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Buying a Wellington Short Sale: Get your Checkbook Out!

Buying a Wellington Short Sale can be a very daunting and confusing process, especially if you are not working with an experienced Wellington Short Sale Agent who can guide you through the process.  This is the fifth in a series of post, which will serve to educate Wellington home buyers about the often misunderstood process called a short sale:

Once you write an offer on a Wellington short sale it will be submitted to the seller, who will either accept, counter or reject.  If you and the short sale seller come to terms be prepared to put down an initial escrow deposit, which is usually between $1,000 and $5,000.  This escrow deposit will be held by a brokerage, title company or attorney.  Depending how the contract is written the initial escrow may or may not be refundable.

Once the contract is fully exectued it will then be submitted to the short sale lender for approval.

If you are interested in purchasing a Wellington short sale and need an experienced short sale agent contact me today!

Part 1:  What is a Short Sale?
Part 2: Short Sale Negotiations
Part 3: Short Sales are NOT Short!
Part 4: Expect to Pay Market Value!


Read more: http://wellingtonhometeam.com/buying-a-wellington-short-sale-get-your-checkbook-out/#ixzz1tiW1k5ts

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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I was recently contacted by an agent who submitted a full price offer on one of my listings and their client wanted to know why their offer wasn't accepted.

It is important for buyers to understand a full price offer doesn't mean the seller will pick their offer or has to pick their offer.  While a seller may initially focus on price there are so many other terms in a contract that can easily be a deal breaker, like a request for seller concessions, little or no money down in escrow or a non-negotiable close date that doesn't work for the sellers.

When I sit down with a client to write an offer we discuss ALL the terms of the offer, not just the price.  These other terms that are often times discounted or brushed off include the following:

Financing: Are you paying cash or getting financing?  Prior to writing an offer you should know whether or not you're going to pay cash or what type of loan program you're going going with.

Closing Costs: Are you asking the seller to contribute towards your closing costs?  Offering full price and asking for a 3% seller contribution is technically not a full price offer to the seller.  While you are paying full price, the seller will not be netting the full price.  If the asking price is $200,000 and you offer $200,000 with a 3% seller contribution the seller is actually netting $194,000, NOT $200,000.  If you need seller concessions know how much, don't put 6% and only need 3% because that additional 3% could make a huge difference.

Escrow: How much are you putting in escrow and when?

Closing Date:  When do you want to close and is this date flexible?  If the property you want to purchase is a short sale make sure your closing date is VERY flexible because approval could come at any minute and you will most likely be given 30 days to close from approval date.  Unfortunately the bank is not going to care that your lease isn't up for another 90 days and give you an extension for that amount of time.

Contingencies:  What type of contingencies and when do the contingency periods end?  Common contingencies include inspection and mortgage.

My goal as a REALTOR® is to educate my clients about ALL the terms of their offer and NOT focus solely on price because in a multiple situation those terms can become VERY important and crucial.

Price is a big factor, but there are other pieces to the puzzle!

If you are looking to purchase a home in Wellington Florida contact us today!

Originally posted http://wellingtonhometeam.com/what-do-you-mean-my-full-price-offer-wasnt-accepted/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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©2011 All Rights Reserved

Wellington Florida has some of the best public schools in the county, so it's no surprise one of the most popular questions asked by Wellington Home Buyers is "What Wellington School will my Child go to?"

Unfortunately real estate agents are not able to do home searches by schools nor is school information provided in our MLS.  However the Palm Beach County School Board has two helpful tools to help Wellington home buyers determine what Wellington school their child will attend.

1.  Wellington School Address Locator:  With this tool you can input a property address and it will tell you what elementary, middle and high school the home is zoned for.

2.  Wellington School Boundaries:  If you want your child to go to a specific school you can search Elementary School, Middle School or High School by boundary maps with this tool and focus your home search within the boundaries.

