Market Pulse Report - November 2013

Since June of this year, the market has really changed in inventory, and sales. With mortgage rates increasing since May, there's been a little more inventory for buyers. While it's still low, there have been more opportunities for buyers to at least view a few homes before needing to decide on one just because it's flying off the market with multiple offers.

Here's the rundown:


Sales
*Orlando home sales (all home types and all sales types combined) in October 2013 were down 10.46 percent when compared to October of 2012 and down 5.40 percent when compared to September 2013.

*Single-family home sales in the Orlando area decreased by 11.17 percent in October when compared to October of last year. Villa sales decreased by 3.70 percent; condo sales decreased 10.54 percent.

*Of the 2,312 sales in October, 1,484 normal sales accounted for 64.19 percent of all sales, while 479 bank-owned and 349 short sales respectively made up 20.72 percent and 15.10 percent.

*The number of normal sales in October increased by 22.14 percent compared to October 2012, while short-sales decreased 54.26 percent and foreclosures decreased by 19.90 percent.

*The 7,099 pendings in October of this year is a decrease of 23.27 percent compared to the 9,252 pendings in October of last year (and a 1.73 percent decrease compared to the 7,224 pendings last month).

*Short sales made up 52.54 percent of pendings in October. Normal properties accounted for 32.36 percent and bank-owned properties accounted for 15.10 percent.

*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in October were down by 8.88 percent when compared to October of 2012. Throughout the MSA, 2,811 homes were sold in October 2013 compared with 3,085 in October 2012. To date, sales throughout the MSA are 6.90 percent above this time last year.

Median Price
*The median price of all existing homes combined sold in October 2013 — $154,500 — is a 26.12 percent increase from the $122,500 median price recorded in October 2012.

*The median price for "normal” existing homes sold in October is $180,000, an increase of 12.50 percent from the median price of "normal” existing homes in October 2012.

*The year-to-year median price for short sales increased by 19.40 percent to $120,000 in October, while the median price for bank-owned sales increased by 10.08 percent to $95,000.

Inventory
*There are currently 9,470 homes available for purchase through the MLS. The October 2013 overall inventory level is 17.00 percent higher than it was in October 2012; inventory is up 3.76 percent compared to September 2013.

*Year-to-year single-family home inventory is up 15.99 percent; condo inventory is up 15.56 percent.

*The current pace of sales translates into 4.10 months of inventory supply.

Other
*New contracts are down 4.52 percent compared to October of 2012. New listings are up 18.31 percent.

*The Orlando affordability index increased to 189.20 percent in October. First-time homebuyer affordability in October increased to 134.54 percent.

*Homes of all types spent an average of 64 days on the market before coming under contract in October 2013, and the average home sold for 96.18 percent of its listing price.

Market Pulse Report - July 2013

It's exciting to see that there are finally more homes on the market. Still not as many as one would like when dealing with so many buyers, however I'm seeing that there are definitely more options for my buyers.

There's some great news for sellers as well! Single-family home sales INCREASED by almost 18% compared to this time last year and normal sales are making a comeback (finally!) as they showed an increase by 55%. Traditional sales account for 65% of the total sales. This is great news!

The best good news for sellers is that the median price for existing homes has increased.

I love seeing that short sales decreased by almost 30%. Hopefully we'll start getting back to having a regular level of short sales, rather than the influx we've seen over the past 7 years.

Here's the rundown of what's going on in today's market:


Sales
*Orlando home sales (all home types combined) in July 2013 were up 15.28 percent when compared to July of 2012 and up 6.67 percent when compared to June 2013.

*Single-family home sales in the Orlando area increased by 17.89 percent in July when compared to July of last year. Villa sales increased by 19.18 percent; condo sales decreased 1.14 percent.

*Of the 2,836 sales in July, 1,855 normal sales accounted for 65.41 percent of all sales, while 491 bank-owned and 490 short sales respectively made up 17.31 percent and 17.28 percent.

