Hi Everyone!
Well it was a tough week on Wall Street. For those of you who have most of your investments in stocks, you lost a large percentage of your portfolio. I'm not an expert in stocks by any means, but I would imagine, if the companies you are invested in are solid, then you should just hold on to your stocks and wait for them to come back. Unlike 2000 when the stock market crashed with the Internet Bubble Burst (I was a victim both in my stock portfolio and in my Internet company) the stock market is still built on a lot of solid companies. In fact, it would make sense that after a week like last week, this might be a good time to buy up stocks. You know when a stock like GM is down to the lowest it has been since 1949, then it probably is a safe buy. However, like I said, I'm not an expert in stocks by any means so don't take my advice unless you talk to a professional.
What I am though, is a professional in the Real Estate field. If you are or have taken your money out of the stock market, this is a great time to invest in Real Estate. As you probably know, the Real Estate Market has crashed for almost 3 years now. Home prices are back to 2002 and 2003 pricing which was right at the beginning of the boom. You can now buy a home and actually have a positive cash flow for your rental in most cases. Finally, the people who are either not taking advantage of this market or have lost their homes to short sales or foreclosures still need a place to live...therefore, the rental market is pretty good. Of course it is still price driven and many people, including myself, are upside down in our investments and must try to get a higher rent.
So what does this mean to you? It depends on your goals. If you have thought about investing in Real Estate, this is probably a great time to do so. Currently you can buy new construction homes for as low as $120k (1200 sq. ft.) on a lot. We haven't seen that for quite some time. You can also buy homes that are just a couple of years old and up to 2000 sq. f. for the same price. It certainly is a great time to buy. The only problem that may arise for you is the financing. Currently the loan market is totally credit driven. This means the better your credit, the better your interest rate.
If you are buying a primary home, then this might be the chance of your lifetime to grab a piece of paradise at an awesome price. The way things were going there up until 2005, I didn't think my children would ever be able to buy a home in their lifetime. However, like always, the market corrected itself and home prices are now affordable again! I don't know that I would wait to long to buy a home as prices and interest rates are bound to rise again at some point. After all, Brevard County is the least expensive Waterfront Community in Florida. Over the next 10 year period, pending they can sell their homes, the 77 Million Baby Boomers will be heading for retirement. Florida will always remain one of the top destinations for retirees. With Brevard County being so affordable, you can be sure that this market will increase in value once things normalize! Of course I have no crystal ball to tell you when that will be, but it seems to me that prices can't go much lower making Brevard County's losses, your opportunities!
If you would like to search for a home or investments in Brevard County, just go to:
http://www.melbournehomesearch.com/index.cfm/Search_MLS
Here you will have access to every listing in Brevard County Florida. Whether you are looking for a tropical home, a waterfront home or a condo, you can find it all right here.
As aways, I look forward to helping you. Have a fun Sunday!
Mitch
Showing posts with label florida homes. Show all posts
Showing posts with label florida homes. Show all posts
Sunday, October 12, 2008
Sunday, February 10, 2008
Short Sales - Are they worth the wait?
Hi Everyone!
It's Sunday night and I should be sleeping, but there is so much happening in the Real Estate world right now it's hard to go to sleep. As most of you have seen, Short Sales have now become very popular. Currently about 25% of all our listings are Short Sales.
First, let's spend a minute and explain exactly what is a Short Sale? Let's say you bought your home in 2005 for $300k. Three years later the market has crashed and the home you went out on the limb to buy is now worth $200k. To make matters worse, you may have bought your home with zero money down and an adjustable rate mortgage to boot. Your rate has gone up and that hope of your home going up in value $100k like your friends did only a couple of years ago is gone. You now qualify as so many do these days, to ask the bank to let you sell the home for the current market value of $200k. Once approved by the bank, you can now list your property to sell. So, a short sale is selling a home for less than what you owe on it. The seller has to prove to the bank they are a hardship case.
The benefit as a seller is they have the opportunity to get themselves out of their bad investment. It will still hurt their credit, but not quite as much as a foreclosure. In many cases the bank will not let you out of the home unless you sign a note saying you will pay the difference back to the bank. Most of the people put in this situation will choose to foreclose because they don't have the money to pay the bank. However, most banks are not asking for a note and they realize, in hind sight of course, that they should have been a little more conservative when deciding who they should or shouldn't give loans.
