Why you need a Realtor when you are building a new home.

 I was just asked why someone should use a Realtor if they are building a new home.  

Here was my reply: A Realtor represents YOU. Not the builder. The builder wants you to spend money on options and upgrades and may not have your best interest in mind. It is easy to be swept up in the excitement and sign up for a much more expensive build than you should, but once you sign it is normally too late to change your mind. 

Most Importantly, I help the Buyer understand the contract terms and conditions on a builder contract as they are long and confusing and difficult to break once signed. I am by their side while they choose their structural items and the options as once they are selected normally they cant be changed. I also assist the Buyer with any issues that arise while the build is proceeding. 

f you are not local, I visit the build site often to send you photos and videos to keep you up to date. I make certain that financing, insurance, utilities and many other things are coordinated for closing and remind the homeowner files for homestead exemption. 

And Finally, THE BUILDER PAYS THE REALTOR'S COMMISSION, AND THE BUYER DOES NOT GET A DISCOUNT IF THEY DONT USE A REALTOR, BUT LOOK AT WHAT VALUE A REALTOR BRINGS. Call me at 561-371-1830 with any questions.

So you want to sell your home while it is still a Seller's market

 3 Pricing Strategies in a Seller’s Market

Real estate markets across the country are experiencing a strong seller’s market right now. For potential sellers, this may be a golden opportunity to get top value for their property. While it may be tempting to aim for the sky when setting the listing price, that may not be your best option.

Here are 3 pricing strategies to consider before deciding on your asking price.

1. Listing at Market Value

   Buyer’s love “realistic sellers.” After considering the market data for your area, choosing to list at the current market value can attract the right buyer and encourage a solid offer or two. Typically, this results in a full-price offer with straightforward terms.

2. Listing High

   It is always tempting to list ahead of the market, especially in a seller’s market. This strategy is risky and can mean you waste valuable time by sitting on the market with little interest. Even in a strong sellers’ market, buyers will shy away from overpriced listings. If listing above market value, experts suggest not higher than 5-7% higher.

3. Listing Low

   Listing below market value will attract attention. The goal of this strategy is to encourage a bidding war that results in a sales price over market value. This works best for homes in turnkey condition and can backfire if the home is unappealing and you receive low or no offers and must adjust the price again.

A seller’s market presents opportunities. Working with your agent, discuss the options and trends in your local market to get the best offer and terms.

Call me at 561-371-1830 to take advantage of today's market and get your home sold.

A new chapter..... we have moved to Stuart, FL!

I am excited to share that we have moved to Tres Belle Estates in Stuart, Florida.  We had this community on our radar while our Caloosa home was on the market, but we were concerned that Stuart may have been too far from Palm Beach Gardens.  When we received a contract on our Caloosa home and needed to decide where we were going to purchase our new home, we revisited the community of Tres Belle, and the town of Stuart.  We are very pleased with our choice, as Stuart has so much to offer. Within a few minutes from our home we can be exploring the quaint downtown Stuart area, at the beach, or shopping at the typical big box stores that have become so necessary to our daily lives.

I will continue to chronicle our move and exploration of Stuart so I can share everything we are finding to be exciting about our new hometown.  Stay tuned.....

Palm Beach County Prices Rise 28%

Let's share some great news!  Palm Beach Gardens home prices continue to soar!  Kim Miller wrote:

The median sales price of an existing single-family home in Palm Beach County soared to $249,894 in March, up 28 percent from the same time last year.

The pricing measure, released today in a report by the Realtors Association of the Palm Beaches, is the highest in at least the past 12 months.

Despite the substantial jump, some county Realtors remain unconcerned about another housing bubble, saying the economic conditions today are different than they were before the crash.

“Although the year-over-year median price of a single-family home in Palm Beach County increased 28 percent, the market conditions we are experiencing now are completely different,” said Realtors Association of the Palm Beaches President Elect Barb Kozlow. “Pre-bubble investors or ‘flippers’ had short-term investment goals. The financial objectives of today’s investor are long term.”

The number of closed sales on existing single-family homes in Palm Beach County last month showed a 12 percent increase to 1,266.

Sales of existing single-family homes statewide jumped 9 percent in March from last year to 19,631, with the median sales price showing a 15 percent gain to $160,000.

At the same time, the inventory of single-family homes stood at a 5.3 months’ supply, down from eight months in March 2012, according to a report released this morning from the Florida Realtors.

