Mid Florida Real Estate

Time is Flying by!

2011-12-17T09:49:00.002-05:00

Another week gone, can't believe the year is coming to a close. Finished the week strong had 2 deals close for myself and looks like my Realtors have a few that will close before years end. In addition we have a few short sales that are looking to carry over in to January 2012. They are still a "pain" but they are getting better and closing faster depending on the lender and or lenders involved.

ASSOCIATES NEEDED!!!

2011-10-31T09:51:00.000-04:00

Things are picking up! The phone is ringing and leads are coming in daily. I really could use about 10 hard working Realtors to join us in our Lakeland Office. Our virtual office program allows us to pay our people better and to not have to COLLECT ANY FEES for the priveledge of being with our office. We provide E&O Insurance, all signage, Institutional Advertising & Full brokerage support at no cost to you! With no monthly overhead this allows you to focus on what you do best selling Real Estate. Since we do not collect fees it is to no advantage for us to flood the brokerage with 100+ agents to bolster our bottom line but to hire just enough agents so as to spread around the incoming leads to a smaller group so everyone makes money! We believe it is better to be a big fish in a little pond vs. a small fish in a big pond. Making money selling Real Estate is what we do! Call me today for your confidential interview Richard Castret (Broker) cell phone 863-640-3127. You will be glad you did.

What do we do now?

2011-10-26T12:42:00.000-04:00

Our phone is ringing once again. No call is the same as the last. I find that the majority of the public are totally confused as to where they stand in the Real Estate Arena today. When I started my career 10 years ago in Lakeland (2001) the market was nothing to get excited about but I was able to dig in and found some inovative ways to market and move Real Estate. I had no circle of influence in the community and had to build my clientelle list from scratch. I was able to accomplish that and have many repeat customers and referals and have been able to weather out this down market which quite frankly makes 2001 look like a bonanza time. Through that time I learned a lot and now am able to mentor my associates and give good solid advice to them as well as their and my customers. I spend a lot of time on the phone with customers listening to their concerns and more often than not can devise a plan that works for them. I can answer the question "What do we do now?"

Investment Opportunities Abound!

2011-10-10T14:01:00.000-04:00

STOCK MARKET FALLS! Seems to be the headline of the day on far to many days. It used to be a great place to make a decent return but not so much these days. If you are sitting on some capital and would like to start making some bucks again you really might want to consider Real Estate. I am not kidding. The Real Estate headlines appear dismal but not really. The fact that Real Estate prices are down and the fact that most people are upside down in the homes they have has created a Mecca for a savvy investor. Never has there been a better time than now to buy Real Estate. We have developed a great program and retrained our associates to identify the real deals. Our people will help you acquire properties of value, advise in the developement of your property portfolio, acquire qualified tenants for your properties and manage the property from start to finish. All you need do is cash your monthly Rent checks and watch your Investment grow. Two to five years out you should be able to resell your properties at an increased value if you so desire. Call us today and let us explain how this works for you!

SHORT SALE NEWS!

2011-10-07T14:12:00.000-04:00

This article just came accross my desk and I feel it is worth sharing. It appears that the Banks are finnally coming to grips with the reality of today's Real Estate market. With that in mind I am going to share it with you:

Bank of America: $20,000 short sale incentive to struggling homeowners
CHARLOTTE, N.C. – Oct. 7, 2011 – Bank of America, the nation’s largest mortgage servicer, is offering Florida homeowners up to $20,000 to short sale their homes rather than letting them linger in foreclosure.

The limited time offer has received little promotion from the Charlotte, N.C.-based bank, which sent emails to select Florida Realtors earlier this week outlining basic details of the plan.

Only homeowners whose short sales are submitted for approval to Bank of America before Nov. 30 will qualify. The homes must have no offers on them already and the closing must occur before Aug. 31, 2012.

A short sale is when a bank agrees to accept a lower sales price on a home than what the borrower owes on the loan.

Realtors said the Bank of America plan, which has a minimum payout amount of $5,000, is a genuine incentive to struggling homeowners who may otherwise fall into Florida’s foreclosure abyss.

The current timeline to foreclosure in Florida is an average of 676 days – nearly two years – according to real estate analysis company RealtyTrac. The national average foreclosure timeline is 318 days.

“I think this is a positive sign that the bank is being creative to try and help homeowners and get things moving,” said Paul Baltrun, who works with real estate and mortgages at the Law Office of Paul A. Krasker in West Palm Beach. “With real estate attorneys handling these cases, you’re talking two, three, four years before there’s going to be a resolution in a foreclosure.”

