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2009 (2)
2008 (9)
2007 (6)
Tuesday, April 07, 2009

Understanding an REO

With today’s considerably lower Miami Beach real estate prices, the large inventory of foreclosures and bank owned property the question becomes more of what kind of property is worth investing in than anything else.  For purposes of this article, we’ll focus on bank owned properties, also known as REO (real estate owned) property.

A home becomes real estate owned if it doesn’t find a buyer during a property auction.  Since banks aren’t necessarily designed to function as Miami Beach real estate property-owners, they’re usually very eager to get rid of them which can result in considerable discounts.  However since an REO is not the same thing as a foreclosure, lenders can still earn a profit from them so don’t expect as deep of a discount.

A perk of buying a Miami Beach real estate REO is that there’s much less of a risk of dealing with liens, taxes and other unforeseen costs that come with a foreclosure since lenders will take usually deal with them before the sale is closed.  However an REO can still be in bad condition like a foreclosure so it remains important to get a home inspection or check the home out yourself, lenders are not at all obligated to make any repairs on the property but they will allow you to back out if something is seriously wrong.

 
Posted at 10:24:21 AM

Thursday, March 05, 2009

Examining the Interior of a Home

If you’ve been browsing through Miami Beach real estate on the internet, you’ve more than likely come across numerous resources thoroughly explaining how important it is that you carefully consider where the home is located, the values of neighboring homes, etc.  If you’ve done your homework, perhaps it’s time to narrow down your assessment to the home you may soon be living in by giving the interior a meticulous examination.

Perhaps you’d like to start off with the electrical wiring.  Depending on your familiarity, you may wish to leave this to a professional or have it done as part of the home inspection report, should you request one.  Always check this part out regardless of whether the home was built ten years ago or five years ago.

The plumbing is a little easier.  Leakage can often be discovered just by taking a look behind sinks since that’s the spot where mold has the best conditions for accumulating.  A leaky sink could be an indicator of bad pipes and thus plumbing, something you likely want to bring to the appropriate person’s attention before signing off on the dotted line on your Miami Beach real estate purchase.

Not all homes come with an addict but if there is one, you may wish to make it your first stop.  If you want to examine the roof, the attic is the best spot to do so.  If there’s wood that shows wear and tear, this could lead to leakage later on.

 
Posted at 11:00:29 AM

Wednesday, November 26, 2008

Compiling Comparable Sales

With the advances in technology and the widespread availability of the World Wide Web, there is more real estate information available than ever.  Realtors have a number of resources available to help them with their seller and buyer assistance efforts and among these, it’s important to have a good idea of average sales prices in any given neighborhood, officially known as comparable sales and often referred to simply as comps.

Depending on the state where the realtor is doing business, obtaining information on comps can be done by simply heading over to the local courthouse and browsing through public records or reading newspaper listings to get a glimpse of recent sales figures.  However this method means that such services need to actually be provided in order to make use of them.

The most readily available resource is the internet since there are many websites available which can be used for finding comparable sales information while removing the need to do a lot of unnecessary and possibly fruitless legwork.  Keep in mind though that there is no guarantee as to how current this information may be.  A similar approach is to subscribe to service companies which can mail or offer this information via other means besides the internet.  Even so, the same problems of encountering outdated information are still there.

The MLS can be extremely useful and if the person using it is already a licensed realtor then they have access to a wealth of information on multiple listings which is more often than not kept up to date.

At the end of the day however, perhaps the best way to have the sharpest knowledge on comps is to take the self research approach and focus on a certain neighborhood and staying abreast of sales.

 
Posted at 4:43:12 PM

Friday, October 31, 2008

Existing Home Sales Rose Nationally Last Month

While the economy seems bleak with the stock market fluctuating daily and a steady amount of major companies going bankrupt or merging, the real estate market seems to be headed down a different path. Month-after-month the real estate market has slight improvements. Experts think the worst declines in the real estate market have already past while the economy still has a while before it stabilizes.

Recent reports from the National Association of Realtors (NAR) show an increase in existing home sales. Home sales were up 5.5 percent with a total of 5.18 million units sold across the country in the month of September which was higher than the previous month by 1.4 percent. Lead economist for the NAR Lawrence Yun suggests this is part of “a sales turnaround which began in California several months ago…” and “is broadening now to Colarado, Kansas, Minnesota, Missouri and Rhode Island”. 

