Retouched Realtor Headshots for $80

Get your Realtor® headshot done today.

Currently, I'm offering a special for $80 for Broward Realtors, which includes a retouched image and a CD with the digital images, sized for various purposes. For this rate, the image must be taken in my studio in Wilton Manors, FL. The image will be retouched with your supervision. The entire process takes about 1.5 hours and allows you to leave with your finished image. Everything ready for digital usage or printing of your choice.

One of your most important marketing icon is your image. Typically, you use it for everything. A great headshot presents you the best way to clients and reinforces a positive impression. Call today for more info. 954.54.7.3146.

Helping the Realtor Help You

Buyers should realize that a Realtor's primary purpose is to sell homes--not be a tour guide, psychoanalyst or market data source. With all the resources currently on the Internet, a buyer should be prepared with a defined list of needs to help the Realtor guide the buyer to the best valued house  within his/her parameters. So what is the information you will need to provide to the Realtor?

First, determine a price point. This decision may seem obvious, but several factors influence this outcome. Is the deal going to be cash or financed? If cash, will there be enough extra money to pay for the renovations. If financed, the buyer must get pre-approved for the purchase. Financing is difficult to get currently, so the buyer shouldn't assume that the amount of money they want to finance will be available. Get pre-approved. In today's market, that is the first question that comes out of a realtors mouth.

Second, decide on a location. Drive around neighborhoods and determine where you want to be. Realtors will certainly advise you on neighborhoods that fit your financial or physical parameters, but legally, they are not allowed to confirm or deny specific demographics for neighborhoods.

Finally, create a list of "must haves". Not "wants". For example, if you currently have a pet and you must keep the pet in your next move, that would be a "must accept dogs at the requisite weight and breed".  A want may be a preference for a pavered drive--instead of a stamped concrete--but it isn't essential to your move.

If you do some prework before you meet with your Realtor, he/she will be able to show you properties that are on target.

Why Chose Century 21?

Foreclosure Activity at a 40 Month Low

Foreclosures have decreased steadily over the last several months. April saw a 40-month low--decreasing 9% since March and 34% from a year ago. That's a good sign that the market is recovering. As a result, prices have stabilized or increased.

Unfortunately, foreclosures are taking longer to close. Less than 30% of foreclosures are available for sale from the bank. That translates into a huge inventory that is being strategically made available to realtors and the public.

Over 3.7 million homeowners are 90+ days delinquent in their home loans. But the options to get out of delinquency are limited. We are not seeing much improvement in loan modifications, but there is an increase in short sales.

So You Want to Buy a $50K Property in Broward County!

With websites constantly promoting how inexpensive properties are in various location throughout the US, the average buyer may think that any property is available anywhere for under $50K--as long as they have cash. The reality of the situation is quite different. In South Florida, there are properties available for $50K, but rarely are they nice and in great neighborhoods. This fact is particularly true for single family homes. So where are the bargains today?

If you want to purchase a foreclosure or short sale, there are lots of $50K and less properties. The units will probably need fixing up, and you may need to have patience to close the deal. But they are there. Be aware that lots of other buyers are out there searching for the that same property, so placing a successful bid on a property  may be simply good timing or outbidding the competitor.

The best deals for the frugal buyer are 55+  communities. You must be 55 years of age or older to purchase these units. (Exceptions do exist, but one person owning and/or living in the unit must be of age.) Often times these communities have very strict rules, so if freestyle living is your option, these properties wouldn't be a good choice for you.

Single family houses under $50K truly the bottom 1% of the market. That means the houses will typically be in less desirable neighborhoods, need lots of work or possibly have have fees (liens, association dues, repairs to occupy, etc.) attached to the house. These types of properties are best purchased by contractors, investors with house rehab skills and demolish companies. For the average owner, these are typically money pits, so be careful and ask lots of questions along the way. Auctions may seem like a great way to get a cheap property, but be aware that you are not getting clear title and may inherit expensive liens and taxes.

In Broward County, FL, the $50K houses, condos, and townhouses are more common on the west side of town and are usually old 1950s and 60s vacation property. If the deal looks to good to be true, it may be. Lots of newer properties on the market may have high maintenance fees, chinese drywall, water leaks, etc. Location is a big determinant in price, so as you get closer to the ocean, fewer houses are available at that the under $50K price point.

