Finding a home for the holidays.

You might think that real estate action lulls as people shop, handle holiday commitments and host visitors from near and far this time of year. The truth is that many buyers want to get settled in the New Year and start 2009 in a new home.

If you are a seller, consider that many buyers might be off from work this week and have plenty of time to visit for-sale properties -- maybe even yours. Be a smart seller. A smart seller will be prepared and accommodate each showing requested. The more people who visit, the more likely your home is to sell.

This is the time when families visit their Florida relatives and enjoy this beautiful weather, thus creating the desire to move South to our beautiful Brevard County. Local people shop real estate over the holidays and our northern friends think again that this may be the year to buy their dream home or condo in Florida . . . and it is.

With prices low, investment returns in the stock market volatile, interest rates low and a great deal of inventory from which to choose, there is no better time to buy. Think investment. Think about the returns on this long-term investment: condos on the ocean and river, townhomes and single family homes of every price range.

What more could a buyer ask for? Interest rates at a 27-year low are hard to pass up. Consider discussing with your financial planner your options on how to take advantage of these opportunities. Ask if real estate makes sense for you as a long-term investment in addition to a place to live. Conservative and comfortable is the only way to buy.

As I sit writing, I am visiting family in Washington D.C. Needless to say, I am freezing as I reflect on the Florida sun and the cool but comfortable winter breeze over the oceans and rivers.
Yes, it is nice to visit the busy city. It is exciting and tempting to stay, but me, I am a native Floridian and the call of Florida sunshine is always near even as I travel.

Consider benefits of Fla. residency.

As the snow falls in the north and the winter winds begin to blow, the beautifully calm rivers of Brevard County this time of year often reflect the images of spectacular boats adorned with Christmas decorations. What community can boast nearly as many holiday boat parades as land parades?

Northerners migrate to our beautiful climate and calm waters to escape the weather in their home state. Many come just for the season, but many are swayed by our windows-open winters and stay much longer. And beyond the climate, there are other reasons to stay.

Take income taxes, for example.

Look at the benefits of buying here, establishing residence here and saving the income tax that was paid to the state that one came from. A great neighbor and friend related his positive experience on becoming a Florida resident but keeping his home in Rhode Island. Some states, for instance, have expensive state income taxes and laws that define residency as six months a year.

That may mean that one could live there for 5 1/2 months, establish residency in Florida and pay no state income tax. What a way to retire. All that money you save on state income tax up north could be applied to paying for your new home in Florida. My friend has discovered something very valuable in Florida residency.

Speak to a Florida accountant and verify the residency requirements in your state as compared to Florida. This may be an opportunity that you do not want to miss. While real estate is low, buying now may be the right move.

I urge each and every one of you who need help keeping your home to contact your legislators and give them the details of your plight. I am shocked by the stories of homeowners that need a counselor or a "real person" to speak to regarding escalating mortgages and homeowners who face foreclosure due to job loss or medical bills. If the bailout was only used to help the banks to survive and not the people, this is a sad state of the nation.

Options exist for struggling owners.

We've been hearing a lot about foreclosures and short sales lately. A foreclosure takes place when the owner of a property stops making mortgage payments, and a bank or lending institution takes legal action to take ownership of the property. Those properties are frequently sold by the lender to recover a portion of the original investment. A short sale is when a lender allows a property to be sold for less than what is owed on the mortgage.

Both instances can devastate a homeowner's future and lenders' bottom lines, and both should be avoided if at all possible. Realtors can help walk buyers (and sellers) through the process on either side of the transactions. Before you let a foreclosure proceeding take your home, try to negotiate with your lender. Before you lose your property, communicate with the lender and possibly negotiate a short sale.

If you are capable of making lower payments, there is help for you and you may be able to keep your home. Right now, the cards are stacked in your favor if you are a homeowner facing foreclosure or a short sale. To receive the serious attention of your lender, you should be an owner occupant. Investor owners might not receive the same consideration.

If you are strapped with an excessively high interest rate, one that has escalated from an affordable rate to an unreasonable or unaffordable rate, you must get to your lender and plead your case for a lower rate or longer terms. Either way, you're looking for a lower payment.

