With the Federal Reserve cutting the interest rate by three-quarters of a point on Tuesday and possibly another half a point shortly, as predicted, do you feel that this is a little bit too late or do you think this will have a significant effect on the economy and the predicted foreclosures?
The cut in in the interest rate was designed to help in response to all the coverage on a recession which is being promoted as having a 50% chance of happening.
Let’s just refresh what recession is:
Per Wikipedia: negative economic growth for 2 or more successive quarters in a year. A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits.
and an interesting note:
There is much debate, sometimes ideologically motivated, as to whether government intervention smoothes the cycle, exaggerates it, or even creates it.
Do I think that by lowering the interest rate this will have an effect on all of the foreclosures? Yes, some. Obviously, not those already involved in the foreclosure process. Other homeowners who have adjustable rate mortgages or sub-prime loans will now have lower payments.
Some homeowners with those lower payments will now be able to afford their house payments and others unfortunately will not.
What this definitely, without question confirms, is that it is one of the BEST times to buy a home and/or investment property while interest rates are down and possibly going down another 1/2 point. This makes mortgage payments less which translates to a better deal for the home buyer or investor.
Now, how many times have you heard this? It’s true and for those lucky enough to jump on the bandwagon, it’s going to be a nice ride with no bumps.
If you have an equity line of credit, at 6.0% or more, definitely refinance. Anytime, there is a 1% interest rate difference in what you currently have and what is being offered on a FIXED INTEREST RATE, you should jump on it.
Just make sure that you are with a reputable Mortgage Lender. If you need a referral just give me a call. And no, I don’t make any money for the referral for those who wonder, I just get happy, well educated clients that have good loans. Love that!
Let me know your thoughts on the recession. The debate should be interesting.
AND
Do you think the Feds are a day late and a dollar short to this party?
And of course if you would like help with you Real Estate Questions please feel free to give me a call 407-580-7011
As you may know, the January 29th 2008 Presidential Primary election Voters said
‘Yes on 1’ Property Tax Amendment 1, Which lowers property taxes statewide. The property tax amendment allows buyers to take their Save Our Homes tax savings with them when they move. One of these changes allows homestead property owners to transfer up to $500,000 of their Save-Our-Homes benefits to their next homestead.
You can visit the Orange County Property Appraiser Website at: http://www.ocpafl.org/
to view a powerpoint presentation on the Portability and click on the Portability Calculator to determine your portability and tax amount.
To view full story CLICK HERE
The Pledge of Allegiance
With my impending citizenship approaching I was searching through some things to find out for myself the origins of the pledge. During the course of that search I found this remarkable piece of video.
It is old for sure, but it is a reminder of exactly why it is that we live here; why it is that this is the greatest country in the world; and what exactly it means - something many in Congress have clearly forgotten.
And so take four minutes out of your day and remind yourselves of all these things.
I give you Red Skeltons's Pledge of Allegiance
Florida voters are at the polls today voting on the proposed property Tax amendment.
Orlando Florida- Today is more than just Super Tuesday in the Presidential Primary Election and local elections here in Orlando Florida.
In the state of Florida we have another big issue that will get decided on by Orlando residents - it is Florida Constitutional Amendment 1 that has 4 components that will affect our future property taxes if it passes with 60% of the voters voting YES!Provision #3 is the one most of my real estate investors and second home owners are watching since it will provide much needed help to our non-homestead Orlando property owners. Remember when you vote it’s ALL or NOTHING! If the Amendment passes it will be retroactive to January 1, 2008. So I will give you an overview of the four Provisions Amendment 1 covers:
Would provide another $25,000 to the homestead exemption for local taxes however, this does not apply to school taxes.While this is good for the individual Orlando home owners local governments and municipalities say they will lose money.
This will make “Save our Homes” portable statewide which will give those who want to move up to a larger home or downsize into a maintenance free condo or villa now won’t be slammed with a huge tax adjustment. I will explain how to calculate this in more detail. Just remember when looking to buy a house or condo in Orlando and throughout the Orlando area realize that the taxes shown in the MLS even if this passed will NOT reflect what your taxes will be on a new property purchase. Another great feature is that homeowners would now actually have 2 years from the time they sell their homesteaded home (or give it up) to transfer it to a new property. Your home had to be homesteaded in 2007 and you would have until 2009 to transfer this savings to a new purchase.