Remember shopping for homes can be fun, but at this price point, realtors make very little commission, so work with your realtor by previewing the outsides of units first and driving around the neighborhoods. Your realtor can help you best if you do your pre-work.

What to Expect in Closing Costs

Many are taking advantage of this year’s lower mortgage rates to purchase a home. Pent up with excitement, many families, who have scrimped and saved for a down-payment, jump for joy when the mortgage lender finally approves their application. But, they should realize that there’s a whole new set of expenses that must be covered before actually closing on the sale.

New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.

A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as “points,” these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. “Points” can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.

Title insurance can be a substantial expense. The policy covers any financial set-back caused by unforeseen defects in the purchased property and home. The one-time title fee, including search and examination, averages around $400-700 for a $100,000 home, but it’s recommended that you check with a local title insurance agent ahead of time to effectively determine what you’ll owe before closing.

Additional costs, such as attorney charges, and recording, transfer and inspection fees, can also be predicated ahead of time by the buyer. Most often pest and survey inspections, although included in the official closing statement, are conducted and paid for long before the closing date. However, buyers should consider them as additional up-front costs.

Some closing costs, such as “points,” are fully tax deductible that tax year if you show proof of a separate lump sum payment. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.

Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations. Be sure to check with an attorney or real estate agent before the closing to determine your property tax commitments.

Also, be prepared to pay any assessments if buying a condominium or into an association-governed property. Fees for credit reports, notary public seals and assumptions, which includes the processing of official documents, may also arise.

Knowing what total closing costs will be before starting your home search can help you better understand what price range is right for you. In the end, the process of closing on a mortgage will be easier than you think, leaving more time to plan for your new home.

The Contractor Agreement: 7 Steps to an Iron-Clad Contract

Follow these seven tips to make sure your contractor agreement works in your favor—not your builder’s.

Step 1: Hire a lawyer

Contractors use their own forms, which are drafted for their benefit, not yours. You’ll benefit from hiring an attorney to review your contractor agreement or draft one that’s you-friendly. Even though this may cost around $250 to $500, it can save thousands of dollars later if there’s a dispute.

Step 2: Take the home court advantage

Add a “choice of law” or “forum selection” provision, which says that disputes will be litigated on your turf. This provides protection against out-of-town contractors or suppliers—you don’t want to have to drag yourself across multiple state lines for a lawsuit.


Step 3: Create an incentive to finish

Define when the contactor will deliver on his promises, and when he’ll get his money. Within the contractor agreement, create a payment schedule in your favor by holding money back until the work is fully completed and you’ve verified the final payments to subcontractors. Maintain control by holding the purse strings.

Step 4: Reeling in a runaway contractor

The most common problem you’ll encounter is a general contractor who gets paid, but doesn’t pay his subcontractors and suppliers—possibly leaving you on the hook, according to Craig Robelen, a home builder in Boca Raton, Fla.

Robelen advises protecting yourself upfront by requesting the names of all professionals your builder will work with. Verify that your contractor has paid his subcontractors by requesting conditional partial lien releases during the construction term, and a final lien release at completion. (Have the general contractor collect them and present them to you.) These are essentially formal acknowledgments from subcontractors that they are being paid for work done.

Also, see if your contractor has a “payment bond” that guarantees subcontractors will be paid.

Step 5: Corral unauthorized costs

Your contract should state that any changes that will affect the price of construction should be in writing and countersigned by both you and your contractor. This protects you from unauthorized charges.

Step 6: Avoid kickbacks

Protect yourself from kickbacks—where contractors gets bonuses from their subs for referring business—by requesting that builders sign affidavits that they’re not getting any “fees” from subcontractors as a prerequisite for doing business with them. Keep costs well-defined by asking for a “bid summary,” which should show a minimum of three quotes in every cost category of your budget.


Step 7: Binding words

If you’d like to avoid going to court in case of a dispute, add a clause in the contractor agreement for binding arbitration. If there’s a problem, you and your contractor will plead your case in front of a non-biased arbitrator, whose decision will be final.

