Robins and Moving Vans--Winter is Over !

Being a Realtor can be a pretty hard job, there are long hours and disappointments, punctuated by the occasional sale—which these days is a “drop everything emergency” and “get the deal to close moment”.  But the business has its quiet times too.  And so it happened that I was fishing in Lemon Bay this week with a couple of potential clients, and they asked about the “market”.  I was happy to share the news, the housing market’s long, cold winter may finally be in a springtime thaw.

New data show that the price declines we've all seen are easing in big cities, and sales of new homes improving.  Many economists see the easing of foreclosures as key, since the glut of these properties being sold at a discount has been a significant drag on both existing and new home prices.

The Sarasota local daily paper had a front-page story on how the “pending” sales were way up.  Let me say that I personally have had two homes under agreement (pending) for nearly 6 months.  The offers came in the “owners” agreed to the price, but the banks (who need to approve the deals) have been sitting on their hands for weeks and weeks.  So “pending” is not the leading indicator it once was in better times, back then a pending deal took about 1 month between the accepted offer and the close of escrow and occupancy of the home.  This is like saying the number of "engagements" is way up, so the weddings will follow--but maybe not...

“The foreclosure market is drying up.  Banks may be shy to load the market with their inventory, or they are waiting for the Administration to require them to allow the former owners to rent the houses back.  In any case, if it continues, it will likely mean that we’ve either seen a bottom—or have passed a bottom—in prices because of limited supply and still strong demand.”

The US economy overall has been improving, with unemployment, retail sales, corporate profits and other measures showing steady if unspectacular gains. Housing has been one of the last holdouts, but analysts note that prices have stabilized and sales volume has been gaining.

Notices of default, which are the first step in the foreclosure process, fell in the first three months of the year, a 17.6 percent drop from the same period last year.  Banks still retain many foreclosed properties on their books, and some analysts have predicted that housing prices could weaken again if lenders dump these properties into the recovering market. But any long-feared “second wave” seems to be increasingly unlikely.

Low interest rates and the availability of bargain-priced properties are drawing more buyers into the market.  Although don’t think that the low price mortgages are all that easy to get.  You still have to pretty much prove to the lender that you don’t need the money, in order to get them to consider you as a borrower.

Several factors continue to hold back a major turnaround in housing, including a weak job market, tight mortgage lending standards and the huge number of homeowners who can't sell the home they no longer want to live in--these are the folks who would like to retire to Florida or elsewhere but they owe more on their mortgages than their homes are worth, leaving them essentially stuck in their properties. And until we get a major housing recovery,  the broader economy, and the Florida market, will suffer.

New-home sales nationally fell 7.1 percent in March from the previous month, the Commerce Department said Tuesday, but don't worry about that too much, it was partly because Commerce revised February sales figures up significantly. Even though the figure for March was the lowest since November, overall sales of new homes are up about 16 percent for the first three months of the year compared with 2011, the department said. The report helped boost the Dow Jones industrial average 74.39 points to 13,001.56. That improvement means that new-home sales in April and May will probably be stronger than last year, which were the worst on record.

But just as the Robins portend the coming of Spring, and the Crocus tells a gardener that it’s time to get the seeds in the ground, moving vans tell more about the health of a real estate market than any of the “cooked books” the industry tries to sell you.  And there are moving vans on the highways now.  My opinion: it looks like this Nuclear Winter is about over.

Dane Hahn is a real estate professional in Englewood and the SW coast of Florida.  You can reach him at dane.hahn@gmail.com or by phone at 941-681-0312. On the web see him at http://www.danesellsflorida.com/

Flipping Real Estate, Legal or Illegal?

A couple of weeks ago I had several readers ask about flipping and why it was illegal.  I told them "Flipping is legal unless there is fraud", but promised I would try to make some sense of what’s going on with the “flipping trials” that have been on the front pages of the local papers. As the testimony unwinds, the local press has painted legal and illegal flipping with the same brush, and cast a shadow across the concept of buying and reselling homes for profit, implying that it was illegal.