This is the property tax provision that caps the property assessment increases at 10% for non homesteaded property (if you own or want to own a second home or condo here - this is for YOU). This has been desperately needed to help local businesses , second home and vacation home owners like many of our clients in the Orlando area. While it’s going to help those vacation property owners in the future it doesn’t give them any relief for the recent property value run ups we experienced for local homes and condos on Orlando properties. Note: Like Provision 1 - this cap will not apply to local school taxes.
This provision creates a new $25,000 property exemption for some business equipment and mobile home properties. This should further help local business and mobile home owners at the expense of local governments. Mobile Home owners now won’t pay taxes on the first $25,000 of property value (often sheds, carports, other improvements). So today is a big day in Orlando and throughout Florida - it will be interesting to see what the people of Florida decide. Check back tomorrow and we’ll update you on the results and cover how to calculate your Save our Homes Portability.
List Price: $189,900 Bedrooms: 3 Baths: 2 SqFt Heated: 1,536 Year Built: 2005 Property: Ground Floor Unit, Townhouse Corner Unit, End Unit,
HUGE PRICE REDUCTION-BARELY 'LIVED IN - LIKE NEW" CARRIAGE HOME IN A GATED COMMUNITY OVERLOOKS POND VIEWS AND COMMUNITY POOL. BEAUTIFUL FIRST FLOOR PLAN IN END UNIT, NO STAIRS TO CLIMB. UPGRADED LIGHTING FIXTURES & FANS. BONUS ROOM THAT IS GREAT FOR AN OFFICE/STUDY OR 3RD BEDROOM. YOUR CENTRALLY LOCATED KITCHEN FEATURES A BREAKFAST BAR, ENDLESS CABINETS, A CLOSET PANTRY, 42' CABINETS, ALL GE APPLIANCES & MUCH MORE. YOUR OWNERS RETREAT ALSO INCLUDES A GARDEN TUB & A HUGE WALK-IN CLOSET. PREMIUM LOT W/ MANY UPGRADES. CLOSE TO VERANDA PARK AND METRO WEST GOLF COURSE. BEAUTIFUL COMMUNITY POOL & TENNIS COURTS. A MUST SEE
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 5.48 percent with an average 0.4 point for the week ending January 24, 2008, down from last week when it averaged 5.69 percent as well. Last year at this time, the 30-year FRM averaged 6.25 percent. The 30-year FRM has not been lower since the week ending March 25, 2004 when it averaged 5.40 percent.
The 15-year FRM this week averaged 4.95 percent with an average 0.4 point, down from last week when it averaged 5.21 percent. A year ago at this time, the 15-year FRM averaged 5.98 percent. The 15-year FRM has not been lower since the week ending April 1, when it averaged 4.84 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.13 percent this week, with an average 0.4 point, down from last week when it averaged 5.40 percent. A year ago, the 5-year ARM averaged 6.00 percent. The 5-year ARM has not been lower since June 30, 2005, when it averaged 5.06 percent.
One-year Treasury-indexed ARMs averaged 4.99 percent this week with an average 0.6 point, down from last week when it was 5.26 percent. At this time last year, the 1-year ARM averaged 5.49 percent. The 1-year ARM has not been lower since October 27, 2005, when it averaged 4.91 percent.
"Economic news released last week confirmed the weak condition of the housing market. Housing starts fell further in December to 1.006 million units, the slowest pace since May 1991," said Frank Nothaft, Freddie Mac vice president and chief economist. "For the year as a whole, housing starts dropped nearly 25 percent, from 2006’s level. This was the largest annual decline since 1980. New permits issued also fell to the lowest level since March 1993.
Identity Theft It's Important, It's critical that you protect your. Click on this 10 minute video below to learn more.
http://www.vodium.com/MP/MPF/1.1.8/mpf.asp?dataset=pn100311_fh_ftc&eventid=83S99Z4O&majver=7&minver=0&revver=0
Readin’, ritin’ and rithmatic.
That just about covers the learning that someone needs to know (as long as you live in the “holler”). But homeowner associations have their own version of the Three Rs called Rules, Regulations and Resolutions. These are the policies and procedures that define the standards of the community. They must comply with state and federal law. For example, the board cannot enact a rule that violates Fair Housing Act.