Guy Cecala, chief executive officer and publisher of Inside Mortgage Finance, called the short sale payout a “bribe.”

“You can call it a relocation fee, but it’s basically a bribe to make sure the borrower leaves the house in good condition and in an orderly fashion,” Cecala said. “It makes good business sense considering you may have to put $20,000 into a foreclosed home to fix it up.”

Homeowners, especially ones who feel cheated by the bank, have been known to steal appliances and other fixtures, or damage the home.

“This might be the banks finally waking up that they can have someone in there with an incentive not to damage the property,” said Realtor Shannon Brink, with Re/Max Prestige Realty in West Palm Beach. “Isn’t it better to have someone taking care of the pool and keeping the air conditioner on?”

A spokesman for Bank of America said the program is being tested in Florida, and if successful, could be expanded to other states.

Wells Fargo and J.P. Morgan Chase have similar short sale programs, sometimes called “cash for keys.”

Wells Fargo spokesman Jason Menke said his company offers up to $20,000 on eligible short sales that are left in “broom swept” condition. Although the program is not advertised, deals are mostly made on homes in states with lengthy foreclosure timelines, he said.

And caveats exist. The Wells Fargo short sale incentive is only good on first lien loans that it owns, which is about 20 percent of its total portfolio.

Bank of America’s plan excludes Ginnie Mae, Federal Housing Administration and VA loans.

Similar to the federal Home Affordable Foreclosure Alternatives program, or HAFA, which offers $3,000 in relocation assistance, the Bank of America program may also waive a homeowner’s deficiency judgment at closing.

A deficiency judgment in a short sale is basically the difference between what the house sells for and what is still owed on the loan.

HAFA, which began in April 2010, has seen limited success with just 15,531 short sales completed nationwide through August.

But Realtors said cash for keys programs can work.

Joe Kendall, a broker associate at Sandals Realty in Fort Myers, said he recently closed on a short sale where the seller got $25,000 from Chase.

“They realize people are struggling and this is another way to get the homes off the books,” he said.

© 2011 The Palm Beach Post (West Palm Beach, Fla.), Kimberly Miller. Distributed by MCT Information Services

Commercial Networking Lakeland Area

2011-10-06T13:42:00.002-04:00

Just got back to the office after the CID Luncheon. Those of you that are fellow Realtors may ask what is CID? CID is an abbreviation for the Commercial Investment Division of Lakeland Association of Realtors. This organization was formed by LAR several years ago as a unique opportunity for the areas Commercial Realtors to network and share the Commercial Properties and opportunities. Our monthly luncheon meeting is normally held at Cleveland Heights Clubhouse and we normally have a guest speaker today it was a representative of Swift Mud discussing amongst some other topics flood plain map changes. This is open to all LAR members and I urge you to try and attend. Also the food is fantastic!

Real Estate is Selling Again!

2011-10-05T12:18:00.000-04:00

I am proud to announce that I am seeing a marked inprovement in Sales and a leveling off of price declines and in some areas even some recovery in pricing. It has not been easy. We have lost a lot of Realtors from the business in the last couple of years however those that are still here will now reap the benefit of hanging in there. I have some associates that are actually making pretty decent money by taking some of our tried and true programs and signing on new listings and getting their phones to ring. For every house you list if properly handled you should pick up half a dozen or so viable buyers. After doing this for over 10 years I know what it takes to get this going again. We are actively recruiting new associates. Our group is not for those who wish to hang back and wait for the phone to ring but for those who are willing to implement the tools we provide at no charge to make you successful. If you are already successful then keep in mind that our commission structure is one of the best in the market with absolutely no Brokerage fees or costs! We provide just about everything you need to get started with our firm! Call today for more information we will keep your inquiry stricktly confidential! 863-640-3127

