Short Sales vs. Foreclosures

I was doing some organizing on my desktop over the weekend, and I was stunned to realize that I have never done a blog post about the difference between Short Sales & Foreclosures.  I was shocked, because I answer this question on a daily basis. Well I intend to rectify that.

Importance of Knowing Differences Between Types of Sales

The real estate market used to consist of sellers who were looking to move due primarily to lifestyle change. Now we have what we deem as “normal sellers”, short sales that involve the actual owners of the home and their lender, and then foreclosures where the bank is the owner/seller. Being aware of the different types of sales can help consumers understand the time frames and responsibilities associated with each.Short Sale

The “Short Sale”

A Short Sale, sometimes listed as a pre­‐foreclosure, is a transaction in which the owners are upside down on the home and they have chosen to negotiate with their lender (lien holder) to take less than what they owe and sell the home to a new owner. This process is extremely lengthy and involves several different hurdles that the sellers and potential buyers must cross.  First of the all, the sellers have to prove hardship, that they are unable to pay their current mortgage. The bank will then send out a third‐party to assess the current market value of the home, and that is usually the price they will accept for the property from the new buyer. Since banks are slow to answer, this process usually takes several months.  Buyers have to wait while the bank assesses the value determined by the third-party agent and the seller’s financial situation.

Foreclosure Sale

A Foreclosure, or bank-owned, sale is a transaction in which the bank is the owner on record for the property. These sales are much quicker and less convoluted. The bank relies on the listing agent to determine the value for the property prior to putting it on the market, and they are typically priced slightly below market value in order to garner multiple offers. They can be competitive, but are usually well worth it. Also, they can typically close within a normal 30­‐60 day time period.

The most important thing is that you can get a great deal in this market, but you need a knowledgeable, proactive real estate professional to guide you! Contact a Nectar real estate agent to help you with this process!

 

celebration’s unique vehicle

For those of you who have have been to Celebration, Florida before you may have wondered about the little “cars” or “golf carts” that you see on the road around town. As a small town with speed limits that rarely exceed 25 mph, Celebration is the perfect setting for NEV’s.

What is a NEV?

A NEV, or Neighborhood Electric Vehicle, is an electric vehicle that is capable of traveling at maximum speed of 25 mph. They come with safety features like headlights, turn signals, and seat belts and are only permitted on roads where the posted speed limit is 35 mph or less.

NEV Celebration Florida

NEVs come in a variety of models including 2, 4 and 6 seat versions, and many utility models feature long or short flatbeds. These vehicles are street legal and do require vehicle registration and insurance just like a full size car. However, they can also be used on the golf course where the “turf mode” of the vehicle limits the top speed to 18 mph.

NEVs in Celebration

Many times when tourists come to Celebration, they have never seen one of these cars before and so I am often stopped to answer people’s questions or even let people take pictures of my NEV. They are great vehicles for traveling around town, and the seats are large enough to accommodate car and booster seats.

It is not uncommon to see several NEVs on the road in Celebration with people driving to soccer practice, dropping their kids off at school, running errands, or just heading out to dinner at one of the restaurants downtown. These interesting vehicles are a fun and practical mode of transportation for the residents of our Celebration community.

Relationship, Trust and Real Estate

My business is selling real estate, but before that can be done successfully something needs to be built….a relationship.

Your Relationship with Your Relator Counts!
Your Relationship with Your Realtor Counts!

Building relationships with clients is one the most rewarding parts of my career as a real estate professional. My clients need to know that I am an expert in my profession, practice truth, am cognizant and protective of their best interests and will be fiercely loyal to them.

Once they understand this, a trust is developed and trust is a key component in creating dynamic symbiotic relationships.  After all, how can you comfortably navigate a real estate purchase when you don’t have a trusting relationship with your real estate professional?

15 year mortgage vs 30 year mortgage -­ how much can you save?

It has come to my attention recently that a lot of consumers don’t realize that they have more than one option as far as loan terms go. Often times, buyers just assume that they will get a 30 year loan without researching and weighing the pros and cons for the 30 year term versus the 15 year term. If they are aware that they can do a 15 year term, they Nectar Mortgage Calculatorusually think that their payment will be twice as much, and this simply is not the case.

How much could you save?

I would like to compare the costs of the two different options with the following scenario: I have buyers who are currently looking to purchase a $250,000 home in Orlando. Right now the average interest rate on a 30 year loan is 4.75%. If my buyers put 20% down, they would be financing $200,000 at 4.75%. That would give them a principle and interest payment of $1043.29 per month. If they made every payment (all 360) over the life of the loan, they would pay $375,586.08 for their home. Now the average rate for a 15 year fixed mortgage is 3.75% right now. If my same buyers borrowed the same amount of money ($200,000) at 3.75%, their monthly mortgage payment would be $1454.44. That is approximately $410 more per month; however, you would pay significantly less interest over the course of the shorter loan term. If my clients made all of the loan payments (all 180) over the course of the loan, they would pay only $261,800.08 for the home. That is a savings of $113,786!!!

Imagine all of the things my clients could do with that extra money. Plus if they pay off their mortgage after only 15 years, they can start saving extra money for retirement, college tuition for their children, or just have some fun without the worry of that monthly payment. For $410 per month, my clients can cut their mortgage term in half.

All home purchases are different, so if you have questions about this scenario or you would like me to run the numbers for your home purchase, please feel free to contact me any time. Help with determining how much you could save when purchasing your Central  Florida home is just one of the many benefits we offer our clients. I look forward to assisting you with your property search and transaction.