Why I Love Being A Realtor

This is not really a tip more an explanation of what I like about being a Realtor since we are kind of taking a week off from our normal show and articles. When I was a little girl my grandfather and my dad were contractors and later we had a Real Estate company right on Rucker Blvd. I was not a natural born Realtor and when my dad suggested that I become a licensed Realtor I stomped to a class at the college very grudgingly. Curt (that is what we called him) asked me to get my license so I could do more than work on just our family owned stuff. I think I said something sweet like “over my dead body” Well I am very much alive and I am really loving what I do and can’t imagine not doing it.

I want to add that my father was one of the sweetest men and all the people that worked for him just loved him. I tell you all this because I was the only one that he ever fired. Somehow he did not think that I should get paid for filing my nails and going to lunch at the Mexican joint down the road. My father has been gone for years and somehow I ended up full circle but this time I am doing it with great joy and there is rarely time to file my nails.

I love being a Realtor and I have a problem knowing when to shut down the computer and my” Crackberry “and call it a night. I have met some of the most interesting people and had some of my most amazing challenges in this career. I laughed and got a little aggravated when a person blogged on one of my articles suggesting that she would love to know how much a Realtor makes by the hour. That is a number I really do not want to know!! What I do know that like many of my Realtor friends I get a thrill out of studying the market and seeing what is sold, pended and back on the market and all those wonderful price reductions. It is a thrill to meet new people all the time and be a part of their first home purchase or help them sell a home to move up to their retirement or dream home. In today’s market it is not so easy but it is satisfying when you help them sell that short sale that takes a load off their mind and their pocket book.

One of my favorite parts of this business is that it is always changing and if you are wanting a job that is never dull then this is the gig. I love my fellow Realtors and in spite of what you may think… most of us really like each other and we get a big rush to help our fellow Realtor. I love it when a Realtor calls me to ask me things about Wild Heron because I happen to know and love that place and they do the same for me when I travel into uncharted territory. A good Realtor is one of the hardest working people I know and learning to work with delayed gratification is a must in this profession especially if you have to have the green reward. Sometimes my reward is someone calling me up and thanking me for helping them find their home and how much they love it and many times the reward is just knowing that I am doing what I love to do.

I have a motto that I really strive to live by and you will see it on everything that I write and it is….”The only people we have to get even with are those that have helped us” My list is long and I hope yours is too. I used to wonder if I could make a difference by being a Realtor or maybe I needed to be someone in a field that was more giving. I have found that I can make a difference and this can be my mission just like any other. So I want to end with a heartfelt thank you to all my customers and all my Realtor friends and my precious people I work with that make this such a fun and exciting career. Thanks for watching TheBeachShow.com and Jason and I will be back in full form next week.
In the meantime, “I have to go file my nails”

The Mystery of the Term 'Condo-tel'

Since I am getting so many questions these days regarding condos and condo-tels and since the secondary market for these properties, i.e. Fannie and Freddie, has all but disappeared, I thought I would try and clarify why a project will or will not fly. First, a condo-tel is not a new concept. It has always been a type of property designation we use along with single family detached, duplex, etc. The problem is that for many years, Fannie and Freddie did not adequately identify beach-front, resort-style condominiums for what they really were. So what makes a condo-tel? Actually, any number of things. I have heard many times that a project is not a condo-tel because it doesn’t have an on-site rental desk. While an on-site rental desk would classify a project as a condo-tel the absence of one does not make it immune. If they have a website that advertises rentals it is a condo-tel. If an owner is required to rent per the bylaws it is a condo-tel. If it has daily maid service it is a condo-tel. So if a project doesn’t have any of these things then it is okay with Fannie and Freddie and fixed-rate financing is available? Not necessarily.

