Ron "The Bear" Barakett

How to Negotiate Closing Costs on Bundled Golf Naples FL Real Estate

Let’s face it, we all shop for the best deals we can get for our money.  Why should our closing costs be any different? Here are a few tips on how to negotiate good terms for the closing costs on your Bundled Golf Naples FL real estate.

TIP #1:  Shop lenders to get a lower interest rate on the mortgage for your Bundled Golf Naples FL real estate.
It is not unheard of to approach your lender and simply ask for a better rate.  The worst that can happen is to be told no.  The best rates go to those with the best credit scores.  If your credit score is not at its best, improve your credit score so you can qualify for a better interest rate.

TIP #2:  Negotiate lending fees.
All lenders charge fees for things like loan origination and filling out paperwork.  Although the lending fees are negotiable, most buyers don’t know it.

Ask for justification for each lender fee.  If a lender fee cannot be waived or reduced, ask if it can be credited toward closing costs.

Realize there are some fees that are not negotiable, such as taxes, recording fees and prorated interest.

TIP #3:  Pick your own title company.
Most buyers don’t realize they have a choice when purchasing title insurance.  Although the policies are pretty standard, the cost can vary.

For more ideas on how you can reduce closing costs on Bundled Golf Naples FL real estate, feel free to call me at 239/850-1366 or email me at Ron@AskTheBear.com.

Ron@AskTheBear.com

Stumbling Blocks to Selling Your Naples FL Real Estate as a Short Sale

You want to avoid a foreclosure on your Naples FL real estate so you’re decided to try to sell it as a short sale.  Unfortunately, there are several stumbling blocks that can keep you from successfully selling your home as a short sale.

Here are four short sale killers you should be aware of before deciding to sell your Naples FL real estate as a short sale:

1.      You have not defaulted on your mortgage. Lenders will almost never accept requests for short sales until you are significantly behind in payments and have received a notice of default.

2.      You filed for bankruptcy. If you’ve filed for bankruptcy, a short sale will most likely not happen. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy.  This is because collection activities are not allowed in bankruptcies and a short sale is considered a collection action.

3. More than one lender is involved. If you have a second or third mortgage (or home equity loan or line of credit), all the lenders must agree to the terms of the short sale. Unfortunately, this is often difficult because the second or third lenders are the ones who absorb most of the loss.  If you have more than one lender, and you want to try for a short sale, do a title search to verify the first and primary lender.  Making a deal with the second or third lender is a waste of time because you’ll still owe the first lender.

4.      The lender drags his feet. Many short sales fail because the lender fails to complete the deal before the property goes to auction.  Get the lender to move faster by making sure he has everything he needs in one concise package.  If the lender doesn’t get everything at one time, he tends to set the file aside and forget about it.  You can also speed up the process by working with a real estate agent who is experienced with and knowledgeable about short sales.

If you have additional questions on short sales, foreclosures or any other Naples FL real estate related topics, please give me a call at 239/850-1366 or email me at Ron@AskTheBear.com.  I’m happy to help.

Ron@AskTheBear.com

Naples FL Real Estate Investing: Buying a Short Sale Steps 6 through 10

If you haven’t read “Naples FL Real Estate Investing:  Buying a Short Sale Steps 1 through 5,” start there.  This blog post provides steps 5 through 9 of the short sale process.

6. Visit the Naples FL real estate on your short list.  You’ve already searched for short sales, researched them and narrowed your list to a few short sales that meet your criteria and have the best chance of making it to closing.  Now it’s time to personally visit the few on your short list.  Your primary purpose in visiting the property is to get an estimate as to how much it’s going to cost you to repair the home.  As a real estate investor, you want a property that needs some work so that the average home buyer won’t want it, and you can get it at a lower-than-average price.   But, you also want a property that is in good enough condition that the cost of the property plus repairs still gives you a good return on your investment.

7. Get a home inspection. Since short sales are typically sold “as is,” it’s crucial that you have a licensed home inspector evaluate the condition of the short sale that you’ve decided is the one you want to buy.  An inspection will find problems you might not have been able to see in your initial visit to the home.  It will also give you a more precise idea of how much it’s going to cost you to repair and renovate the property.

8. Make an offer. Now that you’ve found the short sale you want to buy, you’re ready to prepare an offer.  Have your Naples FL real estate agent prepare all the documentation and submit the offer to the seller’s agent.  The seller’s agent will submit the documentation to the lender.  Hopefully, you’ve chosen a short sale with only one lender, but if there is more than one lender, remember that all lenders have to agree on the terms of the sale.