In my opinion, you are the victim if you qualified for the loan at the teaser rate and then suffered when the rates adjusted upward. If I were in your shoes, I would make it my top priority to correct this injustice.

This is my suggestion: Call and speak with your former loan officer or equivalent person in the lending institution that holds your mortgage. Move up to the top supervisor if you don't make progress. Keep a good record in your calendar of who you spoke to and what help is offered. Keep moving up to the highest person with whom you can speak. Follow your conversation with a certified letter.

If you receive no encouragement or help, then it is time to talk to your elected representatives. Your local, state, and federal government representatives should be ready to listen and offer suggestions for help. Helping homeowners to keep their homes . . . isn't this what part of the "bailout" monies were designated for?

Starker exchange has some benefits.

A recent article in FLORIDA TODAY highlighted the importance of happiness and its contagious nature. I believe the same is true with our attitude in this economy. Isn't it just as easy to believe in a positive future instead of a negative past or present?

This contagious epidemic of optimism could spread to the retail community, the new employees relocating to this area, the community leaders, our snow birds and each and every person living or visiting in Brevard County.

The facts are encouraging.

Brazilian jet maker Embraer is set to take off with the promise of 200 new positions, threads of possibilities for enhanced scientific research in space exploration are appearing daily, giving hope for the continued employment at Kennedy Space Center.

The optimism is perpetuated as the activity in real estate continues to emphasize fewer listings coming on the market and the volume of sales continuing to increase. Long-time investors are seeking more in the way of capitalizing on this market: that is "sell low, buy low." The long-time investor who has real estate holdings that have been depreciated for tax benefits are selling through what is called the "1031 exchange" method. The 1031 or Starker Exchange provides for buying replacement properties to enhance the tax-deferred purchase.

The investor should verify with their accountant that the depreciation process can now begin again. The wise investor meets with a good accountant and creates a plan to enhance wealth through government sanctioned write-offs. A 1031 allows a seller of like/kind investment property to defer taxes on the gain after the sale, if very specific rules are followed. One can then, purchase similar properties while an intermediary holds the funds from the first sale prior to the reinvestment in the next purchase.

An experienced Realtor can assist and direct the investor to the proper closing agent/attorney for procedural requirements to assure the investor of the 1031 exchange as allowed by the government.

New investors entering this market should be conservative in their investment purchases. New investors should be well advised as to the pros and cons of their investment. The tax benefits are great for those who can afford this purchase. Let the optimism continue as we all look at the positive sides of this very different economy. Smart people look at the benefits.

Paying cash has its perks.

A new president . . . new programs for homeowners in trouble . . . clear, crisp and cool weather . . .

Let's be optimistic. We have reason to be.

New companies are building corporate headquarters on the Space Coast, new cruise ships are under construction and bound for Brevard County, and a standalone convention center is expected to open early next year at Port Canaveral.

The economy in Brevard County, although affected by the recession, is a pocket of fresh air when we look at other locations around the nation. This is not to minimize the fact that we all are still tightening our belts, unemployment is up and we all are feeling the hit of this significant economic downturn.

Still, we must count our blessings. As the snow begins to fall in the North, the real estate market begins to pick up in the South. Our snowbirds entertain thoughts of settling into Brevard County. Condominium prices are the lowest in many years. This market is tempting our seasonal residents to purchase instead of renting. And this is an intelligent decision for our Northerners. While the stock market continues to be volatile, the real estate market continues to show the signs of stabilizing.

Prices are not going up and will not for some time, however, the stability and consistency is shown in the increased activity each and every month in the volume of sales. The hot deals will not be here forever. Listing inventory continues to shrink and market activity continues to increase. Programs for easier financing are beginning to become available but many buyers are opting to pay cash for their purchase.

Cash from savings or liquidation of retirement funds are freeing up buyers to an easy purchase in this buyer's market. A clever alternative and a safer alternative, is the purchase of real estate as a home or investment property. For negotiations, cash buyers continue to have the leverage in today's market.