There is another classification we use for condominiums and this is the term ‘warrantable.’ Warrantable refers to whether it can be warranted as sellable to Fannie or Freddie meaning it meets their criteria for an acceptable condominium project. So what makes a condominium ‘non-warrantable’? If the developer is still in control of the HOA it is non-warrantable. If more than 50% of the units are investor owned it is non-warrantable. If one entity owns more than 10% of the total units it is non-warrantable. If the project has pending litigation against it or if a large percentage of owners are delinquent in their HOA dues, or any number of other factors cited by the appraiser can lead to a project being classified as non-warrantable. Every once in a while we come across a project that we can warrant but they are rare to say the least.

Between a project having one or more condo-tel attributes or having one or more of the non-warrantable attributes, you can see that most every condo here on the beach has no secondary market financing available. This is why a few banks like Vision have developed alternative vehicles to get these properties financed. Our portfolio 3/1 and 5/1 ARMs are not a panacea. Yes, they carry a certain amount of risk and the rates are at a premium over the current thirty-year fixed-rates, but, in the absence of a secondary market, these ARMs are the best alternative for providing financing to the buyer while protecting the bank from interest rate risk and meeting our future capital requirements. It is our hope that in there will eventually be a thawing in the secondary market for condos and that our products can provide a bridge to that future. In the meantime, we will continue to lend on these properties because we have a vested interest in seeing them sell and we have a firm belief that the collateral is sound.

Who Really Qualifies for a Condo Loan Anyway?

Okay let me clear this up from the very beginning – I am not a loan expert nor do I play one on TV, but these days that would be a great idea. I have had several customers come to me wanting to purchase a condo and they assume that BECAUSE they have great credit and good income then they are good to go. Sometimes they even have a pre-qual letter and they really feel good. Well not so fast. Lets talk about the real skinny about who can get a loan and what they can buy with it.

I rely on the good wisdom of some really good lenders here in Bay County which brings me to one of the most important points. In MOST cases when buying a condo it would be best to use a local lender who is familar with the local market. While we are on the subject of Local a local appraiser is another vital part of the deal. So much has changed in the last few years and even more so in just the last few months. Because I am not a loan expert I am going to address just a few of the issues surrounding loans on condos in Florida. I hope to give you just enough to have you running to your local lender for the rest of the story.

In speaking to one of my favorite Bankers today he shared that back in the good ole days (creative license) that loaning money to folks was like a 3 legged stool that was income, credit and assets. If you had 2 of the 3 then most likely you were good to go. Now we throw a whole new monkey wrench and there are many more issues to consider. First you must have all 3 to get you started. Sounds like the way we used to borrow back in the day when you really had to make the money to buy the deal. What a concept?

One huge difference is that just because you have all 3 it is important that you find out if the condo that you are getting excited about is an approved project for that bank. Many banks take into consideration the saturation of loans in one condo complex, lack of people paying their dues and maybe even litigation issues to determine if the project is loan worthy. So not only does the customer need to be loan worthy so does the condo!!! In addition the bank will evaluate the building , it’s finances, and market conditions for your area.

So now your are feeling confident we have passed the first test and then the lender wants to know, “Is this your primary home?” “Is this your second home and vacation spot? Oops you say your primary home is just a few miles down the road??? Now the scariest question of all… Is this an investment property? Again in speaking to my various lender friends there is no such thing as investment loans on condos today. You will need to use the green stuff.

Another issue that many find discomforting is the fact that there are no longer just good old conventional fixed loans for condos and the amount needed to put down is greater and the interest rate higher. I have brought up more questions than answers but this should get you started with the questions you need to get answered by your favorite lender so you can buy that condo while the deals are great from your FAVORITE REALTOR.

I hope this does not serve to scare you away because there have never been so many deals and so many choices for the buyer it just means that lending is now a much more conservative and intensive process. I encourage you to find a lender to work with so you can be ready for those deals when they come up.

