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

Financial News Icons Say Now Is the Time to BUY!

We received some tough news on housing last week. Prices are still softening. There was a lot of negativity surrounding these reports. The news caused more consumers to be concerned. However, the real question is what this means to you and your family. This could actually be great news if you are buying (either as a move-up buyer or a first-time buyer).

We don’t want you to take our word for this. Instead, here are excerpts from articles published last week by two of the country’s iconic financial publications: The Wall Street Journal and Forbes Magazine.

The Wall Street Journal: Why It’s Time to Buy

“Despite all the gloom, there are growing indications that it is a good time to buy… The long-term benefits of homeownership remain very much intact. For now, at least, you can deduct the mortgage interest on your taxes—a big perk for people in higher tax brackets. You get to paint your walls any color you wish, without having to clear it with a landlord. And assuming you can buy a home for about the same price as you can rent one, buying will give you the ability one day to live rent-free. Come retirement time, a paid-off mortgage means your monthly expenses are significantly reduced, and you have a chunk of equity to play with.”

Forbes Magazine: 9 Reasons to Buy a House Now

“If you’re planning to buy a house right now, the next few months may be the best time to buy… With a convergence of the factors (mentioned in the article) all of which are favorable to the prospective home buyer, there may not be a better time to buy than right now. It’s a buyer’s market, but like everything else in life, the bargain deals won’t last.”

Bottom Line

When the Wall Street Journal and Forbes have articles saying now is the time to buy, maybe it’s time to buy

shared with permission by the KCM BLog

List of required repairs for FHA loans

The following is a list of items will not meet FHA’s Minimum Property Requirements.

**This information has been provided by HUD, 2005-ML-48

Exterior

¨ No railings on stairs of front porch or rear patio (Typical for homes that are elevated or have a crawl space)

¨ Visible damage to roof covering (Large portion of missing shingles, tile, etc..)

¨ Evidence of structural problems or settlement

¨ Defective paint surfaces on homes constructed pre – 1978

¨ Cracked/ damaged windows or doors that allow access from exterior of property

¨ Window bars with no emergency release latches (Emergency release latches cannot be locked by key)

¨ Crawl space with no access for inspection, cleaning, etc….

¨ Visible evidence of hazards or pollutants (Car oil in yard, storage of toxic chemicals of any kind, etc…)

¨ If property has a septic tank inspection is required to determine adequate function

¨ If property has a well/ individual water supply an inspection will be required to determine the water is of adequate quality and the well can support the needs of the property.

¨ Evidence of Termites or Wood Destroying Organisms (If evidence or termites is observed treatment will be required, this is usually triggered by the appraisal report)

¨ Pool is empty, has green water, is missing pump or any other systems needed for it to operate.

¨ Missing A/C compressor

¨ Duplex, Triplex, and Fourplex properties must have individual meters for each unit.

Interior

¨ Visible damage to kitchen cabinets, countertops, drywall, flooring, and/or ceiling

¨ Evidence of moisture or leakage in ceiling

¨ Water and electricity is not working (Needs to be turned on for appraisal inspection)

¨ Bathrooms missing bathtub, sink, toilet, and/or any other fixtures

¨ Exposed wires due to missing lighting fixtures, fans, etc….

¨ Inadequate division of the property and/ or illegal efficiency (Converted Garage’s are ok as long as it does not have a kitchen)

¨ Each bedroom must have access to the exterior of the property via a window, sliding glass door, etc…

¨ Plumbing systems must operate properly

¨ Missing a sink, stove, countertops, kitchen cabinets - note – no stove is ok if it nota part of a built-in with cabinets

*The basic rule that FHA abides by is that the property must be habitable and safe for the occupants. The FHA no longer requires many repairs that they used to. They have standardized their appraisal requirements to include that only conditions that affect the structural soundness of a property and the safety of the occupants be repaired. In the state of Florida the FHA prefers that all single family residences have a termite inspection completed, if the property has a well or septic tank an inspection will be required to determine that they are in operable condition.

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Falling Prices, low mortgage rates put record number of South Floridians within grasp

You could call it the upside of the downturn: Housing affordability in Palm Beach County hit a new high during the first three months of the year.

Thanks to plunging home prices, resilient incomes and low mortgage rates, 77.5 percent of homes sold in the first quarter were within reach of a median-income family, according to an affordability index released this week by the National Association of Home Builders.

That's based on a median home price of $120,000 for houses and condos, and a median family income of $67,600. The last time Palm Beach County homes were this affordable was in early 1999, when 77.4 percent of families could afford the median-priced home.

During the real estate boom, the affordability index showed that fewer than 30 percent of Palm Beach County homes were within reach of typical families. That led to concerns that teachers, nurses, firefighters and other middle-income workers no longer would be able to afford to live here.

Plunging prices are a painful but necessary part of any housing ecovery, economists say.

"At least one piece of the puzzle has returned," Wells Fargo economist Mark Vitner said. "Affordability is in place."

Although sales of homes have picked up, the favorable affordability numbers haven't created boom-like conditions.

"Everything is aligned in a straight line to make housing unbelievably affordable," said Douglas Rill, who owns Century 21 America's Choice in West Palm Beach. "You might think that with that kind of affordability, there'd be a line in front of real estate offices. But sadly, that's not happening."

The hangover from the housing party continues to slow sales. Nearly half of homeowners in South Florida owe more than their homes are worth, according to real estate website Zillow.com. And many lenders now require 20 percent down payments from mortgage borrowers.

"Unfortunately, even though homes are affordable, a lot of folks still owe more on their mortgage than their home is worth," Vitner said. "And credit is still severely impaired."

Homes are even more affordable in the Treasure Coast, where 84.9 percent of homes sold in the first quarter were in reach of the typical family, which made $59,600. The affordability index for the Treasure Coast reached 87.8 percent last year.

Florida's return to affordability helps employers attract people to the state, said Tony Villamil, an economist and dean of the business school at St. Thomas University in Miami Gardens.

"On the positive side, it's good for the business climate," Villamil said. "On the downside, that reflects a very weak housing market."

The national Housing Opportunity Index reached a record level of 74.6 percent in the first quarter, the National Association of Home Builders said. That meant that nearly three-quarters of new and existing homes sold in those three months were affordable to families earning the national median income of $64,400. Until 2009, the index rarely topped 65 percent.omeownership is within reach of more households than it has been for more than two decades," Bob Nielsen, chairman of the national association, said in a prepared statement. "While this is good news for consumers, home buyers and builders continue to confront extremely tight credit conditions, and this remains a significant obstacle to many potential home sales."

The nation's most affordable housing market is Kokomo, Ind., where 98.6 percent of homes are within reach of a typical family. New York's index of 24.1 percent made it the nation's least affordable market.

~ jeff_ostrowski@pbpost.com