The cause of this influx of real estate business, according to NAR President Richard F. Gaylord is “low home prices and low interest rates”. The nearly thirty percent discounts in home prices in major cities and rural areas have attracted buyers back to the real estate market in certain areas of the country. Richard F. Gaylord is optimistic about recent gains and thinks the real estate market is on its way to recovery.

Lawrence Yun, while also optimistic about the recovery of the real estate market, warns of “market disruptions” on the road to real estate market recovery. The credit markets have a significant impact on the real estate market and as they experience tough times it may have averse effects on the real estate market. But that aside, the NAR is predicting that the worst for the real estate market is over and that it will recover sooner than the economy itself.

 
Posted at 10:53:28 AM

Friday, September 05, 2008

Environmental Awareness

Global warming, damaging fuel emissions, they’re all more of a concern on people’s minds these days as they become more and more aware of their long term effects on the environment and how important it is to try and incorporate “green practices” into your daily lifestyle whether that means doubling up your recycling efforts or reducing the amount of time you spend sitting idly in traffic.

In real estate, many developers have taken into account how they too can make homes “greener” and many have made use of natural resources to create environmentally friendly condo buildings like Ten Museum Park which uses its glass design to allow tons of natural sunlight to come into the building, thus reducing the need to flip on artificial lights, at least during the day.

The Ten Museum Park condo is only a small part of a bigger picture.  Its home, downtown Miami is recognized not only by its sweeping business and condo skyscrapers, but also the numerous and elaborate light displays that bring the city to new life during the evening.  Obviously all this visual eye candy, while certainly nice to look at does not do the environment any favors.  Thus, to reinforce the message of how important it is to turn off nonessential lights whenever possible, Ten Museum Park and all those other high rises in downtown Miami’s will turn off their own unimportant lights on March 29 in a global effort to encourage environmental awareness.

Regardless of whether you live in a Miami single family home or a luxury condo, the efforts required by you to help out the environment even a little are that simple: turn off lights when you leave a room, drop a plastic water bottle or soda can into a recycling receptacle instead of the trash.  It may seem useless but it’s always good to know you’re doing your part in making the world you share with everyone else that much more pleasant.
hat require little to no repairs.  Don’t get caught up in the fierce competition without having a limit of how far you’re willing to bid, always remember the winning bid is only a component of the other fees that follow.  As you learn the ropes, you’ll eventually get a feel for how real estate auctions work and who knows, if you become good at it, they may become your preferred method of buying Florida real estate.
 

 
Posted at 2:50:44 PM

Tuesday, June 24, 2008

International Florida Real Estate Assistance

To some degree the foreclosure situation has transitioned from how to prevent foreclosures to how to get rid of the hundreds of foreclosure properties already available on the market.  South Florida homes are among the highest in foreclosure filings, contributing to an already overcrowded housing glut.  The answer to appeasing the situation may lie beyond the U.S. borders.

Strategic Real Estate Advisors is an asset management firm situated in London that plans to raise $1 billion dollars in order to purchase luxury property like Miami Beach oceanfront condos currently owned and being sold by the banks through the Florida Prime Residential Opportunity Fund.

It’s interesting to note that not only is Strategic Real Estate Advisors located outside of the United States, the majority of the funds which will go towards the purchase of all these luxury properties will be coming from well to do investors and funds located throughout Europe and the Middle East.  Recent reports have consistently pointed towards international investors and buyers as integral towards maintaining interest in Florida property investments and sales.

Critics may see Strategic Real Estate Advisors’ initiative as ineffective since they won’t be making a profit.  The firm actually plans to buy and then hold onto these properties for next six years or so, a move that may cost considerable funds as the market fluctuates but which should bring considerable profit by the time it decides to sell them off as a residential property investment or something else entirely.

Within a seven year timeframe home values and the real estate market in general will certainly be in much better shape and buying activity will likely have increased so in a sense Strategic Real Estate Advisors are providing a worthwhile short and long term solution.  Is this just another flash in the pan or is it a viable strategy?

