A Buyer's Market? Maybe Not if You're Thinking Cheap!

WASHINGTON – April 27, 2011 – With falling home prices and higher inventories, most of the public views real estate as a “buyer’s market,” in which buyers hold more of the control and sellers will accept lower offers just to sell.

Not so fast, say buyers and sellers. More buyers are finding the sellers in the driver’s seat.

Buyer Young Hammack gave up looking for homes for a while after being outbid on three properties in California. “It’s a false buyer’s market,” Hammack says. “If you think prices are cheap, wait until you start putting offers in.”

Many sellers may be unable or unwilling to lower their home prices – mostly because they may be underwater on their mortgage – so buyers are increasingly finding lower offers than list price denied. Buyers, on the other hand, may be reluctant to agree to a deal if they don’t feel like they are getting it at a deep discount, industry insiders say.

Traditional buyers also are finding even buying a foreclosure can be difficult as they’re increasingly outbid by investors willing to pay cash.

“There’s a shortage of attractive inventory,” says Glenn Kelman, chief executive of Redfin Corp. “Customers just keep getting outbid on the houses that they want.”

Real estate professional Steve Capen with Keller Williams Realty in St. Petersburg, Fla., says that the homes most in demand among buyers often don’t require much repair work and are located in good school districts and choice neighborhoods near transit hubs.
“What’s selling is the cream of the crop, and they sell fast,” Capen says. “If it’s not cream of the crop, it’s getting hammered.”
Source: “Buyers’ Market? Stressed Sellers Say Not So Fast,” The Wall Street Journal online (April 25, 2011)

The Domino Effect || Video

Sticky Notes for Real Estate Needs

What to Look for in a Real Estate Agent || A checklist of services

A Real Estate Transaction is much more than just buying or selling a home. A good Realtor has to have marketing savvy and all the right tools to make it as comfortable as possible to get from listing to close efficiently.

When looking for a Realtor to list your home for sale consider the numerous criteria for selecting the agent most capable of handling all the details.
Handling Documents is only one part of the business. Many agents are well qualified to handle Real Estate documents. Marketing expertise to get you the most for your home is rare and in this market it is so important to make sure the agent you hire has the right skills in sales and marketing.

Below is a checklist of Real Estate Services and Skills to look for when selecting a Realtor for your property.

 Common Real Estate Services

 Research and Market Study

 Recent History including:

 Active Listings

 Sold Property

 Withdrawn Listings

 Expired Listings

 MLS Board Membership for your listing

 Quality Yard Sign

 Property Information Flyers

 Competitive Market Analysis

 Required Seller Disclosure statements

 Sellers Estimated Expenses



 Customary Additional Real Estate Services:

 Newspaper Advertising schedule

 MLS Posting details

 Open Houses - Schedule

 Broker Open - Schedule

 Realtor Caravan - Scheduled

 Neighborhood Announcements – Just Listed Post cards



 Advanced Real Estate Marketing Strategies:

 Comprehensive detailed marketing plan

 Search engine advertising

 Advanced internet marketing

 eBlast announcements

 Multiple property photographs

 Enhanced Listing on Top Real Estate Websites

 Lead Router Technology

 Showcase Listings on multiple Real Estate Websites

 Property Binder for visitor review

 Guest Registration Cards ( for follow up)

 Virtual Tours – Uploaded to YouTube

 QR Codes for Flyers

 Creative advertising copy

 Magazine Advertising

 Additional Enhanced Real Estate Services:

 Home Preparation and Staging

 Verification of Buyer Financing eligibility

 Supra Key Electronic Lock Box

 Showing Instructions

 Showing Desk Appointments

 Foreign Nationals Disclosures

 Property Inventory List

 Earnest Money Deposits Verified

 Condominium association Addendums

 Negotiation Strategy

 Transaction management

 Relocation services

 Title Services

 Mortgage Services

 Short Sale services – Expedited

 Closing Services

 HUD Statement

 Review Contracts and Addendums

 Verify Escrow deposits

 Home inspections

 Title insurance

 Home Warrantee

 Condominium Documents

 Lead Based Paint Disclosures

 Chinese Dry wall Disclosures

 Closing instructions for Title Company

 W-9 Transactions

Please feel free to contact me anytime for a Real Estate Listing presentation at a time convenient to your schedule.

Florida Leads the Nation in Forecast Job Growth

MIAMI – April 15, 2011 – According to a Wells Fargo report released this week, Florida is No. 1 in potential job growth once the state shakes off lingering effects from the recession.

