TODAY’S MARKET 101

I’m sure you have been reading that ‘NOW’ is the time to buy…. even Donald Trump says so – AND -

says ‘he’ is buying like crazy.

Please understand that every market – and there are many markets in each state – are different from another.

I can’t attest for other areas of the country, but regarding the West Coast of FL and the Tampa Bay Area …… please do not hesitate to send us your questions. Quantum has Realtors in all of our service areas that are available to assist you with all of your Real Estate needs.

Update:

It appears we bottomed out in our local market areas several months ago – but, with that said - there is non-ending inventory being introduced into the market every week. However, it ‘is’ a challenge to secure a property. Now, isn’t that a strange thing for me to say? Lots of inventory – should be simple – just place that offer!

Let’s talk first about the Bank/Owned (REO) Properties:

‘If’ the property (speaking to residential) is priced right at the onset of the listing; and, ‘if’ the property is in a sought after area; and, “if” the property is in decent condition – you can expect multiple offers within the first few days of its being listed; it will sell for over the listed (asking) price; and it will be off the market by days 5 - 7. And, this is happening at every price point.

Your Quantum Realtor:

(a) knows the area you are interested in extremely well;

(b) has been working in the market throughout all the changes of the past few years;

(c) is a full time Realtor that can be responsive to your needs and time frame to purchase; and,

(d) one who will provide you with the information you need about the property, immediately;

(e) that is able to assist you in viewing immediately – time is absolutely of the essence – and, if you are interested in that property, to advise you on its value/ comps, etc.; and, to prepare your offer immediately.

There is no ‘I’ll think about it’. You won’t be ‘in play’. Your Quantum Realtor will always write the offer with a contingency for home inspection, so you don’t need to hesitate about every ‘condition’ of the property at the onset. And, in most cases, we will not take the escrow deposit until 3 days after the verbal acceptance of your offer by the Seller (lender).

Very important for you to know: Typically the Seller (lender) will not come back and request your highest/best offer. With multiple offers, they simply ‘choose one’. Thus, it is very important to submit, initially, your highest/best offer.

Another reality – no offer is accepted by a Seller without Proof of Funds (bank or other asset statement in the amount to cover your offer price) if paying cash; or, a Pre-Approval Letter if financing. The Pre-Approval Letter has to be from a bank or mortgage broker doing business in FL. It will state the maximum amount you are able to borrow and the type of loan you are getting, i.e., Conventional, FHA, VA, etc.

Seriously, there is no use in physically looking at properties if you are not paper-work prepared because there is no time to obtain the paperwork once you have found a property you want to place an offer on. Please do not be offended when your Quantum Realtor requests this information. It is mandatory. Without one or the other, an offer simply cannot be submitted. If you are not paperwork prepared, then, it is prudent that you wait for your on-site showings until you are. The worse thing in the world, is to find the perfect new home or investment property and lose it because you were looking pre-maturely. If financing and you need a local lender or mortgage broker, your Quantum Realtor will be able to refer one to you.

We make it easy:

Quantum’s Realtors will be happy to set you up on a search that will meet the criteria you are looking for in a home or condo. The initial search will provide ‘all’ available properties; then, daily, you will receive all new properties that come onto the market and/or have status or price changes. So, you can stop your daily combing of websites………. we like to make it easy for you! As soon as you see a property or properties that are of interest to you, and/or that you wish to physically view, simply send back an email requesting information on it – or call. Your search can be changed at any time w/ a quick call or email to your Quantum Realtor – we understand that sometimes buyers change their mind and want to expand or narrow their search criteria. Not a problem for us.

If you are an internet savvy person, (or not), but want a lot of information without a lot of contact, this service is for you. The auto searches are set for 180 days. If you decide you are no longer interested in purchasing property, simply ‘unsubscribe’ at your convenience.

Quantum Realtors were some of the first in the industry to assist internet buyers before most folks were on-line and before most large ‘franchise’ real estate companies even had websites. So we know how to treat you and treat you right.