If your contractor balks on any contract point you feel strongly about, do some more research. Maybe what you’re asking isn’t typical for that kind of job. Talk with neighbors who have had similar work done and sound out other contractors regarding their policies on the disputed issue before you sign anything. This helps you determine what’s customary for your particular area.

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Article written for National Realtor Association by Barbara Eisner Baye. She has written about personal finance for the past 17 years. She recently completed a home renovation on time, on budget, with the aid of a cold compress on her forehead.





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Flipping Okay with FHA, But Guidelines Exist

Some lender have updated their FHA flipping guidelines to allow an FHA flip transaction after only 30 Days. Previous FHA guidelines did NOT allow flip transactions within the first 90 days and required two appraisals for flips from 91 - 180 days. That process has changed


The guidelines still require two appraisals for flip transactions from 31 days - 180 days period.  The buyer can only pay for one of the appaisals. The seller in a 31- 180 FHA flip transaction must agree to pay for the second appraisal.

A FHA transaction bought directly from a bank (i.e REO Owned) does not constitute a flip transaction simply because it a foreclosure. A flip transaction is if an investor buys the property at auction or bank, etc. and is trying to re-sell, or "flip" it, for a quick profit.

Tighter Credit Parameters Mean Harder-to-get Loans

Fannie Mae published an underwriting guideline update on 12/11/2010 which further restricted underwriting guidelines.A couple of the issues that have surfaced are:

- Debt-to-income ratios are further reduced. Back-end ratios exceeding 45% create a huge stumbling block and ratios greater than 50% are almost certain to elicit a denial. Many banks have instituted  "Overlays" which add their own guidelines and make the loan even more restrictive than Fannie Mae's guidelines.

AMEX and 30-day charge accounts are now included in the borrower's debt ratios. Historically, AMEX accounts and other 30-day charge accounts that must be paid in full at the end of each month were NOT counted into a borrower's debt to income ratios. The new update now REQUIRES these type of accounts to be included. The minimum payment will be calculated as 5% of the balance which shows on the credit report.

Historically, medical collections were not required to be paid in full. However, some the Desktop Underwritering programs require 4-year old medical collections to be paid as a condition of the loan. This caveat is a BIG ISSUE.

Short Sales vs. Foreclosure

The current guidelines for a foreclosure state that a person with a foreclosure on their credit report is NOT eligible for financing within the first four years following the foreclosure. Fannie Mae is considering INCREASING the time frame to SEVEN YEARS from the date of the foreclosure.

Short Sales however have the same convention guideline of being four years from the date of the short sale or three years in the case of a FHA loan. If there were NO late payments within the year prior to the short sale, FHA will allow financing after two years.

The bottom line is that if a seller is weighing the options between the hassle of a short sale vs. a foreclosure, SEVEN years from the date of a foreclosure is a considerably longer wait time then 3 - 4 years required for a short sale.

Mortgage Rates Make Abrupt Move Upward

The 30 Year Conventional mortgage rate has moved above 5% from a low of 4.250% a few weeks ago and the 15 Year Conventional rate is above 4% for the first time since the end of July. This is attributable to many things (read my 'Mortgage Rates Make A Move' post from December 3). Also, economic news in the last few days has brought market concerns over stronger economic growth that could lead to an increase in inflation. This has added fuel to the fire in the rise in mortgage rates.

This is a very strong move in just a few days to say the least. It looks like the bond market is VERY oversold at the moment. I still think rates will dip again in late January or mid February when bargain buyers enter the market. Do I think we will see a 30 Year at 4.250% again? No. I do think we could see 4.500% though.

There are definitely a lot of people who missed the opportunity to refinance. When mortgage rates are at or near record lows for so long people seem to get complacent that the rates will continue to stay low. The bottom line is those looking to refinance are late to the party at this point and may have to wait a few months. When and if rates drop they need to lock immediately!

Those looking to purchase a home should not delay based on higher rates. What should be most important to potential buyers is whether they have a job, are confident they’ll keep it and are sure that the home is affordable to them. Not only will rates probably increase later in 2011 underwriting will also become more stringent. Those who qualify for a mortgage today may not qualify in a few months. Rates are still at great levels and it is a Buyers market.

