The Future is bright and I already have some nice shades!!! (purchased from our wonderful Pier Park)
With all the negative talk in the news and in the local rags you would not know that there are many bright spots in our horizon. Northwest Florida is poised and ready to blossom and flourish. Many renowned and respected groups such as CNNmoney.com, American Express, Fortune Magazine and others are encouraged about our Real Estate market here.
American Express says that Northwest Florida is one of its Top Ten vacation destinations in the country. Northwest Florida is second behind the Orlando area in Florida tourism. Northwest Florida beaches are world-class, drawing over seven million tourists each year — more than any other East Coast beach area.
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I am so excited that the tax buyer credit has not only extended but has expanded. Now move-up/repeat-home buyers can jump on board and reap the benefits of the program. I think most people are aware of the provisions and rules applied to the old bill but thought it would be fun to look at some of the new things available for those that are NOT first time home buyers. The Worker, Home ownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat-home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).
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I have had a hard time focusing on what I want to discuss with you this week so I decided to share from one of my favorite Real Estate gurus, Barbara Corcoran who is a regular on The Today Show. I love her on so many levels but mostly because after making about straight D’s in high school and having over 20 jobs by age 23 she found her niche!!! I just love stories like that because it proves what I believe: that we all have a gift and how fun it is when we find it and share it. I guess I got a little side tracked with my happy talk so lets get to the Real Estate myths according to Barbara.
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It seems that more and more people are getting excited about being on the winning end of the foreclosure crisis. Even though they are great deals customers sometimes are frustrated with the amount of red tape we have to go through and the fact that we have to do it the banks way. The game has changed in Real estate and navigating short sales and foreclosures requires a little study so I thought I would share a few foreclosure cliff notes with you.
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There have been more questions than answers this week. Among other, people have asked: What do those zeroed out items mean in a contract and are you sure you can not take multiple offers on a short sale??? Since we do not have time enough to answer the first one lets talk about some more questions that I continue to get about Short sales. All of my customers and myself agree that the short sale is certainly not a short process and there continues to be so much confusion on how to handle them between the buyer and the seller.
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Last week we addressed the Wind Mitigation inspection and how you could save some bucks on your home owners insurance. Since space would not allow I only gave a brief introduction to what was involved and how it resulted in savings for you. This week we are going to go a little deeper and answer some other questions you may have about the Uniform Mitigation Verification Inspection form. Again, please consult an expert that can help you as I have borrowed this information from an article written by John Staab a licensed inspector as well as the web site of Richard Pickle inspector in the Orlando Area.
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Lucky for me real life gives me my subject matter every week and this week I have some great information about a friend on Facebook, and he had a GREAT article with FAQ on Wind Mitigation – so I get to borrow it for you. WE Floridians are blessed with incredible beaches, endless coastline and some pretty fabulous weather but along with that comes our exposure to tropical weather that can bring on those ill fated hurricanes. Because of this we tend to have some hefty insurance cost but now there are some things that you can do to mitigate that with the help of your FAVORITE home inspector.
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WOW what a week for Real Estate for me with so many great things to write about. I could not decide if I needed to write an article or get some extensive therapy or maybe change jobs. Just when we thought we had this condo thing almost figured out we get thrown another Real Estate curve ball. Receivership has been a word that keeps cropping up in Real estate circles with many more questions than answers, so I thought I would get the scoop by reading and calling different groups whose complexes are already in Receivership.
First of all quite simply: Receivership happens for many reasons but for our purposes in really easy layman terms I will share what little I know. If a developer owns a property and is no longer able to pay, the developer oftentimes will sign over ownership, and in other cases the Receiver comes in and manages the complex and the developer retains ownership. Now keep it mind this is quite simplified, but the thing that potential condo buyers want to know is how does it impact them and is it always a bad thing????
I have had many questions about what this means for my potential buyers. This is an impossible question to answer with a blanket statement because it depends on the overall stability of the complex. The fear that many buyers have when looking to make a purchase is the ability of the HOA to fund itself and what happens when owners do not pay. Does the complex go down the tubes? Or better yet are the few owners that ARE paying stuck with a huge assessment? While these are valid concerns that is not always the case so it is best to check out each complex and see also if the bank is willing to fund them. In spite of the horror stories out there, many banks will loan money on a complex that is in Receivership so it is not an automatic death sentence for the condo. Do your homework before you cross a troubled condo off your list. Have confidence that is in the banks best interest that the complex remains stable. The new standards are very stringent and are designed to keep us from going down the same dark road again.
The other fears that buyers have when they find out a condo is in Receivership is the prospect of the remaining condos going to auction further driving the prices down. While that may happen the fact remains that until things sell then nothing is going to recover. The best thing to know about values in a complex is that they are a moving target. If you are buying in today’s market you are getting a DEAL. If all was perfect and the complex was completely solid then we would not be talking and you would be buying at yesterdays prices. Prices may jump around for a few more years but now is still a great time to get the most bang for your buck.
So this big bad thing called Receivership may not be the awful foe that is painted out to be. Please check with your bank and get their take on it and by all means check out the solvency of the Home Owners Association and you many just find out that you can get a really great deal. If you are a condo buyer, chances are you realize that you need to plan on enjoying it for many years to come and build the memories with your friends and family that no recession or threat of one can take away. There are many people (especially the news) that at times will paint an awful picture when that may not be the case. I assure you sitting on your beach front balcony may enhance your life and make you think about what really is important and you will find that they are all sitting on the balcony with you. Once again, thanks for the therapy and I think challenges and all. . . I will keep my job!!!! Besides I get to work a and live on the beach, what a country!!!!
