Thoreau I'm not.........

But this Friday brings some existential musings.

As a real estate agent, each morning I wake I must "re-invent" myself. That means I get up each day and say "Today is going to be a good day. Good things are going to happen." And even at the end of the day if nothing good has happened, I have set the tone early in the morning and can reflect in the evening on what I could have done to make the day better. Or I can examine the smaller moments of the day and decide they were indeed good.

My philosophical point is that positivity is a choice which everyone must make for himself. You can roll out of the bed, grumpy that you have to go to work or take the kids to school or blah blah blah. Or you can be happy that today is another day "above ground" and know that the mundane and smaller moments of the day are what make up life. We're here anyway, why not have a good time?

Negativity breeds contempt and resentment and I personally don't have room in my life for those things. So for those agents complaining about the market and how they don't have any business, you have to MAKE things happen for yourself. You have to be thinking about innovative ways to make your phone ring, to get in front of people, to make contacts.

Today, I am going to meet 2 new people and tell at least 5 people about my business. I'm going to make at least one of my clients happy with good news today. And I'm going to have a successful day.

To you, I wish you a successful and joyful day. Don't look for the BIG events - look for the smaller moments.

Peace.

As if we don't do enough......

Today we launch our Nationwide Referral Network.

With an extensive network of real estate professionals around the country, we are able to work with anyone ANYWHERE to fulfill their real estate needs and dreams.

Know someone who wants to move from Chicago to Los Angeles? We can find a qualified and ethical agent to handle the sale of the Chicago home and another agent to find a Los Angeles home.

We've worked hard to build our referral network, and we're happy to provide service to clients regardless of their location.

The best part is, all it takes is a phone call to get us to work. We also offer a convenient online referral form which can be found at our website, http://www.mylandmarkteam.com/. This service is ABSOLUTELY FREE!

We want to be your one stop real estate resource. With your continued support, we'll easily achieve our goals.

Statistically speaking.......

It's time for a few Tarpon Springs real estate market statistics. These numbers are actually encouraging as compared to Pinellas County and the State of Florida in general. They tell me that people still want to move to Florida and this is the area in which they'd like to live.

Currently on the market in Tarpon Springs, there are 314 single family homes, 73 condos, 93 Townhomes and 16 villas.

Properties listed as "Active With Contract" meaning there is an accepted offer in place, but the property is still available should another better offer come along are as follows: Single Family 6, Condo 3, Townhome 1 and Villas 6.

Properties listed as "Pending" which means an offer has been accepted and a closing date is scheduled: Single Family 9, Condo 3, Townhome 7 and villas 0.

The number of properties sold since July 1, 2007 meaning a closing has taken place: Single Family 19, Condo 8, Townhome 6 and villas 2.

For Single Family homes, the average of the number of days on the market is 80.78 of those properties that have sold.

The average sales price of Single Family homes is $281,284 with a high of $455,000 and a low of $150,000.

Compared to Pinellas County with 8,821 Single Family homes currently on the market and 100 average days on the market, our statistics don't look that bad for a city with a population of a little over 23,000. The home sales in Tarpon Springs since July 2007 represent 4% of the total homes sold in Pinellas County.

With many new and attractive mortgage programs for First Responders (Nurses, CNAs, EMTs, Police, Firemen) and those job types representing the largest percentage of Tarpon Springs residents, I am encouraged that this is a destination area for many buyers considering a purchase soon.

I remain positive and upbeat in the face of these statistics. A recent report from the Florida Association of Realtors comments that over 1/3 of all realtors have left the business in pursuit of other careers. Those of us still in the field have re-committed ourselves to working hard for our clients to produce results.

For those of you whom I represent, please know we haven't stopped working for you. In fact, we've doubled our efforts and we know you'll be happy and satisfied in the end. As difficult as it is for many sellers, remember we don't get a paycheck until we sell something so we feel your pain!

We're in it for the long-haul and you can count on us.

In the doghouse......

Landmark Real Estate Specialists is pleased to announce the launch of our new service program called "My Pet's Home". This is a pet-friendly real estate service for buyers and sellers.

When you're a pet owner, your animals mean the world to you and we understand that. We have pets of our own! Owning an animal can create special needs and criteria when searching for or selling a home. For this reason, we've launched our MY PET'S HOME Specialty Services for our clients (two-legged and four or more).

FOR BUYERS
We know this area better than most companies. We know which deed-restricted communities and condominium units welcome pets, the weight restrictions and the breed restrictions. We also offer information on:

Local area Dog Parks
Experienced and competent Veterinarians
Emergency Animal Hospitals
Hurricane Evacuation Zones and shelters accepting pets
Highly experienced Pet Sitters/Walkers

FOR SELLERS

Showing a home where pets live can be stressful for the pets, the potential buyers and the buyer's agent. Special considerations must be made for those times when you can't be home with your pet, but your house must be shown.