*The number of normal sales in July increased by 55.88 percent compared to July 2012, while short-sales decreased 29.39 percent and foreclosures decreased by 14.76 percent.

*The 7,990 pendings in July of this year is a decrease of 17.66 percent compared to the 9,704 pendings in July of last year (and a 5.34 percent decrease compared to the 8,441 pendings last month). (But at least we're increased from last month!)

*Short sales made up 55.16 percent of pendings in July. Normal properties accounted for 31.40 percent and bank-owned properties accounted for 13.44 percent.

*Sales of existing homes within the entire Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in July were up by 11.90 percent when compared to July of 2012. Throughout the MSA, 3,377 homes were sold in July 2013 compared with 3,018 in July 2012. To date, sales throughout the MSA are 9.09 percent above this time last year.

Each individual county’s monthly sales comparisons are as follows:

• Lake: 25.54 percent above July 2012;
• Orange: 10.30 percent above July 2012;
• Osceola: 4.02 percent above July 2012; and
• Seminole: 13.08 percent above July 2012.

Median Price
*The median price of all existing homes combined sold in July 2013 — $157,000 — is a 24.60 percent increase from the $126,000 median price recorded in July 2012.

*The median price for "normal” existing homes sold in July is $185,000, an increase of 10.45 percent from the median price of "normal” existing homes in July 2012.

*The year-to-year median price for short sales increased by 13.64 percent to $125,000 in July, while the median price for bank-owned sales increased by 16.99 percent to $105,000.

Inventory
*There are currently 8,099 homes available for purchase through the MLS. The July 2013 overall inventory level is 0.09 percent lower than it was in July 2012; inventory is up 6.34 percent compared to June 2013.

*Year-to-year single-family home inventory is down 2.15 percent; condo inventory is up 2.53 percent.

*The current pace of sales translates into 2.86 months of inventory supply.

Other
*New contracts are up 1.83 percent compared to July of 2012. New listings are up 17.78 percent.

*The Orlando affordability index decreased to 180.54 percent in July. First-time homebuyer affordability in July decreased to 128.38 percent.

*Homes of all types spent an average of 62 days on the market before coming under contract in July 2013, and the average home sold for 96.69 percent of its listing price.

Market Pulse Report - June 2013

The most important points of today's market seem to reflect more of the same, but then some new items:

• Inventory is down from this time last year, but increased by 400 homes compared to last month
• Prices have increased steadily the past few months 
• Listing and sales of traditional homes have increased (this is the best news! - I think we were all getting sick and tired of all the short sales).

For a complete list of homes available in Central Florida register and start searching at www.JenelleFerrer.com. 

Market Pulse Report - May 2013

Not much has changed since the April Market Pulse Report, but I did have a successful closing last Friday. It was a bank owned property that we won in a bidding war after the highest offer backed out. We were able to close without any major obstacles and most importantly, my buyers were able to obtain the house they wanted.  

Two major items to note in the list below of stats are the inventory numbers continually low and the months of inventory supply are at an incredibly low rate of 2.68 months. 

Translation: there are not a lot of properties for sale and the ones that are are flying off the market. 

So the rundown for the real estate market is....drum roll please....

Sales

*Orlando home sales (all home types combined) in April 2013 were up 10.39 percent when compared to April of 2012 and down 0.77 percent when compared to March 2013.

*Single-family home sales in the Orlando area increased by 15.00 percent in April when compared to April of last year. Villa sales decreased by 15.74 percent; condo sales decreased 10.49 percent.

*Of the 2,689 sales in April, 1,566 normal sales accounted for 58.24 percent of all sales, while 553 bank-owned and 570 short sales respectively made up 20.57 percent and 21.20 percent.

*The number of normal sales in April increased by 41.72 percent compared to April 2012, while short-sales decreased 20.17 percent and foreclosures decreased by 10.37 percent.