“We continue to be encouraged by the depth and breadth of the housing recovery,” said Florida Realtors Chief Economist Dr. John Tuccillo . “State numbers are up in virtually all important categories and down where they should be down. Even with the difficulty of access to financing for households, we still see the growth in the market continuing for at least the next 18 months.”

Palm Beach County housing numbers should be out shortly.

Nationwide, the number of homes sold last month dropped .6 percent to a seasonally adjusted annual rate of 4.92 million homes in March from February, but remain 10 percent higher than March of 2012.

Lawrence Yun, chief economist for the National Association of Realtors, said the dip in sales is because of the lack of inventory of homes.

“Buyer traffic is 25 percent above a year ago when we were already seeing notable gains in shopping activity,” he said. “In the same timeframe housing inventories have trended much lower, which is continuing to pressure home prices.”

The national median home price for all housing types last month was $184,300, which is nearly 12 percent higher than March 2012. The increase is the strongest since November 2005 when it rose 13 percent from the previous year.

Tags: bnblogs

This entry was posted on Monday, April 22nd, 2013 

Home prices rose in Feb. by most in 7 years

WASHINGTON – April 3, 2013 – U.S. home prices jumped in February by the largest amount in seven years, evidence that the housing recovery strengthened ahead of the all-important spring-buying season.

Home prices rose 10.2 percent in February compared with a year earlier, CoreLogic, a real estate data provider, said Wednesday. The annual gain was the biggest since March 2006. Prices have now increased on an annual basis for 12 straight months, underscoring the recovery’s steady momentum.

The gains were broad-based. Prices rose in 47 of 50 states and in all but four of the nation’s 100 largest metro areas. Delaware, Alabama and Illinois were the only states to report price declines.

CoreLogic’s measure of national prices also rose 0.5 percent in February from January. That’s a solid increase during the winter months, when sales typically slow.

An increase in home sales has helped lift prices. In February, sales of previously owned homes reached the highest level in more than three years. Still, much of the demand has come from investors. Sales to first-time buyers remain below healthy levels.

Another reason prices are rising is the supply of available homes for sale remains extremely low. In January, it reached a 13-year low.

The supply of homes for sale did rise in February for the first time in 10 months. That suggests more people are gaining confidence in the housing recovery, which could help ease supply concerns and drive sales higher in the coming months.

The price gains were concentrated in the West, according to CoreLogic. The states with the biggest price gains were Nevada, where prices rose 19.3 percent, followed by Arizona, with 18.6 percent, and California, with 15.3 percent.

Hawaii and Idaho rose 14.6 percent and 13.5 percent, respectively.

Sales were up 31% in June!

As I continue to share the good news with you, my friendly readers, let us celebrate more positive housing market news as shared by Florida Realtors


ORLANDO, Fla. – July 19, 2012 – Florida’s housing market had increased pending sales, more closed sales, higher median prices and a reduced inventory of homes for sale in June, according to the latest housing data released by Florida Realtors®.

“Florida’s housing recovery continues its positive momentum,” said 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “All of the signs point to solid gains, which is good news for the state’s economy.  In June, pending sales were up 31 percent for existing single-family homes and nearly 23 percent for townhouse-condo units compared to a year ago. The trend shows that many buyers are ready to purchase their Florida dream home, but a lack of financing options and overly restrictive credit standards remain obstacles.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

Statewide closed sales of existing single-family homes totaled 18,800 in June, up 5.3 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median sales price for single-family existing homes last month was $151,000, up 8.2 percent from June 2011.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in May 2012 was $182,900, up 7.7 percent from the previous year. In California, the statewide median sales price for single-family existing homes in May was $312,110; in Maryland, it was $259,207; and in New York, it was $208,000.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 9,202 units sold statewide last month, up 1.5 percent from those sold in June 2011. The statewide median for townhome-condo properties was $110,000, up 15.8 percent over the previous year. NAR reported the national median existing condo price in May 2012 was $180,000.

Last month, the inventory for single-family homes stood at a six-months’ supply; inventory for townhome-condo properties was at a 5.9-months’ supply, according to Florida Realtors.

“The trend we’ve seen established over the past year is continuing,” said Florida Realtors Chief Economist Dr. John Tuccillo. “In June, every housing market indicator moved in the right direction. Closed sales are up, but so are pending sales, median prices, average prices and the ratio of sales price to list price. Conversely, listings are down, days on market are down and – most important – inventories are down. We have now reached a six months’ supply of inventory for existing single-family homes and 5.9-months’ supply for townhouse-condos.”

