In the Tampa Real Estate boom of 2005-2007, it seemed all a seller had to do was place a sign in the front yard, bake some cookies, and within a couple weeks offers were flying in.
What has changed? The major factor is the amount of inventory buyers have to choose from, which creates a lack of urgency. It stands to reason that during that time of limbo, a larger number of properties on the market become available for buyers to choose from.
Rae Catanese, a Realtor with Prudential Tropical Realty, suggests a few things to consider when choosing a Realtor to market your home.
The Future of Real Estate Marketing
- Viral Marketing is a fairly new concept in the home selling process. Innovative real estate agents are turning to new methods of advertising using blogs and social media to get the word out. Facebook, twitter and Linkedin are the most popular viral marketing campaigns now being used. Discussions about “where the best neighborhoods are” are being asked on these popular word-of-mouth sites, and friends and family are more than happy to share their advice.
Photography
- Pictures are the first impression and most important factor in getting a buyer in the door. A wide angle lens and professional flash will make all the difference in capturing a potential buyer’s eyes. Eighty-five percent of all buyers start their search online. About one-third of my buyers come from out-of-state or out of the U.S. They select the homes they want to see based on pictures.
Home Staging:
- I always encourage sellers to obtain the services of a professional Home Staging Consultant. There is a misconception that Home Staging costs a lot of money. That really depends on if a consultant works with what you already have, and in most cases they will.
It’s time to use every trick in the book to get your house sold. “Same is lame. Boring is invisible. Staging makes your house stand out from the competition,” says Ann Alderson, president of Tampa-based, Staging South Tampa, LLC. She adds, “Selling a property in today’s market requires strategic thinking. Staging forces sellers to think like a buyer. Adopting this perspective early on will help you in many ways when preparing your home for the market.” To give you an idea of how well staging works, the Real Estate Staging Statistics Report by RESA, released in 2009, notes that, “Vacant homes in our study that were previously on the market an average of 190 days as un-staged properties, had not sold. Those same homes were taken off the market, staged and re-listed. Those properties on average sold 28 days after they were staged, which is 85% less time on the market.”
A professional Home Staging Consultant and an experienced Realtor will provide you with a plan of the exact things you need to do in order to make your home sell at the best price in the shortest possible time.
Rae Catanese, PA
Prudential Tropical Realty
813-784-7744
realtyrae@yahoo.com
http://TheTampaRealEstateInsider.com
Ann Alderson, ASP, CAHS
Staging South Tampa, LLC
813-785-8553
ann@stagingsouthtampa.com
http://stagingsouthtampa.com
This is one of the BEST examples of how a short sale works that I’ve read in a long time. If you haven’t read up on exactly how the process works this is a great place to start for both buyers, and anyone considering hiring a listing agent to sell their home. All Realtor’s predictions are suggesting that selling Real Estate in Tampa Bay as a Short Sale is here to stay.
Inventory Statistics for Tampa Bay short sales versus regular sales as of January 2010 are as follows:
Hillsborough County (Tampa)
Current active inventory of 9,663 properties for sale.
A little over 35% are listed as short sales.
Pinellas County (St. Pete, Clearwater area)
Current active inventory of 11,942 properties for sale.
A little over 19% are short sales.
The Complete Short Sale Process
How a Short Sale is Handled from Listing to Bank Approval
By Elizabeth Weintraub, About.com Guide
The short sale process follows pretty much the same procedure from bank to bank.
The short sale process is still a mystery to many people, even after all these years. Lots of buyer’s agents are confused; puzzled buyers are looking for direction, and not every short sale listing agent knows how to do a short sale.
The Basics of a Short Sale
Banks grant short sales for 2 reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.
A few examples of a hardship are:
- Unemployment / reduced income
- Divorce
- Medical emergency
- Job transfer out of town
- Bankruptcy
- Death
The seller will need to prepare a financial package for submission to the short sale bank. Each bank has its own guidelines but — with the exception of Wachovia, which is the best short sale bank in the world — the basic procedure is similar from bank to bank. The seller’s short sale package will most likely consist of:
- Letter of authorization, which lets your agent speak to the bank.
- HUD-1 or preliminary net sheet
- Completed financial statement
- Seller’s hardship letter
- 2 years of tax returns
- 2 years of W-2s
- Recent payroll stubs
- Last 2 months of bank statements
- Comparative market analysis or list of recent comparable sales
Writing the Short Sale Offer and Submitting to the Bank
Before a buyer writes a short sale offer, a buyer should ask his or her agent for a list of comparable sales. Banks are not in the business of giving away a home at rock-bottom pricing. The bank will want to receive somewhat close to market value. The short sale price may have little bearing on market value and may, in fact, be priced below the comparable sales to encourage multiple offers.
After the seller accepts the offer, the listing agent will send the following items to the bank:
- Listing agreement
- Executed purchase offer
- Buyer’s preapproval letter and copy of earnest money check
- Seller’s short sale package
If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package.
The Short Sale Process at the Bank
Buyers may wait a very long time to get a response from the bank. It is imperative for the listing agent to regularly call the bank and keep careful notes of the short sale process. Buyers may get so tired of waiting for short sale approval that they may feel the need to threaten to cancel if they don’t get an answer within a specified time period.
That type of attitude is self-defeating and will not speed up the short sale process. If buyers are the type with little patience, perhaps a short sale is not for them.
Following is a typical short sale process at the bank:
- Bank acknowledges receipt of the file. This can take 10 days to a month.