The benefit to the buyer, or at least the perceived benefit, is they will get a great deal on a property. Granted, there are some great deals to be had through Short Sales. However, most of the banks are not going to take much of a hit below current market values. Many times the bank will receive offers, then do an appraisal on the property to determine if they will accept any offers.
The Problem
It all sounds so simple doesn't it? Well it isn't! Short Sales have proven to cause a lot of heart break and distress. Let me tell you about a couple that we have dealt with recently.
The first couple put an offer of the home of their dreams. They fell in love with this home from the moment they walked through the front door. Their offer was full price based on the advertised listing price. They were very excited. The offer was submitted to the bank the following day. At this point we hadn't done many Short Sales and when we had, they were handled within a few days at most. So we waited for the banks answer....and waitied....and waited. Six months later we finally heard that the bank would not accept the offer. Yes, you read correctly, six months later. After some quick thinking from my Agent, she was able to convince the bank to take the offer. Our customers were full of emotions going from depressed to very excited again. Everything from there until closing went great. Our customers had their home inspection ($300), Termite Inspection ($75), appraisal ($300) and survey ($350). The got to closing and the seller found out she was going to have to sign a note for the difference in the short sale...around $57k. She refused and walked out of the closing room leaving our customers with their mouths hanging down and the tears flowing. They were devastated. To make things even a little worse, the next day the seller said she would sign. Our customers emotions were doing what you would expect by now. The got to closing and the seller again refused to sign. They were destroyed. Don't worry, there was a very happy ending to the story. We found them another house they loved even more and they closed in 10 days through our mortgage company. Everyone was happy in the end.
The second story won't be as long. It's basically the same as the first story in the beginning. They fell in love with the home and put an offer $3k above the asking price. We thought for sure they would get this home. After waiting for about three weeks, the bank came back and said they wanted $265k. This is $8,000 higher than our customers offer and $11,000 that the other Realtor had it listed in the MLS. Our customer was extremely upset and thought it was a bait and switch by the listing Realtor. The reality is the banks will not give us the dollar figure that they will take until we bring them an offer. Realtors can only do their best at guessing what the bank will take and list it around that price. It's really a mess.
The point I"m trying to make here is that Short Sales sound good on the outside but you have to be prepared to wait a very long time and possibly not get the home or pay more than you had offered. The banks are understaffed trying to handle an ever growing number of homes coming to them for Short Sales.
Now let's go back to the beginning of the conversation when we talked about the situation inwhich one can try to sell as a Short Sale. The reality is that the bank is not going to take less than market value in most cases. You are going to pay the same price for this home as you might with a regular resale with no issues.
My Advice
So what happens if you fall for a Short Sale home? Keep looking is what I've told most of our customers. You can put an offer on the Short Sale home, but you should keep looking for your perfect home while waiting for the answer from the bank. Chances are, with the amount of homes on the market, you will find another home with not so much baggage as the Short Sale home. In the end you will pay approximately the same amount of money for either home.
I know that everyone wants to get the best deal they can get. That is human nature and the American way! However, there are better ways to get good deals then doing a Short Sale. For instance, there are so many builders who have homes for sales less expensively than most resale homes. Also, look at homes where the owner has bought their home before 2002. Chances are they didn't pay much for their home and even wtih the market crash, they still have plenty of equity. The more equity they have, the better chance you have of buying the home at a better price. Of course if they don't have to move, they won't be going down to much either. But if the do have to sell, they have the flexibility to lower than price.
Hopefully that will clear up any thoughts and or questions that you may have had on Short Sales. I know it can get quite confusing out there. Believe me, when this first started happening we were all confused and we sell houses for a living. Now that we have done so many of them, we can help you though with ease. However that doesn't make the bank go any faster. We can just prepare you better for the possible heartache you might feel. So take my advice...Make your Short Sale offer if you want, but keep looking for your ferfect home. I know we have one available for you right now.