Below is a list of all the Wellington Florida public schools, including their boundary map, addresses and phone number.  Also included in this list are private schools in Wellington Florida.

Binks Forest Elementary School (Boundary Map)
15101 Bent Creed Road, Wellington Florida 33414
Phone: 561-792-5250

Elbridge Gale Elementary School (Boundary Map)
1915 Royal Fern Drive, Wellington Florida 33414
Phone: 561-422-9300

Equestrian Trails Elementary School (Boundary Map)
9720 Pierson Road, Wellington Florida 33414
Phone: 561-791-9300

New Horizons Elementary School (Boundary Map)
13900 Greenbriar Blvd, Wellington Florida 33414
Phone: 561-795-4966

Panther Run Elementary School (Boundary Map)
10775 Lake Worth Road, Lake Worth Florida 33449
Phone: 561-804-3900

Wellington Elementary School (Boundary Map)
13000 Paddock Drive, Wellington Florida 33414
Phone: 561-795-4969

Emerald Cove Middle School (Boundary Map)
9950 Peirson Road, Wellington Florida 33414
Phone: 561-803-8000

Polo Park Middle School (Boundary Map)
11901 Lake Worth Road, Wellington Florida 33414
Phone: 561-333-5500

Wellington Landings Middle School (Boundary Map)
1100 Aero Club Drive, Wellington Florida 33414
Phone: 561-792-8100

Palm Beach Central High School (Boundary Map)
8499 W Forest Hill Blvd, Wellington Florida 33414
Phone: 561-304-1000

Wellington High School (Boundary Map)
2101 Greenview Shores Blvd, Wellington Florida 33414
Phone: 561-795-4900

St. David's in the Pines (Elementary)
465 W Forest Hill Blvd, Wellington Florida 33414
Phone: 561-793-1272

Wellington Christian School (Elementary, Middle & High)
1000 Wellington Trace, Wellington Florida 33414
Phone: 561-793-1017

If you are looking to buy a home in Wellington contact us today for all your real estate needs.

Originally posted athttp://wellingtonhometeam.com/what-wellington-school-will-my-child-go-to/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved

Testmonial for Michelle Gibson, REALTOR®: Another Happy Short Sale Buyer!

Receiving positive reviews always makes my day, it’s reassuring to know that my clients are happy.  Read what my latest client, a short sale buyer, had to say about the service they received:

I was referred to Michelle from a friend after telling them the horror stories with our previous realtor. Unlike like him, she was always available to answer questions and give us guidance while buying our first home. She really listened to what we were looking for and didn't waste time on houses she knew didn't fit. Michelle helped us find the perfect home for us in the neighborhood we wanted. 

Since our home was a short sale there were bound to be problems during the buying process. She made us aware of everything that could happen and kept constant contact with us. If it was not for Michelle's ambition and great relationship with us and with others in the community, I know we would not have our house. 

We can't thank her enough and look forward to working with her again when the time comes. In addition we have already referred her to friends. If you are looking for a GREAT realtor please pick Michelle. You will be very pleased. 

Thanks Michelle!
Shannon & Michael

Originailly posted at http://wellingtonhometeam.com/another-happy-short-sale-buyer/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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©2011 All Rights Reserved

A few weeks ago I received a call from a potential buyer who wanted to look at several homes.  I love showing homes, it's probably one of my favorite parts of being a REALTOR, but I only show homes to qualified home buyers.

When I asked this potential buyer if they were obtaining financing or paying cash they confidently told me "financing won't be an issue, I'm putting 20% down," yet they had not been approved by a lender.

Unfortunately putting 20% down means absolutely NOTHING.  Last year I had a buyer who wanted to spend up to $300,000 and was putting 60% down, but after going through the qualifying process she was only approved for $200,000 with 60% down and there is a HUGE difference between a $200,000 home and a $300,000 home.  