*The 8,785 pendings in April of this year is a decrease of 12.83 percent compared to the 10,078 pendings in April of last year (and a 0.16 percent decrease compared to the 8,799 pendings last month).

*Short sales made up 59.10 percent of pendings in April. Normal properties accounted for 28.84 percent and bank-owned properties accounted for 12.05 percent.


Median Price

*The median price of all existing homes combined sold in April 2013 — $145,000 — is a 23.93 percent increase from the $117,000 median price recorded in April 2012.

*The median price for "normal” existing homes sold in April is $173,584, an increase of 10.56 percent from the median price of "normal” existing homes in April 2012.

*The year-to-year median price for short sales increased by 20.53 percent to $114,500 in April, while the median price for bank-owned sales increased by 12.25 percent to $95,300.

Inventory

*There are currently 7,202 homes available for purchase through the MLS. The April 2013 overall inventory level is 16.66 percent lower than it was in April 2012.

*Single-family home inventory is down 20.43 percent; condo inventory is down 3.06 percent.

*The current pace of sales translates into 2.68 months of inventory supply.

March 2013 Pulse Report

It's been quite some time since I last reported on the market. The main point has not changed: INVENTORY has decreased and PRICES have gone up steadily.

Here's a quick overview of the numbers:

You'll note that the days a home is on the market has been continuously less than 90 days. I have seen this time and again. I show a property that has been on the market for 1-10 days, and then there are multiple offers and it goes into pending.

If you like a property, do not hesitate because you just very well may lose it. A positive example of this was a buyer of mine finding a home she liked. She waited the weekend and it was under contract. I contacted the agent and told her that if anything changed, please let me know ASAP as my buyer wanted the property and didn't realize how quickly it would get snatched up.

I kept in touch with that agent, and fortunately for us, that buyer did fall through and we stepped in as the main buyer. We're waiting for the bank approval and we will be able to close in 45 days.

Inventory
*There are currently 7,183 homes available for purchase through the MLS. The February 2013 overall inventory level is 22.37 percent lower than it was in February 2012.

*Single-family home inventory is down 25.40 percent; condo inventory is down 8.98 percent.

Sales
*Orlando home sales (all home types combined) in February 2013 were up 11.54 percent when compared to February of 2012 and up 9.33 percent when compared to January 2013.

*Single-family home sales in the Orlando area increased by 16.68 percent in February when compared to February of last year. Villa sales increased by 6.06 percent; condo sales declined 6.69 percent.

*Of the 2,203 sales in February, 1,195 normal sales accounted for 54.24 percent of all sales, while 521 bank-owned and 487 short sales respectively made up 23.65 percent and 22.11 percent.

*The number of normal sales in February increased by 51.07 percent compared to February 2012, while short-sales decreased 24.73 percent and foreclosures decreased by 2.98.

*Short sales made up 61.79 percent of pendings in February. Normal properties accounted for 25.96 percent and bank-owned properties accounted for 12.25 percent.

Market Pulse Report- August 2012

 
Overall, the same remains: inventory is down again and continues to decline. If you like a home, don't wait! One day, may really be too late. Here's the quick points on the month overview:

Sales

*Orlando home sales (all home types combined) in August 2012 were up 5.36 percent when compared to August of 2011 and up 7.07 percent when compared to July 2012.

*Single-family home sales in the Orlando area increased by 6.03 percent in August when compared to August of last year. Villa sales increased by 1.59 percent; condo sales increased by 4.72.

*Of the 2,634 sales in August, 1,265 normal sales accounted for 48.03 percent of all sales, while 610 bank-owned and 759 short sales respectively made up 23.16 percent and 28.82 percent.

*The number of normal sales in August increased by 23.29 percent compared to August 2011, while short-sales decreased 7.78 percent and foreclosures dropped 6.30 percent.

*The 9,362 pendings in August of this year is a decrease of 1.47 percent compared to the 9,502 pendings in August of last year.

