The topic was about the current state of the national real estate market and what is likely to happen between now and the Presidential elections next year. The short answer is—nothing! The longer answer is that neither party wants to tackle any housing issues because of the upcoming elections. The problems contributing to this prognosis are:

1) The down payment and qualifying guidelines.

According to Gloria Frazier, “the problem is that their definition of a qualified buyer is way too high for the times we are in.” Lenders have basically flip-flopped. During the great run-up of real estate prices, requiring people to make higher down payments made sense. That is when lenders were approving almost anybody, and the down payment was coming from the increase in the value of the property from construction start to finish. “VERY DANGEROUS” says Frazier. Now, when buying a home can cost less than rent, is a market where guidelines could be eased a bit, and adjusted later when prices start going up again.

2) Politicians.

Richard Smith made a strong push for the need of a national housing policy to come to the forefront. He felt because there is no formal policy, there are no guidelines for Congress and the thousands of bureaucrats that write the rules for all the laws they pass every year.  But with a major election drawing near, we are looking at what could be a lame-duck Congress for all practical purposes, thus the expectation that nothing is likely to happen between now and the 2012 Presidential Election.

3.) Unemployment.

Mr. Smith shared with the conference that unemployment and under-employment are the primary reasons the housing market is still struggling so severely. If you add current unemployment and underemployment together, the figure is 16.3%.  For any significant change in the nation’s real estate market, we need growth in full-time jobs and that is not going to happen overnight. As Gloria Frazier put it, “Our area has been recovering much faster than other parts of the nation, but we still have a long way to go”.

But the fact is, there is a pretty short list of steps you need to take to make a smart offer – one that gets you a great value, but is also likely to be successful at getting the property. (A low offer does not make for a great deal if you don’t get the house!)

Step 1: What do the “comps” say? First things first. When it comes to pricing a home, or making an offer to buy one, the ‘first thing” is the home’s fair market value. Buyers should work with an experienced, local agent to understand what the home’s value is. Most agents will do this by offering you a look back at similar properties that have recently sold in the neighborhood – i.e., the  comparable sales, or comps. Ideally, look for comparables that are very recent sales (3 months or less before you’re buying), very similar properties (i.e., same number of bedrooms, bathrooms, square footage; and similar style, condition and amenities). If you do get into contract, these may be the same comparables which will be considered by the appraiser, so looking at them before making an offer can:

(a) provide factual support for a lower-than-asking offer or for the asking price, in a negotiation, and

(b) result in a sale price at which the property will actually appraise, later on – avoiding the common glitch of the deal falling through because the appraisal comes in way below the agreed-upon price.

Also, looking at comps is the first step for a prospective buyer in the reality-based universe of current home values.  The fact that a seller bought or refinanced the place at a given value 5 or 6 years ago is entirely irrelevant to what it’s worth today, as is a buyer’s belief that the place was worth $100K less at the trough of the market, in 2009. The key words here are current home values.

Step 2:  What can you afford? This step is critical for buyers.  It’s a must to make sure that your offer price for any given home falls within the range of what is affordable for you.  This includes offering a price within the range for which your mortgage was preapproved, but also includes making sure that the monthly payment and cash you’ll need to close the deal (down payment + closing costs) are affordable in light of the particular house. If, for example, the property will require repairs for which you’ll need to conserve cash, or has HOA dues you hadn’t planned on, you may need to refigure your offer accordingly.

Step 3: What’s your competition? This is another step at which it’s critical to check in with your agent. You need to know what level of competition you’ll face.  Buyers should also be cognizant of the competition level they will face for homes.  Believe it or not, even on today’s market there are properties and neighborhoods in which multiple offers are the name of the game. Work with your agent to understand the list price-to-sale price (LP:SP) ratio , which lets you know how much under or over the asking price properties are selling for in your target home’s neighborhood; the higher the LP:SP ratio, generally speaking, the less competition there is among buyers.

Your agent can also brief you on:

(1)    The number of offers – if any – that have been presented on “your” property (which the listing agent will usually, gladly tell).  If there are other offers, you’ll want to make a higher offer to compete successfully against them; and

(2)  The number of days the home has been on the market, relative to how long an average home stays on the market before it sells – the longer it has, the more pressure is on the seller, price-wise, and the less competition the buyer is likely to have.  (One exception is the sweet spot scenario, when a property that has been on the market for a long time has a price reduction and gets a bunch of offers as a result! )

4.  How much do you want to buy) it? Has the listing in which you’re interested been reduced at all?  By how much?  Has the listing agent informed you that her clients are highly motivated, flexible or have an urgent need to sell?