As always, feel free to call the office at 321-259-9115 or email me to answer any questions you might still have on Short Sales or anything else that I can do for you.
Have a great night!
Mitch
It's Sunday night and I should be sleeping, but there is so much happening in the Real Estate world right now it's hard to go to sleep. As most of you have seen, Short Sales have now become very popular. Currently about 25% of all our listings are Short Sales.
First, let's spend a minute and explain exactly what is a Short Sale? Let's say you bought your home in 2005 for $300k. Three years later the market has crashed and the home you went out on the limb to buy is now worth $200k. To make matters worse, you may have bought your home with zero money down and an adjustable rate mortgage to boot. Your rate has gone up and that hope of your home going up in value $100k like your friends did only a couple of years ago is gone. You now qualify as so many do these days, to ask the bank to let you sell the home for the current market value of $200k. Once approved by the bank, you can now list your property to sell. So, a short sale is selling a home for less than what you owe on it. The seller has to prove to the bank they are a hardship case.
The benefit as a seller is they have the opportunity to get themselves out of their bad investment. It will still hurt their credit, but not quite as much as a foreclosure. In many cases the bank will not let you out of the home unless you sign a note saying you will pay the difference back to the bank. Most of the people put in this situation will choose to foreclose because they don't have the money to pay the bank. However, most banks are not asking for a note and they realize, in hind sight of course, that they should have been a little more conservative when deciding who they should or shouldn't give loans.
The benefit to the buyer, or at least the perceived benefit, is they will get a great deal on a property. Granted, there are some great deals to be had through Short Sales. However, most of the banks are not going to take much of a hit below current market values. Many times the bank will receive offers, then do an appraisal on the property to determine if they will accept any offers.
The Problem
It all sounds so simple doesn't it? Well it isn't! Short Sales have proven to cause a lot of heart break and distress. Let me tell you about a couple that we have dealt with recently.
The first couple put an offer of the home of their dreams. They fell in love with this home from the moment they walked through the front door. Their offer was full price based on the advertised listing price. They were very excited. The offer was submitted to the bank the following day. At this point we hadn't done many Short Sales and when we had, they were handled within a few days at most. So we waited for the banks answer....and waitied....and waited. Six months later we finally heard that the bank would not accept the offer. Yes, you read correctly, six months later. After some quick thinking from my Agent, she was able to convince the bank to take the offer. Our customers were full of emotions going from depressed to very excited again. Everything from there until closing went great. Our customers had their home inspection ($300), Termite Inspection ($75), appraisal ($300) and survey ($350). The got to closing and the seller found out she was going to have to sign a note for the difference in the short sale...around $57k. She refused and walked out of the closing room leaving our customers with their mouths hanging down and the tears flowing. They were devastated. To make things even a little worse, the next day the seller said she would sign. Our customers emotions were doing what you would expect by now. The got to closing and the seller again refused to sign. They were destroyed. Don't worry, there was a very happy ending to the story. We found them another house they loved even more and they closed in 10 days through our mortgage company. Everyone was happy in the end.
The second story won't be as long. It's basically the same as the first story in the beginning. They fell in love with the home and put an offer $3k above the asking price. We thought for sure they would get this home. After waiting for about three weeks, the bank came back and said they wanted $265k. This is $8,000 higher than our customers offer and $11,000 that the other Realtor had it listed in the MLS. Our customer was extremely upset and thought it was a bait and switch by the listing Realtor. The reality is the banks will not give us the dollar figure that they will take until we bring them an offer. Realtors can only do their best at guessing what the bank will take and list it around that price. It's really a mess.
The point I"m trying to make here is that Short Sales sound good on the outside but you have to be prepared to wait a very long time and possibly not get the home or pay more than you had offered. The banks are understaffed trying to handle an ever growing number of homes coming to them for Short Sales.
Now let's go back to the beginning of the conversation when we talked about the situation inwhich one can try to sell as a Short Sale. The reality is that the bank is not going to take less than market value in most cases. You are going to pay the same price for this home as you might with a regular resale with no issues.
