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SB

Beach Crab
Jan 15, 2009
3
0
I noticed a short sale in Phase II of WaterColor for $599,000. It seems like a very good deal. Is there something missing (other than the risk that prices may continue to go down)?
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
One missing piece is that any contract, on that property, at that price would still need to be approved by the lender. ie- $599K may not really mean $599K, though it could. In most cases, the lender will not inform the listing agent of an acceptable price, when determining the list price. Fannie Mae is about to change that in two test markets, one in Orlando, to see if they can get more sales sooner, by informing the listing agent of their acceptable price, at the time of the listing. If it works well in those test markets, they will expand, and other lenders may follow suit.
 

Bobby J

Beach Fanatic
Apr 18, 2005
4,043
600
Blue Mountain beach
www.lifeonshore.com
One missing piece is that any contract, on that property, at that price would still need to be approved by the lender. ie- $599K may not really mean $599K, though it could. In most cases, the lender will not inform the listing agent of an acceptable price, when determining the list price. Fannie Mae is about to change that in two test markets, one in Orlando, to see if they can get more sales sooner, by informing the listing agent of their acceptable price, at the time of the listing. If it works well in those test markets, they will expand, and other lenders may follow suit.

I pray for the banks to get on board and help out! This short sale stuff is a nightmare!:bang:
 

traderx

Beach Fanatic
Mar 25, 2008
2,133
467
If a bank will not inform agent of an acceptable price, how does an agent determine price?
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
The agent makes an educated guess based on other sales, or lack of sales, as to which price is low enough to generate interest from buyers. Some people think that the acceptable price is solely dependent upon the amount owed, but think about it for a minute. A buyer who is going to have financing, isn't going to be able to purchase for an amount greater than the appraised value, so the acceptable selling price has to be based on the appraised value, not the amount owed on the note.
 

SB

Beach Crab
Jan 15, 2009
3
0
Assuming the the bank is willing to take the $599,000; this seems like a good price. I would have to think that a comparable lot would sale somewhere around $180,000-195,000, and a comparable house would sale for about $185 sq/ft or $410,000 – although this is a BIG guess on my part. That puts it right at the listed price without having to carry the cost during the building process.
 
Assuming the the bank is willing to take the $599,000; this seems like a good price. I would have to think that a comparable lot would sale somewhere around $180,000-195,000, and a comparable house would sale for about $185 sq/ft or $410,000 ? although this is a BIG guess on my part. That puts it right at the listed price without having to carry the cost during the building process.

Where have I heard this price point before for that phase of Watercolor?
 

awig

Beach Comber
May 18, 2008
6
1
This situation is a perfect example of our market. The seller of this house is making a late attempt to avoid a foreclosure that is very close to being reality. If you are selling real estate in this market, this is the competition. Selling in the current enviroment unless you are in a must sell situation is simply crazy in my opinion. I think people that are selling today are making the same mistake those made in purchasing real estate in 05" or even 04'. There is more demand for WaterColor than most people realize, quite a few buyers on the edge of the fence...this is not going down forever...the opportunities to purchase real estate on 30-A at these prices will not last.
 

chanster

Banned
Dec 7, 2008
187
14
just as we were told bac was a steal at $25 or wachovia was a can't miss at $20. prices are simply supply and demand. nothing more nothing less. the nation is in turmoil and unfortunately 2nd homes are the first thing to go. and 30-a was a massive bubble no different than vegas or california. there's a personal attachment for many on here with 30a just as people were attached to wachovia or bank of america. but no matter what anyone says there's a breaking pt were the lose is too great and you dump it. lets use the watercolor example. obviously price per square foot prices are crashing all over 30-a. already we've seen sub $300 in watercolor and before this is over we could see a lot of $300 per square foot on the upper end homes in there that are still trying to get $500 and above.my pt is there's 100's of homes in watercolor that were bought for $500-$1000 per square foot. what happens to the fat cat that bought his watercolor 4k square home for $3.4 mil in 2005 and its worth $1.8 mil now? his business at home has collapsed and his cost per month to pay for and maintain his watercolor home is $10k per month. he's down $1.6 mil so the answer is obvious. It's gone. thats what makes this collapse so hard to end. there's literally 1000's of people on 30-a in that same situation so when those homes are dumped and sold in foreclosure they are the new per square foot price to measure new sales against.ITS A VICIOUS CIRCLE OF DECLINES ON TOP OF DECLINES JUST AS THE UPSIDE WAS VICIOUS ON GAINS ON TOP OF GAINS. its painful and could last many more years. i think by the end of 2009 there will be tons of homes and condo's in the $250 range per square ft.
 
This situation is a perfect example of our market. The seller of this house is making a late attempt to avoid a foreclosure that is very close to being reality. If you are selling real estate in this market, this is the competition. Selling in the current enviroment unless you are in a must sell situation is simply crazy in my opinion. I think people that are selling today are making the same mistake those made in purchasing real estate in 05" or even 04'. There is more demand for WaterColor than most people realize, quite a few buyers on the edge of the fence...this is not going down forever...the opportunities to purchase real estate on 30-A at these prices will not last.

Do you think that sale prices will drop below a point where a mortgage payment can be paid by the value of the rental income?
 
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