Considering a Short Sale?

 Short Sale

Considering a short sale is never in the plans when it comes to owning your own home.  However sometimes things don’t work out just as planned and an owner may find themselves looking for a way out.  One thing for sure, during the short sale process an owner is going to need guidance and support and we understand that going to friends, neighbors, and acquaintances is not easy and most owners don’t want to share that they are facing hard times financially.  

When an owner finds themselves facing these hard times, they need to know there are options.  The first thing we recommend is to make contact with the lending bank and see if a loan modification or another option is available. It is best to exhaust all efforts before deciding to sale, short sale or foreclosure on a home.  A foreclosure is a legal process in which the lender takes back the mortgaged property as a result of an owner not being able to keep current on the payments.  A short sale is when the bank agrees to accept less than the amount owed on the mortgage due to an owner not being able to keep current on the payments.

If all efforts have been made and the circumstances haven’t improved, this is the time to reach out to a licensed real estate agent for guidance.  A Realtor will not only look at your situation and guide you accordingly, but will explain the different processes to you in advance, support you through the process, and represent you along the way, taking as much weight as they can off of your shoulders.  Your Realtor will need your authorization to represent you and to allow the bank to disclose information on your account.  Maintaining constant contact between you and your lender, the Realtor will find out if you qualify for any assistance and what documents will need to be completed, compiled and submitted for review.

The lender may approve the short sale during the time the home is on the market and if not, the lender will review it at the time an offer is submitted.  At this time an offer may be accepted, countered, or denied.  It is important to know that even if the bank approves a short sale, they may or may not choose to waive the deficient balance.  In some cases, lenders require an agreement of payments to pay the remaining balance.  It is also important to know that lenders of second mortgages and HELOC may also need to approve the short sale.  While most short sales are closing in under 6 months, second mortgages, negotiations and other delays may postpone closing for numerous months.

Know that short sales are happening across the country and you are not alone.  A Realtor with experience and expertise in short sales will streamline the process for you and be there for any questions or concerns that arise during or after the sale.

Contact Broker, Susan Carleton, to refer you to a Pointe South Short Sale Expert.

If you are in the process of a short sale and are looking for a long term rental, please contact Pointe South Residential Leasing.

Earnest Money Deposits

Earnest Money Check

Clients in the process of selling or buying real estate often misunderstand the meaning and process of earnest money deposits.  An earnest money deposit (EMD) is a good faith deposit to show the seller that the buyer is serious and has all intentions of fulfilling the purchase contract.

The area and the local market conditions will guide the Realtor in advising the buyer on how much the earnest money deposit should be.  There is no set amount but instead a general expectation of 2% of the purchase price.  Once a contract is fully executed by both parties, the buyer will provide their EMD to their Realtor, who in turn has it deposited into an escrow account for safekeeping.  Escrow Accounts can be maintained by banks, title companies, brokers, and many other businesses.  At the time the deposit is made, the money now is in holding and does not belong to the buyer or the seller.  The deposit will be applied to the purchase price however it is important to know that this is not a down payment.

In rare instances, a purchase will fall through and the contract between the seller and the buyer will be terminated.  Some sellers think that if a buyer backs out, the EMD is automatically theirs and some buyers think that if they don’t purchase the property, they are entitled; neither is correct.  Each and every contract and circumstance is different so there is no right way to disburse the EMD.  One thing for sure, the sellers and the buyers will need to mutually agree on the release and disbursement of the deposit.  This is the best resolution for everyone.  If an agreement cannot be reached between the parties on the disbursement, the deposit will remain in the escrow account and further action will be taken, up to and possible including legal action until a Disbursement Order is issued.  It is important to remember that once the earnest money is deposited, the real estate agents, the brokers, and the brokerages do not have any control over the deposit and are held to state laws on the handling of the deposit.

So whether you are interested in homes for sale in Pensacola or condos in Perdido Key, an earnest money deposit will be expected.  The amount of your EMD may also be a deciding factor if a seller is reviewing multiple offers.   This is an anticipated time for both parties and whether you are writing the check or accepting the offer, the earnest money deposit is the sign that your contract is official and you can start looking forward to closing.

Considering Selling Your Own Home?

FSBO

We all know the process of putting our house on the market for sale.  It’s easy, just buy a sign for the front yard and start advertising.  Well sometimes it is just not that easy.  Our day to day lives interfere with the time that we should be dedicating to marketing and maintaining our home.  And is the local market in our favor?

With an infinite amount of information on the internet and social media, we understand the temptation of giving it a try; however the National Association of Realtors reports that homes For Sale By Owner only made up 9% of home sales in 2012.  The most common marketing methods for these homes were putting up a yard sign followed by listing the home on the internet.   Realtors not only have their professional and referral network connections but they utilize the new technology along with the old.  And most importantly, your home is their priority.  Realtors dedicate their time to ensuring that your home has the largest reach of potential buyers.

After the decision has been made by owners to sale their own home, the next two concerns are the value of their home and the paperwork.  Realtors provide Comparable Market Analysis, based off current listings and sales in your area, to ensure an accurate value.  They also can offer you some simple staging tips and guide you in the right decision if you are pondering repairs or upgrades prior to putting your home on the market.

Mentioning repairs, these and other requests will be negotiated at the time of an offer.  Making changes to your home may not necessarily be in your favor so wait to see what type of interest you receive and what your potential buyers are looking for.  Your Realtor will inform you of common and acceptable requests of a buyer and review every aspect of a contract with you.  Every location and every home is different so the contracts and required document vary just the same.  Having a professional on your side will make this process smooth and timely.

Contracts

Let an expert provide you the facts.  Your Realtor will offer you valuable information that will save you not only time, but give you the comfort of knowing you have made good decisions for your family and your investment.  With Realtors licensed in both Florida and Alabama, know our door is always open to discuss property values, the current market and any questions you may have about listing your home or investment property for sale!

Recommendations For Selling Your Pet Friendly Home

Mastiffs

Although selling your home is a big decision for you, it is even a bigger decision when you have pets.  And although most of us have a soft spot, not everyone is “Pet Friendly”.  You need to know that not all buyers will welcome your companions or your home if you have them.  There are a few additional things you will need to consider before and during the sale of your home.

The number one complaint from buyers, when doing a walkthrough, is the odor from pets.  We recommend that you have your carpets professionally cleaned and deep clean your home before putting it on the market.  Professionals will find and notice areas that owners sometimes overlook.  This will also give you a head start and cut back on the amount of day to day cleaning that you will need to keep up on.   And don’t forget those natural odors; unwelcomed all the same, they will need repetitive attention.

Pet toys, bones, and food and water dishes should be picked up before every showing.  No one wants to accidently step on a chew toy or kick the water dish.  And although it may be known that pets live in your home, out of site is out of mind.

The second reason that buyers are deterred from your home is because they are uncomfortable.  Some pets are intimidating or a nuisance and create an uneasy feeling during a showing.  A large dog guarding the property or a cat constantly leading the way is a distraction from the actual task at hand, showcasing your home.  And not to mention,   strangers in their domain is not comfortable for them either.

So please remember not only to be courteous to realtors and guests, but be courteous to your pets as well.  It is as equally important that your pets remain healthy!   Keeping them as close as you can to their normal schedule will ease any nervousness they may have and make the selling process smoother for everyone!