All you sweet Beach show followers know that ALL of my articles come from Real life problems or challenges that happen during my week; I conduct a therapy session by bringing them before you. So thanks for listening. So many things have already come up this week with 2 short sales buyer back outs after 5 months, one going into foreclosure and lending and appraisal issues. . . where do we start? Although all that needs some reflection I had another issue that came up this week and I think many people are not aware of how some of the contingency issues work in Florida. So lets talk a little about common Purchase Contract Contingencies that a buyer may utilize.
I have a sell going on and we are waiting on an appraisal and holding our breaths to make sure it flies and the question was. . . What if it does not appraise? Does the buyer have to buy it? For the most part the answer is NO. Unless the buyer states that the offer is cash and does not put an appraisal contingency in the contract, then failure of property to appraise is an acceptable back out of a contract. The bank will require an appraisal by a third party that has no interest in the sale to determine the property value. There was a time in the distant past that a buyer would just come to the table with some extra cash to buy that dream hacienda. Not saying that NEVER happens but do not count on it. Many cash offers today include an appraisal clause in the contract.
Another common contingency is the inspection period which varies from state to state and can be explicitly stated in the contract. If the sale is an AS IS with right to inspect then the buyer can get an inspection and at his sole discretion get out of the contract if he does not like the findings of the inspection. If a buyer has a regular contact such as FAR 9 then the seller is required to fix any warranted or safety items. The seller and the buyer will discuss and come to terms with how that is handled. But for clarification sake it is the duty of the seller to have those items fixed by a licensed professional and may be required to have a re-inspection before close.
Federal law also gives a buyer 10 days to inspect for lead paint. Don’t run for the hills this will only apply to older homes but again ask your trusted Realtor. We will talk about Chinese Dry Wall another time!!!
Lender approval is another facet of contingencies embedded in the contract unless waved, and even though a customer has a pre-approval letter that does not mean that he has the loan locked in. Any number of things can happen and sometimes do so if a buyer can not attain a loan he has a suitable back out of a contract. A perfect example as happened in one of my deals today was a buyer who lost their job before the property went to close. She now no longer qualifies for her loan so was able to legitimately get out of her contract and have her earnest money returned.
I have heard in the past contingencies called weasel clauses because they allowed a person to weasel out of a contract. That does sound kind of slimy but the fact is contingencies are a necessary part of the Real Estate transaction, and your Realtor can explain all of these to you. Remember I am not a lawyer and I do not even play one on TV so this is meant to be a basic intro to contingencies as they relate to a typical sale in Florida. Thanks for being my therapist one more time.
I love my job and I think that is in part because of all the great people I get to work with. Active working Realtors are some of the hardest working most energetic people I have ever met. They love to share their knowledge of Real Estate with their customers and thankfully with each other. I enjoy working with my other Realtor buddies and so respect what they do so I wanted you to know what your Realtor can do for you.
Many people try to sell their homes themselves and that is certainly an option that all of us have, however when doing so you miss a valuable selling tool. According to the National Association of Realtors more than half of all home sales involve a listing agent and a buyers agent. The majority of those sales are made possible because of the all powerful MLS system that is blasted out to countless Realtors and people and reaches many web sites and locations across the United States. To add to that, many Realtors are a part of advertising campaigns through magazines and sites such and Homes and Land further putting your listing in front of even more people. Statistics show that nine out of 10 people use a real estate agent in their search for a home and adding to that, internet has risen as a mega tool from only 2% of buyers in 1995 to 79% in 2006 so you can imagine what the stats say now.
The MLS system is great but would be lacking without all the buzz that Realtors create when we are out and about sharing with each other. Realtors are really my best customers. One of my favorite sales happened when I was NOT WORKING. I went to Carrabbas and saw one of my favorite Realtors (you know who you are) waiting tables and I just happened to mention that I had a great listing with exceptional rental dollars generated. Ward had just the right buyer in mind!!! Needless to say that was an unexpected treat but that happens all the time. Listing with a Realtor is like the gift that keeps on giving. When you employ a Realtor to market your property you can get a lot of bang for your buck.
One of the most pertinent tangible things that your Realtor will do when listing your home is to give you up-to-date information on what is happening in your market and the price, financing and condition of competing homes. You need this information so you can sell your house at the best price and as quickly as possible. Your Realtor has vast knowledge of market values in your community and that is vital today in selling your home. Remember it does not matter what something is listed for what matters is what it is selling for.
Advertising your property is more than throwing a sign up and your Realtor will know how and where to advertise your property. There a is a misconception that you just have to advertise and that sells the Real Estate. The National Association of Realtors indicate that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts.
Your Realtor has spent years of training and learning how to market and sell what may be your biggest investment ever. There is so much more to Real Estate than making a sale; there are procedures for closing the deal that your Realtor will know how to guide you through. Zig Ziglar always said you have to close the deal to be a salesman, so with that in mind call your favorite Realtor and close that deal. Thanks to all my sweet Realtor friends out there for all your knowledge and guidance. . . you really are some of the best customers ever. And again, you know who you are!