We'll take time to get to know your animal so they feel comfortable with us. If necessary, we can spend time with them, comforting and playing with them while your house shows to potential buyers. We'll make sure they are safe, secure and happy when we leave them. You'll have peace of mind knowing your animals aren't upset by strangers in their home and won't accidentally get out to run free in the neighborhood.

Additionally, when you work with us through the MY PET'S HOME program, we will donate a portion of our commission toward homeless pet charities or the pet charity of your choice.

We understand your special needs and we're ready to help. Always on the cutting edge, we are one of the VERY few companies to offer these services and we're happy to offer them ABSOLUTELY FREE!



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Name that tune......

Ever wake up in the morning with a song in your head? It plays over and over - not the entire song; maybe just a verse or two. You find yourself humming the tune or singing the chorus all day.

I woke up this morning with a thought instead. In my head, I keep hearing "the market is back". I believe it, and I conduct my business that way. I believe that there are people with true real estate needs looking right now to buy something. I believe there are people who must sell a home and need true guidance.

Buyers must listen to their inner voices also. If you want certain contingencies in a purchase contract, ask for them! Sellers might think they would like to see their agent do something extra or advertise in a different way - they should speak up!

Just listen to that music playing in your head. It will be a good day.

The FEDs step in...finally.......

Yesterday was a highly volatile but poignant day on Wall Street. With news that the overseas stock markets were plunging before the opening bell in New York, stocks here plummeted in the early morning hours of trading. But the Federal Bank had a plan and it could mean revision and some much needed relief for the housing market.

The FED lowered the discount rate, or the interest rate that banks pay to buy money from the government. This is important because it is a chief index by which mortgage companies and banks measure their own interest rates. This means the banks and mortgage companies are paying less to loan money to borrowers. It's something we've needed for quite a while, but it seems the Federal Reserve chief, Ben Bernenke, has been quite a bit more conservative than our old friend Alan Greenspan. He has adopted a "wait and see" mentality while many have been struggling with foreclosure and an inability to refinance.

So what does this mean in the long haul? It means that consumers trapped in adjustable rate mortgages will finally see the life boat and buyers waiting out the mortgage market are likely to hop on that life boat and purchase. This is not a long-term fix, but certainly a long overdue stimulant that may create a sense of normalcy in the housing market and spark some activity.

While the media remains skeptical at best regarding the housing market, I see this as an opportunity for first-time homebuyers to get a lot of house for a very little bit of money and with a stunning interest rate. While FHA loans have become increasingly popular over the past few months, we will start to see more consumers obtaining conventional mortgages still at historically low interest rates. Banks will also begin to romance the consumers once more to borrow. And with appreciation climbing slowly in this state, the deals are there for the taking.

You may have heard that median prices of homes in Florida have fallen about 30%, but the media does not go one step further in telling you that median prices ROSE 50% in 2004 which was an anomaly. I keep saying we are back to normal and it doesn't seem that too many buyers are listening.

I peruse other real estate blogs of note to keep my finger on the pulse of the consumers. I read a posting yesterday saying that sellers should "stop listening to your realtor! your house is overpriced and won't sell." I was forced to respond. I've said time and time again that Realtors (capital R) don't price homes, the market does. And there are still unreasonable sellers out there who believe they can turn back the hands of time and make a killing on the house they purchased just 3 years ago. It's not going to happen. The people selling in this market should only be the people who NEED to sell. But the buyers win because they can get lots more house for less money.

All in all, good news. And as the Presidential primaries approach, things should get even better.

No insurance for you........

For buyers who are in contract to purchase a home or those contemplating a purchase, hurricane season sometimes throws a monkey wrench into your otherwise smooth transaction.

Imagine looking at the state of Florida on a map. Now imagine a large box enclosing the entire state and most of the coastal waters. Whenever there is a "named" storm within that box, the insurance agencies in Florida cease to write new policies. Once the named storm has left the box, the insurance agencies will again begin to write new policies AFTER TWO BUSINESS DAYS HAVE ELAPSED!

Let me tell you how this can play out through a real example. In the Summer of 2004, I recall a day where a named storm had passed two business days prior and another was headed into the "box". I was trying to obtain insurance for a client who had an upcoming closing. On this day, the insurance companies were writing policies for exactly 49 minutes! Try getting through to your insurance agent within that small window of opportunity!

The moral of the story is that especially during hurricane season, bind and purchase your insurance immediately. Don't wait for closing day or close to it or you could find yourself stuck in the box.

Preapproval pitfall.......

One of the most problematic pieces of the property-buying process these days is the financing contingency. Basically, this contingency says to the seller the buyer will buy his house contingent on the purchasers' ability to get a loan to finance it.

