Wellington Short Sale Market Updates
The Wellington short sale inventory- homes listed for sale that are short sales has dwindled to a very few. There are currently only 18 short sales listed for sale in Wellington Florida.
The highest priced short sale is listed at $875,000 in the Equestrian Club on World Cup drive.
The lowest priced is an investor special on White Pine listed at $135,000. If the bank wants that much for that section of the rental area in Wellington- they should not hold their breath. Most of the townhomes located on this street are not even close to that so I don’t know what comps they are using.
The second to lowest priced short sale is a lot located in the Binks commercial area that is listed and short sale approved for $150,000.
There is a gorgeous former model home listed as a short sale in Buena Vida – a very popular 55+ community in Wellington. This home is listed at $280,000.
The majority of the short sales for sale in Wellington are in our median price ranges of $350,000 to $500,000. For a complete list of short sales for sale in Wellington Florida click here.
Wellington Short Sale Market Report – An Overview from 2007 to 2013.
Wellington Florida is a great place to live and is the first choice of many people moving to Palm Beach County Florida. When the South Florida market took a hit in the beginning of 2007 it affected every town in the tri-county southern part of our state.
We started to list short sale properties at an increased pace starting in September of 2007. There were a lot of short sales in 2008 through 2010. In 2011 Wellington was getting back up and prices started to stabilize. But of course, there were still many homeowners over 50% under water. You could easily find 200 short sale listings back in 2008 and 2009. In 2012 the market turned around and the prices started to go up again but not at the toxic pace from before the bust.
Today we are down to only 19 short sale listings for sale in Wellington. That is a huge drop.
There are three reasons for this:
1. The market has turned and so people are deciding to keep their homes and not selling them even though they are upside down. After all, a home is a home. It is not just an investment to many families and retirees.
2. Many homeowners have not paid their mortgage payments in several years, some upwards of 4 years and still get to live in their homes. This is going to stop soon because of new legislation to help speed along the courts processing the foreclosures. But of course, when there is no incentive to list a home as a short sale when you can wait it out as long as possible and save up your money to move.
3. The banks are not foreclosing on homes as fast. Wellington has a tough code enforcement division and the banks don’t want to pay the city for all the fines and code violations that REO properties are known for.
The highest priced short sale is listed at $1,499,000 on Sea Mist located in Palm Beach Point- an awesome equestrian gated community with homes on 5 acre lots.
The lowest priced short sale is listed at $179,900 and is an approved short sale that was just put back on the market in an older area of Wellington.
There are two short sales available in Buena Vida a 55+ community in Wellington. This is very unusual to have a short sale in Buena Vida. One home is listed at $350,000 and the one is listed at $280,000.
The Isles of Wellington is another nice gated community. There is one short sale available and it is an approved short sale. This home is listed at $325,000.
There are only three short sales now listed in Olympia of Wellington. Now that is the lowest number of short sales in Olympia in years! Olympia was the short sale factory as well as heavily dominated with REOs. This is because so many people bought on speculation in Olympia. Many people including agents bought 6 to 7 homes pre-construction and flipped the properties before they were built. But many people got caught holding the bag. They could not sell those properties when the bust happened. It appears that Olympia has come out of that phase and is now doing well.
Do I Have to Put a Deposit in With my Offer to Buy a Property?
There is no law that says you have to put deposit money down with your offer to purchase a property. But there is a law in Florida called the Statutes of Fraud. Part of that law says that in order to enforce a contract there has to be some time of consideration. That can be in the form of cash, check, money order or bank check. It could also be gold, silver or whatever else of value.
Now, with saying all that…. you know the answer to so many questions, it all depends:)
Why are you buying a home? The reasons you are buying a home should become part of your reasoning as to what type of deposit to attach to your offer.
If you fall in love with your dream home it is highly likely other buyers may also be of the same opinion as you. That creates competition. Here in Wellington many listings get multiple offers. The stronger you make your offer, the better your chances are that the seller will accept your offer and not someone else’s.
Many buyers don’t learn this lesson until after they have lost the chance at buying a home they fell in love with.
The bigger deposit you put with your offer, the more serious you appear to be in going through with the sale of the property.
A seller has to take their home off of the active market once they accept an offer. So they are looking at what is going to be the offer that is most likely going to close. The highest and best offer and terms is usually the one a seller will accept.
The seller has to take his/her house off the market they in turn want you, the buyer, to not be actively searching for another home. Some buyers want to place offers on multiple properties.
Many buyers’s agents don’t want to have the buyer’s money at risk. What if you decide you don’t want the property next week?
There are contingencies you can add to your offer, such as your offer is subject to you accepting the home inspection report on the property. If you don’t like the inspection report you can cancel your contract. If you cancel your contract within the terms of the contract, you get your deposit money back within the time specified.
