Higher Interest Rates Drop Refi Applications

We are beginning to see a bit more volatility with rates as compared to the past several months as the stock market continues to post gains despite continued economic uncertainty. Rates have been held down by the Federal Reserve’s program of buying up mortgage-backed securities and the minutes from their last meeting released last week revealed they are considering purchasing an additional $750 billion for a grand total of $1.5 trillion. This news helped thirty-year mortgage rates remain barely below 5% despite a broad sell-off in the bond market that saw the yield on the ten year Treasury note rise to 3.43% – its highest level in months.

On Tuesday, a dismal housing report showing home prices decline some 19% year over year in the first quarter was outweighed by a report showing consumer confidence jumped by its biggest amount in six years to its highest levels in eight months reigniting the rally in the stock market. On Wednesday, the Mortgage Banker’s Association of America reported that applications dropped 14% last week as the highest interest rates in two months have sharply curtailed refinances.

If the current exuberance in the equity markets continues to put downward pressure on bond prices, we may see the last of sub 5% mortgage rates. Investors are looking for higher returns and seem to believe increasingly of late that the end of the recession will be sooner rather than later. Still, I do not expect mortgage rates to spike dramatically but, rather, slowly rise as risk aversion diminishes in the markets. Look for rates to stay around 5% for the next month or so with increased day to day volatility.

Do You Qualify for a Short Sale?

Okay gang, I know, I know, enough already. . . I have been talking and writing and breathing short sales but this has got to be said. With the number of people jumping on the short sale band wagon many are called but few are chosen, and you have to make sure you are actually qualified we need to set the record straight. Yes property is devalued and yes you are way upside down but are you really a candidate for a short sale?

The biggest point to drive home is that you must have a true hardship to qualify. The bank loaned you the money and if you have assets and you have the economic ability to pay back the loan then you are more than likely not going be accepted for a short sale. It is a very timely process with many people investing time and energy to make it happen so it is important to assure that it is a viable option for you. I think it is a great idea to check with a lawyer an an accountant and discuss your situation. Make sure that you are honest with your Realtor because she really can not help you to the best of her ability without honest, accurate information.

Before you even think that you may want to do a short sale make sure you are prepared to be forthcoming and honest about all of your income and dept. You will need to provide a few years taxes, bank statements, and any other source of income that is available to you. More than likely if you have gotten to this stage there is a real tangible reason for your inability to pay your dept. It is vital that when you write your hardship letter is written by you and not an attorney or other party. MOST important, however, is that these items must be submitted before a SHORT SALE contract can even be looked at as a SHORT SALE possibility. So be working on these things as soon as your Realtor takes your listing.

Many people call me and ask me, “Is that a pre-approved short sale?” Now that is a hard one to swallow because there really is no such thing because a short sale can NOT happen unless the bank and the seller agree to the final terms. In other words, per the addendum the seller needs to be satisfied with the settlement that the lender is proposing for the deal to work. It is really a great big jig-saw puzzle with many pieces that have to fit together so really, until it is over – it is just not over.

I hope that this does not come across as a mean spirited article, that is certainly not the intent. I just want to clear up some misinformation that I hear floating around and I am sure that you have heard it too. Thankfully most of our short sales are working but the fact is, they do not all fly, so the best assurance is to lay it all out on the table, take a deep breath, be patient, be really really sweet to your Realtor and she will be really sweet and patient with the lender and hopefully. . .

Sorry if I am beating a dead horse but it keeps coming back to life.

Episode #7 – Dirt Cheap Like New Home

The Beach Show is your ONLY internet TV show all about Real Estate on Panama City Beach.

Remember, it doesn’t cost anything to work with us if you are a buyer.

Call us at 866-994-1770 to see these properties or for anything else you need regarding real estate in Panama City Beach.

