Tuesday, November 3, 2009

Weekly Report for Pinecrest, Palmetto Bay and Cutler Bay

Busy schedule Monday. Tuesday night works a lot better for me.

Here's the sales activity from our local MLS from last Wednesday, Oct. 28, 09 through tonight, Tuesday, Nov. 3, 09.

Village of Pinecrest
As of tonight Pinecrest has a total of 189 single family homes for sale. Only one is a foreclosure, 22 are short sales. 10 of the total available were added since last Wednesday; none of the 10 added to the market are bank owned or short sales.

There are currently 35 total under contract. 1 is bank owned, 14 are short sales.

104 closed in the last 6 months. 14 were bank owned, 5 were short sales.

1 home went under contract since last Wednesday. It wasn't a foreclosure or short sale.

2 properties closed since last Wednesday, neither were bank owned or a short sale.

Village of Palmetto Bay
Palmetto Bay has a total of 137 single family homes for sale tonight. 5 are bank owned; 31 are short sales. 7 of the total were added since last Wednesday; 1 bank owned and no short sales.

There are currently 46 properties under contract. 5 are bank owned, 23 are short sales. 4 homes went under contract since last Wednesday. 1 bank owned, no short sales.

108 propeties closed in the last 6 months. 18 were bank owned, 9 were short sales. One bank owned property closed since last Wednesday.

Cutler Bay
Cutler Bay has a total of 92 single family homes for sale. 5 are bank owned, 46 are short sales. 9 of the total were added last week; 1 is bank owned and 7 are short sales.

Tonight there are a total of 97 homes under contract. 13 are bank owned, 69 are short sales. 9 went under contract since last Wednesday. 2 are bank owned, 3 are short sales.

There have been 115 single family home closings in Cutler Bay in the last 6 months. 43 were bank owned, 25 were short sales. 4 sales closed since last Wednesday. 2 were bank owned, no short sales closed.

Notice the pattern? In each area, short sales out number the foreclosures when the properties are under contract. The numbers reverse when it comes to actual closings. A much larger percentage of bank owned sales close than those that are short sales.

Bank owned; sale prices are approved prior to it going on the market. Short sales prices have to be approved by the lender after it's under contract. Unfortunately for the seller and the buyer, a large percentage will not be approved and sold.

If you're a buyer thinking of making an offer on a short sale, unless you don't mind waiting two or three months only to find out the lender didn't approved your offer, take a hard look at the numbers before making your offer. Forget the asking price. You don't know how the asking price was determined. There are homes for sale at prices there's no way a lender will ever approve of. All that does is create a flurry of wasted activity.

You can greatly increase the odds of getting a short sale purchase approved by being realistic with your initial offer after a review of what it's really worth. Then at least you've got a logical basis to negotiate a good deal with the lender. Before approving an offer, the lender's going to take a long, hard look at the property's current market value. They'll pay one or two brokers and an appraiser to offer their opinions on what that current value is to add into their data analysis mix. Then they'll tally up the expenses they'd have to foreclose, maintain and sell it themselves. If your offer isn't close to what that projected number is, they're not going to approve your offer. Whether you're buying or selling, market value is the majic number to base your strategy on. Need help figuring out what market value is?

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