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.
Friday, September 24, 2010
Friday, September 17, 2010
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.
• 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.
Tuesday, September 7, 2010
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.
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.
Thursday, August 12, 2010
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
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
Tuesday, August 3, 2010
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.
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.
Wednesday, July 7, 2010
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.
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.
Friday, June 11, 2010
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.)
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.)
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