When is taking a lower priced offer for my home better?

 When is taking a lower price offer for my home better? Are you selling a home in Wellington | West Palm Beach | Royal Palm Beach Florida?

Today’s Real Estate Market in Palm Beach County is going up fast than sold comparable are. What does that mean? If a three bedroom home sold for $300,000 6 months ago, and a similar home comes on the market today for $340,000. With buyers willing and able to pay the higher price due to demand and low inventory. The two main ways this can successfully close $40,000 above the last sale:

 

A) The buyer pays cash (it is still legal to pay too much money with your own cash!)

B) The home appraises for $300,000 and the seller is willing to pay $40,000 above appraised value.  

 

So if you are the seller of the $340,000 home and you have two offers:

A) $350,000 buyer using an FHA loan and has no money above appraisal.

B) $340,000 buyer putting 50% down with no appraisal contingency.

 

You are better off taking the lower offer, since under scenario A) the appraisal is pretty much guaranteed to come in below that asking price. At that point you the seller can either lower your price or put the home back on the market.

 

An experienced Realtor will explain each offers benefits and draw back to you, so you can make an educated decision.

 
Are you in the market to buy or sell a Single Family Home, Townhouse, Villa or Condo in Wellington | West Palm Beach | Royal Palm Beach Florida? Don't forget to call Karl R Schulz of Friday Realty 561-379-7881 www.FridayRe.com



 



 

FHA cuts waiting time for new loan after Hard times!

Thinking of buying or selling a home in Wellington Royal Palm Beach | West Palm Beach | Palm Beach County | Florida

If you are planning on buying new home and intent to use a FHA purchase loan and have had a recent hard times, there is good news. The Federal Housing Administration (FHA) waiting requirement times have been cut to one year, waiting time after bankruptcy, foreclosure or short sale.

The previous waiting period had been two years after the completion of a bankruptcy and three years after a foreclosure or shot sale.

You are still going to have show that your income had dropped by 20% or more for at least 6 months and was tied to unemployment or other event beyond your control.  And you must complete at least one hour of approved housing counseling among other things, including showing 12 months of on-time housing payments.

FHA credit scores are and debt to income ratios are generally more liberal than Convention or Fannie or Freddie Mac loans.

Call Karl R Schulz Friday Realty LLC for your Residential Real Estate needs in Palm Beach County,

561-379-7881 wwww.FridayRe.com

 

 

Buying a Home in Royal Palm Beach | Wellington | Palm Beach County and like to ride MotoCross?

Buying or selling a Home in Royal Palm Beach | Wellington | West Palm Beach | or other Palm Beach County towns and like to Ride Moto Cross? There are 3 tracks with in 90 miles from central Palm Beach County.

Buying or selling Real Estate in Royal Palm Beach, FL | Wellington, FL | West Palm Beach, FL |
Call Karl R Schulz Friday Realty LLC. 561-379-7881 www.FridayRe.com ">

Royal Palm Beach Foreclosure Home Funny photo of the day....

I see all types of Foreclosure homes. This was from a Royal Palm Beach Florida listed Bank Owned sale. It appears the epoxy holding up the kitchen sink didn't work any more. So a house hold battery and a 1x2 will have to do.

In the market to buy or sell a home in Wellington | Royal Palm Beach | West Palm Beach Call Karl R Schulz 561-379-7881 Friday Realty LLC.

Can you still get a deal on a foreclosure?

