The number of home-sales in Tampa Bay increased for the second straight month – so did the average sales price of Bay Area homes. But a continual decrease in asking prices is holding back housing market recovery. That’s according to Home Encounter’s Residential Real Estate Report for May, released today.
“There was improvement – or at least stability – in almost every indicator of housing-market-health,” commented Peter Murphy, Home Encounter CEO. “The number of sales went up across the region; sale prices rose; total listings fell; and average days until sale dropped.” All these positive indicators would ordinarily be accompanied by talk of recovery in the housing market, but Murphy isn’t so optimistic. “Asking prices have continued to drop, dampening prospects of an immediate recovery in the housing market,” commented Murphy.
According to Home Encounter, asking prices are a key bellwether of market strength, since they’re based on factors such as comparable sales, customer demand, loan availability and what a buyer can afford. Falling asking prices are typically in response declining home values, increased competition, extended time on the market and increased negotiation from Buyers. So even though average sales prices may have creped up since last month, the large inventory of unsold homes and heavy Buyer negotiation is having a dampening effect on market recovery.
A Slowing Decline
The news of May home-sales activity is a mixed bag. Home Encounter forecasts still indicate that the Tampa Bay market will reach its bottom around February 2009 – unchanged from last month. But prices will have to fall a little more before they reach rock bottom – almost 7% more, according to Home Encounter’s Report.
Everyone equates “Bottom” with “Recovery”, but the two concepts are quite different, commented Chase Clark, Home Encounter Partner and director of Investment Services. “Bottom” is the point at which the decline should end. “Recovery” depends on many factors, including inventory levels, consumer confidence, availability of loans and the job market. When it comes to the “Bottom” of the housing decline, we can safely say that the end is in sight. But when “Recovery” will occur – and how long it will take to erase the losses of the last 3 years – is anyone’s guess.
Looking for Relief
Still, May stacks-up well when compared against past months. “Asking Price is a measure of health that almost has to get worse before it gets better,” commented Murphy. “Foreclosures, Short Sales and other real estate bargains will inevitably force the competition to lower their price if they want to sell homes. But once bargain-inventory dries up – and assuming generally positive trends continue – it won’t be long before the Seller can gain some level of control again. That’s the relief that everyone is looking for.”
Thursday, June 5, 2008
Saturday, May 31, 2008
Untouched markets......
Last week, I had an opportunity to visit Nashville and in speaking with residents and looking at home prices and availability, I found that the real estate market there was untouched by this slump.
In fact, the building that's going on is amazing. Not to mention the PLANS for new building in all areas of the city. It is truly a thriving community and it keeps growing.
So, I asked myself why this paradise on earth in which we live has been so affected. Why a destination area like ours is seeing such a slow recovery. The answer; the media.
It's still happening. The gloom and doom reports on the evening news, in the newspaper, online. I just don't see it as the truth! The prices that represent today's available homes are staggering! The bargains that can be had blow my mind and yet very few buyers are willing to put offers on paper.
Mark my words: by summer's end, there will be a lot of buyers kicking themselves in a hard-to-reach spot.
In fact, the building that's going on is amazing. Not to mention the PLANS for new building in all areas of the city. It is truly a thriving community and it keeps growing.
So, I asked myself why this paradise on earth in which we live has been so affected. Why a destination area like ours is seeing such a slow recovery. The answer; the media.
It's still happening. The gloom and doom reports on the evening news, in the newspaper, online. I just don't see it as the truth! The prices that represent today's available homes are staggering! The bargains that can be had blow my mind and yet very few buyers are willing to put offers on paper.
Mark my words: by summer's end, there will be a lot of buyers kicking themselves in a hard-to-reach spot.
Thursday, May 15, 2008
It's time.....
Historically low interest rates, great new loan programs, incredible home prices - and you're waiting to buy, why?
It's not going to get any better for buyers in this market. Sellers who didn't need to sell have mostly taken their homes off the market and those properties left are priced reasonably. We will start to see an upswing for sellers and this means rising home prices.
So if you've been sitting on the fence, buyers - HOP OFF! Call your real estate professional today and tell him you are ready to get serious.
It's not going to get any better for buyers in this market. Sellers who didn't need to sell have mostly taken their homes off the market and those properties left are priced reasonably. We will start to see an upswing for sellers and this means rising home prices.
So if you've been sitting on the fence, buyers - HOP OFF! Call your real estate professional today and tell him you are ready to get serious.
Thursday, May 1, 2008
Here I am.....
You may have thought I had fallen off the face of the Earth, but exciting things are happening for us and there just aren't enough hours in the day.
If you've been looking for affordable land-home packages, or you just want to purchase some land in Florida, then read further.
We are pleased to offer approximately 2500 lots in Ocala for sale at incredibly affordable prices (some from $18,000 to $20,000). We can offer bargain land-home packages on these lots. More information will be available as we develop the project further, but you can be sure these lots will go quickly.
We also offer an amazing commercial parcel consisting of approximately 7 acres on a major highway in Belleview, FL - within close proximity to the nationally famous "The Villages". The highway experiences over 33,000 car traffic daily and is the perfect spot for any type of business looking for high exposure.
We have a commercial warehouse/office property in downtown Tarpon Springs for lease. The possibilities for this property are endless!
In addition to all of this, we still have great residential listings at reasonable prices in Pinellas, Pasco and Marion counties.
So you can see we've been busy and we're not complaining! Visit our website soon to find out more about these and other properties which we represent. You can find us at www.MyLandmarkTeam.com.
Have a great Thursday!
If you've been looking for affordable land-home packages, or you just want to purchase some land in Florida, then read further.
We are pleased to offer approximately 2500 lots in Ocala for sale at incredibly affordable prices (some from $18,000 to $20,000). We can offer bargain land-home packages on these lots. More information will be available as we develop the project further, but you can be sure these lots will go quickly.
We also offer an amazing commercial parcel consisting of approximately 7 acres on a major highway in Belleview, FL - within close proximity to the nationally famous "The Villages". The highway experiences over 33,000 car traffic daily and is the perfect spot for any type of business looking for high exposure.
We have a commercial warehouse/office property in downtown Tarpon Springs for lease. The possibilities for this property are endless!
In addition to all of this, we still have great residential listings at reasonable prices in Pinellas, Pasco and Marion counties.
So you can see we've been busy and we're not complaining! Visit our website soon to find out more about these and other properties which we represent. You can find us at www.MyLandmarkTeam.com.
Have a great Thursday!
Thursday, April 17, 2008
Put your money where the buyer is.....
I was waiting for some great information from my good friend, Leigh Speight with SunTrust mortgage, but in the absence of that, I thought I'd address a common concern among sellers.
Many sellers ask what they can do not only to make their homes show better, but what they can do to get the most money for their investment.
DO NOT install a pool.
While this is a great selling point in Florida and other warmer climes, you will not see an increase of $25,000 to $30,000 in the selling price by doing this. You'll go to the expense, inconvenience and hassle and not see a significant return on your investment.
DO NOT add a room.
See above.
DO LANDSCAPE.
The first appearance of your home to the buyer is the most important. The look of your home from the curb can make the difference between an interested buyer and one who just drives away. Spend your money here.
DO update your appliances.
Have avocado or yellow appliances? Spend the $2000 to upgrade your appliances in the kitchen. You'll see that money at closing.
DO paint.
If your rooms need freshening up, or you have made some funky color choices that may not appeal to the general public, choose some neutral colors and paint.
In short, look at the overall appearance of your home through buyer's eyes and you can inexpensively increase the value of your home and the chances that you'll see a contract.
