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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, September 25, 2020


When Is “For Sale By Owner” The Right Option?

When you put your home on the market, one of the first decisions youll make is whether to hire an agent to represent the property or to go the for sale by owner route.

While a portion of homeowners initially goes into selling their home on their own, they end up ultimately hiring an agent.

Some of the big reasons homeowners decide to try and sell their home on their own are because they think it will save them money and time. Some homeowners also feel like they understand their home better than a real estate agent will.

So when is it the right option to try and sell your home on your own without an agent?

The Basics of For Sale By Owner FSBO

FSBO means that as a homeowner, you list your home for sale without a real estate agent, making you responsible for the process from start-to-finish. Some of the things youll have to do include pricing and listing your home, staging it, negotiating, and closing.

The standard real estate commission fee is around 6, and trying to save that is one of the primary motivators for people to go the FSBO route.

Along with avoiding the listing commission, there are other benefits of FSBO.

Youll have full control over the price at which you list your home.
You can schedule your open houses and showings, so youre not stuck at the last minute trying to leave the house.
Youre going to be motivated to get the highest possible amount for your home.
You know not just your home but also your neighborhood best.

What Are the Downsides of FSBO?

Some of the potential downsides of trying to sell your home on your own, aside from the commission youll pay, include:

A real estate agent understands how to properly price a home to sell based on fair market value. You may be emotionally attached to your home, which can be problematic. You may think your home is worth more than it is, or you might be offended if someone criticizes your home. A real estate agent doesnt have that emotional connection so they can be objective.
Real estate agents have access to local listing portals, the MLS, networks, and other agents.
Some agents wont show a home thats FSBO.
Real estate agents understand how to efficiently manage the procedural aspects of selling a home, such as the paperwork.

When Does It Make Sense To Sell Your Own Home?

In many circumstances, working with an experienced, professional real estate agent is best.

There are a few cases where it can make sense to opt for FSBO, however.

If you already have a qualified buyer whos interested in your home before it goes on the market, you may not need a listing agent. One of the big roles of an agent is marketing, and if you have someone who plans to buy your home, you wont need an agents expertise in that area. It is important to separate interested buyers from qualified buyers in this case.
Is there a lot of demand in your market? If youre in a high-growth market and inventory is limited, you may be able to sell your home quickly and for top-dollar without an agent.
Can you take your time? If youre in no real hurry to sell your house and you can wait, then you might be able to sell it on your own successfully.

If you do the research and think FSBO is best for you, remember to price it accordingly, based on market research rather than emotions.

Create a listing thats high-quality with professional photographs and an optimized description.

Finally, if you arent going to have a real estate agent, you should work with an experienced real estate attorney early on to protect you and help guide you through the process.


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Ask the HOA Expert: Counting Ballots, Long-Standing Policies & Club House Remodels

Question: What is the most efficient way to count ballots at an Annual Meeting? Our group has a large membership and vote counting bogs down the meeting.

Answer: With many ballots to count, preparation is essential. The ballots should be preprinted with names of all candidates and a checkbox next to each. A couple of blanks should be left for nominations from the floor at the meeting. After the ballots have been completed, they should be collected by the election tellers none of whom should be running for election and divided into equal parts.

Using several teams of two, one reading the results and the other tallying, ballots can be counted simultaneously by the teams and the final tallies from each team can then be added together for the final results. A Head Teller should check the math, circle the names of the winners and hand the results to the president to announce. Using this technique should allow the process to be completed in 5-10 minutes during which other business can be handled. The counted ballots should then be batched and stapled to the tally sheets and retained in the annual meeting file should questions about the election arise.

Question: Can the board cite a "long-standing policy" to prohibit construction of an enclosed patio beyond a side privacy wall in my own back yard, although there is no written rule or regulation in the documents which would prohibit that?

Answer: In general, it is the HOAs right to dictate the exterior appearance of the homes. So, as a rule, an owner should always get approval of exterior modifications before proceeding. Even though the city may issue a permit, the HOA may have restrictions that override local zoning and building codes.

