When will the Tampa Real Estate market stabilize?
I get this question so often. I can’t blame sellers for wanting to staunch the blood loss nor buyers looking to hit that bottom just right. I’ll cut right to the chase…it’s simple supply and demand, just like I learned in high school economics (Thanks, Mr. Cole!)
Our supply, or should I say oversupply, of homes for sale contrasts very tepid demand for these homes. Thus, more people are fighting over less buyers. Ok, but when will we stabilize? When will our “demand” return to more robust levels?
Everyone pontificates on that fact, including myself. I clearly remember the “Sharp V” bounce back being touted by the Realtors Association about 2 years ago. I was naïve and bought into it…now I’m a bit more jaded and see the glass as half-empty.
It seems as if it’s so easy to pull something out of harmony and into chaos than it is to restore it to that harmonic point. The Gulf oil leak, Middle East, and our current real estate market are great examples…we screw it up and struggle to bring it back to “normal”. (I bet I am the first person to correlate the Middle East crisis with our real estate market ;-)
Here are a few things that I believe are bringing our market to our knees (my opinion only!):
1) It becomes as cheap to own as it is to rent. Time Magazine is now touting the end of homeownership as a valuable commodity. Rents are so cheap now, why not lease a home. Until rents get back in line with owning, we will not see stabilization.
2) UNEMPLOYMENT. This is the big white elephant in the room no one is mentioning. Tampa just clocked in at 12.6% unemployment…many claim this number to be higher due to the people who have run out of unemployment and have given up. So let’s say 15%. The 12.6% number is a point above the Florida state average. How could we expect home prices to stabilize when over 1/10 of our population does not generate income?? How many people out of work have used up their savings trying to stay in their home and now must abandon it or short sell it? Until unemployment gets below 8-9%, we’ll continue to falter.
3) CONSUMER CONFIDENCE. This is the latest report on Florida’s consumer confidence measure http://www.bebr.ufl.edu/files/cci_08_2010.pdf : “Consumer confidence is entrenched at a relatively low level,” said Chris McCarty the Survey Director. “With the exception of a jump in April due almost entirely to the housing and appliance rebate programs, consumer confidence has been stuck in the upper 60s to low 70s for the past year. While the mix among the five components has changed, overall consumers’ attitudes reflect other economic indicators that don’t show a clear path out of recovery or back to another recession. We are in economic doldrums.” If we are not confident in our perceptions of our personal finances and the state of the economy, we will take less risk and choose to hold off on major financial transactions.
4) MORTGAGE INFLEXIBILITY. Those banks loved that bailout money but they sure didn’t turn around and lend it out, did they? They made it even harder for people to get a share of it in the form of a mortgage or equity line. Until we see a substantial loosening of mortgage standards – NOT like back in the heyday of mortgage fraud – we will be unable to get buyers of slightly higher risk in homes. By risk, I mean higher debt ratios and/or lower credit scores.
5) UNSTABLE SALARIES. If you are in the corporate world, you may have already experienced this. A client just related a story about a new corporation winning a government contract by being lowest bidder. The new company told the old contract employees to take a substantial 25% - 50% paycut if they wanted to stay on. Hmmm, that won’t help buoy our aging market when salaries are being reduced, people are being threatened with termination, and companies are taking back what they had given employees years ago. Multiple rounds of layoffs are commonplace at big firms as they trim their budgets…not only do the laid-off workers get hurt, but what do you think Mary in Accounting is thinking as her friends get escorted off the property? Yeah, let’s hold off on that new home.
6) FORECLOSURES & SHORT SALES. Yeah, this is obvious. Do you know foreclosures in Tampa are normally priced 20%-30% below market, sell in 5-10 days, and quite often go ABOVE list price due to the multiple bids received? That is not helpful for an area that has a higher-than-average foreclosure rate, such as new home communities, condo conversions, and other typically investment-driven complexes.
Heck, there’s probably more but I’m tired y’all. Tomorrow is another day in paradise!
Monday, September 20, 2010
Sunday, September 12, 2010
TRICKS OF THE TRADE!
The following info is pertinent to Florida only. For purposes of illustration, I am using Pinellas County.
"HOW DO I FIND HOA INFORMATION, AND WHO IS THE PROPERTY MANAGEMENT COMPANY?"
Here are a few tricks to help with this mystery-
1) ASK THE SELLER....Although they might not know offhand, there’s a chance they have received correspondence from them OR know a Board member. Some communities have a web presence that only residents know about.
2) Go to www.sunbiz.org:
• In the Left column select “LOOK UP A BUSINESS NAME”
• Choose the first link “INQUIRE BY NAME”
• Type in the name of your Subdivision in question, it doesn't have to be complete (ex. Try WESTLAKE VILLAGE)
• Scan the search results for something that looks like a community association (WESTLAKE VILLAGE CIVIC ASSOCIATION, INC.)
• Now click on the link, this will tell you who is the President, VP, Sec, etc. of the association.
• 411 the President, and ask them if they are self managed and who the best point of contact is. VOILA!
3) Finding a MANAGEMENT COMPANY is a little more tricky. Often, simply GOOGLING "HOA (enter name) MANAGEMENT COMPANY" will get you the info you need.
4) Another trick is to go to the Clerk's website (www.pinellasclerk.org):
• On left side halfway down select “Recording and Official Records”
• Choose ”Search Official Records”
• Type in the name of the HOA to search
• Select a LIEN that was recently filed.
Usually, an attorney does this for them, but read the Lien itself - it will show the name of the MANAGEMENT COMPANY in the body of the Lien.
The following info is pertinent to Florida only. For purposes of illustration, I am using Pinellas County.
"HOW DO I FIND HOA INFORMATION, AND WHO IS THE PROPERTY MANAGEMENT COMPANY?"
Here are a few tricks to help with this mystery-
1) ASK THE SELLER....Although they might not know offhand, there’s a chance they have received correspondence from them OR know a Board member. Some communities have a web presence that only residents know about.
2) Go to www.sunbiz.org:
• In the Left column select “LOOK UP A BUSINESS NAME”
• Choose the first link “INQUIRE BY NAME”
• Type in the name of your Subdivision in question, it doesn't have to be complete (ex. Try WESTLAKE VILLAGE)
• Scan the search results for something that looks like a community association (WESTLAKE VILLAGE CIVIC ASSOCIATION, INC.)
• Now click on the link, this will tell you who is the President, VP, Sec, etc. of the association.
• 411 the President, and ask them if they are self managed and who the best point of contact is. VOILA!
3) Finding a MANAGEMENT COMPANY is a little more tricky. Often, simply GOOGLING "HOA (enter name) MANAGEMENT COMPANY" will get you the info you need.
4) Another trick is to go to the Clerk's website (www.pinellasclerk.org):
• On left side halfway down select “Recording and Official Records”
• Choose ”Search Official Records”
• Type in the name of the HOA to search
• Select a LIEN that was recently filed.
Usually, an attorney does this for them, but read the Lien itself - it will show the name of the MANAGEMENT COMPANY in the body of the Lien.
Sunday, August 22, 2010
With mortgage rates at 4.42%, which is the LOWEST EVER since rates have been tracked, have you thought about re-financing. It's a tough decision that would normally be an easy one.
There are a few Pro's to re-financing:
1) Lower payment due to lower interest rate
2) Locking in an ULTRA-low interest rate good for 15, 20, or 30 yrs.
3) Converting monthly payment savings into HARD, IN-THE-BANK savings OR
4) Paying off bills with the monthly payment savings
5) Avoiding a balloon payment if you have a balloon mortgage
Some Con's you should consider:
1) Payments are pushed out 15, 20, or 30 years, setting back full satisfaction of the mortgage
2) Your principal portion of monthly payment shrinks
3) You may have to pay PMI (Mortgage Insurance) if you dont have at least 80%-85% loan-to-value ratio (LTV)
4) If you have a pre-payment penalty built into your current loan (tsk, tsk...yuou should have read the fine print)
5) If re-fi'ing with an ARM, you are losing longterm stability of your interest rate.
6) If you are paying points at the time of re-finance, compare actual upfront cost to annual savings...you may find it will take 5-10 years to break even on your savings.
Please do your due diligence if considering a re-fi! It's good for most but not for ALL!
There are a few Pro's to re-financing:
1) Lower payment due to lower interest rate
2) Locking in an ULTRA-low interest rate good for 15, 20, or 30 yrs.
3) Converting monthly payment savings into HARD, IN-THE-BANK savings OR
4) Paying off bills with the monthly payment savings
5) Avoiding a balloon payment if you have a balloon mortgage
Some Con's you should consider:
1) Payments are pushed out 15, 20, or 30 years, setting back full satisfaction of the mortgage
2) Your principal portion of monthly payment shrinks
3) You may have to pay PMI (Mortgage Insurance) if you dont have at least 80%-85% loan-to-value ratio (LTV)
4) If you have a pre-payment penalty built into your current loan (tsk, tsk...yuou should have read the fine print)
5) If re-fi'ing with an ARM, you are losing longterm stability of your interest rate.
6) If you are paying points at the time of re-finance, compare actual upfront cost to annual savings...you may find it will take 5-10 years to break even on your savings.
Please do your due diligence if considering a re-fi! It's good for most but not for ALL!
Sunday, August 15, 2010
July stats are in and our market continues to sputter as it tries to get it's legs. My personal opinion is we are in a POST-Homebuyer Tax credit depression coupled with the severe mortgage and appraisal issues we are constantly dealing with.
The number of Homes Sold in July plunged 32% compared to June. On the other hand, the amount of new homes for sale only increased 2.4% (a stable supply will stabilize home prices) and Pending Sales showed a 14% increase over June's numbers. That should translate into a good August!
The number of Homes Sold in July plunged 32% compared to June. On the other hand, the amount of new homes for sale only increased 2.4% (a stable supply will stabilize home prices) and Pending Sales showed a 14% increase over June's numbers. That should translate into a good August!
Sunday, August 08, 2010
Short Sales – just GOOGLE it!
For most realtors, short sales are a substantial part of our business. After 4 years in a decreasing marketplace, more people find themselves upside down on their mortgage EVERY day. While they certainly have their downsides, helping sellers in a financial quagmire unload a very negative asset is rewarding.
While I have a SFR designation (Short Sale & Foreclosure Resource) and have attended numerous training events offered by our local realtor Board and other entities, there is NO substitute for getting your hands dirty and working the phones for a short sale. I learn new things just about every short sale I close.
I took a listing recently that has THREE mortgages. It’s a first for me. Obviously, 1 mortgage is normally fairly straightforward and 2 mortgages requires some more advance planning and technique. But 3 mortgages??? Now I’m in the majors, baby!
After the fear subsided, I realized I had no choice but to dive right in. The very first thing I did was send in the authorization letters. My second action was to hop online and Google “short sale 3rd mortgage” and also the bank holding the note.
Now, we all know 2nd & 3rd lienholders THEORETICALLY have no “leverage” but they actually wield quite a lot of power, which catch many by surprise. They have the power to withhold approval, meaning you have a dead deal. They have the power to release the lien, allowing the sale, but NOT release the seller from the obligations of the note. They have the power to require a large payoff at closing, which is basically a ransom demand.
If one has never dealt with a particular bank in a particular lien position, then Google is a great place to start. The amount of info-sharing via customers and realtors is great. For instance, I learned that this particular 3rd mortgage has a separate number for submitting authorization letters (which I knew beforehand) and it behooves realtors to follow up for a contact in their Executive Client Relations division, where they will be assigned a neogitator. Unfortunately, I also learned that under no circumstances will they release the deficient amount owed on the equity line – at least that is what people claim. A follow-up call to the lender confirmed that.