Any time you buy and sell a house (usually without intending to live there)—that’s called a flip. It’s either a fast flip or a slow flip, but it’s still a flip no matter how you look at it.  The media in cases where an investor bought a property and sold it a short time later uses the term “flipping”.  That’s just doing business.  It’s legal.  And it happens every week, even in depressed markets.

But an illegal flip is just like a legal flip except it includes some mis-statments of fact (the fraudulent step) in one of the many documents that buyers and sellers have to sign.  The guys who are on trial right now made a practice of moving properties (often with a little fraud) and got away with it, over and over.  What they were doing at the time might have seemed like everyday business, but once they got caught their illegal short-cuts became a news story.

Again, flipping houses is not illegal. Fraud is illegal. So what kind of fraud did these guys get in trouble over? Here are a few possibilities:

1. Getting appraisers to raise the appraised value of a property, often double or triple the value, resulting in the lender (being duped into) making larger loans for the flipper or their buyers.  This step allows the buyer to overpay for property (and maybe pocket the difference).

2. Arranging down payments for a buyer, often from a third party—sometimes from a loan company or maybe even from the seller—resulting in an unqualified buyer buying a house that they couldn’t afford and shouldn’t be approved for.  This works best when the value of real estate is escalating rapidly.  The buyer can live there, or sell the house and the seller and flipper (might fraudulently) split the profits.

3. Falsifying loan documents required by banks to get a buyer approved, documents such as pay stubs, social security numbers, verification of employment, personal tax returns, verification of funds on deposit, etc. Resulting in a fraudulent application.  This may even include stolen identification numbers buying homes, and dumping them to a “flipper”.  When the stolen ID numbers are those of a dead person, the county discovers the default when the taxes come due, and the flipper has resold the home long before any of this is discovered.

4. Using straw men (people who appear to be buyers, but are standing in for the buyer) is legal and often done in real estate, especially if the actual buyer is a celebrity or high profile sports star, who might have to overpay if his identity were known to the seller.  But flippers occasionally use “straw men” who are paid to use their ID's, and sign the documents; but once the sale is made to the straw man, he immediately resells the property to the “flipper” for a profit.  The flipper pays off the straw man and keeps the profit.  This “launders the chain of title, and is a frequently abused type of fraud; which once discovered leads to an FBI investigation.  A straw man can be a stranger, an illegal alien (with phony papers) or even a relative of the flipper.  Flippers may also be illegal aliens, and probably will use fraudulent tax and social security numbers.

5. Back dating lease agreements to prove a track record of the tenant making payments on time and a year or more occupancy, even though that tenant just moved in. This is very common. Closing companies and banks/mortgage companies want the loan to go through and the sale to happen.  They used to say, “We do it all the time” but they don’t say that anymore.

A few years ago the FBI was following several (bald faced fraudulent) deals on broken-down commercial buildings in which the flipper makes a fair offer to purchase, and the seller accepts; then the flipper gets a fraudulent high appraisal on the property and a high dollar loan for the appraised price, at closing the flipper pays the seller the agreed amount and keeps the excess of the money from the bank (this can be millions). This requires the closing company to aid and abet the swindle.  Sometimes really bold flippers will do a second deal on that same property, with new very high appraisals.  Once they have the money, these guys usually leave the area, with the loan in default.  Some of the more brazen might burn the building for the insurance and to eliminate the evidence.

Illegal flipping occurs anytime the deal is different than what is represented on the contract presented to the lender. Each loan is based on the stated facts, so if even one fact is misrepresented, it’s fraud.  Regardless of how many people participate in the process.  If you are thinking all this makes sense, just remember, fraud against a bank or lending company is investigated and enforced by the FBI.

Legal flipping occurs when you buy a house, and either fix it up or simply choose to resell it.  If you’re buying and rehabbing houses, document all the work you do.  Keep a file on what you’ve done and spent to make a case on how you raised the value so quickly. You should also document your work using before and after photos.  Good records will help with everyone you deal with from other contractors to bankers to the IRS.