Rarely if ever are the Three Rs clearly or fully defined in the governing documents. That is by design to allow flexibility and customization. Amending bylaws is tedious and difficult. The Three Rs can usually be modified as needed by the board. The board may use either rules and regulations or resolutions to accomplish this goal. So what’s the difference?
Rules and Regulations are used to address rules of conduct. Appropriate topics include:
When adopting new or revised rules, it’s wise for the board to solicit owner input for a greater degree of compliance. Any proposed rule or regulation must comply with the governing documents. For example, if the governing documents state that guest parking may only be used by guests, a board rule cannot change that. That requires an amendment voted upon by the members.
Resolutions are the preferred method of establishing procedures for the homeowner association. Resolutions come in two types: policy and administrative.
Policy Resolutions define acceptable community standards. An example of a policy resolution: Many governing documents are unclear with regard to homeowner association versus owner maintenance responsibilities. Who repairs a water supply line after it enters an owner’s unit? Who repairs damage from a flood originating in an upper unit? There are many variations on this theme that could be answered in a policy resolution that defines each item according to who is responsible.
This particular resolution directly impacts homeowner insurance and owner responsibilities. Other significant policy resolutions deal with money collection, architectural guidelines and enforcement procedures.
Administrative Resolutions define procedural guidelines, like how to run board and homeowner meetings.
Mechanics of a Resolution. The resolution should first cite the relevant provisions of the governing documents and any applicable state statute, especially those sections which give the homeowner association authority to establish policies. Following the authority section are the details of the resolution. It is highly recommended to circulate proposed resolutions to the membership for a minimum 30 day period for comment before the board votes on it. Once approved, it should be dated and signed by the board president and the secretary.
About amending the governing documents. The Three Rs can be enacted by the board but amending the governing documents must be approved by the members by the percentage indicated in the governing documents. Getting this vote is often difficult so amendments should not be undertaken lightly. However, if the documents are unwieldy or in violation of the law in some respect, amending may be prescribed. Always consult with an attorney knowledgeable in homeowner association law.
Rules, regulations and resolutions help provide a clear and systematic way to deal with routine issues. Once enacted, they need to be enforced consistently and apply to all members, including the board.
The Fed expects banks to reduce the interest they charge their customers.
Q: Why did the Federal Reserve lower interest rates?A: The federal funds rate is the interest that banks charge one another for overnight loans. When the Fed raises its target for that rate -- the rate itself is actually set each day by the open market -- it tends to slow the economy, because everyone's money costs more to borrow. When the Fed lowers its target rate, it has the opposite effect. So by cutting the cost of the money banks borrow from each other, the Fed expects the banks to reduce the interest they charge their customers, who in turn can spend or invest the savings, which should stimulate the economy.Q: Will the rate cut lower the cost of a mortgage?
The interest on fixed-rate mortgages is tied to long-term financial instruments, and the federal funds rate is applied to overnight loans between banks -- about as short-term as you can get. So Tuesday's drop in the fed funds rate is unlikely to affect those kind of mortgages anytime soon. But adjustable-rate mortgages are generally tied to shorter-term interest rates, such as the one-year Treasury bill. So if you're currently making payments on an adjustable-rate loan and it's coming up for its periodic adjustment, or "reset," the rate should fall and your monthly payments should shrink.Q: Will credit-card interest rates fall?A: Although the interest consumers pay on credit-card balances and most other revolving debt isn't tied directly to the federal funds rate, there is an indirect effect when that key rate changes. So credit-card balances, auto loans and other unsecured loan rates could fall somewhat. Credit cards with variable interest rates are tied to banks' "prime rate" -- what they charge their best commercial-loan customers -- and that rate generally moves in tandem with the Fed's target for the federal funds rate. So if you're using such a card, the annual percentage rate you pay on any balance is likely to shrink. But remember: Your credit score remains a significant factor in determining your card's APR, so the extent to which a cardholder might benefit from the Fed's action will vary from person to person.Q: Are home-equity lines of credit and home-equity loans likely to cost me less?A: The rates on home-equity lines of credit are tied to banks' prime rate, so they have already been falling in tandem with the prime since the Fed began cutting the fed funds rate last summer -- and will continue to fall thanks to Tuesday's rate cut. Home-equity loans -- those with fixed repayment schedules -- have fixed interest rates, so your monthly loan payments will remain unchanged if you have one. But the rates banks are offering on new home-equity loans may fall now, so you could consider refinancing and locking in smaller monthly payments.Q: How will rates on savings accounts, money markets and certificates of deposit be affected?A: Banks pay as little as possible for borrowed money. When the federal funds rates falls, the cost of their inter-bank loans drops, so your bank may reduce the interest it pays you to borrow the money in your savings account or in that CD you're about to buy. That hasn't happened much since the Fed began cutting rates last summer because banks have continued to compete with each other for deposits, but conditions could change. The rates for money-market accounts are tied to the Fed's rates, so you can expect them to fall within the next 35 days or so.
