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Old 10-08-2011, 10:45 AM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,230 posts, read 4,615,884 times
Reputation: 2798

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Quote:
Originally Posted by rockall View Post
Does the maket value on the trim notice have any bearing on the BPO ? I notice that the market value from the tax dept is usually always lower than the listing price . What do the lenders go by when people are applying for a mortgage ? How do they come up with the appraised value ?

The Just Market Value of each property is determined January 1 of each year. So what you are seeing on the TRIM notices for 2011 property tax purposes was based on an evaluation done as of January 1, 2011.

FL statute 193.011 states that there are 8 factors to be considered by the county property appraisers in obtaining the Just Market Value (JMV) of a property.

Briefly, they are:
1) present cash value of the property, ie the amount a cash buyer would pay, less costs of purchase, in an arms length transaction
2) the highest & best use of the property
3) location of the property
4) quantity or size of the property
5) present replacement value of the property
6) condition of the property
7) income from the property
8) net proceeds from last sale of the property, less usual and reasonable costs of sale

(which means they are using a lower $$ value than the actual sales price)


The Manatee county property appraiser's web site has information regarding how the JMV's are obtained, along with a frequently asked questions section you may find helpful. You can find it at:
http://www.manateepao.com/Forms/HtmlFrame.aspx?mode=Content/General_Information/General_Info.html
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Old 10-12-2011, 09:56 PM
 
780 posts, read 796,435 times
Reputation: 947
We are finding it so confusing. It is difficult to know what to offer on a short sale or foreclosure.

We looked at a short sale today which is listed at $279,000. It has been listed for 6 months and had one price reduction. The listing agent said the bank is wanting $250,000. Why is it listed at $279,000? The house is in a great location and the price is seems average for the location. The house is worth the list price except it backs on to a busy road. Has a lot of traffic noise.

Another house, a foreclosure was listed this week at $199,999. The bank is having the house fixed up, new appliances, new cage screens, paint and general repair. This price seems below the comps without all the repairs. I think they are hoping for a bidding war and wonder if we should bother bidding? Would a bank list a house below comps to draw multiple bids...I assume so, seems to be the case with this house.

We see so much of this going on and don't know how to deal with it. We try to limit our searches to normal sales, but there are so many short sales it makes it hard to find a house in our price range.
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Old 10-13-2011, 09:29 AM
 
Location: Blue Ridge Mntns., NC
10,815 posts, read 15,122,738 times
Reputation: 9647
Quote:
Originally Posted by macyny View Post
We are finding it so confusing. It is difficult to know what to offer on a short sale or foreclosure.

We looked at a short sale today which is listed at $279,000. It has been listed for 6 months and had one price reduction. The listing agent said the bank is wanting $250,000. Why is it listed at $279,000? The house is in a great location and the price is seems average for the location. The house is worth the list price except it backs on to a busy road. Has a lot of traffic noise.

Another house, a foreclosure was listed this week at $199,999. The bank is having the house fixed up, new appliances, new cage screens, paint and general repair. This price seems below the comps without all the repairs. I think they are hoping for a bidding war and wonder if we should bother bidding? Would a bank list a house below comps to draw multiple bids...I assume so, seems to be the case with this house.

We see so much of this going on and don't know how to deal with it. We try to limit our searches to normal sales, but there are so many short sales it makes it hard to find a house in our price range.

Are you buying for investment or personal residence? and what does your buyer's agent say about this if you have a buyer's agent? Secondly, if the house backs up to a busy road and has a lot of traffic noice, it is NOT a great location and price now and in the future is an issue. With so many homes on the market, why choose one with "busy road issues". That doesn't go away, it only can get worse. Stick with : Location, Location, Location !!
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Old 10-13-2011, 10:26 AM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,230 posts, read 4,615,884 times
Reputation: 2798
Great advice from Quilterchick about location and traffic noise from a busy road. The traffic noise definitely has a negative impact on the property for most buyers and therefore the list price should reflect that.

As to your other question regarding banks fixing up homes and expecting a bidding war .... yes, that does happen. The listing agents will typically state in the private remarks to the agents that they expect a multiple offer situation.

There are some things to keep in mind in writing offers on REO (bank owned) properties:

Keeping in mind the point about REO properties being listed below market to get multiple offers, you should make your offer based upon the market value of the home, not the list price. Your agent should be able to provide you with the last 3 months of comparable sales to help you determine your offer price.

Banks prefer offers with the least contingencies.

You should be pre-approved (not pre-qualified) if getting a mortgage or have proof of funds if paying cash.

Banks prefer quick closing dates, especially if you're paying cash.

Banks will be selling the property "as is." That does not eliminate your right to have inspections.


Some REO properties (especially Fannie Mae or Freddie Mac) are offered for a set time period to offers only from buyers who will owner occupy the home as a primary residence. This is often referred to as a "first look period." During that time period, the bank will not look at offers from investors or 2nd home buyers.

If the bank selects your offer, your agent will be notified and the bank will generate their special addendums for you to accept and sign. You may not change or counteroffer any of the terms on the special addendums - the terms are take it or leave it. It is to your benefit to have a real estate attorney of your choice, one that is familiar with REOs, review the terms of the bank addendums with you so that you clearly understand the terms the bank is adding to the contract.

The special bank addendums for the most part are a complete re-write of the initial offer and often change:
Dates for closing, mortgage contingencies and/or inspection periods.
Financial provisions.
Modify the seller warranties and limit the seller’s liability.
Define what closing costs the bank will and will not pay.
Impose monetary penalties for buyer’s failure to close by contract date.
Add disclaimers for mold, condition or other environmental issues.