Show Notes

Deal 1 – Splash

List Price: $265,000
Square Feet: 1,074
Price/SqFt: $246.74
2 Bedrooms, 2 Bath
Completed in 2006
Splash is well known for its stellar occupancy rates. The first summer season it was open to the public (I think 2007) I interviewed the GM of the onsite rental manager and he said they averaged 90% occupancy all summer. This is a foreclosure listing and the cheapest in the building (per sf). The condo is in good shape, although it needs some appliances. You’re paying for the amenities and the best rental capability on Panama City Beach.

Deal 2 – Ocean Ritz

List Price: $265,000
Square Feet: 1,322
Price/SqFt: $200.45
3 Bedrooms, 3 Bath
Completed in 2006
Ocean Ritz is a quiet condominium tower with just over 60 condos total. All of the condos are either 3 or 4 bedrooms and location is perfect, right in the middle of Panama City Beach. The square foot is nice and the balcony is huge. The price per square foot on this condo makes this a real steal. Features include custom cabinets, granite countertops, 6″ baseboards and only 3 condos per floor.

Deal 3 – Off Thomas Drive

List Price: 167,900
Square Feet: 1,260
Price/SqFt: 133.25
3 Bedrooms, 2 Bath
Built in 1995
This home is located just off of Thomas Drive on East Panama City Beach. If you are looking for a great starter or rental home, this is the one for you. The current owner has put in new everything down to the kitchen sink; new a/c, fixtures, stainless steel appliances, carpet, and tile. For the price, you just can’t go wrong, especially for something you don’t have to do anything to in order to move in. Of course, the fact that it’s three blocks from the beach and all the surrounding houses look great could help too.

Call us at 866-994-1770 to see these properties or for anything else you need regarding real estate in Panama City Beach.

Sick and Tired of Losing Money?

IT seems that there are a lot of people excited about the market and sometimes buyers want to venture out on their own to purchase property whether it be by auction or a regular sale. There are some rather convincing reasons to use a Realtor to help you wade through fact and fiction and what is really a deal and what is just great marketing. To help you make that decision to use a” Realtor or not” let me give you some good motivation.

A Realtor can help you determine what property would best serve your personal needs whether it be a straight investment or just a home for your family.
A Realtor is more able to negotiate the price of a home on your behalf given that she knows the values of the local market. She also will make sure that you are pre-qualified so you will actually be looking at properties that will work for your unique situation. In addition, often times, a Realtor is better equipped and more experienced in negotiating real estate transactions.
Home buyers almost never pay a commission to the Realtor therefore you get professional guidance and advice and a better deal on your new home with no cost to you. The only time a buyer would pay a Realtor commission is when agreed upon in advance, but in almost every case, the real estate commission is paid by the seller. Keep in mind ESPECIALLY when it comes to auctions YOU DO NOT GET a break by not using your Realtor. Your buyers premium is 10% whether you use a Realtor or not. Make sure you give them a call before you attend an auction and use their wisdom of the market and the property. For example, at the Island Reserve auction last Saturday, there were several examples of a little good timing and some sound advice saved in excess of $20,000.
This is a big one and I have seen the sad results of this one from friends. It is important especially if you are not from the area to have a local Realtor who is familiar with the neighborhood that would best suit your needs as a buyer.

So basically a knowledgeable Realtor can actually save you a dollar or two and besides give them a call because if they are doing it they love what they do and they get so excited to share it with you!!! I actually wrote this because I got a really sweet call from one of our viewers that was not quite sure if it would cost her extra as a buyer for us to help her and I thought I just better clear that up.

We’re not going to beat around the bush here, we’re trying to make a living selling real estate, but we wouldn’t be doing this if it wasn’t what we love. First and foremost, we are relationship people. We are here to help you find what you are looking for. Many times we have turned people away from things and sacrificed commissions because it wasn’t what our buyer was looking for. We are always fair and honest, and if you ever have any questions, you can call us any time. And I mean, you can call us for ANY questions regarding real estate, and you don’t have to feel obligated to work with us. We just want to help you save money and buy your dream.

Thanks so much for watching our little show and for all your kind words….. we love it.