Information is power these days. I have already alerted the sellers in order to set their expectations. I know the bank’s negotiation position beforehand. I also know how they have responded to other borrowers.
So if you’re wondering how your bank responds to short sales, just Google it. You’ll be glad you did.
For most realtors, short sales are a substantial part of our business. After 4 years in a decreasing marketplace, more people find themselves upside down on their mortgage EVERY day. While they certainly have their downsides, helping sellers in a financial quagmire unload a very negative asset is rewarding.
While I have a SFR designation (Short Sale & Foreclosure Resource) and have attended numerous training events offered by our local realtor Board and other entities, there is NO substitute for getting your hands dirty and working the phones for a short sale. I learn new things just about every short sale I close.
I took a listing recently that has THREE mortgages. It’s a first for me. Obviously, 1 mortgage is normally fairly straightforward and 2 mortgages requires some more advance planning and technique. But 3 mortgages??? Now I’m in the majors, baby!
After the fear subsided, I realized I had no choice but to dive right in. The very first thing I did was send in the authorization letters. My second action was to hop online and Google “short sale 3rd mortgage” and also the bank holding the note.
Now, we all know 2nd & 3rd lienholders THEORETICALLY have no “leverage” but they actually wield quite a lot of power, which catch many by surprise. They have the power to withhold approval, meaning you have a dead deal. They have the power to release the lien, allowing the sale, but NOT release the seller from the obligations of the note. They have the power to require a large payoff at closing, which is basically a ransom demand.
If one has never dealt with a particular bank in a particular lien position, then Google is a great place to start. The amount of info-sharing via customers and realtors is great. For instance, I learned that this particular 3rd mortgage has a separate number for submitting authorization letters (which I knew beforehand) and it behooves realtors to follow up for a contact in their Executive Client Relations division, where they will be assigned a neogitator. Unfortunately, I also learned that under no circumstances will they release the deficient amount owed on the equity line – at least that is what people claim. A follow-up call to the lender confirmed that.
Information is power these days. I have already alerted the sellers in order to set their expectations. I know the bank’s negotiation position beforehand. I also know how they have responded to other borrowers.
So if you’re wondering how your bank responds to short sales, just Google it. You’ll be glad you did.
Sunday, August 01, 2010
Mortgage tips for Buyers.
Preventing the last minute collapse of your mortgage file doesn't take much...just knowing how the game is played. A new rule (Fannie) called Loan Quality Initiative went into effect on July 1, 2010 that requires lenders, Before Closing, to check credit to make sure borrowers have not incurred any new debts. If borrowers incur More debt, and it affects the underwriting ratios by more than 2%, the loan will have to be re-underwritten prior to closing. Here's some Old School Advice that's still relevant!
Don’t – allow multiple credit checks
Don’t - apply for new credit within 45 days of signing a contract
Don’t – “Shop” for new credit before closing (Furniture, cars, etc)
Don’t – Go on a spending spree (using your credit limits) to buy things for your new home.
Do – File tax returns and/or extensions
Do – Explain or document all inquiries on your credit report
Do – Disclose all Debt – even if it did not show up on your credit report
Do – Work with a knowledgeable lender who can help you navigate the ever-changing mortgage industry.
Preventing the last minute collapse of your mortgage file doesn't take much...just knowing how the game is played. A new rule (Fannie) called Loan Quality Initiative went into effect on July 1, 2010 that requires lenders, Before Closing, to check credit to make sure borrowers have not incurred any new debts. If borrowers incur More debt, and it affects the underwriting ratios by more than 2%, the loan will have to be re-underwritten prior to closing. Here's some Old School Advice that's still relevant!
Don’t – allow multiple credit checks
Don’t - apply for new credit within 45 days of signing a contract
Don’t – “Shop” for new credit before closing (Furniture, cars, etc)
Don’t – Go on a spending spree (using your credit limits) to buy things for your new home.
Do – File tax returns and/or extensions
Do – Explain or document all inquiries on your credit report
Do – Disclose all Debt – even if it did not show up on your credit report
Do – Work with a knowledgeable lender who can help you navigate the ever-changing mortgage industry.
Sunday, July 25, 2010
Hi. We need to talk.
Please, have a seat. No, you should really sit down.
It's been a rough couple of years, with the market zigging and zagging...ok, mostly "zagging".
I can see the serious money you put in your home...the granite counters, crown moulding, remodeled pool, outdoor kitchen...you've done a wonderful job!
You're probably asking yourself, "Is he going to give me bad news?"
Unfortunately, I am. I don't want to, but it's my job.
Your home's value has fallen - hard. But your not alone...according to the county, my own home's value has fallen 23% from 2009 - 2010. A little excessive, but I won't argue...I want my taxes lowered.
Just so we're clear, Pinellas County has released it's 2010 real estate values in advance of mailing all countywide homeowners their real estate TRIM (TRuth In Millage) notice. The numbers are "preliminary" but I doubt they'll change much.
Also, we're NOT talking true value numbers...we don't use the tax records for that. We would use comparable properties sold w/i the last 3-6 months.
However, for tax purposes, the County is saying our homes' values took a nosedive. Your first thought is probably "Whew" followed closely by "What does that mean for me?"
Well, you MAY be paying lower taxes, as long as the taxing authority doesn't raise your millage rate. GOTCHA!
If you're selling, you BETTER believe buyers are looking at this info. I try to counsel my clients that it should not be relied upon solely for valuation purposes.
If you're curious, go to WWW.PCPAO.ORG and click on "Search our Database" on the lefthand side. Select you method of entry (I used address) and get out the tissues...
Just keep in mind that historically Real Estate has DOUBLED every 7-10 years so we're in a trough now. Our population is increasing (read: demand) and with so few new homes being built, our supply is stable. There will be a stabilization and turnaround, but no one can say when.
Hey, it looks grim but it will get better. As we all know, nothing stays the same forwever...
Please, have a seat. No, you should really sit down.
It's been a rough couple of years, with the market zigging and zagging...ok, mostly "zagging".
I can see the serious money you put in your home...the granite counters, crown moulding, remodeled pool, outdoor kitchen...you've done a wonderful job!
You're probably asking yourself, "Is he going to give me bad news?"
Unfortunately, I am. I don't want to, but it's my job.
Your home's value has fallen - hard. But your not alone...according to the county, my own home's value has fallen 23% from 2009 - 2010. A little excessive, but I won't argue...I want my taxes lowered.
Just so we're clear, Pinellas County has released it's 2010 real estate values in advance of mailing all countywide homeowners their real estate TRIM (TRuth In Millage) notice. The numbers are "preliminary" but I doubt they'll change much.
Also, we're NOT talking true value numbers...we don't use the tax records for that. We would use comparable properties sold w/i the last 3-6 months.
However, for tax purposes, the County is saying our homes' values took a nosedive. Your first thought is probably "Whew" followed closely by "What does that mean for me?"
Well, you MAY be paying lower taxes, as long as the taxing authority doesn't raise your millage rate. GOTCHA!
If you're selling, you BETTER believe buyers are looking at this info. I try to counsel my clients that it should not be relied upon solely for valuation purposes.
If you're curious, go to WWW.PCPAO.ORG and click on "Search our Database" on the lefthand side. Select you method of entry (I used address) and get out the tissues...
Just keep in mind that historically Real Estate has DOUBLED every 7-10 years so we're in a trough now. Our population is increasing (read: demand) and with so few new homes being built, our supply is stable. There will be a stabilization and turnaround, but no one can say when.
Hey, it looks grim but it will get better. As we all know, nothing stays the same forwever...
Sunday, July 18, 2010
Wednesday, July 14, 2010
I was thinking about what to blog while cleaning my pool today and !voila! it came to me - pools. They are a MUST HAVE for many buyers and a HEADACHE for some sellers. The number of pools in Florida has been reported to be WELL OVER 1,000,000... unfortunately, we also lead the nation in drowning deaths as a result.
That said, maintaining a pool can be daunting for new owners. Lucky for me, my wife was a Certified Pool Operator (CPO) in VA and ran many commercial pools. She was always the one to let me know what I was screwing up and how to remedy.
Your husband/wife/significant other not a CPO? We can fix that - we have many local pool supply companies that will test your water for free. Of course, they hope you buy the chemicals their tests say you need. When we had our pool resurfaced, a condition of our warranty was that we had to have the water tested EVERY month. This I do at a local pool supply co.
I'm not going to go over the basics of pool chemistry, as I do not claim to be a pool expert. I have become comfortable with my own pool and spend just about 5-10 minutes PER WEEK cleaning it. BUT EVERY POOL IS DIFFERENT!
The purpose of this blog article was to bring to light something I found out today. During my monthly water test, I was told I had low "Total Alkalinity" and low "Calcium Hardness" due to the 8" of rain we have received. That reminded me I had to drain the pool TWICE this last week.
I googled my pool's "condition" and here's what I found:
The total alkalinity (TA) is a measure of how much of the alkaline substances there are in the water. In the swimming pool water, we are concerned with bicarbonate alkalinity, which should be between 80 ppm and 120 ppm.
When the total alkalinity (TA) is within this range, it prevents rapid pH changes and "stabilises" the pH level.
If the TA is too low, Marbelite and plaster walls will become etched, metals corrode, the pool's walls and floor can stain, the water can turn green, eyes burn and we can have pH bounce (pH rapidly going up and down, seemingly at random).
If the TA is too high, the pH is difficult to adjust, the water becomes cloudy, the pool constantly needs acid (according to your test kit) and the chlorine loses its efficiency as a disinfectant.
It is recommended that you test the TA regularly, but in practice it changes very little in a well-maintained pool.
As for the calcium hardness, I have seen it pull calcium from the pool surface when it is too low:
Low calcium hardness
Low calcium hardness results in corrosive water. The plaster surfaces or tile grouting softens and erodes, metal equipment and accessories oxidize and rust quickly, and the water becomes aggressive. This can lead to staining of the pool's surfaces as well as an eventual need for resurfacing.
Increase low calcium hardness
The calcium hardness level can simply be increased through the addition of calcium chloride or any commercial calcium increaser (which contains CaCl).
Alternatively, in swimming pools that suffer constantly of low hardness due to the quality of the fill water, calcium hypochlorite could be the chlorine of choice. This chlorine adds calcium to the pool water with each addition keeping the level up. Care must be taken to test Conditioner a couple of times a year as this chlorine (65% - 70% CHC) does not contain conditioner in its formulation.
High calcium hardness
High calcium hardness results in scale formation on the pool surfaces as well as scaling in the pipes, plumbing and filter. In extreme cases the water becomes dull and cloudy with the calcium precipitating out into the water rather than onto a surface. High calcium levels will also irritate swimmers, causing sore eyes in particular.
So if you have a pool and have rec'd a bit of rain, make sure you test your pool water. If anything, I hope this post saves you some frustration down the road...
That said, maintaining a pool can be daunting for new owners. Lucky for me, my wife was a Certified Pool Operator (CPO) in VA and ran many commercial pools. She was always the one to let me know what I was screwing up and how to remedy.
Your husband/wife/significant other not a CPO? We can fix that - we have many local pool supply companies that will test your water for free. Of course, they hope you buy the chemicals their tests say you need. When we had our pool resurfaced, a condition of our warranty was that we had to have the water tested EVERY month. This I do at a local pool supply co.
I'm not going to go over the basics of pool chemistry, as I do not claim to be a pool expert. I have become comfortable with my own pool and spend just about 5-10 minutes PER WEEK cleaning it. BUT EVERY POOL IS DIFFERENT!
The purpose of this blog article was to bring to light something I found out today. During my monthly water test, I was told I had low "Total Alkalinity" and low "Calcium Hardness" due to the 8" of rain we have received. That reminded me I had to drain the pool TWICE this last week.