Where else can one purchase a home in the $60,000 to $100,000 range? Where else can one find an oceanfront condo for under $350,000? Brevard County is one of the most affordable areas for real estate. Combine this with the quality of life in our beautiful county. Meandering waterways, clean beaches, breathable clear air and wonderful friendly people, offer relocating families, the "best" of life.

Retire on real estate?

We are witnessing the "plunge" of the stock market. We have already witnessed the "plunge" of the real estate market. Where do we go from here?

The real estate market is reported to have "bottomed out" or is close, anyway. No one has a crystal ball that can assure us that this is true. Past cycles and current statistics all indicate that the real estate market is forecast to rise in the future. Current and consistent increased activity in sales indicate that this is true.

Real estate, for investment purposes, is a long term commitment. Now that we have weathered the worst stage of the real estate market, it would be logical to assume that real estate would now be a wise investment.

The stock market looks riskier these days.

For those of us close to retirement, we cannot accept this risk. Can we cautiously withdraw this retirement money and, with the expert advice of a financial counselor, invest our IRA in real estate? With the real estate market at a low and predicted to begin to increase over the next three to five years, this might be the time to purchase retirement property without selling our current home.

We buy the retirement property in a low market and wait to sell our current residence over the next three to five years and predictably, obtain an increase in the current residence. We will have capitalized on the current low market and we win on both ends.

The best bargains in real estate are still available in the condominium market. Current statistics and past stagnation in the vacant land sales indicate that this area, too, offers some good values. Cash buyers, using their retirement portfolios, have a tremendous edge in negotiations in this real estate market.

Cash offers are typically lower than offers with a mortgage contingency but these offers have an extremely high possibility of closing, whereas the offer with a mortgage contingency still has to have bank approval with excellent credit from the borrower along with validation of income and a current appraisal at or above contract price.

The key to buying in today's market is still "location, location, location"! As the snow begins to fall in the Northern states, oceanfront and riverfront condominiums here in Florida consistently attract buyers. This is a terrific time to switch your investments to real estate.

Be cautious, be careful and work with a professional.

It's up to us to help.

Two important issues can assist many in today's economy. Two important issues can assist home buyers and home sellers.

The first issue is that of overpriced properties on the market.

A story late last week in FLORIDA TODAY headlined "Realty's Reality hits home" really stuck me as serious.

I have always given sellers, when I am representing them, the opportunity to begin a listing with a higher price than I have recommended. I tell them the truth, as I see the market, but I want to give the seller the benefit of the doubt on price because reducing a price is much easier than raising it. Realtors give an opinion of value, but we always hope that the home will sell for that which the seller wants so that the seller is happy.

On the other hand, when working with a buyer, we want the best deal possible so the buyer is happy. In spite of its beauty, extras, condition and original price, the home must be priced sensibly. Let's all stop dreaming and get to the truth in this market. Let's reduce the overpriced properties.

The second issue is truly paramount in Florida and throughout the United States. This issue is the "The new home-loan aid." As I read and study this plan, I am astounded at how few people will be helped.

How can we say that we are assisting homeowners in trouble with mortgages they cannot pay if fewer than 2 percent of the troubled homeowners will be helped? Yes, according to my interpretation, government officials "had no estimate of how many homeowners would qualify but these are their guidelines:

--- borrowers would have to be at least three months behind on their home loans.

--- borrowers would have to owe 90 percent or more of their homes' values.

--- Investors are excluded.

--- borrowers who have filed for bankruptcy are excluded.

Qualified borrowers would get an interest-rate reduction so the borrower would not pay more than 38% of their gross income. Loans could be extended to 40 years, and some principal could be deferred interest free. This is a very weak. Is there a better way?

The first step if you are in trouble or going into trouble: Ask your lender for a rate reduction, an extended plan for payment, forgiveness for one or two payments. Do not stop asking.

The National Association of Realtors is recommending that the $7,500 first-time homebuyer tax credit be made available to all buyers and eliminate repayment. NAR also recommends "Getting the Treasury relief program back on track and targeting more funds to mortgage relief."

If you agree, call and write your legislators to become involved and back programs that help many people, not just a small percentage of those in trouble.

