Short Sale Real Estate Experts - We Can Help
Luxury Short Sale Real Estate Experts
Those can be four of the most frightening and dreaded words in the real estate industry, but they don’t have to be. You do not have to be stressed out over complicated transactions which can occur during the short sale process especially in the higher end luxury Palm Beach real estate market. As luxury short sale real estate experts, and extensive experience with Palm Beach Mansions for sale and Boca Raton Mansions for sale in particular, our team of Boca Raton Realtors® Boca Raton Real Estate Brokers and Boca Raton Real Estate Agents are here to help and guide you through the short selling real estate process using our knowledge and expertise.
What is a short sale?
Simply put: A short sale is a real estate transaction where the seller of the property and the lender on the property agree to allow the property to be sold to an interested buyer for less than the mortgage balance owed on the property, and cedes all proceeds to the loaning party. As a seller, however, you would like the mortgagee (lender) to approve the short sale with a full deficiency release.
In recent years, short sales have become increasingly en vogue to sell premier real estate in South Florida. While it may be a difficult process for the homeowner, and the buyer needs the patience of a Saint, it is the best alternative to losing property to the bank through the foreclosure process. However, it must be said that having luxury short sale real estate experts and an Attorney familiar with short selling real estate working with you are a must, as this is not an easy transaction for any seller to undertake alone.
For potential home buyers, luxury short selling offers a compelling opportunity to purchase property at a low price. One of the downsides to short selling a property (luxury short sale properties or otherwise) is the time that it takes to get the formal approval from the lender on an agreeable price based on the current market conditions. The bottom line is that while short sales and luxury short sales can be the better deal in the marketplace from a pricing perspective, short sales are anything but short in process and the Boca Raton Realtors at Palm Beach Premier Real Estate are here to help make it a smoother process and less stressful.
Since the peak of the local Palm Beach real estate market was reached in 2005 and 2006, short selling real estate has become commonplace, and for understandable reasons, particularly Real Estate in Palm Beach County Florida due to the appreciation and overbuilding that occured. At the height of the market, there was a fundamental disconnect between local real estate prices and average household incomes; credit had become so widely available, often times without the need for little, if any, supporting documentation that there seemed to be no end to the local price appreciation of real estate. Inevitably, the house of cards as many have coined the market’s peak came tumbling down and with it, sharp declines in the values of real estate. The greatest areas of decline being those local marketplaces that were overbuilt and which experienced the most dramatic price appreciation and the most leveraged.
In South Florida, the Palm Beach real estate market was hit particularly hard. Real Estate in Palm Beach County Florida especially Boca Raton, Highland Beach, Delray Beach, Palm Beach, Manalapan, Boynton Beach – all these cities have experienced significant price declines in the values of real estate and have seen an explosion in both luxury short sale properties and luxury foreclosure properties in Boca Raton and surrounding Real Estate in Palm Beach County Florida and luxury foreclosure properties.
As real estate prices declined, banks have become increasingly more receptive to the practice of short selling real estate, and in particular, luxury short sale properties and luxury foreclosure properties have become increasingly in vogue for our discerning clients. As previously mentioned, a short sale, simply put, is a real estate transaction whereby the bank (mortgagee) agrees to accept less than the value of the outstanding amount owed by the borrower (mortgagor). Obviously the transaction itself is far more complicated, but here is an example of one of the typical luxury short sale properties in Boca Raton and surrounding Cities in Palm Beach County that we at Palm Beach Premier Real Estate specialize in, and have become experts at successfully closing:
Stop Foreclosure - Short Sale Real Estate Experts - Understand Your Options
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An Example of a Luxury Short Sale Real Estate Transaction:
On February 2nd 2011 we listed a large single family home as a luxury short sale property in Boca Raton in the exclusive Boca Raton community of Estancia West.
The luxury short sale property was listed, based on the like-kind comparables (sold and active MLS (Multiple Listing Service) listings similar in size and features to the subject property within the most recent 6 month period) for $570,000. The subject was a typical one of the upscale Boca Raton Mansions for sale that one would find in any luxury Boca Raton gated community.
The house was a large, 4 bedroom, 2.5 bathroom home, situated on a pie shaped lot with in-ground swimming pool and beautiful lake view. There was one lender involved and our client had originally purchased the subject property a year prior to the market reaching its peak levels, and was “upside down” on the property.
One of the Attorneys that we refer our Clients to if they ask, specifically specializes in luxury short sale properties in Boca Raton and luxury foreclosure properties, and on this occasion, they represented our client in the short sale negotiation process with the lender. This particular Attorney specializes in Boca Raton Mansions for sale Palm Beach Mansions for sale and generally in all Real Estate in Palm Beach County Florida and has extensive experience with the short sale process.
Initially, the lender was adamant that they wanted $595,000 from the buyer who was only willing to offer $495,000. As prices continued to decline in the sub-division and surrounding area during the period of this lender negotiation, the comparable sales and comparable listings (also referred to as “Comps”) fell near to the initial offer price. As is customary with real estate short sales, the bank or lender, typically orders what is called a Broker Price Opinion, otherwise referred to as a BPO. Unlike an Appraisal, this is an opinion of value performed by a licensed Agent or Broker. The Broker Price Opinion should have come in around $525,000 based on the price declines since the time of the initial listing, however, the bank continued to maintain that the Broker Price Opinion valuation was $595,000, which we were adamant was not a value supported by current and existing comparable sales and listings in the subject neighborhood, and asked the lender to supply us with the listing addresses used in the BPO which they declined to disclose.
In getting this luxury short sale property in Boca Raton finally approved by the bank, we encouraged our client to obtain an independent appraisal. This formal appraisal came in at $505,000, and with some strong support now in hand, we were finally able to persuade the bank to rely on the Appraised Value rather than the Broker Price Opinion valuation. Our client is closing within the next 30 days with a full deficiency release negotiated by the Attorney, and the Buyer is thrilled with their wonderful purchase at the current market price levels of $520,000.
Short selling real estate and executing successful luxury short sale properties in Boca Raton and surrounding Real Estate in Palm Beach County Florida is a niche area of our Boca Raton based Real Estate Brokerage. The Boca Raton Realtors®, Boca Raton Real Estate Brokers and Boca Raton Real Estate Agents at Palm Beach Premier Real Estate have the savoir fare and access to legal expertise to ensure you a discrete, timely and fruitful short sale transaction for your luxury premier estate property. If you do not have the proper experienced luxury short sale real estate experts to help you, or if your real estate agent has no experience with short sales, then the process of arranging a short sale can be quite complicated and stressful. Whether you are a seller who is looking to arrange the short sale of your premier South Florida real estate, or a buyer who is looking to purchase luxury short sale real estate in South Florida, having a team of premier short sale real estate experts to help guide you through the complicated process is a must.
If you would like to know more about short selling real estate, luxury short sale properties and luxury foreclosure properties, please give Boca Raton Real Estate Brokers Gia Freer and Grant Freer – The Luxury Boca Raton Real Estate Team – a call at at 561.395.8418, or alternatively, you can email us at: Info@PalmBeachPremierRealEstate.com
Palm Beach Premier Real Estate is proud of our 100% approval record from lenders nationwide on luxury short sale real estate and premier estate properties.
image courtesy of iStockPhoto.com
Luxury short sale agents Gia Freer and Grant Freer are short sale specialists and short sale REALTORS in Florida offering FREE expert help to home owners in hardship to stop real estate mortgage foreclosure.
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