Many sellers ask what they can do not only to make their homes show better, but what they can do to get the most money for their investment.
DO NOT install a pool.
While this is a great selling point in Florida and other warmer climes, you will not see an increase of $25,000 to $30,000 in the selling price by doing this. You'll go to the expense, inconvenience and hassle and not see a significant return on your investment.
DO NOT add a room.
See above.
DO LANDSCAPE.
The first appearance of your home to the buyer is the most important. The look of your home from the curb can make the difference between an interested buyer and one who just drives away. Spend your money here.
DO update your appliances.
Have avocado or yellow appliances? Spend the $2000 to upgrade your appliances in the kitchen. You'll see that money at closing.
DO paint.
If your rooms need freshening up, or you have made some funky color choices that may not appeal to the general public, choose some neutral colors and paint.
In short, look at the overall appearance of your home through buyer's eyes and you can inexpensively increase the value of your home and the chances that you'll see a contract.
Thursday, April 10, 2008
Sales are up......
Pasco County reports an increase in sales of 27% over just last month.
The Europeans are taking advantage of the terrible exchange rate and getting fantastic deals.
What are you waiting for?
The Europeans are taking advantage of the terrible exchange rate and getting fantastic deals.
What are you waiting for?
Wednesday, April 2, 2008
Don't forget the baby......
With the rising number of foreclosures occurring, a disturbing trend is taking place.
Thousands of family pets are either being turned in to area shelters or simply left in the home when the family vacates due to foreclosure. Shelters are teeming with pets who have been left behind due to downsizing or their families moving into apartments or rental properties which do not allow pets.
The good news is that many shelters are doing something about this issue. Some shelters allow families to leave their pets at the shelter temporarily, until they can find a home which accommodates pets.
The trickle-down effect is that shelters need your help. You can volunteer your time, donate food, towels, shampoo or cash.
Help if you can.
Thousands of family pets are either being turned in to area shelters or simply left in the home when the family vacates due to foreclosure. Shelters are teeming with pets who have been left behind due to downsizing or their families moving into apartments or rental properties which do not allow pets.
The good news is that many shelters are doing something about this issue. Some shelters allow families to leave their pets at the shelter temporarily, until they can find a home which accommodates pets.
The trickle-down effect is that shelters need your help. You can volunteer your time, donate food, towels, shampoo or cash.
Help if you can.
Tuesday, April 1, 2008
Vacations come early.....
With the still amazing bargains available in this area, more and more people from the North and Europe are scoping out vacation home possibilities.
What does this mean for you?
Not only are you missing out on incredible deals if you're hesitating to buy, but it could bring our market back into a balanced and normal state quicker.
We already know that nationally, the supply of listed properties is steadily decreasing. It seems as though demand in this area is increasing at about the same rate - good news.
Welcome snowbirds!
What does this mean for you?
Not only are you missing out on incredible deals if you're hesitating to buy, but it could bring our market back into a balanced and normal state quicker.
We already know that nationally, the supply of listed properties is steadily decreasing. It seems as though demand in this area is increasing at about the same rate - good news.
Welcome snowbirds!
Monday, March 31, 2008
Keeping an eye on things....
A major financial overhaul is scheduled to take place very soon which will affect business in many ways.
It is proposed that the FED take oversight responsibility for Wall Street trading which, by all accounts, will monitor the risks associated with trading. This will contribute to the mitigation of volatility of the nation's financial market and could be good and welcomed news to the housing market.
This move could envoke confidence among investors, thus sparking economic stimulus and the trickle down effect could be more buyers in the marketplace.
Keep an eye on these changes - they WILL affect you!
It is proposed that the FED take oversight responsibility for Wall Street trading which, by all accounts, will monitor the risks associated with trading. This will contribute to the mitigation of volatility of the nation's financial market and could be good and welcomed news to the housing market.
This move could envoke confidence among investors, thus sparking economic stimulus and the trickle down effect could be more buyers in the marketplace.
Keep an eye on these changes - they WILL affect you!
Friday, March 28, 2008
Did you make the bed......
So, your house is on the market and you're hoping to sell quickly.
Your agent calls you in the middle of the workday and says she'd like to show your home around 1pm. You don't get off of work until 5pm and you can't remember if you made the bed. OH NO!
It's not the worst thing in the world, and probably won't be a deal-breaker to a serious buyer interested in your property. But let's talk briefly about keeping your home "show ready".
I understand that a family still has to live in a home while it's on the market. And if you have children, it's not always possible to keep your home model perfect. I suggest you keep a checklist on the refrigerator that you glance at each morning before you leave. Some of the items to include on the list would be:
-beds made
-floors clear of "debris"
-kitchen counters un-cluttered
-bathrooms neat
-jewelry/valuable hidden or put out of sight
Because your home is on the market doesn't mean that you have to Spring clean every day, but you should leave the house each morning with the notion that a stranger could be looking at your home today and could be interested in buying it. Put your home's best foot forward as much as possible.
A few moments of inconvenience could pay off!
Have a great weekend.
Your agent calls you in the middle of the workday and says she'd like to show your home around 1pm. You don't get off of work until 5pm and you can't remember if you made the bed. OH NO!
It's not the worst thing in the world, and probably won't be a deal-breaker to a serious buyer interested in your property. But let's talk briefly about keeping your home "show ready".
I understand that a family still has to live in a home while it's on the market. And if you have children, it's not always possible to keep your home model perfect. I suggest you keep a checklist on the refrigerator that you glance at each morning before you leave. Some of the items to include on the list would be:
-beds made
-floors clear of "debris"
-kitchen counters un-cluttered
-bathrooms neat
-jewelry/valuable hidden or put out of sight
Because your home is on the market doesn't mean that you have to Spring clean every day, but you should leave the house each morning with the notion that a stranger could be looking at your home today and could be interested in buying it. Put your home's best foot forward as much as possible.
A few moments of inconvenience could pay off!
Have a great weekend.
Tuesday, March 25, 2008
Demand catching up with supply.....
The National Association of Realtors (NAR) reported a decrease in the number of homes currently on the market which indicates that supply and demand are slowly reaching equality.
We are coming out of the buyer's market and sliding into normalcy. This would indicate that list prices won't go much lower; if anything they will being to increase again. The bargains available today won't last much longer.
New home construction has slowed over the past year since the inventory of homes available for sale had grown to a 10.2 month supply last summer. The resale market is going to get hot again and new construction will follow to keep up with the demand.
How many times to buyers need to be told this is the time to buy? How many parties will you attend next year and hear the same stories - "I could have bought that waterfront home at a steal and I just waited too long. Now it's $100,000 more!"
Interest rates have been lowered again. Call your mortgage professional today, find out what your rate will be and get pre-approved. Make an offer as soon as possible.
Go on! Get going!!
We are coming out of the buyer's market and sliding into normalcy. This would indicate that list prices won't go much lower; if anything they will being to increase again. The bargains available today won't last much longer.
New home construction has slowed over the past year since the inventory of homes available for sale had grown to a 10.2 month supply last summer. The resale market is going to get hot again and new construction will follow to keep up with the demand.
How many times to buyers need to be told this is the time to buy? How many parties will you attend next year and hear the same stories - "I could have bought that waterfront home at a steal and I just waited too long. Now it's $100,000 more!"
Interest rates have been lowered again. Call your mortgage professional today, find out what your rate will be and get pre-approved. Make an offer as soon as possible.
Go on! Get going!!
Monday, March 24, 2008
Here It Comes.....