- A negotiator is assigned. This can take 30 to 60 days.
- A BPO (broker price opinion) less formal than an appraisal, is ordered. The bank probably will refuse to share the results of the BPO.
- A second negotiator may be assigned. This can take another 30 days.
- The file is sent for review or to the PSA. This can take 2 weeks to 30 days.
- The bank may then request that all parties sign an Arm’s-Length Affidavit.
- The bank issues a short sale approval letter.
- The buyer cancels.
I threw in that last line because sometimes I have to sell my Sacramento short sales 3 or 4 times before a buyer sticks with the transaction. Buyers get angry and annoyed because the short sale process can be so lengthy that they sometimes cancel without telling anybody. Some short sales get approval in 6 to 8 weeks. Others take 90 to 120 days, on average.
Tip: Generally the listing agent has some idea of when the file is sent for final review. At that point, buyers may want to start the loan process so they’ve got a head start in case the bank gives 2 weeks to close.
If you need help buying or selling your home as a short sale please contact me. Rae Catanese, PA-Prudential Tropical Realty-
813 784 7744 or Email
See also: Short Sale vs. Foreclosure and the effects on your Credit
Here’s some guidlines to determine if your home would qualify as a short sale. The services of hiring an attorney can greatly decrease the time it usually takes to handle all negotiations and paperwork needed to submit to the bank.
When you list your property with Prudential Tropical Realty and give us permission, we can make arrangements for you to have a free consultation with the law firm of Yesner & Boss who specializes in short sales and pre-foreclosures. This service can help you determine the best course of action for your particular situation compliments of Prudential.
If you are looking for a listing agent that specializes in Short Sales in The Tampa Bay Area, please feel free to contact me.
Rae Catanese, Realtor
Prudential Tropical Realty
813 784 7744
Are you a candidate for a Short Sale?
- Are you current with your monthly payments?
- Is there more than one lender to consider?
- How far away are you from foreclosure?
- Do you have other assets?
- Have you spoken to the lender?
- Is the lender working on a short sale package?
What are your options?
- Keep the property
- Attempt a workout with the Lender
- Sell the property and bring cash to the closing
- Offer the Lender a “short sale”
- Offer the Lender a “deed in lieu of foreclosure”
- Allow the property to go to foreclosure
Where can you get help
- Visit http://MakingHomeAffordale.gov. This is a US Government web site that offers Sellers options to retain ownership. Loan modification through your existing Lender is explained here and should be explored prior to listing for sale.
How can Prudential Tropical Realty help?
- List your property with Prudential Tropical Realty, fill out the paperwork provided to you by the listing agent and the process can begin.
HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties
This is GREAT news for the Tampa Real Estate Market as it will allow more homes to be sold in a shorter period of time. Reducing the amount of inventory will have a very positive impact for the Tampa Housing Market which is #2 in the U.S. for Foreclosures.
WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.
“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.”
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties. “This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,” Donovan said.
In today’s market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.
The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.
”FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”
The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:
- All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
- In cases in which the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
- The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD’s website
Looking to Buy or Sell? Contact me
Here we are in 2010 and buyers and sellers are wondering what is in store for Tampa Bay’s Housing Market. No matter where you look, you’re bound to find a doom-and-gloom story about the housing market – foreclosures at record highs, prices at record lows, but if you want to know the real story, look at a particular Metro Area like Tampa. Yes, it is true that Real Estate is LOCAL. All markets are not the same.
I found some great resources that state our housing market isn’t so bad.
Bayshore Blvd-Tampa, Fl
The Tampa Tribune Reports: Home prices in the Tampa Bay Area rose 2.5 percent in the fourth quarter of 2009, compared to the previous quarter.
Tampa, Florida Metro Housing Market Report (Nov. 25, 2008 – Dec. 24, 2009)
Tampa Real Estate Market research by Clear Capital, reports Tampa makes the TOP 15 highest performing housing markets . In this month’s highest performing major market list, were among the lowest performing major markets one year ago. This volatility is largely a reflection of heightened REO influences that continues today.
The report sates that 25% of all homes sold in Tampa are Foreclosures/Real Estate Owned (REO) – Clear Capital calculates the percentage of REOs sold as compared to all properties sold in the last rolling quarter.
So what does all this mean?
The downturn is slowing in some areas, but economists expect home prices to keep falling nationally this year. In Tampa Bay, economists predict prices to decrease slowly this year through the third quarter.
The median sales price of existing homes in the Tampa-St. Petersburg-Clearwater metro area hit $139,100 in November 2009. It was $239,600 in June 2006.
Questions? Contact me
Hello Everyone:
Do you know of anyone looking to sell Tampa Real Estate in Bulk? I received a call from an investor today and here is the criteria.
Bankrupt developments, distressed situations, etc.. in the Tampa Bay area, including the Beaches, Clearwater, St. Pete etc..
Buyer has cash and can close quickly
The criteria is as follows:
- 10+ units min
- Townhome, Single Family Home tracks, Multi Family
- Condos (depending on size of complex, occupancy and financing situation for end user)
- Needs to be a wholesale deal to flip
- Up to 325K per unit.
- New Construction, never lived in.
Please let me know if you have any opportunities that I can pass on to my client. Even better, share with your Facebook friends and ReTweet if you can!
Thanks so much!
Rae Catanese, PA
Prudential Tropical Realty
Cell: 813-784-7744