The study looked at regional competitiveness – the factors that might lead employers to create jobs locally. To compile results, Wells Fargo analyzed 20 years of employment data and growth trends. It then projected future growth. While an expected boost in tourism post-recession played a part in Florida’s ranking, Wells Fargo also cited an expanded diversity in the state’s job market, such as the Scripps Research facility in Palm Beach County.

“The influx of new medical research facilities will help reinvigorate … growth in Florida, helping further diversify the state’s economy,” according to the report.

The study found Florida competitive in 22 industries. Georgia – No. 2 on the list – had 21. Wells Fargo considered traditionally white-collar industries as Florida strengths, including professional services, insurance and finance.

© 2011 Florida Realtors®

Tips for Buying a Vacation || Second Home || CNN Money Reports ||

ATLANTA – April 14, 2011 – Shoppers can find lots of good deals in vacation homes at the moment. In many second-home hot spots, prices remain close to five-year lows. For example, single-home prices in second-home hotspot Napa, Calif., are down 47 percent from their peak in 2006, according to Fiserv.

A buyer looking to cash in on vacation- or second-home values should consider the following:

1. Is it rentable? Even if a buyer isn’t planning to rent, he or she may still want to consider the rental aspects of the property, particularly since a home’s rental potential can affect its resale value, says Catherine Jeffrey, a real estate professional in Fredericksburg, Texas. Buyers should check with the homeowners association or township to ensure that short-term rentals are allowed.

2. How do you plan to use the home? The loan rate depends, in part, on how the property will be used. For example, if buyers intend to use the property primarily as a second home, they’ll pay about the same mortgage rate as a primary residence, says HSH Associates vice president Keith Gumbinger. However, if they plan to get rental income from the property, the property will be treated as an investment, which means they may need to pay as much as 25 percent of the buying price for the downpayment and up to one percentage point more in interest.

3. Are you eligible for the tax benefits? If owners rent the house for two weeks or less per year, they won’t have to report income to the IRS, and they’ll be able to deduct property taxes and mortgage interest. If the owners stay in the home for less than two weeks or have 10 percent rental days, whichever is greater, they’ll be able to deduct operating costs, such as cleaning and maintenance fees, as well as the interest and property tax, says Rick Shapiro, a CPA in West Hartford, Conn. He suggests homeowners talk with a tax expert to find out what tax benefits apply.

Source: “5 Things to Know About Buying a Vacation Home,” CNNMoney.com (April 5, 2011)

Most Common MISTAKES for Sellers

SEATTLE – April 13, 2011 – In a buyer’s market, sellers have little room for error when putting their home on the market, or they risk having their property linger. Help sellers avoid the following common traps.

1. Overpricing the home. Home values dropped considerably since peaking in 2006, but sellers still want to list a home based on what they paid for it. Eventually they realize their error and have to reduce their price, sometimes several times. In the past month, 23 percent of homes listed for sale on Zillow have reduced their price.

2. Relying too much on comps. Size up the competition currently on the market, not just the homes that have already sold. Evaluate homes with a listing price similar to the seller’s to see how well it stacks up against the competition – and how it can be differentiated.

3. Failing to take into account the home’s web appeal. A home that can’t sell itself on the web could have trouble selling itself in the real world, and photos are key. Include lots of high-resolution photos of the interior, including areas that home that buyers care about most, such as kitchens, living spaces and bathrooms.

4. Hovering during showings. Sellers shouldn’t be home for showings, but as a seller’s agent, neither should you. Lurking sellers or seller agents may make buyers nervous. Other real estate agents often want privacy with their buyers so they can gather true feedback about the house.

Source: “Six Common Mistakes That Home Sellers Make,” MSNBC.com (April 11, 2011)

Little Projects that Add Up Big - Do It Yourself Adds Value

KANSAS CITY, Miss. – April 13, 2011 – They make it look so easy, those do-it-yourselfers. They rip out kitchen floors, lay ceramic tile and install cabinets without any major accidents or irrevocable damage to their marriages.

Well, great for you. Yes, you’re winning.

Some of us lack the energy, patience and desire to commit to major home improvements. Yet, there are plenty of small-scale projects that offer big returns.

We surveyed some experienced real estate agents about budget – and time-friendly projects that can substantially enhance a home. Homeowners can tackle most of these tasks in a weekend, without much DIY angst or expense.