Branching Out

2011-05-26T09:09:00.000-04:00

After riding out the down market in our Lakeland office over the last couple of years I am now optimistic that once again it is time to increase our presense throughout the state. Our business model is simple, providing top not service to our customers while preserving the earning potential of our Associates. A lot of your Brokerages have gone to making money directly from their associates by charging them desk fees and selling them education. These firms really don't care if they sell any Real Estate or not they are making a tidy profit at the expense of their associates. Our firm is old school we make our money from the sale of Real Estate plain and simple. Our people pay no fees to be attached to us and we all make money from the sale of Real Estate. I offer very lucrative Commission schedules with no deductions. We provide signage, E&O Insurance, forms software as well as full Brokerage support. Over the next few months I will be recruiting Licensed proffessionals throughout the State. Our concept includes hiring just enough agents (in most cases 6 to 10) for any given City/Area to Service the market. This assures that there is plenty of business for everyone so that everyone makes money! Right now I am looking for primary agents to act as team leaders in almost every area throughout the state. All inquiries will be kept confidential and can be sent to my e-mail RCastret@advantagerecinc.com

April 2011-Update:

2011-04-19T10:57:00.000-04:00

I have been remiss in posting to my blog in the last couple weeks. My excuse is that I have been very busy. Both Commercial & Residential Business is picking up. Buyers are gaining confidence that the market has indeed bottomed out and appreciation will once again be possible. I have put several properties under contract this month and all are expected to close pretty quickly. Most involve "Cash" buyers and we can get them closed in 1 weeks time in most cases. I am now very optimistic that we have made the turn and prosperity in the Real Estate Market will soon follow! Also let me know if you actually read this thing (Blog) :)

Commercial Insight

2011-03-17T12:39:00.000-04:00

Recently we have acquired several CREO's (Commercial Real Estate Owned) this term simply stated is Commercial Real Estate that is owned by a bank and has been foreclosed on and is now once again for sale. Currently we are dealing with 3 or 4 banks and look for that number to increase over the next several months.
Since this type of property is becoming a big part of our business we are adapting to accomodate.
Actually once a property reaches this stage of the game it can be bought at a reasonable price and decisions by the Bank are usually made quickly since they have title to the properties and are anxious to move them. Don't expect to steal the property however in most cases they are priced to sell at the posted price.
This is not something you want to go it alone you will need a trained proffessional in your corner.

Market News

2011-02-23T08:37:00.000-05:00

I have noticed a gradual change in the market in the past several weeks. Our phone traffic has picked up but the rental requests far outweigh the buyer requests. All our rental properties are occupied and we are turning away renters on a daily basis. Lenders are requiring higher down payments from buyers and the fees on government backed loans have increased. In effect this has taken many prospective buyers out of the market and made renting a more viable option for them. Investors should take heed of this. A great opportunity exists today to purchase properties at great prices and rent them out making a tidy profit until the property values recover a few years out. Most investors don’t want the headaches of being a landlord but we not only can help acquire the properties but we will manage it for them as well.

What are Interest Rates Doing?

2011-02-14T11:32:00.000-05:00

The average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991. Rates are following the yields on the 10-year Treasury note, which are spiking on fears of higher inflation. Investors have been demanding higher Treasury yields since the Federal Reserve began its $600 billion bond-buying program to boost the economy. However rates are still extremely low by historical standards. Home prices remain depressed and even with a slight uptick in Interest Rates there are many values to be had. Rates are probably going to continue to rise so if you are thinking of purchasing you should get going!

We Are Moving in Right Direction

2011-02-08T09:48:00.000-05:00

Our area seems to be recovering faster than other areas in the nation. Pending home sales in the South jumped 11.5 percent to an index of 101.9 and are 1.7 percent above December 2009. In the West however, the index fell 13.2 percent to 105.8 and is 10.7 percent below a year ago. (Pending Home Sales are homes that there are contracts on and are expected to close in the next couple of months.) Florida and especially Central Florida is going to be on the forefront of this recovery. A real concerted effort to create new jobs and restore old jobs is underway. We are moving to reeducate our work force with new skills that are going to enhance their technical knowledge and in turn create higher paying jobs. The one draw that remains constant is our climate and now we are going to combine that with opportunity. The fix is on!

A Look Ahead

2011-01-18T15:39:00.002-05:00

A steady decline in layoffs is giving the vast majority of adult Americans who have jobs the confidence to spend more freely and help energize the economy. They no longer worry so much about losing their jobs. Their renewed confidence has boosted retail sales – just what’s needed to spark what economists call a “virtuous cycle”: Higher consumer spending raises company profits, which spurs hiring, which fuels more spending and growth. We are seeing the effect from this on my Commercial Side (Real Estate). Buildings that have set empty for some time are now being looked at by potential Commercial clients who are either looking to expand or are actually starting new enterprises. All of this is good news. New business means new jobs and that equates out to new potential home buyers entering the home market. Not to despair it is getting better!

