THE "NEW" MARKET

Let's just say this, at least there is a market.

Prices may be down, less people maybe buying, however even in this down market people are finding a way to close deals.

For a while there, real estate was a sad, down trodden state of affairs. Simply put, prices were too high. Lending was difficult, damn near impossible, and if you were looking to get a jumbo loan, you could forget it.

Now that prices have come crashing down, in some cases fifty percent off their highs, people feel it's safer to buy. Let's face it, if you walk into a department store and see a 50% off sale, don't you feel inclined to buy? Sounds like a great deal to me.

RADIO CHECK. The highest activity in the market is at prices under 300k. This price range is very active, especially with investors and first time home buyers. What's seems to be happening here, is that people are seeing other people buy, and feel that it's now safer to buy. Have you tried buying a foreclosure lately? Get in line.

Also, I'm starting to see more and more deals close above 450k. Not that I'm closing any of them personally, (that would be nice). Our title company, however, has recently had several deals close in this price range.

What's going on, you ask? What I think is, people who have the money to buy nicer and more expensive homes are finally starting to do so. They may not be able to qualify for the $8,000 tax credit, due to their income, but they do have excellent credit and more importantly, the cash to put down a large enough down payment to bring the mortgage down into the conventional range, (under $417,000). Rates in this range have been hovering around 5% for a long time and they won't stay this low forever.

Another important aspect of the "New Market" is, of course, the short sellers, Let's face, most people who bought within in the last five to seven years are now underwater. In order to sell their homes, they have no real alternatives other than to modify their mortgage or bring cash to the table. Unfortunately, most of the short seller's don't have the cash to bring and don't qualify for a modification and hence short sell their properties.

Now, normally when someone sells a house, they turn around and buy another one. Not in the case of the short seller. Short sellers receive no money at closing, and then cannot turn around and buy again. That's a pretty large segment of people who are no longer participating in the re-purchase arena. What they are doing, however, is renting.

RADIO CHECK: I recently read in an article somewhere, which noted that more people renting is not such a bad thing for the economy. Investors buy up the foreclosures at reasonable prices, that provide a good return. Now that the homeowners become renters, they have less monthly expenses. This leaves extra cash in their pocket to spend with, pay down debt or dare I say, save.

To sum it up, investors are buying foreclosures, short sellers are renting from the investors and first time home buyers are enjoying record low rates, and an $8,000 tax credit from Uncle Sam. Let's not forget about the "Financially Healthy" individuals who are able to put down enough money to take advantage of the historical low rates.

The main point is ,that even in this tough real estate climate, one way or the other people are finding ways to buy, sell and rent. To me, that's what real estate is all about, and today that's the "New Market".

Coming up next time on "Real Estate Radio" my year in review.

This is Awesome A! signing off.

Thanks For Reading!

Aaron Glassman, Broker/Owner

A-1 Realty Group, Inc.

yoursouthfloridarealtor@gmail.com

954.326.2663 . cell

**Photo taken the first night of Chanukah. Happy holidays to everyone! Have fun and stay safe.

http://www.a1realtygroup.net/

http://www.a1titleandescrow.com/

http://www.lglassmanlaw.com/

Foreclosure Frenzy

So you want to buy a foreclosure?

In the beginning of the year, between January and June, I was approached by several people looking to buy a foreclosure for investment. I searched, we saw, they bought.

The story is no longer the same. Now it's more like, I search, we see , they put in an offer and someone else buys it.

Why has it become so difficult? Simply put, there are more fisherman fishing, with bigger hooks and better bait, (all cash).

Basically, foreclosures on the MLS have become quasi auctions. Listing agents never intend to sell their properties for the list price. With so many buyers, corporations, and individual investors chomping at the bit, competition for foreclosure is fierce. I've heard that in some cases, a foreclosure has had over 30 offers at once.

So what to do? Here are some tips:

1.) Be prepared to bid above the asking price, sometimes way above. Take a look at the recent comps in the area and you will see in many cases, foreclosures are selling for higher than the asking price. Be sure to bid accordingly.

2.) Pay all cash if possible. If you are, however, going to get a loan, you should try to put down at least 30%. Some banks consider 30% down the same as all cash. Also, if you are getting a loan, and are making a bid above the appraised value, you will have to come to the closing with cash. The bank is only going to lend on the appraised value.

3.) Determine what the other guy is paying and pay more. Figuring this out is not too difficult, but still tricky. An investor's rule of thumb is to get at least 1% of the purchase price as monthly rent. If the house will rent for $1,500 then the investor doesn't want to spend for than $150k after repairs.

RADIO CHECK: Sometimes an investor is willing to break this rule if they think the property will have a better back-end return. The investor may accept a smaller cap rate up front in order to get a better return after the property appreciates over time.

Overall, buying a foreclosure is not impossible, it's just not as easy as it was earlier on in the year. The word is out and there are now many people in the foreclosure market to compete against. Banks prefer to work with all cash buyers, or those putting down large down payments. My suggestion for the average buyer, if they cannot afford to pay cash, need FHA financing, or don't have a full 30% to put down, is too take a serious look at a short sale. Short sales can still be a "Great Deal", they just take longer to get approved by the bank. Read my previous blog "What's the hold up" to learn more about the short sale process.