Some banks include in their special addendums terms that make the buyer responsible for paying a per diem (per day) fee if the transaction fails to close on the specified day, no matter who is responsible for the delay.
For the reasons given above, it’s important that you carefully review all paperwork and disclosures regarding your offer on an REO property.

Once you have a fully executed contract, you should pay strict attention to deadlines for contingencies within the contract. This includes any home, roof, pest, mold or other inspections you wish to have completed on the property. Should the inspections uncover repair or condition issues that you find unacceptable under the terms of the contract, you must give written notice to the seller within the guidelines, along with a signed cancellation & release form.

It is also important to have your own legal representation review all title work, review all closing documentation and follow up after closing to make sure you receive your title insurance policy and recorded deed -- especially if your contract allowed the seller to select the closing agent.

Learning the ins and outs of buying foreclosure properties before you write an offer will help you stay clear of the many pitfalls and help guide you towards a successful purchase.
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Old 10-13-2011, 11:13 AM
 
780 posts, read 796,435 times
Reputation: 947
Wow, thanks for such great information. This makes me nervous. We are cash buyers but don't have any connections here in Sarasota. I suppose our agent can recommend a lawyer and inspectors, etc. We haven't discussed that yet. We have been looking at houses everyday for over a month and haven't found anything. Its so discouraging and all the houses are blended into each other. I can't remember one from another!

The foreclosure house, I mentioned - our Realtor sent us the tax map and comps and the house appears priced below comps. I can't find information about flood insurance. The tax map shows it - 'outside X.??' It is very close to a man-made lake, very close, that concerns us. The water is about 5ft to the pool cage. The house looks very good for the price but I think its artificially priced to draw bidders. It has virtually no land. The houses are a few feet between, which we are not thrilled about.

It is in the Emerald Green/Park? subdivision (don't remember the name).

We are searching for property in the Siesta vicinity as our daughter lives on Siesta. We are looking in a 5-8 mile radius from Siesta.

The reason I mentioned the house on the busy road was because it was priced fairly low for the area (Country Place). We love that area but can't afford the houses there. This house had everything we wanted, in our price range, but the road noise was worrisome.

Shopping for a home comes down to what you can compromise on. I know location is key but a good price is very tempting. I suppose no matter how bad a house is, if the price is low enough it becomes a 'good deal!'

Thanks again,
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Old 10-13-2011, 11:43 AM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,230 posts, read 4,615,884 times
Reputation: 2798
If you're looking in Country Place, I am assuming the road noise is coming from Beneva Rd. Beneva is one of the major north - south routes and has heavy traffic most of the day.

Emerald Gardens is a nice subdivision, although the east end does pick up noise from I75 when the winds are blowing from that direction.

If a flood zone states "x" it is outside the 500 year flood plain. Here's a link to the FEMA map that explains the various flood zones:
FEMA Map Service Center - FEMA Flood Zone Designations

However, if you are buying near a lake, pond or creek and not in a stated flood zone, you can still purchase flood insurance at a minimal annual cost as an extra precaution and for peace of mind.
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Old 10-13-2011, 01:14 PM
 
841 posts, read 1,395,015 times
Reputation: 489
Foreclosure rate jumps 27 percent in Sarasota, Manatee and Charlotte counties | HeraldTribune.com
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Old 10-13-2011, 03:29 PM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,230 posts, read 4,615,884 times
Reputation: 2798
A couple of things stand out in the article.

One, the increase in foreclosures is most pronounced in Manatee county, not Sarasota, who's filings were basically unchanged.

Two, buyers should not expect a large increase in the number of bank owned homes coming on the market as banks will be controlling their inventory that comes on the market so as not to erode prices further. That's something they should have done years ago.


Not mentioned in that article is the fact that inventory dropped last month to a 10 year low in Sarasota of 4408 residential properties. If you realize that the inventory high peaked in 2007 at 17,102 properties, that's quite a difference. This lack of inventory is especially noticable in homes and condos priced under $200,000 where we are down to a 4.7 month supply of inventory (6 months is considered equilibrium between buyers & sellers).

For properties priced between $200,000 and $350,000, most price ranges are also indicating that we have returned to either a "normal" market or a "seller's" market based on the inventory of available listings and absorption rates. Lakewood Ranch is experiencing a drop in active listings for sale, down almost 34% from a year ago. Siesta Key's also experiencing a significant drop in inventory. However, Longboat Key still sits at about a 12 month supply of available properties, so it is still a buyer's market at the higher end of the price ranges.
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Old 10-13-2011, 03:39 PM
 
188 posts, read 442,636 times
Reputation: 92
Many people had predicted more foreclosures entering the market in November months ago! Guess they were accurate.

Also, isn't the recent dip in inventory also related to the fact that a lot of foreclosures were being held up and now they are starting to come through?
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Old 10-14-2011, 10:22 AM
 
Location: Sarasota/ Bradenton - University Pkwy area
3,230 posts, read 4,615,884 times
Reputation: 2798
You can blame the majority of the increase in filings in our area on Bank of America. GMAC has also stepped up it's Lis Pendens filings (notice of intent to foreclose).

Bank of America filed over 100 Lis Pendens in our area in September alone. However, don't expect those homes to show up on the market in the next few months. The average length of time to complete a foreclosure in FL is 676 days, or almost 2 years. Some members of the FL legislature have been talking of introducing a bill next session to change FL law so that foreclosures do not have to go through the court system. Even if that legislation passes, it would be next summer before any changes could be implemented and would not impact these most recent filings by BofA.

Instead, expect to see more short sale offerings as Bank of America has initiated a pilot short sale program in FL that they call "Test-and-Learn." BofA is offering selected homeowners cash incentives of $5000 to $20,000 to cooperate in doing a short sale & it's successful close. The program started 9/26/11 and runs thru 11/30/11 with closings to take place before 8/31/2012.
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