I had occasion this weekend to be in the company of several Hillsborough County Realtors and from all accounts, the market there is booming again. As I listened to stories of multiple deals with multiple offers, I thought of the old saying "As Hillsborough County real estate goes, so goes Pinellas County". OK. I just made that up. But it has to be true.
Many of these agents felt the bottom has definitely been reached - that we cannot possibly go any lower. I agreed with them as we compared the bargain list prices of prime properties.
What else does the buying community need? I'm going to say it again; IT'S TIME TO BUY OR YOU'LL BE SORRY LATER THIS YEAR!
I'm here to help when you're ready.
Many of these agents felt the bottom has definitely been reached - that we cannot possibly go any lower. I agreed with them as we compared the bargain list prices of prime properties.
What else does the buying community need? I'm going to say it again; IT'S TIME TO BUY OR YOU'LL BE SORRY LATER THIS YEAR!
I'm here to help when you're ready.
Thursday, March 20, 2008
So You Want To Be A Landlord.....
When you decide to buy a piece of real estate in order to pursue a business as a landlord, you are making an exciting and potentially financially-freeing decision. After all, simply owning real estate is an excellent investment. In addition, taking this real estate and turning it into an apartment or other form of rental property can provide for a steady flow of income. Nonetheless, there are several things you should know before you buy that first piece of real estate and enter into the world of renting.
Consider the Maintenance
One of the first considerations you need to make when you buy real estate and decide to become a landlord is the cost of maintenance and upkeep. Remember, you still own the real estate and--as the landlord--you are responsible for maintaining the property. If you are not a handy person or if you simply do not have the time it takes to complete repairs and perform maintenance on the real estate you buy, you will need to hire someone to do this for you. This might mean hiring a property manager, which will cost you about 5% of the gross income you earn from your rentals.
Learn the Law
The laws affecting real estate and rentals will vary from state to state. Therefore, you need to make sure you are aware of the laws affecting you in your state. Although there are some variances in these laws, the basics are essentially the same; your tenant has all of the same rights of ownership except for the right to sell the real estate. In addition, as long as the tenant pays rent, he or she has the right to live on the property. At the same time, they do not have the right to damage the property in any way.
The law requires that you keep the real estate in a "habitable condition." Although there is a bit of gray where this is concerned, the law is understood to mean that the real estate must have working locks on its doors and windows, the heat must work, and the roof cannot leak.
Consider the Maintenance
One of the first considerations you need to make when you buy real estate and decide to become a landlord is the cost of maintenance and upkeep. Remember, you still own the real estate and--as the landlord--you are responsible for maintaining the property. If you are not a handy person or if you simply do not have the time it takes to complete repairs and perform maintenance on the real estate you buy, you will need to hire someone to do this for you. This might mean hiring a property manager, which will cost you about 5% of the gross income you earn from your rentals.
Learn the Law
The laws affecting real estate and rentals will vary from state to state. Therefore, you need to make sure you are aware of the laws affecting you in your state. Although there are some variances in these laws, the basics are essentially the same; your tenant has all of the same rights of ownership except for the right to sell the real estate. In addition, as long as the tenant pays rent, he or she has the right to live on the property. At the same time, they do not have the right to damage the property in any way.
The law requires that you keep the real estate in a "habitable condition." Although there is a bit of gray where this is concerned, the law is understood to mean that the real estate must have working locks on its doors and windows, the heat must work, and the roof cannot leak.
Know How to Find Tenants
Before you sink your money into a piece of real estate that you plan to rent out, make sure you have a good idea as to how you will get tenants. In addition, be sure you are clear on the laws when it comes to interviewing and screening tenants. There are several discrimination laws in place that limit the types of questions you can ask a potential renter.
Before you purchase that real estate, set your standards so you know what you will and will not accept from a tenant and make sure your standards are all legal. Some areas to consider include:
-The price of rent
-Whether or not you will accept pets
-The number of allowable occupants
-The amount of your security deposit
-Whether or not utilities are included in the rent
-Any minimum income requirements you expect from your tenants
-Whether or not you will accept HUD Section 9 participants
Make sure your standards are clear to all potential tenants before you even begin the interview process.
By carefully considering each of these factors before you make a real estate purchase, you will be better able to determine whether or not being a landlord is the right step for you.
Monday, March 17, 2008
Happy St. Patrick's Day.....
And happy anniversary to Landmark Real Estate Specialists!
I want to thank all of you who have supported and encouraged us. We wouldn't be where we are now without you.
Now what?
I want to thank all of you who have supported and encouraged us. We wouldn't be where we are now without you.
Now what?
Friday, March 7, 2008
Do me a favor.....
The next time you meet someone, and they tell you they are a real estate agent, don't let your first comment be "I'm sorry!" or "You must be hurting right about now!".
Those of us still in the business have a commitment to succeed and believe in what we do. Those who have left the industry are the ones who believed they were "hurting".
We're happy doing what we do.
Why don't you ask our opinion of the market instead of thinking we're all suffering?
Have a great Friday.
Those of us still in the business have a commitment to succeed and believe in what we do. Those who have left the industry are the ones who believed they were "hurting".
We're happy doing what we do.
Why don't you ask our opinion of the market instead of thinking we're all suffering?
Have a great Friday.
Thursday, March 6, 2008
No Wolf at the Door......
Here we go again. The news media is back and playing its old game of pummeling the airwaves with predictions of doom for the real estate industry. "The Big Crash Is Coming," "Disaster Ahead," "The Bubble Is About To Burst." Blah, blah, blah.
And it's working. People are scared. You can't go to a supermarket or coffee shop without overhearing a conversation about how bad the market is. Whenever you hear a piece of information pounded at you from different sources, naturally it's going to sink in.
But it's up to you to think. Don't just blindly believe a newsreader just because they are on television. True, numbers have been falling. Nobody can deny that. But, the "end of the world" hype is just not supported by any evidence. You must always remember that news media love predictions of disaster because it scares people into watching the news—even if it never happens.
This phenomenon of modern news is on display every time a storm brews in the ocean. Suddenly, the Final Days of Earth are upon us—then the storm turns to a little rain and it's all over. News people love reporting about imminent air disasters, L.A. car chases, and Wall Street's ups and downs.
The problem is that the facts don't support the wild claims.
When a market crashes, there must be a catalyst for that crash. There isn't one. There are only fluctuations. Today's fluctuations may be swinging downward more than last year, but it's by no means a crash. There has been no event—like the stock market crash of 1929 or other disaster—large enough to cause a crash.
Further, I'll go on to say that we are in one of the best times in real estate history. No, I'm not kidding. I'm very serious here. While agents are panicking all across the country and thinking about getting back into the corporate world, I say this is the best time to be a real estate agent.
The news media would laugh at me, but they're not in the trenches every day with me and they don't see what I see. What do I see?
A strong economy.
This is a key factor in any analysis of the real estate market. The current economic viability of the United States ensures that no matter how wild the real estate market fluctuations may be, there are still people with money. And people with money will always want new property.
Job growth.
Similarly, so long as new jobs are being created, there will always be a demand for housing. Companies open up new facilities and their employees who move there need places to live.
A moving population.
Americans move more than ever before. The average time people spend in a home has dropped dramatically over the past 30 years. They buy, sell, move again, buy summer homes, buy winter homes, buy investment property, and buy homes for their parents.
So what's all the hype about, right? How can I possibly make these apparently outlandish statements while the news media is saying the exact opposite?