Dane Hahn is a real estate professional practicing in the Englewood, Florida Area.  Reach him at 941-681-0312, or by email at dane.hahn@gmail.com.  See him on the web at http://www.danesellsflorida.com/

Common Risks Involved in Real Estate Investments in Australia

While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they've probably lost a few fortunes in real estate along the way. This is a risky business and every property purchased doesn't always pan out to become a successful investment. There are many risks involved in real estate investing and you would be going to battle unprepared if you didn't take a moment to carefully study these risks and work to avoid them when planning your property investment strategy.

Unfortunately, there are very few one size fits all risks for real estate investing, as each type of investing is inherently different. This means that each type of real estate investment will involve a new set of risks. Below you will find a brief overview of different styles of investing and the common risks that are involved in each.

Rental Properties

This type of investing offers some risks that are unique and some that are also risks when investing in properties that are lease-to-own or rent-to-own as well. First and foremost is the risk of failing to make a profit. If the property in question cannot achieve an adequate monthly income to cover the expenses of operating the property then it is not a solid investment.

Other risks include the risk of getting bad tenants. This is particularly hard on first time investors. Bad tenants are costly and in some cases destructive (which leads to even greater expense). Vacancies are another risk for rental properties. These properties are only costing money as they sit empty rather than earning money as they were intended. Short turnovers are in your best interest as are long-term tenants.

"Flipped" Properties

This is one of the most enjoyable types of property investments for many 'hands on' investors. This allows the investor to roll up his or her sleeves and take an active role in creating the masterpiece that will eventually bring in serious revenue (at least that is the hope). This is also one of the riskier investments, particularly when trying to turn a profit in what is known as a buyer's market.

The risks are simple but often overlooked and they can have a significant impact on the overall success or failure of the project. First of all, the biggest risk is in paying too much for the property. Other risks include underestimating the costs of repairs, over estimating the ability of the investor to do the work him or herself, taking too much time, experiencing a down turn in the housing market, making the wrong judgment call for the neighbourhood, becoming overly ambitious, and getting greedy. Sometimes it is much better to walk away with a lesser profit than to end up losing money by holding out.

Personal Residence

Keep in mind that your personal home is essentially an investment. The intention is that your home will gain in value over time and that equity in your home will build as you age. There are risks involved in this transaction as well. Buying a home that is in a 'borderline' area or one that is not showing obvious signs of growth are one of the biggest risks. This puts your home in the position to lose rather than gain value. This can make your home a burden rather than the investment it was intended to be. Other risks involve is becoming involved in a loan situation that is not at all beneficial (such as an adjustable rate mortgage or an unreasonable balloon payment).

Perhaps the biggest risk of all when purchasing a personal residence as an investment is failing to get a proper inspection that could rule out potentially costly and even dangerous problems within the home your purchase for you and your family. Toxic mould is one problem that comes easily to mind that most proper home inspections would almost immediately rule out. Others include structural problems that are costly to repair and dangerous to leave in disrepair. Each of these risks should be considered before an offer is made on any property.

For those seeking to turn impressive profits in short order, real estate is one way in which this can be accomplished. It is in your best interest however to be aware of the risks that are involved and take careful steps to minimize those risks. Taking these steps now may cost a little more on the front end but in many cases the pay off for doing so well outweigh the expenses.

Real Estate Edge: The Magical Mortgage Market is Open For Business

Real Estate Edge: The Magical Mortgage Market is Open For Business: What can I say about the market this week?   How about this, things are picking up.   People are really thinking about buying again, and the...

The Magical Mortgage Market is Open For Business

What can I say about the market this week?  How about this, things are picking up.  People are really thinking about buying again, and the data supports these assertions.  The down side is the banks and mortgage companies are still shell shocked from the last time they made mortgage money available to all comers.