I have listed for you several sites that I believe are very informative and should help you answer any quesion you or others may have. I have also included a link which provides a campaign poster that you can copy and distribute.
Also, please don't forget, as registered voters in Orange and Seminole Counties, you can vote early or by absentee. Listed below are the links for the Orange and Seminole County Supervisor of Elections' office.Orange County Supervisor of Elections: http://www.ocfelections.com/Seminole County Supervisor of Elections: http://www.semcoelections.org/en-us/Frequently Asked Questions: http://www.floridarealtors.org/LegislativeCenter/TopInitiatives/upload/reformfaqs112107.pdfCampaign Poster: http://www.floridarealtors.org/LegislativeCenter/TopInitiatives/upload/voteyeson1.pdfFor more informatin on Amendment 1: http://www.yeson1florida.com/
Nearly twice as many people face losing their homes in Central Florida this year compared with 2006, many of them borrowers struggling to repay adjustable-rate loans or investors unable to sell in a glutted market.Through the first eight months of 2007, more than 11,000 homeowners in a seven-county area in and around Orlando have entered the foreclosure process by defaulting on their mortgage payments -- 85 percent more than all of last year.An Orlando Sentinel analysis of public records gathered by RealtyTrac Inc., which sells foreclosure data online to prospective home buyers, found the problem cuts across differences in income, race, ethnicity and geography:
Osceola County has been hit hardest in the region, with more than triple the number of defaults so far this year compared with all of 2006. But Volusia, Brevard and Polk counties already have more than twice as many defaults as all of last year. And Orange, Lake and Seminole counties have registered increases ranging from 42 percent to 57 percent.Communities with widely divergent income are affected. The ZIP codes with either a high volume or a high concentration of defaults range from east Pine Hills and north Poinciana -- areas with median household incomes in the bottom quarter for Central Florida -- to Waterford Lakes and Celebration, communities whose median incomes fall within the top 5 percent for the region.The complexions of the communities also vary. The most-affected ZIP codes range from Taft and south Poinciana, which are nearly two-thirds Hispanic and black, to Windermere and Davenport, which are more than three-quarters white.Single-family homes dominate the foreclosure rolls, constituting about nine of every 10 defaults and public auctions. Condominiums come in a distant second, with about one in every 20 defaults and auctions.The situation is likely to get even worse, because the data indicate that the number of loan-default notices has jumped sharply in recent months.Experts say the evidence points to both homeowners living beyond their means and investors grasping for quick riches as prime sources of the problem, with foreclosure notices stretching from the new resort-home subdivisions near Walt Disney World in Osceola to the established starter-home neighborhoods of Deltona in Volusia County."There is blame for everybody: builders who overbuilt, Realtors who oversold, lenders who weakened loan criteria and borrowers who stretched too far knowing nothing goes up forever," said Doug Duncan, chief economist for the Mortgage Bankers Association.Florida is one of four states driving the nationwide rise in foreclosures, Duncan said. The others are California, Arizona and Nevada.He attributed the increase in Florida at least partly to investors, noting that home construction far outpaced population growth in the Sunshine State during the five-year housing boom. Now, with home prices dropping, many first-time owners have no equity with which to refinance their mortgages, and investors who had hoped for a quick and profitable resale cannot sell for what they owe, Duncan said.Statewide this year, home lenders started foreclosures on more than 60,000 properties through August -- three-quarters more than during all of 2006, according to the Sentinel analysis of RealtyTrac data. During those same eight months, more than 16,000 Florida properties were put up for sale at public auctions, an increase of about two-thirds from all of last year.How foreclosure happensLenders initiate the foreclosure process in Florida once a homeowner has defaulted on a loan by missing three payments. At that point, the bank asks the court to set a sale date for the property. Once a judge sets the auction date, servers notify the homeowner. The public can bid on the property at auction. If there are no bidders, the lender repossesses the property.Don Casselman of St. Cloud started missing mortgage payments on his home earlier this year, after work injuries and a failed attempt to start a duct-cleaning business. His century-old house weathered Hurricane Charley three years ago with only a chimney brick missing, but when Casselman, saddled with two mortgages, tried to sell it recently, he got no takers.Last month, Minneapolis-based U.S. Bank forced his family to leave."They take people who are not in the best of credit, and they treat us like we're millionaires -- then they try to rip every dollar that you can make from your pocket, and they try to draw blood," said Casselman, who couldn't persuade lenders to refinance his adjustable-rate loans when the $974 monthly payment was about to double. "They try to keep a poor man poor."Osceola hard-hitFast-growing Osceola County, with its production-line subdivisions and service-job wages, is the local epicenter of the mortgage meltdown.