I googled my pool's "condition" and here's what I found:
The total alkalinity (TA) is a measure of how much of the alkaline substances there are in the water. In the swimming pool water, we are concerned with bicarbonate alkalinity, which should be between 80 ppm and 120 ppm.
When the total alkalinity (TA) is within this range, it prevents rapid pH changes and "stabilises" the pH level.
If the TA is too low, Marbelite and plaster walls will become etched, metals corrode, the pool's walls and floor can stain, the water can turn green, eyes burn and we can have pH bounce (pH rapidly going up and down, seemingly at random).
If the TA is too high, the pH is difficult to adjust, the water becomes cloudy, the pool constantly needs acid (according to your test kit) and the chlorine loses its efficiency as a disinfectant.
It is recommended that you test the TA regularly, but in practice it changes very little in a well-maintained pool.
As for the calcium hardness, I have seen it pull calcium from the pool surface when it is too low:
Low calcium hardness
Low calcium hardness results in corrosive water. The plaster surfaces or tile grouting softens and erodes, metal equipment and accessories oxidize and rust quickly, and the water becomes aggressive. This can lead to staining of the pool's surfaces as well as an eventual need for resurfacing.
Increase low calcium hardness
The calcium hardness level can simply be increased through the addition of calcium chloride or any commercial calcium increaser (which contains CaCl).
Alternatively, in swimming pools that suffer constantly of low hardness due to the quality of the fill water, calcium hypochlorite could be the chlorine of choice. This chlorine adds calcium to the pool water with each addition keeping the level up. Care must be taken to test Conditioner a couple of times a year as this chlorine (65% - 70% CHC) does not contain conditioner in its formulation.
High calcium hardness
High calcium hardness results in scale formation on the pool surfaces as well as scaling in the pipes, plumbing and filter. In extreme cases the water becomes dull and cloudy with the calcium precipitating out into the water rather than onto a surface. High calcium levels will also irritate swimmers, causing sore eyes in particular.
So if you have a pool and have rec'd a bit of rain, make sure you test your pool water. If anything, I hope this post saves you some frustration down the road...
Friday, July 09, 2010
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Tuesday, June 29, 2010
This is amazing...
All Rates But 1-Year ARM Hit Record Lows In Freddie Mac Weekly Survey
For Immediate Release
June 24, 2010
Contact: corprel@freddiemac.com
or (703) 903-3933
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.69 percent with an average 0.7 point for the week ending June 24, 2010, down from last week when it averaged 4.75 percent. Last year at this time, the 30-year FRM averaged 5.42 percent.
The 15-year FRM this week averaged 4.13 percent with an average 0.6 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 4.87 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.84 percent this week, with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago, the 5-year ARM averaged 4.99 percent.
The 1-year Treasury-indexed ARM averaged 3.77 percent this week with an average 0.7 point, down from last week when it averaged 3.82 percent. At this time last year, the 1-year ARM averaged 4.93 percent. This is the lowest the 1-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed mortgages in September 1991 and 5-year hybrid ARMs in January 2005. The record low for traditional 1-year ARMs of 3.36 percent occurred during the week of March 25, 2004.
“Both new and existing home sales showed unexpected declines in May. Existing sales fell 2.2 percent, compared to the market consensus forecast of a 6.0 percent gain, based on figures published by the National Association of Realtors® . Sales of new homes fell 32.7 percent to an annualized rate of 300,000 units, which was the largest monthly drop and slowest pace since records began in 1963, according to the Census Bureau .”
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
http://www.freddiemac.com/pmms/release.html?week=25&year=2010
All Rates But 1-Year ARM Hit Record Lows In Freddie Mac Weekly Survey
For Immediate Release
June 24, 2010
Contact: corprel@freddiemac.com
or (703) 903-3933
McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.69 percent with an average 0.7 point for the week ending June 24, 2010, down from last week when it averaged 4.75 percent. Last year at this time, the 30-year FRM averaged 5.42 percent.
The 15-year FRM this week averaged 4.13 percent with an average 0.6 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 4.87 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.84 percent this week, with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago, the 5-year ARM averaged 4.99 percent.
The 1-year Treasury-indexed ARM averaged 3.77 percent this week with an average 0.7 point, down from last week when it averaged 3.82 percent. At this time last year, the 1-year ARM averaged 4.93 percent. This is the lowest the 1-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed mortgages in September 1991 and 5-year hybrid ARMs in January 2005. The record low for traditional 1-year ARMs of 3.36 percent occurred during the week of March 25, 2004.
“Both new and existing home sales showed unexpected declines in May. Existing sales fell 2.2 percent, compared to the market consensus forecast of a 6.0 percent gain, based on figures published by the National Association of Realtors® . Sales of new homes fell 32.7 percent to an annualized rate of 300,000 units, which was the largest monthly drop and slowest pace since records began in 1963, according to the Census Bureau .”
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
http://www.freddiemac.com/pmms/release.html?week=25&year=2010
Tuesday, June 22, 2010
MAY Tampa Bay real estate stats
Stats were strong, as anticipated. The fly in the ointment is the staggering dropoff of Pending Sales, which would most likely sell in June. New home sales are again at a record low, which eventually forces the sales of existing homes.
There has been talk of extending the tac credit CLOSING deadline to September, but nothing substantial that I have seen as of yet that would indicate this is a reality. There will be alot of buyers who will miss the deadline and subsequently the tax credit money.
Stats were strong, as anticipated. The fly in the ointment is the staggering dropoff of Pending Sales, which would most likely sell in June. New home sales are again at a record low, which eventually forces the sales of existing homes.
There has been talk of extending the tac credit CLOSING deadline to September, but nothing substantial that I have seen as of yet that would indicate this is a reality. There will be alot of buyers who will miss the deadline and subsequently the tax credit money.
Tuesday, June 15, 2010
I received the following anecdote from a great realtor in Orlando, FL, - Albert Stimer.
"With short sales on the rise, mortgage fraud scams involving these transactions may be following the same trend.
In fact, two former Connecticut real estate agents, Sergio Natera and Anna McElaney, recently pled guilty to bank fraud stemming from their involvement in a short sale mortgage fraud scheme. According to court documents, Natera and McElaney worked together to defraud various banks, including Regions Bank, Wells Fargo, and other financial institutions by means of “materially false and fraudulent pretenses, representations, and promises.”
In the case of Regions Bank, Natera and McElaney deceived the bank into agreeing to a short sale on a property for which it held two mortgages on. McElaney, who was the listing agent for the property, received an offer to purchase the property for a price of $132,500. However, she and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management, LLC, an entity Natera controlled.
The bank agreed to the short sale of the property for the lower price and released its mortgages on the property. Shortly thereafter, Natera, through BOS Asset Management, sold the property for $132,500 to the initial bidder. He and McElaney then retained the difference in the two sale prices. Natera and McElaney used this scheme in various other short sale transactions and have been charged with bank fraud, conspiracy to commit bank fraud, and aiding and abetting. They both await sentencing in August.
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warned of the potential risk of short sale fraud in its recent quarterly report to Congress. In the report, SIGTARP said revisions to the Home Affordable Foreclosure Alternatives (HAFA) program under the Home Affordable Modification Program (HAMP) present an increased prospect of potential fraud.
As part of the new initiatives, Treasury announced that additional incentive payments will be paid to borrowers and servicers who participate in short sale provisions. This also increases the incentives for those participating in criminal short sale scams, and it appears that the program may lack necessary antifraud protections, SIGTARP said.
The report cited “flopping” – which is exactly what Natera and McElaney have been accused of – as one prevalent short sale scheme. SIGTARP explained that this scam centers on home values that are fraudulently deflated for the purpose of decreasing the cost of the short sale to a “straw purchaser.” The property is then quickly resold for its true market value, leaving the difference in the “crook’s pocket,” the report said.
SIGTARP said the HAFA program permits home valuation, the key vulnerability point for a flopping scheme, without a true appraisal, allowing estimates from brokers or other “independent” provider at the discretion of the servicer, subject to its contractual agreement with the investor.
To combat this risk, SIGTARP recommended that Treasury adopt a uniform appraisal process across all HAMP and HAMP-related short sale programs consistent with the Federal Housing Administration’s procedures."
Albert Stimer
Lic. Real Estate Broker
Lic. Mortgage Broker
Short Sale Specialist.
Towns Realty
"With short sales on the rise, mortgage fraud scams involving these transactions may be following the same trend.
In fact, two former Connecticut real estate agents, Sergio Natera and Anna McElaney, recently pled guilty to bank fraud stemming from their involvement in a short sale mortgage fraud scheme. According to court documents, Natera and McElaney worked together to defraud various banks, including Regions Bank, Wells Fargo, and other financial institutions by means of “materially false and fraudulent pretenses, representations, and promises.”
In the case of Regions Bank, Natera and McElaney deceived the bank into agreeing to a short sale on a property for which it held two mortgages on. McElaney, who was the listing agent for the property, received an offer to purchase the property for a price of $132,500. However, she and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management, LLC, an entity Natera controlled.
The bank agreed to the short sale of the property for the lower price and released its mortgages on the property. Shortly thereafter, Natera, through BOS Asset Management, sold the property for $132,500 to the initial bidder. He and McElaney then retained the difference in the two sale prices. Natera and McElaney used this scheme in various other short sale transactions and have been charged with bank fraud, conspiracy to commit bank fraud, and aiding and abetting. They both await sentencing in August.
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warned of the potential risk of short sale fraud in its recent quarterly report to Congress. In the report, SIGTARP said revisions to the Home Affordable Foreclosure Alternatives (HAFA) program under the Home Affordable Modification Program (HAMP) present an increased prospect of potential fraud.
As part of the new initiatives, Treasury announced that additional incentive payments will be paid to borrowers and servicers who participate in short sale provisions. This also increases the incentives for those participating in criminal short sale scams, and it appears that the program may lack necessary antifraud protections, SIGTARP said.
The report cited “flopping” – which is exactly what Natera and McElaney have been accused of – as one prevalent short sale scheme. SIGTARP explained that this scam centers on home values that are fraudulently deflated for the purpose of decreasing the cost of the short sale to a “straw purchaser.” The property is then quickly resold for its true market value, leaving the difference in the “crook’s pocket,” the report said.
SIGTARP said the HAFA program permits home valuation, the key vulnerability point for a flopping scheme, without a true appraisal, allowing estimates from brokers or other “independent” provider at the discretion of the servicer, subject to its contractual agreement with the investor.
To combat this risk, SIGTARP recommended that Treasury adopt a uniform appraisal process across all HAMP and HAMP-related short sale programs consistent with the Federal Housing Administration’s procedures."
Albert Stimer
Lic. Real Estate Broker
Lic. Mortgage Broker
Short Sale Specialist.
Towns Realty
Wednesday, June 02, 2010
Dear Appraiser, My Seller is not your enemy….
AN OPEN LETTER TO THE 2 APPRAISERS WHO SHOULD HAVE THEIR LICENSE REVOKED
First, I want to say to all the competent and professional appraisers I have had the pleasure of meeting and chatting with: You are a complement to your profession and we, as realtors, appreciate the hard work you put into your occupation.
Now, to the 2 appraisers who sent in mistake-riddled appraisals on a recent deal and NEARLY prevented my seller from selling, SHAME ON YOU! It’s not about you, it’s not about me, or the other realtor, or the mortgage co, etc. It’s about the Seller and the Buyer. Period. Their dreams, their goals, their aspirations…and yet you trample them without a moment’s thought (or so your appraisal made it seem).
I know you have taken a lot of heat over the market taking a dive. But that’s water under the bridge. It’s up to us to bring this market back and that’s only going to happen when good buyers and good sellers can complete a transaction.
