Ocala Real Estate Talk

Archive for the ‘Ocala Foreclosures’ Category

I work with a lot of first time buyers and out of state buyers and as we look at homes I try and point out things that make one house better than others. Here are some things that I think make for a quality home here in Ocala.

CBS or concrete block and stucco construction. Everything else is considered inferior do to the termites. CBS homes can get termites because there is wood framing in the walls and roof but CBS is considered the best material and commands a higher price than frame house. Read the rest of this entry »

Sales in August at 283 homes were up from July’s 269 homes. June was the best month so far this year at 319. Total listings remain around 5,500 homes.

Sales are way up in 2009 over 07 & 08 but that is because home prices are way down. Most of current sales are driven by bargain hunters snapping up foreclosures and short sales. The 55+ communities will always attract buyers because people retire regardless of the economy but prices are coming down in these communities as well.

Home prices in Marion County will not rebound to 2006 levels because they should never have gotten that high in the first place. Marion County does not have an economy to support $200,000- plus housing and never did. That is what out of the area builders and investors never understood and local builders ignored. Now that construction has almost stopped our unemployment rate is 12.5%.

I don’t mean to get down on our area but it is important for sellers to get a true picture of our economy so they can make informed decisions. Homes are selling every day but price is the way to move a house. The MLS is on the internet and buyers know a good deal from an over priced house and no amount of advertising can change that.

Buyers now is the time to buy. Interest rates are at historical lows and given the deficit spending our government is doing, inflation and higher rates are almost certain.

Statistics used for this blog post are from the Ocala Marion County MLS and are deemed to be accurate at the time this blog was written but are not guaranteed. All information is time sensitive and subject to change without notice.

Hardwood Trails

Hardwood Trails is a 55 plus retirement community located in SW Ocala Florida. Hardwood Trails has several issues as out lined in a recent Star Banner article regarding problems between residents and the developer. For example there is a very nice community center but the pool isn’t finished. This is also a gated community but the gate doesn’t work. Despite these issues I really like Hardwood Trails for the long term. Hardwood Trails is in a great location just minutes from all the shopping, restaurants and health care offered in the SR 200, SW corridor. This is also one of the few subdivisions where the developer left all the trees. Home prices are in the mid to high $100′s. HOA fees are about $90- per month for maintaining the common areas, the clubhouse, trash and basic cable.

If you would like a list of homes for sale in Hardwood Trails fill out my Dream Home Finder located in the column on the right hand side of this page.

Read the rest of this entry »

This is an update to my very popular Highest and Best Offer post.

I found a really nice house for buyers I was working with for several weeks. After making our offer the seller came back and asked for the highest and best offer. I gave my buyers recent sold comps that showed the asking price was very aggressive. That combined with the fact that this foreclosed home had never been lived in led the buyers to make an offer $10,000- above the asking price. The listing agent came back the next day to say that the bank had accepted a cash offer.

The actual sale price of a house can’t be determined until closing. Agents never reveal the pending price. That would place the seller at a possible disadvantage with the next buyer should the deal fall apart.

I will publish an update to this little story in a few weeks. The moral to this story is that cash talks. A cash sale has no finance contingency and can close faster than financing. Banks like a sure thing.

Yes that’s right, Ocala foreclosures are getting multiple offers, even in our extreme buyers market. There are lessons here for both buyers and sellers of Ocala real estate.

Buyers need to understand that really prime or unusual properties can get bid up beyond the asking price. It’s supply and demand. There seems to be a never ending supply of foreclosed homes in The Shores and Marion Oaks but houses on large lots and mini farms are much harder to come by. Foreclosed homes that were never occupied might also fit into this category of especially desirable foreclosures.

When ever a bank gets more than one offer they ask the buyers to submit their “Highest and Best Offer”. Foreclosures that get bid up above the asking price are usually still a bargain. It’s all about comparable sales in the last 60 days and the lowest priced active listings. That is how to value property. Your Realtor should provide a CMA to find the foreclosed homes value and the buyer should base his offer on this data.

Sellers can learn that despite the doom and gloom you see on the news, really well priced houses are selling every day. Traditional sales can compete with foreclosures by offering a better location, exceptionally good condition as well as a very aggressive asking price.

