Buyer's Need to get Busy!!!!

Homeowners who delayed locking in super-low mortgage rates (think close to 4 percent for a 30-year fixed mortgage) may have waited too long. Rates are creeping back up, in part because of the tax-cut deal in Washington. Now those in the market to buy or refinance have to decide whether to take what’s available or wait and run the risk that rates will keep on rising. There is no doubt in my mind that rates will continue an upward trend ever it be slowly. No need to panic there is still time but the time to move is now. With the decreased property values considered the interest rates are still very attractive and payments are still very affordable on the home of your dreams.

Postive News!

As of December 3rd 2010, Factories are busier, construction spending is up, and auto sales are rising. And on Wednesday (December 1st) the stock market had its best day since September after a report that the private sector hired the most workers in three years.
The Dow Jones industrial average jumped more than 2 percent, enough to erase nearly two weeks of losses. Analysts said investors concluded that a stronger job market would support higher stock prices.
These facts are supportive of recovery underway. I also read this morning that the Luxury Home Sales Market is thawing out. There are lots of bargains to be had. People with money are starting to spend it. If you are a high end home owner who has withdrawn from the market you may want to consider reentry.

Looking Ahead to 2011

I recently handled a transaction in Fort Myers that I think is very interesting. I had a client with a limited budget that needed to purchase a home for herself. We spent several weeks (4) sorting through the myriad of short sales & Foreclosures and ended up making an offer on a 3/2 1400 sq. ft. Short Sale. What was interesting that while we were waiting to close on the short sale (nearly 2 months) I watched the Lee County market change drastically. What was once an abundant short sale & foreclosure market dried up and supply became minimal. Investors & First Time Buyers were gobbling up property like pop corn. Now I am watching property values there recovering. Lee County started the trend in Florida and I look for it to start spreading as the market is showing signs of recovery on pre-owned homes. In Polk County the signs are there for a marked recovery in 2011. I plan to monitor this progress. Since I now write these articles on a weekly basis I am now posting them regularly on my blog at AdvantageRECInc.com. Feel free to sign in as a follower and I would welcome your thoughts and comments. Also the articles appear ahead of publication in the Ledger.

Polk County Expected to Grow!

I hope you all enjoyed our Thanksgiving Holiday. I thought you might want to have some positive news to help you digest all that turkey! I just came away from our monthly company meeting with an air of optimism. In our meeting it was discussed about the large number of job creation projects that are upcoming for the year 2011. Mosaic’s recent announcement of their resort in the south side of Polk County (already under construction), USF Poly Tech moving ahead with their development as well as some other major projects in the planning stages that soon will be announced to the public. The key to growth is job creation and that really seems to be the direction that Polk County is going. In the last 2 weeks I have seen renewed interest in Commercial Sites that have languished on the market for the last 2 years! It appears that the pent up demand (at least on the commercial side) is being released and that is great news. I for one am looking forward to 2011! This Commercial growth will in turn feed the residential growth as well.

A New Home for the Holidays!

Would you like to treat yourself to a new home for Christmas? I have noticed that phone traffic has slowed down a bit. Most people I talk to are winding down focusing on the upcoming Thanksgiving Holiday and looking beyond toward the rest of the Holiday Season. One of my luxury home listing clients even withdrew their listing until after the first of the year. This probably wasn’t a great idea. The fact is the holiday season is a great time to sell your home. There is an abundance of out of state and even out of country buyers who want to spend the holidays in Florida. Once they enjoy our sunny skies and warm temperatures they think strongly about relocating here or at least having a vacation home here. I know it is inconvenient to schedule showings during the Holidays but isn’t selling your home the goal? If you are on the buying side there are some fantastic deals to be had!

