Outer Banks Short Sale - Real Examples

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PR Log (Press Release) – Jan 08, 2010 – 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,” says Dean. His buyers made their offer in August 2009 and the transaction closed in January 2010. “Yes, it did take a long time and my buyers had to be very patient, but how long could most people wait to save $100,000? My buyers got a lower mortgage rate at closing than they had been promised in August so they won twice on this one,” Dean relayed.

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,”  explained Anna Hunt, senior Broker when asked the secret to success in distress sales.

To enlist The Dean Agency’s services visit them online at www.OuterBanksHomesforSale.com or call 1 866 340 1166.

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Outer Banks & Nags Head NC Foreclosure Homes and Short Sale Property for Sale. Contact our REO & Distressed Property Specialists - oceanfront, golf course, luxury bank owned homes & foreclosures for sale. Our Brokers will email current OBX foreclosure list. Bank Owned- REO OBX

Looking at the sales figures today, it looks like short sales on the Outer Banks account for about 7.5% of closed sales. Bank owned homes accounted for about 22% of home sales this year. Foreclosed land sales made up over 25% of OBX land sales so far this year.

Currently, 145 homes are listed as short sales in the OBX MLS. Bank owned and foreclosure home listings currently total 55. Today, the Outer Banks MLS lists 2,529 residential home listings that are active. New inventory is entering the market at a rate about 1.7 times faster than inventory is either going under contract or being sold.

In the year 2008, all sales of commercial, land and homes totaled 1,317. We currently have 4,046 active listings of commercial, land and homes for sale on the Outer Banks NC. At last year’s absorption rate, with no new inventory, we currently have a 3 year supply of property for sale. The actual absorption rate is negative due to new inventory out pacing absorption by the rate of 1.7 times. In reality, many sellers will likely leave the market to wait out the current challenges.

The Dean Agency currently represents about a dozen lenders and their contractors to help market REO, bank owned and foreclosed real estate along the Outer Banks. These banks require experience and training in the agencies they choose to work with. We have evaluated over 450 properties to help lenders mark to market their OBX distressed properties. Before you hire an agent in our market who claims to be “a foreclosure expert,” ask several important questions.

• Have you ever been formally trained by lenders to price and sell foreclosures?
• How many foreclosure sales have you completed?
• Do you carry Errors and Omissions Insurance to protect clients during a foreclosure sale?
• How many Broker Price Opinions have you completed?

An gungho, but inexperienced broker will cost you time and money in a foreclosure sale. Conventional sales experience is not enough to serve clients well in REO sales!

Call the Outer Banks Realtors with foreclosure sales experience - trained and trusted by the banks!