Tuccillo added, “With an improving employment environment in Florida, we expect that the housing market recovery will continue in the future.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.68 percent in June 2012, significantly lower than the 4.51 percent average during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors Media Center athttp://media.floridarealtors.org/ and look under Latest Releases, or download the June 2012 data report PDF under Market Data at: http://media.floridarealtors.org/market-data

© 2012 Florida Realtors®

A picture is worth a thousand words

These pictures show PROOF of a Recovering housing market!  The pictures were taken yesterday in Jupiter Florida.  It made me smile and I wanted to share it with you.  The Sun Sentinel Reported a 20% growth in the new homes market for Palm Beach County and the proof is in the building.  Let's get started finding you the perfect home.

Holidays for reflection

Today is a typical, although not frequent, holiday day off for me.  I am spending the day, catching up on cleaning and laundry, but decided that I needed to "clean" my thoughts as well.  I keep saying the Real Estate Market is improving, and I can say from a personal point of view that it is true.  My listing of a 5,334 sq ft estate in Steeplechase closed last month, and I am pleased to say it was a win-win for both buyer and seller.  I have a Short Sale in Lake Worth.... a charming 2 bedroom 1 bath with a large yard blocks from the water that has only been on the market for a week, and I just received a contract on it!
My belief is that people are tired of all the bad news in the paper, and are also tired of putting their lives on hold.  They are buying new cars and buying new homes!

It is time to clear the clutter from our homes and heads, make a plan on where you want to live in 6 months, and call me to help you get there.

"What is the Biggest Mistake Sellers Make in Today's Real Estate Market?"

I was speaking with a nationwide top real estate agent the other day. During our conversation, I asked him, "What is the biggest mistake that you see sellers make in today's real estate market?"

His answer blew me away because it seems so easy to avoid. He said the biggest mistake he sees people make is not making a counteroffer on purchase offers they deny.

He said it is critical for sellers to not take offense to a buyer's offer and completely forget about them.

Instead, try to come to an agreement with an offer of your own that is below what you are asking and above what they offer. While this seems like such an obvious answer, he said many people just ignore a real low offer. That is a HUGE MISTAKE!

Frequently a buyer comes in at a low price on the first offer just to see what will happen, even if they are prepared to pay full price.

It is so important to keep the lines of communication open. Communication is the secret to success in all relationships.

Just remember that you have somebody that has seen your house and wants to buy it. Obviously they want to pay as little as possible, you want them to pay as much as possible, and that's why they call it negotiations. Counteroffers can be a great way to sell and buy a home.

(reposted with permission from Daniel at Elite Lending)

It has been a great week!

Wow, There has been so much good news this week.

Regarding the economy, 3 big areas all posted positive news this week.

Unemployment dropped to 8.3%.

The housing Market update is also positive: The mortgage rate on a Fixed Rate Mortgage dropped to 3.87%, and many of the nations top home builders said they feel the housing market has stabilized.

and another great economic indicator is Auto sales: Chrysler Group LLC reported a hefty 44-percent gain in U.S. auto sales in January, led by its Jeep brand, while Ford Motor Co posted a 7 percent gain.

This is a great way to go into the weekend. As I keep saying, now is the time to buy or sell your home. Please call me to discuss your options.

10 Surprising Reasons You Can’t Get a Home

Getting a home signifies financial security and an investment for the future. Owning a home is part of the American Dream. There are some surprising reasons why you can’t get a home.