If the board has enacted broader architectural design restrictions than are found in the governing documents, these need to be documented in writing. It is not reasonable to expect owners to know these things by ESP. Also, such restrictions need to be reasonable. If your proposed enclosure is not visible from the street, what difference should it make to the board or the neighbors? Based on your description, this restriction does not seem reasonable and unless the board can produce an Architectural Design Policy that specifically prohibits it and the reasons for it, you should not be restrained from moving forward.

Question: Is it a problem if we are remodeling our clubhouse and a board member charges the materials to her personal credit card?

Answer: As a rule, HOA expenses should be billed or charged directly to the HOA so the record is clear about what was bought and why. It will also keep the record straight for warranties that are included with the purchases.

For more innovative homeowner association management strategies, subscribe to www.Regenesis.net.


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What Should Your Credit Score Be to Buy a House?

What credit score do you need to get a home loan? While specifically, it can vary, there are certain things you should know before you apply for a mortgage to ensure youve put yourself in the best possible financial position.

Factors Impacting Your Credit Score

Before you explore specific loans, pull your credit report. You can look for errors that may need to be corrected and get a better idea of what you can do to improve it.

The factors that play a role in your credit score include:

Payment history: This is the main factor of a credit score, making up about 35 of your score. Your payment history is simply whether you pay your bills on time or not. Any creditors you have will report your activity every month to major credit bureaus. One or two late payments probably wont have a big impact, but a pattern of late payments will.
Debt: The amount of debt you owe across the board makes up around 30 of your score. Debt is also called your credit utilization ratio, and it looks at how much debt youre using versus whats available to you.
Credit age: Making up around 15 of your score is credit age. The longer you have accounts on your credit history the better, as long as theyre in good standing. If you have old accounts, keep them open if possible because this will affect your average credit age.

Other factors that are >

Your credit score is important not only because it determines whether you get financing for a home, but also the interest rate youre offered.

The following are typical ranges for credit scores:

Anything below 580 is considered very poor A fair score is one ranging from 580 to 669
A good credit score might range from 670 to 739
An excellent score is between 740 and 799
Anything 800 and above is considered exceptional

Conventional Loans

If youre applying for a conventional loan from a bank or a similar type of lender, you will usually need at least a 620 to qualify.

Conventional home loans follow Freddie Mac and Fannie Maes standards.

While 620 is the minimum, having that score doesnt mean youll be approved for a home loan. An excellent score is usually considered 740 and above, and with an excellent score youll likely not only qualify for a conventional home loan but youll also get a competitive interest rate and you may have a lower down payment requirement.

VA Loans

The U.S. Department of Veterans Affairs insures VA loans. Theyre available to certain servicemembers and veterans of the U.S. Military, as well as spouses of military members who died while on active duty.

The minimum credit score for a VA loan is likely to be around 620, although this can vary, and theres no set minimum score.

FHA Loans

Insured by the Federal Housing Administration, FHA loans are less risky for lenders so you may find its easier to qualify. The minimum score for an FHA loan with a down payment of 3.5 is 580. If youre paying at least 10 for your down payment, theres no minimum required credit score.

If you have an FHA loan originated by a private lender, each will have its own minimum requirement for credit scores.

Other Factors Lenders Consider

Yes, your credit score determines whether your quality for a home loan and also what your interest rate will be, but other factors are >

Lenders will look at your income to ensure that you can afford your mortgage payments if you get a loan. Theyll also look at your existing debt in comparison to your income.

The more of a down payment you can make, the more likely youll qualify for a lower interest rate.

Lenders also want to know if you have savings if your income ends for a period of time. You should be able to show that you have enough money saved to cover at least two months of your mortgage payments.

Finally, employment history is >

If you have a low credit score, you could potentially still get a loan, but youre a riskier borrower.nbsp; Youll have to offset that risk, which means youll have to have a larger down payment, and youre also going to pay a higher interest rate.


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