Read More on this topic CLICK HERE
In not a big surprise to anyone, Ben Bernanke today stated that The Fed would cut interest rates further if the economy needs help. The markets rose a bit in response, with the Dow ending up 117 on the day. Of bigger news are rumors of a buyout of struggling Countrywide Financial by Bank of America.
Countrywide has been one of the lenders hardest hit by the recent spate of mortgage defaults and foreclosures nationwide this year, and the stock market has been dragged down with concerns over a potential bankruptcy at Countrywide.
“For the last month, rumors are that Countrywide was going into bankruptcy,” said Ryan Larson, senior trader at Voyageur Asset Management. “Any deal with Bank of America is good news, and the market is looking for even a hint of good news these days.” (read the entire article here).
Both of these tidbits are good news for homebuyers.
1) Lower interest rates at the Fed level will put additional downward pressure on mortgage rates which have sunk back to near historic lows.
2) More importantly, lower rates also reduce the amount that variable rate equity lines go up when they reset from promotional rates, reducing the risk of default for all those loans taken out in the last couple of years that haven’t reset yet. (These would be the other shoe we have been waiting to hear drop). Hopefully, this avoids the proverbial “last straw” that tips the national economy into recession.
3) If Countrywide survives this, either through acquisition or recovery, lenders and Wall Street, whom they resell packaged loans to, will breathe a bit easier about this “unfortunate occurance” passing and money will become cheaper and more freely available, making homes relatively more affordable for buyers, especially those with good credit and down payments of 20% or more.
So, with the Discount Rate currently at 4.25%, and some economists complaining that the Fed should be cutting more aggressively and the rate should be at 3%, I am gaining more respect for Alan Greenspan’s ability to keep the markets under his spell, and give guidance and speeches that left us understanding less what to expect after hearing him than before. Ben has a tough act to follow.
What is a Short Sale?
A short sale is a negotiated settlement. This is when the lender agrees to accept less than the amount owed as a payoff on a loan.
Why would my Lender want to allow a Short Sale to help me?
The reason is simple; a short sale often has a better return on investment to the lender than a foreclosure. The average savings a lender sees from a short sale property compared with a foreclosure property is $14,000. Not only does the lender receive this savings, they are also paid on the loan 6 months earlier than in the foreclosure process. This allows them to collect and cash-out earlier than they would in a foreclosure. Plus, lenders spend a great deal of money with attorneys to complete the foreclosure process. Lenders created the short sale process as a foreclosure alternative for those reasons. The incentives to perform a short sale on your property are in place to motivate you to participate.
When should I start my Short Sale?
It is best to begin a short sale when you realize you can no longer afford the mortgage, so that your property can be marketed properly and you can receive a high offer. The earlier you start, the higher our likelihood of success. We have negotiated short sales that have already gone to foreclosure sale. Contact Us to see if you have enough time.
How long does it take for you to complete the case once we fill out the paperwork?
Typical cases are completed within three months. If you have a foreclosure sale date approaching we can complete it sooner. In the past we have found buyers quickly and have used our relationship with the banks to push back your foreclosure sale date.
What is a Deed in Lieu?
A Deed in Lieu is when the property is deeded back to the lender with the approval of the borrower prior to foreclosure. (This process may still leave a negative impact on the borrower's credit.)
Why should a lien holder accept less than the outstanding debt?