*Short sales made up 69.66 percent of pendings in August. Normal properties accounted for 19.39 percent and bank-owned properties accounted for 10.95 percent.



Median Price
*The median price of all existing homes combined sold in August 2012 — $120,550 — is a 5.10 percent increase from the $114,700 median price recorded in August 2011.

*The median price for "normal” existing homes sold in August is $158,230, an increase of 2.08 percent from the median price of "normal” existing homes in August 2011.

*The median price for short sales increased by 19.05 percent to $110,000, while the median price for bank-owned sales increased by 4.71 percent to $85,000.

Inventory
*There are currently 8,128 homes available for purchase through the MLS. The August 2012 overall inventory level is 19.16 percent lower than it was in August 2011.

*Single-family home inventory is down 23.96 percent; condo inventory is up 11.52 percent.

*The current pace of sales translates into 3.09 months of inventory supply.

Other
*Homes of all types spent an average of 80 days on the market before coming under contract in August 2012, and the average home sold for 96.26 percent of its listing price.

Market Pulse Report: June 2012

INVENTORY IS DOWN AGAIN!!! We dropped another 400 homes from inventory and we are down to 8243 homes.  

I've been saying this every month hoping it will change the following, but believe it or not: this is the lowest inventory level since 2006 when we were in a boom!  

In this market, if you see a house and like it, do not hesitate in letting me know so we can write an offer!  

The average days on market dropped again as well, another confirmation of the changing environment!  It is no longer a time for low-ball offers!!  

Here's the Market Pulse Link   http://www.orlrealtor.com/resource/resmgr/Images_Market_Pulse/MarketPulse062012.pdf

Market Pulse Report: May 2012

The market has definitely not been for the faint of heart. I have clients that I have been working with for more than 7 months; some under contract and others still searching for a home. 

We're beyond the "perfect home" and simply at trying to find "a" home. 

Why? 

With inventory dropping every single month, it has left a scarcity of properties available. Most of which have several offers a few days into being listed on the market. It's fierce and competitive. Those under contract, the delays from the bank have been anywhere from 4 months to over 8. 

It's a long wait, but perseverance and patience are the only ways that buyers are becoming homeowners in this market. 

Check out the stats in today's market:

Sales

*Orlando home sales (all home types combined) in April 2012 were down 4.50 percent when compared to April of 2011 and down 3.37 percent when compared to March 2012.

*Of the 2,353 sales in April, 1,063 "normal” sales accounted for 45.18 percent of all sales, while 598 bank-owned and 692 short sales respectively made up 25.41 percent and 29.41 percent.

*The number of "normal” sales in April increased by 25.95 percent over April 2011, while short-sales increased 10.02 percent and foreclosures dropped 39.66 percent.

*The 10,078 pendings in April of this year is an increase of 1.24 percent compared to the 9,955 pendings in April of last year.

*Short sales made up 67.78 percent of pendings in April. Normal properties accounted for 19.47 percent and bank-owned properties accounted for 12.75 percent.

Median Price

*The median price of all existing homes combined sold in April 2012, $116,000, is a 10.48 percent increase from the $105,000 median price recorded in April 2011.

*The median price for "normal” existing homes sold in April is $158,000, is a decrease of 2.23 percent from the median price of "normal” existing homes in April 2011.

*The median price for short sales increased by 5.56 percent to $95,000, while the median price for bank-owned sales increased by 6.01 percent to $84,700.

Inventory

*There are currently 8,642 homes available for purchase through the MLS. The April 2012 overall inventory level is 24.72 percent lower than it was in April 2011.

*Single-family home inventory is down 26.58 percent; condo inventory is down 8.04 percent.

*The current pace of sales translates into 3.67 months of inventory supply.

Other

*The Orlando affordability index decreased to 254.69 percent in April. First-time homebuyer affordability in April decreased to 181.11 percent.

*Homes of all types spent an average of 87 days on the market before coming under contract in April 2012, and the average home sold for 95.42 percent of its listing price.

