My New Outside Blog

It is like putting the wheels before the wheel-barrow. The simple rule is "have money, go shopping". If one does not have the cash in hand, or for that matter a bank pre-approval, one should not go shopping.

Also, in my "neck of the woods" Dade and Broward in SE Florida coast, this is often a pre-requisite to obtain showing instructions. And, rightfully so.

To all buyers there, first things first: if you are obtaining financing, you must complete this step first. It determines how much you can borrow and that determines what  home you may purchase.

For immediate assistance, please contact me: call 786-412.8510, or email: kate@hollywood-beach-real-estate.com

It is amazing how the social media has evolved from an online universal sort of "Hyde Park" kind of a corner to the fabric around us in our little universal corner, allowing everyone to have their "say" on whatever topic...

And, just like the Internet in its early days: a little disorganized, a little design- poor yet - intent pure, went to insanely crazy, and then to more organized and streamlined, virtually indispensable and vital element of our existence.

Now, the social media is going through its phases. This post couldn't be more timely.

And, more on low ball offers; here is what I try to find out from those buyers who seem to have absolutely unrealistic expectations in regards to actual selling price:

"Is your idea of finding a good deal, by making a low ball offer hoping to find this mythical desperate Seller, existing only in the imagination of the media and all these real estate "experts"?  Or, is it to find an aggressively priced property, which a blind man will spot as a "good deal", because it is 50% of its true market value?"

I also send them all recently closed sales which very clearly show that the Sellers actually have gotten the memo regarding realsitic pricing a long time ago, and as a result- properties are selling for asking or just a little below asking  price.

Hollywood, Florida welcomes a FENCING CLUB!

I ran into a client of mine, who is a prominent Fencing Coach. She was very excited with the opening of her new Fencing Club and School right in Down Town Hollywood, Florida.

Fencing is well known sport in Europe, but not quite so in the US. The history of fencing parallels the evolution of civilization, back from the days of ancient Egypt and Rome, to the barbaric Dark Ages, to the fast and elegant Renaissance, up to the modern, increasingly popular fencing of today. So, when I asked her what prompted her to start this Fencing Club, here's what she said: "I opened a club in Hollywood, Florida, with the intent to popularize this amazing sport to the US audiences. With the ever so increasing fitness awareness, the Americans are piling at the gyms burning those calories, getting fit and healthy. But, something is not quite there…The mind engaging and fun element, as well as the thrill and the satisfaction of competing and winning, completing the equation of "well-being", is not there. True, we can take up skiing, tennis, basketball etc…, but then comes the age element. We might be too old to achieve any results. And, here comes fencing: where anyone can start, learn, train, compete and achieve. It is not only fun, but conditions the body, burns calories, improves coordination, balance, but also greatly improves mental focus, agility, develops tactics and planning, and most importantly, everybody plays! From 5 years old to 105, fun, good health and spirit for all."

"Sounds good to me", I said and so I went to check out the new Fencing Club in Hollywood, Florida . It has been a while I had so much fun. As I was watching fencers in their sharp outfits, reminiscent of the Musketeers, yet somehow very cosmic and futuristic, I was amazed to see how many people actually packed up the hall!

For those of you who would like to learn more, here is her website: http://www.ilovefencing.com Hollywood Florida Fencing Club.The club is located in 2000 Harrison #7, Hollywood, FL 33020. I sure am excited that she brought this amazing sport Fencing, to us in Hollywood, Florida.

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM
ZipRealty, Inc. Licensed in FL
kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com
http://www.hollywood-beach-real-estate.com; blog: http://4realestate.wordpress.com
http://www.linkedin.com/in/miamirealtorkatesmith
Toll Free: 1.800 CALL ZIP x8365
Cell: 786.412.8510
Fax: 1.866.287.1791
My Profile: http://www.ziprealty.com/agent/katsmith

New Incentive for Buyers Purchasing Fannie Mae REO

I have great news to share with you! Read on:

New Incentive for Buyers Purchasing Fannie Mae REO

Fannie Mae is offering an incentive for buyers purchasing and closing on a Fannie Mae REO between January 28 and April 30, 2010. The incentive's goals are to encourage buyers to purchase REO properties and increase the sales volumes to help manage the higher levels of inventory anticipated this year. The incentive is a total of 3.5% of the final selling price comprised of:

 ·         Closing costs

·         The purchase of new Whirlpool^® appliances by Fannie Mae

·         A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%

Since lenders may impose their own limitations on the use of the 3.5% incentive, buyers should consult their lenders for guidance.