 
Posted at 12:30:39 PM

Wednesday, May 28, 2008

Homes Are Selling Again

Amidst the doom and gloom of housing market reports comes a recent report suggesting the real estate market is showing strong signs of life. In these tumultuous times it's easy for people to think that the economy is headed for recession or even a crash. Despite current market reports that suggest we are beginning to see slow signs of recovery there are still those who would rather build a bunker under their homes to prepare for an apocalypse then invest in real estate.

The last half dozen months have not seen much progress in the way of homes sold. The highest percentage of drop in home sales occurred during that period leading many to believe that the market would eventually begin to recover—and it did. In April homes sales increased slightly, which wasn't enough to ease all tensions in the housing market but enough to show that the market is on the right track to recovery. 

Property value also rose slightly across the nation showing encouraging signs of the real estate market's enduring strength. Though the median home value is comparably low to just four years ago the fact that property value is stabilizing across the country is a sign that things will return to normalcy sooner than later. When property values experience steady rise it will be more practical for people to sell homes and to convince investors to buy homes. 

So, how should one react to recent reports of trends reversing in real estate? Real estate transactions rising are a sign that demand for property is still alive. Prices are almost at a low enough level that many people sitting on the fence on whether or not to invest will soon become active. As sales increase, so will home values and soon real estate investments will become stable enough to return to business as usual.

 
Posted at 10:09:56 AM

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Updated: Friday, May 26, 2017


4 Common Homeowner Association Security Errors to Avoid

Homeowners associations HOAs are more popular than ever. In 2015, 66.7 million Americans were members of a homeowners association, equivalent to 20 percent of the population, a Community Associations Institute study found. Unfortunately, the growth of homeowners associations has made them a more attractive target for burglars. Why? Seventy percent of HOAs are managed by elected volunteers, says HOA-USA.com, meaning that most HOA managers are amateurs at security. Here are four of the most common security mistakes homeowners associations make, and some tips on how to avoid them.

Failing to Conduct a Security Review

Many HOAs start off on the wrong foot by failing to conduct a security review, says SecurityNet.com. Without taking this basic step, you donrsquo;t know what vulnerabilities you have, so itrsquo;s impossible to take adequate counter-measures.

A thorough security review should begin with considering where you live mdash; different locations have different needs. For example, if your HOA occupies a high-rise or is spread out over a large area, you should probably have a professional conduct your review. A full review should be conducted at least every three years, but once a year is better. If you live in a high-crime area, you may need to do it as often as every six months, says HOALeader.com. Your HOArsquo;s security company will often give you a free review if theyrsquo;re your current provider.

Taking the Wrong Measures

Failing to conduct a security review can easily lead to taking the wrong security measures. After a high-profile crime incident, a common reaction is to panic and take measures that calm resident fears but donrsquo;t necessarily solve the problem. For instance, hiring a guard is a common response, but a guard only provides security in the particular area theyrsquo;re covering, which may leave other vulnerabilities unsecured.

A good rule of thumb is to use guards for situations where a human response is required to solve a security issue and to deploy technology where a human response is not required. When deploying technology, make sure to choose equipment thatrsquo;s up to the task. For instance, a cheap security camera may not be effective at capturing suspectsrsquo; identifying features, such as hair and eye color in low lighting. Be sure to choose a high-tech HD security camera system that can capture high-resolution detail even in low lighting.

Failing to Remove Landscaping Concealment Opportunities

Burglars depend on concealment, and allowing them opportunities to hide is another common mistake. Most homeowners associations remember to provide lighting, which is an important deterrent, but they often forget to remove bushes, hedges and low-hanging foliage that criminals can use for concealment, says Spectrum Association Management.

Make your landscaping less friendly to burglars by planting thorny shrub barriers at your HOArsquo;s main entrance and exit points, including the perimeters of parking lots and boundaries between neighboring communities. Keep shrubs narrow and low, and keep tree canopies trimmed. Flatten any vegetation that obstructs views of your HOArsquo;s parking lot.

Forgetting to Conduct Periodic Maintenance Checks

The best security equipment wonrsquo;t help you if itrsquo;s not working. Failing to establish a routine maintenance check procedure is another mistake HOAs often make. Assign responsibility for periodic maintenance checks to your HOA manager. Schedule regular checks of gates, lights, motion detectors, alarms, cameras, video recorders and any other security equipment. Lastly, its important to create an accountability mechanism to make sure these checks are conducted on schedule.