Can you still get a deal on a foreclosure home? I get that question a lot. Despite what a lot of late night infomercials let you believe (as long as you let them charge your credit card!) finding a deal is work, it's a lot of work. No don't get me wrong there is a lot of money to be made buying rehabbing and selling foreclosure homes. You just have to do your home work first. Most of all you have to know your numbers and don't over improve. Remember its an investment first. Let me first get the negatives out of the way, and point out a few of the obstacles you are up against. 1) Clueless people, who are better off with CD's at the local bank. They have bid on 54 other homes before this one that you are bidding on and just want a home. And bid with their emotions, not their wallet. 2) Owner occupants, that are willing to pay retail for a home since they plan on living in the property for a long time, price is not that much of an issue. 3) Investors with a 5-7 year time frame. There are investors some with Wall Street money, they bid on properties sight unseen. They pay above retail, all cash and only care about current price, a rental cash flow is more important. There are hoping the home will sell for more money in 5-7 years, till then, they make their money off rental income. 4) Investors that bid crazy money just to get the home off the market. Later they may try to get the price down by saying there are issues with the property they didn't know about. I can go on and on, but like to keep my post short and sweet. Here are a few tips: Unlike buying a car off Craigslist, were you start below what you are willing to pay. In the Foreclosure game, successful bidders generally have to bid at or above asking price. There are exceptions to the rule: the home is in need of major rehab, and was not price in accordance. The home has been on the market for a very long time. Timing, I have always been a fan of bidding on items (eBay or Foreclosure homes) around major holidays. People are distracted and picking up relative at the airport a day before Thanksgiving. Terms, the Bank that owns the property may prefer to sell a home to a cash buyer $5,000 below the next buyer if that buyer needs an FHA mortgage and the seller to pay some of the closing cost. The longer the property has been on the market, the better for that strategy. Location, chances of winning a bid on a Foreclosure home that is in a "Hot" area, in great shape for a price that allows you to flip or rent, are not really that high. The more negatives a home has about it the better, or greater chance to win a bid. In the past few years Banks and the asset manager (helping Banks market the homes for sale) have climbed up the learning curve. First Banks are holding back properties for sale, there are several reasons. One being low inventory increases prices. Banks have also started rehabbing homes to a degree. I have seen many a Bank owned home with the same color carpet and paint as the last 35 Bank owned homes. I call the color foreclosure beige. Fannie Mae is also offering HomePath properties. On a HomePath property, if the buyer uses a HomePath loan, there are no appraisal requirements and no Mortgage Insurance. But like many things in life there is a price for free stuff. The Mortgage rates are higher, and the home may be priced above market value. I hope this information will assist you in your home search. If you or a friend or family member is the Market to buy or sell in Palm Beach County. Please feel free to introduce them to me. Karl R Schulz Friday Realty LLC www.FridayRe.com 1003karl@comcast.net phone 561-379-Seven-Eight-Eight-One. Sincerely, Karl R Schulz

Are Home sellers wrong not wanting to consider FHA buyers?

Are Home sellers wrong not wanting to consider FHA buyers?

As a full time Real Estate Broker, I see Real Estate listings advertised in which seller only want to  consider Cash or Conventional buyers. Fearing that an FHA buyer would require to much effort and cost the seller money.

A recently closed short sale listing of mine had multiple contracts till it closed. The second buyer was going to obtain an FHA purchase mortgage. The FHA appraiser noted that the pool was very green and  not safe to use (unless you are a frog) and a broke kitchen light switch.

The Bank would not close in the loan unless the two issues were corrected. The buyer being a first time home buyer and having little experience with pool repair’s, canceled the contract.

The next buyer (and now the proud owner of the home), used a conventional lender/loan. The Conventional lender required the same items to be repaired. The Licensed Real Estate appraiser made a note of the issues on the first visit. Once repaired the appraiser make a quick re-inspection, and submitted a report to the lender for review.

FHA appraisals do vary from conventional appraisals. An FHA certified appraiser will know all variations. The main differences are safety and functions. FHA wants to see that there are no obvious hazards such as big holes in the yard that could lead to a trip and fall or metal rebar sticking up from a concert slab in the back yard. FHA appraisers are also check that all electrical and heating and cooling are functional. Meaning they should check all the stove burns, and all the lights turn on and off. But in no way does a FHA appraisal come close to a Home Inspection.

The broad definition of a Real Estate appraisal is the estimated value of Real Property at a given time. The FHA appraiser just takes a closer look to see if the major items of a property work and that there are no major obvious dangers or hazards present.  

In my professional opinion, if your home was built less than 20 years ago. And was fairly well maintained, you should have nothing more to fear from a FHA buyer than a Conventional buyer.

A property inspection will un-cover many more defect of a property than an appraiser, but that is a topic for another story.