After the lender does an appraisal on the property and discovers that the value is less than the payoff, the lender will decide if it is worth further legal actions and cost. A business decision is made to either continue foreclosure action or accept the short sale offer.
What is a Closing Statement?
A form used at closing that gives an account of the funds received and paid at closing, including the escrow deposits for taxes, hazard insurance, and mortgage insurance.
What is a Deed?
The legal document conveying title to a real property.
What is a Deed of Trust?
A deed of trust is an instrument used in many states in place of a mortgage. Property is transferred to a trustee by the borrower (trustor), in favor of the lender (beneficiary) and reconveyed upon payment in full.
What is Depreciation?
A loss of value in a real property brought about by age, physical deterioration, functional or economic obsolescence.
What is Loss Mitigation?
Loss Mitigation is a process to avoid foreclosure; the lender tries to help a borrower who has been unable to make loan payments and is in danger of defaulting on his or her loan.
What is a Loan Modification?
A mortgage modification is a loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and reduce the monthly payments.
What is a Forbearance Plan?
A forbearance plan is a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.
What is an Offer on a property?
An offer is an indication by a potential buyer of a willingness to purchase a home at a specific price; generally put forth in writing.
How long is a Short Sale process?
Depending on the mortgage company and the state in which the home is located, a short sale process can take between 1-4 months.
What is the difference between a Satisfaction of a Lien vs. a Release?
A satisfaction is a total release from the debt owed. A release is when the lender releases the lien from the property to allow the home to be sold. (The borrower may still be required to repay the balance of the debt.)
How does a foreclosure and a short sale show up on my credit?
Foreclosures show up as FORECLOSURE, and can stay on your record for seven years. Anytime you apply for a new loan or have your credit run, the foreclosure will show up and is usually a required disclosure you must make on most credit and job applications. A short sale is listed as SETTLED DEBT, and is much less harmful to your credit. Please consult a credit company for more information.
What liability do I have when doing a short sale?
In a short sale, it is possible the bank could 1099 you for the difference in what you sell your property for and what you owed. This means the IRS could consider the difference as income, and you could be taxed on that income. The bank might also ask you to pay a portion of the difference back in the form of an unsecured note, which is similar to an I.O.U. It is a negotiation, and we employ tactics to have the bank consider the debt settled.
In a foreclosure, your house is sold at an auction, which typically causes the difference of the total amount you owe and the foreclosure sale price to be much greater. This means you have a higher potential tax liability. Additionally, the bank may come after you for a Deficiency Judgment.
A successful short sale will eliminate a deficiency judgment, minimize your tax liability, and keep the foreclosure off your credit.
What is a Deficiency Judgment?
A Deficiency Judgment can arise when the bank sells the house at foreclosure auction. The bank can sell the house at auction for any amount less than the total amount owing of the debt plus fees. A deficiency judgment can arise if the bank sells the house for less than the mortgage debt. The lender then holds you responsible for the unpaid portion of the loan. For instance, if you owe $100,000 to the mortgage servicer and they see proceeds after the auction of $55,000, the remaining difference of $45,000 can be moved into a judgment against you. This will also appear on your credit report along with the foreclosure. The lender may be allowed to take further legal action such as garnishing wages to pursue payment based on the laws of your state. Some states have restrictions and regulations on deficiency judgments, but unfortunately the majority do not.
Some lenders will choose the deficiency judgment while others may pursue a path to write off the loan. If they choose to write off the loan, the lender may issue a 1099 form which you will have to pay taxes on for the calendar year. Recently, according to an MSNBC news article, President Bush announced plans to do away with this tax penalty. According to the same article, the Democrats said they support this plan. For more information on deficiency judgments and the tax liability you may face based on your current situation, submit your information to one of our analysts for a free consultation, and as always consult your attorney/tax advisor.
Do I need to give you power of attorney?
Read the Full Story Here:
http://www.floridarealtors.org/NewsAndEvents/n4-010808.cfm
Q: My agent told me that to sell my property faster I should offer to pay the closing costs for the buyer. It seems that my agent is aiding the buyer over doing his job and helping me sell. I feel like he should be getting the best sell price for me. Is it common for the buyer to pay closing costs?
A: When you're in a very slow market with plenty of competing homes for sale, you have to differentiate your house from the other houses on the market. One way to do that is to offer a cash bonus to the agent who brings the buyer. Another way is to offer to pay some or all of the closing costs for the buyer.