When we met at the property, I brought both of you a brief synopsis of comparable properties and a quick opinion of value. Obviously, I knew (and expected) you would both do your own research but thought you would come close to my opinion. What happened??? Having lived in the neighborhood for 6 years and sold numerous homes in here, I am well aware of current values. In fact, 4 of the 6 comps you used in your appraisal were MY LISTINGS, yet you never called me for additional details on the homes. Ultimately, you made quite a few mistakes on the appraisal that required me to write a written appeal asking for corrections – but it was too late at that point.
Putting your incompetence aside, you wouldn't know that my seller lost his wife of 30 years about 18 months ago. He is battling cancer himself and his house was just too big and filled with too many memories of his soul mate. Not that you knew (but maybe deduced from public records), he was also bringing $50,000+ to the closing table to get the deal done. Ultimately, the home appraised as it should have – on the THIRD APPRAISAL - after 2 wildly inaccurate appraisals blew apart 2 different contracts. When you fail to complete your due diligence and sign off on that error-riddled appraisal, you are affecting people’s lives immeasureably.
If you are from across the Bay and unfamiliar with our area, why wouldn’t you take assistance from a “neighborhood expert”? Your terse response to my comps, “I’m not allowed to speak with you” is not quite accurate. Other appraisers have told me the law does allow you to consult with experts in the area to arrive at a reasonable fair market value. Just because a bank orders the appraisal from you doesn’t mean you automatically know our area…
In the end, it all worked out. The Buyer and Seller closed the deal for quite a bit more than your appraisals came in at. When you’re doing future appraisals, please consider speaking with the listing agent and enlisting their knowledge to help you accurately produce an appraisal. If you aren’t sure of a home’s features or have questions about the comps, PLEASE ASK…we are on your team and will get you whatever information you need.
To those 2 appraisers (I use that label loosely), please re-assign the appraisal if you see me listed as contact for the appraisal. I don’t want to work with you in the future. I want to work with professionals who show a willingness to understand our market and will complete an accurate appraisal of fair market value.
AN OPEN LETTER TO THE 2 APPRAISERS WHO SHOULD HAVE THEIR LICENSE REVOKED
First, I want to say to all the competent and professional appraisers I have had the pleasure of meeting and chatting with: You are a complement to your profession and we, as realtors, appreciate the hard work you put into your occupation.
Now, to the 2 appraisers who sent in mistake-riddled appraisals on a recent deal and NEARLY prevented my seller from selling, SHAME ON YOU! It’s not about you, it’s not about me, or the other realtor, or the mortgage co, etc. It’s about the Seller and the Buyer. Period. Their dreams, their goals, their aspirations…and yet you trample them without a moment’s thought (or so your appraisal made it seem).
I know you have taken a lot of heat over the market taking a dive. But that’s water under the bridge. It’s up to us to bring this market back and that’s only going to happen when good buyers and good sellers can complete a transaction.
When we met at the property, I brought both of you a brief synopsis of comparable properties and a quick opinion of value. Obviously, I knew (and expected) you would both do your own research but thought you would come close to my opinion. What happened??? Having lived in the neighborhood for 6 years and sold numerous homes in here, I am well aware of current values. In fact, 4 of the 6 comps you used in your appraisal were MY LISTINGS, yet you never called me for additional details on the homes. Ultimately, you made quite a few mistakes on the appraisal that required me to write a written appeal asking for corrections – but it was too late at that point.
Putting your incompetence aside, you wouldn't know that my seller lost his wife of 30 years about 18 months ago. He is battling cancer himself and his house was just too big and filled with too many memories of his soul mate. Not that you knew (but maybe deduced from public records), he was also bringing $50,000+ to the closing table to get the deal done. Ultimately, the home appraised as it should have – on the THIRD APPRAISAL - after 2 wildly inaccurate appraisals blew apart 2 different contracts. When you fail to complete your due diligence and sign off on that error-riddled appraisal, you are affecting people’s lives immeasureably.
If you are from across the Bay and unfamiliar with our area, why wouldn’t you take assistance from a “neighborhood expert”? Your terse response to my comps, “I’m not allowed to speak with you” is not quite accurate. Other appraisers have told me the law does allow you to consult with experts in the area to arrive at a reasonable fair market value. Just because a bank orders the appraisal from you doesn’t mean you automatically know our area…
In the end, it all worked out. The Buyer and Seller closed the deal for quite a bit more than your appraisals came in at. When you’re doing future appraisals, please consider speaking with the listing agent and enlisting their knowledge to help you accurately produce an appraisal. If you aren’t sure of a home’s features or have questions about the comps, PLEASE ASK…we are on your team and will get you whatever information you need.
To those 2 appraisers (I use that label loosely), please re-assign the appraisal if you see me listed as contact for the appraisal. I don’t want to work with you in the future. I want to work with professionals who show a willingness to understand our market and will complete an accurate appraisal of fair market value.
Tuesday, May 25, 2010
Reports are coming in that our home sales in the Tampa area were UP 27% to get in under the deadline for the Homebuyer Tax Credit. Average sale prices were also reported to be UP 1% in April as well.
MLS MONTHLY REPORT APR ‘10
TAMPA BAY AREA (tri-county)
Homes Condos Total Units
Total Units Available: 17,611 8,627 26,238
Total Units Pending: 4,292 1534 5,826
Total Units Sold: 2,401 , 963 3,364
Absorption rate: 13.63% 11.16% 12.82%
Avg Days on Market 90 days 100 days 93 days
Months of Inventory 7.3 mons 9.0 mons 7.8 mons
Sold vs List Price % 94% 93% 94%
Sold vs Original List Price % 84% 85% 84%
PINELLAS COUNTY Homes Condos Total Units
Total Units Available: 6,382 5,355 11,737
Total Units Pending: 1380 770 2150
Total Units Sold: 851 556 1407
Absorption rate: 13.33% 10.38% 11.99%
Avg Days on Market 84 days 100 days 90 days
Months of Inventory 7.5 mons 9.6 mons 8.3 mons
Sold vs List Price % 92% 93 % 93%
Sold vs Original List Price % 86% 85% 86%
N. BEACHES (476-478, 370-375)
Homes Condos Total Units
Total Units Available: 570 1419 1,989
Total Units Pending: 73 171 244
Total Units Sold: 43 113 156
Absorption rate: 7.54% 7.96% 7.84%
Avg Days on Market 107 days 113 days 112 days
Months of Inventory 13.3 mons 12.6 mons 12.8 mons
Sold vs List Price % 90% 92% 91%
Sold vs Original List Price % 84 % 85% 85%
Sunday, May 16, 2010
I ran into a conundrum recently that I had not experienced before. Our business is a good part “ethics” and also “best practices”, which sometimes change with the times.
I had a buyer client recently who came to me as a referral. The husband and wife (not material to the story) wanted to look at urban condos as they were are planning on settling in the area. I picked out a half dozen nicely-priced, top-end properties in their price range in different areas as they are somewhat familiar with the area, but not intimately so.
During my buyer pre-interview, where I ask questions of the Buyer that will help me understand their motives and goals better, I found out they were looking to retire in 3-6 months and had a property to sell in another state. Not a problem – it’s actually quite common for Florida buyers.
Halfway through our showings, we viewed a unit where the owner was home. Buyers asked the right questions and seller had the right answers. They had a lot in common and we spent about 30 minutes exploring the home – the buyers really liked it. As we were leaving, the buyers casually mentioned they would be retiring in the next 1-2 YEARS and are not looking to buy right now. I cringed immediately, out of surprise and a little embarrassment. 1-2 YEARS? I had been told 3-6 months?!? I could tell the seller was taken aback, as was I.
About an hour later, I received the phone call I was dreading. It was Mr. Seller. His first question, which I had already contemplated, was, “Why did you waste my time with a buyer who isn’t ready to buy?”
After informing him I was as flabbergasted as he was and that the timeframe quoted to him differed greatly from the timeframe I was told, I apologized profusely for taking up his time.
Upon ending our conversation, I mulled over the “ethics” (maybe not the best word for this situation) and “best practices” of showing buyers properties. Normally, realtors show properties to buyers who are ready to buy. But what about nurturing those inquisitive buyers who are making the transition?
Do we flat out tell them we can’t show property unless they are ready to write an offer? Hard to keep clientele that way, as my goal is to meet my clients’ needs.
Do we only show them vacant properties so as not to inconvenience sellers? Hardly a way to accurately see available inventory.
Do we tell the sellers/listing realtors up front that the buyers are not looking to buy immediately but want to see their home? They could only see it as a waste of their time.
Do we not worry about it, as sellers are marketing their home with the expectation of selling to someone? That’s not fair to sellers.
HOW do we nurture buyers who aren’t ready to write quite yet but want to see what’s available in a particular area and see price/value trends in that area?
My conclusion is that there is no correct answer. It’s one of those sticky situations that doesn’t come up often.
Being a realtor is often about making judgment calls, as there are many “gray” areas in our business. Ultimately, we represent our client(s) and should act in their best interest. Maybe that’s the answer…
I had a buyer client recently who came to me as a referral. The husband and wife (not material to the story) wanted to look at urban condos as they were are planning on settling in the area. I picked out a half dozen nicely-priced, top-end properties in their price range in different areas as they are somewhat familiar with the area, but not intimately so.
During my buyer pre-interview, where I ask questions of the Buyer that will help me understand their motives and goals better, I found out they were looking to retire in 3-6 months and had a property to sell in another state. Not a problem – it’s actually quite common for Florida buyers.
Halfway through our showings, we viewed a unit where the owner was home. Buyers asked the right questions and seller had the right answers. They had a lot in common and we spent about 30 minutes exploring the home – the buyers really liked it. As we were leaving, the buyers casually mentioned they would be retiring in the next 1-2 YEARS and are not looking to buy right now. I cringed immediately, out of surprise and a little embarrassment. 1-2 YEARS? I had been told 3-6 months?!? I could tell the seller was taken aback, as was I.
About an hour later, I received the phone call I was dreading. It was Mr. Seller. His first question, which I had already contemplated, was, “Why did you waste my time with a buyer who isn’t ready to buy?”
After informing him I was as flabbergasted as he was and that the timeframe quoted to him differed greatly from the timeframe I was told, I apologized profusely for taking up his time.
Upon ending our conversation, I mulled over the “ethics” (maybe not the best word for this situation) and “best practices” of showing buyers properties. Normally, realtors show properties to buyers who are ready to buy. But what about nurturing those inquisitive buyers who are making the transition?
Do we flat out tell them we can’t show property unless they are ready to write an offer? Hard to keep clientele that way, as my goal is to meet my clients’ needs.
Do we only show them vacant properties so as not to inconvenience sellers? Hardly a way to accurately see available inventory.
Do we tell the sellers/listing realtors up front that the buyers are not looking to buy immediately but want to see their home? They could only see it as a waste of their time.
Do we not worry about it, as sellers are marketing their home with the expectation of selling to someone? That’s not fair to sellers.
HOW do we nurture buyers who aren’t ready to write quite yet but want to see what’s available in a particular area and see price/value trends in that area?
My conclusion is that there is no correct answer. It’s one of those sticky situations that doesn’t come up often.
Being a realtor is often about making judgment calls, as there are many “gray” areas in our business. Ultimately, we represent our client(s) and should act in their best interest. Maybe that’s the answer…
Wednesday, April 28, 2010
It's rewarding for everyone to receive kudos for the job they do. I wanted to share a quick note I received that illustrates a Realtor's importance...our knowledge extends past getting a property from contract to closing.
Rich,
Dick and I, want to thank you for recommending Dan Butts, Insurance Co.