*New contracts are down 15.86 percent compared April of 2011. New listings are up 1.21 percent.

Market Pulse Report: April 2012

The Central Florida market has continued to make it difficult for buyers to find the home they want and actually get their contract accepted. Inventory is at an all time low with only 8,666 homes available for sale. It's an advantage to Seller's that have been wanting to sell their home because offers are being placed on those HOT properties at an alarming rate. I've personally experienced multiple offer scenarios at least in 5 cases just this month alone. 

I've even noticed an increase in offering above asking price just to attempt to make a more tempting offer to the seller; however, it seems the competition is thinking the same thing.

Here is the latest information on an accurate stance in today's market:

Sales

*Orlando home sales (all home types combined) in March 2012 were up 17.82 percent when compared to February of 2012 and down 10.95 percent when compared to March 2011.

*Of the 2,327 sales in March, 942 "normal” sales accounted for 40.48 percent of all sales, while 617 bank-owned and 768 short sales respectively made up 26.51 percent and 33.00 percent.

*The number of "normal” sales in March increased by 23.62 percent over March 2011, while short-sales increased 20.75 percent and foreclosures dropped 49.22 percent.

*The 9,748 homes pendings in March of this year is an increase of 2.50 percent compared to the 9,510 pendings in March of last year.

*Short sales made up 69.07 percent of pendings in March. Normal properties accounted for 17.90 percent and bank-owned properties accounted for 13.03 percent.

Median Price

*The median price of all existing homes combined sold in March 2012, $115,000, is a 12.94 percent increase from the $102,000 median price recorded in March 2011.

*The median price for "normal” existing homes sold in March is $155,000, is an increase of 3.33 percent from the median price of "normal” existing homes in March 2011.

*The median price for short sales decreased by 0.73 percent to $102,000, while the median price for bank-owned sales increased by 5.25 percent to $84,200.

Inventory

*There are currently 8,666 homes available for purchase through the MLS. The March 2012 overall inventory level is 30.85 percent lower than it was in March 2011.

*Single-family home inventory is down 31.95 percent; condo inventory is down 20.78 percent.

*The current pace of sales translates into 3.72 months of inventory supply.

*New contracts are down 15.93 percent compared March of 2011. New listings are down 18.45 percent.

Other


*Homes of all types spent an average of 97 days on the market before coming under contract in March 2012, and the average home sold for 94.83 percent of its listing price.

Market Pulse Report: March 2012

Sales
*Orlando home sales (all home types combined) in February 2012 were down 15.19 percent over February 2011.

*Single-family home sales in the Orlando area decreased by 2.82 percent in February when compared to February of last year. Condo sales decreased by 34.27 percent; duplex, town home, and villa sales decreased by 27.31 percent.

*Of the 1,854 sales in February, 738 "normal” sales accounted for 39.81 percent of all sales, while 498 bank-owned and 618 short sales respectively made up 26.86 percent and 37.98 percent.

*The number of "normal” sales in February increased by 29.02 percent over February 2011, while short-sales increased 20.00 percent and foreclosures dropped 54.02 percent.

*The 9,348 homes pending closing in February of this year is an increase of 1.37 percent compared to the 9,223 pendings in February of last year.

*Short sales made up 69.84 percent of pendings in February. Normal properties accounted for 17.02 percent and bank-owned properties accounted for 13.14 percent.

Median Price
*The median price of all existing homes combined sold in January 2012, $108,000, is a 13.80 percent increase from the $94,900 median price recorded in January 2011.

*The median price for "normal” existing homes sold in February is $150,000, is a decrease of 3.23 percent from the median price of "normal” existing homes in February 2011.

*The median price for short sales increased by 5.26 percent to $100,000, while the median price for bank-owned sales increased by 8.11 percent to $80,000.

Inventory

*There are currently 9,253 homes available for purchase through the MLS. The February 2012 overall inventory level is 31.36 percent lower than it was in February 2011, and almost equal to what it was in January 2012.