1. Down Payment – You may have the required 10%-25% on the asking price of the home you are interested in but how you acquired it and how long you’ve had it could keep you from getting the home. Many times relatives offer young couples the down payment. Lending institutions take this into consideration when looking at the ability of a homeowner to keep up with mortgage payments. Saving the down payment over time lends to the credibility of money management.
2. Credit– Credit history is an ongoing process. Student loans are one of the first obligations a person may have as an adult. Late payments may have a bearing on your ability to acquire a home later in life. Credit scores are also affected by utility payments. Any recurring bill that is paid late may come back to haunt you even though your financial situation is now more sound. Your debt to income ratio ideally needs to be under 45%. Less than a 3 month asset reserve in a bank account will generally keep you from getting a home. Check your credit score with all 3 agencies and make sure there is nothing being reported incorrectly. You need to aim for a score of 660 or better.
3. Job Security – Your job history may be why you can’t get a home. Lenders look for stability. If you jump from job to job, regardless of monetary or career improvement, lenders see you as a financial risk. When the economy takes a downward turn, employers tend to retain employees with seniority. Also taken into consideration is the risk of the job.
4. Parent History – If your parents have a questionable credit history, you may be dealing under their shadow. If parents foreclosed, you may be affected. If they were late with mortgage or credit card payments, you may be looked upon as having the same traits. If you are asked information on parent particulars, you may need to look elsewhere for home financing.
5. Location – The location of a home may affect whether or not a lender is willing to risk mortgaging it. LNG routes, Super Site areas, fault lines, destructive weather patterns all have bearings on mortgage risks lenders are willing to take on.
6. Inspection – More and more, home inspections are being required to seal the closing deal. Hopes have been dashed to learn major expenses must be incurred to pass inspection for the approval of the sale.
7. Condition – Fixer-uppers may offer pricing that appears affordable. If you have no background of construction or home improvement projects completed, lenders are leery to finance such undertakings. They may require a lump sum amount be in an account to cover the improvements necessary to ensure the property does not result in a loss to the lender.
8. Liens – If you owned property before and were subject to liens for unacceptable reasons such as credit card debt or unpaid taxes, you may not get the home you desire. A current homeowner may also have substantial liens that need to be satisfied at closing either from the sale itself or as additional costs to the buyer.
9. History – The history of the home may be the deciding factor that keeps a lender from financing in your behalf. A murder, haunting, nearby sinkhole, or other less favorable activity, bear upon the lender’s willingness to finance such a home.
10. The Bank – Economic conditions and bank lending history may be the reason you can’t get a home. Banks may be leaning toward only very secure clients to up their lending credibility. If a bank turns you down, look to other options before you decide to settle on thinking you can’t get a home. FHA, VHA, or a first time buyer program offer other alternatives for which you may qualify.

If you can’t get a home loan with one lender, chances are good that another institution will also turn you down. You should take some time and work at increasing the good points that will work in your favor. Try again when your situation has improved.

posted with permission by KCM

How Much Should You put Down?

Like most questions, the answer is “it depends”. Today, I thought I’d give you some things to consider.

Let’s begin the discussion with loans that don’t require Mortgage Insurance. The suggestion is to borrow as much as you can afford. As an example, borrowing $310,000, as opposed to $300,000, will increase your mortgage payment by about $51 at 4.5%. Recognize that by doing so, you will have $10,000 in the bank. It is my experience that it is easier to find $50 more every month than it is to save $10,000. Even if you had the discipline to set aside the $50 monthly, it would take you 200 months to re-accumulate the $10,000 in principal (longer with lost interest).

Understand too, that the interest paid on the extra money borrowed is tax-deductible. In a 25% tax bracket the $51 additional has a real cost of about $38!

Having the $10,000 liquid has other potential advantages as well:

1. If rates go up in the future, you could potentially make more interest than you are spending.
2. If you can avoid using credit cards for furniture, home improvements, etc., you can save a bundle on those non-tax deductible interest rate costs.
3. In a world where home values have declined, the more you borrow, the less you have at risk. You transfer the risk of the future value of the home to the lender.

Now, many borrowers today will need some sort of Mortgage Insurance, whether it’s a Conventional Loan with less than 20% down or an FHA Mortgage. These borrowers should sit with their loan officer and run the numbers because the cost of the Mortgage Insurance can vary based on loan-to-value and other factors. Examine the costs and the relative benefits.

reprinted with permission by KCM

Money to purchase and renovate your home!

Whether you’re looking at a foreclosed home, bank REO, a Short Sale or really any home, you need to be aware of the FHA 203K Program. The general condition of real estate has taken a dip over the past few years, as homeowners are not sprucing up their home as they have in the past.

(Pssst…there’s a recession going on…people are afraid of losing jobs…and they believe they won’t “get back” the money they spend by renovating upon sale).

The 203K loan can be used for small repairs (with a minimum of $5000 of work) such as a new roof or replacing the boiler. It can go all the way up to practically rebuilding the home and anything in between. Maybe you love a home, the neighborhood, etc., but you hate the kitchen cabinets. The 203K may be for you. As long as the existing foundation stays intact, we can talk about any type of repair, upgrade, modernization or expansion.