Take Advantage of Investment Opportunity

There has been a great deal of concern among Real Estate Investors about properties that were acquired back in 2004 to 2006 and the fact that the values have diminished significantly since they were acquired. In some cases the Rental Rates have declined as well and they are not able to get enough Rent from them to make the payments on the properties. There are some that are considering strategic default but there are others that are taking a much wiser approach. It is not unlike investing in the stock market. If stock prices decline you can either sell your stock and take a loss or you can buy more of the same stock at the reduced rate and blend your losses. Things will not stay bad forever. The same goes for Real Estate. There are many excellent buys in today’s market that you can make a great deal of profit renting them at current market prices and help you “blend” your losses on the properties you already own. It is definitely something to consider. Riding this market out takes guts but rest assured it will recover. Riding it out will have it's rewards.

Take Advantage of the Situation!

As I am sure you are all aware, if you read the newspaper many Banks have withdrawn their foreclosed properties from the market. This is the end result of the potential procedural errors that may have occurred during the foreclosure process. This will be a short lived moratorium so if you planning on selling your current home you might want to put it on the market ASAP. The Banks distressed properties have drug the market values down and having them out of the way even temporarily could benefit sellers. Without the low priced competition you might actually be able to get a fair price when you sell.

What is Title Insurance?

What is Title Insurance and how important is it? Title insurance protects homeowners against financial loss from defects in the title, liens on the title, or if the title is not what it is represented to be. Most banks will not approve loans without title insurance. This is very important protection.
A recent development where a major provider of this insurance has declined to cover certain Banks foreclosed properties due to procedural errors during the foreclosure process is cause for concern but not panic. At this time it will only affect certain bank owned properties from the institutions involved. Make sure if you are buying a bank owned property that your Real Estate professional is staying on top of the situation and can identify if the property you are purchasing is affected. A problem of this sort can delay a closing indefinitely.

Shadow Inventory

A few weeks back I wrote an article on “Shadow Inventory” which in part consists of Foreclosed homes that Banks own (REO’s) that have been held back from sale for one reason or another. Most of the time it is because the bank involved has been overwhelmed with 100’s and in some cases thousands of these properties. The Banks are finally adjusting to this situation and have increased staff and become more proficient in dealing with these properties. Not only have they streamlined their policies for dealing with “short sales” they have also gotten better in negotiating with people who have fallen behind in their mortgage payments. Short sales in a lot of cases are answered in 45 days or less instead of several months if ever. Not all institutions are up to speed but a lot are. The fear that all these properties would be dumped on the market all at once further reducing property values is subsiding. Another piece of positive news for the Real Estate Market.

We Need Homes to Sell!!!

I am happy to say my Company is having a unique problem. We are running out of homes in our Inventory to sell. Usually this time of year we experience a lull in sales due to people getting their children back in school and focusing on that. Contrary to years past that isn’t the case this year. The showings have picked up and the few Residential Listings we have left should be under contract within the next few days. We have active buyers in the $130,000 to $295,000 range and we could use more homes in that range for sure.
Trim notices from the county have been mailed out and I received several phone calls from people who were concerned that their property values had plummeted as indicated by the assessed value. I advised them not to panic. It’s great that indicated values are reduced and you will be paying less in taxes than last year. You should understand that the value the county has indicated is not necessarily what your home would bring on the open market. A true value can be determined by A Real Estate Professional by performing a Comparative Market Analysis dealing with your home specifically.

Impact Fees Polk County Florida

Effective August 01, 2010 Polk County Commissioners in an effort to spur construction and create jobs enacted a moratorium on Impact Fees. This effort will greatly decrease the cost factor on new construction in the county. To read up on this in depth follow directions below:
The information is located on web page www.polk-county.net – on the home page look for Most Popular – there will be two columns, click in column one Building/Construction when that page comes up there is a column on the left, select item Impact Fee Rate Schedule
This will give you the impact fees for residential and non residential, and the Ordinance explaining the moratorium.
What many don’t realize that is that your Realtor can assist you the process of working with the many fine builders that work in Polk County. Much like buying a pre-owned home there is no cost to you the buyer for their services. When you work with a Realtor they will share with you their knowledge and experience and can help you select the builder that best suits your needs and requirements. This way you’re not limited to any one builder. I might also add that there are many find building sites available for purchase. We have several vacant land sites in our inventory.

