Home Buying in Palm Coast>Question Details

Stan Stockda…, Home Buyer in Florida

Short Sales In Palm Coast

Asked by Stan Stockdale, Florida Mon Jan 21, 2008

We are wanting to make a cash offer on a short sale, considering general opinion that prices are still heading downward, what percentage do you think one should offer off the asking price?

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Stan,
There are good deals on foreclosures in Palm Coast right now, if you want a list, I can email you one
so that you can see for yourself, I looked at a home for a customer that sold in 2005 for $360,000. and
it has been foreclosed by the bank and on the market for $169,000. needs paint, carpets and appliances,
but it is in good shape otherwise, it will make a great deal for somebody and there are manyl more.
0 votes Thank Flag Link Thu Jun 26, 2008
I am a realtor in Jax and have recently talked to a bank in regard to a possible short sale in Palm Coast (a condo in Canopy Walk). Her answer was that the bank looks to get at least 90% of the appraised value. So, I would suggest first assessing the area, (if you are unsure or have not visited, http://www.vacationrentalpros.com has some great rental listings). Narrow down to a few areas that you feel are within your price range. Ask a realtor for a Comparative Market Analysis to further narrow. Then look at getting an appraisal and make a bid. In terms of short sales - the bank is the one that finally accepts or denies it.
Good Luck.
0 votes Thank Flag Link Thu Jun 26, 2008
Hi Alan, You are correct...many properties in Palm Coast - Flagler County are very attractive now. It is important to know that cheap prices do not always equate to the best value.

Always do your homework, gather all the information you can and work with an experienced REALTOR to determine if now is the ideal time for you personally to purchase...everyone's needs and goals are different and should be treated as such.

If you are looking at bank owned or short sale properties...make sure your expectations are realistic and always have either a proof of cash funds letter from your bank or pre-approval letter from your lender before you begin your search. REO and short sale properties will require this information be submitted with any offer.

I wish I had all of the answers to your questions...but my crystal ball is a little fuzzy right now :-) The good news...our inventory levels have dereased significantly in the last 9 months.
0 votes Thank Flag Link Thu Jun 5, 2008
Ok, I guess I'm not understanding. I have been looking in Palm Coast as well. And as real estate professionals you are saying not to buy even though the prices actually look very good there? So your projections for average prices to hit a leveling off are what? How long out do you project that to happen? And what rate do you project prices to appreciate at from that point on?
0 votes Thank Flag Link Thu Jun 5, 2008
Hi Stan,

I agree 100% with Harry Ashley. He actually works in my office and is one of the hardest working most succesful agents in town right now.

If he is telling you to hold off until the summer months when sellers will be scrambling because the buyers have dissapeared, I agree...better time to get a better deal on a Palm Coast Home. Plus more and more bank owned properties are in the pipeline soon.

I also would suggest if at all possible, stay way from the short sales,,,they usually lead to dissapointing results for the buyer and once the bank gets ahold of them, you can generally pick them up for less and with a very quick closing.

When you are ready to purchase...give Harry a call...he will find you the best property for the best price.
0 votes Thank Flag Link Mon May 26, 2008
Hi Stan,

If you are considering making an offer on a short sale, you are obviously in no hurry! I have one short sale that I inherited, (I do not list short sales generally), we had two offers in the first week of January and the lender only responded last week. If you are not in a hurry, I would suggest waiting until the summer months when buyers are typically in short supply and prices appear to still be dropping. I am a full time Palm Coast Realtor.
0 votes Thank Flag Link Mon May 5, 2008
Stan, the previous answer can give you a picture of what dealing with a short sale could be like, your best bet would be a foreclosure which is lender owned and the listing price is a real listing price that is approved by the lender/owner of the property.
If you would like a list of foreclosures in Palm Coast, you can email me, my email address and other contact information is in my website.
Regards, Fred
0 votes Thank Flag Link Sun Apr 27, 2008
I recently made an offer on a short sale and found regardless of the offer the bank can accept, reject or come back with a price higher then listing price. I bid 140,000 on a home listed at 149,900. I made the bid based on the list price and condition of the property. The Bank countered at 160,000. That was about 2 weeks ago and the property is still listed at 149,900 even though the listing agent knows the bank wants 160,000. This seems more like a bait and switch then a legitimate way of doing business.
0 votes Thank Flag Link Tue Mar 11, 2008
Hello Stan,

I agree with the previous answer. Do your homework and have a Realtor come up with a market analysis.
Just because it is a cash offer does not mean that you will get an immediate response. Be prepared to wait. Remember that the offer has to be approved not only by the seller but also the lien holders.
Web Reference: http://www.PhilFowler.com
0 votes Thank Flag Link Mon Jan 21, 2008
Stan,

I would say there is not particular % that is standard. What I would do is find out how long the property has been on the market, how many offers have they had, the comps for the area to determine the actual market value, the presentation of the unit itself, inspection reports, and then come up with a good offer.

With cash only, I do think there is room to come lower than a lender supported offer but by how much will take some home work.

Good Luck. I love the Palm Coast area. I am an original Floridian transplanted to California.

CJ
0 votes Thank Flag Link Mon Jan 21, 2008
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