If you don’t show the seller you are a serious buyer the seller will likely accept another offer.
No matter what the opinion of anyone else is, you must always ask yourself, do you really want this house? Are you willing to show that you are a serious buyer?
Wellington Short Sale Market Report – September 2012
Currently there are only 38 short sales for sale in Wellington.
The highest priced short sale is a single family home with a 6 stall barn listed at $1,649,000.
There is one short sale for sale in the Aero Club of Wellington listed at $975,000 located right on the taxi-way.
There is one home for sale in Paddock Park listed at $742,100 but his property is getting put on an auction and requires a 5% buyer premium.
The next home for sale in Wellington as a short sale is in the Olympia community in the luxury section and is the sought after Casa Della Scala model listed at $665,000.
The lowest priced short sale for sale in Wellington is a small condo on Shaker Circle listed at $60,000.
If you want to make an offer on a Wellington short sale or sell your Wellington home as a short sale contact Nestor Gasset and Katerina Gasset at 561-753-0135. We have over 20 years of short sale experience to help you manuever the tedious and often frustrating journey of completing a successful short sale.
Wellington Short Sales Market Report – August 2012
In Wellington Florida currently there are 200 homes on the market. The inventory is down from last month by over 100 homes for sale.
The market in most price ranges in Wellington has certainly turned into a sellers’ market.
There are 47 homes listed as short sales in Wellington right now. So these homes, most of them will get multiple offers on them.
If you were waiting for the right time to buy or were waiting for the market to hit bottom, well, the bottom of the market is when you can see it in your rear view mirror. That time has gone.
Buying a home now is the best time to buy because there is only one place for home prices to go now and that is up. The law of supply and demand.
If you need to sell your home as a Wellington short sale now may just be the perfect time to do so. This is because you will be getting the highest and best price for your home which means your lender is more apt to work with you on your short sale.
The debt relief act is running out in December of this year also. You will want to get your home on the market and close before December 31st of 2012.
Contact Nestor Gasset and Katerina Gasset at 561- 753-0135 to list your home as a short sale in Wellington.
Wellington Short Sale Agents- How We Help Homeowners Through The Process
When we get a call from a homeowner who is facing foreclosure or is just tired of being upside down in their mortgage we have a process that is put in place to assist in discovering their options.
1. We get the call from the homeowner through our website, our blog or a referral source.
2. We let the homeowner know that their call is confidential. We also make it clear that we are not attorneys and we don’t work for their lender.
3. Then we ask the homeowner to tell us their story. As they tell their story we can ascertain many points that will either help or hinder their short sale success. We listen for important details that may be between the lines. Some homeowners are ashamed of their circumstances so they may not realize that they do have an underlying hardship.
4. Then our office manager pulls up the tax appraiser’s report on the property being discussed to find out how far away from a foreclosure they may be. Sometimes homeowners don’t even know that they have been served with the lis pendens. Sometimes they turned over this part of their life to an attorney who may no longer even be in business.
5. Then our office manager pulls up any past or current listing history from the MLS.
6. The office manager puts together a package to give to Nestor who will then go through the package in finite detail to uncover any thing that will help us negotiate for the sellers.
7. Nestor calls the homeowner back to go over what the plan of action could be, the facts in the short sale process and then emails the seller a short sale package.
8. Our office policy is that a short sale listing is not put into the MLS without the seller turning in a completed short sale package along with all necessary disclosures to our office.
9. Most of the time in our area, the homeowner may have already relocated or it is a second home for someone who lives away from Florida. Most of the communication is by email, phone and texting.
10. Once we have the short sale package returned, Nestor looks over the short sale package to make sure he feels it is a scenario that we can get approved by their short sale third party lender.
11. Our office manager sends out the listing agreement through Docusign or E-sign to the sellers. The sellers execute the listing agreement and get it back to our office.
12. Cheska, our receptionist then contacts the seller to set up all the showing instructions.
13. Cheska then uploads the showing instructions to Showing Time – who handles our showing scheduling.
14. Cheska creates a sellers calendar and short sale document in google documents and goes over all of this with the seller. Cheska shows the seller how to use his seller calendar. Each time there is a marketing action for the property it is noted on the seller calendar.
15. Nestor or the office manager arrange for the lock box to be placed on the property. If a sign is allowed by the HOA then the company real estate for sale sign is placed on the property.
16. Nestor or the office manager arrange to get photos taken of the property.
17. Katerina prepares the marketing strategy for the property.
18. Katerina delegates the internet marketing action plans to our virtual assistants who are trained in syndicating the listings and place the online ads.
19. The office manager uploads the listing photos and gets the listing put into the MLS.
20. Most often, in this market, we will get multiple offers on the listing in a short period of time.
This is just from the point of the phone call to getting the listing put into the MLS. There are here, at least 20 tasks that much be accomplished to this point.
