multiple bid situations) Fearful sellers allow for the market to go down. If the sellers feel that the market is improving then they will be less inclined to take low offers for their properties. This includes the Lenders with the foreclosure properties. Charlie Christ created a moratorium on all foreclosures for the first 3 months of 2009. I believe this will create a flood of foreclosures that will last a good portion of this year. I think that with rise in "must sell" inventory that prices may fall a bit more for distressed properties, but will be snapped up as buyers sense an opportunity. We have currently 12 homes in some phase of foreclosure in Waterlefe. This is a much lower percentage than many other neighborhoods around our area. In conclusion, I recommend that if you have been considering buying a second home, or investment property to start looking today. I feel that consumer confidence in our market is on the rise. I am basing this on the increase in number of showings, and increase in multiple bids. When the media starts to publicize this, then the general population will return to the market in droves. 1 out of 3 homes in our country have no mortgage. We have everything that a retiree or vacation home buyer wants.

• • • BEACHES
    • PLENTY OF GOLF
    • BOATING
    • SECURITY
    • CULTURAL VENUES
    • DISNEY(for the grand kids!)

I hope to see you this weekend at our tour of homes. If you can not make it this weekend please feel free to call me or email. I can set up your own "private tour" on your schedule. If you are homeowner considering selling your home in this area I would be happy to give you straight advice and pricing information.

All the best in 2009!

Joe and Molly Murphy