Rental investing is back.

A new president will bring a new market . . . change fosters change.

Speaking with several appraisers this past week, the biggest change in the real estate market may indicate that investment in rental properties may begin to be cost-effective. For so long, the purchase price, amount financed and the cash flow on rental income could not justify an investment purchase of rental property.

Now we are close: Investors may be able to break even buying a property with a 25 percent to 30 percent down payment, financing the balance at the current low interest rates and renting at a competitive rate. This is a sign that more investors, conservative investors, may begin to enter the market.

Investors in today's market are conservative and financially sound. Many people are pulling out of the stock market and looking at real estate as the diversification needed in their portfolio. If you are just beginning to look at real estate as an investment, some guidelines for landlords are necessary.

--- Conservative should be the key word. "Cautious and careful" should be the investor motto.

--- Select a property for its location as land appreciates and buildings depreciate. Scarcity creates demand and demand brings a higher chance of future market appreciation. The property you select should be rentable.

In keeping with a conservative approach, an investor should buy properties that he or she can afford to have vacant for at least one year.

--- Properties that are in an excellent location with a good floor plan, freshly painted in neutral colors, and meticulous in condition and cleanliness will rent well and within a reasonable period of time.

--- The rent you receive is second to the quality of your tenant. That is, having a tenant who pays the rent on time and maintains the property should be a priority for an investor. Not all good tenants have excellent credit, but a good tenant can honestly justify a credit problem caused by health issues or job loss.

--- Long-term tenants bring consistent income. Tenants who report problems with the property are helpful to a landlord who takes pride in his/her property.

--- Maintaining your investment in rental property will bring a return when you sell. A real estate investor should look at the investment as long term.

In my opinion, a five-year minimum on holding the investment property is necessary for the return on the investment. Tax advantages are still a part of being a landlord. Your accountant can review with you the depreciation and appropriate write-offs on your taxes. A 1031 or Starker exchange are still viable alternatives when selling in the future and deferring taxes on the return of your investment. A good Realtor can assist you with the guidelines.

Brevard a bright spot in economy.

People across the nation have lost their homes and many have lost their jobs. The stock market has shown unprecedented volatility that will leave its mark in the history books. Real estate has dropped to its lowest point in years. The year 2008 is negative in most respects.

Yes, we have tightened our belts, learning to conserve where we can. We have prepared our children and grandchildren for the need to spend less and save more. Some of us have had to acclimate to substantial losses in our retirement portfolios.

We look conservatively at future purchases. We have watched as many have struggled to keep their homes and we have waited for the banks to begin positive communication to assist our neighbors.

In Brevard County, in these respects, we are not so different than the rest of the communities in our country that are struggling and attempting to tackle the same problems. Help for those in need is beginning to emerge. Banks are communicating and assisting those homeowners to find ways to save their homes from foreclosure or short sales. The federal government is lowering rates again to help spur the economy. Programs are available for qualified buyers to purchase in today's market. The stock market is still volatile but showing a glimmer of positive signs. The price of gas is going down each day.

Specifically speaking, in Brevard County, we are more fortunate than the rest of the United States and even more fortunate than surrounding counties. We can still boast that we have "affordable housing." Offering a wide variety of types of housing is still luring people to our area. Oceanfront and riverfront condominiums and townhouses are available at reasonable prices. Golf course homes, large country lots, cottages and castles . . . simply spectacular, this place we call home.

Our large businesses are showing positive results of their soon to be year-end numbers. Our housing industry is showing continued increase in the volume of sales.

The weather is beautiful, the grass is green. We will retain our clean beaches and rivers . . . we will continue to see spectacular sunsets amidst the clear clean air and Brevard will march onward and upwards to a better standard of life and with more awareness of how life changes in minutes so we must treasure this life.

We have come full circle in prices of housing in our county and now is the most perfect time to buy.

Homes taking less time to sell.

Interesting statistics for the past three months in Brevard County still indicate that fewer properties are coming on the market, but the amount of new listings is exceeding the sales slightly. The positive mark is the continued increase in properties coming under contract, that is to say, properties that are approaching closing. We in the business call these "pending" or "contingent" sales.