Well, that's our show for today. Join us next time when we talk about the "New Market." We'll examine what's happened to the real estate market over the past year and how it is different from what some may call a "Normal Market." With new rules and guidlines for buying and selling, todays' real estate market is much different from a year ago. So stay tuned.

So for now, that's all there is, there is no more. This is Aaron Glassman signing off. Thanks for Reading!

http://www.a1realtygroup.net/

http://www.a1titleandescrow.com/

http://www.lglassmanlaw.com/

**Photo taken from internet. I Had trouble finding something suitable to post in my own collection.

What's The Hold Up?

When I write my blog, my inspiration mostly comes from the issues that I find my self dealing with on a daily basis. Recently, I find myself dealing with a very slow but steady short sale market. Typically I'm asked the question, when are things going to turn around? I usually say that things have turned and we are through the worst of it. Just look at the closed and pending sales this year.

The bigger question is: what's holding up the short sale market? We can easily be further through these tough times if the banks just figure out a way to get through the short sale glut. There are a tremendous amount of pending short sales on the market right now, and if these could just get processed in half the time it is currently taking, we'd be through these hard times twice as fast!

Simply put, the banks are holding up the real estate market! There are many reasons for this, but for the most part, nobody is truly sure why. It could be because the banks want to wait for a specific fiscal quarter to take a loss, or maybe they only approve short sales once a month, Again, nobody knows for certain, but many people I talk to also say that the banks are simply overloaded and can't get through the contracts fast enough. I mentioned in a previous blog that this should change for the better, sometime soon. Then again, not soon enough.

Either way, the short sale market is like a clogged drain. Unfortunately I'm not a plumber and I don't seem to have any liquid draino around.

For some extra value I offer these few points when buying a Short Sale:

1.) Ask if it's an approved or unapproved short sale? Typically, an approved short sale can take up to half the time as an unapproved short sale! This is because, in order to get the approved status, a short sale must go through the BPO process and be approved by the bank. What tends to happen is that the initial buyer who got the short sale process started, got tired of waiting and took their contract off the table. In the meantime the process went forward without the buyer, and now there is a small window of opportunity for a new buyer to put in a contract after all the processing has been done. A buyer can still get a discount off the price, but if the BPO is current, then the bank would want to get a price close to asking.

2.) How the Seller's Realtor handles the short sale is very important. Each Realtor has their own way of processing a short sale. This one of of the reasons for the overall delay when dealing with a short sale; there is no one, uniform way of processing them. Either way, as a buyers agent I like for the seller's Realtor to put the listing into either back-up or pending status. This should keep prospective buyers away from your listing, as it is no longer showing up as "Active". If the other Realtor is entertaining your offer along with several others, than it becomes a bidding war and like a foreclosure, a quasi auction. This is good for the seller, but not for buyers. Either way, it is important to a have a cooperative Realtor on the other side handling the processing.

3.) Find out who is responsible for selecting the escrow agent and title company. Many people don't understand this part of the transaction, however, it is probably one of the most important parts of the entire process. With whom you put your money with, and how much you will get charged for closing costs is a tad on the important side. The seller may say that they are going to select the title company and pay for the title insurance premium, but there still are some closing costs you will be responsible for paying for.

RADIO CHECK: No longer is the buyer in Broward and Dade county responsible for selecting the title insurance company, at least not for a short sale or foreclosure. What's happening is that the seller will offer to pay for the title, in order be able to get the short sale processed for free. The seller doesn't actually have to pay for anything, because it's the banks who truly pay for it. This enables the title company or lawyer who is processing the short sale to eventually get paid for their work. The buyers don't care, because they don't have to pay the title insurance premium. I don't even think the banks know that they are not customarily supposed to pay for the title insurance policy, but they don't care either, because they'll just short the Realtors commission by a percent to pay for it. Either way, my title business is getting crushed by, what I think is an unlawful practice and a violation RESPA. The buyer will still have to pay for some of the closing costs and never gets to pick the company charging them for those fees.

That's it for now. Feel free to call me to discuss all of your short sale needs.

This is "Awesome A!", signing off. Thanks For Reading!

Aaron Glassman, Broker/Owner
A-1 REALTY GROUP, INC.

http://www.a1realtygroup.net/
http://www.a1titleandescrow.com/
http://www.lglassmanlaw.com/


***Picture taken from the stern of the Carnival Imagination, sailing South from Miami to Key West.

BON VOY-A-GI

As I sit here in front of the computer, hastily typing away, I feel the long toll of the day pulsating throughout my feet. They hurt! I must say that getting ready for my mom's 70th birthday cruise has wiped me out. With so much to do, I can't believe I've found the time to write. Well if you call a quarter to three in the morning the time to write.

It is, however, my duty to bring you, my readers, a constant, consistent and cohesive chapter of today's real estate world. If it were a book it we be called, "The night of the living real estate market." You know that's kinda catchy, not too mention that last Saturday was Halloween.

In my slight state of exhaustion, I jest. It is true, though, that today's real estate market is alive and well. In fact there are several areas of real estate which have been very busy. Foreclosures, which on the the MLS is more like a quasi auction, are having a huge impact on the market.

Short sales, as slow and tiresome as they are, do eventually close.

RADIO CHECK: The short sale process, if you have the time to wait, is a good option for all three parties invloved. It allows the bank to get more than they would if the property went into foreclosure. It allows the seller to be released from the mortgage, while having a lower impact on their credit score than a foreclosure would, and it allows the buyer to tpically buy a property at a discount. Although that may start to change as new comps begin to show up and a base/bottom is developed.

Also, Don't underestimate the power of the traditional sale. I know what you're thinking, "They still have those?" Yes, they do. I, myself, just closed on two properties where neither of the sellers were in distress. The buyer in one deal, in fact, had excellent credit and brought twenty percent down, while the buyer in the other deal paid all cash. In the last year, actually, most of my deals have been either all cash or a lot of cash down. In one case, actually, the seller's brought almost a 100k to the table!

One more thing, while doing some research for a prospective seller in a upscale condo, I saw that in the past four months there were at least a dozen sales in her complex. The closed sales ranged from 600k to 1.45 million. There is definitely money out there, and it's definitely being put to work in the South Florida real estate market!

Buyers, now may be a good time to take advantage of rates close to five percent. Seller's, this may be a good opportunity to list your home for sale. For those of you who still have some equity left in your properties, there are many people actually shopping right now.

So as I set sail into the sunset today, I bid you Avior. Know that I leave South Florida with an optimistic attitude, toward today's real estate market. Yes, while that attitude can quickly and easily change to cynical or pessimistic, know that I am encouraged by the fact that there is a lot of business waiting for me when I get back. Each day brings a new sunrise and with it a new Pina Colada!

This is your host, Awesome A, signing off, and as Bugs Bunny would say, Bon-Voy-A-Gi!

Thanks for Reading!

P.S. I will update today's picture after I get back from my cruise. I should have a more appropriate shot by then. For now you are looking at one of the amazing water slides at Aquatica, in Orlando at Sea World.

Remember to check out our other websites: http://www.a1titleandescrow.com/ & http://www.lglassmanlaw.com/

Also you feel free to e-mail me at : yoursouthfloridarealtor@gmail.com

Short Sale Syndrome

Earlier this week, while at a short sale seminar, I learned several things. I learned that sellers no longer have to be delinquent on their mortgage in order to short sale their property. I also learned that buyers and sellers should not be charged an upfront fee by a Realtor or another third party to negotiate the short sale with the bank, (attorney's excluded). Most importantly, I learned that the short sale process is about to go through some major changes.

The talk is that the banks are going hire large, third party asset management companies to process the back log of short sales that the banks are facing. This should mean that short sales, which for the passed year have had a negative stigma, might finally be the ideal vehicle for buyers, sellers and the banks to move unsold houses off the market.

Explaining a short sale is quite simple. It's when a bank allows the borrower to sell their house for less than what's owed on the mortgage. Explaining the process, however, is not so simple. It seems that every Realtor has their own set of rules, as well as the banks. It's truly one of the main reasons why short sales have such a negative stigma. There is just not a set standard of rules dictating the process.

So, how do we cure the syndrome. It's good news to hear that some changes are coming to the system to alleviate the banks of their back log. Hopefully this will standardize the process and makes things move a lot quicker. So if you are thinking about buying or selling your home as short-sale, you still need to be patient. In time, however, the short sale process will begin to mean what what many people believe it to mean; a quick closing.

The big question is: Will the changes really make a difference? It really depends on what truly changes. There is a lot that both, the banks and Realtors, need to do to make a short-sale a viable buying/selling option. If we can come together and establish a system that is fair and balanced, then, yes I do believe it will make a difference.

Here are some other quick pointers I picked up at the short sale seminar. I like to call them Radio Checks.

RADIO CHECK: The word is, that if you can afford to pay your mortgage then do so, even while going through the short sale process. It should help protect your credit in the long run.

RADIO CHECK: Those who sell their house as a short sale will get a 1099 from the bank for the difference, creating "Virtual Income". Make sure your accountant knows how to properly handle this issue so you don't get stuck paying taxes on money, you didn't really earn.

RADIO CHECK: It may be a violation of RESPA for the seller to force the buyer into using the seller's title company. The buyer may not have to pay for the title policy, however, there are still charges that the buyer will have to incur, and without anyway of negotiating those charges.

RADIO CHECK: - With regards to those of you interested in buying a foreclosure, just because a property is listed for 150k doesn't mean that it will sell for 150k. If the current comp in the area is 200k, you best make sure your offer is in that range. Basically, what the banks have done is created an auction. In where the highest and best offer wins. They price the house super low, get dozens of bids, and then voila, SOLD!

I know that the short sale process is complicated and nerve racking. Please feel free to call me anytime to discuss your short sale at length. I'd be happy to help you list or buy.

This is Aaron Glassman, signing off! That's all there is, there is no more. Have a great day everybody!

http://www.a1realtygroup.net/

http://www.a1titleandescrow.com/

http://www.lglassman.com/

On Fire!

The phone rings. It's a buyer. He wants to put in an offer on a foreclosure. He bids higher than the asking price. I tell him that his bid is still not high enough. I know this, not only because I just went through the same scenario with a another buyer, but because I have an email on my blackberry from the listing agent telling me she has offers way higher than the asking price. She asks me, "Are you sure this is his highest and best offer?" I confirm with the buyer and guess what? His offer is not accepted. A cash offer, instead, for "Way Higher" was selected by the seller.

Simply put. the market is filled with cash investors, snatching up bargains before a first time buyer can get their hands on them. I have, in fact, reports that show many houses selling for more than the list price. This is a great trend for the market, but bad news for first time home buyers, even with twenty percent down.

Pointers:

If you can come up with an additional 10 percent down and have at least a total of 30% down, then the banks may seriously consider your offer instead of an all cash offer. I know that's easier said than done, but if you actually have some extra cash, it may worth be using it to beat out the big boys.

If you have the time to wait it out, then take a look at short sales. It may take a while, but buyers are getting pretty good deals on short sales these days. If you don't have a lot of time to wait, then try finding an approved short sale, or one that has had a buyer recently walk away. This can be a great entry point for a buyer.

Persoanlly, if I can't find the buyer a foreclosure, I ike trying to find non short sales, or what I like to call a normal deal. These are not as easy to come by as one might think. There are not many sellers that actually have equity in their houses. I'm in the middle of a deal where the seller is bringing over 75k to the table. That's not easily done for a whole heck of a lot of people. But if you can find this type of transaction, it usually leads to a seller who is happy to sell in this market, and a buyer who is still probably getting a good deal.

Conclusion:

Recently the market for me has been on fire. Prices are affordable and rates can be had for under 5%, (with points). To me this is encouraging, and with the winter season around the corner, I predict things are going to get even hotter.

Thanks for reading and have a great day!

Aaron Glassman, Broker/Owner

A-1 REALTY GROUP, INC.

http://www.a1realtygroup.net/

yoursouthfloridarealtor@gmail.com

954-326-2663 . cell

Easier Said Than Done

Well it's been a very busy week again for me in Real Estate. Buyers and sellers are keeping me on my toes. I've had several showings for my current listings, return customers with renewed interest in the market, new buyers making plans to visit Aventura next month, not too mention a two day commercial real estate seminar on last Friday and Saturday.

The best thing about this week is the house I have under contract. It's funny because, I'm not a religious man, but while in synagogue earlier this week for the Jewish High Holidays, I found myself praying that the house will appraise.

Recently, I've heard several people say the same thing: "The real estate market is doing better, right?." Yes it is, but only in a certain segment of the market; the lower priced segment. Homes up to 250k seem to be moving the fastest. This is due mostly to affordability, which, don't get me wrong, is a good thing. The big problem, however, is that the inventory for such a product is evaporating. Not too mention, lower priced homes means lower commissions.

Yes there are always new listings, but mostly short sales and foreclosures. Both of which present issues relating to time and availability. Short sales, which can be a good vehicle for buyers and seller's, take a considerable amount of time for approval. Foreclosures are great too, if you can manage to get your offer accepted by the bank. Competition for foreclosures is fierce. Stiff bidding wars against all cash buyers make it difficult for the average buyer to get a contract accepted by the banks, unless you bid way higher than the list price. That, however, may then lead to an affordability issue for the buyer. Regardless, it's not that easy to deal with either circumstance.

That leaves a "Normal" sale, a transaction where the seller is not in a short sale situation and/or the house is not in foreclosure. There are just not many of these types of transactions on the market right now, especially on the lower end of the market. This is making it very difficult to find qualified buyers a house, which is basically making my job a lot harder.

So yes, the market is moving, and yes inventory is low, but it doesn't necessary mean that's it's any easier to sell house these days. If by chance you do get a house under contract, just hope it appraises. That, however, is a discussion for another post.

Thanks for Reading!

Aaron Glassman, Lic. Real Estate Broker

A-1 REALTY GROUP, INC.

http://www.a1realtygroup.net/

AG@A1RealtyGroup.net

***Picture taken in Downtown Asheville. A funky picture for a funky town.

Read Between The Lines

There are times when I can't think of anything to write about, and other times there's so much to write about that I can't figure out how to condense it all into a reasonably readable, cleverly concise, and relatively relative blog.

Not too mention, I've been finally getting some feedback about the blog. It all gets me thinking on exactly what to write about and how to write it. It's as if the blog is starting to take shape by reactions that were caused without intention. After all, it is a cause and effect world.

With so many things to write about it's hard to find one topic to delve into. I've have taken note of several headlines that I've seen recently. I've always said that the media will let us know when we've hit bottom, and the relative condition of the market. During the bust of the bubble we saw nothing but bad news. Now, if you look around, you see positive articles on housing numbers, bidding wars on foreclosures, and incentives for buying now.

Things are getting better, but there's still a long way to go. Keep your eye on local newspaper headlines and articles. Try to recognize whether they are positive, negative or idle. An example of an idle article would be something like a "How to" article as opposed to actual news. Even so, an idle article might reveal some news about the market. So be sure to read between the lines.

Here are a few headlines that caught my eye recently:

**The "Baby Boomers" are still coming to Florida. It is believed that retirees will find there way to down here, especially now that prices have begun to bottom.

**Buying a house that is not in foreclosure or short sale status may be just as good a deal without the bidding wars and wait time.

**Local down towns are not as overbuilt as people think. Ft. Lauderdale scaled back on large housing projects just before the bust. Miami is slowly but surely being bought up by vulture funds and other cash buyers.

**Constant commercials regarding the $8,000 housing credit for 1st time home buyers are all over the airwaves, hopefully enticing fence sitters to buy now.

**Mortgage rates are still at historically low levels, making housing more affordable than ever.

BIG SIDE BAR HERE: But for how much longer, and how will higher rates effect the market and said affordability) The rules and guidelines for real estate never stay the same for too long. Usually when market conditions change, so do the rules on how to govern that market. I mean, just a couple of years ago, there was no such thing as a short sale.

**There is a push by the NAR asking congress to extend the deadline and increase the credit amount from %8,000 to $15,000. Hopefully providing even more incentive to take advantage of current low rates and prices.

And there are new headlines every day.

To sum it all up, there is much to say about the market. The question is, how do buyers and sellers interpret it and more importantly, how can you take advantage of it?

Got any ideas. Be sure to send them to me. I'll be happy to post them. With your permission of course.

Thanks For Reading!

Aaron Glassman, Lic. Real Estate Broker

A-1 REALTY GROUP, INC.

http://www.a1realtygroup.net/

yoursouthfloridarealtor@gmail.com

***Photo taken at The Hyatt, Pier 66, Fort Lauderdale, FL. If you go, be sure to have the burger & fries at Pelican Landing. A quaint restaurant, with live music and a great view of the marina and port.

Enjoy!

Commercial Crash?

Below is an excerpt from an article on Yahoo.com about the next ten financial bubbles. Commercial real estate made the list at #9. Posted Sep 11, 2009 09:17am EDT by Lawrence Delevingne in Products and Trends, Recession, Banking, Housing

9.) Commercial real estate bubble: This bubble is already hissing, if not popping outright. While the economy is improving and some home sales are slowly coming back, the commercial real estate market could get far worse. As The New York Times reports, "Even though industry lobbyists were able to persuade Congress to extend a loan program aimed at prodding the stalled securitization market back to life, several analysts said it was unlikely to head off a spate of defaults, foreclosures and bankruptcies that could surpass the devastating real estate crash of the early 1990s."

As UPI notes, commercial mortgage defaults could reach 4.1 percent by the end of the year, up from 2.25 percent in the first quarter, and Real Capital Analytics estimates commercial property loans worth $83 billion have been involved in default, foreclosure or bankruptcy in 2009.
Badly hit will likely be malls. "The next financial tsunami to hit will be the widespread failure of shopping center mortgages," says Peter Monroe, co-chair of REOMAC, a not for profit trade association to CNBC. "Half a trillion dollars of commercial loans financed on historically low rates, are due for refinancing in the next three years," says Monroe. "The negative impact of these shopping center mortgages is enormous."

Here is a link to the full article, which I found very informative, http://finance.yahoo.com/tech-ticker/article/325783/Ten-Bubbles-in-the-Making?tickers=%5Egspc,%5Edji,xlf

Thanks For Reading!

Aaron Glassman, Broker/Owner

http://www.a1realtygroup.net/
Ymailto:YourSouthFloridaRealtor@gmail.com

***Photo copied from my title company's website http://www.a1titleandescrow.com/. I did not take this picture, however my wife did work in the buidling, on the 35th floor. The building is usually showcased on television, especially during coverage of local sporting events.

"Don't Let Me Down"

Deflated, disappointed, sad, angry, and frustrated. These are just some of the feelings Realtors feel when buyers over promise and under deliver.

Every once in a while a customer changes their mind and decides not put that offer in, or decides to use another Realtor after spending weeks or even months working with you.

Simply put, that's the business. You learn to live with it. Or do you? The question is, how do you protect yourself? I know the buyer's broker agreement is a good vehicle but most buyers feel uncomfortable signing one. Agents should get into the habit of at least asking the buyer if they would consider signing one before going out to see properties.

Sure, are there exceptions to the rule for not getting one signed, no, (I know you thought I was going to say yes). Do we make exceptions to the rule for not getting one signed, unfortunately yes we do. That's when, not the buyer burns us, but rather we burn ourselves. I know it's uncomfortable. I, myself, hardly ever use such an agreement, but now I know better.

So, what's the best way to determine if you should ask a buyer to sign one? The simple answer is that there is no simple answer. I'm sure every realtor does it differently.

Here, however, are a few things to consider before working with a customer who won't sign a Buyer's Broker agreement. First, try to determine how long you think it will take to find that buyer a house. In this market it can take quite a while, especially if your buyer is not a cash buyer.

Also a good determinant is to figure out how many areas do you plan on visiting. Does the buyer know what they want, or where they specifically want to live? If not, then you can be in for a long haul.

Of course there are many more ways to help determine who is worth working with, but like I mentioned earlier, there is no simple answer on how to do it the best way.

In closing, the "Let Down" may be part of the business, but your dissapointment can be lessened if you don't "Let Down" your guard.

Thanks for reading!

Aaron Glassman, Broker/Owner
A-1 Realty Group, Inc.
YourSouthFloridaRealtor@gmail.com

P.S. If you have any good ideas on how to screen buyers, feel free to let me know. I'll be happy to post your thoughts and share them with the rest of the World.

***Photo taken of Molly at Tweetsie Railroad, Summer '09. A cap gun went off and scared her.

Just Another Day In Paradise

WOW!, things ave really ignited. Very little time to blog, but must tell you all that the South Florida real estate market has to have hit bottom.


I showed a foreclosure the other day. In the 10 - 15 minutes I was there, 5 other parties came in. At one time there must have been about 15 - 20 people that walked through that house. Several of which were scared off by all the competition. I picked up a new buyer. That was cool.



Also, our friends North of the border are back. I've been out with one couple this passed week, and have another couple flying in next month.



Throw in two qualified buyers with good credit and 20% down, mix in a rental here and there, sprinkle in an investor or two, and hey, I have a thriving real estate business!


Put in a solid offer last week on a foreclosure: all cash, three thousand dollars above asking, close in thirty days. Didn't get it! Six other offers were presented. My guess is someone paid more, and with the appraisal issue, they probably paid all cash.

Well that's it for today. Told you I had no time. I'm busy preparing two contracts, searching for homes for my new buyer, preparing my tax returns, watching cool RUSH videos on You Tube, and listening to cool RUSH bootlegs and altered tracks on http://www.rushisaband.com/. No not Rush Limbaugh. I'm not a big fan of his, but rather that super rock trio from North of the border, RUSH.


"You can miss a stride, but nobody get's a free ride!" - Peart.

Thanks for reading!


Aaron Glassman, Broker/Owner
A-1 Realty Group, Inc.

http://www.aaronglassman.com/
a1realtygroup@gmail.com



***Picture taken Today while showing a unit at Hollywood Towers, 3111 North Ocean Blvd., Hollywood Florida. Just another day in paradise. I think I'll use it for marketing purposes in the future. Let me know what you think.


AG

Optimized Optimization

Wow, if I had a dollar for every time I got approached by someone who wanted to optimize my website on the web, I wouldn't be super rich, but I would have enough money to buy some really good coffee right about now.

I believe that one day I will pay for this service. I'd like to see, however, the service I've already paid for actually produce results, (like the website company said it would) before I spend the big bucks to pay someone else to "Optimize" me.

My website company said I would capture more leads on my website if I spent more money on products to enhance it. Now they want me to pay more to 'Optimize" my website so that it gets more traffic on the web. It sounds like what they really want to do for me, is take more of my money.

Let's see, I already have a twitter account, and a Facebook account, getting ready to link myself in, my website is enhanced, and I have a blog. How much more do I have to pay to see results?Well, by the looks of it, a lot more. The last quote I got was $3,000 a year, and that's just for 25 keywords. I think I'll enroll in a search optimization class at the local community college before I spend that kind of money. How much does a college credit cost these days?

Like I just mentioned, I think one day I will pay for an "Optimization" service. I do think it can pay off. There are just so many companies that do this sort of thing, that I will take my time in choosing one. No matter what I decide to do, I'll keep my readers posted.

Thanks for reading!

Aaron Glassman, Broker/Owner

A-1 Realty Group, Inc.

http://www.a1realtygroup.net

aglassman1@bellsouth.net

*photo taken at a Marlins baseball during this season.

Catching the Moving Market

Yes, I know It's been a while since my last post. Writing these things takes time and more importantly discipline. I cant' promise anything other than to do my best to stay current and to hit the target.

Speaking of which, hitting the target in Real Estate today is getting harder and harder. REO's and other great deals are moving so quickly, that it's been hard to strike the bulls eye and get houses under contract. Frankly speaking, my buyers can't get their offers in fast enough. There are some other snags along the way, like houses not appraising, and the fact that sellers don't have enough money to come to closing to cover the difference. The main point, however, is that the market is moving quickly. Cast you rod in the right spot, and be ready to strike while the iron is hot!

Quick pointer, if you see a house you like in the beginning of the week, try and get a contract finalized before the weekend. Most people see homes on Saturday and Sunday. Be first in line by taking some time to look at properties early in the day and early in the week. Believe it or not, there is competition for properties these days, especially REO's. So put your cat like reflexes to work and get ready to pounce. It may take a few times, but nobody ever said that hitting a moving target was easy. Either is selling real estate.

Thanks for reading!

Aaron Glassman, Broker/Owner

A-1 Realty Group.net

http://www.a1realtygroup.net/

aglassman1@bellsouth.net

**Photo taken at the Valle Crucis Park in Valle Crusis, NC by me on the last day of my Summer Vacation on July 14, 2009.

Being on vacation has it's advantages. You are able to get the perspective of, not just the real estate market, but an overwhelming larger financial picture. While traversing the blue ridge with our trusty Acer Aspire One Mini Netbook, (Velvet red) my family and I have been wittiness to several different economies.

The Ritz outside Atlanta was fully booked. Asheville the other day was bustling. The Sonic in Franklin, yes Sonic, was hoppin' last week. But here, in the High Country, times are tough. Construction jobs are way down, no one is building, or remodeling, The real estate market, as one friend gestured the other day, is a big thumbs down. Worst of all, locals are not spending, (what I believe is due to fear). Bottom line, the money is out there, just not everywhere.

The funny thing is, or not so funny thing depending on which side of the market your on. is that business was ridiculously slow in South Florida, for what seemed to be forever. The past six months, however, have been relatively busy, which a hiatus here or there. But here in the High Country of North Carolina, things are dreadfully slow.

Home prices, have not dropped enough, and there doesn't seem to be a tremendous amount of foreclosures to warrant any signs of recovery. 399k for a 3/2 with a view is still way too high a price for anyone to pay. For some reason. the prices of these second homes have not dropped far enough. One of my theories is that most of the people who bought second homes, could afford a second home. They can't however, afford a foreclosure on their credit report so they are keeping the houses at higher prices because they can afford not to sell.

The reason doesn't really matter, the fact is, is that there is not a lot of work anymore, and people don't have the money like before to spend. Now, I've heard, in the just the last couple of weeks, things have finally have picked up. The Flor-Idiots are in town and everyone is snapping up some of the extra business. I know for sure that we've contributed to the local economy. Hopefully, some of our renewed South Florida "Foreclosure" market will have a residual effect up here in a place that can really use it.

My point: South Florida is on the right side of the real estate market. We, at least, have a market, and people are busy closing transactions. Just look at the last six months pending and closed sales stats. The good news: It's going to continue for a while. The bad news: eventually we will clean house and there will be no more "Foreclosure" market. That's when we'll really be tested.

By the way, we are having a great time on vacation in N.C. Thanks to the bustling real estate South Florida real estate market, of course. My new Netbook has been a faithfull companion, giving me her all when I've need her the most. If you can pick one up, I highly recommend it. It is so choice! Oh by the way, I am slowly, but surely becoming quite the BBQ maven.

Here are my Top 5 Favorite BBQ places in the High Country:

1.) Ridgewood, Johnson City, TN

2.) 12 Bones - Asheville, NC

3.) Old Hampton Store - Linville, NC

4.) Phil's BBQ - Black Mountain, NC

5.) Banner Elk Cafe - Forget the BBQ and order the burger. The best burger in Banner Elk and Beyond!

There were so many other great points of interest. Please feel free to contact me about some of our favorite things to do while visiting. Also, don't hesitate to talk shop. If you are interested in knowing more about local real estate in the High Country, allow me to refer you to local professionals who have extensive knowledge of the area and market.

Well that's it for now. Sorry for the delay, I've tried for a long time to post something. There was a lot to say and it took a couple of tries to get it right. Plus, I've been kinda of busy having a good time!

Thanks for reading,

Aaron

An Active Market

Whether or not this the bottom of the market, one thing's for sure, there is at least a market. It's the foreclosure market, with a sprinkle of short sales, (which I hate to be involved in). Yes there are still are some traditional closings, but that's not where most of the action is.

In that past six months the foreclosure listings have disappeared. People have taken advantage of the low prices. Over half of the active listings that were on the market are either closed or are in pending status. More than anything, money is flowing again. With so many transactions taking place, there must be somebody making money. There must be somebody staying busy.

Indeed there is. Realtors who are fortunate to get REO listings, or have investors buying with all cash. The law firms and title companies fortunate enough to get the bank's business and close deals. Inspectors, surveyors, appraisers, lenders, The Home Depot, are all busier than they've been in a while. I, myself, have been working with investors, then helping them rent their recently bought foreclosure.

Now I find myself shopping at The Home Depot, fixing up my own bathroom, adding a new pedestal sink. My G-d, did I really just buy a hibiscus tree and plantern. I can't remember the last time I bought anything relating to landscaping. The point is, the longer I stay busy, as well as do my counterparts in the business, then the more my money, and theirs, will trickle down. By the way, I'm seriously considering buying some Home Depot stock.

I've even seen ads on television selling foreclosures that were recently bought from the banks and are now being sold at "Rock bottom prices" The ad went on to say that all you need is a job and a low down payment. In essence, vulture funds have paid little to buy foreclosures, fixed them up, and are now reselling properties for a profit, as well as lending the money to do so. The risk of lending has been taken out of the banks hands and been put into traditional investors lending private money. This ad alone tells me we have turned a corner as new business practices have evolved.

So how long will we continue to see foreclosures pop up on the market. Not sure exactly, but word is that there is still more to come. The first wave was sub-prime the next wave is to be those loans with arms that are expiring. Eventually we will flush out of all the crap. Let's just hope rates stay low enough to support buying power once the cheap stuff is gone.

Please don't hesitate to call me with any questions regarding the South Florida real estate market. I can be reached on my cell at 954-326-2663. Allow me to be "Your South Florida Realtor." I'll be there every step of the way.

Thanks for your time and have a great day!

Be sure to visit these other informative websites:

www.a1realtygroup.net
www.lglassmanlaw.com
www.a1titleandescrow.com

I had a conversation with a customer today, an investor.

He says he doesn't see the market stabilizing but rather still declining.

I had the completely opposite view.

Why, because in just about every community I search through, I see several, if not many pending and closed sales within the last 90 days. That tells me the market is moving.

I also see something very telling. During this last down market, it used to be that when a seller decided not to take the first offer that came their way, the next offer would be lower.

These days I'm seeing second offers, (from a new buyer) that are higher than the previous offer. Also, the numbers show that the sales prices on recently closed listings are more than the actual list price. People are bidding the price up and are willing to pay more than list in order to secure a property. This is quite a reversal.

NEW NUGGET: REO's/Bank Owned Foreclosures are no longer priced below market value, but at market value. Movement in the market is so swift for REO's that the bank is now able to sell them within 7 - 14 days after listing. A new base has been set in some communities, which has been helpful in stabilizing the market.

The big question is interest rates., Yes, rates have gone up, but for how long. Will we see another a retreat anytime soon? I hope so, I don't have a Crystal ball. What I do know is that the higher interest rates go the, less affordable owning a house becomes. Subsequently, prices may have to continue to be reduced in order to stay affordable. Historically, however, rates are still very low and overall home ownership is still possible for some people.

QUICK SIDEBAR: FHA loans do work for some sellers. Don't be afraid to use this tool, which assists buyers and sellers, and of course, Realtors. Sure the seller has to contribute to closing costs, but FHA loans are a nice vehicle for driving the deal to closing. I hate to say it, but Seller if you find yourself in this situation, negotiate with the buyers Realtor to help pay the closing costs. It's can be a win, win , win for all parties involved.

Well, thanks for reading my blog. Feel free to call me anytime to discuss more about the South Florida Real Estate Market and how you can take advantage of the recent down market.

Remember, we're with you every step of the way, thanks again, and have a great day!

Ivestment Buying Strategies

Today is a great day to take advantage of opportunity. Then again, so is every day.

If you are buying an rental property for monthly income, then make sure it has a decent cap rate after expenses. Getting a 6% cap rate,(return) on your money is typically a good rate of return on real estate, for the long term.


If you are buying real estate for long term appreciation, then it's a little different. The rate of return on this type of property is sometimes not as high as 6%, and you might even find yourself shelling out some cash every month. One of my investors is okay with this strategy, as long as the rate of return is higher than what the banks are giving you and the property is premium.
This strategy works well when you actually plan on living in the house for at least 5 - 7 years, if not longer.


Also, after further review, forget about the short sales and go after foreclosures. They are usually priced below anything else in the market and the response time is much quicker. The only caveat being that, sometimes these deals don't close on time. With so many foreclosures to deal with, the banks can't process them fast enough. My last foreclosure closed a week late, and I was nervous, but the deal finally went through. I was nervous, because foreclosures come with contract addendum's that favor the bank. It's nerve racking to not exactly know what going on and you think the bank is going to back out.


Another caveat to foreclosure buying; the room for negotiation is small. Usually at best you're looking at 5% off the list price, especially if it is newly listed. the longer it sits, however, the more negotiating power you have, but with foreclosures coming and going off the market faster then ever before, you don't find them just sitting around anymore. When you see something you like, and the numbers make sense, then be prepared to strike while the iron is hot!


That's it for "Today in real Estate" Thank you for reading my blog.

Please remember, I'm a real estate broker, my wife is a real estate attorney, and together we own a title company. "We Work Together To Serve You Better"

Be sure to check us out on the web at the websites listed below to find out more about us

http://www.a1realtygroup.net/

http://www.a1titleandescrow.com/

http://www.lglassmanlaw.com/

Are we at the bottom?

In my opinion, we are definitely at the bottom, if we haven't already passed it.

I do believe that from January through March of this year was the time to snatch up all the best deals. A floor has now been set and we are establishing a base in some communities.

However, rock bottom prices + rock bottom interest rates = great opportunity and lots of pending sales.

This is a great time for an investor paying with all cash. It's also a great time for a growing family, or perhaps even a good time for empty-nesters to downsize.

If I'm not mistaken, portability is still available. Not too mention that the government is giving an $8,000 dollar credit! Also FHA loans only require 3.5% down. That's a lot less than the traditional 20%, which nobody has anyway.

The only problem is that most of the good stuff, (foreclosures) are already gone. In Broward county alone, the foreclosure listings are down 50%, from over 1,000 single family homes in February to just over 500 today.

The good news?

A local asset manager tell me that there is a Tsunami of foreclosures on the way, which means we will probably be at the bottom for a little while longer. And besides, there are still some great deals out there.

Also, don't be afraid to go after a short-sale if you like it, just be prepared to wait for an answer and even increase your offer. Remember that base I mentioned earlier? Don't be surprised if you get into a bidding war with another buyer.

Also, just like in any other real estate deal, time is of the essence. The good one's go first. You should be prepared to strike while the iron is hot!

That's it for "Today in real Estate" Thank you for reading my first ever online blog. Check us out on the web at the websites listed below, and please remember, I'm a real estate broker, my wife is a real estate attorney, and together we own a title company. "We Work Together To Serve You Better"


http://www.a1realtygroup.net/

http://www.a1titleandescrow.com/

http://www.lglassmanlaw.com/