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How To Buy A House Without Going House Poor

How much house can you really afford? Is it the amount the bank tells you when preapproving your loan? Thats what most people go by, oftentimes spending up to their max approval amount to get as much house as possible - or to be able to afford something at all in tight markets.

The debt-to-income DTI ratio, along with your credit score, is what is used by lenders to determine your loan approval and amount. The Consumer Financial Protection Bureaus CFPB efforts to keep this number low notwithstanding, it has been rising to levels that are concerning to industry insiders who fear a widespread wave of homebuyers overextending themselves and becoming unable to support their mortgage payment and other obligations.

The CFPBs Qualified Mortgage QM Rule went into effect in 2014, intended to curb overleveraging by capping a borrowers debt-to-income DTI ratio at 43 percent. "This means that a borrowers total debt expense including total mortgage payment does not exceed 43 of their gross income before taxes are withheld," said the National Association of REALTORS NAR. The rub: Many loans Fannie Mae, Freddie Mac, and the Federal Housing Administration FHA, are exempt from the 43 percent DTI limit.

The impact higher DTIs are having on the market is clear; a new WalletHub report "analyzed data from 2,533 U.S. cities and ranked all of them on the basis of a lsquo;WalletHub Home Overleverage Score," said 24/7 Wall St, finding that, in many cities, overleveraging is becoming the norm. "The score was derived from a citys median mortgage debt, median house value, median income, mortgage debt-to-income ratio and mortgage debt-to-house value ratio." The top 10 are all well over the 43 percent threshold, with the top three - San Luis Obispo, California at 59.62; Williamsburg, Virginia at 58.76; and Brooksville, Florida at 57.44 pushing 60 percent.

Getting in over your head with a house, either from the get-go when first purchasing, or later on with a home equity line that increases your monthly payments, is a dangerous scenario for homeowners and for the market in general. So how do you keep yourself in check to make sure the house youre buying is one you can actually afford and that youre not in danger of becoming house poor?

Do your own calculations

The bank may be telling you that a 350,000 house is within your means, but are you OK with the monthly payment attached to that price? No one is more familiar with your spending habits than you. Are you really going to be able to cut 500 a month in discretionary spending eating out, movies, clothes shopping, morning lattes to comfortably make your new house payment?

Dont forget about the extra expenses

If youre buying your first home, you may not be estimating your new monthly expenses accurately. Did you include the HOA fee, if the community in which youre looking to buy has one? What about any special assessments, if there are any? And private mortgage insurance PMI if you have an FHA loan and are putting less than 20 percent down on your home. That couple hundred dollars could put you over the top.

Have you also considered your utilities? You may not be accustomed to paying gas and electricity and water and trash if youve been living in an apartment. There could also be an increase in the cost of electricity if you have more square footage to heat and cool.


thebalance.com

Watch out for HELOCS

A home equity line of credit HELOC can seem harmless. I mean, its your money, right? And youre using it improve your home, which will only raise its value, right? But what seems like a great idea can also get you in trouble when you tap your home equity. You may be calculating the additional payment for now, but what happens later?

Thats the conundrum thousands are facing right now, as "HELOCs are resetting higher rates and overleveraging homeowners," said Inman. "An analysis bynbsp;Black Knight Financialnbsp;shows that 1.5 million home equity lines of credit will see interest-only draw periods end this year with outstanding unpaid principal balances that average 62,500 per HELOC. The data reveals that average borrowers whose lines of credit reset will face an additional cost of 250 per month, more than double the current average payment."

Keep an open mind

Finding a house you can afford may be challenging - especially for first-time buyers and those in competitive markets that push the affordability index. If you have tight parameters for your house hunt that are making it hard to find something within your budget, consider:

  • Extending your area search. You may not be aware of but your Realtor probably is adjacent cities or communities that offer a similar life>
  • Buying a condo or townhome instead of a single-family home. Some buyers have an automatic aversion to condos and townhomes because they dont like the idea of living attached. But your real estate agent may know of properties that are end units, that have private yards, and that are two-story units with no one above or below you. It may be that this is your best bet for homeownership you can really afford at this point, and you may find you like it far more than you expected - especially because so many of these communities come with great amenities like a pool and gym, plus front-yard landscaping that is taken care of, saving you time and money.
  • Looking at fixer-uppers. A little-known loan called an FHA 203k mortgage may be your "in" to a home you can afford and make your own. The bonus is that its also great for borrowers who may not have the credit and/or down payment to qualify for conventional loans. "The FHA requires a credit score of at least 580 if you want to make the minimum down payment; if you have 10 down, your score can be as low as 500," said Interest.com. "You can borrow more than the home is worth, as long as the repairs will increase its appraised value. The most you can borrow is 110 of what an appraiser estimates it will be worth after renovations, or the cost of the home plus the estimated renovation cost, whichever is less, minus your down payment. The minimum down payment on an FHA loan is 3.5."