Oh, we’ll see easy money again, there will come a time when the mortgage guys will once again check your pulse and if there is a slight heart beat, you’ll be approved for a loan, maybe bigger than you even thought possible—just not in this decade.  As they say, “Once burned, twice shy…”

No, in this decade you’ll have to over-qualify for any money you want to borrow.  Mainly you’ll have to prove that you really don’t need a loan, and after you do that, the doors of the magical mortgage market will open wide to you.  But first you have to show you have strong income and plenty of tenure on your job, and very few recurring expenses (like student loans and the like).  You’ll need to show your credit is solid, and if you do that—you’ll most likely qualify.  Yes, there are lots of "ifs," but it's one of the best times in America to buy a home. And it won't last forever.

In Englewood foreclosures and short sales are still selling at deep discounts – they accounted for 34 percent of February sales.  The Multiple Listing Service here in town is like a Goodwill bargain basement of homes, and I can tell you, today we are open for business.

But the buyers are not just families, investors who normally don’t need a loan to make purchase-- snatched up 64.5 percent more homes in 2011 than in 2010 and now account for nearly one in every four homes sold, according the National Association of Realtors.

Fortunately, as buyers we have Canadians and Europeans who are thrilled that their money is growing against the rapidly inflating dollar.  So our second home market is coming back too. Vacation and retirement buyers are jumping on the second home bandwagon. They pushed vacation/second home sales up 7.0 percent in 2011.

But based on my own personal memory, this market is still pretty quiet.  In fact owner-occupied purchases fell 15.5 percent last year.

Forecasts for a housing recovery are all about when we’ll see the market recovery, not if. You may have seen the stock market prices of the largest home builders all go up after they announced that they had a strong January and February, and go back down in March and April when they announced that there were more contract cancellations than they had ever seen before.

Remember that today the available mortgage rates are near record lows (as long as you qualify) and home prices may finally be within reach of many consumers who want to buy now. If you feel renting has merit and you want to rent for the next few years, I have bad news, industry wisdom says that rental rates will be escalating as demand has increased, even in the face of more units coming on the market. Plus, if you qualify for a mortgage, your monthly payment may well be less than renting.

One last caveat, if you are thinking of buying, be sure to check your credit score before you apply for a loan.  You can access your own credit report from the only federally approved source of free reports, AnnualCreditReport.com, to make sure your credit is mortgage-worthy. Don't get taken by sound-alike websites that offer you "free" credit reports that are only "free" after you buy a credit monitoring service.
And remember too, homeownership comes not only with a mortgage but also with insurance, taxes, utilities, and maintenance. Include them in your budget to determine what is truly affordable.  We call the base figure PITI (Principle, Interest, Taxes and Insurance), but maintenance, HOA fees and lawn and pool fees also add in there.

If you feel some pressure to get in the market at today's affordable prices and low interest rates, remember if you move too quickly that too could be a mistake. Take the time to obtain a home inspection, learn the neighborhood, investigate the school district and buy only what you need.  Remember, most of the homes that were lost in the market collapse were bought with the largest amount of money the lender would lend. Make your next purchase affordable.

Dane Hahn is a real estate professional serving Sarasota and Charlotte Counties from Englewood.  You can reach him at dane.hahn@gmail.com or 941-681-0312.  See him on the web at www.danesellsflorida.com

Buying Your Dream Home in Australia

Even though it’s not easy for everyone to buy a home, it is in fact easier than ever to get a home these days with most lending agencies and banks being more liberal than ever with providing home loans and mortgages. Even if you don’t have a lot of capital or a lot of money to put down, you can still get the home of your dreams at a very affordable price.

A lot of us think that buying a home is a tough process, needing a large down payment, although this isn’t always the case. Buying a home largely depends on your budget. If you put a down payment on your home purchase, it will go towards your overall purchase. The more money you put down on a home when you purchase, the lower your monthly payments will be.

Those of us who don’t own a home live in rental houses and apartments. This can be a worthwhile solution, although you are still paying money towards your housing that you could instead be putting towards a home of your own. Owning a home is a dream for many of us, especially when it comes to that dream home that we all hope to own one day. Apartments and homes are great to rent - although most these days will cost you just as much as a mortgage payment - which doesn’t make any sense at all.