*Single-family home inventory is down 32.68 percent; condo inventory is down 18.46 percent.

*The current pace of sales translates into 4.99 months of supply.

Other
*The Orlando affordability index decreased to 271.61 percent in February. First-time homebuyer affordability in February decreased to 193.14 percent.

*Homes of all types spent an average of 96 days on the market before coming under contract in February 2012, and the average home sold for 93.14 percent of its listing price.

Market Pulse Report: October 2011

Here's a little overview of what's going on in Orlando:

Main 

• Orlando home sales in September 2011 were down 13.48 percent over September 2010.
• Of the 2,054 sales in September, 790 “normal” sales accounted for 38.46 percent of all sales, while 533 bank-owned and 731 short sales made up 61.54 percent.
• The number of “normal” sales in September increased by 18.44 percent over September 2010, while short-sales increased 25.82 percent and foreclosures dropped 52.66 percent.
• The 9,369 homes pending closing in September of this year is an increase of 7.53 percent compared to the 8,713 pendings in September of last year.

Median Price

• The median price of all existing homes combined sold in September 2011, $115,000, is a 9.52 percent increase from the $105,000 median price recorded in September 2010.
• The median price for “normal” existing homes sold in September is $153,500, a decrease of 2.22 percent from the median price of “normal” existing homes in September 2010. The median price for bank-owned sales is $82,000 and the median price for short sales is $100,000.

Inventory

• There are currently 9,931 homes available for purchase through the MLS. The September 2011 inventory level is 39.29 percent lower than it was in September 2010.
• Orlando’s condo inventory is 50.16 percent lower than it was in September 2010.
• The current pace of sales translates into 4.83 months of inventory supply.

Other

• The Orlando affordability index increased to 250.11 percent in September. First-time homebuyer affordability in September increased to 177.87 percent.
• Homes of all types spent an average of 100 days on the market before coming under contract in September 2011, and the average home sold for 93.80 percent of its listing price.

The problems with short sales...

This article rings especially true in today's market. I am seeing more and more delays in short sale transactions and then falling through. This frustrates not just first time homebuyers but anyone really looking to move.

As much as I can, I try to steer clear of these transactions to best assist my buyers. Short sales (ironic name) can be a very lengthy process. I've been under contract with 3 for over 3 months without a response from the bank. This can be frustrating to not just the buyers, but the agents and sellers as well.


Short sales lose appeal among first-time buyers

WASHINGTON – Sept. 29, 2011 – Short sale transactions are becoming less popular among first-time homebuyers. Buying a home in a short sale transaction may offer a huge bargain – sale prices average 27 percent lower than non-distressed properties – but more first-time home buyers say the processing delays aren’t worth the trouble.

First-time buyers’ share of all short sales dropped to 39.7 percent of transactions in August – a three-month drop and the lowest share ever recorded for first-time homebuyers, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. In November 2009, first-time homebuyers’ share of short sales reached a peak of 54.1 percent of all short sale transactions.

With bargain deals, why are short sales losing their appeal?

Buyers complain that short sale transactions take too long to close, with approval times often taking several months after a buyer submits an offer. Some buyers, frustrated at the delays, place offers on multiple properties with plans to close on whichever one is approved fastest.

The average time on market for short sales is 16.6 weeks, and the majority of that time is spent waiting for short sale approval, the HousingPulse Tracking Survey found.

Source: “First-Time Buyers Losing Interest in Short Sales,” RISMedia (Sept. 26, 2011)

© Copyright 2011 INFORMATION, INC. Bethesda, MD

More home sellers paying full real estate commissions

FORT LAUDERDALE, Fla. – Sept. 22, 2011 – Someone selling a home is more likely to pay a full real estate commission today than during the housing boom, when discounts ruled and most properties sold quickly.

