Destin to 30A Real Estate Blog
Destin, FL Foreclosures - Why hire a Realtor?
Destin, FL Foreclosures - Why Hire a Realtor?
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WHY DO YOU NEED A REALTOR WHEN BUYING AND SELLING FORECLOSURES AND SHORT SALES IN DESTIN, FLORIDA?
Buying and selling short sales and bank owned properties in Florida can be a very rewarding process. Our current shift to a distressed market makes real estate agents even more valuable to buyers and sellers of distressed properties. These types of transactions are not typical and require a high level of expertise. One should hire a real estate agent that has the experience and training needed to successfully close one of these transactions. I am a certified distressed property expert (CDPE) and I have also completed “Short Sales Superstars” training. I personally endorse both of these systems and feel any Realtor would benefit from taking these courses. I have successfully closed both short sales and bank owned (REO) properties and I have to tell you they are not your standard real estate transactions. Below are some common issues when dealing with distressed properties.
Short Sales and Bank Owned Foreclosures (REO) – Why do you need a Real Estate Agent?
ü What is the correct way to complete a short sale package for a short sale listing?
ü What is the correct pricing strategy and price reduction strategy for short sale listings and REOs?
ü When buying short sales and foreclosures, listing prices can vary. The important factor is “value”. A realtor can provide you with a CMA Report “Comparative Market Analysis”. This report will show you the current value and help you make the correct offer. There are many overpriced short sales and foreclosures. Understanding the true value is critical and Realtors have access to superior CMA reporting through their local MLS. This will save you money and prevent you from overpaying.
ü What contract do I use? In Florida, we have the FAR, FARBAR, FAR WITH AS IS ADDENDUM, FAR BAR AS IS, and the SHORT SALE ADDENDUM. Different contracts should be used in different situations. For example, I feel the FAR/BAR AS IS contract works best when representing buyers of distressed properties because of the inspection period language.
ü Who is the best property inspector for REO’s and Short Sales? Foreclosures and Short Sales are typically sold AS/IS. Do not let the name deceive you. An AS/IS sale is not a bad thing. It is critical that you have a good inspector to point out any issues with the property and have the correct inspection period language in your contract. Also, understand that utilities may have to be turned on for the inspection and the home may have been without power for months or years.
ü How do I negotiate with the Bank? There are many factors to consider when negotiating with the bank. How long has the property been on the market? Is it a local bank or larger Bank? Is it a short sale or a foreclosure? What is the condition of the property? The list goes on and on. A "distressed property" Realtor can advise you on all of these situations.
A Realtor with distressed property experience has now become a necessity. I encourage all buyers and sellers of Real Estate to hire a Realtor with distressed property training and experience before entering into one of these complex transactions.
Clayton Bonjean, Broker, MBA, CDPE
850-585-1284
*Servicing Destin, Sandestin, Santa Rosa Beach, Miramar Beach, WaterColor, Rosemary Beach and surrounding areas.
"Mainsail Realty Company/Clayton Bonjean is not associated with the government, and our service is not approved by the government or your lender." "Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit"