Orlando Real Estate Market

2007-12-10T20:34:00.000-05:00

WHY USE A BUYERS AGENT
You talk to friends, look through ads, and peruse the Internet searching for that special relationship. Finally you meet someone compatible! Sound familiar?

It may not be that special someone, but having the right real estate agent can make your life a lot easier. As in all good relationships, honest communication, trust, and loyalty are essential in moving forward. (This means on both sides. Your agent can't help you if you're not up-front and cooperative.)

Remember, this is not an adversarial relationship. So here are some tips on getting along with your new best friend:
• Do some soul searching. What factors are the most important to you in your quest for living space? This can be a deck, office, view of the lake, whatever makes you happy. Everything can change, but at least have a viable starting point.
• Get pre-approved. Talk to a reputable mortgage broker or lending institution and get the bottom line on what you can really afford. Experienced agents insist that you do this in the beginning and you'll need it right away if you want to present an offer.
• Choose one agent. If you insist on using more than one agent, be up-front about it.
• Don't ask your agent about the race or religious factors of any neighborhood. It's illegal for agents to respond and they can lose their license if they do.
• Search the Internet and educate yourself about available properties. Pick out some homes you would like to view. This will educate you about the market and let the agent know what you like.
• Let the agent choose listings for you to see too. Good agents know the inventory of available housing and may come up with properties you overlooked, but that match your tastes.
• Give as much lead time as possible for your agent to set up multiple appointments. Leaving messages and receiving calls back takes time. The agent is coordinating your time, another agent's time, and sometimes the owner's time, plus juggling sequential appointments.
• Be on time for appointments. Everyone is on a tight schedule and being just 10 or 15 minutes late can throw off a day's appointments for all of the parties involved.
• Sign contracts promptly when making an offer. Other offers can come in ahead of yours, or you may not be taken seriously if you aren't prompt. It's not a contract unless it's signed.
• Attend home inspections personally unless it's truly unavoidable. The firsthand account of the condition of your home is priceless information. Reading the report isn't the same.
• Work closely with your real estate team to make sure the transition happens smoothly. Don't get overly worked up about glitches on the way to closing. It's just the attorney, inspector, lending companies, and closers doing their jobs.

Some Outstanding Questions
What if we get to the showing and I don't like the exterior of the building. Why should I waste my time going inside?

A. Take a few minutes and walk through. You learn from every home you see; expect to look at many homes before you find the one that's right for you. Also, both agents and the owner of the home have set aside time for you. It's rude to walk away.

Q. What if I start working with an agent and suddenly I can't stand them anymore?

A. It can happen. Don't feel bad. The short answer is unless you have a buyer's agent agreement, just find a new agent you like better.

You will run into problems, however, if you decide you want a home the first agent showed you months ago. That agent is almost always entitled to the commission because they showed it to you first. And rest assured, if they find out you are proceeding with the purchase, the agent and broker will fight for the commission.

Also just be courteous send a quick email that says I have decided to use someone else. It makes life easier in the end.

2007-11-11T09:31:00.000-05:00

Dispelling Flat Fee Companies
I have noticed a lot of flat fee Realtors posting blogs about how wonderful they are and I thought I would rebut some of what they have to say about why they are wonderful and give you just a taste of what a full service Realtor does.

A Flat Fee Realtor will:

They will put your home in the MLS, which will automatically upload to Realtor.com (which is losing market share)
They will give you a sign to put in your front yard
They put your listings in other county MLS's what they dont tell you is this is pretty pointless. A Realtor from Ft. Lauderdale is not going to be searching for your home here in Central Florida they are going to refer their buyer to an expert in that area.

Generally this is done for $399

Now if you think this is what it takes in this market to get your home sold, why dont you ask to speak with most of their customers who after spending 3-6 months on the market seek a full service Realtor.

Next if you upgrade to $599

They will give you a stack of legal papers so when you find a buyer they can fill them out (hint you probably wont need these because 8 out of 10 buyers are working with a Realtor who will already have these papers but we'll get into that later)
Electronic Lockbox - (You should have this)

This fee is paid upfront regardless if your home sells. Does that flat fee company really care if your home sells? Probably not, they already made their money now it's your problem. They have no financial investment in it. Full service Realtors have personal investments in your property and want to see it sell as quick as possible and for the most money.

Now here are my problems with Flat Fee Realtors:

You still need to pay at least 3% to the buyers agent, if not more. While it's not always right a lot of realtors see that it's a limited service listing so they know they will have twice the work not dealing with another Realtor. So they expect to get paid for it. Plus every other listing is paying 3% and more, you wont to compete on a level playing ground right? In this market we have over 26,000 active listings in Central Florida, I can guarantee you there are atleast 5 properties out there just like yours.
A sign in the yard oh yippy! What is that suppose to do, honestly a sign is more for the listing agent to pick up buyers for other properties not for you to sell your home. I sell in many neighborhoods where signs are not allowed and I still get these properties sold. What if you live in a neighborhood where signs are not allowed how is that flat fee company going to help you sell now?
Lockboxes are a must. Agents dont just show properties on the weekends or in the evenings when it's probably most convenient for you, they show them at 1 pm Tuesday afternoon or maybe even 10 am on Thursday. Can you just leave work to run and show your property? What if the agent is running late? If your property isnt readily available at all time's the buyers and Realtors will move on to the next property.
Free Contracts and legal documents. Do you know what to do with these? Do you know what you can and cannot say in the MLS and not incur a fine, to not open yourself up to liability both now and after the closing? These papers don't discuss that will they be there for you evry step of the way. Do you know what RESPA rules are? This is a big problem with Flat Fee Companies the amount of liability you open yourself up to.
So who is writing your ads? You? Can you detach your feelings from your house so you can properly showcase and sell it? You may love certain facts about your house, but others may see these as a negative do you know how to truly sell the property to the widest market?
So where are you going to market your home besides a sign and Realtor.com and how much is that going to cost you week after week?

I could continue to go on but I think I will have bored everyone by that point, if I havent already. So let me recap.

RECAP:

You pay $599 regardless if your home sells, No one to help limit your liability, No marketing department to write your ads, you have to decided where else to market your property and you still have to pay for marketing again paid upfront, You still pay the buyers agent. So lets break down these costs.

Your listing price $200,000

MLS FEE $599 (This money is paid regardless if your home sells)

Buyers Agent $6,000-$8,000

Marketing $$$ $4,000-$5,000 (This money is paid regardless if your home sells)

If your home sells your total amount paid

Out of Pocket $ 10,599-$13,599

Now, If your home doesnt sell your out of pocket paid

$4,599-$5,599

Now if you use a full service Realtor

List Price $200,000

MLS FEE $0

Buyers Agent $6,000

Listing Agent $6,000

If your home sells the amount paid (but not out of pocket, but from your closing proceeds)

Total Paid $12,000

Now, should your home not sell, your out of pocket paid

Again these Realtors have a full investment in your home and want it sold just as much as you. Plus if you are unhappy with their service you can ususally cancel at anytime for $0. Again you paid nothing out of pocket. So where is the real savings using a Flat fee company?

Maybe my next blog will be what you truly get for the money with a full service Realtor.

2007-08-06T23:13:00.000-04:00

Your Realtor is not your scapegoat

You've hired a professional real estate agent to market your home because you realize that by doing so, you will have the BEST chance of selling your home for the HIGHEST PRICE in the LEAST AMOUNT OF TIME. Please, please, PLEASE, listen to your agent...and please, please, PLEASE don't treat us like your scapegoat when your home doesn't sell.
I believe I speak for all agents when I say:

Number 1: I cannot read your mind! Please don't expect me to somehow anticipate that you would leave for a week and turn your air conditioning off in 90 degree weather. As a seller, it is your responsibility to make sure that your home is in show ready condition at all times. I don't feel it is fair to get a phone call from you telling me that your home was probably too hot and didn't show well during the past week, and that you are upset with me because I should have somehow known this...and turned on your AC before every showing. If you want me to do something while you are away...you have to ASK.

Number 2: I did not remodel your home into a floor plan that doesn't accommodate most buyers. I did not pick your lot, put up the flowered wallpaper, or choose your cabinetry. Your home will not appeal to EVERY buyer, no matter how much YOU love it. Please don't blame me when your remodeling or decorating choices make your home harder to sell, or when you haven't serviced your furnace since 1980.

Number 3: I cannot make a buyer want your home! I know you would like to believe that I have magic powers that will sell your home...but I don't. I can't twist a buyer's arm until they "give", I can't force agents to call me back with feedback, and I can't make them give me a reason why the buyers chose another home over yours. They just liked it better. End of story.

Number 4: I do not control the market. I cannot make your house worth more money, even though I wish I could. I don't set prices. If it's overpriced, it will not sell. And if some buyer does come along and offers you your price, it still has to appraise...or no deal. Also, I did not take all the equity out of your house to purchase a boat, take a vacation or to pay off your credit cards. What you owe has nothing to do with what your house is worth. Please don't blame me for the economic conditions of the market or for your spending habits.

Number 5: Please listen to me when I suggest a certain price, or ask you to clean your windows, mow your lawn, remove your wallpaper, or allow showing flexibility. I KNOW the market. I KNOW your competition. I want YOUR HOME to be on a level playing field. I want you to be successful.

Number 6: If you don't trust me, if you don't believe in the hard facts of the market data that I provide...then please don't hire me. We'll both be miserable. I am a professional and I deserve to be treated like one. I will work extremely hard for you and will market your home 24/7. I will go out of my way to make you happy. Please don't tell me how to do my job. I've worked with HUNDREDS of buyers and sellers. This is what I do. I know how to do it, and I'm good at it.

2007-07-03T09:10:00.000-04:00

Yes your's truly waited 9 hours in line and dropped $600 on an iphone

So June 29th has come and gone and I am one happy person. I feel like a little kid that just had the most amazing Christmas. I spent 9 hours on Friday waiting in line in front of the AT & T store on Colonial. THere were many days of planning which store would provide us the best opportunity to purchase a phone, had the best ammenities and shade from the sun. I arrived at the AT &T store at 9:15 am and was 11th in line. The first 2 people arrived around 5:30 am. I had 2 friends at the apple store in the millenia mall who arrived at 4:30 am. So if you think I was crazy think again. I have had a few days to play with the phone and I am incredibly in love with it. I hate putting it down for more then 15 minutes at a time. It does everything I could dream of and so much more. And the Edge network is not a snails pace like people say it is, however when on wifi it's just as fast as my laptop. Below are some news interviews with me on FOX 35 and in the Orlando Sentinel. If anyone has questions about the phone I am more then happy to answer them. I predict this phone making me an even more productive Realtor!

http://www.myfoxorlando.com/myfox/pages/Home/Detail;jsessionid=6F93C77B6A8A8B94B3
CA2EAE13668F4AcontentId=3640915&version=1&locale=ENUS&layoutCode=VSTY&pageId=
1.1.1&sflg=1

http://www.myfoxorlando.com/myfox/pages/Home/Detail?contentId=3663259&version=1&locale=EN-US&layoutCode=VSTY&pageId=1.1.1

Orlando Sentinel AD last line in article
http://www.orlandosentinel.com/technology/orl-iphone3007jun30,0,5505045.story?page=2

2007-07-02T10:30:00.000-04:00

I saw this article on our RE/MAX website and thought it was a must repost. It's in important for buyers out there to learn from others in their same position. Sometimes people think of Realtors as a used car sales man that we are just there to make money off them. For anyone who thinks this way or may be interested in going alone when purchasing real estate please read the article below and take a look at the website.

Homebuyer Alan Jacobson wants to tell the world, "Always use a Realtor." After weeks of disputes, he outlines his side of the case on a Web site called FSBOgonewrong.com where he and the seller are now in a spaghetti western standoff.
Mr. Jacobson claims that the following happened:
Buyer makes offer of purchase with addendum for sellers to make repairs. Sale price: $441,000.
Buyer and seller agree to use the same attorney to close the transaction.
Home is inspected, problems found.
Buyer hires contractor to work on third floor.
Contractor dies, after cashing retainer check.
Buyer hires a second contractor of Middle Eastern descent.
Buyer notes progress is slow on seller's repairs, expresses concerns repairs will be completed by closing.
Mutual attorney suggests buyer do a walk-through inspection.
Seller denies buyer walk-through inspection.
Seller threatens contractor and hurls racial slurs.
Mutual attorney recommends seller retain separate counsel.
Seller hires new counsel.
Seller denies lender's appraiser to view the property before closing, then relents.
Buyer has property inspected, significant findings threaten sale.
After some back-and-forth, seller offers to lower price to compensate for discrepancies.
Both agreeing to a new price, $420,000, closing is scheduled.
Buyer prevented from doing final walk-through prior to closing due to keys not being available.
Second closing scheduled; keys still not available
Buyer asks intermediary to talk to seller.
Seller tells intermediary - no papers signed, no walk-through; expresses irritation that buyer had "badmouthed" the house.
Buyer hires new attorney
Buyer's attorney calls seller's attorney several times, gets no response.
Finally, buyer and seller attorneys agree to a walk-through prior to closing.
Buyer finds during walk-through that all utilities are off, can't inspect mechanics of the house.
Buyer told by seller's attorney to call utility company, but only seller's attorney has access to house.
Buyer asks for termite inspection; finds inspection report completed 15 days prior to first closing date.
Termite report bad.
Lender refuses loan until termite problem fixed.
Buyer's lock rate on loan runs out.
Structural report suggests termite damage extensive.
Buyer's attorney requests price reduction to cover new costs.
Seller refuses price reduction or to sign a mutual release of liability and termination of the agreement.
Jacobson says, "If the seller really wants to sell this house, he needs to compensate me for all my costs and make the repairs necessary to satisfy the lender."
He explains, "The contract I signed doesn't provide any relief or remedy when the buyer acts in bad faith. For instance, the contract says a termite inspection is required and the buyer must pay for it. But it doesn't require the seller to pay for any termite damage. Furthermore, the contract explicitly absolves the seller for any responsibility for structural damage. My lender requires a clean termite letter, which the termite inspector will not provide until the structural issues are resolved. But I'm reluctant to do this at my own expense to satisfy the lender when I don't even own the property. I'm not a lawyer, but from a literal reading of the contract, the seller has satisfied it, even though he didn't disclose the termite damage, nor provide the structural engineer's report before I lost the lock on my mortgage, in spite of assurances from the seller's attorney that this report would be provided before I lost my lock."
According to his attorney, suing the seller would be a problem, Jacobson says.
"We can only sue for 'specific performance,'" he says. "In this case, we threatened to sue because the seller had not provided the termite inspector's report and the structural engineer's report. Neither were provided before the first three scheduled closing dates, but they were ultimately provided, albeit not before I lost my lock.
"So we can't sue for failure to perform on those grounds. The contact states that 'TIME IS OF THE ESSENCE" but it isn't more specific than that.
"I can force him to sell the property for the contract price of $441,000. That's $21,000 more than the negotiated price, but we don't have the negotiated price as an amendment to the contract. This was strictly a verbal agreement when the first closing fell through.
"So if I sue, I can get the house - maybe three years from now when the case is heard - and pay $21,000 more for it, plus I'm not likely to get all my fees reimbursed even if I prevail.
"While I might win in the court of public opinion, my case on strict legal grounds is not as solid according to my attorney, because the contract I signed was not a standard REIN contract," says Jacobson. "Yet another reason to ALWAYS USE A REALTOR."
Could the seller sell to someone else?
"Legally, the seller can't sell to someone else because he's bound by this contract," Jacobson says. "However, he was legally bound by this contract to do many, many things that he didn't - and that is clearly documented - so I wouldn't put anything past him. If he sold to someone else, I would have to document how I was damaged by his actions. I could show $10,000 in damages, but it might cost just as much to bring such a suit with no guarantee of winning it. So it isn't a slam-dunk option."
When Jacobson asked his lawyer about building FSBOgonewrong.com, the lawyer told him "to go ahead, because it would be therapeutic." Says Jacobson, "It would get it out of my system and prevent it from continuing to eat at me. And he was right."
But that doesn't mean he doesn't have regrets.
"A Realtor once told me, 'You'll know you've found your house when you can see yourself living in it.' And that's my problem," Jacobson says. "I can see myself living in that house. I can see my girls in their new, big bedroom that my girlfriend offered to decorate. I can see the girls running up and down the stairs. I can see us entertaining in our new dining room - the most elegant room in the house, with high ceilings, crown moulding, a window seat, etc. I was even looking forward to working with the contractors to redo all the floors, finish off the exterior, etc.
"So it's tough just to walk away from this deal."
Copyright © 2007 Realty Times. All rights reserved. 6/29/07

2007-04-12T09:41:00.000-04:00

Stage Your Home to Sell

The way you live in a home and the way you sell it are two different things, says home-staging guru Barb Schwarz in her book "Home Staging: The Winning Way to Sell Your House for More Money." Here are some home-staging tips to share with clients who are readying their homes for sale:

Staging is not decorating. Decorating is personalizing a space, where staging is "depersonalizing" it. Staging is not about displaying a favorite color rug or ruffles someone loves. It's about selling the house. Remember, if your clients are showing a messy house, they're throwing away money.

If you can smell it, you can't sell it. Make sure your clients do a sniff test and understand that odors they might be used to have to be eliminated. It's a sensitive subject, so handle it with tact.

Clutter equates to stress. One of the biggest challenges to home staging is clutter. Remember, it's just as important for your clients to get rid of excess "stuff" as it is to clean their house. Tell your clients that clutter interferes with potential homebuyers' ability to mentally move into the house. They can't imagine their own furniture in a room if it's cluttered.

Consider painting the interior of the house. Your clients might like the navy blue walls and wacky flower-print wallpaper, but homebuyers want the house to have a cohesive, simple color scheme. Drastic color changes from room to room can actually startle potential homebuyers.

For more information or to purchase the book, visit Schwarz's website at StagedHomes.com.

2007-04-02T09:57:00.000-04:00

Buyers Time to Get Realistic

I continually hear that the buyers are waiting for the market to settle down. Buyers are waiting for that killer deal. Buyers are waiting....OK. It’s time for a reality check for buyers. In the Central Florida area, as I am sure with many parts of the country, the real estate housing market has settled down. Yes, there is a great deal of inventory out there, but homes are being sold. Granted, not at as fast as the past few years. But let’s get realistic, that was an anomaly. We probably wont see that for quite a few years. Everything in real estate is cylical. Sellers seem to be somewhat more realistic in that they are pricing. I don’t know why so many buyers have in their minds that the market still needs to adjust. The market did that last year and that was really finalized by the end of the year. Prices aren’t dropping. Nor should they. There are some amazing deals out there already. You can actually purchase a home now and walk in their with some equity. Not like what we saw in 2005 with some people even paying over appraised value. This is the way a normal market is supposed to operate.Prices are not going to go down lower & the interest rates have remained quite low, even more of a reason to get into this market. There is generally price and value built into these homes. If there isn’t, then move on to the next property. There are enough out there to choose from.I know some are now blaming the sub-prime market, but then again, these are people that are just always looking for something to blame. Yes, the sub-prime market took a hit. But, then again they should take a hit for all the risky deals they took and the people who over extended themselves just to get into the market. But, there is money out there for people with less then A credit. It can be found. Our market has bottomed out. It’s as simple as that. It has turned the corner. I’m not just saying this because I would like some buyers. The stats prove this. Dont wait til the media tells you the market has turned, if you wait til then, then you already missed the amazing deals. I know the market is still strong because I have sold properties in this market in just 10 days and closed in 20. These were fire sales, but priced right for the market in great locations. These also werent people who got in over their head last year, but had equity built into their homes so they still walked away making $200,000+ . It can still be done and buyers whenever you can evict your landlord and build equity is a good day to buy regardless of the market.

"Exceeding All Expectations"
www.centralfloridaluxuryestates.com

2007-03-26T09:10:00.000-04:00

As a first-time buyer, should I wait until prices go lower to buy a home?
No.
If you continue to wait, you may never be able to afford to get into the housing market. Even as home prices are currently moderating - or even falling in some areas - rents continue to climb. The best way to build household wealth is to own a home. Once you become a homeowner, you are able to take advantage of the generous tax deductions that homeownership offers, and you begin to build equity in your property. As your property builds in equity, you can use those gains to sell your starter home and afford to move into a bigger house.
With so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter home. Instead of trying to buy a 2,000 square foot home, consider shopping for a 1,500 square foot home. Remember, the sooner you make the jump from renter to home owner, the quicker you begin to create and build up wealth for your family. After a few years, you will be able to leverage this investment and buy a larger house.

If I wait to buy a new home, won't prices go down even lower?
Timing the market isn't a great idea.
All the market fundamentals show that now is a good time to buy - prices are down, interest rates are affordable, there are lots of homes to choose from and you can bargain with sellers.
If you try to wait and time the market until it hits rock bottom, you are likely to lose out. Just as no one can accurately predict the peaks and valleys of the stock market (name one person who sold their tech portfolio in April of 2000), the same holds true for housing. If you sit on the fence and wait for the absolute best deal, you could end up literally waiting for years. And most likely your guess on market timing would be wrong. But if you choose to buy now, you will not only be in the driver's seat during the buying process, you will also reap the gains of price appreciation once you become a homeowner. Remember, those who purchased homes in the early 1990s during the last big economic and housing downturn came out as big winners.