With one closing, we will give borrowers money to satisfy their contract with the seller AND establish a Rehab Escrow Account to fund the agreed renovations. The Rehab Escrow Account is managed like a Construction Loan. Money is released after work is completed, the property is inspected by the lender and the title is updated.

Like all FHA loans, the property must be owner occupied and loan approval requires full documentation of income, assets and credit worthiness. At the same time, underwriting guidelines have some flexibility built in. (In theory, we can lend up to 110% of the After-Improved Value of the home for example.)

Loans are processed in the same fashion as any other loan (in terms of income, asset and credit) with the exception of the appraisal. Appraisers work in conjunction with the home improvement contractor and a HUD Approved Pre-Planner to determine: “As-Is” Value, “After-Improved” Value, costs of construction and the draw schedule of the renovation portion of the loan. This work typically adds about a week to the approval process, largely because it should be done BEFORE contracts are signed.

SOME UNIQUE FEATURES OF THE 203K

• Mixed-Use Properties may be eligible! As long as the commercial space is no more than the allowable square footage based on the number of floors in the building and none of the renovation monies are used for a commercial renovation, the 203K gives tremendous interest rates for Mixed-Use Properties.
• The loan can be used to change property usage (when appropriate municipality approval)…..converting a 1 Family Home to a 2 Family or a 4 Family to a 3 Family or any variation that stays within the 1-4 Family boundaries works.
• On major renovations we will finance up to six months payments into the loan. In these cases,the house will not be habitable until after the work is completed.
• There is a Streamline 203K for projects that require less than $35,000 of repairs. Typically, we like to see only one or two items of work that can be done quickly (with one inspection).

It is recommended that you work with an experienced loan officer when exploring the 203K Program, as there are many details that need to be considered (from selecting a qualified contractor to the inner workings of the draw schedule and preparing for different contingencies). While the program is more intricate, with the right education ahead of time, it is extremely manageable.

posted with permission from KCM

Short Sales are a better choice

Last week, RealtyTrac released its Q2 2011 U.S. Foreclosure Sales Report. The report confirmed what we are hearing in the marketplace – banks are beginning to look more favorably on short sales as option to foreclosure.

The report dissected the sales of distressed properties in the second quarter of 2011. Here are several of their findings:

• Sales of homes that were in some stage of foreclosure or bank owned accounted for 31 percent of all U.S. residential sales in the second quarter of 2011, down from nearly 36 percent of all sales in the first quarter.
• A total of 102,407 pre-foreclosure homes (short sales) sold in the second quarter, an increase of 19 percent from the previous quarter.
• A total of 162,680 REO homes (foreclosures) sold in the second quarter, virtually unchanged from the first quarter.
• Short sales on average sold for a discount of 21 percent below the average sales price of non-foreclosure homes.
• REOs on average sold at a discount of nearly 40 percent below the average sales price of non-foreclosure homes.

This could be a great sign that banks are finally realizing the advantages of short sales over foreclosures.

Bloomberg.com quoted Rick Sharga, senior vice president of RealtyTrac, in an article covering the report:

“This is a glimmer of hope that lenders are getting more realistic. It’s a win for borrowers who avoid foreclosure, buyers who get a house in better condition and banks that lose less money, which is also a win for taxpayers.”

posted with permission from KCM

What banks are looking for...

When lenders evaluate mortgage borrowers, they look at four things: income (the ability to repay), credit (the willingness to repay), collateral(appraised value and property condition) and assets (cash in the deal and cash reserves after closing, mostly). Of the “four legs of the table”, assets are the least discussed, and yet may be the most important.

What do we mean when we talk about assets?

• Monies needed for the down payment (the difference between the purchase price and the loan amount which may or may not be the same as the money deposit at contract signing)
• Monies needed for closing costs (fees to the lender and third parties for things like appraisals, title insurance, settlement services, and so on)
• Monies needed for Pre-Paids (homeowners insurance, flood insurance, real estate taxes, etc.) and establishing escrow accounts for future payments
• Monies for Reserves- the money you still have left after closing. Monies that would be available, if a problem were to arise

Why do we care about assets?

