It seems that every time we think the market has hit bottom, it drops more. No one seems to really know exactly where we are in the cycle. Some say we have another two years before prices climb. Others feel we are there now.
Do sellers take a big loss now or a small loss month by month by renting for less than expenses?
Judging by the number of foreclosure and short sale properties on the market, it looks like we still haven't started to climb. More and more properties are coming up as short sales.
In our own situation, we work closely with a loan mitigator in short sales, and one of the banks' conditions is that a property be listed. This shows that you are actively trying to market the listing.
The mitigator works with a customer to get the hardship letter and all the paperwork into a professional package to present to the bank. It's much like having an insurance adjuster deal with an insurance company for your claim. He deals with the bank and pushes your package through.
The bank then decides IF they will do a short sale on the property. Normally, they will take some loss, but if it is way below market value, they may just foreclose. Agents often price these properties below market value hoping for an offer. When an offer comes in, the mitigator negotiates with the bank to try to put the deal together.
Banks usually reject the first offer and present a counteroffer, but this process can take anywhere from a few days to a few months. The buyer may then accept that offer or try to counter. Right now, the loss mitigation departments have hundreds of files on their desks, and one missed call can send you back to the bottom of the pile. Once the bank has countered, we know what the bank will accept and can go from there.
If all this processing is not done until an offer is made, you can see how it delays the procedure even more, and buyers tire of the long wait.
Selling properties for full price
On a more encouraging note, we did have two properties close this week that were full price. When I stopped to think about how this happened, I realized that though one home was about $180,000 and one was $550,000, they had one thing in common. Both homes had something unique about them, and the buyers fell in love with the properties.
The first home, a typical 1980s ranch, had been completely updated inside with granite counter, furniture style cabinets in the bath, upscale lighting, slate tile, built-in bookcases, and coffered ceilings with crown moulding. The pool was bigger than a small motel pool, and it was on a canal (without Gulf access). It oozed charm!
The second home, a new Spanish-style waterfront home, featured coffered ceilings and crown moulding, exquisite tile inlays, elegant carved details on columns and baseboards, granite, quality wooden cabinets and spa-like bath. This elaborate pool had the splash over fountain and Gulf access.
Both homes had the WOW! Factor. The owners went beyond the ordinary ranch or ordinary Mediterranean home to create a home with its own signature, its own attention to detail and fine craftsmanship. Both had pools, both were waterfront properties, but both offered something extra, giving them more value. If you'd like to see these two homes, here are the links:
There are 1519 properties for sale in North Port, Florida in the MLS. The number of available properties has increased by 25 properties from last month. 505 of the active listings are brand new, 2006-2007. This number has decreased by 8 properties since last month.
In the past 30 days September 1-30, 41 properties went pending. 9 of the pending listings are brand new, built in 2006-2007. 18 less properties went pending this month than last month.
Looking at the pending properties, 17 have a listing price of $150,000 or less.
17 of the pending properties have a listing price of between $150,001-$200,000.
0 of the pending properties have a listing price of between $200,001-$225,000.
2 of the pending properties have a listing price of between $225,001-$250,000.
1 of the pending properties have a listing price of between $250,001-$275,000.
1 of the pending properties have a listing price of between $275,001-$300,000.
4 properties have a listing price of $300,001 or more.
Using the same time frame, 43 properties closed. 30 fewer properties sold this month than last month. 11 of the sold listings were brand new, built in 2006-2007. The number of brand new listings sold is down this month by 9. Last month 2.4 listings sold per day, this month 1.4 listings sold per day.
Looking at the sold properties, 12 have a listing price of $150,000 or less.
13 properties sold between $150,001-$200,000.
6 properties sold between $200,001-$225,000.
4 properties sold between $225,001-$250,000.
2 properties sold between $250,001-$275,000.
0 properties sold between $275,001-$300,000.
6 properties sold for $300,001 or more.
Visit our new site TropicalFloridaProperty.com - coming in January 2008!
Looking for property in North Port, Port Charlotte, Punta Gorda, Englewood and the surrounding areas, visit any of our websites at http://www.twomoores.com/