Well, the market HAS cooled a little bit. No, I take back the word "cooled." That just feeds the media's "crash" frenzy. The numbers have slightly declined, but they've declined in a market that was in the midst of the biggest boom in history. That fact must be taken into consideration for any accurate analysis.
Remember, the past ten years have been spectacular—in fact, abnormally high. Numbers may be dropping a bit, but they're dropping to a level that is still above average.
Let's put things into a numbers' perspective. If our market in 2005 had increased by 25%, then "cooled" 4% in 2006, then we're still 21% up! This is not a "crash." This isn't even "cooling," but according to the news media the real estate market as we know it is about to explode. I don't think so.
Okay, let's play their game and we'll say the market crashes tomorrow. According to the media, this would mean that there is no more real estate activity or reason for anyone to buy. What they do not take into account is the fact that no matter what happens in the real estate market, the necessities of life guarantee real estate transactions. Even if interest rates went up to 18%, there would still be a lot of real estate activity.
Remember 20 years ago when interest rates went into double digits? Were real estate agents not working? No. Were people not selling? No.
The market also takes care of itself in up-and down-turns because when interest rates rise, prices drop. There is always a balance effect. Not to mention there are scores of people who come out of the woodwork to take advantage of a "down" market by buying at lower prices—people who would not buy in an "up" market, because prices were too high.
Different market, different clients.
So, stop fearing the crash! First of all, there isn't one.
And it's working. People are scared. You can't go to a supermarket or coffee shop without overhearing a conversation about how bad the market is. Whenever you hear a piece of information pounded at you from different sources, naturally it's going to sink in.
But it's up to you to think. Don't just blindly believe a newsreader just because they are on television. True, numbers have been falling. Nobody can deny that. But, the "end of the world" hype is just not supported by any evidence. You must always remember that news media love predictions of disaster because it scares people into watching the news—even if it never happens.
This phenomenon of modern news is on display every time a storm brews in the ocean. Suddenly, the Final Days of Earth are upon us—then the storm turns to a little rain and it's all over. News people love reporting about imminent air disasters, L.A. car chases, and Wall Street's ups and downs.
The problem is that the facts don't support the wild claims.
When a market crashes, there must be a catalyst for that crash. There isn't one. There are only fluctuations. Today's fluctuations may be swinging downward more than last year, but it's by no means a crash. There has been no event—like the stock market crash of 1929 or other disaster—large enough to cause a crash.
Further, I'll go on to say that we are in one of the best times in real estate history. No, I'm not kidding. I'm very serious here. While agents are panicking all across the country and thinking about getting back into the corporate world, I say this is the best time to be a real estate agent.
The news media would laugh at me, but they're not in the trenches every day with me and they don't see what I see. What do I see?
A strong economy.
This is a key factor in any analysis of the real estate market. The current economic viability of the United States ensures that no matter how wild the real estate market fluctuations may be, there are still people with money. And people with money will always want new property.
Job growth.
Similarly, so long as new jobs are being created, there will always be a demand for housing. Companies open up new facilities and their employees who move there need places to live.
A moving population.
Americans move more than ever before. The average time people spend in a home has dropped dramatically over the past 30 years. They buy, sell, move again, buy summer homes, buy winter homes, buy investment property, and buy homes for their parents.
So what's all the hype about, right? How can I possibly make these apparently outlandish statements while the news media is saying the exact opposite?
Well, the market HAS cooled a little bit. No, I take back the word "cooled." That just feeds the media's "crash" frenzy. The numbers have slightly declined, but they've declined in a market that was in the midst of the biggest boom in history. That fact must be taken into consideration for any accurate analysis.
Remember, the past ten years have been spectacular—in fact, abnormally high. Numbers may be dropping a bit, but they're dropping to a level that is still above average.
Let's put things into a numbers' perspective. If our market in 2005 had increased by 25%, then "cooled" 4% in 2006, then we're still 21% up! This is not a "crash." This isn't even "cooling," but according to the news media the real estate market as we know it is about to explode. I don't think so.
Okay, let's play their game and we'll say the market crashes tomorrow. According to the media, this would mean that there is no more real estate activity or reason for anyone to buy. What they do not take into account is the fact that no matter what happens in the real estate market, the necessities of life guarantee real estate transactions. Even if interest rates went up to 18%, there would still be a lot of real estate activity.
Remember 20 years ago when interest rates went into double digits? Were real estate agents not working? No. Were people not selling? No.
The market also takes care of itself in up-and down-turns because when interest rates rise, prices drop. There is always a balance effect. Not to mention there are scores of people who come out of the woodwork to take advantage of a "down" market by buying at lower prices—people who would not buy in an "up" market, because prices were too high.
Different market, different clients.
So, stop fearing the crash! First of all, there isn't one.
Tuesday, March 4, 2008
March madness.....
March marks the period when people who have school-aged children and are thinking of moving begin to search for new homes, or think about selling their current homes.
Most families would like to be in their new homes immediately following the end of the school year. Or, they'd like to have moved and be settled by the beginning of the new school year in the fall.
I expect an even bigger surge in activity in the coming weeks. It seems as though some of the media has caught on and they are reporting that the market isn't as bad as previously thought. There are some news outlets still talking about a "bubble", but I say to them "catch up!".
Have a happy Tuesday!
Most families would like to be in their new homes immediately following the end of the school year. Or, they'd like to have moved and be settled by the beginning of the new school year in the fall.
I expect an even bigger surge in activity in the coming weeks. It seems as though some of the media has caught on and they are reporting that the market isn't as bad as previously thought. There are some news outlets still talking about a "bubble", but I say to them "catch up!".
Have a happy Tuesday!
Wednesday, February 27, 2008
I wonder......
Do people really mean it when they say "If there's ANYTHING I can do for you, please let me know."?
How could you test that?
How could you test that?
Saturday, February 23, 2008
Please tell the truth......
I've mentioned before that we are able to assist people who are facing foreclosure by initiating a "Short Sale" - meaning we ask the bank to accept an offer for less than what is owed on the mortgage. I also mentioned that these sellers, whether they choose us to work with them or another brokerage, should be as honest as possible about their financial situations. As the agent is working closely with the lender in these transactions, it is important the agent have all of the necessary information to effect the deal properly.
Recently, I have been unable to reach one of my Short Sale sellers. I knew they were moving, but I needed to get a key from them in order to show the house. Days went by with no contact. I left voice mails, emails, sent letters. Nothing. These sellers told me the bank had not started foreclosure proceedings yet, but they could no longer afford the mortgage and wanted to avoid the foreclosure.
In checking and updating the files of all my listings, I regularly check the tax record to ensure nothing has changed. This particular property now showed foreclosure proceedings and an auction date set - meaning the bank was going to sell the property at auction because the sellers had stopped paying mortgage payments.
I again attempted to contact the sellers with no response. I withdrew the property from the MLS and our listings. When I went to pick up my "For Sale" sign yesterday, the sellers had written in magic marker their OWN phone number right across my sign - destroying the sign.
The house was empty. They had taken off. They had tried to pull one over on the lender by saying the property was listed. They had no intention of working with me in an honest and ethical nature.
Lesson learned.
So I urge all of you considering contacting an agent to help with a Short Sale to be honest, work with your agent and be in contact. It only serves you.
Recently, I have been unable to reach one of my Short Sale sellers. I knew they were moving, but I needed to get a key from them in order to show the house. Days went by with no contact. I left voice mails, emails, sent letters. Nothing. These sellers told me the bank had not started foreclosure proceedings yet, but they could no longer afford the mortgage and wanted to avoid the foreclosure.