Commissions have steadily increased in recent years, despite a rash of foreclosures and falling home values that have left sellers with little spare cash to pay a broker.

The average commission nationally at year-end 2010 was (higher than) 2005, according to Real Trends, a publishing and consulting company based in Castle Rock, Colo.

In the housing frenzy of 2000 to 2005, sellers often questioned the value of agents. The number of brokers ballooned, and the competition for listings led some agents to cut commissions.

But when the housing market soured beginning in 2006, agents couldn’t leave the profession fast enough, and it became much harder to sell homes. Agents say sellers have since grown more appreciative of what they do.

“Sellers are very happy to pay the full commissions, even though they’re getting less money for their homes,” said Claire Sheres of Coldwell Banker in south Palm Beach County, Fla.

“They’re not quibbling …” added Scott Agran, head of Boca Raton, Fla.-based Lang Realty. “They’re saying, ‘What can you do to sell my house for the highest price and in the quickest amount of time?’ “

Agents now have to spend more time and money marketing the properties, and their jobs aren’t limited to finding buyers and securing contracts, said Beverly Rothstein of the Christopher White Group in northwest Broward County.

Agents also have to help arrange financing and title insurance to keep the sales moving toward the closing table.

“No one really has given me any grief about commissions,” Rothstein said. “In this market, your best friend is your real estate agent.”

Robin Craig didn’t think she’d need an agent to sell her two-bedroom cottage in Fort Lauderdale’s Victoria Park. So in May she created a website and flyer and stuck a sign in her front yard.

But for Craig, a 43-year-old accountant, negotiating with prospective buyers’ real estate agents was challenging, and so was coordinating the many showings. Three weeks later, with the house still unsold and a deadline looming for her to move to a new job in Atlanta, Craig hired Tim Singer of Coldwell Banker.

She said she’ll happily pay the … commission on the $529,000 listing.

“I underestimated the amount of time that was involved,” she said. “And he’s got market data and experience that I don’t have.”

Agents say they typically avoid showing homes that owners are selling themselves. Some of the sellers are hostile toward agents and have no intention of paying a commission to the buyer’s broker, Singer said.

Jon Holbrook, president of Delray Beach, Fla.-based BuyOwner.com, said he encourages his clients to work with buyers’ agents and come to terms on some sort of compensation, should a sale result.

Still, with dwindling home equity an issue in South Florida and across the country, sellers would be wise to try selling their homes on their own, Holbrook said. Those who don’t end up losing much of their profit to commissions. “It’s painful,” he said.

Many homeowners who bought during the housing boom are “underwater,” owing more than the properties are worth.

Nearly half the homes with mortgages in Broward County – more than 205,000 properties – are underwater, according to a second quarter report Tuesday from CoreLogic, a California research firm. In Palm Beach County, 42 percent of the homes with mortgages, or more than 137,000 properties, are worth less that what’s owed.

Some of these homeowners will pay the real estate commissions out of their own pockets. But many are falling into foreclosure or completing short sales, in which they unload the properties for less than they owe, with the bank’s blessing. In those transactions, the sellers don’t have to worry about the commissions, which are paid by the lenders.

Banks tend to hold down commissions on short sales and foreclosures to minimize their losses, but some agents say lenders are paying the full (amount) so that the agents will actively market the homes.

“These homes aren’t selling by themselves,” said Douglas Rill, a longtime broker at Century 21 America’s Choice in West Palm Beach.

Copyright © 2011 the Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune News Service.

Short Sales, Long Waits

USA Today came out with an article today that describes the exact frustration so many buyer's have experienced and Realtors avoid.

While a great deal is to be had with Short Sale pricing, it's sometimes not even worth the frustration and hassle of the process.

Many buyers are willing to wait out the process for a bargain, but it doesn't guarantee a closing. Why? Because the bank ultimately decides. If they can't clear a title or decide they're losing to much, they can back out according to the contract at any time.

I've seen closings anywhere from 4 months to 11 months.

Read the article here!