Buyer's Need to get Busy!!!!

2010-12-14T08:56:00.002-05:00

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!

2010-12-07T09:45:00.000-05:00

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

2010-11-29T09:01:00.002-05:00

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!

2010-11-29T08:37:00.000-05:00

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!

2010-11-17T08:06:00.002-05:00

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

2010-11-03T13:47:00.000-04:00

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!

2010-10-19T15:15:00.002-04:00

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?

2010-10-06T15:28:00.002-04:00

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

2010-09-21T11:14:00.002-04:00

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!!!

2010-08-24T09:46:00.002-04:00

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

2010-08-09T15:22:00.000-04:00

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?

2010-07-28T13:30:00.001-04:00

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?

2010-07-16T12:30:00.000-04:00

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!

2010-06-14T10:52:00.002-04:00

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!

2010-05-19T12:54:00.000-04:00

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?

2010-05-04T09:01:00.000-04:00

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!

2010-03-26T14:31:00.002-04:00

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!

2010-03-18T09:27:00.000-04:00

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

2010-03-01T08:56:00.000-05:00

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

2010-01-25T08:51:00.000-05:00

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!

2010-01-10T15:37:00.000-05:00

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?

Good News Dominates!

2009-12-02T09:36:00.000-05:00

I have to say it has been very refreshing as of late to read and hear all the positive factors affecting the Real Estate Market. Sales in Florida are once again on the positive and in some areas even setting records. The only negative that we are hearing is that the prices have eroded significantly. My answer to that is sure they have but what did you expect? The 2005 bubble (and it was a bubble) had to burst sometime and it sure did that. In the Polk County area it is my feeling that the market has bottomed out and we will once again return to some normalcy. When I first started selling Real Estate in the area in 2001 (it was a down market at that time too) we could still expect to see an average appreciation rate of 6%. It is my opinion that we will return to that (or better) in a very short period of time. As a member of Commercial Investment Division (CID) of Lakeland Association of Realtors I am fortunate to be in the loop as to the upcoming job creating projects that are forthcoming to Polk County. There were many projects put on hold as a result of the current economy but it appears that they will once again emerge in 2010. The key now is job creation and Polk County is right on the forefront of this development. Positive News don’t you just love it?

New Home for the Holidays?

2009-11-16T16:20:00.000-05:00

As the Holidays fast approach us the furthest thing from most people’s minds is buying a new home. With Thanksgiving just days away our thoughts turn to family & friends. However you might want to think about this. I have been asked a lot lately about home prices and where the market is at and what do I suggest.
My thinking is that we have bottomed out on pricing in the Lakeland Area and that after the 1st of the year we could easily see an increase in prices. With this thought in mind coupled with the extension of not only the 1st time home buyers tax credit ($8000) but the addition of another tax credit for people who are not 1st timers ($6500) is there really a reason to wait? If you made an offer on a property before year end and closed shortly thereafter you could take the tax advantage easily on your 2009 Tax Return. If you are remotely considering a new home you might want to give it some serious thought.

Home Buyer Fedreal Tax Credit

2009-11-02T15:00:00.000-05:00

*The extension and expansion of the homebuyer tax credit is the pending business in the Senate. After a long week of negotiation on the credit, an agreement on the scope of both expansion and extension has been reached. The extension is part of a larger bill that has not yet gone to a vote, however. A Senate vote on the underlying bill will occur in the Senate during the week of November 1. The package will then go back to the House. The House is expected to accept the Senate amendments, vote on the package and send it to the President for signature. The underlying bill is an extension of unemployment benefits. Other provisions in the bill include expansion of the net operating loss carryback rules, new requirements for some tax return preparers and noncontroversial provisions that "pay for" these changes. The agreement on the extension and expansion of the credit is as follows:
Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
Credit remains at $8000 for first-time purchasers. No change to definition of first-time purchaser.
New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. Repeat buyers must have lived in their homes consecutively for 5 of the previous 8 years.
Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. Current law $20,000 phase-out retained.
New anti-fraud limitations are imposed.
The White House has indicated that President Obama will sign the legislation.
*Source NAR Washington Report

As you can see the legislation still feels that a Tax Credit will be beneficial to the ultimate recovery of the Real Estate Market. The fact that it has now opened up the qualification to other than 1st timers will most likely generate additional sales. Income limits are generous and who couldn't use $6500 ??