In checking and updating the files of all my listings, I regularly check the tax record to ensure nothing has changed. This particular property now showed foreclosure proceedings and an auction date set - meaning the bank was going to sell the property at auction because the sellers had stopped paying mortgage payments.
I again attempted to contact the sellers with no response. I withdrew the property from the MLS and our listings. When I went to pick up my "For Sale" sign yesterday, the sellers had written in magic marker their OWN phone number right across my sign - destroying the sign.
The house was empty. They had taken off. They had tried to pull one over on the lender by saying the property was listed. They had no intention of working with me in an honest and ethical nature.
Lesson learned.
So I urge all of you considering contacting an agent to help with a Short Sale to be honest, work with your agent and be in contact. It only serves you.
Friday, February 22, 2008
Friday forecast.....
Interesting information has come from the year-ahead forecast by Pending Home Sales Index - interesting to me anyway.
Existing home sales are expected to be 5.67 million houses this year compared to just over 6 million in 2006 (remember, we were still in our hot market in 2006). The exciting news is that the Northeast market is seeing a resurgence which is important because that market was the first to slump.
Interest rates are expected to climb back to 6.4% by year end with a rate cut expected by the FEDs for short-term loans. This reaffirms the notion that the time to buy is NOW before interest rates start their hike back up.
It doesn't look too good for the new home market - with only 788,000 new homes expected to sell this year. This is an indication that people are taking advantage of the tremendous values of existing homes that are on the market or will be on the market.
Home price growth (the amount your home's value will increase) is expected to rise one to two percent above the rate of inflation! That's amazing news! That puts homeowners ahead of the game. Remember, still not the market of 2005, but good news at any rate.
I'm EXCITED! People who do this type of forecasting for a living are making projections even BETTER than I have.
Buy it!
Existing home sales are expected to be 5.67 million houses this year compared to just over 6 million in 2006 (remember, we were still in our hot market in 2006). The exciting news is that the Northeast market is seeing a resurgence which is important because that market was the first to slump.
Interest rates are expected to climb back to 6.4% by year end with a rate cut expected by the FEDs for short-term loans. This reaffirms the notion that the time to buy is NOW before interest rates start their hike back up.
It doesn't look too good for the new home market - with only 788,000 new homes expected to sell this year. This is an indication that people are taking advantage of the tremendous values of existing homes that are on the market or will be on the market.
Home price growth (the amount your home's value will increase) is expected to rise one to two percent above the rate of inflation! That's amazing news! That puts homeowners ahead of the game. Remember, still not the market of 2005, but good news at any rate.
I'm EXCITED! People who do this type of forecasting for a living are making projections even BETTER than I have.
Buy it!
Thursday, February 21, 2008
I told you.......
As I predicted, renters have been calling me in DROVES over the past two weeks. Many of them are finding that there aren't many realtors willing to work with renters, but as a full-service real estate company, we fulfill EVERY real estate need.
Now, I'm going to say it again; if you have the ability to purchase an investment property which can be rented, DO IT NOW! There are fantastic deals still to be had, interest rates are still historically low and the renters need places to live.
I suggest purchasing sturdy, relatively well-conditioned single family homes. This is what today's renter is looking for as they climb the property ladder. They are yearning to leave apartment type living in search of privacy, their own yard and the homeownership experience without the full responsibility. These renters will, in turn, purchase a home of their own down the road, but in the meantime you make a little extra cash while waiting for the market to stabilize and then make a tidy profit on your investment. We're not talking about the outrageous profits of 2005, but a respectful return.
You'll be kicking yourself next year and be one of those people who says "I had the opportunity and didn't do it!". Don't be.
Call me.
Now, I'm going to say it again; if you have the ability to purchase an investment property which can be rented, DO IT NOW! There are fantastic deals still to be had, interest rates are still historically low and the renters need places to live.
I suggest purchasing sturdy, relatively well-conditioned single family homes. This is what today's renter is looking for as they climb the property ladder. They are yearning to leave apartment type living in search of privacy, their own yard and the homeownership experience without the full responsibility. These renters will, in turn, purchase a home of their own down the road, but in the meantime you make a little extra cash while waiting for the market to stabilize and then make a tidy profit on your investment. We're not talking about the outrageous profits of 2005, but a respectful return.
You'll be kicking yourself next year and be one of those people who says "I had the opportunity and didn't do it!". Don't be.
Call me.
Wednesday, February 20, 2008
Farewell, Fidel......
You may have heard that Fidel Castro, the long-reigning leader of Cuba, has resigned due to health issues. Why is this subject found in a blog about Real Estate?
I personally believe this action will have a great impact on not only the real estate market in this area of the nation, but the overall economic status everywhere. We are fortunate in Florida to have a large Hispanic population bringing with it fantastic foods, diverse cultural morays and a distinct ethnic flair. Many of the Florida Hispanics are of Cuban descent and have harrowing tales of fleeing the communist-lead country by raft, by feigning mental illness or worse.
Many of these refugees have left behind family members who were not able to escape. They have been waiting patiently for bi-directional access to their loved ones for years. I believe the US will step up its efforts to incorporate Cuba into Democracy and Free Trade, which will be a boon for those wishing to come to the US legally, or those wishing to visit friends and family back in Cuba.
Remember, Cuba is closer to the US than Puerto Rico is. It only makes sense that the US sees Castro's resignation as a golden opportunity to open those doors once again. But, I'm no politician.
I foresee an influx of would-be citizens, a staggering increase in the rental and re-sale market, open trade creating a spike in our economy and yet another vacation destination.
What do you think?
I personally believe this action will have a great impact on not only the real estate market in this area of the nation, but the overall economic status everywhere. We are fortunate in Florida to have a large Hispanic population bringing with it fantastic foods, diverse cultural morays and a distinct ethnic flair. Many of the Florida Hispanics are of Cuban descent and have harrowing tales of fleeing the communist-lead country by raft, by feigning mental illness or worse.
Many of these refugees have left behind family members who were not able to escape. They have been waiting patiently for bi-directional access to their loved ones for years. I believe the US will step up its efforts to incorporate Cuba into Democracy and Free Trade, which will be a boon for those wishing to come to the US legally, or those wishing to visit friends and family back in Cuba.
Remember, Cuba is closer to the US than Puerto Rico is. It only makes sense that the US sees Castro's resignation as a golden opportunity to open those doors once again. But, I'm no politician.
I foresee an influx of would-be citizens, a staggering increase in the rental and re-sale market, open trade creating a spike in our economy and yet another vacation destination.
What do you think?
Monday, February 18, 2008
Make ONE phone call.......
I received several phone calls this weekend on properties I either have listed for sale or for lease. Unfortunately, the majority of these calls were from people who were randomly calling other realtors as well and asking for information or for the availability of other properties.
Ethically, if a client is working with another Realtor, others should back off. It's a tough call when buyers or renters don't understand how the business of real estate works.
I want all buyers and renters to know that any agent can show them or provide information on ANY property that is listed through MLS. It is beneficial for the client to build a rapport with ONE agent so that agent can learn his needs, wants, etc. The agent can then diligently begin working to find the perfect property for the client.
As a buyer or renter, if you call an agent and feel you could have a good working relationship with him, stick with HIM. Let him do all the work of research for you and in the long-run, you'll be much happier.
Ethically, if a client is working with another Realtor, others should back off. It's a tough call when buyers or renters don't understand how the business of real estate works.
