Palm Beach Real Estate and Loans

This Sunday (5/4/08) from 2 - 4 PM I will be hosting an Open House at 205 Coconut Key in BallenIsles - one of the most sought-after areas in Palm Beach Gardens real estate.

'Home shows like a model - tile and hardwood throughout, granite countertops, desiginer ceiling fans, the built in family room wall unit can accomodate a large screen TV and has built-in surround sound for exceptional entertainment quality.The southern-exposed pool and custom wall mirrors keep the home light and airy.  The courtyard landscaping adds to the homes privacy.  Hurricane glass and storm shutters.  At night the the ground lighting gives the home a 'regal feel.  The recent Platinum Club survey ranked BallenIsles as one of the top residential club communities in the country. 

This property is listed for $1,299,500 and a full Golf Membership is available.

For additional information call me at 561-282-7406.

I don't know where it came from.......

But it seems like quite a few people have gotten the idea that the words "short sale" are the same as "bargain" when it comes to Palm Beach Gardens real estate.

NOPE.

Here is a short sale situation:

• the property owner gets behind on the mortgage payments
• the owner can not just sell the property and pay off the home loan because (for whatever reason) the balance due on the mortgage is higher then what the home could sell for. 
• so, the property is listed as a short sale
• all offers go to the bank that holds the mortgage
• when - and if - the bank gets an offer that they find acceptable, they will sell the home to that particular buyer
• at that point, the seller is off the hook with the bank - a much better result than foreclosure.

(Read this article for a more detailed explanation of the process--->>)

Here is why short sales are NOT a bargain for Buyers:

While the bank MIGHT take less then what they are actually owed, they are NOT going to accept a low-ball offer because the loss would just be too great - they would rather take the house and try selling it themselves.

It really is that simple.  So, you see a home listed as a short sale - the loan balance is $300,000 and you think "I'll offer them $190,000, they should be thrilled!".

Not only won't the bank be thrilled, they probably won't even respond.  They'll just keep waiting for bigger offers.

Don't forget, you're not dealing with the owner and what he or she will accept - with a short sale the BANK is in control and they don't just throw away money.

There are some REAL bargains to be had in Palm Beach Gardens real estate - call me.

I'd like to apologize to my regular readers for the recent slowdown in my writing-

Just as I've been talking about for quite some time, things have been getting busier and busier in the Palm Beach Gardens real estate market.  And as Mary McKnight is so fond of saying 'Real estate FIRST, blogging second!".

It's a combination of several factors:

• the general public is finally starting to realize that things are turning around...
• while we still have a Buyers' Market here, prices are starting to go back up slowly in some areas, so those 'great deals' aren't going to be around forever
• the local newspaper even printed positive real estate news yesterday (yes, really)
• another big thing is the # of potential buyers that are showing up from Canada and Europe  - their money is particularly strong against the US Dollar right now so it's a perfect time for them to move and/or invest

All of the activity, combined with the opening of Knightlines Mortgage Services new Palm Beach Gardens home loanbranch hasn't left me with much time to write.

So, I just wanted to check back in and assure everyone that I'm not gone - I'm just THAT busy.

And the phone is ringing again-

It's great to report that activity is really starting to pick up for Palm Beach real estate.

The best part is that I'm actually experiencing it.

Between the 'overly positive' reports from within the industry and the hyper-negativity from the press there is an area where the common person is able to figure out things for themselves.

When those people start to call me from different areas of the country - all with basically the same thought - that they've been following the real estate market for a while and they think that NOW is finally the right time to buy real estate in Palm Beach...... Well, that's good news.

Just this week I've dealt with people from New Jersey, Connecticut, California and Canada.  They all had the same feeling, while last season was still a bit too pricey, they feel that the current prices are in line and if they want a good value, the time is now.

While I'm certainly not psychic (I still haven't hit the lottery..) I think that the great Florida price decline has ended.  I deal mainly with luxury property and while the owners have been amenable to price adjustments through the year, most people that I know have no intention of going any further.

It's the classic Have to vs. Want to Sell that I keep bringing up.  So many Sellers would certainly LIKE to sell - for a fair price.  They aren't desperate and they won't jump at just any offer.  They have no intention of dropping their prices any lower.

So as the general outlook continues to improve, more and more real estate transactions will close.  The number of homes available will drop and the word will get out that if you haven't bought yet, you're running out of time. Perceived value will increase and prices will start to go back up.

Business 101 - it can't get much simpler.

A Client of mine brought up the subject of Hard Money loans.  He practically cringed when he said the words -

He, like so many other people, just didn't know what they are.  You really don't hear about them too much, but they fill an important niche in the mortgage world.  Hard Money is available for both residential and commercial deals.

I'm going to give you the basics of this type of loan today -it could be the solution you're looking for in financing your Palm Beach real estate.

In a nutshell, we're talking about private money that is NOT backed by the Government as opposed to the typical conventional mortgage product.

So knowing that, why would you use it?

• Since you're looking at a private money source, qualifying requirements are much less strict than with conventional mortgages.  
• If credit scores are even considered, they can be lower then the typical range. This is probably the biggest positive factor.
• Due to the lower requirements, the whole process is usually much faster.

So if there is a credit history / score problem, a very unique situation or time is very short, hard money might be the way to go.

On the other hand you have to look at the terms of the loan.

• The maximum loan-to-value (LTV) is typically low, around 75%.
• Rates are typically very high - I know of one company that will charge between 9.99 and 13.99%.
• The up front charge for the loan will also be higher then what most people would expect, ex 5+ points

While the costs may seem extreme (especially the rate) these are typically only used for short periods of time.

If you can qualify for another type of financing, that is certainly a better way to go.

BUT if you need the money and conventional won't work, there ARE alternatives.

Please call me at (561)-282-7406 if you have any questions about this or any other kind of financing.