My Advice
So what happens if you fall for a Short Sale home? Keep looking is what I've told most of our customers. You can put an offer on the Short Sale home, but you should keep looking for your perfect home while waiting for the answer from the bank. Chances are, with the amount of homes on the market, you will find another home with not so much baggage as the Short Sale home. In the end you will pay approximately the same amount of money for either home.
I know that everyone wants to get the best deal they can get. That is human nature and the American way! However, there are better ways to get good deals then doing a Short Sale. For instance, there are so many builders who have homes for sales less expensively than most resale homes. Also, look at homes where the owner has bought their home before 2002. Chances are they didn't pay much for their home and even wtih the market crash, they still have plenty of equity. The more equity they have, the better chance you have of buying the home at a better price. Of course if they don't have to move, they won't be going down to much either. But if the do have to sell, they have the flexibility to lower than price.
Hopefully that will clear up any thoughts and or questions that you may have had on Short Sales. I know it can get quite confusing out there. Believe me, when this first started happening we were all confused and we sell houses for a living. Now that we have done so many of them, we can help you though with ease. However that doesn't make the bank go any faster. We can just prepare you better for the possible heartache you might feel. So take my advice...Make your Short Sale offer if you want, but keep looking for your ferfect home. I know we have one available for you right now.
As always, feel free to call the office at 321-259-9115 or email me to answer any questions you might still have on Short Sales or anything else that I can do for you.
Have a great night!
Mitch
Wednesday, October 3, 2007
The never ending quest to become the best Real Estate company in the World!
Hi Everyone!
I'll be writing another blog shortly with all the stats from the third quarter. In the meantime, as I sit here in my house with my favorite cat laying next to me (don't tell my other two cats or the dog as they all think they are my favorite) I am thinking of the shape and destiny my company is headed. In two and a half years we have built a wonderful company with a great staff and great customers. I am truly blessed to be around so many awesome people every day! Part of the reason of this blog is to share what goes on in building a company and what goes on in my mind while in the process of building the compay. Hence the name, The Day in The Life of a Real Estate Broker.
I just finished reading the book Good to Great for the third time in the past month. Along with eMyth, it is one of the best business books out there. Many of the things I read in eMyth which I have implemented have been a huge success for me. If you own a business or are planning on starting a business, you need to read these two books now.
With my new found knowledge I went on to analyze my company...the good, the bad and the ugly. I will be the first to admit that no matter how much I have tried to be the best, we haven't been. We have been very good, but there is still room for improvement. So the question that I have to figure out is what can we be the best in the world at as a company. Interesting stuff. Have you ever thought what you could be the best in the world at? It's a very difficult question if you can face the brutal facts about your company. I spent several days pondering this question and trying to figure out the answer. Then while driving to work one day it occured to me that we can be the best in the world at two things.
1. Buyers Agents - Currently most of our business comes from buyers. We do listings of course like all Real Estate companies, but when it comes down to it, we are really a Buyers Agency. I realized we could be the best Buyers Agency in the world. Big statement, but I have big beliefs and work ethic to make this happen. Now that I understand that we can be the best Buyers Agency in the world, it changed the way I do several areas of my business. Most importantly it affected how I look at listing houses. By being the best Buyers Agency in the world, it actually works toward being a great Listing Agency too without having to focus my business in that arena.
2. Customer Service - In my opinion most Real Estate companies have a very limited, if any, customer service programs. The second thing I realized was that I can create the best Real Estate customer service in the world. Again another big statement and again I believe that I have the staff and the company which can do just that! Once I realized this, I went to work developing our Over the Top Customer Service Program. This program is under development and is shaping up nicely. Once developed, it will fit into my core business of working with buyers. Currently we have finished our Tropical Realty Tid Bits booklet which can be found on our site at: http://www.mitchrealty.com/bin/web/real_estate/AR79959/ACTIVATE_FRAMES/RELOCATION/Melbourne/1190730422.html
If you haven't read this yet and you are planning on moving to Brevard County, then take a few moments and go through it. We will be expanding it as time moves on but currently there are several pages of great info for your move. This took several months to put together and Kelly, our office manager did the bulk of the work. Thanks Kelly!