Predicting Real Estate Values?

I picked up the Newspaper this AM and read an article on declining values being predicted for the next year, ouch! You really need to read these things closely and if you do you will see that this prediction is for certain Metropolitan Areas of which the only one mentioned in Florida was Miami. It amazes me that the media still feels the need to headline and focus on the negatives. We really need to headline the positives and when it comes to Real Estate you need to be directed to your local area and focus on that. It is still my personal opinion that in Lakeland and surrounding communities we have seen the bottom and values will tend to increase over time. Let’s don’t be scared and confused just call 1-888-Ask Advantage (not a real phone #) and deal with the professionals that can steer you through.

Recovery, Whats it going to take?

Now that the Federal Tax breaks are history we are still seeing a fair to moderate uptick in home sales. This is being fueled by extraordinarily low Interest Rates and bottomed out home pricing.
The Commercial side of things however is “stagnate”. Small business can’t expand because they can’t get lending and if they don’t expand and can’t grow jobs will not be created. Federal stimulus funds are available but lenders are staying away from writing these programs and in my mind they are the problem as much now as when they helped create this situation we find ourselves in. Jobs are the answer! Small business has always been the backbone of our economy. Write your politicians and make your voice heard! If you are secure in your job you can also help by taking advantage of this tremendous opportunity to invest in Real Estate. There is no doubt that in time it will right itself and you will be ahead in the game.

SUMMER SEASON IS HERE!

I can’t believe it is Summer time already! The Memorial Day Holiday is past us and our children have started their summer break. Time is sure flying by. With that being said it is the time for both Buyers & Sellers to enter the market during the school breaks. If you are buying it will take time to locate that perfect property and get it closed before you are once again back in school. You really don’t have time to procrastinate. Most closings after accepted offers are taking 45 to 90 days to close in most cases. Sellers you need to get your property out there for these transitional buyers to view for the same reason, time is short. At the time I wrote this article 30 year fixed Mortgage Rates were 4.78% (average) and this too isn’t going to last.

LICENCED REALTORS ALERT!

It amazes me the number of Licensed Realtors out there that still pay for the priviledge of being with their Broker. What do they really offer you for that desk fee?
It is plain and simple that joining forces with us makes great economical sense for anyone that is experienced and can actually sell Real Estate. NO FEES PERIOD! As a firm I pick up your E&O Insurance, forms software package, Company promotional materials,custom spread sheets, provide signage, provide some advertising both printed and Internet, and one on one broker support. To the most part we work on the virtual office concept which means no floor time. You work out of the comfort of your own home.
As far as commission goes we pay 75% of 100% no added fees or transaction fees. After you gross $60,000 your rate increase to 80% renewed annually. We are in business to sell Real Estate and thats how we make our $$$'s. We are not in the business of making money off the backs of our people in the form of desk fees or charging them for education!
IF YOU ARE TIRED OF YOUR CURRENT ARRANGEMENT CALL ME TODAY FOR A CONFIDENTIAL INTERVIEW, MY CELL PHONE #863-640-3127 THIS IS OPEN TO ANY AGENTS THROUGHOUT ALL OF CENTRAL FLORIDA!

No Down Payment?

There is still one program up and running that allows for just that. (USDA) Single-Family Housing Guaranteed Loan Program, is one of only a few remaining residential finance options that do not require a down payment. However it is quickly running low on funding and could be depleted shortly.

Rep. Shelley Moore Capito (R-W.Va.) and Rep. Paul Kanjorski (D-Pa.) have filed separate bills that would generate new funding for the mortgage program. This will be accomplished by increasing the fee structure charged to buyers to keep the program alive.

The lawmakers hope to move the measures through committee and to the House floor quickly, since the busy spring selling season for real estate is already underway. While some experts see nothing-down financing initiatives as risky, the USDA reported a foreclosure rate of 1.72 percent last fiscal year compared to the FHA’s 3.32 percent. FHA requires at least a 3.5% down payment.