If you’re read my Ocala Foreclosure Guide on my web site or what I’ve written about Ocala short sales on my blog then you know that I don’t like short sales at all. The biggest problem I have with short sales is that so few actually close. Of course the banks are part of the problem. Some banks are so overwhelmed that they just don’t have the staff capable of handling the work load. Then there are buyers and their Realtors that don’t submit a complete short sale package. The over worked staff at the banks will just put these incomplete deals to the bottom of the pile. Buyers themselves have to take responsibility too for a lot of short sales that don’t close. Too many buyers want a cheap house without the work and hassle and just bail out before the offer can get processed. Most short sales take about 8 weeks to close.

From a buyers point of view I still think foreclosures are an easier transaction. I will admit that as time goes on I am seeing more short sales close as both Realtors and banks get better at them.

For sellers I think short sales are a last resort and better than foreclosure. I used to turn down short sale listings but I’ve recently changed brokers. My new broker, Coral Shores Realty, owns an affiliated title company that has a short sale program. A lawyer from the title company will prepare the short sale package as follows.

1. Title and Lien Searches.
2. Compilation of Seller’s documents to demonstrate financial hardship:
a. Preparation of Financial statement and hardship letter
b. Tax Returns
c. Bank Statements
d. Comparative Market Analysis of Property, which can also be provided by
Realtor or Appraiser
e. All other documentation that they deem necessary.
3. Preparation of Preliminary HUD-1.
4. Direct and Constant Negotiations with the loss mitigation department of the
Lender(s). This is one of the most critical areas that is usually the down-fall
of most short-sale transactions.
5. Responsible for obtaining final approval from all lender(s) in establishing an
APPROVED SHORT SALE PRICE.

Call me for further details and fees regarding listing your Ocala short sale.

In Ocala foreclosures the term, Highest and Best Offer, seems to be coming up more and more. Foreclosures here in Ocala are very hot. Banks are now trying to get buyers to bid against each other.

Here’s how it goes. You find yourself a nice foreclosure and make an offer. A few days later the listing agent sends your buyers agent a form or email asking you to submit your Highest and Best Offer. The reason being that there are multiple buyers interested in the same house.

Not all foreclosures are created equal. Some are just a lot more desirable than others. Banks can’t get away with this on every property.

There was a time a few months ago when this practice was rare but it is becoming more common as more and more buyers are looking for a great buy on a foreclosure here in Ocala Florida

There are a lot of people out there looking for a foreclosed house here in Ocala Florida. The problem is t hey have a hard time finding them. I’ve had people call me, email me and I even read a letter to the editor about not being able to find a nice foreclosure here in the Ocala area. Now this is just plain crazy seeing there are over 200 of them listed on the MLS at any given time.
I’m a die hard do it yourselfer but I also know when I just don’t have the right tools for the job. Yes this is where I suggest that you contact your friendly Ocala Realtor, preferably me of course.
I can search on a lot more things than you can on the MLS. As a matter of fact it’s as simple for me as checking a box on my search that basically says “foreclosures only”.
So when you’re ready to get serious about your foreclosure search let me know. If you want to make it easy you can go to my Ocala Dream Home Finder and fill out the form and write Foreclosures in the special wants area. It’s just that easy.

Foreclosure listings on the Ocala MLS seldom have a lot of images. As a matter of fact most foreclosure listings only have one image which is the minimum required by our board of realtors. Buyers are used to a dozen images or even a virtual tour when looking at traditional real estate listings online. Foreclosures are usually presented with the bare minimum of information. Foreclosures are sold by a few listing agents who specialize in these types of distressed properties. Their marketing strategy is simple, price the foreclosed home cheap and it will sell quickly. To tell you the truth it works. I realize that is little consolation to buyers expecting more info. And it’s especially frustrating for out of the area buyers.
For more info on buying a foreclosed home in Ocala see my Ocala Foreclosure Guide.

Foreclosures in Ocala and just about every where else are sold “AS IS”. That’s really AS IS with the right to an inspection within a specified period of time. The buyer has the option of withdrawing their offer should the inspection reveal a large issue with the home.

In Ocala there are a lot of foreclosures that are only a couple of years old and some have never been lived in. However these same houses have also sat vacant with no AC in the hot humid Florida summers. Many houses that were never occupied might never have had the builder do a final punch list. That’s all those things that were either over looked or just screwed up by sub contractors and should have been repaired by the builder but were not.

It’s very important to have a home inspection no matter how much you know about home repairs.

Most important of all is to realize that AS IS means just that. No one is going to fix anything ever. That’s one reason the price is so low.

For even more about foreclosed homes in Ocala