Instead, you can easily convert your rental payments into monthly instalments towards your own home. All across the United States, you can find of lot of banks and lenders that offer easy to get loans for purchasing your own home or real estate property at low interest rates. With a lot interest rate, you can get the home of your dreams and enjoy low monthly payments.

Keep in mind; you need to choose a loan plan that’s best for you. You can go through bank, through a lender, or use a service online. There are many different ways that you can go, although real estate agents seem to be the most common now days. Good real estate agents will be more than willing to help you get a great deal on the home, at prices that are right for you. Anytime you buy a house, you should always plan ahead, get yourself a real estate agent, and then pursue your dream home.

If you plan your budget and take things one step at a time, you’ll be closer than you think to the home of your dreams. If you choose to keep renting and pay money toward something you don’t own - the home of your dreams will continue to slip away. Take action now and stop renting - find the home of your dreams and put your money towards owning it instead.

Take care,
Real Estate Investment Australia Team

Back to the Big Box House

Let’s face it; a house is just a big box that holds you and all your stuff.  Outside the box you want it to be watertight, wind resistant and look nice on it’s lot.  Inside the box you want the conveniences necessary to your family, enough room for the family and your stuff, and to be able to control the temperature, operate the plumbing, lighting and kitchen--but really all the rest is design and the special needs of the owner.

So when people ask me if a house is move-in ready—I almost always tell them, “it depends”.  I think a house is move in ready if you only have to paint the walls and change out the carpets.  But some people feel a house is not move in ready until every nick or scratch is polished away and all utilities have been upgraded with “green” products.

Today I’m writing about new homes, and here’s what I’m seeing right now: the new design trends out there incorporate a creative use of construction materials; layouts and features that provide maximum utility and beauty while being energy efficient and cost-conscious at the same time.  You know the house is “tight” when you slam the front door and your ears “pop”.

April is New Homes Month, and in keeping with the builder’s celebration, the following top trends were highlighted by leading homebuilders and architects during the International Builders’ Show in Orlando, last month.

Today’s new homes are being redesigned to allow plenty of space for family interaction in high-traffic areas such as the kitchen, and to eliminate rooms such as formal dens, dining rooms and home offices that aren’t as frequently used.  Small spaces devoted to home management, also known as “pocket offices,” are being included in large pantries or spaces nearby the kitchen or family great room.

I am seeing “Murphy beds” being used again to make a 3^rd bedroom into both a “day office” and an additional guest room when needed.  Window seats and alcoves are being used to provide areas for private time, without taking up a lot of space. A popular and efficient location for laundry facilities is now added onto the master bedroom’s walk-in closet.  One caveat, if the master bedroom closet has carpeting, be careful with the bleach.  It’ll make a mess of the carpets.

Larger developers are increasing the number of resident amenities in order to compensate for smaller unit sizes.  Gyms and media rooms have been common for years, but facilities such as libraries and business lounges with individual workspaces are now being offered as well.  So look for the larger “public” spaces, if you are thinking of downsizing.  If this trend continues, one day you’ll own a master bedroom with an attached bathroom—everything else will be part of the common areas—hope I don’t live that long…

Many families are keeping the kids home longer (now that they can stay on the parent’s health plans) or inviting elder parents to move back in with their grown children—and now they are all living under one roof.  This is a result of the state of the economy during the past few years.  New single-family home designs reflect this with “shadow” units (call them “attached mother-in-law apartments” or private guest suites) that are built alongside a home, they are really separate living units that access the main floor plan of the home—often through a door into the kitchen, or via a shared garage.  Then there are homes with at least two master suites—with one or both located on the ground floor to be more accessible for elderly occupants.