• Assets may be the truest reflection of a borrower’s fiscal strength. Their ability to save and properly budget could be a significant indicator to their future paying habits
• The source of the assets is important. Savings? Gift or inheritance? Lottery victory? Insurance settlement? Sale of a baseball card collection? Each reflects differently on the borrower.
• Many people don’t show all their income on their tax returns (it’s just a fact). Undocumented income can’t be used to qualify; however, often assets become a truer representation of a borrower ability to pay than their 1040s.
• Reserves are an issue. A client with $50 in the bank after closing is riskier than one with $50,000. Also, clients who have money in the bank but have some sporadic lates on their credit are looked at differently than those who didn’t have the money to make the payments.

Common Asset Issues in Mortgage Packages:

• Large deposits (defined as those which are excessive for the income level) raise an underwriter’s eyebrows. Where did the money come from? Maybe the borrower took a loan that doesn’t yet show up on their credit report.
• Cash deposits are another red flag. In this day and age, people keep their money in the bank, not under their mattress. Where did the cash come from?
• Gift monies and seller’s concessions, while considered as borrowers assets when doing calculations, will give an underwriter pause when assessing the borrower’s real ability to replay.

Guidelines have tightened. When borrowers are paying off credit cards to get their ratios in line, lenders are asking where that money came from now. That act has nothing to do with the home purchase, but may be a sign of something fragile in the borrower’s financial make up.

The best advice is to consult a loan professional to discuss the proper way to position your assets and the timing of it that will put you in the most favorable light.

posted with permission from KCM

This is the time to put your house on the market! Every day you wait is a missed opportunity for buyers to see your house....and buy someone else's

Selling Your House? Waiting May Not Make Sense

There have been some bright spots in the residential real estate market over the last couple of months. Several price indices have reported a stabilization of prices and some regions have even shown small levels of appreciation. This has led some to believe that we may have reached a bottom for home values. We must realize that what we are actually experiencing is a ‘window of opportunity’ as the banks are delayed in bringing certain inventories of distressed properties to the market. Let’s look at what others are reporting:

Bloomberg Businessweek

“The crux of Simon’s analysis is that the loose lending practices seen during the housing bubble allowed 5 million renters to become homeowners, and that the market is in the protracted process of evicting this group. He believes housing prices will decline 6 percent to 8 percent nationally, with 6 million to 7 million more foreclosures yet to come.”

Yahoo Finance

“The problem with the real estate market remains excess inventory. Based on Shilling’s research, there are 2 million to 2.5 million excess homes in the country — a supply that will take 4-5 years to work-off. The result: Housing prices will fall another 20% and underwater mortgages will balloon from 23% to 40%, he says.”

Housing Wire

“Both warmer weather and the drop in distressed sales percentage have contributed to recent home price improvements. However, given the disappointing pace in housing demand recovery, both factors may turn against us in the coming winter and push home prices lower again…

This supply-demand imbalance affirmed JPMorgan analysts’ estimate of a further 4% drop in home prices from the first quarter of 2011 to a new bottom next year.”

DS News

“Home prices have gotten a little bit of a boost in recent months thanks to a seasonal uptick in market activity. Most analysts, however, expect further declines to characterize the later part of the year and possibly extend into next year, largely because of the huge supply of foreclosures on the market.”

Bottom Line

If you are thinking of selling in the next twelve months, you would probably do much better if you sold your house sooner rather than later.

shared with permission from KCM Blog

Why a Buyer should use a Realtor

There are many obvious reasons as to why an agent or broker would be necessary when you are selling your property. From market knowledge to pricing to marketing, an agent is a good friend to have when selling your home.

But what about the buyers side?

Does a buyer really need an agent to represent them? Well, being a broker I would have to say yes. But I will back up my claim with some very important reasoning.

First of all buyer representation is something that is really not all that old, but came about due to a lot of buyers being taken advantage of at the closing table. There are things that a normal buyer really isn’t privy to nor should they have to be. That is where a good agent representing the buyer earns their share. They are there to protect the interests of the buyer and negotiate the best possible price for the property being purchased.

A good buyer agent will walk their buyers through the entire process and make sure that they understand the ins and outs of what is going on and why. They are there to make sure that the correct inspections are requested and completed, they are there to make sure that any repairs that need to be done are done, and they are there to make sure that when the keys are handed over, both parties are walking away feeling good about the deal.

A buyer’s agent should be able to let their clients worry about other things rather than all the technical aspects of purchasing a home. Buying a home should be fun and exciting, rather than stressful and unpleasant.

