The longer I stare at these figures, the more confused I become! Ask any agent in the Upper Keys, or the entire Keys and they will tell you there is much more activity, more than the numbers show. They are showing property all day long and, I know at our offices, we have had many more offers and contracts coming through. It seems as though the optimism in the local and national media focus on the recovering housing market has created optimism in buyers.
The only evidence of this activity is in the first quarter 2009 pending figures. They are up 42% while the pending sales at the end of 2008 were down 14% as compared to 2007. Does all this activity mean we have bottomed out or is this just a little flurry? The next quarter's figures will let us know. At least 50% of those pending sales are short sales with a lower percentage chance of closing than a standard contract which brings us to the subject on the following page.
ARE SHORT SALES THE BEST PATH TO A GOOD BUY?
As we have said in the previous newsletters, short sales and foreclosures are skewing the figures throughout the Keys and the nation. Especially with foreclosures, the properties are often in very poor condition, needing thousands to bring them into suitable living condition. But are short sales the best path for sellers and buyers?
A short sales exists when a property owner does not have the finances to pay a mortgage (or mortgages) and the value of the property has fallen below the balances of the loans. The lenders will often accept less than the loan balance to avoid an expensive and usually less profitable foreclosure sale. There is a misconception by some property owners that, just because they are "upside down" with a property, they can achieve a short sale. The property owners must show a negative financial statement any actually be unable to keep up with the payments.
For the seller, a short sale is far better than a foreclosure in many ways. The deficiency is often handled more favorably, it is easier on their credit rating, and often there are more favorable income tax consequences. Sellers should confer with their accountants and attorneys. For the buyer, it is a mixed bag. The buyer who is looking for a primary or second home may be better served making offers on a property without a short sale. There are many very good deals out there and negotiations can be handled in a matter of days instead of months. Lenders are so swamped these days that short sales, if they go through, take months to be approved and closed. In the mean time, a buyer has possibly lost out on some good buys that went under contract and closed while they were waiting to hear from the lender on their short sale offer.
As an investor who has no attachment to a property and just looking for the best deal, short sales may be the best route, but be aware that, without the services of an experienced short sale negotiator, only about 15% ever close.
At Freewheeler we have taken the next step and have agents who have earned the designation of Certified Distressed Property Expert (CDPE). This training provides us with the tools necessary to properly consult sellers on potential short sales and negotiate with lenders. To properly negotiate a short sale for the benefit of both the buyer and seller, an agent must know what the lenders are looking for and how to properly present a package and negotiate the deal.
REALTY WORLD FREEWHEELER AGENTS SCORE HIGHEST SALES PER AGENT IN 2008
Again in 2008, Realty World-Freewheeler agents experienced the highest sales per agent reaching almost 2.5 million of sales per agent! Once again, this proves...
FREEWHEELER CONSTRUCTION, CORP
Have you ever thought about a Summer Kitchen? Here in the Keys most of our activities are outside, poolside if you are lucky enough to have a pool. 
Even without a pool, you can still enjoy the mild temperatures with a summer kitchen. These entertainment areas can be affordably built to include a bar-b-que area, an ice machine, sink, refrigerator, and of course built in televisions and stereos. Give John a call (305) 664-4444 for a quote.
Freewheeler Construction also specializes in the required sewer laterals hookups. The Upper Plantation Key neighborhoods from the high school area to Tavernier Creek are next. Lower Matecumbe neighborhoods will be coming up soon. You will find Freewheeler Construction does a complete, precise job, restoring your property and landscaping to its original state. Call John for a quote.
VACATION RENTAL NEWS
The current economic downturn has had an interesting affect on Vacation Rentals. Many of our long term winter vacationers have not returned this year, but that gap has been filled with new faces. The net result is that the numbers have remained consistent with last year. In fact our summer rentals appear to be stronger than 2008. Our summer vacationers are made up mostly of boaters from South Florida and last year's gas prices made many families stay home. One affect has been that families are making reservations closer to the time they are vacationing, so some months which begin to look gloomy end up being close to last year's vacation volume.
I credit Brandi, Michelle, Amy and Kimberly with aggressive response to vacation inquiries.
FISHING NEWS
Pictured here is a 70 lb 5ft 8" Dolphin caught by Ron Allen aboard the "FISH TALES" out of Whale Harbor. The state record is 77 lbs 12 oz. Ron is the husband on Nancy Allen of the Islamorada Sales Department.
Way to go Ron!
QUOTE OF THE QUARTER
“It’s not what happens to you but how you react to it that matters”
- Epictetus
Realty World-Freewheeler has Two Upper Keys Locations:
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