I want all buyers and renters to know that any agent can show them or provide information on ANY property that is listed through MLS. It is beneficial for the client to build a rapport with ONE agent so that agent can learn his needs, wants, etc. The agent can then diligently begin working to find the perfect property for the client.
As a buyer or renter, if you call an agent and feel you could have a good working relationship with him, stick with HIM. Let him do all the work of research for you and in the long-run, you'll be much happier.
Sunday, February 17, 2008
Time to stand out......
Ride down any street in any town in the nation and you'll notice one thing; more than one "For Sale" sign. If you were a buyer driving through a neighborhood, think about what would set one house apart from another.
With the weather (in this area anyway) being so conducive to outdoor work, I thought it was time to give you a few tips to make your listed property stand out in the crowd.
First, go to the street and look back at your house. Is the yard cluttered with lawn ornaments, toys, bikes? Get rid of them.
-Keep the grass cut.
-Trim bushes and hedges.
-Get rid of weeds.
Now see if there is any splash of color in your yard. Do you have flowers planted or blooming bushes? If not, there are tons of cheap flowering plants you can install today that will make a huge difference in the appearance of your front yard. Do you have mulched areas in your yard? Is that mulch faded or washed away? Replace it with fresh mulch. This gives the look of a well-tended yard.
Now look at the house. Could it stand to be pressure-washed? And while you have the washer out, give the driveway and sidewalks a going over.
Have any torn window screens? Replace them pretty inexpensively.
What is the condition of your front door. Here's a Realtor secret; buyers develop their first feeling for a home by the appearance from the street and the second feeling when getting ready to open the front door. Paint your front door with glossy paint. Replace the hardware with shiny brass and while you're at it, buy a brass "kick plate" for the bottom of the door. It gives a rich appearance and they are easy to install.
In short, there are several inexpensive methods you can use to make your house scream "I'm different - look at me FIRST!". Take the time to see your house through the buyer's eyes and your property will be showing more than the others.
With the weather (in this area anyway) being so conducive to outdoor work, I thought it was time to give you a few tips to make your listed property stand out in the crowd.
First, go to the street and look back at your house. Is the yard cluttered with lawn ornaments, toys, bikes? Get rid of them.
-Keep the grass cut.
-Trim bushes and hedges.
-Get rid of weeds.
Now see if there is any splash of color in your yard. Do you have flowers planted or blooming bushes? If not, there are tons of cheap flowering plants you can install today that will make a huge difference in the appearance of your front yard. Do you have mulched areas in your yard? Is that mulch faded or washed away? Replace it with fresh mulch. This gives the look of a well-tended yard.
Now look at the house. Could it stand to be pressure-washed? And while you have the washer out, give the driveway and sidewalks a going over.
Have any torn window screens? Replace them pretty inexpensively.
What is the condition of your front door. Here's a Realtor secret; buyers develop their first feeling for a home by the appearance from the street and the second feeling when getting ready to open the front door. Paint your front door with glossy paint. Replace the hardware with shiny brass and while you're at it, buy a brass "kick plate" for the bottom of the door. It gives a rich appearance and they are easy to install.
In short, there are several inexpensive methods you can use to make your house scream "I'm different - look at me FIRST!". Take the time to see your house through the buyer's eyes and your property will be showing more than the others.
Sunday, February 10, 2008
To get loyalty, give it.....
When a seller hires a real estate agent to represent her in the sale of her property, the seller expects that the agent will do all in his power to sell that listing. After all, real estate is the only industry where the professional performs all of the duties necessary for the job in the HOPES of getting paid when the job is done. The seller expects that her property is high priority for the agent.
Recently, I had cause to speak with a seller who had a property listed through another brokerage. She told me if I had a client that was interested, to phone HER instead of the listing agent as she could then "cut the listing agent out and save some money". A listing contract is known as a "bilateral" contract; meaning that both parties to the contract have obligations to perform and are agreeing to perform them. The listing agent agrees to do everything in his power to market, promote and sell the property and the seller agrees to allow the agent to sell the property and to pay a commission for his hard work.
Besides this seller showing no regard for a legal contract she entered into, she also demonstrated she had absolutely no loyalty to the agent with whom she contracted. There are certain ramifications for her actions, should she have gotten as far as a contract which excluded her listing agent, but the fact is that she was WILLING to slight the agent in order to save money.
If she wanted the agent to work hard on her behalf, she should have been on his side.
Sad.
Recently, I had cause to speak with a seller who had a property listed through another brokerage. She told me if I had a client that was interested, to phone HER instead of the listing agent as she could then "cut the listing agent out and save some money". A listing contract is known as a "bilateral" contract; meaning that both parties to the contract have obligations to perform and are agreeing to perform them. The listing agent agrees to do everything in his power to market, promote and sell the property and the seller agrees to allow the agent to sell the property and to pay a commission for his hard work.
Besides this seller showing no regard for a legal contract she entered into, she also demonstrated she had absolutely no loyalty to the agent with whom she contracted. There are certain ramifications for her actions, should she have gotten as far as a contract which excluded her listing agent, but the fact is that she was WILLING to slight the agent in order to save money.
If she wanted the agent to work hard on her behalf, she should have been on his side.
Sad.
Thursday, February 7, 2008
Capital Gain not necessarily your loss.....
I am asked frequently by sellers what the Capital Gains tax ramifications would be if they sold their homes. I want to clear up a few misconceptions.
Let me start by saying I am not an accountant or Tax attorney (my schedule would be CRAZY if I were!) and you should consult one or the other for definitive information.
If you have been in your home for two years or more, it is your primary residence (meaning you live there at least 6 months of the year), and are a single individual, you can deduct up to $250,000 of profit on the sale of your home. If you are a married couple, that number increases to $500,000.
The famed and now mythical "property flippers" were finding that a quick flip didn't necessarily add up when it came time to pay Uncle Sam, unless they directed the profit of the sale into a "1031 Exchange", whereby they could roll that profit into another Like and Kind real estate investment thus DEFERRING the Capital Gains tax as long as the new property was a primary residence and met the other restrictions of the Exchange. Whew! That was a long sentence!
I am also asked what percentage of profit would be owed if there was a tax. I have no idea. There are so many variables to that, I wouldn't begin to offer advice or speculate.
With the new Homestead legislation in this state, the new revisions to the tax code and the amazing bargains to be had for buyers, it is time for sellers to drop the fear factor and sell. We most likely won't see the type of market we had in 2004 and 2005 so it's time to be logical and reasonable.
I've got some "For Sale" signs available when you're ready.
Let me start by saying I am not an accountant or Tax attorney (my schedule would be CRAZY if I were!) and you should consult one or the other for definitive information.
If you have been in your home for two years or more, it is your primary residence (meaning you live there at least 6 months of the year), and are a single individual, you can deduct up to $250,000 of profit on the sale of your home. If you are a married couple, that number increases to $500,000.
The famed and now mythical "property flippers" were finding that a quick flip didn't necessarily add up when it came time to pay Uncle Sam, unless they directed the profit of the sale into a "1031 Exchange", whereby they could roll that profit into another Like and Kind real estate investment thus DEFERRING the Capital Gains tax as long as the new property was a primary residence and met the other restrictions of the Exchange. Whew! That was a long sentence!
I am also asked what percentage of profit would be owed if there was a tax. I have no idea. There are so many variables to that, I wouldn't begin to offer advice or speculate.
With the new Homestead legislation in this state, the new revisions to the tax code and the amazing bargains to be had for buyers, it is time for sellers to drop the fear factor and sell. We most likely won't see the type of market we had in 2004 and 2005 so it's time to be logical and reasonable.