Citizens Ins. sold (or transferred) our policy to Homeowners Choice Prop. and
Causality and we received our copy of the policy on Friday. I took the time to
read it and told Dick that I thought we had a real problem, so I phoned them
yesterday to ask questions about our coverage and the woman was rude and could
not quote a price on changes we wanted to make. She said it could be $300, $500
or even $1000.00 difference in price and we could not make changes until the
policy was renewed next year. What a nightmare that was, knowing that we could
possibly not have adequate coverage with our hurricane deductible at 5%.
So, I called today and Sandy was so nice and after faxing copies of our declarations
to her on the homeowners and flood insurance she called back with all the answers.
Basically, if I had not read the policy and taken the time to check into it, she said that if we had any damage from that storm Sunday, that we would not be covered. She went over everything with us and is taking care of all of it for us to see that we have the coverage we need with very minimal increase in our premiums. She told us to contact JNR Inspections to come out and inspect our home which they are doing this Thursday.
Sandy is going to cancel our policy with Homeowners Choice and take one out with Citizens and we do not have to wait until renewal. I believe she was surprised at what coverage we actually had which was not much and recommended what we should have.
The whole scenario is that it could have been disastrous to us had you not referred us to them. I feel comfortable knowing that we will have the coverage we need to protect us given just about any situation. Sandy was very polite and courteous and is going to take care of it and set it all up for us.
We cannot thank you enough Rich, for you help in this matter. Makes me wonder just how many people out there have that coverage and is not aware.
Again, Thank You,
Dick & Carrol
Rich,
Dick and I, want to thank you for recommending Dan Butts, Insurance Co.
Citizens Ins. sold (or transferred) our policy to Homeowners Choice Prop. and
Causality and we received our copy of the policy on Friday. I took the time to
read it and told Dick that I thought we had a real problem, so I phoned them
yesterday to ask questions about our coverage and the woman was rude and could
not quote a price on changes we wanted to make. She said it could be $300, $500
or even $1000.00 difference in price and we could not make changes until the
policy was renewed next year. What a nightmare that was, knowing that we could
possibly not have adequate coverage with our hurricane deductible at 5%.
So, I called today and Sandy was so nice and after faxing copies of our declarations
to her on the homeowners and flood insurance she called back with all the answers.
Basically, if I had not read the policy and taken the time to check into it, she said that if we had any damage from that storm Sunday, that we would not be covered. She went over everything with us and is taking care of all of it for us to see that we have the coverage we need with very minimal increase in our premiums. She told us to contact JNR Inspections to come out and inspect our home which they are doing this Thursday.
Sandy is going to cancel our policy with Homeowners Choice and take one out with Citizens and we do not have to wait until renewal. I believe she was surprised at what coverage we actually had which was not much and recommended what we should have.
The whole scenario is that it could have been disastrous to us had you not referred us to them. I feel comfortable knowing that we will have the coverage we need to protect us given just about any situation. Sandy was very polite and courteous and is going to take care of it and set it all up for us.
We cannot thank you enough Rich, for you help in this matter. Makes me wonder just how many people out there have that coverage and is not aware.
Again, Thank You,
Dick & Carrol
Monday, April 26, 2010
Excruciating...frustrating...nails-on-chalkboard...
That may very well describe every realtors job these days. If a realtor is not experiencing these emotions, I claim they are not really working!
I always like to say that I will take real-life situations and store them away as a teaching "moment". I had one occur recently that has thrown me (and my clients) for a loop and really caused some heartache.
Long story short, Buyer contracted to purchase a beautiful pond-front home that has recently been remodeled. Seller got it at foreclosure, did some very nice things, and put it on the market. All well and good...
...that is, until today. I get a call from the title company closing the deal who proceeds to inform me/wreck my day that the home has an OPEN mortgage on it. Huh? Apparently, only 1 mortgage was foreclosed on and the other mortgage remained open and in force. Ugh.
The delicious topping on this was that the mortgage that was foreclosed on was riddled with errors relating to the legal property description...those, too, must be corrected.
This is an excellent illustration of CAVEAT EMPTOR, or Buyer Beware. Some people believe that when a property is purchased at county auction due to foreclosure, the property is free and clear. It's not. IRS liens MAY stay with a property until satisfied or negotiated. If the 2nd mortgage is foreclosed on and a buyer outbids the 2nd, then the Buyer takes title SUBJECT TO the 1st mortgage. Utility liens normally stay on past foreclosure.
One MUST due a quick and dirty title search, at the very least, before purchasing a property at auction. That is the only way to know the true picture. This is not true, however, if the property is bank-owned. Normally the proper channels have been followed and title is clear of defects.
Will let you know how this turns out...
That may very well describe every realtors job these days. If a realtor is not experiencing these emotions, I claim they are not really working!
I always like to say that I will take real-life situations and store them away as a teaching "moment". I had one occur recently that has thrown me (and my clients) for a loop and really caused some heartache.
Long story short, Buyer contracted to purchase a beautiful pond-front home that has recently been remodeled. Seller got it at foreclosure, did some very nice things, and put it on the market. All well and good...
...that is, until today. I get a call from the title company closing the deal who proceeds to inform me/wreck my day that the home has an OPEN mortgage on it. Huh? Apparently, only 1 mortgage was foreclosed on and the other mortgage remained open and in force. Ugh.
The delicious topping on this was that the mortgage that was foreclosed on was riddled with errors relating to the legal property description...those, too, must be corrected.
This is an excellent illustration of CAVEAT EMPTOR, or Buyer Beware. Some people believe that when a property is purchased at county auction due to foreclosure, the property is free and clear. It's not. IRS liens MAY stay with a property until satisfied or negotiated. If the 2nd mortgage is foreclosed on and a buyer outbids the 2nd, then the Buyer takes title SUBJECT TO the 1st mortgage. Utility liens normally stay on past foreclosure.
One MUST due a quick and dirty title search, at the very least, before purchasing a property at auction. That is the only way to know the true picture. This is not true, however, if the property is bank-owned. Normally the proper channels have been followed and title is clear of defects.
Will let you know how this turns out...
Wednesday, April 14, 2010
We're making progress now!
All sectors of Tampa Bay real estate (non-commercial) have shown dramatic increases in sales volume. Inland, both Single Family Home and Condo sales increased anywhere from 3 - 5 percentage points compared to last month.
The beach, which has been practically on life support, DOUBLED in sales volume!
Are we out of the woods - hardly. Is the forest "thinning"? Seems to be.
Below are the numbers for March for the TB area:
MLS MONTHLY REPORT MAR ‘10
TAMPA BAY AREA (tri-county) Homes Condos Total Units
Total Units Available: 17,931 8,948 26,879
Total Units Pending: 3,728 1393 5,121
Total Units Sold: 2,263 916 3,179
Absorption rate: 12.62% 10.24% 11.83%
Avg Days on Market 93 days 107 days 97 days
Months of Inventory 7.9 mons9.8 mons 8.5 mons
Sold vs List Price % 93% 93% 93%
Sold vs Original List Price % 75% 86% 77%
PINELLAS COUNTY Homes Condos Total Units
Total Units Available: 6,483 5,489 11,972
Total Units Pending: 1213 696 1909
Total Units Sold: 763 503 1266
Absorption rate: 11.77% 9.16% 10.57%
Avg Days on Market 80 days 102 days 89 days
Months of Inventory 8.5 mons 10.9 mons 9.5 mons
Sold vs List Price % 91% 93% 92%
Sold vs Original List Price % 78% 87% 82%
N. BEACHES (476-478, 370-375) Homes Condos Total Units
Total Units Available: 600 1428 2,028
Total Units Pending: 69 136 205
Total Units Sold: 37 104 141
Absorption rate: 6.17% 7.28% 6.95%
Avg Days on Market 95 days 87 days 89 days
Months of Inventory 16.2 mons 13.7 mons 14.4 mons
Sold vs List Price % 85% 93% 91%
Sold vs Original List Price % 76% 89% 85%
All sectors of Tampa Bay real estate (non-commercial) have shown dramatic increases in sales volume. Inland, both Single Family Home and Condo sales increased anywhere from 3 - 5 percentage points compared to last month.
The beach, which has been practically on life support, DOUBLED in sales volume!
Are we out of the woods - hardly. Is the forest "thinning"? Seems to be.
Below are the numbers for March for the TB area:
MLS MONTHLY REPORT MAR ‘10
TAMPA BAY AREA (tri-county) Homes Condos Total Units
Total Units Available: 17,931 8,948 26,879
Total Units Pending: 3,728 1393 5,121
Total Units Sold: 2,263 916 3,179
Absorption rate: 12.62% 10.24% 11.83%
Avg Days on Market 93 days 107 days 97 days
Months of Inventory 7.9 mons9.8 mons 8.5 mons
Sold vs List Price % 93% 93% 93%
Sold vs Original List Price % 75% 86% 77%
PINELLAS COUNTY Homes Condos Total Units
Total Units Available: 6,483 5,489 11,972
Total Units Pending: 1213 696 1909
Total Units Sold: 763 503 1266
Absorption rate: 11.77% 9.16% 10.57%
Avg Days on Market 80 days 102 days 89 days
Months of Inventory 8.5 mons 10.9 mons 9.5 mons
Sold vs List Price % 91% 93% 92%
Sold vs Original List Price % 78% 87% 82%
N. BEACHES (476-478, 370-375) Homes Condos Total Units
Total Units Available: 600 1428 2,028
Total Units Pending: 69 136 205
Total Units Sold: 37 104 141
Absorption rate: 6.17% 7.28% 6.95%
Avg Days on Market 95 days 87 days 89 days
Months of Inventory 16.2 mons 13.7 mons 14.4 mons
Sold vs List Price % 85% 93% 91%
Sold vs Original List Price % 76% 89% 85%
Monday, March 29, 2010
This article is for the condo buyers out there...yes, people are still buying condos, some by the boatload. With the condominium market feeling some of the hardest hits this market has to offer, prices make them ripe for the picking.
However, buyers need to do their due diligence. Increased foreclosures have lead to a deficiency in the condo fee revenue taken in by condo associations. This adversely affects the appearance of the complex, the maintenance of the complex, and the operations of the condo complex. A decrease in the amount of operating funds MAY also lead to increased fees for unit owners OR a special assessment to make up the shortfall. Only in dire situations does the Association declare bankruptcy or dissolve, which can be catastrophic for owners.
Florida state law allows Buyers 3 business days (on existing condos) to review the following:
1. Condo rules, regs, and governing documents
2. Articles of Incorporation
3. Condo Questionnaire, aka Q & A
4. LATEST YEAR END FINANCIALS
With respect to #4, this is the most important info a buyer can receive. However, it can also be outdated and misleading. Imagine a scenario where a buyer is purchasing a condo in December 2010. By law, they must be given the latest year-end financials, that being 2009. If the Association has experienced a rash of non-payment of dues or foreclosures resulting in unpaid monthly fees, the full story may not be in those 2009 financials. So how do you get the full story?
1. If the complex has a website, explore it thoroughly. Some allow visitors to examine their docs and financials. Most likely, those documents will be reserved for residents, but there is a chance you can see them.
2. Ask for the approved financial statement from latest month available. It should include a balance sheet with year-to-date and budgeted amounts as well as a Profit and Loss statement. Some complexes mail to owners so the seller may be able to provide.
3. Ask for Board meeting minutes going back 6-12 months. This will give you insight into any financial issues cropping up OR whether a special assessment is coming down the pike.
4. Speak with a Board member. As a President of a large HOA with a $350,000 annual budget, I am always willing to discuss our finances with potential residents. After all, they will stake in the financial viability of our association. Board members are more in tune with finances and maintenance issues which may lead to increased fees or special assessments.