Real Estate Recovery,Slow but sure!

2009-10-22T09:36:00.000-04:00

All signs are now pointing to a Recovery in the Real Estate Market. Traffic in our Office is greatly increased over the last Month. Multiple Closings and scheduled closings for the Month of October have been above average. I look for November to be strong as well. No doubt the 1st time home buyer tax credit has helped somewhat but I am seeing improvement in all buyer segments. People who are looking to upgrade are taking advantage of the reduced pricing of most homes and Investors are scooping up the remaining bargains.
Now is the time to help bolster the recovery. If you are thinking of selling your current home you need to solicit professional advice as to proper pricing. With all the publicity as of late one would think they will have to give away their property to get it sold. This is not necessarly true. If your property is in above average condition and well maintained you should be able to sell it at above market pricing as compared to distressed properties that are not. By pricing your property slightly above the current day market you will help to bring pricing levels back to some reasonable levels. Let's not forget that a home is worth what someone is willing to pay for it. This will require a bit of patience but will not go unrewarded.
I have been watching the legislation in regards to the $8,000 Federal Tax Credit. All signs are pointing to a possible extension and quite honestly I have mixed feelings on the issue. I compare this to the "cash for clunkers" program that was designed to help the automotive industry. It was a short lived event that did help on the short term but in my opinion did nothing to shore up the industry in the long haul. Agreeably the Real Estate First Time Home Buyers Credit was much better structured to effect the long term. It helped to maintain jobs (temporarly) in the building and supply trades minimizing the impact there, but most importantly it enabled some people that may have not become a home owner realize the "American Dream" to own their own home. Since most mortgages are on a 30 year basis this can help in the long run. I do however have some concerns about some lending practices (USDA) that promote no down payment loans that even roll closing costs back in to the loan amount. My fear is that if someone has little or none of their personal funds invested when things get tough are they more apt to just walk away from the obligation? Time will tell on that note. After all isn't that type loan a small part of what got us in to this in the 1st place? I sure hope my concerns are not warranted! Stay tuned as new developments unfold I will keep you updated...............

Time Is Short!!!

2009-10-08T11:02:00.000-04:00

Those of you who are 1st time home buyers looking to take advantage of the $8000 tax credit just barely have enough time to make an offer on a property and get it to close on or before the November 30th deadline. What most people don’t realize that it is taking longer to get funding approved through a lender in this current market. We used to schedule closing dates 30 days out from contract acceptance but now the best case is usually 45 days and that is for loans that are pretty “clean” or problem free.
For the rest of you (not 1st timers) out there however this is still very much a buyer’s market. Almost record low interest rates coupled with abundant inventory at rock bottom pricing, well it doesn’t get much better than this.

2009-09-23T08:25:00.000-04:00

What is our home worth? Can I sell it anytime soon? These are 2 questions that many of us may be asking ourselves.
The old adage still applies even in today’s market. “A home is worth what someone is willing to pay for it.” The problem is with the recent decline in market value over the last 2 years the buyers are very cautious not to pay more than what the home is worth. They do not want to over pay like several people did back in 2004/2005. Evaluation is the key. Choosing the “right” professional to assist you is very important. Yes you can sell your home with the proper advise. Our Company will provide to you at no charge or obligation what is known as a CMA (comparative market analysis) This a full color brochure that is laid out with current market data and side by side comparisons based on the very latest data. It is very difficult to go it alone without Realtor assistance in this market. Agreeably there are Web Portals out there that claim to evaluate your home but quite frankly they are flawed. They are normally created by someone who has little or no knowledge of your neighborhood.....beware

2009-09-03T16:40:00.000-04:00

The Lobbyists for NAR (National Association of Realtors) are working diligently in Washington trying to negotiate an extension to the current November 30th expiration date for the $8000 tax credit for 1st time home buyers. A first time Home buyer is defined as someone that has not owned a home for the last 3 years. Not only are they trying to extend the date but they are trying to make it available to all buyers not just 1st timers. There is also an attempt to have the amount increased to $15,000 but there is a great resistance to that. My advise is don’t count on the extension and most definitely not the increased amount. Time is running out with credit being tight and closing dates being pushed out you would need to commit to purchase early this month to be insured to close by November 30th. I have been very busy as of late and have been somewhat remis in updating this blog. Not to worry I fully intend to do a better job about keeping my followers advised of any new developments in Real Estate. Expect to see new postings every couple of weeks