Of course, all of real estate is hyperlocal, so it’s important to understand how motivated buyers are in your local market, generally speaking, before you set your offering price.

5.  How much do you want to buy the place? Step #4 was about taking the motivations of the folks on the other side of the bargaining table into account when formulating your offer and your list price.  This step is all about you – what’s your level of motivation?  Now, buyers, you certainly shouldn’t offer a price way above what the place is worth (see Step #1) just because you really, really want it, unless you have the cash to throw around.  But within the range of the home’s fair market value, it may make sense to move higher within that range if you are highly motivated to get that particular property.  Every region of the country is different so consult with your experienced, local agent for the best advice…refrain from  listening to agents in areas outside the property’s locale or to co-workers or to family members that have watched way too much HG TV!

If they are on the younger side buy them a disposable camera to take to school, the park, playdates, etc..  Have them take pictures of their friends, friends pets, their house, gymnastic/taekwando class, etc..  When the camera is full have it developed and sit down with your child to make a scrapbook/address book.  Yes while you are taking pictures have them get their address, phone #, and email address and add this info to the scrapbook by the picture.  For the older kids they probably have a phone or their own camera already and of course will have other interests such as their ball team, dance team, etc..

This is a great project to do with your child and will help them during the move and for months after when they feel they don’t have any friends and when they just feel homesick.

Good luck and safe travels to you.

Barbie Walker, Relocation Director

ERA American Realty of Northwest Florida, Inc.

850-621-3618 *call me if you need to find an agent wherever you are moving to as I will find you the perfect agent*

1. What happens to the seller’s credit rating when they allow an investor to short sell their property?

What typically happens is the loan will show up as “paid” on their credit report; however there will be a notation that says “settled for less than originally owed” or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure on their credit report.

2. Where do you find investors for short sales?

Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are experienced in doing short sales and if they would be interested in working with you. Another good place is your local real estate investors club meeting.

3. Define a short sale?

A short sale is really a form of pre-foreclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale results in a discounted purchase price for the buyer. The buyer would finance the acquisition much the same as in any conventional realty acquisition… but without the luxury of time.

4. Can an owner profit from a short sale?

The seller cannot profit (monetarily) from a pre-foreclosure short sale.. But there are always exceptions to the rule.

5. How do bankruptcies affect the possibility of doing a short sale?

Most mortgagees won’t consider a short sale if the homeowner is in bankruptcy…why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what documents do I have to include in a short sale package?

Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, ECOR, settlement statement (HUD 1), net sheet, pay stubs, bank statements, personal financial sheet (monthly budget), amongst other things.

7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?

All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.

8. How late in the pre-foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure Short Sale.

9. What is a Due on Sale clause?

“Due on Sale” Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender’s security instrument upon a sale of all or any part of the real property securing the loan without the lender’s prior written consent.

For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.

10. Will banks allow a short sale when the owner has some or a good amount of equity?

If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale.

by:  D.C. Fowler

I’m posting this blog because I feel that no matter where you are there are key factors that play a very important role in your choice of a real estate company and agent.  So, now, on with my story:

Yesterday my phone rings and I recognize the number as Lendingtree, or realestate.com as you may know it.  They are referring to me a new buyer looking at the Destin and Sandestin area, particularly an area we call “scenic route 30-A” .  They connect the buyer to me and the first question from the potential buyer is “Tell me why I should use you as my agent?”.  Whoa, right?  I proceeded to explain that I don’t actually work with buyers or sellers in finding them a home or selling theirs – that I connect each of them with a sales professional from our company to work with him or her in this capacity.  But, I did want to answer the “Why”.  So, I then took a deep breath and started speaking, hoping that I would not tongue-tied and spill out things like, uhhhhhhhh, well, ummmmm, etc.  Was I surprised that once I started I almost couldn’t stop – and for one who is not much of a talker I was shocked!

