What is a Short Sale?

     The terms “Short Sale” and “Foreclosure” get thrown around a lot in today’s real estate market. While these two could both potentially mean a great deal for a prospective buyer, they are very different from each other and if you still aren’t sure about how they work, this article is for you!

     A short sale is a type of property sale where the owners are upside down on their loan, meaning they owe more than what their property is worth and they are selling for less than what they paid for the property. This process can get tricky for both the buyer and the seller. The seller has to get approved for the short sale from their mortgagor (the bank or entity- sometimes more than one- who owns the loan), this most often means they have to prove some type of financial hardship which has rendered them unable to keep up with their mortgage payments. For the buyer, it can get complicated because even if the seller accepts the contract offer price, the sale can’t commence until the mortgagor(s) approves of the contract terms & value. This approval process can take up to 60 days or more, which is almost double the time for a “standard” sale and purchase.

     A foreclosure is the process of taking possession of a mortgaged property as a result of the mortgagor's failure to keep up mortgage payments. This is usually what most homeowners are trying to avoid by going through with a Short Sale. Once a bank takes possession of the property, it may or may not make repairs before listing it with an agent to be active on the market. The buying process is not as long as a short sale but can still take longer than a traditional sale due to lender hours of operations and underwriting processes. This can still be a great deal for homebuyers looking to purchase property for less than fair market price.

     
     Something to remember with either situation is for buyers to take control of the factors that they have the ability to. Banks favor buyers who have their financing in order and are able to be flexible. Another factor to consider is if a property in need of repairs may not qualify for certain types of financing or may be difficult to obtain insurance. If a buyer is not paying cash, it is important to have all financing and pre-qualifications in order. It is also important to work with an experienced agent. An agent who has not handled a short sale may hurt a buyer’s chances of a successful closing. Look around for a seasoned agent, ask them questions like how many buyers they’ve represented in a short sale and, of those, how many have successfully closed. The right agent will be able help negotiate the purchase and maintain smooth communications with the lender. 

Safety First

​In light of the recent tragedy of the kidnapping and murder of real estate agent Beverly Carter in Arkansas and the spike in interest in personal protection among the real estate community, we want to emphasize the importance of being safe in all situations. We must constantly be on guard not only in the world of real estate but in virtually every daily activity and situation.

​Specifically for Real Estate Agents here are some safety tips provided by the National Association of Realtors for hosting Open Houses; some of the suggestions are good practice for day to day showings:

          If you are holding an Open House:

• Call police and arrange for a squad car to drive by during the hours of your open house

• Check your cell phone strength and signal prior to open house

• Have phone charger or extra phone battery so your phone can remain fully charged

• Have emergency numbers on speed dial

• Have escape routes planned and make sure the dead bolts are unlocked for a quick escape if needed

• Turn on all lights and open all curtains

• When buyers come by write down descriptions, have them sign in and if possible get license plate       numbers

• Always walk behind the prospect when showing & direct them, don’t lead them

• Notify a friend or relative that you will call at a certain time and if you don’t the they are to notify the police immediately

• Inform a neighbor that you will be showing the house and ask them to keep an eye or ear out for anything out of the ordinary

• For more tips, reference the National Association of Realtors website 

Below are more important safety precautions that every person should know and practice no matter what:

• Awareness: be aware of surroundings. Studies argue that criminals are more likely to choose targets who appear to be unaware of what is going on around them.

• Use your sixth sense: Intuition can be powerful subconscious insight to help avoid a person or a situation that does not “feel” safe.

• Self-defense training: Choose a program that includes simulated assaults with a fully padded instructor in realistic scenarios.

• Escape: the best option is to run away, yell for help, throw a rock through a store or car window–attract attention and if the criminal is after your material items then give them up.

• Respond: You have the moral and legal right to do so even if the attacker is only threatening and hasn’t struck first. Statistics show that odds of survival are greater if you fight back. Remember to respond quickly because you may only get one chance.

• Pepper spray: Pepper spray and self-defense aids can be useful tools. But never depend on abself-defense tool or weapon to stop an attacker. 

• Home invasions: Prevent this by never opening the door unless you know who’s on the other side. Also, have a safe room in your house equipped with a strong door, deadbolt lock, cell phone and a can of pepper spray or fire extinguisher.

• Car jacking; Lock all doors when driving. Many crimes take place when vehicles are stopped at intersections. The criminals either pull you out of the driver’s seat or jump in the passenger’s seat.

• Safety in cyberspace: When communicating on-line, keep personal information confidential. Keep current on security issues, frauds and viruses by periodically checking “The Police Notebook” Internet Safety Page.

Below are other references for furthering your safety knowledge.

http://kidshealth.org/teen/safety/safebasics/self_defense.html

http://www.safety.com/womens/selfdefense/articles.html

http://www.samharris.org/blog/item/the-truth-about-violence

Hello Tallahassee!

​       For a humble town with southern charm, Tallahassee is gaining more and more exposure in the public eye; from the booming construction plans in College Town, the newly built Cascades Park to the luxurious Plaza Tower in downtown Tallahassee that is getting the second look she deserves.  Million Air magazine recently gave Tallahassee a shoutout as one of the “Top Worldwide Real Estate Developments."  The article refers to Tallahassee as “A True Southern Gem” and mentions several popular sites such as the Diamond Suite at Hotel Duval, Cypress Restaurant, the History Museum, Maclay Gardens State Park, the Knott House and Mission San Luis among many other highlights.  Million Air magazine serves one million clients with an average net worth for each client of $41 million; the Million Air brand is synonymous with first-class and if they think Tallahassee is deserving of one of their elite 27 terminals then they must be right! 

            Tallahassee is currently boasting in one of the highest growth rates out of any metropolitan area the state.  According to the Tallahassee Downtown Improvement Authority “Tallahassee must increase the quantity and diversity of downtown housing options, leveraging opportunities for developing new typologies of mixed, workforce, young professional and multi-generational housing throughout Downtown, appropriately located, most prominently but not exclusively, in the Cascades Park and All Saints districts, as well as College Park and Capitol Hill”.

            The Community Redevelopment Agency is a leading global consulting firm that offers economic, financial, and strategy expertise to major law firms, corporations, accounting firms, and governments around the world. Since 2007, the CRA has given nearly $16 million in funding and funding commitments for large-scale redevelopment projects Downtown including Cascades Park, the Alliance Center, College Town and the Block and the Deck. Over the last 10 years total public investment and outside assistance with these growing areas has amounted to almost $92 million dollars. Looking back from 2009, the amount of public and private development facilitated by the City and County has skyrocketed and is evidenced primarily in areas such as Gaines Street, Cascades Park and the planned extension of FAMU Way.

            So what does this mean for Real Estate you say? Well, with all this expansion, Tallahassee has no choice but to increase the quantity and diversity of Downtown housing options. This means there is a great opportunity for new markets of housing. The area calls new typologies of mixed, workforce, young professional, and multi- generational housing in appropriate districts. Keep your eyes open because the Regal Homes Team has a hunch that this humble town with southern charm will begin to get a taste of big city ideas and transformation. But don’t fret, Tallahassee has always been able to maintain her class and a little growth never hurt anyone!