9. Make a counter offer or walk away.  After getting your offer, the lender has his real estate agent evaluate the offer.  More than likely the lender will make a counteroffer.  That’s the time for you to do a final evaluation.  Double check your numbers using the higher purchase price and ask yourself, “Is this property really going to give me the profit I want?”  If the answer to this question is no, or if you’ve already reached the maximum you’re willing to pay for the property, it’s time to walk away.

10. Finalize the deal.  After you, the seller and the lender have all reached an agreement, get everything in writing and officially record it.  Go to closing, and the property is now yours.  Congratulations!

If you’re a Naples FL real estate investor looking for a well-priced property to invest in, I can help.  Give me a call today at 239/850-1366 or email me at Ron@AskTheBear.com for more information.

Ron@AskTheBear.com

Naples FL Real Estate Investing: How to Buy Short Sales Steps 1 through 5

Are you a Naples FL real estate investor or home buyer who wants to buy a short sale in order to get a great deal?  Unless you’re a seasoned short sale buyer, it’s not as easy as you may have been told.  In fact, there are so many steps to the process, this blog post only covers the first five.

1. Hire an experienced Naples FL real estate agent. The first thing you want to do is find a real estate agent who is knowledgeable about buying short sales in your local market.  Unless you’re already a short sales expert, you need an experienced agent to guide you through the process because most homes that are listed as short sales never even make it to closing due to problems encountered along the way.  In fact, some stats show that as few as 1 in 10 short sales make it all the way to closing.
2. Get your financing in order. How are you going to pay for the property?  Before you do anything else, have your financing in order.  In a short sale, the lender often moves at a snail’s pace, but you have to be able to move quickly.  Once an agreement is worked out, the lender may require that you close in as few as 20 days.  That’s not enough time to shop for a mortgage.
3. Search for short sales. Your agent will have access to all the homes up for sale as short sales.  Let him or her help you sort through the homes to identify those that fit your needs and are most likely to make it to closing.
4. Research the short list of short sales. Have your real estate agent (see how much work this agent is doing for you?) research the short list of short sales you’re interested in to find out how many mortgages each of them have and how much money is owed.  If you find that there are a lot of loans against a property, your best bet is to move on and find a short sale with only one loan.  Additionally, your experienced agent can steer you away from homes with lenders who are difficult to work with on short sales.
5. Be prepared to pay close to market value. This may sound ridiculous to you because you’ve heard that short sales are an amazing bargain.  Yes, some short sales are priced very low, however, that does not mean the lender will accept that super-low price.  Typically, the short sales that actually make it to closing are going to be priced close to current market value.  Have your real estate agent research pending sale comparables to determine what the current market value is for the short sale you’re thinking of buying.

If you’re interested in investing in Naples FL real estate, I can help you find the true bargains, whether they’re short sales, foreclosures or just well-priced real estate.   Give me a call today at 239/850-1366 or email me at Ron@AskTheBear.com.

Ron@AskTheBear.com

Selling Bundled Golf Naples FL Real Estate: 5 Tips to Pick a Powerful Listing Agent

Here are five tips to help you identify the best Bundled Golf Naples FL real estate agent to get your home sold as fast as possible and for the most money.

1. Hire a full-time Bundled Golf Naples FL real estate agent.  Part-time agents typically have less experience and fewer sold properties under their belts than full-time agents.  Because part-time agents usually have another job, they don’t have as much time to take care of your needs and market and show your home to potential buyers.  Full-time agents have bigger networks they can enlist to help find a buyer for your home.
2. Find a skilled negotiator. A seasoned Bundled Golf Naples FL real estate agent understands the psychological nature of selling a home.  They advise you during the contract negotiations to ensure you get the best deal while alleviating your stress.
3. Pick an aggressive marketer.  Without a well-implemented, far-reaching marketing program, your house will sit on the market these days.  You want an agent who promotes your home both online and offline, in order to reach the greatest number of potential buyers.  Simply having your home listed on Realtor.com is no longer enough of an online presence.  You want your home showcased on multiple websites with a lot of professional photos and, ideally, a video tour.
4. Choose an agent who knows your neighborhood.  Each neighborhood has different pros and cons which must be promoted or overcome by the agent.  An effective agent knows how to price your property because they know the local competition, which homes that have closed recently are similar to yours and how much they’ve sold for.
5. Ask for home staging services.  Home staging is no longer a “nice to have;” it’s now a “must have,” if you want to sell your home for the most money in the least amount of time.  Many agents are now professional stagers or have a home stager on their teams.