After the listing is in the MLS and after the listing is being marketed we will get an offer on the property. Many times we will have multiple offers on a property. We will go over each of the offers with the sellers.
Once an offer is accepted by the seller we move into the negotiating stage of the short sale processing. The next steps are determined by the processing rules of each particular lender. If the sellers are applying for HAFA the tasks will be different than the person applying for a regular short sale. The process is also different for people who have one mortgage on their home versus people who have two or more mortgages on their property.
Once all sides have completed the required steps we put together the short sale package to send to the lender or upload to the lender.
We order the preliminary HUD1 from Infiniti Title. Tina prepares the title documents along with any liens, permitting fees, encumbrances or any other title defects that may create an issue for title.
Nestor applies his charm to the cover letter:)
Once the short sale package is sent we must confirm it was received by the lender. This can be a full time job all by itself. The lenders are infamous for lost files.
But one day it will all be confirmed that the short sale package has been received and is going through the processing department and then assigned a negotiator.
Then we go into negotiating mode. This part of the process can take from a few hours to days or weeks.
When we received the approval letter from the seller’s lender we read the letter making sure it meets with our office requirements. Then we forward the letter on to the seller. The seller than can bring this letter to his attorney or decide if this is a letter he or she is willing to take along with the terms and conditions.
If the seller gives us the green light, we notify the buyer agent that we can now schedule a closing date and time.
First Wellington Short Sale We Closed On Was In February 2008.
We started listing short sales in Wellington as a commonplace listing in January of 2007. Those were the days! LOL! It was the Wild Wild West in short sales. That was the tag line if you attempted to do short sales in 2007 in Wellington Florida!
To put this in perspective Countrywide was still in business! In fact, during those times, Countrywide was the bulk of the short sales. Those were interesting times. There were no rules. In fact, Countrywide did not have many rules.
There was no HAFA, there was no HAMP, there was NO Equator, there were no incentives to lenders to get short sales done. In some ways we liked it better in the Wild West days because it was the agents and brokers that knew how to negotiate short sales and communicate with the banks that the lenders and servicers depended on.
We were in the ground zero of foreclosure territories in Florida. We were the ones in the streets watching the values of homes fall literrally overnight and waking to a storm of homeowners in default and a flood of foreclosures coming down. So the lenders depended on Nestor Gasset and other brokers like Dan Forbes on the west coast of Florida to help them determine the values of the properties we were listing as short sales.
The first short sale we actually closed was on February 21, 2008. It was a condo in St. Andrews in Wellington.
The address is 11750 Saint Andrews.
We knew that this short sale was only going to sell for about $190,000 at that specific time. But the servicer who was not a big lender countered our offers back at $269,000. We had a nightmare of a BPO from an agent who lived over 80 miles away from Wellington with no clue of our values here. He did not have any comps because there were no comps because nothing sold since the bust.
We fought, fought, negotiated, negotiated. We kept showing the lender that the longer they were stubborn about $269,000 the lower price they would end up getting.
In the end, we were right, the lender was wrong. The unit finally sold after all this time for $150,000!!!! Look how much money the bank lost on this deal!
This Wellington short sale condo was on the market for 402 days!
When agents complain today about short sales taking so long we remember the days of over a year for short sale approvals and that is without buyers walking! Never say never, when we were writing about these negotiations on ActiveRain back then, 99% of the agents said they would never do a short sale. There were posts I can dig up about how doing short sales would be too much liability to brokers so they would not allow their agents to participate in short sales. Now, look at the posts on AR about short sales:).
We had to create our own short sale addendums because even the state boards did not have forms for short sales in January of 2007 and our MLS, well, that is a whole other post!
Here is the testimonial letter that the owner wrote to us after his closing:
I just wanted to thank you again for all your effort and hard work. I can truly say that I have never had a real estate agent work as diligently and persistently as you both did selling this condo. I really thought it would be impossible to sell the condo in this brutal market, but you somehow came up with multiple buyers and put a deal together. I will highly recommend you to anyone I know who is in the market to buy or sell property in the Palm Beach area.
You guys are the BEST!!!
Some homeowners end up trusting the wrong Wellington Florida short sale agent simply because they feel it is “bad” manners to ask too many questions. That, unfortunately, could be their biggest mistake. As the owner of the house, you are the agent’s client and you therefore have every right to ask all the important questions.
What Questions Should You Ask a Wellington FL Short Sale Agent?
It’s your privilege to choose the best Wellington Florida short sale agent you can find to represent your home. Don’t waste that chance as you usually only get one with your creditor or banker. To help you find the ideal real estate agent to work with when short selling your home, here are several questions you could ask a prospective agent.
How long have you been working with short sale clients in Florida?