Mortgage Rates Helped by Stock Slide

As I predicted last week, mortgage rates have managed to ease somewhat over the past week thanks to a slumping stock market that has seen a miserable start to the third quarter. Investors are beginning to think that all of those “green shoots” of economic recovery may have been so many weeds as lackluster earnings reports, a sell off in the commodities markets, and concerns that the third quarter will fail to bring the robust growth many had hoped for are all taking their toll on stocks.

The Dow and S&P 500 both ended the day Tuesday at two month lows. Bonds have benefited from all this uncertainty as investors retreat to the safety of the capital markets and mortgage rates have reaped the reward. The benchmark thirty-year fixed-rate fell below 5.50% to settle in at 5.375% on Tuesday. Remember it was only a couple of weeks ago when we were almost at 6.00%.

Fifteen year mortgage rates fell to 4.625%. There are no big economic reports due out this week and I expect mortgage rates will continue to simply respond to the ups and downs of equities and commodities on a daily basis. With no major market movers, expect rates to remain in the 5.375% range and perhaps ease if the sell-off in stock continues.

11 Reason's Short Sales Take FOREVER

One of my friends had a customer that is demanding for the bank to hurry up and get the short sale done, they are tired of waiting. I bet I am hearing some hearty “Amens” from all my Realtor buddies. And also as life would have it I called my short sale departments to see how my little short sales are coming along so I can report back to my apprehensive buyers. As in most things in life there is a flow to it, a cycle that all things go through to reach their peak or completion. So it is with a “short sale”. Please know that this is straight from a company that I am working with and I am NOT going to name any names. I have had a couple of easy ones but generally it has been taking from 3 to 6 months to get an approval to move to close.

Seller decides he can no longer make payments so he list property with you and gives you an approval letter to speak to his lender. He gathers all of his financials, his budget, his taxes, his last 4 months of bank statements, and his hardship letter. You send all of this in to the bank and you wait and you wait and you wait.
NOTE: it will many times take days before your authorization letter gets to where it needs to be. (this is the easy part)
You are enthusiastic and excited because you get a buyer and grateful that buyer and seller have agreed to the short sale price and you have signed all the forms and additional short sale addendums. You and the other agent try your best to brace the buyer and the seller for the long months ahead.
Offer along with HUD-1 and any other updated documents that the lender needs are sent in and the fun begins. I have a great title company that helps me gather this information. (McNeese)
(Real life example) Contract goes into the company on April 7, 2009, you call each week and the lending company tells you that they are about 4 weeks behind on uploading documents to the system. You continue to call each week and they can’t find it and suggest you send it in again. You get excited because a BPO (Broker Property Opinion) is ordered somewhere along the way.
Now to make it real fun I forgot to tell you that there may be 2 mortgage companies to deal with so we do this times 2!!!! The first mortgage company now tells you that they are close to getting their deal approved and they ask for explanations of customers finances and additional documents that you send in with a gleeful heart. They also inform you that while they are maybe only a month away from completion and it is now June 25 they let you know, oh by the way. . . we want you to call the other mortgage company and tell them that although they are owed over $200,000 on the second note that they will be glad to give them $3,000 of the dollars upon close. The first mortgage holder wants the Realtor to get something in writing from the second mortgage holder. . . now it gets real fun.
(Real life example) Keep in mind that although the buyer knows they need to be patient, it is hard for them and they wonder what in the world is anyone doing. . . is anyone doing ANYTHING? ???? On June 25th second mortgage company informs you that the contract that you sent in on April 7 was opened and reviewed for real on June 15th and by June 24th it was finally in the hands of the FIRST PHASE negotiator. Keep in mind that although first mortgage is almost finished we have to wait on the second. Meantime fees are mounting if the buyer is behind on payments and they usually are.
The first phase negotiator will keep it approximately 15 days to make sure all documents are there that are needed and of course it has been awhile so they need to be updated so you gather the needed paper work and send it in again.
IF all is well the file now goes to the SECOND PHASE negotiator who has 30 days to review. If he finds all things well, the file now travels to the investor.
IF all is well now the investor has from 2 to 30 days to review the file..
Shortly before close they let the seller in on what they are willing to do for them in the way of accepting a lesser amount owed and what the seller contribution needs to be and if all is agreed upon then we all move to close. Oh and one more thing the lender expects the Realtors to take a reduced commission and they do and they all live happily ever after.
If the lender and the seller do not agree and if the buyer gets tired of waiting then it is back to the beginning of the short sale life cycle.