There are other ways to market your property and make it seem better and different than your competitors. It sounds like your agent has assessed the local real estate marketplace and found that your property isn't as competitive as it should be. Paying the closing costs is one way to boost your profile. But I suggest you might also want to offer a cash bonus to the buyer's agent. That, at least, will ensure that every eligible buyer sees your property.
Now, let's talk about your agent's job. You hired your agent because you supposedly felt that he or she knew more about the real estate market than you did and would put in the time and effort necessary to get it sold.
But you have to help out your agent by pricing your house competitively. Your agent is supposed to get you the "best price" -- but that's the best price in a particular neighborhood at a given point in time.
Right now, we're in the worst seller's market in more than a decade. In fact, some industry observers believe we're in the worst housing market since the 1940s. If you want to sell, you'll have to drop your price or offer up some bonus to the buyer. That's where the closing costs come in.
I just had to show this to you! This is worth you emailing this post to everyone you know! Get your tissues ready! I am warning you that this is so inspirational that you will cry and smile at the same time. If this does not move your heart then your heart needs to be examined!
Remember always and forever that you are capable of much more than you are doing right now. That you must follow your dreams! That you must stretch and reach for your stars. So many people have dreams that lie dormant within their souls. They have given up on them but the dream is still there waiting to break free. We all have dreams. But most of us are afraid to look at them, afraid to share them, afraid they will never come true and so they settle for mediocre lives of day to day routines saying they are completely satisfied. If you are living like this, dare to search deep, deeper than you have ever been in your soul. What is your big dream! I am living my dream but there is always another dream! You do not ever arrive! Life is about growth.
You are capable of Extraordinary things! You were not put on this earth just to be a sheep following the masses. You are more than you imagine yourself to be. You are the greatest miracle ever created and this is your time to take a stand and shine! Reach down and examine your soul, what inspires you? What have you always wanted to do since you were a small child and have not ever done because you are afraid, lack the confidence or bought into the words that you are not good enough to do it?
Life is worth living! You deserve to do what you have always wanted to do? Have you wanted to sing, or paint, or speak or write or become a leader? Well, watch this video and feel this video.
Here is a man who did not settle for a mediocre moment! He seized the moment. But look at the judges before and after. Look at their faces. Check out the responses of the audience, listen to Paul's story, really listen. Look inside yourself and find your 'Paul'. Tell your story of greatness! And please share this post and this video with your loved ones!
Resolve to buy in 2008
Demand for U.S. residential real estate isn't dead, it's just stalled, writes Thomas Kostigen of Marketwatch. He notes that sales of luxury homes have been strong and that "with the value of the U.S. dollar low and real estate prices dropping, it isn't hard to imagine foreigners taking bigger positions in properties here as part of their overall portfolios." Prices and sale volumes are already down 25% in some areas of South Florida, and when overseas buyers see values dropping 50%, they are likely to buy, he says.
"At the first blush of renewed energy, the real estate market will bounce back," he says.
Real-estate strategies for the new year
Steve McLinden of Bankrate.com agrees that home values will "stabilize again," but it will be a rocky ride until they do -- especially for home sellers, he says. He advises that they stay put and "ride this out," he suggests. For sellers whose circumstances demand that they sell in today's soft market, he offers several tips, including:
· Realize that your house is worth only "what someone is willing to pay" and price accordingly. Throw in incentives like a free flat-screen TV, or offer financial assistance like helping the buyer secure financing or covering closing costs.
· Spruce up your house -- don't try to sell "as-is" unless you're willing to sell for a bargain-basement price.
· Look for a seasoned real-estate agent with a high percentage of sold homes.
· Know your local market well.
· Get your listing online.
· Try renting out your house instead of selling or offering a lease-to-own option to renters.
For buyers, he recommends not waiting to pounce on good deals, as the housing market may be "at or near bottom," and using the glut of homes on the market and sellers' anxiousness to sell to bargain more effectively. Make your purchase contract contingent on the home passing inspection, obtaining buyer financing, etc., he says. Do your research on the local market, noting asking and selling prices, and don't overlook "diamonds in the rough" -- residences that aren't cosmetically attractive, but have good bones, he says. He also suggests factoring in a house's potential resale value before making a purchase