There are two reasons for asking this question. Firstly, you want to make sure that the agent has more than enough experience working with short sales. It’s a whole new ballgame compared to the rest of transactions taking place in the real estate industry.
Secondly, you want to make sure that the agent’s experience has to do with short sales in Wellington FL or at least in the state you’re in and elsewhere. This is critical because laws on short sales tend to vary from one state to another. Short sale laws in Florida, for instance, are practically the opposite when compared to those regulating short sales in California.
How many short sales have you completed in the past three years?
A Wellington FL short sale agent with numerous short sales tucked under his or her belt is all well and good, but how many of those sales had actually taken place in the past three years? You need to make sure that your agent has been active in recent years. If not, your agent may not be in the best position to understand current trends in the local real estate market. Consequently, your agent may also not be aware of the latest modifications on laws governing short sales.
Has the Wellington FL short sale agent dealt with your creditor in the past?
Having an agent familiar with the ins and outs of working with your creditor would be a huge bonus so try to find one who comes to the negotiation table with this kind of experience. If your loan is serviced by your bank but is actually owned by another company, it would be helpful if your agent – or even you – have the necessary contacts to get in touch with the latter.
This may come as a surprise to many, but not all Wellington Florida short sale agents actually do their own “dirty” work or short sale processing. In some cases, for instance, a Wellington FL short sale agent may actually be in charge of marketing and promoting your property alone while leaving the rest for another short sale company, agent, or expert to process.
There are certain advantages to enjoy in this kind of setup but it would ultimately depend on the short sale processing company that your agent is working with. If it is tried and experienced with short sales then you would have nothing to worry about. Meanwhile, your agent can concentrate on the marketing and selling side of things while the other party works behind the scenes, helping you arrange and gather the necessary documents and making your short sale package.
There are, of course, drawbacks as well and these are more obvious on the onset compared to the potential benefits for this kind of setup.
Firstly, you could only be relying on the word of your Wellington Florida short sale agent that the short sale processing company he or she is working with is reliable and noted for its efficient and effective service. But how can you really be sure of that if you don’t know the company to begin with?
Secondly, it may not be possible for you to contact the short sale processing company directly. This means that every time you need to communicate something about short sales, it has to go through your agent first. This can cause significant delays if you are not careful.
What to Look for in Wellington Short Sale Agents
Ultimately, it would be better if you trust a short sale agent in Wellington FL that has experience both on the marketing and short selling side of things. This way, someone will be able to answer any and all kinds of questions you have about your home and the short sale process.
Consider compatibility as well. Simply put, do you get along with your agent? If not, then nothing good may happen between the two of you as you may both be wasting time arguing with each other every step of the way. It’s very important that you find a Wellington Florida short sale agent you won’t feel uncomfortable to talk to anytime and whose methods for short sales you heartily approve of.
Even with financial aid packages starting to pour in from banks, there are still hundreds or even thousands of homeowners who won’t qualify for such help and are thus in dire need of the services of a Florida short sale specialist. Some time ago, the courts have ordered a number of banking corporations to offer additional financial aid – or even return deeds to previously foreclosed homes – to homeowners who have been wrongfully evicted from their properties.
If, however, you are only in the brink of foreclosure then such financial aid packages are not yours to enjoy. There is still a good chance that your bank or creditor would seize your property and foreclose it if you don’t take proper precautionary measures ahead of time. One such measure would be to approach a Florida short sale specialist and get him or her to help you.
Are Short Sales the Ultimate Solution?
Unfortunately, not all homeowners would be considered eligible for short sales. The conditions vary from one creditor to another. Ultimately, however, you or – more specifically – your Florida short sale specialist would have to prove that it’s to everyone’s benefit that you are allowed to short sell your home as soon as possible.
What Do Short Sales Entail?
Let’s say that your house in Florida may be sold today at $600,000. Unfortunately, your home used to be worth $800,000 and in fact you have mortgaged it to the hilt and thus owe the bank $800,000. Obviously, it would be pretty impossible for you to sell your home at its original price. But if you sell your home based on its current market value, then that would mean losing about $200,000 in the process.
$800,000 Original value of your home or the amount of your mortgage balance
$600,000 Present market value of your home
$200,000 Negative balance if you sell your home at its present market value
This won’t be that big a problem if you fully own your property and it’s not encumbered in any way. Although you are losing $200,000 technically, it’s not something that would significantly hurt your finances.
But it’s different if you owe $800,000 on your home and are no longer able to keep up with mortgage payments. To prevent foreclosure and an unwanted blemish on your credit record, you would need to sell the home. But even if you do sell it, you would still be left with a $200,000 debt you can’t pay.
Now, this is the part where a Florida short sale specialist can step in and help you out.
A short sale specialist would do the following to ease your burden: