After 2 frustrating years of attempting short sale from Nags Head to Corolla to Hatteras, The Dean Agency sees 2010 as a year when these sales will greatly improve. Broker in Charge, John Dean explains," After two years of chaos in short sale on the Outer Banks, a better system for success is in place. Buyers and sellers should understand though, that these transactions will never be as simple as foreclosure sales or straight private sales. By mid-2009, we had developed much better ways of getting these closed and 2010 looks even better."
The Dean Agency has already closed millions of dollars in short sales but believes these distress sales will take a much bigger role in '10 numbers.
A short sale is any net sale amount that is less than the principle amount owed by the borrower. Additionally, most sellers can't or won't cover the short fall and the transaction then requires the seller's lender approval prior to closing. Lender approval has been an enourmous challenge for 2 main reasons. First, many lenders were reluctant to forgive or term out the shortage. Secondly, sellers and their agents have had an impossible time finding the correct department and personel to negotiate with at the various lenders.
Make no mistake, these transactions are win win for Buyers and Sellers. The Dean Agency supplied 3 examples below to illustrate the value in short sales on Outer Banks NC. The Dean Agency has maintained a leading role as buyer brokers and listing brokers in all distressed sales (foreclosures & short sales) since 2007.
REAL LIFE EXAMPLE - Adam Burkhimer, Senior Broker at The Dean Agency recently listed and sold a short sale property in a Hatteras community. This oceanside beach house was built in 2005, 2600 square feet and fully furnished. The seller's combined debt exceeded $820,000, although the current market value was around $450,000. After 3 months of negotiation on the seller's behalf, Burkhimer got lender approval for a sale around $450,000 fully furnished and still in the vacation rental program. The transaction closed in September, releasing the seller from any further obligation. The buyer aquired an incredible bargain with around a 10% gross return on investment.
REAL LIFE EXAMPLE - John Dean, Broker in Charge recently closed a short sale, representing the buyer on an oceanfront short sale on Hatteras Island. Just weeks from foreclosure on the property, Dean's buyer aquired this 4 bedroom oceanfront home, fully furnished for just $420,000. The house is adjacent to Hatteras National Seashore and has stunning ocean and sound views. "This price would have been unheard of in any other circumstance,"
REAL LIFE EXAMPLE - Burkhimer closed on an oceanfront short sale December 2009 in Nags Head representing the buyer. Burkhimer found his client a premium 7 bedroom, oceanfront Nags Head home with an elevator and hot tub in Village at Nags Head. The cash offer for $1.2 million was submitted in mid-October 2009 and closing occurred mid Dec 2009. Burkhimer explains the speed of this short sale," We made a cash offer and upped the primary offer from another buyer that knocked them out and put my buyer in first place. The seller's bank gave us 10 days to close or they would foreclose on the seller's property. My buyer was prepared and made it happen." The rental income is over $100,000 per year and the buyer plans on using the house quite a bit in the off season. "This buyer was really savvy and this was his third offer on distressed property on the Outer Banks," said Burkhimer. "We spent 16 months to place this buyer in the exact right situation."
"The Dean Agency has better prepared clients due to the information we provide, financial and statistical analysis we generate for them and the usefulness of our website. This is why our guys consistently get the best deals on investment properties,"
To enlist The Dean Agency's servicse visit them online at www.OuterBanksHomesforSale.com or call 1 866 340 1166.