First off my tongue was the celebration of our 30^th anniversary in April and, well, that speaks for itself.  Longevity like that is not common in any business. I told him these thirty years were successful because the foundation of our company is to ensure that the agents we send out in the field are highly trained, not just straight from the Florida real estate school with a license in hand. They are straight from our personalized training program we offer here at ERA American Realty.  Our agents learn everything in our ROTC training program:  how to write a contract and any needed addenda; effective marketing including staging ; ethics and professionalism; being a team player; and so much more.  These are not easy classes, and they are mandatory, and they are time consuming for an eager agent – but they are worth it.  I went over the fact that our agents also know how to do the formulas and ratios to help you make the best decision when purchasing a property, in this case a second home, that you might plan to rent out as a vacation rental or a long term rental.  This is so important.

Our agents know how to work short sales, foreclosures, auctions, and of course a traditional transaction.  We are team players and use each other for guidance and mentoring.  So, our buyers or sellers gain the advantage of a team of 80 qualified professionals. Our agents are proud of what they do, and making people happy is their goal.  Lastly I made sure he realized that no matter what company has a home for sale, our company can show and sell it.  I could have gone on but figured my point had been made.

In the end, he did pick our company and the agent I assigned to work with him.  Wouldn’t you?

This license type is intended to allow the spouse of an active duty military member who is assigned to a duty station in Florida the opportunity to work in his/her respective profession without a break in work ability.   Assuming the spouse desires to practice beyond the expiration of the “temporary license“, it is recommended that he/she begin the regular  licensing application process as soon as possible.

Applicants must be married to an active duty member of the Armed Forces,  must provide a copy of their military dependent ID card and the spouse’s military orders that reflect an active duty assignment in Florida.  The applicant must hold a valid license for the profession in another state, the District of Columbia, any United States territory or possession, or a foreign jurisdiction.  Applicants will be required to provide a copy of the certificate of licensure and a copy of the statutes and/or rules that define the scope of work for the current license.

An applicant must have a background check as part of the licensing process, including fingerprinting and pay the required licensing fee to the Department of Business and Professional Regulation.   In order to obtain a temporary license for  the military spouse, Florida law requires that you live in the State of Florida.

For more information or assistance, you may call the customer contact Center at 1-850-487-1395 or email call.center@dbpr.state.fl.us.  And,  of course, if you’re  a  spouse with a real estate license, we hope you  will come and talk with us!

Pre-Planning

This is the key to an easier transfer, regardless of the mode of transportation chosen. Travel arrangements should be completed as far in advance of moving day as is practical, keeping departure day tasks to a minimum. One person in the family should assume responsibility for the pet. Be sure to discuss the transfer of your pet with your travel agent. Your agent can help you select the best way to transfer your pet, offer helpful suggestions, and assist with, or take care of, any necessary shipping arrangements. The agent may recommend a pet handling agency that will take care of all the details of shipping pets, including boarding, pick-up, and delivery. Costs vary according to services rendered.

General Checklist

1. Take pet to veterinarian for checkup and health documentsapply for entry permit if one is needed; inquire about sedation for pet; obtain pet’s health record; schedule second visit to vet if necessary; ask your vet to recommend a colleague in the new city.
2. Obtain travel identification tag.
3. Check destination state’s pet entry regulations.

1. Health Certificate:
   1. Interstate health certificates must accompany dogs and horses entering nearly all states. About half have the same requirement for cats, birds and other pets. In some cases, advance receipt of the health certificate by the destination state’s regulatory agency is a prerequisite to entry of the pet.
   2. The health certificate must include a complete description of the pet, list all inoculations it has had, and state that it is free from infectious diseases.
   3. Have your pet examined by your veterinarian well in advance of departure date so there will be time for any treatment or inoculations recommended. Another examination just prior to departure may be necessary. If the pet is excitable, or prone to motion sickness when traveling, ask the vet to prescribe medication for it. Also ask if a colleague in your new area can be recommended.

For more information on making a smoothe move for your pet you can visit this website for the rest of this article.

These two events will stimulate all sectors of our economy, and real estate will be right up there at the top of the list. When people are buying and selling houses, and builders are building new houses, the general economy is also doing well.

Housing is a true driver of the economy and anyone who came on earth prior to 2001 knows this. We don’t want to see another boom like we had between 2002-2006, but steady or even robust growth is what will help our economy bring new jobs to our area.

Gloria K Frazier

Gloria Frazier
Broker/President
ERA American Realty