Rectangular home designs (the big box) are more cost effective to build, so new homes no longer have the formerly-popular feature of multiple roof lines or the resulting unnecessary hard to heat and cool high ceilings and the useless interior volumes they created.  But home designs now include innovative modifications that are still visually stimulating, such as using two windows in a corner with mitered glass to allow unobstructed views and maximum light to come in. Another example is using a mix of materials in the home’s façade such as metal, wood and stone to give the home a modern look.  Just ask the builder to certify the metal won’t rust.

The latest new home design trends that support modern lifestyles provide thoughtful and useful spaces in your newly constructed big box home. Safety, energy efficiency and near record-low interest rates coupled with competitive prices make today’s new home market an attractive opportunity for many families coming to Florida.

Dane Hahn is a real estate professional practicing in the Englewood area.  He can be reached at dane.hahn@gmail.com or by phone at 941-681-0312.  See him on the web at http://www.danesellsflorida.com/.

Real Estate Software

An Agent's Guide to Software

Each, day thousands of real estate professionals go online to research real estate software. But what is real estate software, and how can it help you improve your real estate business? These are the questions we will address here.

What is Real Estate Software?

When we talk about real estate software, we're actually covering a wide spectrum of software products. In general terms, real estate software is any software that helps you manage some aspect of your real estate business.

The "some aspect" part of that definition is important, because to date there is no real estate software that will help you manage all aspects of your business. Instead, most types of real estate software are designed to help you manage a certain element of your business, like contract preparation for example.

Various Types of Real Estate Software

Below, we look at some of the most popular types of real estate software. As you will see, each type of software is designed to help you perform a certain part of your real estate business. Please note that this list is not all-inclusive. There are more types of real estate software than I could possibly cover in this one resource. So at the end of this guide, I've listed some additional resources where you can find any type of real estate-related software imaginable.

Content Management Systems

Some types of real estate software are designed to help you manage property listings on your website. Basically, these are content management systems (CMS) that have been adapted for real estate purposes. A good example of such a program would be Realty Manager by Interactive Tools.

Such programs allow you to add, edit or remove property listings (including house photos) within your real estate website -- without any knowledge of web coding. If you have listings on your website that require constant management, you can see the convenience of this kind of real estate software.

Real Estate Contract Software

As the name implies, this type of real estate software helps agents prepare real estate contracts. As you well know, contracts are a big (and often time-consuming) part of the real estate business. So anything that can streamline and simplify the process would be welcomed by real estate agents. That's what contract-management software strives to do.

One of the best features of real estate contract software -- a feature you should look for when purchasing this type of software -- is the ability to create contract templates by pulling in required disclosures and other commonly used items from your city and state. This way, once you have the real estate contract software set up how you want, you would simply enter new client details and listing prices to generate contracts.

Real Estate CMA Software

Once again, the name tells you what this type of real estate software does. CMA software helps you prepare comparable listings / sales reports that you can show to clients. The biggest benefits of this type of software are time savings, professional appearance, and basic mathematical functions. CMA software will help you produce an attractive and informative CMA report in less time than doing it without software assistance.

Contact Management Software

Contact management software is not to be confused with contract management software. Though they only differ by one letter, these two types of software have nothing in common. Contact management software helps you manage your contacts, or client communications.

Most of these applications are built around databases. You enter client information into the database (with details such as name, phone number, neighborhood of interest, etc.), and then you can easily search the data later.

When choosing a contact management solution, look for one that allows customization of the data fields. You want the ability to create whatever info fields for each contact that's important to you. All of these programs will let you enter the basics, like name, phone number, address and the like. But what if you wanted to also label people with buyer vs. seller? Or by price range? Or by the neighborhoods they're interested in? You'll need this kind of flexibility, and any good contact managements solution should offer it.

Real Estate Educational Software

This is another popular type of real estate software. As the name implies, this kind of software helps you advance your professional education. The most common types of real estate educational software are the test preparation programs. These programs help you prepare for state licensing exams and other real estate-related professional exams. For just about every real estate exam you can imagine, there's a piece of software that can help you prepare for it.