That is the start to our customer service. Some of the things we are implenting as part of our new customer service program are simple things like having cold bottles of water in a cooler whenever you take someone out to see homes. It's amazing how great a cold bottle of water feels after you have looked at 5 houses in the first couple of hours.
As with everything in our company, we will create our Over the Top Customer Service program into a system which will be easy for all of our staff to implement. Everyone at the company is very excited about this program. We all want to be the best at what we do, but sometimes it takes a bunch of people getting together and brainstorming to come up with just how to accomplish these goals. By November 1, 2007 we will be rolling out the program. I have a very busy October planned.
As you can see my fun never stops. I really feel that by my Agents and myself helping as many people as possible we save them the chances of not getting quality advice and help in buying their new home. Unfortunately, as with most industries, we have our share of evil. Just because an Agent or Agency does huge numbers doesn't mean they are an ethical and honest company. I prefer to only hire the best people. I always believe that if you are a good human being you will always do well. So far this has proved true to myself, my company and my Agents. In the reality, it's not hard to be honest and ethical. Personally I find it very easy!
That's it for now. If you have any questions or need any help don't hesitate to call or email me at mitch@mitchrealty.com. Also, if you are in business or are starting a business don't hesitate to call or email for advice. I am always willing to help people in Marketing and other aspects of business.
Have a fun night!
Mitch
I'll be writing another blog shortly with all the stats from the third quarter. In the meantime, as I sit here in my house with my favorite cat laying next to me (don't tell my other two cats or the dog as they all think they are my favorite) I am thinking of the shape and destiny my company is headed. In two and a half years we have built a wonderful company with a great staff and great customers. I am truly blessed to be around so many awesome people every day! Part of the reason of this blog is to share what goes on in building a company and what goes on in my mind while in the process of building the compay. Hence the name, The Day in The Life of a Real Estate Broker.
I just finished reading the book Good to Great for the third time in the past month. Along with eMyth, it is one of the best business books out there. Many of the things I read in eMyth which I have implemented have been a huge success for me. If you own a business or are planning on starting a business, you need to read these two books now.
With my new found knowledge I went on to analyze my company...the good, the bad and the ugly. I will be the first to admit that no matter how much I have tried to be the best, we haven't been. We have been very good, but there is still room for improvement. So the question that I have to figure out is what can we be the best in the world at as a company. Interesting stuff. Have you ever thought what you could be the best in the world at? It's a very difficult question if you can face the brutal facts about your company. I spent several days pondering this question and trying to figure out the answer. Then while driving to work one day it occured to me that we can be the best in the world at two things.
1. Buyers Agents - Currently most of our business comes from buyers. We do listings of course like all Real Estate companies, but when it comes down to it, we are really a Buyers Agency. I realized we could be the best Buyers Agency in the world. Big statement, but I have big beliefs and work ethic to make this happen. Now that I understand that we can be the best Buyers Agency in the world, it changed the way I do several areas of my business. Most importantly it affected how I look at listing houses. By being the best Buyers Agency in the world, it actually works toward being a great Listing Agency too without having to focus my business in that arena.
2. Customer Service - In my opinion most Real Estate companies have a very limited, if any, customer service programs. The second thing I realized was that I can create the best Real Estate customer service in the world. Again another big statement and again I believe that I have the staff and the company which can do just that! Once I realized this, I went to work developing our Over the Top Customer Service Program. This program is under development and is shaping up nicely. Once developed, it will fit into my core business of working with buyers. Currently we have finished our Tropical Realty Tid Bits booklet which can be found on our site at: http://www.mitchrealty.com/bin/web/real_estate/AR79959/ACTIVATE_FRAMES/RELOCATION/Melbourne/1190730422.html
If you haven't read this yet and you are planning on moving to Brevard County, then take a few moments and go through it. We will be expanding it as time moves on but currently there are several pages of great info for your move. This took several months to put together and Kelly, our office manager did the bulk of the work. Thanks Kelly!
That is the start to our customer service. Some of the things we are implenting as part of our new customer service program are simple things like having cold bottles of water in a cooler whenever you take someone out to see homes. It's amazing how great a cold bottle of water feels after you have looked at 5 houses in the first couple of hours.