5. Speak with a resident. Living in a small community, unit owners are normally in tune with the latest news - and many are willing to share that info, especially to new buyers. However, use caution - rumors and false info can sometimes be propagated by residents as the truth. Verify all info.
6. Speak with the condo management company if they have one. Call the company and find out who is in charge of your particular complex or building. Remember, they are super-busy and normally stressed so BE COURTEOUS. If you have a lot of questions, offer to email them to the manager.
However, buyers need to do their due diligence. Increased foreclosures have lead to a deficiency in the condo fee revenue taken in by condo associations. This adversely affects the appearance of the complex, the maintenance of the complex, and the operations of the condo complex. A decrease in the amount of operating funds MAY also lead to increased fees for unit owners OR a special assessment to make up the shortfall. Only in dire situations does the Association declare bankruptcy or dissolve, which can be catastrophic for owners.
Florida state law allows Buyers 3 business days (on existing condos) to review the following:
1. Condo rules, regs, and governing documents
2. Articles of Incorporation
3. Condo Questionnaire, aka Q & A
4. LATEST YEAR END FINANCIALS
With respect to #4, this is the most important info a buyer can receive. However, it can also be outdated and misleading. Imagine a scenario where a buyer is purchasing a condo in December 2010. By law, they must be given the latest year-end financials, that being 2009. If the Association has experienced a rash of non-payment of dues or foreclosures resulting in unpaid monthly fees, the full story may not be in those 2009 financials. So how do you get the full story?
1. If the complex has a website, explore it thoroughly. Some allow visitors to examine their docs and financials. Most likely, those documents will be reserved for residents, but there is a chance you can see them.
2. Ask for the approved financial statement from latest month available. It should include a balance sheet with year-to-date and budgeted amounts as well as a Profit and Loss statement. Some complexes mail to owners so the seller may be able to provide.
3. Ask for Board meeting minutes going back 6-12 months. This will give you insight into any financial issues cropping up OR whether a special assessment is coming down the pike.
4. Speak with a Board member. As a President of a large HOA with a $350,000 annual budget, I am always willing to discuss our finances with potential residents. After all, they will stake in the financial viability of our association. Board members are more in tune with finances and maintenance issues which may lead to increased fees or special assessments.
5. Speak with a resident. Living in a small community, unit owners are normally in tune with the latest news - and many are willing to share that info, especially to new buyers. However, use caution - rumors and false info can sometimes be propagated by residents as the truth. Verify all info.
6. Speak with the condo management company if they have one. Call the company and find out who is in charge of your particular complex or building. Remember, they are super-busy and normally stressed so BE COURTEOUS. If you have a lot of questions, offer to email them to the manager.
Monday, March 22, 2010
If you're a Buyer today, you've probably heard of an FHA loan.
Administrated by the Dept of Housing and Urban Development, the Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. (www.fha.gov)
In order to get an FHA loan, the property must be approved. If your shopping for condos or TH's, you will need to ensure the complex has been "FHA-approved". The approval process involves examines the complex's governing documents and other related documentation to ensure it meets HUD guidelines. In the past, units in complexes that were NOT approved were able to receive "spot approval". That option has faded as the popularity of FHA loans, which loan Buyers up to 3.5%, has soared.
So how do you go about finding an FHA-approved condo?
Visit https://entp.hud.gov/idapp/html/condlook.cfm
Looking at Largo, FL, as an example, you will find the following complexes approved for FHA loans:
1. Via Verde
2. Brittany's Place
3. Lafayette Square
4. Autumn Chase
5. Shadow Lakes
6. Whispering Palms
It's a very small list but very valuable - units in these complexes can get quick 96.5% financing.
In the coming months, FHA loans will be overhauled to lower their overall risk. For Buyers with credit scores "on the bubble" or who barely meet qualifying guidelines should move quickly to utilize an FHA loan before more rigorous standards are adopted.
Administrated by the Dept of Housing and Urban Development, the Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. (www.fha.gov)
In order to get an FHA loan, the property must be approved. If your shopping for condos or TH's, you will need to ensure the complex has been "FHA-approved". The approval process involves examines the complex's governing documents and other related documentation to ensure it meets HUD guidelines. In the past, units in complexes that were NOT approved were able to receive "spot approval". That option has faded as the popularity of FHA loans, which loan Buyers up to 3.5%, has soared.
So how do you go about finding an FHA-approved condo?
Visit https://entp.hud.gov/idapp/html/condlook.cfm
Looking at Largo, FL, as an example, you will find the following complexes approved for FHA loans:
1. Via Verde
2. Brittany's Place
3. Lafayette Square
4. Autumn Chase
5. Shadow Lakes
6. Whispering Palms
It's a very small list but very valuable - units in these complexes can get quick 96.5% financing.
In the coming months, FHA loans will be overhauled to lower their overall risk. For Buyers with credit scores "on the bubble" or who barely meet qualifying guidelines should move quickly to utilize an FHA loan before more rigorous standards are adopted.
Monday, March 15, 2010
Ok, so you're realtor just called. That beautiful 3/2/1 Mediterranean-styled TH just went under contract, even though you only saw it this morning. Seems the seller signed right after your showing...and you just missed the opportunity of a lifetime, right?
Wrong.
If you have a savvy realtor, he or she should be advising you to MAKE A BACKUP OFFER!
"Oh, not a backup offer," you say, " they take up too much time and you might never get the property."
Um, hello...isn't that the definition of all short sales????
Let me enlighten you, without charge, to one of the little short sale secrets in our business...the FIRST buyer RARELY gets the home...it's normally the SECOND but most likely the THIRD buyer who puts an offer in that gets it.
Now this may be hard to believe, but let me illustrate w/ Buyer A, B, & C.
Buyer A is hitting the streets hard...they know everything out there, are waving their mortgage pre-approval letter at anyone who will notice, and have written about 4 offers that have gotten nowhere. I just listed that beautiful 3/2/1 Med-styled TH at a competitive price that I can justify (the key!). Buyer A comes screaming in 3 days after it hits the market and write an offer on the hood of their agent's car (yeah, that used to happen). The seller executes the offer and then....
...they wait...
...and wait...
...and wait some more.
Days pass, then a couple weeks, and now a month. They get an update every once and a while - the bank this or the bank that. No negotiator, no BPO done yet. So they wait some more...
In the meantime, Buyer A keeps hoping (and shopping).
Buyer B comes along after about 5 weeks of my listing being on the market and they love it, too. Perfect for their first home. I tell the agent there's an offer in place but NO BACKUPS. Buyer B thinks about it, thinks some more, but just can't get the motivation to put in that backup. After all, backup's never work out.
About 7 weeks into it, we get the BPO done and a negotiator assigned. Buyer A gets a momentary blur of excitement. And then waits some more. Oh, a new TH just came on the market for $10k and it's NOT a short sale...hmmm.
At about Week 8, Buyer C comes through. They are savvy, know about the contract in place, have asked how long the 1st contract has been in place, and that there are no backups. They put in a backup BUT decide to keep shopping. Now they have reserved a spot and all they have to do is serve written notice if they want to cancel...done deal.
About this time, Buyer B (or D, E, F, etc) comes back...but it's too late. You can be a 2nd backup, which still isnt bad, but your odds are much less). Buyer A has emotionally moved on...they pull their contract. Buyer C slides right into 1st place, the bank negotiator substitutes their name into the deal, and 2 - 4 weeks later, I email them the approval letter.
This happens ALL DAY LONG. So don't be an "B"...if you can't be an "A" then be a "C" and cash in on everyone else's time and waiting!
Wrong.
If you have a savvy realtor, he or she should be advising you to MAKE A BACKUP OFFER!
"Oh, not a backup offer," you say, " they take up too much time and you might never get the property."
Um, hello...isn't that the definition of all short sales????
Let me enlighten you, without charge, to one of the little short sale secrets in our business...the FIRST buyer RARELY gets the home...it's normally the SECOND but most likely the THIRD buyer who puts an offer in that gets it.
Now this may be hard to believe, but let me illustrate w/ Buyer A, B, & C.
Buyer A is hitting the streets hard...they know everything out there, are waving their mortgage pre-approval letter at anyone who will notice, and have written about 4 offers that have gotten nowhere. I just listed that beautiful 3/2/1 Med-styled TH at a competitive price that I can justify (the key!). Buyer A comes screaming in 3 days after it hits the market and write an offer on the hood of their agent's car (yeah, that used to happen). The seller executes the offer and then....
...they wait...
...and wait...
...and wait some more.
Days pass, then a couple weeks, and now a month. They get an update every once and a while - the bank this or the bank that. No negotiator, no BPO done yet. So they wait some more...
In the meantime, Buyer A keeps hoping (and shopping).
Buyer B comes along after about 5 weeks of my listing being on the market and they love it, too. Perfect for their first home. I tell the agent there's an offer in place but NO BACKUPS. Buyer B thinks about it, thinks some more, but just can't get the motivation to put in that backup. After all, backup's never work out.
About 7 weeks into it, we get the BPO done and a negotiator assigned. Buyer A gets a momentary blur of excitement. And then waits some more. Oh, a new TH just came on the market for $10k and it's NOT a short sale...hmmm.
At about Week 8, Buyer C comes through. They are savvy, know about the contract in place, have asked how long the 1st contract has been in place, and that there are no backups. They put in a backup BUT decide to keep shopping. Now they have reserved a spot and all they have to do is serve written notice if they want to cancel...done deal.
About this time, Buyer B (or D, E, F, etc) comes back...but it's too late. You can be a 2nd backup, which still isnt bad, but your odds are much less). Buyer A has emotionally moved on...they pull their contract. Buyer C slides right into 1st place, the bank negotiator substitutes their name into the deal, and 2 - 4 weeks later, I email them the approval letter.
This happens ALL DAY LONG. So don't be an "B"...if you can't be an "A" then be a "C" and cash in on everyone else's time and waiting!
Sunday, March 07, 2010
Taking a step back and looking at the big picture, why are all these banks PROACTIVELY committing resources to allow borrowers to renege on millions and millions of dollars of legal mortgages? These lenders literally employee 1000's of people for the sole purpose of assisting borrowers with "getting out" of mortgages where they might owe tens and perhaps HUNDREDS of thousands of dollars.
The sole reason: there are 100,000's of homes fitting this description and this tidal wave will swamp our real estate landscape should it go unaddressed.
So why not just ramp up their REO departments to handle this "flood" of foreclosed homes? Actually, there are a couple of reasons...
1) Lending standards and "book" balances. Per lending regulations, however LOOSE they mayy be to some, lenders can only have a maximum amount of bank-owned property on their books at anyone time, otherwise they become restricted in the amount of money they can loan. By doing a short sale, they circumvent this restriction as they never take ownership of the property and can continue loaning money to make money.
2) Actual cost. Sure, the foreclosure process "punishes" the homeowner by ripping their home from them in a most publicly humiliating way, branding them with a scarlet "F". But when the smoke clears, the bank is now the brand new owner of a home it doesn't care a bit about BUT had to invest in to get it back only to sell it. From foreclosure legal fees to appraisal costs to rehab costs to satisfying municipal liens to insurance and tax costs to REO closing costs, these are all ADDITIONAL expenditures a lender must make in order to take the home back and then divest it from their books.
3) Overall cost: The latest figures show that on average, short sales are selling for about 17% BELOW MARKET, which normally reflects buying the property as-is and costs to rehab it after closing. Why would they ever want to sell a property at that much of a discount? Because the going rate for a BANK-OWNED home is about 30% below market. So after spending all that money to take the property back, they take an even LARGER hit selling it themselves.