A good buyers agent will always work for their clients best interests, negotiate the best price and terms of a contract, see that all inspections and repairs are requested and completed on time, and will make sure that there is a smooth transition at the closing table.

posted with permission by Tim Brown

A Window of Opportunity for House Sellers

There has been much confusion as to where housing prices are headed. We have actually blogged on the issue recently. Today, we want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices later this year and the first half of 2012.

Why renewed downward pressure?

Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes.

Celia Chen, of Moody’s Analytics explains:

“Foreclosures are weighing on the outlook for U.S. house prices, and the slow resolution of issues surrounding the so-called robo-signing scandal is keeping distressed homes off the market”.

The New York Times also recently reported on this issue. They looked at the delays in certain states. As an example, this is what they found in New York:

“Last September, before the documentation crisis, nearly 1,500 New Yorkers lost their houses as a result of foreclosure, according to LPS. The average over the last six months: 286. That is far lower than at any point since the recession began.”

Banks are now correcting these errors.

There is evidence that the banks are getting their documentation in order and about to again increase their foreclosure repossessions. Housing Wire reported:

“Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off.”

They went on to quote RealtyTrac CEO James Saccacio:

“…lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory… Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask.”

What will this mean to home prices?

As this inventory comes to market, it will impact prices in two ways:

1. It will provide discounted competition for buyers
2. It will impact the appraisal values of all homes in the area

Again, we quote Celia Chen:

“It is quite possible that house prices will pick up slightly in the second or third quarter of this year, as foreclosure sales remain depressed while nondistress sales pick up…By the fourth quarter of this year, however, the distress share will rise, sending the house price index back down…

House prices will founder until early next year and start rising in earnest at the end of 2012.”

Bottom Line

There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.

posted with permission from KCM

Making the museum a fun place for the entire family

It can be difficult to convince your family that they would all enjoy going to the museum, but the Norton Museum of Art in West Palm Beach has an exhibit that is quite entertaining for people of all ages.

“Out of this World: Extraordinary Costumes from Film and Television” is on display from June 4 through September 4. The exhibit includes original costumes and accessories from movies such as: Blade Runner, Star Wars, Indiana Jones, Batman & Robin, The Terminator. TV show costumes are included from Star Trek, Star Trek: Voyager and Battlestar Galactica as well as a few special effects models and prop accessories, all from the Paul G. Allen Family Collection. Allen, who co-founded Microsoft with Bill Gates, is a huge sci-fi fan. His collection includes Captain Kirk’s commander chair from the original “Star Trek” series.

Highlights include the outfit Jim Carey wore at The Riddler in Batman Forever; a bullet-ridden leather jacket from Arnold Schwarzenegger’s The Terminator and the Adrian-designed hat worn by Margaret Hamilton as the Wicked Witch of the West in The Wizard of Oz.

There are a number of events scheduled to accompany the exhibition – from movie screenings to family programs – throughout June and July. For a description and schedule, visit Norton.org.

IF YOU GO: The Norton Museum is open Tuesday, Wednesday, Friday and Saturday from 10 a.m. to 5 p.m. On Thursday the museum is open from 10 a.m. to 9 p.m. On Sunday it is open 11 a.m. to 5 p.m. General admission is $12 for adults, $5 for visitors ages 13-21 and free for members and children under 13. West Palm beach residents receive free admission every Saturday with proof of residency. Palm Beach County residents receive free admission the first Saturday of each month with proof of residency. For additional information, call 561-832-5196 or visit Norton.org.

What About the Cost of Delaying Your Dreams?

Whether a family is thinking of buying or selling a home, price seems to have become all important. I’m not sure why that has occurred. I realize, whenever anyone sells or buys anything, making sure you get a ‘good deal’ is a crucial part of the transaction. However, in real estate today, it now seems that price has become the ONLY THING!

Yet, appreciation or depreciation is not usually the first thing that matters when the average family decides to buy or sell a home.

People move for numerous reasons. Here are a few examples:

• to create a better lifestyle for themselves and their children
• to be closer to family in other regions of the country
• to be closer to necessary healthcare
• to take advantage of a promotion or a new job
• to downsize and lower long term financial obligations

Most voluntary moves help families achieve their goals and/or dreams.

Bottom Line

Which is more important: waiting to get a few more dollars for your home, sitting on the sideline hoping prices drop just a little bit lower before you buy or moving on with the rest of your life? Only you can decide.

printer with permission from KCM Blog