I feel the USDA program is critical for many low and middle income borrowers who purchase modest properties in the rural areas, as well as for first-time homebuyers. Keep in mind that by rural areas the home can still be in a sub-division in a qualifying area. Your Realtor should be knowledgeable of which homes qualify.

TIME IS RUNNING OUT1 THE CLOCK IS TICKING!

As the spring real estate season kicks in and the tax-credit deadline for sale agreements approaches, the government is ending a program that has kept interest rates low and housing-affordability levels high for months.

On March 31, the Federal Reserve will stop buying mortgage-backed securities from Fannie Mae and Freddie Mac, returning control of interest rates to private investors. For months, industry observers have predicted that once government supports are removed, interest rates will rise quickly, pushing many of the first-time buyers critical to housing’s recovery out of the market.

In late summer and fall 2009, lured by fixed 30-year mortgage rates under 5 percent and the first $8,000 tax credit, which expired Nov. 30, first-timers pushed sales of previously owned homes to the highest levels in at least three years, reducing record inventories and braking price declines. That tax credit was renewed Nov. 5 and expanded to buyers who had not purchased a property in five years, although the credit for repeat buyers is $6,500. The second credit expires April 30, is unlikely to be renewed. If you are a buyer you need to get going or you will miss the boat!

Just Marching Along!

The Real Estate Sales continue to improve throughout the Month of March. We have experienced several closings and put many properties under contract. The problem that our Company is now experiencing is we are running out of Residential Listings to promote. Obviously we can continue to sell other Realtor’s Listed Properties but we really could use some of our own to promote. This is a great time if you are thinking of selling to consult with one of our expert Realtors, prices have stabilized and you might be surprised as to the value of your home. After all it is a free service that we offer and with no obligation!

Positive News for Floridians

A plan to channel $1.5 billion to housing agencies in five states hit hardest by the real estate crash has Florida officials hopeful they can keep more people in their homes and out of foreclosure.
President Obama announced the program Friday while in Nevada for a town hall meeting and campaign push for Senate Majority Leader Harry Reid. The states included in the new program are Nevada, California, Arizona, Florida and Michigan, all of which consistently rank high on mortgage related issues.
But with more than 20 percent of its home loans seriously delinquent or in foreclosure, Florida tops the nation for defaults, according to a Mortgage Bankers Association report also released Friday. What this truly means is that the government is making serious strides to stem the foreclosures. This has to happen or property values hit hard are not going to improve. However once we do get this situation in check I look for values to rebound rather rapidly. Buyers should get busy.

Interest Rates Decline for 3rd Straight Week

As of January 22nd Interest Rates again have declined to 4.99% for a 30 year fixed rate mortgage. This is an end result of the Fed pumping funds (1.25 Trillion) in to mortgage backed securities. This is not going to last forever so if you are thinking of buying you had better get with it and lock in a rate with your lender.

FHA lending however is going to be tougher to come by. In an effort to recover funds the FHA will be tightening guide lines for lending. MIP (Mortgage Insurance premium) will be increased to 2.25%. Minimum FICO score to qualify set at 580 with most lenders setting the bar even higher. They will also limit the “seller contribution” to no more than 3% of the purchase price vs. the 6% allowed currently. These changes are set to go in effect as early as this summer.

The window of opportunity is here now. Let’s not forget the Federal Tax breaks that are still available ($8,000 & $6500) with any contracts signed up to April 30th and closing no later than the end of June. I cannot further stress that time is of essence in today’s market.

New Year........New Opportunities!

The Holidays are now past and it’s time to get back to business. 2010 I believe will be a major turning point in Real Estate. There probably will never again be the opportunities that avail themselves to us as there are now. There still will be plenty of unsold homes at bargain prices, Lowest Interest Rates ever, and new Federal Tax breaks that will go through April (contracts) needed to be closed by end of June. This scenario is not likely to repeat itself in the future. Those who procrastinate will most likely miss out. Our staff is geared up and ready to go how about you?