4) Owner-occupied vs. vacant. You probably know a homeowner who is upside down on a mortgage and may be living payment-free. I'm not addressing that moral dilemma. However, processing a short sale where the owner is still in the property, paying utilities and providing even minima of upkeep is preferential to a VACANT bank-owned home which may have been vandalized BEFORE the foreclosure auction out of spite of AFTER the auction out of mischief. Obviously not all short sales are owner occupied, but all short sales have at least a realtor trying to sell the property, thus keeping tabs on it.
I say all that to say this - when you are buying a short sale, don't think the bank is doing you a favor. Know that you are doing the BANK and borrower a favor.
The sole reason: there are 100,000's of homes fitting this description and this tidal wave will swamp our real estate landscape should it go unaddressed.
So why not just ramp up their REO departments to handle this "flood" of foreclosed homes? Actually, there are a couple of reasons...
1) Lending standards and "book" balances. Per lending regulations, however LOOSE they mayy be to some, lenders can only have a maximum amount of bank-owned property on their books at anyone time, otherwise they become restricted in the amount of money they can loan. By doing a short sale, they circumvent this restriction as they never take ownership of the property and can continue loaning money to make money.
2) Actual cost. Sure, the foreclosure process "punishes" the homeowner by ripping their home from them in a most publicly humiliating way, branding them with a scarlet "F". But when the smoke clears, the bank is now the brand new owner of a home it doesn't care a bit about BUT had to invest in to get it back only to sell it. From foreclosure legal fees to appraisal costs to rehab costs to satisfying municipal liens to insurance and tax costs to REO closing costs, these are all ADDITIONAL expenditures a lender must make in order to take the home back and then divest it from their books.
3) Overall cost: The latest figures show that on average, short sales are selling for about 17% BELOW MARKET, which normally reflects buying the property as-is and costs to rehab it after closing. Why would they ever want to sell a property at that much of a discount? Because the going rate for a BANK-OWNED home is about 30% below market. So after spending all that money to take the property back, they take an even LARGER hit selling it themselves.
4) Owner-occupied vs. vacant. You probably know a homeowner who is upside down on a mortgage and may be living payment-free. I'm not addressing that moral dilemma. However, processing a short sale where the owner is still in the property, paying utilities and providing even minima of upkeep is preferential to a VACANT bank-owned home which may have been vandalized BEFORE the foreclosure auction out of spite of AFTER the auction out of mischief. Obviously not all short sales are owner occupied, but all short sales have at least a realtor trying to sell the property, thus keeping tabs on it.
I say all that to say this - when you are buying a short sale, don't think the bank is doing you a favor. Know that you are doing the BANK and borrower a favor.
Tuesday, March 02, 2010
By now you have heard...January home sales were waaaayyyy down. By my calculations, sales in ALL sectors - homes, condos, beach, mainland, etc - were down 40%-50%.
What does this portend?? Well, that "V"-shaped recovery is an extended "U". I think is was a typical post-holiday lull complicated by record low temps (man, was it cold showing houses) coupled w/ a slowly declining market. I think we'll see more "normal" (a term I use very loosely) numbers in Feb and beyond.
The bugger in the covers are now the appraisals. Arms length sellers and buyers are watching their dreams evaporate thanks to new mortgage rules that require ZERO communication between sellers, buyers, realtors, mortgage brokers, etc. This rule would have been great 4-5 years ago but there are few who believe they can get away with mortgage fraud these days...which is what these rules aim to eliminate. Now, it's the regular joes like you and me who can't move on with their lives because some appraisers are UNWILLING to correctly value our homes.
What does this portend?? Well, that "V"-shaped recovery is an extended "U". I think is was a typical post-holiday lull complicated by record low temps (man, was it cold showing houses) coupled w/ a slowly declining market. I think we'll see more "normal" (a term I use very loosely) numbers in Feb and beyond.
The bugger in the covers are now the appraisals. Arms length sellers and buyers are watching their dreams evaporate thanks to new mortgage rules that require ZERO communication between sellers, buyers, realtors, mortgage brokers, etc. This rule would have been great 4-5 years ago but there are few who believe they can get away with mortgage fraud these days...which is what these rules aim to eliminate. Now, it's the regular joes like you and me who can't move on with their lives because some appraisers are UNWILLING to correctly value our homes.
Monday, February 22, 2010
With +/- 25 listings at any given time, ensuring hat my sellers are putting their best foot forward is always a priority with me. Our markets are seeing double and triple the normal amount of inventory, which means your home can get lost in the crowd! Everyone knows Sellers should de-personalize their home, light candles, blah, blah, blah. Ok, those things work, but can you tip the scales in your favor in addition to those tried-and-true selling techniques?
I think you can and I'm going to share some great ideas with you:
1) Map your home for sale with drive/walk times and distances to local restaurants or other places of interest (bike trails, malls, etc), playgrounds, schools, parks, etc. Our culture is becoming more exercise-conscious, walking-friendly, and main street centered.
2) Make a comprehensive list of all your upgrades with the year it was upgraded. Buyers love to see the years when certain items were updated - it gives them a sense of security and ability to forecast potential repair/replace issues. Don't have remodeled/replaced items on your list - - - your list price better reflect that!
3) Make a list of all contractors who normally do work on your home - plumber, electrician, roofer, pest control, etc. Having this issue shows buyers you care for your property and have a team of certified professionals to rely on.
4) This is big - assemble your last year's worth of electric bills...better yet, itemize your monthly utility bills. That's the greatest unknown when buyers are looking and putting that info out there shows you are proud of your home. Are your utility bills large? Consider making changes to you home to mitigate those costs (new insulation, low flow toilets and shower heads, new energy-efficient appliances, etc).
5) Include a copy of the last couple of monthly meeting minutes for your HOA or COA. Unless your community homeowner's association is a warzone, including meeting minutes is a great way to familiarize your potential buyer with your community.
6) ***GOOD TIP*** Ensure you have a copy of you Condo Docs/Deed Restrictions & latest Financials on hand. I always have to tell my buyers that we normally don't see condo/hoa docs until we're under contract. Analytical Buyers HATE that answer. Soothe their fears by having those docs on a personailzed thumb drive or CD.
7) Have warranty info for machanical items summarized on a separate sheet. it will give buyers great piece of mind and they may be a little more "accepting" of flaws in home inspection.
8) This one takes some coordination but can really seal the deal! Let a neighbhor know when your showings are and when the buyers arrive/depart, have that neighbor wave, say good morning, or start casual small talk. This feat req's some coordination and a personable neighbor, but it will instill a sense of belonging in your buyer and allow them to picture themselves living there.
These are just some out-of-the-box ideas - good luck!
I think you can and I'm going to share some great ideas with you:
1) Map your home for sale with drive/walk times and distances to local restaurants or other places of interest (bike trails, malls, etc), playgrounds, schools, parks, etc. Our culture is becoming more exercise-conscious, walking-friendly, and main street centered.
2) Make a comprehensive list of all your upgrades with the year it was upgraded. Buyers love to see the years when certain items were updated - it gives them a sense of security and ability to forecast potential repair/replace issues. Don't have remodeled/replaced items on your list - - - your list price better reflect that!
3) Make a list of all contractors who normally do work on your home - plumber, electrician, roofer, pest control, etc. Having this issue shows buyers you care for your property and have a team of certified professionals to rely on.
4) This is big - assemble your last year's worth of electric bills...better yet, itemize your monthly utility bills. That's the greatest unknown when buyers are looking and putting that info out there shows you are proud of your home. Are your utility bills large? Consider making changes to you home to mitigate those costs (new insulation, low flow toilets and shower heads, new energy-efficient appliances, etc).
5) Include a copy of the last couple of monthly meeting minutes for your HOA or COA. Unless your community homeowner's association is a warzone, including meeting minutes is a great way to familiarize your potential buyer with your community.
6) ***GOOD TIP*** Ensure you have a copy of you Condo Docs/Deed Restrictions & latest Financials on hand. I always have to tell my buyers that we normally don't see condo/hoa docs until we're under contract. Analytical Buyers HATE that answer. Soothe their fears by having those docs on a personailzed thumb drive or CD.
7) Have warranty info for machanical items summarized on a separate sheet. it will give buyers great piece of mind and they may be a little more "accepting" of flaws in home inspection.
8) This one takes some coordination but can really seal the deal! Let a neighbhor know when your showings are and when the buyers arrive/depart, have that neighbor wave, say good morning, or start casual small talk. This feat req's some coordination and a personable neighbor, but it will instill a sense of belonging in your buyer and allow them to picture themselves living there.
These are just some out-of-the-box ideas - good luck!
Monday, February 15, 2010
I'm going with an anti-real estate topic this week. I could wax poetically about the appraisal crisis taking place in our communities and how it's crippling our market, but instead I will focus on something lighter and more positive - our fascination with all creatures great and small.
One of those fascinating creatures is the Osprey, a bird of prey found in the Tampa Bay area. Taken for granted by those that live here (I'm guilty) these wonderful birds are awesome to watch. Living primarily on fish, it is not unusual to watch them fly with one dangling from there claws as they make their way bac to the nest.
Now, you can get up close and personal with ospreys in dunedin on the DunedinOspreyCam.com website. It features fun facts about the birds and a 24 hour all weather camera that peers into their nest!
Check it out at DunedinOspreyCam.com
One of those fascinating creatures is the Osprey, a bird of prey found in the Tampa Bay area. Taken for granted by those that live here (I'm guilty) these wonderful birds are awesome to watch. Living primarily on fish, it is not unusual to watch them fly with one dangling from there claws as they make their way bac to the nest.
Now, you can get up close and personal with ospreys in dunedin on the DunedinOspreyCam.com website. It features fun facts about the birds and a 24 hour all weather camera that peers into their nest!
Check it out at DunedinOspreyCam.com
Monday, February 08, 2010
Military sellers reimbursed for losses
WASHINGTON – Feb. 8, 2010 – Using $555 million in Recovery Act funds, the Department of Defense has expanded a program that can reimburse employees up to 90 percent of the price they paid for a primary residence to avoid a loss when they go to sell. The Department identified Florida as having the most home sellers who qualify for the program.
The Pentagon’s Housing Assistance Program now applies to:
• wounded service members relocating for treatment or medical retirement and survivors of those who have died while deployed
• military personnel and Defense Department civilians affected by the 2005 round of base closings, as a result of the Base Realignment and Closing initiative
• military personnel moving to a new base
Previously, applicants had to demonstrate that the closing of their base contributed to the decline of the area’s real estate market and a resulting loss in sales. That requirement has been waived under the expanded program.
As of Jan. 18, 2010, almost 4,000 eligible applicants for the expanded program have been identified and 429 claims have already been paid for a total $32.8 million, according to the Pentagon.
After Florida, the Defense Department says it also expects applications from California, Virginia and Georgia.
For more details about the program, including eligibility and limitations, download this PDF.
© 2010 Florida Realtors®
WASHINGTON – Feb. 8, 2010 – Using $555 million in Recovery Act funds, the Department of Defense has expanded a program that can reimburse employees up to 90 percent of the price they paid for a primary residence to avoid a loss when they go to sell. The Department identified Florida as having the most home sellers who qualify for the program.
The Pentagon’s Housing Assistance Program now applies to:
• wounded service members relocating for treatment or medical retirement and survivors of those who have died while deployed
• military personnel and Defense Department civilians affected by the 2005 round of base closings, as a result of the Base Realignment and Closing initiative
• military personnel moving to a new base
Previously, applicants had to demonstrate that the closing of their base contributed to the decline of the area’s real estate market and a resulting loss in sales. That requirement has been waived under the expanded program.
As of Jan. 18, 2010, almost 4,000 eligible applicants for the expanded program have been identified and 429 claims have already been paid for a total $32.8 million, according to the Pentagon.
After Florida, the Defense Department says it also expects applications from California, Virginia and Georgia.
