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
Monday, June 29, 2009
Tuesday, June 16, 2009
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!
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!
Wednesday, June 10, 2009
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/
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/
Thursday, June 4, 2009
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/
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/
Subscribe to:
Posts (Atom)