When working with a Quantum Realtor, you have ‘Buyer’ representation. So, it’s all about what you want, what you need, and providing great service to you.

Short Sales:

A Buyers nightmare. You must have perseverance and patience.

A short sale (funny name for these very ‘long’ sales) … is the definition of a property wherein the owner has stopped making mortgage payments and/or is ‘upside down’ in their property, i.e., they owe more than it is worth.

Every lender handles these sales differently. While the owner will sign your offer, there is no agreed to selling price until the lender approves the sale – and it could be a different price than the asking or the offer price (typically – more, of course). Your Quantum Realtor understands this type of sale and will assist in providing you with as much information as possible at the onset. So, please know that these sales are anything but ‘quick’ closings. But, if you find one of interest to you, a Quantum Realtor provides your best representation.

While there are some excellent buys on short sale properties, you have to really ‘want’ that particular property and have the ability and fortitude to ‘hang in there’. It’s a long road and you are not provided with frequent updates. However, our Quantum Realtors always find out what ‘stage’ of the short sale any particular property is in so we can ascertain potential ‘issues’ up front and the potential ‘wait’ time. It could take on the low side, 4 months, on the high side up to a year.

If you are interested in closing within a ‘reasonable’ (I call it ‘normal’) amount of time (30-40 days), then, you need to be looking at bank owned (REO) properties AND ‘regular’ – non-distressed MLS listings. There are many Sellers who have lots of equity in their property, and, understanding today’s market, have priced their property to the buyer’s advantage.

Last in our ‘reality’ check is the condition of a property. (Not something we have a data entry field for…so we have to take each property of interest to you and ascertain same.)

First, it is important for your Quantum Realtor to know the type of loan (if financing) you are getting because that will directly affect property condition. FHA has to meet certain criteria, VA has to be almost perfect in every way. Cash - the condition is up to you and what you are or are not willing to do to the property. Some buyers will take on ‘anything’, others want only to replace flooring, paint, maybe some yard work (a cosmetic fixer upper). It’s important to be realistic as to what you are capable of doing or what you are willing to have done. Not to mention, the expense over and above the price of your property that you will need to have available.

However, if you are obtaining an FHA loan, they have a 203K program that will allow you to borrow between $5,000 – 32,500 towards repairs and/or replacements. Not rehab. But, for instance you can replace a roof, appliances, a/c system, countertops, cabinets, flooring, windows, bath appliances………and repair just about anything, including paint changes.

It works like this, if you are pre-approved for $150K and the house you are purchasing needs (by your standards) $30K in repairs/ replacements………….. then, your maximum amount you can offer is $130K. The home and the repairs cannot exceed the maximum amount of your pre-approval. An ‘After Repair Value (ARV) appraisal is done for your financing purposes vs. the property as it stands in pre-repair condition. This is because the appraisal cannot exceed the amount you wish to borrow per the lenders guidelines. We can go into more detail if you would like, please email or call us with your questions.

We need a starting point:

Please provide us with your basic criteria: Single Family home or a Condo? Maximum Price? Minimum number of beds/baths? Garage/carport? A specific ‘area’ or cities of interest? And, anything at all that you ‘must’ have, like a water view; on the water; pool; fence; interior features; etc. ? We need to know.

You will receive your searches within 24 hours and can begin looking through properties. As mentioned, please let us know when/if you want more information and/or to physically view………… and at some point, become paperwork prepared in the interim. Note, for a pre-approval letter, the information can be given to your lender or mortgage broker over the phone, the documentation from you only begins once you have an accepted offer on a property.

Quantum Realty Solutions has the expertise to provide you with up-to-date solutions to your real estate needs.

A Quantum Realty Solutions Realtor waits to assist you.

Meanwhile, since you are here on our Quantum Realty Solutions website, we sincerely thank you for ‘shopping’ Quantum Realty Solutions.

Carol Simmons, Broker

Quantum Realty Solutions

csimmons@quantumrealtysolutions.com

Cell: 727/641-6024