Is it better to wait until the economic picture is clearer so my house will appreciate?
No.
The fact is, the economy is still solid. After expanding rapidly over the past couple of years, economic growth is moderating - and this is actually good for housing. Most economists predict that overall GDP growth will average about 2.5 percent for the rest of the year. That means that job growth will continue to move forward at a pace that should not trigger higher inflation rates or higher interest rates. This period of moderate economic growth, job creation and low inflation, coupled with a true buyer's market where there are plenty of homes to choose from, makes this an ideal time to purchase a new home.

Isn't it better to "play it safe" and keep renting until things are more certain?
No.
The best way to "play it safe" is to actually buy a home. And here's why. Studies show that owning a home is the best way to build household wealth. The sooner a person owns a home, the faster they begin to build up equity and wealth. When you buy a home, you are also purchasing price stability, knowing that you will pay the same monthly payment for the life of your 30-year mortgage.
Now consider the current rental market. During the past few years, many rental units have been converted to condos. As a result, there are fewer apartment rentals on the market. While home prices have been moderating, rents have been going up. Each year, your rent can easily go up a minimum of 5 percent to 10 percent. Where is the economic security in knowing that it is possible your rent could surge 30 percent in three years? You don't receive any tax benefits from paying rent, nor do you accumulate any price appreciation, as you would if you owned a home of your own.
All of the economic fundamentals show that this is a good time to buy a home and that there is upward pressure on rental apartments. The real risk isn't in buying a home, it's continuing to rent.

Should I invest my money in the stock market or use it to buy a home?
Buy a home.
Thanks to the concept of "leveraging," purchasing a home is by far the best long-term investment. Leveraging means putting down a small amount of money to earn a big return.
For example, say you use that $10,000 to purchase a $150,000 home, and the house appreciates five percent during the first year. That means after one year, the house would be worth $157,500 - a gain of $7,500. Your annual return on your $10,000 investment would be a whopping 75 percent.
By contrast, putting the same $10,000 in the stock market and posting a similar 5 percent gain would only net a $500 return on investment.
And as a homeowner, your savings continues to grow in two ways. Every year a greater portion of your monthly mortgage payment goes to the principal, reducing the overall loan amount. Second, your home appreciates over time, making it one of the very best financial investments. Not only is homeownership a stepping stone to a future of financial security, but it also helps to build neighborhoods and strengthen communities. It is truly the cornerstone of the American way of life, and the fulfillment of the American dream.

Should I wait to buy a home until interest rates go down further?
No.
Interest rates currently stand at about 6.4 percent and are extremely favorable for buyers. In fact, they are hovering near 30‑year lows. But waiting to time the market is a dangerous - and losing - game. Even those who follow the market for a living can't figure out when interest rates will bottom out. If they could, they would all be multi-millionaires. Because interest rates are near historic lows, it is much more likely that they will head higher in the future as opposed to moving even lower.
And home prices don't necessarily move in unison with interest rates. So if you decided to roll the dice and wait to purchase a home, and the price were to actually drop $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up a half point during this period, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making over the life of the loan.
In short, the smartest and safest time to buy is now. We know that interest rates are low today. We know that home prices are down. We know that there are plenty of homes on the market to choose from. We know that sellers are willing to bargain. And we know that builders are willing to offer attractive incentives to get your business. Any or all of these favorable variables could change for the worse six months from today.

Should I wait to sell my house until I can get the same price my neighbor sold their house for?
No.
It's always better to trade up in a buyer's market like the one we are in now. While the value of your house has fallen, the price of higher-end homes has also dropped. Your home value is now down 10 percent to $270,000. But don't forget that in today's buyer's market higher priced homes are also dropping in price.
But for argument's sake, let's say that a $500,000 move-up home has also dropped 10 percent in value and now sells at $450,000. If you sold your home today for $270,000 and purchased the larger house for $450,000, the difference in price would be $180,000.
But if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are that same move-up home would also move up in price to at least $500,000. That's a $200,000 price difference between the two homes. So by selling today, you would actually save $20,000. And most likely, by jumping into the market today, your savings would be even greater because consumers have much more bargaining power when shopping for higher-end homes in a buyer's market.