Susie Johnson, with Coldwell Banker Gundaker in St. Louis, says the key is to notice details.

“Dated light fixtures are a cheap fix,” she said. “When you walk into a foyer, you notice the front light fixture.”

Bathroom and kitchen updates are traditionally the top places to invest in a makeover that pays off.

Colleen Lawler, also with Coldwell Banker Gundaker, is a proponent of kitchen “jewelry” – eye-appealing hardware that instantly updates a room. “You can buy a box of 30 knobs that comes with a template,” she said. Current hardware adds a finishing touch.

In a bathroom, an older vanity can be stripped and refinished with some guidance from an expert at a paint store.

“We have had beautiful results with repainting oak cabinets,” Lawler said. By painting a vanity black and adding brushed nickel or oil rubbed bronze hardware, the cabinetry goes from looking circa 1990 to modern. “It’s a huge face-lift,” Lawler said. She recommends using a good-quality paint and spending time in prepping the material.

A simpler suggestion is to replace old towel racks or get rid of old brass doorknobs, she said. Even if the hinges are a darker bronze finish, new doorknobs make a big difference in some homes.

A more complicated task involves replacing the standard, builder-grade trim with upgraded floor molding, she said. It requires being able to miter the corners of the baseboard or use a standard corner block to fill the gap.

“Light fixtures, plumbing fixtures and paint are the top three things just about anyone can do or have a friend help them do,” she said.

Our staff tackled a few of our own DIY projects, ranging from an ambitious attempt to make over a bathroom vanity to using tape and paint to update a wall. We discovered the redecorating power of a can of spray paint and the stunning impact of adding mosaics to a patio.

For the novice to the experienced, there’s a way to feel the pride of fixing or beautifying your home – and doing it all by yourself.

© 2011 St. Louis Post-Dispatch, Aisha Sultan.

American's Value Home Ownership

NEW YORK – April 13, 2011 – A sluggish real estate market hasn’t shaken the confidence of the public in how it views homeownership, according to a new study by the Pew Research Center. Eight in 10 adults (or 81 percent) say owning a home is the best long-term investment a person can make, according to the Pew study of about 2,000 adults conducted in March.


“Homeowners are not blind to what has happened to home prices, nor are they expecting a speedy recovery,” the Pew study finds. In fact, of the homeowners surveyed, about half said their home is worth less now than before the recession, while 31 percent said their home’s value has stayed the same.

Nevertheless, 82 percent of homeowners who said their home is worth less now still strongly or somewhat agree that homeownership is the best long-term investment a person can make, according to the survey.

The value of homeownership even continues to emerge on top when homeowners were surveyed and asked to rate the importance of four long-term financial goals. Homeownership and “being able to live comfortably in retirement” rated the highest – viewed as either extremely or very important by 80 percent of respondents.

Still, optimism about homeownership doesn’t mean they’re completely happy with their current home. Nearly a quarter of all homeowners surveyed said that if they had it to do all over again, they would not buy their current home. Most of the “buyer’s remorse” complaints were about the home itself or its location. Only 31 percent of those surveyed cited financial factors, such as the home losing value or their own changing financial situation.

Source: “Home Sweet Home. Still.” Pew Research Center (April 12, 2011)

Tampa Bay Region Market Trends Report

Investors and International Buyers are Soaking Up Bargains

MIAMI – April 12, 2011 – With affordability at an all-time high, the number of investors and international buyers taking advantage of bargains has reached a record number in all-cash purchases – and some experts predict that number will only grow higher.

A record 33 percent of existing-home sales were made to cash buyers in February, the National Association of Realtors® (NAR) recently reported. The proportion of cash deals could hit 40 percent by the end of this year, predicts Thomas Popik, research director for Campbell Communications in Washington, which conducts monthly surveys of 3,000 real estate brokers.

“Lenders have only been willing to lend to the cream of the crop in terms of credit scores,” says Walter Molony, an NAR spokesman. “As a result, you’re seeing a depressed level of traditional buyers.”

But it’s not just investors moving in: Many of these cash deals are also coming from a growing number of international buyers. About 55 percent of international buyers paid cash for their U.S. homes, according to an April 2010 report by NAR.

The cash buyer advantage?

Cities where about half of all purchases were done with cash include Detroit, Miami, Las Vegas, and Phoenix, in which prices have dropped considerably and foreclosure rates remain high, says Oliver Chang, a housing market analyst with Morgan Stanley.

