There may be a lot of hope in the media headlines for South Florida homeowners that need to sell their properties, but there are also a maze of challenges waiting to derail many of them.
What do Broward, Palm Beach and Miami-Dade County property owners need to know about the current market? What media and industry traps could be setting them up to fail? What’s the best way to sell your Florida home in 2014?
South Florida Home Prices Heading Up
According to the S&P Case-Shiller Index S. Fla. home prices have been continuing their steady march upwards. As of mid-2014 the region has seen an 8.1% year-over-year increase in existing home prices, even though month over month increases in 2014 have barely pushed 0.6% to 1.2%.
Despite rave reviews of the market by FL Realtors the real data suggests local homeowners are far from experiencing a major windfall in home equity.
This is further complicated for owners of used properties due to shiny new condominium and home projects going up on the market such as Koi in Pompano Beach and The Falls in Grand Harbor at Vero Beach.
New Trends in Home Loan Modifications and FL Foreclosures
Regulators have been slamming the banking industry for recent swap and transfer activity which has enabled them to dodge modify loans. In many cases constant transferring of mortgage loans has caused the process to be drawn out until homeowners no longer qualify for help, and banks are able to better capitalize on the situation.
Foreclosure activity has been rocketing in FL too. August saw a 74% monthly rise in new homes fall into foreclosure, and a 24% year-over-year spike in foreclosures. Nationally between $250B to over $1T in mortgage debt is considered non-performing or is being held by banks as REOs.
This is no longer much of a concern for lenders who are able to cash out and recoup their capital, and profit from new origination fees and interest on new loans on the same houses.
However, this can be perilous for Florida homeowners. Neighboring foreclosures can severe drag down home values preventing sales. Some who wait to sell could be even worse off, even if they don’t have mortgage payments or back property taxes.
The Challenges in Selling a Home
The Miami Herald recently reported that almost 60% of real estate transactions in June 2014 were cash sales. However, while this appears to be good news for sellers it can be deceiving. Many of these transactions are for new construction condos or teardowns, and not for the average existing home.
Selling fast can still be a challenge. Homeowners need a solutions without the bite of Realtor commissions, and for connecting with legitimate cash buyers to avoid being caught in contracts going nowhere, or up held up later for repairs.
Quick Cash 2 Sell offers one of the best solutions, purchasing homes from sellers as-is, in any condition, with no commissions, for cash, and often closing in just a few days.