Homes Sales up in Tampa 2008 over 2007

Well the end of the world has not yet hit us and since we led the nation into the foreclosure/credit crisis, there appears to be many people taking advantage of the deals in Tampa Bay.

As the news gets updated you are going to see some interesting trends:

* Home buyers picking up short sale and foreclosed properties as investments and as homes

* Less available choices for homes as less people list their house unless they have to.

* People realizing that interest rates cant stay this low for long based upon how the federal government is subsidizing our economy.

*Condo towers converting to rentals absorbing a lot of inventory...examples in downtown Tampa--Element, The Place, Grand Central which amounts to over 700 Condos off the market in one year.

Accelerating trends like you see in the news are just the beginning of this:

Then nationwide this: http://www.cnbc.com/id/28854489

Of course the national economy is the big question and how our new government handles it. 2009 could be an interesting year in real estate....is it the bottom of the market or just a temporary stop?

The Short Sale Process reviewed

I continue to get more questions about how Short Sales work. I am participating in the Short Sale process on both sides of the transaction. I am working with buyers interested in a good deal and sellers needing to get out of a property.

There are 2 key steps for a seller in getting their home listed as a short sale:

Approval to Market Home as a short sale

The bank must agree that they will entertain a short sale offer on a property based upon the seller submitting the information about their financial situation, property information, and a hardship letter.

Approving an offer on a short sale

Subsequent to the approval to market the home as a short sale, the seller can then call the listing a short sale and apply a price to the property. The bank does not review the short sale price unless and until an offer comes in. At this time the bank does either a BPO (Broker Price Opinion) or an appraisal.

Once the bank has created a value to the home, the listing agent can advertise a short sale as an "Approved Short Sale". A bank reserves the right to keep offers coming in while the property is being marketed to ensure they maximize the value and reduce their losses.

Remember there is still an outstanding issue of a deficiency notice where the seller may still be responsible for the loss on the property. The seller may need to be prepared to negotiate with the bank once the offer comes in.

Many times the paperwork does not move quickly in a short sale but that is more bank specific. Generally plan on 3 to 6 months to get a short sale sold.

Super Bowl XLIII...The Next Big Tampa Open House

I have been asked a lot lately whether the Super Bowl will have any impact on the real estate market in the Tampa area this year.

MY ANSWER IS
YES!!!

Lets look at the basics:

1. International TV coverage in 223 countries and territories and 30 languages !
2. Over 100,000 people coming to play in our great cities!
3. An economic impact regionally of $300 million.
4. Cheap prices and real estate deals in Tampa Bay!!!
5. Events all around the area ranging from beach activities to some great parties in downtown Tampa, Channelside, YBOR city.
6. Money being spent in the Tampa Bay area to help our economy overall
7. People in a good mood with money to spend and leisure time

Also think about this: 13the worst for foreclosure real estate market according to RealtyTrac. Talk about deals to buy. Be ready for this great event!

Evaluating Pricing on Short Sales

As I continue to work with clients on finding incredible real estate deals in Tampa and St. Petersburg, I am always being asked about "Short Sales" and Short Sale pricing. For those of you that are not familiar with short sales, check out http://www.uniquetampahomes.com/shortsale for some basics on them.

Basically a good concept to remember is that there are basically 2 key categories of short sale and the important phase to look for is "Bank Approved". When you see "Bank Approved" that can help identify whether the price of a short sale and the terms has been reviewed by the bank. Generally Banks do not review or approve Short Sale pricing until there is a valid offer presented. Sometimes these offers take in excess of 6 months for the Bank to review and do an approval.

If the bank has not approved a price, feel free to make an offer on the home at a price you deem is reasonable. One caveat here is that the bank will continue to entertain other offers during the time that they care considering your offer. As a result, you might find that you have waited for 5 months for someone to offer a better price. When the Bank Approved language appears on a listing, it doesn't always mean that it is a deal, but it does tell you what the bank has agreed to take to get this home sold.

Listing price may not be sufficient to cover all encumbrances, closing costs...

When you are out buying a home, a little phrase that can help you identify a short sale opportunity can sometime be found the property description.I have been asked frequently lately what does "Listing price may not be sufficient to cover all encumbrances, closing costs, or other seller charges and sale of property at full listing price may be conditioned upon approval of third parties" mean in the MLS listings.This is the standard language (sometimes worded a bit differently) that our Multiple LIsting Service (MLS-database of home listings) asks to be placed in listings where the seller is selling the home as a "short sale". This language can be found in the realtor remarks as well as the description of the house. Short Sales can be a great opportunity for a buyer to acquire a property for less than previous owner owes on the property. There are many caveats to buying a short sale that a buyer should be aware of.....and usually patience and flexibility are the biggest requirements. For more information visit http://www.UniqueTampaHomes.com/shortsale