2007-02-19T20:37:00.000-05:00

Save Money by Deducting Your PMI
Borrowers who are closing loans in 2007 and who have annual combined household incomes of $100,000 or less now qualify to deduct the full cost of their mortgage insurance premiums on their federal tax return, according to a press release from the U.S. government. This legislation was passed by Congress and signed by President Bush in late 2006. For homebuyers, this law helps to increase their buying power, simplify the mortgage process, create easier refinancing opportunities and broaden their cash-flow options. "Making the cost of mortgage insurance tax-deductible helps those who need it most: low- and moderate-income Americans, primarily first-time homebuyers, who are financially responsible, but simply don't have the means to amass a 20% down payment," said Steve Smith, President of Mortgage Insurance Companies of America. Experts say that a mortgage insurance deduction will serve as an option to taking on a "piggyback" loan to cover a 20% down payment. The new law is expected to save nearly 1 million Americans a total of $91 million when they file their tax returns in 2008. As this article goes to press, the law has one hurdle to cross: The IRS still has to issue regulations that interpret the law. Therefore, it is highly recommended that you always advise your clients to talk to a tax professional before filing their taxes.

2007-01-25T09:30:00.000-05:00

Parents do you have students preparing to go off to college? With college costs increasing every year does it feel like your wallet is shrinking? Well here is a simple plan to put more money back in your pocket and even take a little from Uncle Sam.

Most apartment complexes easily charge anywhere from $400-$800 per student to share an apartment with 3 other students. Instead of throwing out that money to some landlords pocket put it back in yours. Purchase a home in the city your student will be going to school. While the mortgage payment is going to be higher then this, most likely you will have 2 or 3 other rooms available for your son or daughter to rent out to their friends or other college students. What student wouldn't prefer to pay the money to live in a home that has a small yard for bbq's, larger living space, a private room and possibly a private bathroom.

Now here is the best part. You are going to need a property manager, wink, wink and you have the perfect person, your son or daughter. The IRS does not dictate how much or how little you pay your property manager and what you write off. Now since you are probably paying all or part of your child's tuition here's the way to make it a large tax write off. Pay your son/daughters tuition directly to them, this is their paycheck for being your property manager. Now they then in turn pay their tuition with this money, but you get to write it off as a property expense, plus the taxes and interest paid on the home. Now in 4 years you have probably made money on your investment to pay for a nice trip, get the money back from your students college fund or a continual source of income by renting out to other students.

2006-05-22T23:26:00.000-04:00

With hurricane season upon us, it’s important to be prepared after a very active 2005 season. The most important step you can take to reducing the amount of damage to your home is to protect areas where wind can enter. There are 5 critical areas of importance that will help protect and reinforce your home.

1.) Roof
2.) Straps
3.) Shutters
4.) Doors
5.) Garage Doors

Roof

Does your home have a gabled roof? If so the end wall of your home takes a beating during the hurricane. Properly brace this wall, to prevent it from collapsing. To secure your end wall, fasten eight foot long braces to the bottom chord of the gable truss and the adjacent trusses. Braces should be perpendicular to the truss with a maximum of four feet on center.

Make sure the shingles on your roof are properly secured and no tabs have been lifted or have holes. You should have a licensed roof inspect before the hurricane season. A quick fix on loose tabs is to use a quick-setting asphalt cement. To cement place two spots of the adhesive about the size of a quarter under each tab and press.

Straps

Most new homes use hurricane straps to attach trusses to wall ends and to one another. If you have an older home now may be the time to have your home retro fitted to withstand hurricane force winds.

Shutters

Today there are many new style of hurricane shutters available at places such as Lowes. Some of the new materials are much lighter then plywood and allow light to enter the home. However if you plan on using plywood here are some simple steps to ensure your home is properly protected.

Make sure to cover all windows and glass doors. The main importance when installing hurricane shutters is adequately fastening them to them home. If you have a concrete block home you will have to install anchoring devices.

Doors

Your house probably either has a double or single entry door. Solid wood or hollow metal doors can resist wind pressures and hurricane debris. However, to take extra steps to ensure the safety of your home follow these steps.
Install head and foot bolts to the inactive door with double entry doors, if not already present. Make sure your doors have at least three hinges and a dead bolt security lock which has a minimum one inch bolt throw length.

Garage Doors

Double wide garage doors are more susceptible to wind damage then single doors. Unless you have tested hurricane resistant doors, he wind may force it out of the roller track. To secure your garage door reinforce it at the weakest points. This involves installing horizontal bracing onto each panel, using wood bolted to the door mullions.