Home Affordability Index Up to 72.5%

Thirty year mortgage rates have been attempting to push through the 5% ceiling over the past few days as continued gains in the stock market have beaten up on bond prices. Jumbo rates remain frustratingly in the 6.875% range stifling any potential recovery in the high-end home sector. Government loan rates for thirty-year mortgages are now all in line with conventional rates hanging right around 5% for the past several weeks for VA, FHA and Rural Development. High-rise condo financing remains extremely difficult to obtain here in Florida though some local banks are offering in-house portfolio ARMs such as my 5/1 and 3/1 to try and help second-home buyers take advantage of the incredible deals out there right now.

We’ve had some more mixed news on the housing front as builder confidence sank to an eight-month low while the NAHB/Wells Fargo Housing Opportunity Index showed an increase in home affordability in the first quarter to 72.5% making it the best time in two decades to buy a home. Housing starts for April fell 12.8% but, upon closer inspection of the numbers, most of that decline was in apartment and condominium construction while single family home starts actually ticked up slightly for the month.

Episode #6 – Hot Deals at an Absolute Auction, Island Reserve

The Beach Show is your ONLY internet TV show all about Real Estate on Panama City Beach.

Call us at 866-994-1770 to see these properties or for anything else you need regarding real estate in Panama City Beach.

Show Notes

Deal 1

List Price: $269,900
Square Feet: 2,172
Price/SqFt: $124.26
3 Bedrooms, 2 Bath
Built in 1991
This home is in superb condition and the landscaping is simply amazing, nearly flawless. There is nothing needed to move in, it’s ready to go. In addition, this IS NOT a short sale and the seller is ready for a quick closing. You just can’t beat the neighborhood, location, house, community, this listing has it all. There have been many upgrades recently, including a Rinnai tankless water heater, oversized shower/bathroom, new roof, pool, big back yard, newer A/C and so much more. The seller is very motivated and ready to move out, make an offer.

Deal 2

List Price: $299,500
Square Feet: 2,150
Price/SqFt: $139.30
3 Bedrooms, 2.5 Bath
Built in 1984
This immaculate home in Bay Point is also move-in ready. Karen says, “bring your toothbrush to the closing table.” If you aren’t familiar with Bay Point, it has long been considered one of the premier neighborhoods in Panama City Beach. At one point, you couldn’t touch a home in here for less than $400k, but this is a sweet deal at $299k. No work is needed, this house has newer applicances and a newer roof sitting right on the Meadow’s Golf Course.

Deal 3

List Price: Nobody knows yet, absolute auction, set your own price!
Square Feet: Ranges from 1,069 to 3,019
Price/SqFt: Mystery!
1 to 3 bed condos, 3 & 4 bed townhomes
Brand new, never been lived in.
This is a rare opportunity to get into a very nice brand new condo or townhome in an awesome resort community for a very great price. 100 condos are selling absolute on Saturday May 16, 2009 at 12 noon onsite and they are sure to bring a great price. Just to give you an idea for what has sold in the past at auction, The Towne of Seahaven, Origin sold on average for around $160/foot in December. Seahaven is across the street from the beach. I can’t speculate here how much these will sell for, but I’d bet they’ll be a screamin deal. If you have any interest in bidding, give us a call and we’ll get you all set up.

Call us at 866-994-1770 to see these properties or for anything else you need regarding real estate in Panama City Beach.

Episode #5 – Wild Heron Bungalow for $142/foot

This week on The Beach Show we have a beautiful 3 bedroom 6th floor condo in Carillon that’s in imaculate condition, a brand new, never-been-lived-in bungalow in Wild Heron for $142/foot and a huge 3300 square foot 4 bedroom home in Bay Point for $75/foot.

The Beach Show – your ONLY internet TV show all about Real Estate on Panama City Beach.

Continue reading “Episode #5 – Wild Heron Bungalow for $142/foot” →

Episode #4 – Wild Heron Condo for $215k

This week on The Beach Show, we have a 2 bed 2 bath condo on the water in Wild Heron for only $215,000, we have a huge, awesome 3 bed 3 bath end unit condo in Tidewater that’s fully furnished for only $459,000, and we have a 2 bed 2 bath fully furnished condo in Sterling Reef for only $185/foot.