This sale portrayed in my “real life example” is projected to have an answer according to the second mortgage company around September if all goes well. So thus the life cycle if all survive it will be approximately 6 months!!! My purpose in sharing is not to discourage but more to bring attention to the fact that a short sale is anything but short and the more inventory that is sold this way the more difficult it will become. There are no short cuts (no pun intended at all) so just take a deep breath and be very kind to anyone involved in this adventure. I am actually enjoying all that I am learning from this and if patience is not your virtue it will become so. I left out some of the duties that a Realtor will do along the way because my main focus was to let the consumer know why it takes so long so that you can just sit back and enjoy your life while the lenders, Realtors and title companies are working the deal.

Housing Market Bottoms Out

Mortgage rates eased slightly this week as the bond market was reassured by comments form Chinese officials who indicated they still had a taste for US Treasury debt and that the dollar would remain their primary foreign currency reserve. Thirty year mortgage rates settled to just below 5.50% to 5.375% as the yield on the ten year Treasury fell back to 3.5% after pushing 4% two weeks ago. Fifteen year mortgage rates were even more attractive with the no point coupon at 4.75%. With inflation in check and the stock market sputtering I don’t see any significant upward pressure on rates in the short-run. There will be several economic reports over the next week that could create some daily volatility as investors attempt to determine whether the economy is turning the corner or still stuck in a rut.

A report released on Tuesday showed that we may have finally reached the bottom of the housing market nationally. The S&P Case Shiller Index of home prices, though down 18.1% from the same month a year ago, showed only a .6% drop from March to April. This is nearly three quarters lower than the previous month’s decline of 2.2%. The Case Shiller index has shown a monthly decline for every month since July of 2006. Yale Economist and co-creator of the index, Robert Shiller, called it, ” a striking improvement in the rate of home price decline.” The good news was tempered, however, by another report that showed more prime mortgage loans became delinquent in the latest quarter and a report on consumer confidence showed a surprise dip. It will be interesting to see in this week’s report from the National Association of Realtors on pending home sales whether more evidence of a housing recovery can be seen.

The Secret of What Your House is NOT Worth – Revealed

Most of us Realtors face this at one time or another so I think we need to bring it out in the light. How in the world do we price the home correctly without sending the seller running screaming down the street right into the arms of another Realtor? I already told you last week that a fellow got really mad at me when I told him what I thought his house would sell for. One minute I was the bearer of information that he wanted and the next I was an enemy to be reckoned with and I suspect I am not the only Realtor who has had this experience lately.

Continue reading “The Secret of What Your House is NOT Worth – Revealed” →

Median Home Prices Down 16.8%

Mortgage rates have eased slightly after their steep run up over the past three weeks. Thirty year mortgage rates now stand at 5.625% after peaking at 5.75%. Rates could have been pressured above 6% had it not been for the stalled rally on Wall Street that has seen stock prices fall modestly over the past couple of weeks. Investors are beginning to question whether the economy will pull out of the recession as soon as once thought.

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The Secret of What Your Home's Worth – REVEALED

I, like many other Realtors, send out a postcard when I sell a property proclaiming my excitement in hopes that someone will give me a call. Thankfully most of the people are sweet and just want some information, mostly on the value of their own home in that neighborhood and I am tickled to give them that information. This week I made a mistake. Although I knew better, I let a man convince me to give him a value of his home with only a little information. He was determined that I tell him what his house was worth sight unseen with little knowledge of his home other than the number of rooms and the year it was built. I kindly calculated what I thought it would be worth based on the homes that I know that have been selling and provided him a range of what I thought was reasonable. Apparently, I was WRONG, he did not like the number I gave him so that brings us to this weeks tip.