I've got some "For Sale" signs available when you're ready.
Monday, February 4, 2008
The Number 1 place to buy a house.......
The online edition of Forbes magazine, with help from business prognosticator Moody's Economy.com, touts the Tampa Bay area as the No. 1 place in the country to buy a house. Come again? Aren't we supposed to be in the throes of housing agony? Hear them out: Because of our area's overall strong, growing economy and comparably modest housing prices, Forbes calls Tampa-St.Petersburg-Clearwater a prime bounce-back market. It predicts our area will experience what it calls a V-shaped recovery, where a market experiences a free fall, but rebounds strongly once it hits bottom. Other regions will chart U-shaped or L-shaped courses. U-shaped recoveries are those in which prices fall slowly and recover gradually. Think Boston and Sacramento.
Think you better start looking? Give me a call.
Think you better start looking? Give me a call.
Saturday, February 2, 2008
What happens when the Bank says "Move Out"....
I've talked about "Short Sales" or Pre-Foreclosure sales of property being on the rise in this state. To refresh, this is when the bank agrees to accept a purchase price less than that which is remaining on the mortgage. Lots of people are asking how they can find Pre-Foreclosures, and this is certainly something we can help with - but you might be missing an opportunity.
With all of the Short Sales taking place, the sellers find themselves with "bruised" credit reports. As advised, they most likely should rent for 2 years before attempting to purchase another property. This means an increase in demand for rental properties!
These sellers are moving out of single-family houses most times, and would be looking to rent a single-family home.
With all of the bargains out there right now, it is the perfect time for anyone thinking of getting into property investment to purchase homes as rentals. In this market, you place a "For Rent" sign in the yard and get immediate results.
So, low interest rates combined with rental property demands equal an excellent opportunity for investors.
It adds up.
With all of the Short Sales taking place, the sellers find themselves with "bruised" credit reports. As advised, they most likely should rent for 2 years before attempting to purchase another property. This means an increase in demand for rental properties!
These sellers are moving out of single-family houses most times, and would be looking to rent a single-family home.
With all of the bargains out there right now, it is the perfect time for anyone thinking of getting into property investment to purchase homes as rentals. In this market, you place a "For Rent" sign in the yard and get immediate results.
So, low interest rates combined with rental property demands equal an excellent opportunity for investors.
It adds up.
Thursday, January 31, 2008
Property Tax Amendement passes.......
Amendment 1, regarding property taxes here in Florida has passed to the delight of its supporters.
While it may not be the total relief we were looking for, it's a start on the road to recovery and relief for people who may have been stuck in homes. The portability of the Save-Our-Homes cap alone, in my opinion, could spark some interest in the real estate market.
David Denslow, research economist at the University of Florida, predicted a "little kick-up" from tax reform. Based on the experience of Proposition 13, California's own experiment with tax reform, portability modestly improved housing sales. But California limited the benefit to people ages 55 or older. Florida imposes no such age restrictions.
"If they had a $300,000 house that declined in price to $250,000, this may kick it up to $260,000," Denslow said of the potential Florida impact.
Denslow, with a team of other economists, wrote a study last year that addressed the issue of "lock-in" -- people forced to stay in existing homes because of the tax advantages.
The phenomenon seems real. The study said a Pinellas County home with $100,000 in accrued tax-assessment savings was 8.4 percent less likely to sell. In Hillsborough County, such a home was 6.3 percent less likely to sell.
Florida State University economist David MacPherson, an Amendment 1 critic, said the people most likely to benefit from property tax portability -- those with long tenure in their homes -- are least likely to sell.
So, pros or cons, it's SOMETHING. And I choose to take it as a positive step toward recovery.
While it may not be the total relief we were looking for, it's a start on the road to recovery and relief for people who may have been stuck in homes. The portability of the Save-Our-Homes cap alone, in my opinion, could spark some interest in the real estate market.
David Denslow, research economist at the University of Florida, predicted a "little kick-up" from tax reform. Based on the experience of Proposition 13, California's own experiment with tax reform, portability modestly improved housing sales. But California limited the benefit to people ages 55 or older. Florida imposes no such age restrictions.
"If they had a $300,000 house that declined in price to $250,000, this may kick it up to $260,000," Denslow said of the potential Florida impact.
Denslow, with a team of other economists, wrote a study last year that addressed the issue of "lock-in" -- people forced to stay in existing homes because of the tax advantages.
The phenomenon seems real. The study said a Pinellas County home with $100,000 in accrued tax-assessment savings was 8.4 percent less likely to sell. In Hillsborough County, such a home was 6.3 percent less likely to sell.
Florida State University economist David MacPherson, an Amendment 1 critic, said the people most likely to benefit from property tax portability -- those with long tenure in their homes -- are least likely to sell.
So, pros or cons, it's SOMETHING. And I choose to take it as a positive step toward recovery.
Tuesday, January 29, 2008
Won't you give me three steps - give me three steps, Mister.....
3 steps to take before buying a home
A little time spent shoring up your credit, crafting your budget and organizing financial documents will go far in smoothing the way to a home purchase. Ideally, you can start working on your home-buying project before you even start shopping for homes. Keep in mind that most buyers take eight weeks to actually shop for a home, according to a survey by the National Association of Realtors. Your financial prep work should start well ahead of those eight weeks.
"My advice is to start to talk to your local Realtor six months ahead of time," says Pat Vredevoogd Combs, a practicing residential broker in Grand Rapids, Mich., and president of the National Association of Realtors. "Most have a good handle on mortgage people in the area. And, there are a lot of really cool mortgage programs out there for first-time buyers."
3 steps to take before applying
1.
Get your credit in shape.
2.
Organize your documents.
3.
Check your budget.
For example, Combs says some local governments will offer interest rate or down payment subsidies to buyers who agree to buy a home in certain areas. And governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities.
A hospital trying to recruit and retain nurses, for example, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed with the hospital for several years, says Combs.
Before you begin your house hunting, there are three important steps to take to make sure you are eligible for the best interest rates and to make the mortgage application process a breeze.
1. Get your credit in shape: Order your credit reportsOne of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law. While there are many sites on the Web offering "free" credit reports, many of those offers require that you sign up for a free trial of a credit-monitoring service that will cost money if you fail to cancel during the free trial period. The official site where you can get free, no-strings-attached credit reports annually from the Equifax, Experian and TransUnion credit bureaus is www.annualcreditreport.com. You can receive one free credit report from each of these three agencies every year.
David Reed, an Austin, Texas, mortgage banker and author of "Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You," says you should review each of those reports for errors. There could be mistaken entries noting late payments or account information that belongs to someone else. Common names sometimes get mixed up on credit reports, as do "Juniors" and "Seniors" in the same family.
"I see that a lot," says Reed.
If you spot an error, you should write to that specific creditor and request a correction. Bankrate has a work sheet to help you request and track corrections on each of your credit reports.
How's your credit?
While paying down your credit card balances will improve your financial picture, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.
"Don't assume you should just get rid of it," says Combs.
If you already own a home and have an existing home equity line of credit, or HELOC, Combs recommends that you not get rid of it in preparation for a new home purchase. "I think you ought to leave it alone. Sometimes buyers are going to need it; they can use it as an easy bridge loan (to cover the down payment temporarily until you sell the old home) so they don't have to go through the trouble of getting one."
2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements. Having those documents handy will also help you put together a realistic budget and help you figure out what you really can afford to pay as a down payment and toward subsequent monthly payments for mortgage principal and interest, plus property taxes and insurance.