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Landscaping to Improve Resale: 9 Projects That Fit Within Your Desired Price Point

As the weather starts to heat up each Spring, so too does the housing market. Spring is an optimal time to get your house ready to sell. The first thing that potential buyers will see of your home is the landscaping, so make a great first impression with beautiful outdoor spaces. An investment in landscaping can help sell your home faster and for more money. There are simple projects at every price point that can help you achieve great curb-appeal.

Inexpensive

1. Keep the Lawn Well-Manicured

The easiest and most obvious landscape project when hoping to sell your home is to get your lawn looking its best. Spring is a great season to try to sell because your lawn is helped by Mother Nature. Wet, mild Spring weather will help the lawn stay green with less effort. To show off that green lawn, make sure to mow and edge it often.

2. Keep Your Yard Weed Free

It may not cost much, but it will require some time and effort to control the weeds around your property. Spray or pull weeds in flowerbeds, on property borders, and along the driveway. A weed-free yard will help potential buyers feel confident that the home is well cared for, which can create an overall positive impression of your home.

3. Add Flower Pots Near Your Front Door

A splash of color in the yard is a great way to highlight your home. If you are looking to sell quickly, it might be too late to do major yard improvements since new flowers and plants will not have adequate time to grow and mature, but a few beautiful pots of flowers strategically placed near your front door can have a similar effect without requiring a lot of time and maintenance.

Moderate

4. Add Outdoor lighting

Outdoor lighting has become a trendy feature that buyers have embraced. Lighting can add interest to your yard, highlight areas of beautiful landscaping, and make your home stand out at all times of the day. Solar lights are particularly easy to use because they will recharge during the day and automatically come on in the evening to illuminate your home.

5. Install Curbing/Edging

If you have a little extra money to spend, consider adding curbing or edging around your yard. It helps the landscaping appear crisp and clean, and makes the lawn easier to mow and trim. Savvy buyers will appreciate the ease of maintenance and the defined spaces that curbing creates.

6. Hire a Lawn or Pest Control Company

It is important when selling a home to make sure that their arent any obvious problems. If your lawn is dead or patchy or you have pest problems like spiders, mice, etc, you will need to get those under control. Some of these projects are beyond the scope of what an individual without training can quickly achieve and should be left to professionals. Lawn care companies and exterminators can assess the issues you may have and recommend treatments. This may even be limited to a one time visit that can quickly improve the chances of selling your home.

High-End

7. Create Outdoor Living Areas

If you have money to invest in your home, high-end landscaping projects can increase your bottom-line and draw attention from buyers looking for upgrades. Extra living area outside of your home is a huge attention grabber that attracts buyers. This could range from simple patios staged with outdoor furniture, to screened in porches, to full outdoor kitchen areas. Depending on your location, these upgrades may or may not be worth the investment, so do your research before proceeding.

8. Replace or Update Fencing

Fences provide a safe place for children and pets and also give homeowners a feeling of privacy, so they are highly sought after. Fencing is also one of the first things people see when coming to your home. If your fence is an eyesore, it will be worth it to make the effort to have it replaced or fixed up. A new fence is quite an investment, so first determine if your fence can be spruced up with some nails and a new coat of paint.

9. Hire a Professional Landscaper

If you are serious about creating a stunning yard, a professional landscaper can add massive amounts of curb appeal to make your home one of a kind. A landscaper can help you add impressive things like paving stone walkways, decorative retaining walls, and water features. Outdoor improvements definitely increase house values, but it is always good to know what the market will support in your area before moving forward.

No matter how much money you have to invest in your homes landscaping, there are projects you can do this Spring to improve your homes curb appeal and get it noticed by buyers.
> Full Story



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