There are some things that your Realtor must know in order to give you an accurate value of your home. Doing it blindly over the phone is not the best bet and keep in mind it is every one’s best interest that she give you the right value. Realtors do not get excited about listing property – they love to sell it.

Location: We have heard that one forever and it still remains one of the key factors in determining a homes value. For us at the beach, location to the beach and whether it is near a dedicated beach with easy access is a great factor as well. Also important is how many homes in your area are for ssle? How many are foreclosures? What is the general condition of the area? Are there high association fees in your area? If you live in an area with few houses for sale then you have a better chance typically of selling your home so make sure you ask your Realtor about the level of inventory in your neighborhood.
Design, square footage and lot-size are all important to determine your homes value. Generally your Realtor will do a FREE Market analysis that will give you statistics of what the homes are selling for in your area and how long they have been on the market. If she is an active Realtor then she can give you a very good opinion of what your house will sell for but remember an estimate over the phone leaves her lacking vital information. PRICE is important today in that there are certain price categories that garner the greatest number of buyers.
Loan availability and appraisals: Today more than ever it is important that buyers and sellers are aware if a property qualifies for a loan. Consumers are unaware that the type of property may determine whether a buyer can get a loan for that property. It is not safe to assume that if you qualify for a loan that qualifies the property as well. It is vital that you tell your lender what type of home you are considering and in the best case scenario have your Realtor send the mls listing to your lender that you are considering. Condos do NOT typically qualify in the same way a Detached single family home would and lots are an entirely different subject today.

There are many things to consider so please be patient with your Realtor and trust that she or he spends many hours working at her job and wants to provide you with good accurate information. Hey I did not even mention the economy because I figured you had enough to ponder for one week.

Of course I have to share the happy stuff as well because everyone that I talked to this week did not shoot the messenger. I got the sweetest note and flowers from a very kind lady that was grateful for me and that just made my day and made me think. . . I love this job I think I will stay.
Enjoy your week and be sweet to your Realtor!!!!!

Housing Starts Shoot UP 17%

Mortgage rates have eased somewhat this week as weakness in the stock market has translated into higher demand for bonds. Stocks have been hit by a renewed sense of uncertainty as investors wonder if the rally over the last several months has gotten ahead of the economic realities. A stock’s loss is a bond’s gain and the thirty-year fixed mortgage rate now stands at 5.50%. Fifteen year fixed rates are just below 5% at 4.875%. The jumbo market continues to be nearly non-existent with thirty year rates for loans over $417,000 back over 7% with no relief in sight.

More signs the housing market is stabilizing could be found in a report released by the Census Bureau that showed housing starts jumped 17.2% in May to an annualized pace of 532,000 after a revised estimate of 454,000 in April. The data also revealed that new building permits rose by 4% in May. Other news, on the economy as a whole, showed inflation at the wholesale level remains in check with the Producer Price Index rising by a modest .2% last month. Economists had expected a rise of three times that at .6%. Year over year, wholesale prices have fallen by 5% – the largest annual rate of price decline since 1949.

There is a lot of talk in the media about the fact that financing for real estate is so difficult to obtain these days and it is true that underwriting and credit standards have tightened significantly. Yet most of the difficulties lie in the second home, investor and condo markets. For primary residence purchasers buying single family detached homes, however, times could not be better. Low rates are still with us ( yes 5.50% is low) there is an $8,000 first –time buyer tax credit, home prices are their lowest in years and mortgage programs abound. FHA , Rural Development and VA loans are still extremely attractive options with relaxed down payment, credit, and debt ratio requirements and offer repeat and first-time buyers alike an opportunity to take advantage of the amazing deals to be found right now. I would be happy to explain these programs in detail with anyone interested.