Documents to gather:
•
Tax returns for the past two years.
•
W-2 income statements.
•
Two most recent pay stubs.
•
Most recent credit-card statements.
•
Most recent bank and investment account statements.
•
Divorce decrees and child support documents.
•
Your budget.
3. Craft a budget: How much house can you afford?
There is a difference between the maximum payment a borrower can qualify for -- which can sometimes be surprisingly high -- and the amount you can comfortably afford, says Combs.
"Each person has to know the difference in his own mind," she says. "If you're just getting by with your current rent payment, and the lender says you can qualify for more, give it some thought."
However, first-time buyers, in particular, often don't know how the tax-deductibility of mortgage interest and property taxes can help offset a mortgage payment that is higher than their rent. A good real estate agent can help you figure out the bottom line.
Keep it steady
Once you're closing in on your purchase, and especially after you've applied for a mortgage, do your best not to change your financial picture. "When you sit at the closing table, you will be asked to sign a document that says your credit is the same as it was when you originally applied for the loan," says Combs.
If at all possible, put off job changes. Lenders like to see a steady history of employment and frown on job changes while your application is pending, unless the new job is in the same field and at the same or greater pay.
A little time spent shoring up your credit, crafting your budget and organizing financial documents will go far in smoothing the way to a home purchase. Ideally, you can start working on your home-buying project before you even start shopping for homes. Keep in mind that most buyers take eight weeks to actually shop for a home, according to a survey by the National Association of Realtors. Your financial prep work should start well ahead of those eight weeks.
"My advice is to start to talk to your local Realtor six months ahead of time," says Pat Vredevoogd Combs, a practicing residential broker in Grand Rapids, Mich., and president of the National Association of Realtors. "Most have a good handle on mortgage people in the area. And, there are a lot of really cool mortgage programs out there for first-time buyers."
3 steps to take before applying
1.
Get your credit in shape.
2.
Organize your documents.
3.
Check your budget.
For example, Combs says some local governments will offer interest rate or down payment subsidies to buyers who agree to buy a home in certain areas. And governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities.
A hospital trying to recruit and retain nurses, for example, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed with the hospital for several years, says Combs.
Before you begin your house hunting, there are three important steps to take to make sure you are eligible for the best interest rates and to make the mortgage application process a breeze.
1. Get your credit in shape: Order your credit reportsOne of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law. While there are many sites on the Web offering "free" credit reports, many of those offers require that you sign up for a free trial of a credit-monitoring service that will cost money if you fail to cancel during the free trial period. The official site where you can get free, no-strings-attached credit reports annually from the Equifax, Experian and TransUnion credit bureaus is www.annualcreditreport.com. You can receive one free credit report from each of these three agencies every year.
David Reed, an Austin, Texas, mortgage banker and author of "Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You," says you should review each of those reports for errors. There could be mistaken entries noting late payments or account information that belongs to someone else. Common names sometimes get mixed up on credit reports, as do "Juniors" and "Seniors" in the same family.
"I see that a lot," says Reed.
If you spot an error, you should write to that specific creditor and request a correction. Bankrate has a work sheet to help you request and track corrections on each of your credit reports.
How's your credit?
While paying down your credit card balances will improve your financial picture, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.
"Don't assume you should just get rid of it," says Combs.
If you already own a home and have an existing home equity line of credit, or HELOC, Combs recommends that you not get rid of it in preparation for a new home purchase. "I think you ought to leave it alone. Sometimes buyers are going to need it; they can use it as an easy bridge loan (to cover the down payment temporarily until you sell the old home) so they don't have to go through the trouble of getting one."
2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements. Having those documents handy will also help you put together a realistic budget and help you figure out what you really can afford to pay as a down payment and toward subsequent monthly payments for mortgage principal and interest, plus property taxes and insurance.
Documents to gather:
•
Tax returns for the past two years.
•
W-2 income statements.
•
Two most recent pay stubs.
•
Most recent credit-card statements.
•
Most recent bank and investment account statements.
•
Divorce decrees and child support documents.
•
Your budget.
3. Craft a budget: How much house can you afford?
There is a difference between the maximum payment a borrower can qualify for -- which can sometimes be surprisingly high -- and the amount you can comfortably afford, says Combs.
"Each person has to know the difference in his own mind," she says. "If you're just getting by with your current rent payment, and the lender says you can qualify for more, give it some thought."
However, first-time buyers, in particular, often don't know how the tax-deductibility of mortgage interest and property taxes can help offset a mortgage payment that is higher than their rent. A good real estate agent can help you figure out the bottom line.
Keep it steady
Once you're closing in on your purchase, and especially after you've applied for a mortgage, do your best not to change your financial picture. "When you sit at the closing table, you will be asked to sign a document that says your credit is the same as it was when you originally applied for the loan," says Combs.
If at all possible, put off job changes. Lenders like to see a steady history of employment and frown on job changes while your application is pending, unless the new job is in the same field and at the same or greater pay.
Saturday, January 26, 2008
Open the Floodgates.....
My phone has begun to ring off the hook! Not that it's on a hook and not that it rings. But you get the picture.
Something has broken loose over the past few weeks and buyers are coming out of the woodwork. Perhaps it's the rate cuts provided by the FED. Perhaps it's because the holiday season is over and people are ready to get serious about real estate again.
Whatever the reason, I have a feeling that those buyers who have been sitting on the fence should hop on the bandwagon and start buying. I have another feeling that the market is slowly shifting back to a seller's market. Yes, there are still tons of pre-foreclosure and short sale properties available, but those desirable properties that have lowered their prices to rock bottom are going to be in high demand, and I believe the prices will start to climb again.
I'm no psychic, but it seems like people are clamoring to see a few of my properties and I'm only one agent. Imagine that activity happening for all agents in the area!
It's a good time to buy now.
Something has broken loose over the past few weeks and buyers are coming out of the woodwork. Perhaps it's the rate cuts provided by the FED. Perhaps it's because the holiday season is over and people are ready to get serious about real estate again.
Whatever the reason, I have a feeling that those buyers who have been sitting on the fence should hop on the bandwagon and start buying. I have another feeling that the market is slowly shifting back to a seller's market. Yes, there are still tons of pre-foreclosure and short sale properties available, but those desirable properties that have lowered their prices to rock bottom are going to be in high demand, and I believe the prices will start to climb again.
I'm no psychic, but it seems like people are clamoring to see a few of my properties and I'm only one agent. Imagine that activity happening for all agents in the area!
It's a good time to buy now.
Thursday, January 24, 2008
I'm still alive.....
Thought I fell off the face of the earth, didn't you? No. Just a Hawaiian vacation - and well deserved I think.
Give me a day to recover and I'll be back!
G
Give me a day to recover and I'll be back!
G
Saturday, January 5, 2008
Step 7: Make an offer.....
REALTOR® groups, working with legal counsel, have developed forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role. While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers -- or additional costs. Terms are extremely important and should be carefully reviewed.
How much?
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer. Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.
How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections. Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
How much?
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer. Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.
How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections. Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
Tuesday, January 1, 2008
Happy New Year......
We wish you all a prosperous and joyous New Year. I know that 2008 will be a year that will bring great positive change for everyone. We have plenty to look forward to this year.
Get ready to watch us move to the head of the pack this year with some exciting innovations in the business of real estate!
But don't be surprised; we told you we were the best.
Happy New Year!
Get ready to watch us move to the head of the pack this year with some exciting innovations in the business of real estate!
But don't be surprised; we told you we were the best.
Happy New Year!
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