The financing contingency paragraph may give 7 to 14 days for the buyer to remove the contingency. If the buyer is successful, then the transaction moves toward closing. If not, the seller could have a null and void contract or he could be looking at a buyer in default.

The financing contingency paragraph (FCP) is very important. It's fraught with deadlines and I've seen a lot of agents get buyers and sellers wrapped around the axle on this one by mistake and cause some to lose money and others file lawsuits. It can be used as a means to hold the buyer to the contract, but it can also be used as a means by which the buyer can get out of a contract.

The FCP involves the buyer, seller and loan officer -- and possibly more parties depending on what type mortgage product you're looking over. If the house being sold is involved in a short-sale or foreclosure, the FCP may need to be accepted by a third party, not just the seller, before the contract is ratified.

In most contracts, the buyer puts up an earnest money deposit -- usually about 1 percent of the sales price of the house, but it could be more or less depending on the customary amount in your area. Nevertheless, if the buyer defaults on the contract (which could happen in various ways), the seller may have a right to keep the earnest money deposit. Again, this could be thousands of dollars.

One way the default could happen is through the FCP. So here are a few steps to keep in mind in removing this contingency and keeping your deposit safe and the transaction on track.
Apply for and get pre-approval for a mortgage before making an offer. This is so important in today's market. Even though you may have been watching home prices drop in the last few months, the price of money has not. It's been getting more expensive. Thus, if you apply for your mortgage before you've even gotten into the contract-writing process, then you'll already know your buying power, the lender will have already looked at the blemishes on your credit and verified your income and assets.

Name it and Claim it. Many contracts I've seen require the buyer to stipulate up front what type of loan will be used to purchase the house. This is so the seller can determine if the buyer is high risk or not and if they have generally good credit. Unless the property is being purchased with all cash, this part of the contract will most likely be filled out. It may stipulate if the loan is a conventional (or conforming) mortgage, or if it's a special type program such as FHA or VA (government-financed programs). Since you have to name the loan type of front -- be sure to carry out step 1 above.

Be honest about your credit history, your income and your assets. If you make $45,000 a year and UP TO $10,000 in bonuses -- that doesn't necessarily add up to a $55,000 income. If the lender writes your letter based on your stated income of $55,000, then only $46,000 can be verified once you've written your contract, then you may not be able to get the preferred lending rate and terms -- ergo, you may not qualify. While you may not be in default, it means you have to start all over again.

If your application starts going south, let the seller's agent know about it as soon as possible. The facts are the facts. If the lender starts letting you know you may not get your loan approved, don't keep it a secret. The seller needs to know so he can decide on whether or not to give the buyer more time or to cut bait and get back on the market.

In essence, get the money part of your home-buying process wrapped up early. If you know what you qualify for in the beginning and you now what credit problems you have, these won't be a surprise on the back side, leaving you with few options and possibly less money.

Foreclosure purchase isn't always smart........

When I work with a buyer exploring a foreclosure purchase, it reiterates how many people look at foreclosure as a rags-to-riches proposition that will leave them with the golden egg-laying goose, but one that doesn't require basic care of the goose -- food, shelter, protection from wolves, etc.

Such was the case of this potential buyer who said she was looking to buy her first home.
"I found one house that the real estate agent said was bank owned, sold as is, a fixer-upper. It is reasonably priced with little information but it foreclosed. The house was dirty and filled with stuff. They said the garbage will be emptied. They were unable to tell me much about utilities and said a home inspector would not be able to check it. The electricity is turned off."
"Are there disclosure laws? What information can I insist on getting if I paid the expenses. What arrangements can be made to check without buying it first? Who is the best person to talk to in these situations? We are looking for a place to live in and fix for a few years then be able to sell. I am unsure if it is worth looking into."

Where do I start?

You will find with most foreclosure properties, also known as REO's (or pre-foreclosures, also known as short-sales), that they are dirty, have a lot of junk inside them, are in disrepair and there's limited information. You may also be stuck with unpaid utility bills. You call the water department or electric company to have your service connected and find you must pay hundreds of dollars in overdue balances in order to restore service to the property. That's right, the balance doesn't follow the homeowner, it follows the property.

Think it through. If you're not making your mortgage payment, then that means you are in financial stress. If you're in financial stress, that means you have only enough money to pay the grocer. If all you have is money for groceries, then you're not going to pay for a cleaning lady, roofer, painter, creditors -- and lastly, the lender. Get the picture?

It's trickle-down economics, but in reverse.

Do you get to inspect a property before you buy it? For some lenders, yes. But it's usually not part of the contingency section, meaning, if you agree to buy the house, you get it in its current condition, no exchanges or substitutions allowed. You get the soiled carpet, busted a/c, vermin infestation, etc. What you get in exchange is a house that is truly under the market as far as pricing is concerned, and you get to add some repairs and sweat-equity to create a healthy financial gain.

