Short Sales...anyone?

In the real estate world we would all love to have quick short sale (as in the time it takes to close on a home) but when you hear or see the words SHORT SALES think opposite. Short Sales can take a very very long time to close, because we now have a third party involve…the bank. The sellers can agree to the buyers’ price, terms, and conditions but the bank has the final approval on the offer and just getting an answer from the bank can take months. The term short sale is used because the banks are being shorted. For example a person owes $200000 mortgage on a home and he/she is selling the home for less than owe to satisfy or release them of their debt $200000. If you have the patience and time to wait for a short sale approval, you can find a great home for a low price.

If you are a First time homebuyer, stay clear of short sales, especially if you are looking to buy in the next few months to receive your $8000 tax credit. You will probably not make the November 30 deadline for the tax credit if you are trying to purchase a short sale home now. However, there are plenty of inventory of homes to choose from now, look in any neighborhood from Roseville to Shoreview to St. Paul, you will surely find a home to suit your needs.

Short sales and foreclosures inventory dwindling…

Home prices in the current market are favorable to buyers because of the increase in foreclosures and short sales. However, the short sales and foreclosure home inventory are dwindling. Buyers are picking up these properties, especially in the low to median price range because they are really affordable. Many of the buyers have to be quick and aggressive with their offers to secure the property. Banks are pricing homes well below their value just to get a lot of activity and multiple offers on properties. Some contributing factors include Buyers trying to purchase properties before the First Time Homebuyers Tax Credit expires at the end of November.
Be aware, if you are a first time home buyer and you want to get that tax credit, get an offer accepted in October and close in Mid-November. Title companies are going to be bombarded with work during the end of the month of November and you might not be able to close by the end of month if you wait that long. Better be safe than sorry.

The unofficial end of summer...

Starts with the end of the Minnesota state fair. After that the kids will be off to school and before you know it the ground will be covered in snow. Why not enjoy the summer weather all year long? Buy a home in Florida. According to article on Zillow.com, Florida has one of the highest in the United States of inventories of homes; many are foreclosures and short sale homes. Because of this buyers have been able to negotiate prices down. But don’t wait too long to make a move at buying…the market is picking up.

Everyday the markets in the twin cities are improving with sales increasing and inventories decreasing. This is trend is starting to pick up in many areas of the country not just the twin cities. The Minneapolis Area Associations of REALTORS (MAAR) reported that the median price sales increase from around $154,000 to $175,000 from March to August. The prices are stabilizing because there are fewer inventories of homes. Don’t wait, make that move and buy now when it is still the buyers’ market.

To search properties in Florida please click here.

Low prices of homes sparking activity…

Many factors are contributing the low prices of homes, but all that really matters is that if you are a buyer now is the time to buy. Whether you are buying a home in St. Paul, Roseville, Shoreview or anywhere, the price is right.

There are deals out there. Nowadays, it’s not a common site to see banks heavily discount foreclosed homes to increase activity to properties. The banks will price a property at $50000 knowing that a property is worth much more, and receive multiple offers. Sometimes this backfires on the banks and they might not receive a higher sale price, but this will ensure a quick sale of their property. Also Short sales are abundant, and if you have the time to wait for a short sale you can purchase a home 15-25 percent below tax assessed value.

The low prices are sparking many buyers and investors into a buying frenzy. We are now seeing more and more, multiple offers on properties. Many people don’t want to be in multiple offer situations but if you really like a home and feel that it is worth a certain value, why not submit an offer. There are only three answers you can get: Accepted offer, counter-offer, or rejection of offer. There’s no harm in it, so get out there and buy your home today before it’s too late.