 

Money Available for Purchasers of Distressed Properties

Money remains available through the REALTOR® Association of Greater Fort Lauderdale’s Broward Home Improvement Program (B-HIP) to help buyers improve their homes. 
Up to $500 per household is available to assist moderate and lower income families that have purchased distressed properties with the purchase of missing or damaged household appliances or costs associated with exterior improvements to their property. 

This program presents a great opportunity for the RAGFL REALTOR® community to help homebuyers, reduce blight and improve the curbside appeal of local communities.

 

Broward County New Mortgage Credit for First Time Homeowners

Currently, Broward County offers a Mortgage Credit Certificate (MCC) to first-time homeowners. An MCC is a federal income tax credit designed to assist a person seeking affordable homeownership. With an MCC, the qualified home buyer is eligible to write off a portion of the the annual interest paid on the mortgage as a special tax credit, not to exceed $2,000, during each year in which they occupy the home as their principal residence. The portion or amount of the tax credit is equal to the annual mortgage interest paid multiplied by the mortgage credit rate (30%. This credit reduces the federal income taxes of the buyer and has the potential of saving the MCC holder thousands of dollars over the live of the loan.

How does a Home Buyer qualify and apply?

the Home Buyer must purchase a home with Broward County, Florida and may not have owned a home as their primary residence in the last three years. There are exceptions that apply to target areas. Home buyer's household income and the purchase price must not exceed the maximum limits set by the program. The Home buyer must occupy the home as a principal residence and must apply for the MCC through a participating lender. In addition, the buyer must complete a pre-purchase home buyer education course.

Home buyers should apply for the MCC at the same time they make a formal application for a mortgage loan. Funds are available on a first-come, first-serve basis.

Information provided by Jim Monniger, First Trust Mortgage.

2/2 Palm Aire Condo Just Sold for $105K

Properties are moving in Palm Aire. This luxury 2/2 condo sold September 30 for $105K. Owners fixed condos to sell. This unit had a brand new kitchen and baths, painted and freshly carpeted. Keep your eyes open for similar deals. Sellers realize that they need to get the condo in excellent condition to sell to the discerning buyer. Call Kirk if you are looking in Palm Aire or the surrounding area.

Finding a House More Easily

Realtors are not clairvoyant. So, the more information or self discovery you can do before you contact a realtor, the better. Here are a few tips on helping the buyer narrow down their property search.

- Get pre-approved before you speak with a realtor. Remember, just making the payments isn't enough. You will have to prove the funds for a downpayment for the loan and closing costs. You may need to have an inspection and other out-of-pocket expenses to cover, so make sure you consider that in your purchasing equation. Also, the property may need some work, allocate funds for the immediate improvements necessary upon closing.

- Drive around neighborhoods and identify those street you general like and dislike. A city may have 50 neighborhoods that would be potential options for you, so check out properties on the Internet and drive by them. Once you check out the area, you will can have an intelligent discussion with your realtor about where you want to live.

- Discuss the timing of your closing. Do you need to be in a place in one month or one year? The Realtor can direct you to the proper options and the best deals.

- Get a realistic grasp of what your dollar can buy. Websites like Realtor.com, Trulia.com and other home search sites can help you accurately determine what the amount of money you have available will purchase. Once a customer came into the office with a printout of a property that had a typo in the listing that stating the 6/6 house in a very exclusive section of town was priced at $100K. There was at least on "0" missing from the end of that number. The woman insisted on seeing it, but after a call to the agent, she realized it was mismarked. Realtors know the true value of a house and let you know if the property is truly a deal or not.

- Create a list of "must haves", "would like to haves" and "don't wants" for the agent to use in the search process. Make sure you don't get too specific. Too tight of search criteria can eliminate viable properties. For example, if you insist on a 3-stall garage and there is a property that has a 2-stall and carport that may be suit your needs, you would eliminate that possibility by the narrowing the search criteria too far.

Good luck on finding a home and remember to do your research. Even with the help of a Realtor, the final decision is up to you.

A Few Easy Ways to Take the Headache out of Moving

Moving from one house to another is always a challenge, but it doesn’t have to be a nightmare. Here are some simple tips on how to get it done with minimal stress and strain.

