Where's Wellington?

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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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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• 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

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©2011 All Rights Reserved

Are you trying to decide whether or not you should Rent or Buy a home in Grand Isles? Below are three Rent Vs. Buy comparisons on homes that have recently sold in Grand Isles, which is a guard gated community located in Wellington Florida.

Purchase Price: $180,000:
$893 for Principal & Interest*
$150 Homeowners Insurance*
$300 Property Taxes*
$136 Grand Isles Monthly HOA Fee (Includes amenities, basic cable & gated entry)
Total monthly payment $1,479 vs. $1,700-$1,900 a month to rent a 3 bedroom home.

Purchase Price: $185,000
$918 for Principal & Interest*
$154 Homeowners Insurance*
$308 Property Taxes*
$205 Grand Isles Monthly HOA Fee (Includes front lawn care, amenities, basic cable & gated entry)
Total Monthly Payment $1,585 vs. $1,800-$2,000 a month to rent a 4 bedroom home.

Purchase Price: $305,000
$1,514 for Principal & Interest*
$254 Homeowners Insurance*
$508 Property Taxes*
$136 Grand Isles Monthly HOA Fee (Includes amenities, basic cable & gated entry)
Total Monthly Payment $2,412 vs. $2,600-$2,800 a month to rent a 5 bedroom home.

RENT vs BUY in GRAND ISLES - WELLINGTON FLORIDA

While there is no doubt your monthly mortgage payment will be less than a monthly rental payment there are several pro's and con's to owning or renting a home in Grand Isles.

You can start searching homes for sale in Grand Isles - Wellington FL now:

*Monthly Mortgage is based on a 30 year fixed FHA loan with a 4.625% interest rate and 3.5% down. This is not a commitment to lend and restrictions apply. Homeowners Insurance will vary, an estimate of 1% of the purchase price was used. Property taxes will also vary, an estimate of 2% of the purchase price was used and when purchasing a home in 2011 property taxes will be based off the current homeowners rate. Originally posted at http://wellingtonhometeam.com/rent-vs-buy-in-wellington-florida-grand-isles/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

Search Wellington FL Homes For Sale | Search Wellington FL Homes For Rent
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©2011 All Rights Reserved

This week I received an e-mail from a potential buyer who wanted to know if they could purchase a home they found online for $120,000. Before I even pulled up the listing I knew by the address that paying $120,000 was not a possibility since homes on this street are selling for $200K+.

While the property value on most Wellington Florida homes has declined roughly 50% since 2005 home buyers are not going to be able to negotiate another 50% off the asking price unless the home is drastically over priced.

The current median list to sales price ratio in Wellington this year is 96%, which means a home listed for $200,000 will sell for approximately $192,000. With that being said there are still a homes selling for full asking price or even more.


If you are looking to buy a home in Wellington Florida you can start your home search here:

If you no longer want to sort through properties that don't fit your needs fill out our Online Buyer Questionnaire and receive a list of current homes for sale that do meet your needs.

Originally posted at http://wellingtonhometeam.com/why-does-a-wellington-short-sale-seller-even-care-if-you-write-a-low-ball-offer/

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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©2011 All Rights Reserved

Wellington Florida is a fabulous place to call home and if you are looking to purchase a home in Wellington there is no need to look any further because you can search right here on our interactive Wellington real estate map.

From condos to luxury estate homes Wellington FL has something to offer every type home buyers out there. If you want to do an "advanced home search" you can go to Search Wellington Homes for Sale, where you will be able to narrow down your Wellington home search even more.

If you already live in Wellington then you know all of the great things it has to offer. However if you don't currently live here then you may not know about the top rated schools, weekly community events or the world class equestrian events. The list of what Wellington has to offer goes on and on.

My family and I have lived in Wellington for over a decade now and there is no other place I rather call home. If you are looking to call Wellington home too let me assist you with all of your Wellington FL real estate needs.

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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©2011 All Rights Reserved

Wellington FL Short Sale Pitfalls for Buyers

If you are interested in purchasing a Wellington FL short sale there are several pitfalls that can come up along the way.  However keep in mind these pitfalls can also come up if you are purchasing a bank owned home or traditional sale (home with equity).