Could you imagine if we looked at $300,000 homes for weeks or even months assuming she could purchase one only to find out she could not get a loan for that amount?  Not only would I have a disappointed buyer on my hands I also would have wasted a lot of time for all parties involved, including mine, my clients', the sellers and possibly their agents.

Just because a buyer can afford the monthly payment (mortgage, property taxes & homeowners insurance) on a home doesn't mean they will get approved for that amount by a lender.  Online mortgage calcultors are great along with the old saying, triple your income and that's how much house you can afford, but neither are realistic or accurate.

If you are looking to buy a home and need financing the first step is getting pre-approved for a mortgage.  

Still not convinced you need to get approved first?  Check out this great article:  Why do I need to get pre-approved first?

Originally posted at http://wellingtonhometeam.com/do-you-see-a-doctor-before-having-surgery/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved

An Escrow Deposit, also known as an Earnest Money Deposit, is money that a homebuyer puts down as a sign of good faith when purchasing a home.  

Where does the escrow deposit go?
The buyers escrow deposit is usually held by the Listing or Selling Real Estate Brokerage, Title Company or Attorney and will be applied towards the buyer's closing costs.  

When is the escrow deposit collected?
Our Residential Contract for Sale and Purchase has three options for when the escrow deposit is collected:

1. It Accompanies the Buyer's Offer
2. Upon Seller Acceptance
3. Collected within "X" Days After Seller Acceptance

Most homebuyers choose option #2 as opposed to option #1 because once an escrow check is collected it must be deposited into an escrow account.  By choosing #2 the escrow deposit will only be collected and deposited if the buyer and seller come to terms.

How much escrow does a buyer need to put down?
The amount of an escrow deposit varies.  In my experience the initial deposit is usually between $1,000 to $5,000.  Besides the initial deposit a homebuyer may put down an additional deposit within 7-15 days after the effective date of the contract.

Do homebuyers have to put down an escrow deposit?  
NO, BUT I have never seen a seller accept an offer without an escrow deposit.

Can a seller keep a homebuyers escrow deposit?
YES, IF the buyer defaults there is strong possibility the seller will be entitled to the buyer's escrow deposit, but it depends how the contract was written.

If a buyer's only contingency is to obtain financing within 30 days and they are denied within that contingency period the escrow will be returned to the buyer.  However if the homebuyer is approved for financing and on the 35th day the buyer decides to back out of the contract the seller will most likely be entitled to the buyer's escrow deposit.  Once again it all depends on how the contract was written.

Can the escrow company release the escrow deposit to the buyer or seller?
If the buyer is backing out of the contract both the seller and buyer will need to sign a release and cancellation of contract agreeing to who gets the escrow deposit.  However if the escrow deposit needs to be released for closing most escrow companies require an escrow request form to be completed and the escrow deposit will be made payable to the closing company.  This isn't something the buyer or seller needs to sign off on.

If you are looking to buy a home in Wellington FL contact us today!

Originally posted at http://wellingtonhometeam.com/what-is-an-escrow-deposit/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved

One of the many Wellington short sale questions I often receive from home buyers is whether or not they can negotiate the asking price of a short sale.  First, it is important for Wellington home buyers to understand that short sale sellers still own their home, NOT the bank, so just like a traditional sale they will be negotiating with the seller.

Now if the buyer and seller can come to terms unlike a traditional sale the short sale seller will have to submit the executed contract to their bank(s) for third party approval.  It is during this process the price negotiated between the buyer and short sale seller may or may not be accepted.  

Unfortunately Wellington short sales are NOT guaranteed and it is very important for home buyers to understand that just because the Wellington short sale seller accepted their offer does not mean the sellers bank(s) will.  There is also a possibility that the Wellington short sale seller will not agree to all the terms set forth by their bank(s) and if an agreement can't be reached the short sale may ultimately be denied.

So the answer is YES a Wellington home buyer can try to negotiate on a Wellington short sale.  However home buyers need to be aware that the median list to sales price ratio for closed Wellington short sales so far in 2011 is 96.63%.  That means short sales listed for $300,000 sold for $289,890, not $200,000, $250,000 or even $275,000.