• Look at all the alternatives: hiring a moving company, for example, versus renting a truck and doing it yourself. Whichever alternative makes most sense for you, get bids from more than one vendor.
• A few days before the moving company is scheduled to arrive or you’re supposed to pick up your rental truck, call to confirm that everything is on track to happen when it’s supposed to:
• Prepare your change of address cards in advance and send them out as soon as it’s appropriate to do so. The post office, utilities, companies and people you do business with, city hall, friends, relatives – all should be notified of your move.
• Get an early start on packing by concentrating on seldom-used items first. Each box should have its contents and the room those contents belong in written on it clearly.
• Take a hard look at things you seldom or never use and throw away as many of them as you can. The more you throw away, the less you’ll have to move. Every item you throw away is one less item to clutter up you new home.
• Use your extra towels and linens to protect breakables. When your supply of these things is exhausted, crumpled newspaper makes an excellent substitute. Write “Fragile” on all appropriate boxes.
• Put your valuables (such as jewelry) and important documents (birth certificates, car titles, etc.) aside in some safe place where they won’t be misplaced.
• When the house is empty, go back for a thorough final inspection. Check closets, crawl spaces, basement, attic, out-of-the-way nooks and crannies of all kinds. Have a second person make the same inspection separately.
• Clean your new home thoroughly before moving in. It’s infinitely easier that way.
• Decide in advance where you want the heavy furniture. Changing your mind after the movers have departed is no fun – especially for your back!
• Locate all fuses, circuit breakers, and water/gas and electrical valves. Record the meter readings and check the smoke detectors.
• List the phone numbers of the local police and fire stations, doctors, nearby hospitals, etc. Put a copy of your list near each phone.

Above all, plan, plan, plan and plan some more. Make a schedule you can live with, and then stick to it. Preparation and forethought will help you to keep everything under control and finish the move with your sanity and your nervous system intact.

Negotiating Strategies for Today's Market in Florida

Determining what you should bid on a property has turned into a much more involved process today than it was 6 months ago. Here are some tips:

Regular Sale. A regular sale is where an individual or entity owns the property and is selling it outright. This situation allows for the most downward pricing negotiation currently. If a 5-10% concession in the price is achieved the buyer is doing great. If the buyer tries to "low-ball" an offer, the seller may not counter or the counter may be minimal in nature. Don't expect the seller to come back with the midpoint of the gap between the buyer's offer and seller's counter. Just because you feel a property isn't worth the price, doesn't mean the seller agrees with that.

Short Sale. The bank that is providing the concession to the seller expects to get market value from the property, not 5 cents on the dollar. Bid market value. If not the buyer may be 4 months into the deal and have a rejected or countered offer from the bank. A smart buyer bids with 5% lower of the market value. That way the bank may see the offer as close enough.

Foreclosure. Many foreclosures (bank-owned properties) are put on the market a below-market value, but they are actually selling for market value or higher. Be careful not to get caught in the bidding frenzy of a property. Most bank owners require a 10 days waiting period after the property is on the market to get multiple "highest and best" offers. For lower priced foreclosures, a buyer may want to put a higher than asking price bid in on the property. (Investors have now upped the amount of money they are spending to get prime properties, so investors and owner occupied buyers are competing for the same properties.

As the market has bottomed, prices are not as negotiable as in a descending marketplace. Look for other concession than price to pretty the deal.

Good News for Buyers with a Loan

As a sign that lenders what to get back into the Florida market, 95% financing is once again available for the purchase of a SFD (Single Family Detached) PRIMARY RESIDENCE. (I.e. Condos, Townhouses & "Attached" Properties, Second Homes and Investment Properties are NOT eligible)

Of course the guidelines pertaining to credit scores and debt to income ratios are strict but who cares, it is VERY good news!

APPRAISAL PROBLEMS??? Think "Home Path" and "Home Path Renovation" properties. They DO NOT require an appraisal. First Trust Mortgage is one of the FEW lenders in South Florida approved for the "Home Path Renovation" mortgage program. Home Path Renovation is similar to the FHA 203(K) program but is for home path properties in need of repair.