The Beach Show, your ONLY internet TV show all about real estate on Panama City Beach

Show Notes

Deal 1

List Price: $215,000
Square Feet: 1,301
Price/SqFt: $165.26
2 Bedrooms, 2 Bath
Built in 2004
This awesome condo in Wild Heron is right on the water with fabulous views from the living area, the patio and the master bedroom. This condo is a split floorplan with a very nice kitchen. The Wild Heron community offers tons of amenities including pools, hot tubs, very great fitness center, business center, kayaks, canoes, and so much more. Not to mention that it is just absolutely gorgeous. This is a rare opportunity to own a waterfront condo in Wild Heron for only $215,000!

Deal 2

List Price: $459,000
Square Feet: 1,670
Price/SqFt: $274.85
3 Bedrooms, 3 Bath with Bunk Area
Completed in 2007
This is a great opportunity to own in one of the nicest condominium developments in Panama City Beach. Tidewater is a well designed, packed with amenities resort and this condo is ready for you to rent. Being sold fully furnished, the sellers have appointed it very nicely and already have $39,000 in rental income on the books for 2009. The amenities include a huge 70 seat movie theater that plays feature films over the summer, two big lagoon pools on either side of the building, a huge fitness center and exclusive “owner’s-lounges” that come with a full kitchen, couches and flat screen tv’s that are only accessible to the owners at Tidewater. You can see the rental page at

Deal 3

List Price: $200,000
Square Feet: 1,076
Price/SqFt: $185.87
2 Bedrooms, 2 Bath
Completed in 2005
This two bedroom two bath gulf-front condo in Sterling Reef comes fully furnished and rental ready for only $200,000. If you are looking for something right in the middle of all the action that’s ready to rent as soon as you close, this is the one for you. This is a short sale listing and we should note that there is a third party short sale negotiator involved that requires a 1.5% buyer fee paid to “The Short Sale Guru”, which, if sold for $200k would only be $3,000, still cheaper than anything else listed in this building.

Pictures

Episode #3 – House in The Glades for $120/foot

This week on The Beach Show we have a cute, darling little 2 bedroom starter home that has been completely remodeled throughout, a beautiful foreclosure home in The Glades for only $120/foot and a huge 6 bedroom 3200 square foot home right across from the beach that’s an awesome deal.

The Beach Show, your ONLY internet TV show all about real estate on Panama City Beach.

http://www.viddler.com/player/6be7e508/

Click here for show notes.

Don’t forget to visit www.TheBeachShow.com for Real Estate Tips with Karen Smith and The Mortgage Minute with Hunter Palmer.

The Beach Show – Our New Real Estate TV Show

Well, folks, here it is. I’ve been talking about doing this for a while, I’ve been tweeting about it for weeks and we’ve finally gotten the kinks worked out. The Beach Show is your ONLY internet TV show all about real estate in Panama City Beach.

Each week we’ll publish a video of the Three Hot Deals of the Week that show you what you need to be buying. These deals will range from $60/foot attached townhomes to $150/foot beach-front cottages to new luxury homes in Wild Heron. All of them are steals and most of them go under contract within a few days of them being featured – no necessarily from our efforts, but because they are hot deals.

The deals on the show will sell whether we feature them on the show or not, but the object is to get them in front of you before someone else buys them. The real estate market may still be in the proverbial toilet, but there are still hot deals out there that disappear faster than you can say 3 Hot Deals of the Week!

http://vimeo.com/moogaloop.swf?clip_id=4170614&server=vimeo.com&show_title=0&show_byline=0&show_portrait=0&color=00ADEF&fullscreen=1

Visit TheBeachShow.com and read the show notes.

Also, in addition to the 3 Hot Deals of the Week, we have two other segments we feature each week from our good friends Karen Smith and Hunter Palmer. Visit TheBeachShow.com to read Real Estate Tips by Karen Smith and The Mortgage Minute from Hunter Palmer.