Choosing a powerful listing agent is your first step toward a successful home sale.

If you’d like to work with an agent who is a skilled negotiator, an aggressive marketer, provides home staging services and works full time, give me a call today at 239/850-1366 or email me at Ron@AskTheBear.com.

Ron@AskTheBear.com

Prepare Paperwork for Your Naples FL Real Estate Purchase

The process of buying a new home is daunting enough without having to track down all the various paperwork necessary at the last minute. Don’t endure extra stress! Get your paperwork together early, so that you can feel piece of mind when purchasing Naples FL real estate.

You should have the list of documents below in hand before you make an offer on a home. This will ensure the purchase process is as quick as possible. Every mortgage lender’s requirements can be different, so double-check with yours for a comprehensive list.

•        ID – This might seem like a no-brainer to most people, but just make sure you have official identification.

•        Pay stubs – Your lender will want proof that you’re still earning an income, so inquire about how many months worth they’ll want you to provide.

•        Gift letter – If someone else is helping you with your down payment, the mortgage lender will want to know if you’re receiving a gift or a loan. If someone else is loaning you money, your lender will want to take that debt into account before approving your mortgage.

•        Tax returns – Your lender is going to want almost any financial document you can think of. Bring at least the last two years of tax records to be on the safe side.

•        Bank account statements – Bring at least the statements from the most recent two months, especially if the bank where your accounts are is not your mortgage provider. Also bring any other financially-related paperwork — that includes proof of child-support or alimony payments.

•        Divorce decree – Especially if it’s recent, you’ll want to be able to prove that you’re no longer responsible for your ex’s debts.

In short, if you receive anything at all in the mail regarding your personal finances, make copies and bring them with you when you’re seeking mortgage approval. You never know what the bank will ask for, so try to have everything.

If you want to learn more about preparing Naples FL real estate purchasing paperwork, I can help.   Call me today at 239/850-1366 or email me at Ron@AskTheBear.com.

Ron@AskTheBear.com

Naples FL Real Estate: Answers to Your Short Sale Questions

There’s a lot of confusion surrounding short sales, so I thought I’d answer some of the questions I’ve received from clients, owners of Naples FL real estate and blog readers.

Q:  What is a short sale?

A:  A short sale is when a lender agrees to accept less than what is owed on a home.  For example, you owe $300,000 on your home loan, but your lender will allow you to sell your home for $250,000.

Q:  Who makes up the difference between the short sale price and the amount owed?

A:  In the past, the owner of the Naples FL real estate would receive a 1099 income statement at tax time.  The “forgiven amount” would then be counted as income subject to income tax.  This left homeowners in debt to the federal government for the tax owed on that amount.  Now, with the passing of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation, the short fall on a primary residence is not counted as income.  This eases the financial hardship of those who are already struggling.

Q:  Does a short sale impact your credit the same way as a foreclosure?

A:  No, the impact of a short sale is milder on your credit than a foreclosure.  Short Sales usually reduce your score by about 80 to 250 points and only stay on your record for around 5 years.  Compare that to foreclosures which reduce your score approximately 250 to 400 points and remains on your record for 10 years.

Q: How do I qualify for a short sale on my Naples FL real estate?

A:  Contact your lender as soon as you know you are in financial trouble.  Government programs, particularly the Home Affordable Foreclosure Alternatives (HAFA), are designed to make short sales more attractive to lenders by giving them incentives for allowing a short sale over a foreclosure.  However, if you allow your loan to become delinquent (more than 60 days), lenders are less likely to grant a short sale.

Q:  Can I sell my home as a FSBO and still qualify for a short sale?

A:  No.  Lenders rely on “broker opinion” as to what the home is worth at this time.  You need to hire a real estate professional that has experience with short sales.  Short sales take longer to close and properly handling the sale can make a difference in getting an offer accepted by your lender.

If you are facing the possibility of foreclosure, let me help you discover the options that are available to you. You can reach me at 239/850-1366 or by email.

Ron@AskTheBear.com

Naples FL Real Estate Lingo 101

Do you know how closing costs actually work? Or, how you’d use CMAs (comparative market analysis) to evaluate Naples FL real estate? And, can you decipher all of the abbreviations and acronyms, such as FDR, lo dues and MLS.