LISTING AGENTS - ROOF PROBLEMS / REPAIR ISSUES ????? Think 203(K). Do NOT shy away from the 203(K) because of bad rumors. The secret to success is a knowledgable and experienced mortgage broker

Provided by Jim Monninger, Mortgage Consultant, First Trust Mortgage Corporation

Foreclosure Market in Florida Burgeoning

As seen on AOL.com
South Florida Speculators Outbid Average Homebuyers
By Lisa Selin Davis Jul 30th 2010 @ 5:01PM

You'd think that now would be the time to pick up a bargain home in South Florida. After all, there are more than 96,000 foreclosures to choose from, and that's just from the first six months of 2010, according to the Miami Herald: "Distressed properties are still dominating the market, with more than half of all homes and condos sold last month at some stage in the foreclosure process."

Floridians with modest nest eggs who were priced out of home ownership during the boom should be able to get their hands on a sweet little slice of subdivision now that prices have plummeted. Right?

Not exactly. It turns out that investors are opening their purse strings, too, beating regular buyers to the punch.

"Cash-happy investors have been scooping up these bargain basement deals at a fast clip, often before middle-income buyers can get financing," according to the Herald. The nest egg can't compare to the deep pockets of developers, speculators and investors who can self-finance, especially in the wary world of mortgage lending. And foreclosed homes tend to sell for 25 less than their non-foreclosed counterparts, hard for the cash-in-hand to resist.

While it's bad news for middle class Americans who thought they'd finally get a piece of the real estate pie, it's decent news for the Florida economy. Median sales prices in Miami-Dade county are still down from a year ago -- 4 percent lower -- but they're 3.4 percent higher than they were in May. Sales are up from a year ago, and single-family home prices are slightly higher.

The real mystery is what the investors will do with the homes. Buyers tend to be more patient, willing to wait decades to see their home values appreciate, whereas investors prefer to see a quick return on investment.

Will the homes sit empty, waiting for a new round of bank-approved buyers? Or will those middle class buyers who missed out on the first round be willing to pony up a little more for a property they missed out on initially?

We'll have to tune in next quarter to see.

Inexpensive Property Prices Stabilizing

Being six months behind the market is a tough position for buyers. We're seeing an increase in individuals looking for the 2 bedroom $50,000 condo in a nice neighborhood. One could have found that property 6 months ago, but now they are getting VERY rare in Ft. Lauderdale. They still exist, but are typically on the market less than a week and usually have something wrong with them. (location, high maintenance fees, structural problems, etc.)

So what is the best buy today? "Short sale" properties seem to be priced the cheapest because realtors are avoiding them. Most buyers are too impatient to stick with the closing process and break the contract before approvals. HOWEVER, the bank expects the property to go for market value, so offers need to be reasonable. Appraisals are the biggest issue in successfully closing the deal.

Foreclosures at the $50K level have turned into price wars. So if you are a buyer looking at a $50K-type property, expect that the property will go for 10% or more higher than asking price. The smart buyer will consider all types of properties on the market, because deals are only deals if they exceed your buying expections.

Appraisals: A Catch 22

Appraisals are becoming the bane of the Real Estate world. Banks that have customers in the short sale mode are over estimating the value of the property to assure that they get the greatest dollar value for the property. Foreclosures are undervaluing property, then putting an overly attractive price tags on a property which then results in price wars on undeserving properties. Mortgage lenders are undervaluing properties and offering insufficient financing for properties.

The buyer and sellers are the ones who lose in this writhing market. Most realtors are have a difficult time advising customers on how to bid for a property. If the customer bids too much, they may get the property, but can't get a loan. Conversely, if a customer bids too low, the offer is rejected by the foreclosure bank which typically doesn't counter offer, just accepts the highest and best.

Currently no convenient answer exists as to what the buyer or seller should do. However, the first step in either buying or selling your property is to ask your realtor for comparables of the property. For a seller, it may be worth the $200-400 to have an appraisal done that can be included in the MLX listing. (That is if it supports your asking price.) For buyers, have your realtor explain their purchasing strategy on how to best get the property you want. (Negotiating has a different strategy than bidding.)