Short sales and foreclosures accounted for 59 percent of last year’s cash sales, according to a report by Morgan Stanley.

“You buy the house at a discount with cash. Then you flip it almost immediately to the first-time homebuyer who’s using a mortgage, simply because they were not able to buy at the foreclosure sale,” Chang says.

Lenders increasingly reject mortgage applications for foreclosed properties because appraisals are often too far below the agreed-upon price or the transactions take too long to close, says Popik. With tightened lending standards, cash purchases can provide buyers with more leverage and allow buyers to close properties more quickly.

Mike Simmons Troy, a Detroit real estate investor, says that if a house is listed at $40,000 and a buyer offers $35,000 cash, “nine times out of 10, the bank will take the cash.”
Source: “Cashing in on Bargains,” Detroit Free Press (April 10, 2011)

New Investigation Reports || Rife Mortgage Modification Fraud

WASHINGTON – April 8, 2011 – Four fair housing organizations released findings from a year-long undercover investigation of 80 loan modification companies, which they say revealed an industry rife with corrupt practices.

The National Fair Housing Alliance (NFHA), the Connecticut Fair Housing Center, Housing Opportunities Made Equal of Virginia Inc., and the Miami Valley Fair Housing Center issued a report entitled, “Have I Got a Deal for You! An Undercover Investigation of Mortgage Loan Modification Scams.”

An analysis of the 80 loan modification companies uncovered common tactics used by scammers to entice homeowners to use their services:

• 55 percent required an upfront fee to start work or required a low initial fee to conduct minimal work on behalf of distressed homeowners, such as reviewing loan documents.

• 43 percent guaranteed or promised they could secure a loan modification even before learning about the homeowners’ financial limitations.

• 24 percent advised or encouraged homeowners to stop making their mortgage payments or to stop contacting their lenders.

• 16 percent guaranteed a new, much lower interest rate ranging between two and 6 percent on modified loans.

• 12 percent discouraged homeowners from seeking free help from government-approved housing counseling agencies.

• 8 percent encouraged homeowners to provide fraudulent information to their lenders.

“This is shameful abuse by loan modification scammers to take advantage of desperate homeowners,” says Shanna L. Smith, NFHA president and CEO. “We and our partner organizations will work to see to it that these companies are prosecuted by the Federal Trade Commission and other federal and state enforcement agencies.”

With one in nine homeowners nationwide more than 90 days behind on their mortgage payments, a lucrative industry of mortgage modification and foreclosure prevention scams has emerged.

Investigators working on behalf of the fair housing organizations captured scammers saying things like:

• “I’d be breaking the law if I told you to stop paying your mortgage, but friend-to- friend, you won’t get a loan modification until you are behind on your mortgage.”

• “If you don’t qualify, we modify expenses for you. They [the lenders] don’t check it. No one knows what you spend on groceries. We make you qualify by playing with the numbers.”

To read the full report, go to http://www.nationalfairhousing.org/.
© 2011 Florida Realtors®

Pinellas || Bank Owned || REO || Property Statistics

Pinellas County Property Statistics || March 2011

Tampa Bay Ranks in Top 10 Best Places for Home Buyers

Top 10 CNN Money ||

No Joking Around || Housing Shortage LOOMS

WASHINGTON – April 1, 2011 – Mike Castleman, founder and CEO of Metrostudy, which tracks real-time data of the country’s inventory of new homes, says a housing shortage is looming that will soon create a huge surge in demand for new homes. As such, now is the time to buy, he says.


In the 41 cities Metrostudy covers, 78,000 houses are either vacant and for sale, or under construction – that is less than a quarter of the new homes that fell in that category during the housing boom in 2006 and way below the level of a decade ago.

“If we had anything like normal levels of buying, those houses would sell in 2½ months,” says Castleman. “We’d see an incredible shortage. And that’s where we’re heading.”

The historic drop in new construction mixed with the decline in housing prices is laying the foundation for a dramatic recovery in residential real estate, Castleman told CNN. Castleman expects homeowners soon will start returning, which will drive up prices in many markets later this year.

While demand remains low for new construction, he expects that to change. He foresees the recovery following a similar path as previous ones: A severe housing shortage will drive a big increase in demand.

“We’ll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved,” he predicts. “Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house.” But they’ll want the house so bad that they’ll “bid the prices up.”
Source: “Real estate: It’s time to buy again,” CNN (March 28, 2011)