To be eligible for this incentive: 

·         Offers must be accepted on or after January 28, 2010

·         Property sales must close before May 1, 2010

·         Buyers must be owner-occupants, investors are excluded 

Please call or email me for more information and forms.

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM 

786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com

http://www.hollywood-beach-real-estate.com; BLOG: http://4realestate.wordpress.com

http://www.linkedin.com/in/miamirealtorkatesmith

Real Estate Latest: Good News, Bad News?

First Time Home-Buyers  Should Not Wait Another Month!

Although the mortgage rates are at the lowest point in history, there are drastic changes in FHA Lending pending approval. If approved as anticipated, even fewer people would qualify for a mortgage.

The Good News: Year-end 2009: Fla. home sales rise

Existing sales up 31% compared to end of '08; existing condo sales up 47% in year-to-year comparison. National sales up 4.9%. Read more.

More Good News: Rates on 30-year home loans fall to 4.99%

In a third straight week for declines, the 30-year mortgage rate again dropped below 5%. Read more.

The Bad News: Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
3. Reduce allowable seller concessions from 6% to 3%

And, More Bad News:

The market is rapidly adjusting, as I am certain that those of you who have been watching and waiting, you have seen nice 3-4 bedroom homes in nice school districts (West Miramar, Pembroke Pines, Davie, Cooper City, Weston, Plantation) for less than 250,000. Yes, it was back then- several months ago. I have been monitoring this market segment closely during the months of November, December last year and January this year, for a few desperate clients of mine, who back then decided to wait. Now, their choices are very limited... and it is a bidding war.

If you are one of those buyers, shopping at this market level and you have been pre-approved for FHA financing, the clock is ticking. And, the rewards are there today: lowest rates, tax credit and still all benefits of the FHA!

I look forward to assisting you.

Cordially,

Kate

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM

786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com

http://www.hollywood-beach-real-estate.com; BLOG: http://4realestate.wordpress.com

http://www.linkedin.com/in/miamirealtorkatesmith

Myths And Facts About Foreclosures: Single Family Residences In SE Florida Market

If you are of those people, who at the end of the day want to say "I'm glad I did" instead of "I wish I had", read on. I promise you, you will find it essential or at least helpful:

1.    I hear there are so many foreclosures on the beach... Myth!

2.    I hear that there are a lot of empty units in the new buildings on the beach and we can buy them for pennies on the dollar...Myth!

3.    I hear that there are a lot of foreclosures; really expensive homes...Myth!

4.    I am going to wait; I hear the market is still going down...Myth!

5.    I am looking for 3-4 bedroom home, garage, newer, in a nice school district, my budget is $220,000- yes, was a possibility 6 months ago.

 

Well, as you know me, I spent hours researching. Sending you the FACTS:

I.             Homes for sale Broward: 4172 total homes; total sold in 2009: 8512; REO's Today: 299; Sold REO's in 2009: total 3411

1.    Price range: under $200,000: 550 total homes

a)    REO-S ( i.e. Foreclosures): 96 ; Sold REO's in 2009, total 1174= 31% of all foreclosures;

b)    Regular sales: (current): 550; sold: 2010

2.    Price range: between $201,000- $400,000- 1398 total homes;

a)    Foreclosures: 120; Sold REO's in 2009: total 998

b)    Regular sales: (current): 1398; sold: 3588

3.    Price range: between $401,000- $700,000- 822 total homes

•a)    Foreclosures: 18; Sold REO's in 2009: total 135 (less than 4% of all cat. sales)

•b)    Regular sales: (current): 822; sold: 3588

4.    Price range: between $701,000- $1,000,000- 470 total homes

a)     Foreclosures: 4; Sold REO's in 2009: total 25 (less than 0.01% of all foreclosures)

b)  Regular sales: (current): 470; sold: 276

5.    Price range: above $1,000,000- 816 total units

a) Foreclosures: 2; Sold REO's in 2009: total 7

b) Regular sales: (current): 816; sold: 276

II.           Homes for sale Dade: 4628 total homes, closed sales 2009: 6937; REO's total 372; Sold REO's in 2009: total 3931

1.    Price range: under $200,000: 620 total homes

a) Foreclosures: 180; Sold REO's in 2009: total 1829

b) Regular sales: (current): 620; sold: 2317

2.    Price range: between $201,000- $400,000- 1363 total homes;

a) Foreclosures: 81 (only 6% of all homes); Sold REO's in 2009: total 903

b) Regular sales: (current): 1363; sold: 2137, the fastest absorption rate;