Here are the top 5 Wellington FL short sale pitfalls that I have experienced over the last several years:

• TIME: Wellington FL short sales can take a long time to be approved, but they can also be denied, there is NO guarantee when it comes to short sales.
• DEFERRED MAINTENANCE: Some Wellington FL short sale sellers abandon their home when they can no longer afford it and some will no longer maintain it.
• BEING SOLD "AS-IS": Most Wellington FL short sales will be sold as-is, which means the seller is going to make zero repairs regardless of the inspection report.
• TITLE ISSUES: Title issues can create problems along the way and can possibly delay closing.
• MISSING ITEMS: Sometimes on the day of closing you may notice some items are no longer there.  Example; appliances, light fixtures, window treatments and hardware.

If you are considering purchasing a Wellington FL short sale I highly recommend hiring a Wellington FL short sale agent who can guide you through the entire process from start to finish.

Start searching now for Wellington FL Short Sales, Bank Owned Homes and Traditional Sales currently for sale.

Originally posted at http://wellingtonfloridashortsale.com/wellington-fl-short-sale-pitfalls-for-buyers/

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

Vacation Homes for Sale in Wellington FL - Find your getaway home here

Florida is one of the most popular vacation destinations in the world and included on this list of desirable Florida hot spots is Wellington.  Home to a thriving equestrian community and only a short drive to the ocean people have been drawn to this western community for decades.

While seasonal rentals have always been a popular choice for some Wellington vacationers others have decided buying a vacation home in Wellington is not only a better option, but also the perfect investment.  If you have never rented seasonally in Wellington the average list price over the last six months has been around $6,500 a month.  This amount isn't that bad considering some of the local hotels charge between $2,000 to $3,000 a week.

With condos starting around $40,000 to luxury estate homes and equine farms with a multi-million dollar price tag Wellington has something for everyone.  This friendly community is by far one of the best places to live and Money Magazine has agreed making it one of their Top 100 Best Places to Live in 2010.  I personally would not want to live anywhere else with my family, except Wellington, we love it here both in and out of season.

Whether you want to stay for a week, a month or even a year you will find yourself right at home in Wellington Florida.  So if you are interested in becoming a full or part-time Wellington resident I will be more than happy to show you around this place I call home.

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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©2011 All Rights Reserved

I'll never forget the time my dad asked the car salesman what the price of a car was and instead of telling my dad he asked how much he planned on spending each month.

At the time I didn't understand this approach, but I was later told by a car salesman it's because the more they sell the car for the more commission they get, so why tell the customer the car is $28,000 when they are willing to spend $30,000? I don't know if this is still the case today or ever was for some dealerships.

However after hearing about this type of sales tactic it does not surprise me that some Wellington FL home buyers are hesitant about sharing their budget or how much they are willing to pay for a home when we sit down to write an offer.

As a REALTOR® it is my job to negotiate the best price for my clients.  After we find the perfect Wellington FL home we'll sit down, review the comparables and write an offer.  I am not going to let any of my clients overpay for a home unless they want too, which occasionally happens even against my advice.  Do you think that car salesman was going to share the comparables with my dad?

So when I ask a home buyer what their budget is or how much they are willing to pay for a home, it's not because I'm trying to squeeze them for every cent like the salesman was trying to do to my dad. In order for me to work to the best of my ability I need to know these important factors so I can find a home that fits their needs, is within budget and negotiate accordingly

If you are looking to buy a home in Wellington FL make sure to find a REALTOR® you can trust, then be open and honest with them.

Read all about what my clients and colleagues have to say about me: Testimonials and Recommendations.

Michelle Gibson REALTOR®
HANSEN REAL ESTATE GROUP INC.
561.333.0446

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©2011 All Rights Reserved

There are several reasons why your Wellington Florida closing might be delayed and this is Part 3 of my series: "Why is my Wellington Florida Closing Delayed?" 

Today I'm going to share another reason why your closing might be delayed.

When there is a Title Defect, which is when there is an unresolved claim against the seller's property, it can delay your Wellington FL closing.  Having a "title defect" also known as a "cloud" on the title prevents a marketable title, which means the property cannot be sold until the title becomes marketable.

Title defects can occur because of forged deeds, undisclosed heirs or mistakes in recording of legal documents are just a few reasons, but the list goes on and on.

Sometimes the defects can be easily resolved while other times they cannot, which regardless of how easy or difficult the title defect is it's most likely going to delay your Wellington Florida closing.

Start your Wellington FL Home Search Now!

Miss Part 1 or 2?  Read them now:  Why is my Wellington Florida Closing Delayed? Part 1: Liens  & Why is my Wellington Florida Closing Delayed?  Part 2: HOA

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