While there are state-mandated disclosure laws in most states, you may be waiving those rights in the huge bank-owned addendum, which is an as-is monstrosity. It eliminates nearly every protection a buyer has in a Realtor-written pre-printed contract, except that you get your deposit back if for some reason the seller cannot perform on the contract.

Read the fine print. Read the fine print. Read the fine print.

Since most REO property representatives take a long time to make a decision on their contracts, time is really not of the essence (practically speaking) and you have the time to pour over the contract, addenda and clauses. Do it. Your bank account and future peace of mind may depend on it.

The best person to talk to when looking up these type properties is an agent who has walked that path before and can truly point out the pitfalls and tar pits you need to avoid. Every lender's contract and property is different. They are not written in a manner like the Realtor contracts that are customary and pretty much the same house to house.
You can try to talk with the bank representatives and listing agents, but many times they are non-responsive and not very consumer friendly.

That means you need a buyer agent more than on any other type of transaction when you're talking foreclosure and/or short sale that is being offered online or in the Realtor MLS. Don't make the mistake of trying to go it alone.

Renovation........

George-
Thanks for the blog! I read it every day and I appreciate the information. We are going to be placing our home on the market and want to do some renovation. What areas are the most important?
Katy D. - Austin, TX

When you're ready to spend money on a serious renovation of your home in preparation for sale, think about the home inspection. Do you think it's going to reveal some repairs that you already know about? Definitely make those repairs.

Spend the largest amount of money in the kitchen and bathroom. These are the areas of the home where people feel the most emotion. They want to picture their families gathered in the kitchen on holidays, or preparing a romantic meal. The bathroom is a place of solace and privacy - does it feel that way or is it just functional?

Fresh paint always helps! Inside and out, does your home "pop"? Have the carpets cleaned.

You can almost guarantee that the money you spend in these strategic areas will return to you in the sale price.

Enjoy your Sunday!

The turning tide....................

So, you may remember my prediction in July about the changing real estate market. Well friends, the National Association of Realtors published their month end report and there is some very good news. Before I give the statistics, let me point out why these measurements are important.

Most media report existing home sales (transactions that have closed) and we all know this year has been a slump. But what we really want to know is how many "pending" transactions occurred last month? That means how many properties are under contract and expected to close within 30-45 days. That shows us projections for home sales.

Second, we want to know how much the national supply of listed properties has changed. Has it dropped or increased? And how many months supply of listed property are available. This means if we were to list no other properties starting today, how many months would it take for the current inventory to deplete.

Third, we want to know what type of buyer is writing a contract to purchase a property. What is the make-up of the buyer profile?

Now for the statistics:

Pending sale transactions are UP 5% from last month! That is the largest monthly gain in over 3 years!!!

The national supply of listed properties has dropped 4.2%. While we still have an 8.8 month supply of listed properties, that's way lower than the 15 year high set in May '07.

And the majority buyer profile is no longer families with children. The majority of buyers in this market are singles, single parents, unmarried couples and co-residents with children.

These are exciting statistics and I'm happy to bring them to you. It shows in black and white and graphs and percentages the upswing in the market. It's not speeding along, but it's clawing it's way back.

Have a great Thursday!

Stay in touch - I mean it......

A few days ago, I received a phone call that went something like this:

XXXXXX: "Hi George, this is XXXXXX. I don't know if you remember me, but you sold my parents' home about 2 years ago."

Me: "Of course I remember you XXXXXX! How is your family? How are things going?"

XXXXXX: "Well, my father is in this hospital and I need to make an emergency trip to Florida. I thought of you because you're an expert on the area and I wondered if you could suggest a place to stay that's close to the hospital."

I immediately found a hotel, got reservation information to XXXXXX and received a phone call a few days later from her telling me how comfortable the hotel was and how convenient to the hospital she found the location. She then asked for a few area restaurant recommendations.

I share this because it highlights the benefit of client/agent relationships. This was one of the best compliments I could have received from a former client. No, she wasn't calling to ask me to list another home or find her a property to buy, and to be honest many agents wouldn't have bothered to gather information for her if they weren't getting something in return ($$$). But she automatically thought of me when she needed information in this area. She was in a crisis situation and I came to mind.

A good agent is a problem solver. A good agent not only tells you he's an expert in a certain area, he backs it up with facts and performance. And I guarantee that if in 5 years XXXXXX hears of a friend wanting to buy a property in this area, or knows of someone selling a house, she'll think of me again.

A real estate transaction can be very stressful and emotional. But a good agent will guide you through the process, remain focused and positive, and leave you feeling happy and satisfied when all the documents have been signed and the dust settles.

I want to thank my former client for thinking of me and extend my condolences to her and her family for the loss of their father. I'm here if you need anything.