Ft Lauderdale Real Estate Review

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.

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An executor can sell inherited property as soon as certain requirements are met.

In many cases the success of a sale depends on the closing occurring in a timely fashion. It is important that the executor or personal representative have the authority to sell the real estate or personal property as early as possible. This article addresses when the executor can execute the deed and sell the property. An executor can sell inherited property as soon as certain requirements are met.

If the will contains a power of sale, the executor or personal representative is authorized to sell the property upon being appointed by the county probate court. If a decedent dies intestate (without a will), or executes a will with no power of sale, an executor or personal representative may sell real property only with the authorization or confirmation by the court. No marketable title passes until the sale is authorized or confirmed by the court.

In any case the proceeds of the sale cannot be distributed to the beneficiaries until after all the decedents debts have been paid ( at least three months after the opening of the estate).

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An estate executor is someone, generally a close family member, assigned by a deceased person's Will to settle their estate. Laws vary from state to state. In Florida, in cases where the decedent died without a Will the county probate court will assign someone known as a Personal Representative to carryout the same duties. Every estate is different and a large estate will have more complexities. Below are the 10 most common duties of an Estate Executor.

1. Secures legal representation for the estate. The executor should find an attorney that specializes in probate and estate settlement cases. They can charge hourly or by a precentage of the estates value.

2. Safeguards the assets of the estate. If the decedent owned real estate the executor should make sure the property is maintained and managed. Changing the locks is a good idea. Identify and safeguard vehicles and other personal property.

3. Petitions the court for Probate of  the Will. Probate may not be necessary, but a copy of the will should be filed with he probate court.

4. Assembles and Inventories all of the assets. Searches for insurance policies, securities, bank accounts, safe deposit boxes and obtains custody of them. Several certified copies of the death certificate will be needed for this purpose.

5. Administers the Estate. Manage the assets of the estate until they are liquidated and distributed. Setting up a separate bank account(s) is generally a good idea.

6. Procures appraisal of all of the estate assets. If there is more than one heir to the estate this will ensure a more equal distribution of the assets.

7. Sees to the filing of the estate tax returns. Tax returns from the first of the current year until the date of the decedent’s death must be filed.

8. Settles all proper claims from creditors of the Estate. Notice to creditors must be published in legal newspapers at least 3 times, so creditors can make claims of outstanding debts from the estate.

9. Distributes the assets to heirs of the estate.  Once the assets are liquidated, if necessary they are distributed to the heirs according to the direction of the Will or the Probate Court.

10. Obtains Final Discharge of the estate

Related:

When Can an Executor Sell Inherited Property?

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When prospective buyers are viewing your home it is a good idea to give them some space.  Now would be a good time for you, the homeowner, to go walk the dog or chat with a neighbor. When buyers are viewing a property, having the homeowner hovering around usually does more harm than good.

Buyers can't feel at home, or envisioning it as their home, when they feel the need to ask permission to open a closet door or cabinet.  When the owner is following a buyer around they mostly become a distraction. The buyers will feel compelled to make small talk or ask questions to be polite. If it is a couple viewing the home, they can't talk among themselves candidly with the owner around either.

Many homeowners feel they they know more about their home than anyone else, so they are the best salesperson for the job.  The reality is homeowners tend to oversell their own home. Features they point out that are important to them may mean nothing to the buyers, or may even be a turn off.  The buyers agent should know exactly what they are looking for and be there to point out those features.

If you are selling the home on your own this may be difficult to do. You don't want to leave your home with complete strangers. I suggest rather than giving them a regimented tour of your home, give them some space to explore on their own. Invite them to open doors and cabinets if they want and to feel at home. Be available for questions, but let your home do most of the selling.

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Writing a good property description should do one thing, and that is to help attract the most potential buyers to go see the property in person.   The more showings of the property you get, the more offers you will get.  It is that simple. It is unlikely you will get offers sight unseen.  So the purpose should not be to sell the property straight from the listing.

Writing a good property description means being concise. To attract the most buyers to the property, less is more. Keep it under 300 words. Way under if you can. When buyers are going through listings they look at the pictures first and perhaps take a glance at the description. If it takes up a whole page, chances are they won't read much of it. Use bullet points of unique selling features like this, instead of long prose when you can.