For more details about the program, including eligibility and limitations, download this PDF.
© 2010 Florida Realtors®
Monday, February 01, 2010
Have you loved your Short Sale Buyer today???
I was recently commiserating with a colleague of mine about the state of the real estate industry and how short sales should be ceremoniously renamed "long" sales 'cause there ain't nothin' short about ‘em!
She shared a short anecdote with me that a seller had become uncooperative because a buyer wanted to do multiple inspections, show the home to visiting family members, etc. My colleague related that the seller had taken the position that the buyer was getting such a good deal on the home that they (the buyer) should just be happy with the deal and leave the seller alone.
I haven't had that occur (yet) and I can understand the seller’s point of view. No one wants to sell their property for less than market value, lose their down payment and any equity they once had, and have to take a small hit on their credit to do so. let's face it...there are hurt feelings involved.
As I ruminated on this story one night, I got to think that the seller should be grateful they have a buyer who's willing to take the home off their hands. Here's why:
1) The buyer has the courage to buy in a depreciating market. If Apple stock showed 4 years of cumulative losses, how eager would you be to throw your money in? Granted it doesn't seem like it can go much lower and in some places has reversed course AND we’re talking about mortar and bricks vs. paper stock, but you get the point. Buyers should be applauded for wading into the market rather than sitting on the sidelines.
2) Buyer’s have the patience to jump through all the hoops a short sale requires. I have counseled too many Buyers not to get their hopes up but inevitably all do at some point in the transaction. Having the saintly patience and perseverance to wait for some behemoth lender in a land far, far away to approve of a deal where they take an immediate loss should be rewarded, if just with the appreciation of the seller. Tom Petty must have been in a short sale deal when he prophetically wrote, “The waiting is the hardest part!”
3) The most import reason a seller should be appreciative of a short sale Buyer is that this Buyer is going to relieve you, Mr. Seller, of tens of thousands and possibly HUNDREDS of thousands of dollars of negative equity. When combined with the government’s non-taxation of that forgiven debt (for primary homes only), you have just witnessed one of the biggest get-out-of-jail-free, please-move-on-with-your life, water-under-the-bridge cards ever thrown a citizen’s way!
The moral of this anecdote is: don’t bite the hand that will get you out of your majorly upside down mortgage. In fact, put the Buyer on your holiday card list! The only thing a short sale Buyer is guilty of is having the ability to purchase a home in a down market…essentially, good timing.
Love your Buyer and they will love you back (and get you out of that mortgage you hate paying!).
I was recently commiserating with a colleague of mine about the state of the real estate industry and how short sales should be ceremoniously renamed "long" sales 'cause there ain't nothin' short about ‘em!
She shared a short anecdote with me that a seller had become uncooperative because a buyer wanted to do multiple inspections, show the home to visiting family members, etc. My colleague related that the seller had taken the position that the buyer was getting such a good deal on the home that they (the buyer) should just be happy with the deal and leave the seller alone.
I haven't had that occur (yet) and I can understand the seller’s point of view. No one wants to sell their property for less than market value, lose their down payment and any equity they once had, and have to take a small hit on their credit to do so. let's face it...there are hurt feelings involved.
As I ruminated on this story one night, I got to think that the seller should be grateful they have a buyer who's willing to take the home off their hands. Here's why:
1) The buyer has the courage to buy in a depreciating market. If Apple stock showed 4 years of cumulative losses, how eager would you be to throw your money in? Granted it doesn't seem like it can go much lower and in some places has reversed course AND we’re talking about mortar and bricks vs. paper stock, but you get the point. Buyers should be applauded for wading into the market rather than sitting on the sidelines.
2) Buyer’s have the patience to jump through all the hoops a short sale requires. I have counseled too many Buyers not to get their hopes up but inevitably all do at some point in the transaction. Having the saintly patience and perseverance to wait for some behemoth lender in a land far, far away to approve of a deal where they take an immediate loss should be rewarded, if just with the appreciation of the seller. Tom Petty must have been in a short sale deal when he prophetically wrote, “The waiting is the hardest part!”
3) The most import reason a seller should be appreciative of a short sale Buyer is that this Buyer is going to relieve you, Mr. Seller, of tens of thousands and possibly HUNDREDS of thousands of dollars of negative equity. When combined with the government’s non-taxation of that forgiven debt (for primary homes only), you have just witnessed one of the biggest get-out-of-jail-free, please-move-on-with-your life, water-under-the-bridge cards ever thrown a citizen’s way!
The moral of this anecdote is: don’t bite the hand that will get you out of your majorly upside down mortgage. In fact, put the Buyer on your holiday card list! The only thing a short sale Buyer is guilty of is having the ability to purchase a home in a down market…essentially, good timing.
Love your Buyer and they will love you back (and get you out of that mortgage you hate paying!).
Sunday, January 24, 2010
What happens in Vegas will NOT stay in Vegas...
Bank of America To Unload 6,000 Bank Owned Homes in Vegas
19Jan10
Vegas
Bank of America plans to dump 6,000 bank owned homes in Las Vegas in 2010, according to the Las Vegas Review Journal.
A BofA executive told the paper it expects to release about 500 repossessed properties per month this year in the hard-hit region as the foreclosure rate increases.
This is the so-called “shadow inventory,” previously foreclosed homes that were kept off the market in the hopes loan modifications or short sales could be negotiated.
But a large percentage of loan modifications have re-defaulted and short sales have been difficult to process, despite tons of interest from potential buyers.
Steve Hawks, the director of the National Association of Short Sale Professionals, told the paper it’s taking an average of four to six months to complete a short sale, though he sees it dropping to 90 days in 2010.
That’s good news for Bank of America, which is reportedly receiving 40,000 new offers a month on short sales.
Unfortunately, the bank is also expected to be repossess 11,000 – 14,000 homes a month in the early part of this year and 29,000 – 35,000 by November and December.
Hawks said 22 percent of mortgage defaults were strategic, tied to underwater mortgages, adding that banks need to eliminate the hardship letter required for short sales and consider all those who fall behind on payments.
Last spring, Bank of America eased its short sale rules, requiring less of the proceeds from a property’s selling price go towards paying off an associated home equity line of credit or second mortgage.
Bank of America To Unload 6,000 Bank Owned Homes in Vegas
19Jan10
Vegas
Bank of America plans to dump 6,000 bank owned homes in Las Vegas in 2010, according to the Las Vegas Review Journal.
A BofA executive told the paper it expects to release about 500 repossessed properties per month this year in the hard-hit region as the foreclosure rate increases.
This is the so-called “shadow inventory,” previously foreclosed homes that were kept off the market in the hopes loan modifications or short sales could be negotiated.
But a large percentage of loan modifications have re-defaulted and short sales have been difficult to process, despite tons of interest from potential buyers.
Steve Hawks, the director of the National Association of Short Sale Professionals, told the paper it’s taking an average of four to six months to complete a short sale, though he sees it dropping to 90 days in 2010.
That’s good news for Bank of America, which is reportedly receiving 40,000 new offers a month on short sales.
Unfortunately, the bank is also expected to be repossess 11,000 – 14,000 homes a month in the early part of this year and 29,000 – 35,000 by November and December.
Hawks said 22 percent of mortgage defaults were strategic, tied to underwater mortgages, adding that banks need to eliminate the hardship letter required for short sales and consider all those who fall behind on payments.
Last spring, Bank of America eased its short sale rules, requiring less of the proceeds from a property’s selling price go towards paying off an associated home equity line of credit or second mortgage.
Sunday, January 17, 2010
Tax deductions for Homeowners make owning LUCRATIVE!
***I will start with my disclaimer – please consult a license CPA for tax advice and guidance***
Even in a down market, owning is oft times better than renting. This rings especially tru come tax season. The following 2009 tax deductions can only be applied to homeowners who owned DURING 2009…if you just bought or plan to buy this year, plan on them for 2010 tax season!
1. Mortgage Interest Deduction. Arguably the MOST POPULAR deduction, this deduction is meant to encourage homeownership by making it more lucrative than renting. Compare a own vs. rent scenario where the monthly payment is $1000. If your mortgage payment is $1000 and $900 of that is interest, you are allowed to REDUCE your GROSS INCOME by $10,800 ($900 x 12 months). There is no deduction for rent payments. Thus, a homeowner who grosses $50,000 per year will have that number reduced to $39,200. If he is in a 20% tax bracket, instead of paying $10,000 they will only pay $7960, a savings of $2140 on your tax bill.
2. Energy Efficiency Deduction. Have you upgraded to a solar water heater, solar panels, hi-efficiency A/C, new insulated garage door, or similar home improvement? You may be eligible for deductions that will lower your gross income OR dollar-for-dollar tax credits. The credit is 30% of the cost of installing such energy savers, up to a top credit of $1,500. Some credits are even more, depending on the project!
3. First-time Homebuyer Tax Credit. While not a tax deduction, this dollar-for-dollar tax credit is claimed on your taxes (which is why I included it in this article!) Put into action by the Obama Administration in 2009 to stimulate/encourage homebuyers and home sales, this max $8000 credit can only be claimed by meeting the following criteria:
• Buyers must NOT have owned within the last 3 years
• The purchase must be completed NO LATER THAN July 1, 2010
4. Real estate taxes paid in the same tax year can be claimed as a deduction.
5. If you used a traditional or Roth IRA for a downpayment on a purchase this year, plan on deducting up to $10,000 of that withdrawal on your taxes.
For more information on these and many other tax deductions related to owning or disposing of real estate, visit Kiplinger’s online at http://www.kiplinger.com/features/archives/2007/01/hometaxopedia.html
***I will start with my disclaimer – please consult a license CPA for tax advice and guidance***
Even in a down market, owning is oft times better than renting. This rings especially tru come tax season. The following 2009 tax deductions can only be applied to homeowners who owned DURING 2009…if you just bought or plan to buy this year, plan on them for 2010 tax season!
1. Mortgage Interest Deduction. Arguably the MOST POPULAR deduction, this deduction is meant to encourage homeownership by making it more lucrative than renting. Compare a own vs. rent scenario where the monthly payment is $1000. If your mortgage payment is $1000 and $900 of that is interest, you are allowed to REDUCE your GROSS INCOME by $10,800 ($900 x 12 months). There is no deduction for rent payments. Thus, a homeowner who grosses $50,000 per year will have that number reduced to $39,200. If he is in a 20% tax bracket, instead of paying $10,000 they will only pay $7960, a savings of $2140 on your tax bill.
2. Energy Efficiency Deduction. Have you upgraded to a solar water heater, solar panels, hi-efficiency A/C, new insulated garage door, or similar home improvement? You may be eligible for deductions that will lower your gross income OR dollar-for-dollar tax credits. The credit is 30% of the cost of installing such energy savers, up to a top credit of $1,500. Some credits are even more, depending on the project!
3. First-time Homebuyer Tax Credit. While not a tax deduction, this dollar-for-dollar tax credit is claimed on your taxes (which is why I included it in this article!) Put into action by the Obama Administration in 2009 to stimulate/encourage homebuyers and home sales, this max $8000 credit can only be claimed by meeting the following criteria:
• Buyers must NOT have owned within the last 3 years
• The purchase must be completed NO LATER THAN July 1, 2010
4. Real estate taxes paid in the same tax year can be claimed as a deduction.
5. If you used a traditional or Roth IRA for a downpayment on a purchase this year, plan on deducting up to $10,000 of that withdrawal on your taxes.
For more information on these and many other tax deductions related to owning or disposing of real estate, visit Kiplinger’s online at http://www.kiplinger.com/features/archives/2007/01/hometaxopedia.html
Monday, January 11, 2010
PLEASE TAKE A LOOK AT MY NEW LISTING!
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