If you are a home buyer interested in purchasing a Wellington short sale it is extremely important to work with an experienced Wellington short sale agent who will be able to guide you through the entire process from start to finish.  

Click here if you would like to buy a Wellington Short Sale
Click here if you would like to sell your Wellington home via Short Sale
Click here to learn more about Wellington Short Sales

Originally posted at http://wellingtonhometeam.com/can-i-negotiate-on-a-wellington-short-sale/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved

This month's "Featured Community" is Wellington Shores! For those of you not familiar with this gorgeous community it is located in Wellington Florida on the south side of Lake Worth Road just west of 441 (SR7). Shops, restaurants and entertainment are a short bike ride or drive away and top rate schools are within walking distance.

Wellington Shores is one of Wellington's smaller gated communities with only 181 single family and estate homes. At any given time less then 3%-4% of the homes in Wellington Shores are for sale often making this great community a Seller's Market.

Within the gates of Wellington Shores you will find a beautiful clubhouse, equipped with a fitness center, children's playroom and grand social room. Wellington Shores also has a swimming pool, lighted tennis courts and tot lot.

There are currently 4 homes for sale in Wellington Shores with an asking price ranging from $180,000 up to $489,000. While distressed property sales, bank owned homes and short sales, have been common throughout Wellington for several years Wellington Shores only has one distressed property for sale at this time.

The average home in Wellington Shores will have 4 bedrooms, 3 bathrooms and a 3 car garage. The square footage of these homes under air ranges from 1,838 up to 3,183. While two story homes are extremely popular there are also single story homes as well.

If you interested in buying a homein Wellington Florida I highly recommend checking out Wellington Shores!

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved

When entering the world of Wellington short sales there are a lot of unknowns, so it is extremely important that buyers understand the Wellington short sale process and set their expectations accordingly.  

If you are a buyer considering pursuing a Wellington FL short sale here are a few things you can expect:

• Short Sales are NOT Short!  As a Wellington Short Sale Buyer expect to WAIT.  The current median days on market for a Wellington FL Short Sale is 223 days, which is just over 7 months.  However every single short sale is different, some might take 30 days while others might take over a year.  Typically the more lienholders the longer the process.

• Expect to pay market value!  The median list to sales price ratio for short sales in Wellington is 97%, which means a home listed for $300,000 will sell for $291,000.  Yes, that's 3% off the list price, not 5%, 15% or 25%. 

• Get your checkbook out!  If your offer is accepted by the short sale seller expect to write a check for your initial escrow deposit.

• Have your Lender on standby!  The minute you receive short sale approval from the seller the clock starts ticking and you will most likely have 30 days to close.  Shopping lenders should not be done at this time.

• Be prepared for disappointment!  Yes, it's unfortunate, but short sales are not guaranteed and there is a possibility that it won't be approved.  This mean you'll have to start your home search all over.

If you are interested in buying a Wellington Florida Short Sale make sure you understand the entire short sale process and set your expectations accordingly.  Contact us today for all of your Wellington real estate needs, including Wellington Short Sales.

Originally posted at http://wellingtonhometeam.com/what-should-i-expect-when-buying-a-short-sale/ on August 25, 2011

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved

• The Seller is expecting more offers
• The Seller is skeptical about the offer, something looks "fishy"
• The Seller just listed the home and is questioning if they listed too low or if more offers may come in
  
• The Seller is a Bank, which can take some time
• The Seller is on vacation and unreachable
• The Seller hasn't received the offer because the listing agent didn't present it or in some cases even receive it from the buyers agent, who didn't confirm receipt

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

Search Wellington FL Homes For Sale | Search Wellington FL Homes For Rent
       Wellington Florida Short Sales | Buying a Wellington FL Short Sale?

©2011 All Rights Reserved