3.    Price range: between - $401,000- $700,000- 808 total homes

a) Foreclosures: 11; Sold REO's in 2009: total 142

b) Regular sales: (current): 808; sold: 754

4.    Price range: between $701,000- $1,000,000- 434 total homes;

a) Foreclosures: 3; Sold REO's in 2009: total 10

b) Regular sales: (current): 434; sold: 250;

5.    Price range: above $1,000,000- 1239 total homes

a) Foreclosures: 5 (only 0.4% of all); Sold REO's in 2009: total 5

b) Regular sales: (current): 1239; sold: 387

Now, that you have seen the OFFICIAL figures, you can draw the following conclusions:

1. It is evident that the lowest tiers (pricing 100-400,000) are moving towards very aggressive seller's market, please observe the absorption rates.
2. It is evident that the luxury market is barely affected by the economic down turn; there are hardly ever any foreclosures. So, I am real curious where are all these buyers (who are convinced that there's tons of foreclosures), getting their information?

Our reports further show, that close to 95% of the foreclosures are selling at asking or above asking price.  They go in most cases to cash buyers, since there is a real crowd bidding for them. So, when you find just that sweet deal be wise instead of being a "wise guy"!

As it has always been, housing is our bedrock investment. It will continue to generate a nest egg for us long after we've turned off the television and forgotten what was said in the sensation-seeking story of the moment.

I hope, you will find these points helpful. For those of you who still do not own your home or, that great investment property you have been dreaming about, please call me now. Join those people, who at the end of the day can say "I'm glad I did" instead of "I wish I had".

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM

786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com

http://www.hollywood-beach-real-estate.com; BLOG: http://4realestate.wordpress.com

http://www.linkedin.com/in/miamirealtorkatesmith

PS: Stay tuned and look for my next report on how to buy foreclosures.

SE Florida Condos, Beachfront and Waterfront

What is the reality of the market conditions, price and inventory the condo market for Miami Beach, Sunny Isles, Hollywood, Hallandale, Fort Lauderdale?

In general, the lowest prices you can expect to see on the beach (non-beachfront, waterfront or walking distance to the beach) in SE Dade and Broward would be about $200,000 for 1-2 bedroom units. When you see listings below the typical market level, these listings are one of the following and are best avoided:

•1.    Co-op;

•2.    Condo-Hotel;

•3.    Cabana;

•4.    Timeshare;

•5.    Short Sale;

•6.    Building with high HOA's or in bad financial shape.

•7.    Building with many restrictions.

Furthermore, if you are on the market for a min. 2-bedroom oceanfront unit, the realistic expectation would be a min. $400,000 (Miami Beach), and $350,000 (Hollywood, Hallandale). It is always important to consider solid and well maintained buildings, with reasonable HOA fees (min. expected $500 monthly, for an older building and $650 and up, for newer buildings).

Property taxes are to be re-assessed based on the new purchase, approximately, 2% of purchase price. For more details, visit:

http://www.miamidade.gov/pa/tax_estimator/TaxEstimator.asp

http://www.bcpa.net/homestead.asp

And, if you are still waiting for the market to continue to drop, you are in for a big surprise and you have actually missed this moment.

Not only SE Florida real estate is not expected to drop further, but has started to adjust drastically some time ago. For SE Florida, the sales volume started to increase in the first quarter of last year, and the prices started to go up in the middle of last year. For more details, see our latest stats:

Existing-Home Sales Post Another Big Gain
Existing-home sales climbed 7.4 percent in November to a seasonally adjusted annual rate of 6.54 million units from 6.09 million in October, and they were 44.1 percent higher than the 4.54 million units sold in November 2008, NAR reported this morning. This is the highest sales level since February 2007 when it was 6.55 million.

Lawrence Yun, NAR chief economist, attributes much of the sales increase to the expansion of the homebuyer tax credit. "This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead. We expect buying activity to ramp up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010."

© 2010 Florida Realtors®

If you are a Buyer, serious about getting an amazing steal, before you have missed entirely on this market, you need a pro, who knows the market and who can negotiate a good deal between two sensible and serious sides.

I commit to helping you with my market knowledge to the best of my ability. I will bring to you and show you the best deals out there, in buildings where I am confident in the product and its future resale. If you are ready, I am the right person for you.

Cordially,

Kate Smith, Realtor®, ABR, CRS, E-Pro, TRC, LHM

786.412.8510 kate@hollywood-beach-real-estate.com; katsmith@ziprealty.com

http://www.hollywood-beach-real-estate.com; BLOG: http://4realestate.wordpress.com

http://www.linkedin.com/in/miamirealtorkatesmith