Virtual Tour Software

Virtual tours are extremely popular among real estate professionals these days. Home buyers love virtual tours, so when you add them to your real estate website, you've increased your website's value for your key audience. The only problem is, virtual tours are not an easy thing to put together. That's where this type of real estate software comes in.

One way to create virtual tours is to have a virtual tour company do it for you. With this option, you shoot the photos or film footage yourself, and send it to a virtual tour company who creates the finished product. But for the more adventurous agents, there is also the virtual tour software path. Using this software, the agent creates his or her own virtual tours, using photos taken by the agents themselves.

Real Estate Website Software

This software covers a pretty broad spectrum. Real estate website software can help you with many aspects of your website, from creating graphics to capturing leads. But one product rarely does it all. Most types of real estate website software are highly specialized, performing a certain aspect of website enhancement.

Conclusion

So we've seen that for every type of real estate business function, there's a piece of software to help you do it more efficiently and (ideally) more effectively. Does that mean you need all of the real estate software on this list? Obviously not. My advice is to look at the business functions where you spend the most time, and shop for a software product that can simplify that process for you.

It's also a good idea to play around with different types of real estate software before buying. Most software vendors have either a free trial or an online demo through which you can judge the product for yourself. If you come across a software vendor who offers neither of these trial options, then keep shopping. When purchasing real estate software, always follow the rule of "try before you buy."

Short Sales (Should be Called Long Sales)

Trying to get a home to close in a short sale is no picnic.  You would think that a bank or lender would be pretty happy to evaluate a bona fide offer—especially one that met their minimum price requirement—but week after week we call and plead for the bank to accept the offer so we can go forward, and week after week they don’t reply.

These processing delays have taken their toll on first-time home buyer interest in short sales, which now account for more than one of every six house sales.  In a nutshell, I listed a house last spring—about a year ago.  It is a fixer-upper, no doubt.  But the county had it assessed at $119,000.  We listed it at $99,000 with the idea it would sell fairly quickly.

Buyers came and went and finally one with vision and a belief in the neighborhood came forward and has made an offer that should be acceptable to all.  And now the bank is not returning the calls.  To be fair, there is a newly hired individual at the other end of the phone charged with selling many many homes.  I’m hoping we’ll hear something this week.

But it’s not just me, first-time homebuyer purchases of short sales dropped to 39.7 percent of short sale transactions. That represented a three-month slide and was the lowest level for first-time homebuyers ever recorded by those who keep track of this stuff.

The first-time homebuyer share of short sales hit a peak of 54.1 percent of all short sale transactions in November 2009, just before the originally scheduled expiration of the federal homebuyer tax credit.

Short sale transactions have long been problematic for buyers and sellers alike, with typical approval times of several months after a homebuyer first submits an offer. Factors slowing down short sale approvals include lost paperwork, coordination with multiple investors, slow appraisals, and mortgage servicer understaffing.

But there is a silver lining to this whole debacle, for many first-time home buyers, average short sale prices of 27 percent lower than non-distressed properties compensated for the wait time. But with average time-on-market for short sales stalled at 16.6 weeks—with the majority of that time spent waiting for bank approval—short sale transactions are becoming less popular with first-time homebuyers.

Short sales are just one type of distressed property.  Homes that have been foreclosed on become the property of the lending institution, and are called “REO’s” (for Real Estate Owned) with damaged REO’s and move-in ready REO’s also being significant components of today’s housing market.  Last summer, short sales accounted for 17.1 percent of the home purchase market, with damaged REO and move-in ready REO accounting for 13.2 percent and 15.6 percent, respectively.

Most real estate agents indicate that home buyers frustrated with short sale delays are resorting to placing offers on multiple properties, with the intention on closing on the first one that is approved. This practice can bog down the short sale approval process at mortgage servicers.

To review the listings, sales and “days on market” data, you can take a deeper look here: To View .

Dane Hahn is a real estate professional practicing in the Englewood area.  He can be reached at dane.hahn@gmail.com; or on the web at http://www.danesellsflorida.com/.

Be sure to read my new book, Gold!, available for $2.99 on Kindle.