The way that real estate is now bought and sold has changed so much over the past few years. Buyers now choose from foreclosures and short sales with the seller owned homes being the minority.
Working in the Sarasota/Bradenton real estate market today is like being back in 2005 again with the multiple offers pushing the price over asking and all this within hours of the home being listed. Buyers have to be educated on how to actually get one of these bank owned deals!
The other part of the market is still moving slowly with homes collecting days on the market and price reductions until they are more competitively priced to the foreclosures.
The first time homebuyer is once again having a hard time securing their dream home because there are so many cash buyers in their price range. The cash buyers are second homebuyers that have patiently waited for these prices and our investors are back too!
Short sales are finally moving but not without a lot of grief along the way. The documentation required from the seller is lengthy. The banks are spending so much time with BPO's when they need to just be doing an appraisal. It's still up to six months before you may see the closing. Just to add a little more to the mix buyers should be aware that if the seller files bankruptcy during the short sale process and includes the home in the bankruptcy that home can no longer be sold via short sale.
Recently BOA has countered two different offers on homes by $20,000! The homes are not worth what the bank is asking for them. This forces the seller into foreclosure. I have not had this issue with any other bank.
The new short sale is the homeowner who woke up and realized that their $400,000 home is now only worth $200,000. Their American Dream has now turned into their nightmare. It's like a noose around their necks. They are faced with tough decisions. If they stay in that home how many years will it be before it's worth what they owe on it? If they walk away they ruin their credit and face the possibility of the bank filing a deficiency judgement against them.
Mortgage modifications are nearly non existent. People need help NOW, yesterday! I have heard so many heart wrenching stories that could have been avoided if the banks had listened sooner. We have so many foreclosures that didn't need to be.
The rental market is now quite strong. Just the opposite of where it has been for many years. We've turned homeowners into renter's once again.
This market will continue for some time however in Sarasota/Manatee counties the buyers are here and that is helping to reduce the inventory. However they are realizing that there was a lot more to choose from 12 months ago. Remember no one knows the bottom until it's passed you by...................