• Direct Ocean Views
• Open Floor Plan
• Custom Hardwood Cabinets
• Energy Efficient Appliances

If you write everything you know about the property, like a laundry list, you may bring up a feature a buyer doesn't like and they will never give the property a chance. Don't exaggerate or get too flowery. Chances are you don't really have a million dollar view. If you do, call me.  There is no need to repeat things that are elsewhere in the listing, like the bedroom count or square footage, either.  Like I said earlier, the buyers will focus on the pictures first, so make sure they are of good quality or it won't matter what it says in the description. Write for the masses, keeping in mind you want to get the most potential buyers through the door. Then the real selling can begin.

Other Posts of Interest

Low Ball Offers and How to Handle Them

The Best time For Selling Real Estate in Florida

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If you have been making offers on bank owned properties lately you have probably heard the term "highest and best offer". As in "this is a multiple offer situation. Please submit your highest and best offer by noon tomorrow". A lot of buyers automatically assume the highest offer (most money) is the best offer, but that isn't always the case.

Many buyers can't believe they got out bid even though they offered more than the asking price. My foreclosure listings routinely get multiple cash offers above asking price. A typical offer for a foreclosed property will be for cash somewhere near the asking price, a 3% to 10% earnest money deposit, and 5 to 15 day inspection period. Competition for these properties has gotten tough lately. I am going to offer a tip that will make your offer much more competitive and more likely to get accepted.

The "best" in highest and best refers to terms or contingencies attached to the offer. Eliminating these contingencies will make your offer stand out even though it isn't necessarily the highest. Asset managers, the people put in charge of disposing of these properties, don't have a lot of patience. They want the properties sold quickly. An offer that is 10% higher than asking, but is subject to financing, and a 15 day inspection may actually be looked at as a weaker offer. Accepting this offer has risks because they don't know what will happen at the inspection and whether the buyer can get the financing needed. The property is off the market for an extended period of time and could end up back on the market a month later when things go wrong.

So here is the tip to make your offer stronger.

Make your cash offer as-is without inspection contingencies. This may sound nuts to a lot of you, but it will work. There is plenty of cash out there chasing these foreclosures. It's really not that special. In the eyes of an asset manger an offer without inspection contingencies, and especially without financing contingencies, is much more likely to close. It’s worth giving up a higher offer with potential pitfalls. If you are an experienced investor you should know what to look for when it comes to repairs issues, or have someone at your disposal to check out a property before the offer is submitted. You risk the expense of the inspector but in the long run you will close more deals and at a better price. To me there are properties where hiring a professional to inspect it isn't necessary. Condos for instance. How much can possibly be wrong in the interior of a unit that isn't plainly obvious. An AC unit? A hot water heater? And if that $50,000 condo can rent for $1000, there is certainly some room for error anyway.

Do this at your own risk and use some common sense.

To be clear I am not saying fore go the inspections entirely. A 50 year old home on the water with a seawall and dock should surely be seen by pros. Again use your common sense. Some of you are comfortable doing your own inspections and that’s great. Otherwise just hire the inspector before the offer is presented and be sure the offer clearly states there is no inspection contingency. The lack of an inspection contingency also shows you aren't a flipper. A long inspection period is a tool used by flippers to get control of a property and quickly find a buyer to flip it to for a profit. If they don't find a buyer during the inspection period they simply use the contingency to get out of the contract. This is also known as a "weasel clause". The strongest offers have quick closing dates, no contingencies and high, at least 10%, earnest money deposits. If you really can't inspect a property prior to submitting an offer make the inspection period as short as possible, say 2 to 3 days.

If you are an agent working with buyers I know you are frustrated with the low percentage of accepted deals on foreclosures. You can't tell your buyer to skip the inspection. That will just get you in hot water. If you can get your buyers to accept the small risk of employing the inspector without a solid deal in hand you will more likely be the BEST offer and not necessarily the HIGHEST. I have seen this work as both a listing agent for REO properties, and a strategy I have shared to help my investor buyers get more closed deals at a better price. Good luck.

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