As with everything in our company, we will create our Over the Top Customer Service program into a system which will be easy for all of our staff to implement. Everyone at the company is very excited about this program. We all want to be the best at what we do, but sometimes it takes a bunch of people getting together and brainstorming to come up with just how to accomplish these goals. By November 1, 2007 we will be rolling out the program. I have a very busy October planned.
As you can see my fun never stops. I really feel that by my Agents and myself helping as many people as possible we save them the chances of not getting quality advice and help in buying their new home. Unfortunately, as with most industries, we have our share of evil. Just because an Agent or Agency does huge numbers doesn't mean they are an ethical and honest company. I prefer to only hire the best people. I always believe that if you are a good human being you will always do well. So far this has proved true to myself, my company and my Agents. In the reality, it's not hard to be honest and ethical. Personally I find it very easy!
That's it for now. If you have any questions or need any help don't hesitate to call or email me at mitch@mitchrealty.com. Also, if you are in business or are starting a business don't hesitate to call or email for advice. I am always willing to help people in Marketing and other aspects of business.
Have a fun night!
Mitch
Friday, September 21, 2007
The Bottom is here!
Hi Everyone!
After two years of the Real Estate Market going down in the Country as well as the Brevard County area, the bottom appears to be here. In a recent article published on CNNMoney.com, top analyst are saying that the bottom is either here or will be here by the end of the year. You can read the article at:
http://money.cnn.com/2007/09/19/real_estate/steep_home_price_drops_coming/index.htm
We have been noticing more and more buyers starting to come on the market in the past month or so. September is usually a slower month here in Brevard but it seems to be picking up. This is great news for everyone who is looking to buy a home but have to sell their home first. Many of our buyers who want to buy simply can't until their home sells. With the market starting to bottom out, inventory will start moving which means our sellers will sell and become buyers and the market will level off.
One thing that we are watching closely is interest rates. Many people believe that when the Feds cut the interest rates as they did this past week, that mortgage rates will automatically fall too. Unfortunately that isn't the case. Mortgage rates are tied to the bond. For instance, this past Monday rates were around 61/8 where yesterday they were at 6.375. If you are thinking about buying and want to wait, you might want to rethink that thought. If you remember many posts ago we talked about how you will either catch the pricing going down or going up. Very few people catch it at the exact bottom. It's very similar to the stock market. Nobody knows for sure what the bottom is going to be. As I have been saying for the past few months, this is a great time to buy! Prices are down and rates are still great.
If you have any questions about mortgages or real estate don't hesitate to call us at 321-259-9115 or as always you can email me at mitch@mitchrealty.com
Have a great weekend!
Mitch
After two years of the Real Estate Market going down in the Country as well as the Brevard County area, the bottom appears to be here. In a recent article published on CNNMoney.com, top analyst are saying that the bottom is either here or will be here by the end of the year. You can read the article at:
http://money.cnn.com/2007/09/19/real_estate/steep_home_price_drops_coming/index.htm
We have been noticing more and more buyers starting to come on the market in the past month or so. September is usually a slower month here in Brevard but it seems to be picking up. This is great news for everyone who is looking to buy a home but have to sell their home first. Many of our buyers who want to buy simply can't until their home sells. With the market starting to bottom out, inventory will start moving which means our sellers will sell and become buyers and the market will level off.
One thing that we are watching closely is interest rates. Many people believe that when the Feds cut the interest rates as they did this past week, that mortgage rates will automatically fall too. Unfortunately that isn't the case. Mortgage rates are tied to the bond. For instance, this past Monday rates were around 61/8 where yesterday they were at 6.375. If you are thinking about buying and want to wait, you might want to rethink that thought. If you remember many posts ago we talked about how you will either catch the pricing going down or going up. Very few people catch it at the exact bottom. It's very similar to the stock market. Nobody knows for sure what the bottom is going to be. As I have been saying for the past few months, this is a great time to buy! Prices are down and rates are still great.
If you have any questions about mortgages or real estate don't hesitate to call us at 321-259-9115 or as always you can email me at mitch@mitchrealty.com
Have a great weekend!
Mitch
Subscribe to:
Posts (Atom)