Purchasing a home is frustrating enough without having to go through the frustration of decoding all the complicated speak and legalese. If you brush up with a real estate dictionary before your home-buying search, you’ll gain valuable knowledge and save yourself a lot of time and headaches in the long run.

Basic lingo every Naples FL real estate buyer or seller should know…

• ARM – This stands for Adjustable-Rate Mortgage, which is a type of mortgage where the interest rate periodically adjusts.
• Closing costs – These are miscellaneous expenses buyers and sellers pay upon closing; they usually include brokerage commission, escrow taxes, recording fees, etc.
• CMA – This stands for Comparable Market Analysis, which is a report of recently sold, comparable homes in the same market as the home you’re selling.
• ERV – Estimated Rental Value
• FDR – Formal Dining Room
• Fixture – Anything that is permanently attached to the home, such as door knobs, carpeting, light fixtures and landscaping
• FP – Fireplace
• HDW – Hard Wood Floors
• Lo dues – Dues paid to the homeowners association
• MLS – Multiple Listing Service, which is an organization that compiles multiple listings into one report and distributes it to all of their realty members.
• PSF – Per Square Foot
• Sale price – The actual price at which the property sells.

Don’t let the hectic housing market overwhelm you.  If you understand Naples FL real estate lingo, you’ll be more knowledgeable and able to easily achieve your real estate goals.

If you have questions about any of these terms or want help achieving your real estate goals, call me at 239/850-1366 or email me at Ron@AskTheBear.com for more information.

Ron@AskTheBear.com

Naples FL Real Estate: 5 Pricing Myths Debunked

There are a few misconceptions about how to set the sales price for your Naples FL real estate.  Here are five common pricing myths and the reality behind them.

Myth #1:  It’s OK to test a high price on your Naples real estate just to see if anyone will buy it at that price.

If you’re serious about selling your home, don’t play games.  In this buyer’s market you have a very small window of opportunity to pull in serious buyers when your home first enters the market.  If you play games, like over pricing your home just to test the market, buyers will stay away in droves.

Myth #2:  You should price your Naples FL real estate higher than the market value to allow for room to negotiate.

Truth:  No matter what your reasoning or rationale, overpricing your home is never a good idea.  When your home is overpriced, very few potential buyers inquire about it or visit it.  If no one wants to buy your home, you won’t have anyone to negotiate with.

Myth #3:  The appraisal value of your home has no impact on the sales price of your home.

Truth:  Lenders consider the value of your home to be the price for which the home is appraised.  For example, if you and your buyer have agreed on a sales price of $300,000, but the appraisal comes in at $280,000, the lender considers the value of the home to be $280,000, not $300,000.   When this occurs, buyers will want to renegotiate the sales price of the home to match the appraisal price.

Myth #4:  Real estate agents want to price homes high because they’ll make a higher commission.

Truth:  If you’ve done the work needed to find a great real estate agent, you should trust him or her to price your home correctly.  Because of their experience, real estate agents understand more than anyone else the importance of properly pricing your home.  If they’ve incorrectly priced your home, it won’t sell, and the agents earn nothing.

Myth #5:  Real estate agents want to price homes low because they’ll sell faster and easier without the agents having to do any work.

Truth:  Professional real estate agents know that setting the price too low can be almost as harmful as setting the price too high. Buyers who are looking in a specific price range may not consider your home because of the low price tag.  They assume it will not fulfill their needs or worry that there’s something wrong with it.

If you’re ready to sell your home, I can help you price it right.  Give me a call today at (239) 850-1366 or email me at Ron@AskTheBear.com for more information.

Ron@AskTheBear.com

Bundled Golf in Naples Florida

Cedar Hammock, Forest Glen, Glen Eagle, Heritage Bay, Naples Heritage, Naples lakes, Vanderbilt Country Club
All of these communities are fiscally sound and have good reserves in the Bank. There 51 M.L.S. reported closings in the last Quarter ending January 31, 2011. The average price per square foot was $124.08/s.f., going from a low of $100.70 to a high of $140.42.

The trivia question of the week was WHICH OF THESE REPORTED THE HIGHEST PER SQUARE FOOT PRICE? The answer is/will be posted on the blog Thursday at 12 Noon DST. Prize is $50.00 gift certificate to Fleming’s Steak House.

Bundled Equity Quarterly Golf Report

“This information while deemed accurate is data derived from M.L.S. of Naples and the participating member Brokers and their property listings.”

Please feel free to search available listings in the Naples FL area.

Questions????...just Ask The Bear!

Ron@AskTheBear.com