Vero Beach Foreclosures

Please take a look at some of the opportunities and positive indicators for the future of Indian River County, real estate market.

1. Great prices – Statewide, home prices have fallen about 20 percent in the past year. FAR (Florida Association of REALTORS) statistics show the existing-home median sales price was $185,400 in the third quarter of 2008, compared with $233,200 in third quarter 2007. (The median is a typical market price where half the homes sold for more, half for less.)

2. The time is right – Home sales volumes are rising again – a signal that the market recovery may be underway. In third quarter 2008, statewide sales of existing single-family homes were up 5 % compared to the same period last year. Vero Beach homes for sale had similar results.

3. High inventory levels – Conditions are ideal for buyers to find their dream home. Inventory is plentiful in all price ranges. But as sales volumes increase, inventory levels are likely to shrink. That reality translates into this advice for buyers: Don’t wait too long.

4. Low mortgage rates – Mortgage rates are still at the lowest levels since the 1960s. Lower rates multiply a buyer’s financial power. Even half a percent can make a sizeable difference. For example, on a $200,000 home, half of 1 percent could save the homeowner about $815 a year.

5. Incentives to buy – Federal, state and local housing programs can help buyers make that big purchase. The first time home buyer tax credit is being increased to $8,000 and doesn’t
Have to be paid back if you live in the home for 3 years. The deadline is also being extended to December 2009.

6. A favored retirement destination – Over the long term, Vero Beach, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. Demographic studies show that the Sunshine State’s mild climate and outdoor amenities continue to make Florida a favorite retirement destination.

7. A diverse economy – Florida’s economy, like that of the rest of the nation, is impacted by the recession. Some business sectors, though, appear promising for the Florida economy. The healthcare and technology sectors are quickly becoming an important economic force on the Treasure Coast.

8. Investment Outlook – Investors are returning to the Real Estate market as the holding costs of rental homes, due to the decrease in prices and low interest rates, is well below potential income.

9. Homeownership has value – Realtors believe – and research supports that belief – that homeownership provides a variety of tangible and intangible benefits to the community and homeowners. Studies show that home equity is still the largest single source of household wealth.

10. An unsurpassed lifestyle- Finally, let’s not forget the things that brought people to Vero Beach, Florida in the first place, and will continue to attract them – beautiful beaches, fabulous weather and a friendly business climate, with no state income tax

A pilot project recently introduced by Fannie Mae will hopefully reach Vero Beach Foreclosures, but for now is limited to Orlando and Phoenix. By pre-approving a “short sale” the lender would agree to a payoff less than the mortgage before the home is listed. This could improve the popularity of short sales as they now have a reputation of slow approval times and difficult negotiations.

Most lenders are in the process of streamlining the process but are at times overwhelmed by the number of requests. Sellers with distressed homes in Indian River County can greatly improve their chances of avoiding foreclosure by negotiating with their lenders ASAP. This includes homes used for Rental Income in Vero Beach

Using an agent who is experience with the “short sale” process and looking for a home with a bank approved listing price simplifies the purchase. It not only helps the seller avoid foreclosure, but also allows the buyer to get a great deal on a home that hasn’t been neglected as is the case with many foreclosures.

Creative investors are profiting from a new housing niche – no longer are they buying, repairing and “flipping” homes to the retail market. They are taking a longer term approach to allow the market to recover and profit in the interim by offering financing. With a record number of Foreclosures and short sales in Vero Beach Fl, there are many opportunities to invest in.

There are buyers in every market, the only problem is many good buyers won’t qualify for a bank loan under the new lending guidelines. Some investors are deciding to hold the mortgage themselves for up to five years. By doing so, they make some extra money and ensure the sale of their rehabbed property went through. At 8 percent interest, an investor can plan to make an extra $10,000 in interest in addition to proceeds from the sale of the house.

While you may have buyers that many banks would probably reject, and take a smaller down payment than most financial institutions, you can sell for more in any market. Find somebody with halfway decent credit and a steady job, write a binding legal contract, and be sure the home is properly insured. Even though you are charging higher interest, you are offering homes that buyers can afford, something most banks didn’t do before with sub-prime mortgages.

Lou Harris a Vero Beach real estate agent, said that in today’s tough housing market, offering homes with owner financing gives sellers an edge. “Depending on the area, it can be critical and the difference between making a sale and not,” said Harris, who advises investors on Vero Beach foreclosures and short sales.

Owner financing in 2006 was part of the sale for one in every 400 properties sold in Indian River County. That jumped to one in every 50 this year, and that number will grow as the inventory of Vero Beach houses declines during the next few years.

Harris said that while the market has been a tough road for sellers these past couple of years, there is a niche that owner financing will fill. “I think it’s potentially a good system,” he said. “ The investor is getting a decent return on his money and it’s safer than the stock market. I think it’s a fabulous strategy.”

But buying a home cheap, fixing it and selling it by holding the mortgage isn’t for everybody. Sellers need a reliable source of  homes for sale in Vero Beach and the equity to buy. Sellers should also make sure they have all the financial documents in order, such as proof of buyers’ income, tax returns and credit history, in case the seller wants to sell the mortgage one day to another investor.