The number of days on the market has been significantly reduced over this past year and now stands at 122 days. This would indicate that a well-priced property should sell within three to four months. If your property has been on the market for more than three or four months, you need to re-evaluate the following: Price, curb appeal, cleanliness and its overall showability. If your house is priced right and shows well and still hasn't sold, you should find out if something in your area is affecting your property or is it getting the proper exposure to buyers.

Among the factors that can slow a sale are:

--- Floor plan that doesn't appeal to a wide range of buyers.

--- Location considerations, such as traffic or nearby undesirable businesses.

--- Neighborhood considerations, such as a nearby property that isn't maintained.

Often, the only solution is a price adjustment, even though that's not what most sellers want to hear. But if you are motivated to sell, a price adjustment will most likely assist in moving the property. I was asked to supply statistics on sold properties that were foreclosures or short sales and at this point, I am unable to access and rely on the information I have for these types of properties.

I do have some advice if you, as the seller, are debating whether to enter into a sale of your property via foreclosure or short sale. These are desperate measures that will affect you for years to come.

If you have equity, just continue to reduce the property for a quick sale. If you have no equity, this is the time to talk to your lender. Programs are coming on line and lenders are prompted by the government to listen. There is still no guaranteed assistance available but I advise you to hang in there.

Help is inevitable with the economic crisis and the push to assist owners in need. Brevard County is still high on the economic curve. Government contracts are still in force and fueling our economy. Our chambers of commerce and Economic Development Council are actively recruiting new businesses into our area. We have a great deal to offer families relocating here and a tremendous benefit to businesses moving into our area.

Stocks, homes seesaw...

Someone once told me that real estate and the stock market were much like a seesaw. When the stock market goes down, real estate goes up and vice versa. There is still too much inventory and not enough buyers in this real estate market to allow for price increases.

We do not qualify as a county or a state with a shortage of available real estate, but the fact is, there continues to be an increase in the volume of sales of existing homes and fewer homes are coming on the market each month. So the supply is dwindling due to fewer homes coming on the market each month combined with the increase in the number of homes closing.

Therefore, the dynamics of the seesaw effect are in a way, working to the benefit of the real estate market!

It is still imperative that if you are a seller, you must price your home correctly and market it properly, in order to sell in today's market. If you are a buyer, it is imperative that you secure preliminary loan approval before contracting on your home purchase. The buyer has a great selection to choose from and a great interest rate can be secured from lenders.

Homeowners facing foreclosure or short sales, hopefully, will see light at the end of this dark and gloomy economic tunnel as the government enacts programs of assistance with lenders to lower rates or payments to rescue those who have fallen behind in payments. This is the time for homeowners in trouble to communicate with their lenders and stay abreast of programs soon to be available for homeowner assistance.

Lenders are strict for new loans. The "jumbo" loan programs are often requiring more than 20 percent down payment. For loans higher than $2 million, lenders are offering 75 percent financing and a five-year fixed rate amortized for 30 years but adjusting or ballooning at the end of five years. The conservative changes in this luxury home market show that lenders are not willing to keep a large loan (over $2 million) for a 30 year fixed rate in their portfolio of loans. The conforming loans with 20 percent down require excellent credit and verification of job stability.

Still the FHA and VA loans continue to be the most popular in the state of Florida with minimal or "no" down payment. Motivated sellers are will to pay buyer's closing costs to secure this type of financing.

The problems in the economy have some silver linings -- not a lot of silver but a glimmer of hope for the future!

It's time for us to tighten our belts.

Home sales are increasing in activity, in spite of the downturn for the economy. Home ownership truly is the American dream. You might have ridden the wave of property inflation and found that today's prices are back to normal or even more affordable than that -- affordable both in price and in mortgage terms.

Interest rates are low and may be dropping slightly lower. Buying power is at a high with wonderful values surrounding us. Placing most of your life's savings into your home is a safe bet for long-term appreciation. Real estate should not be thought of as a fast turnover market. It is a market that is typically slow to change. Appreciation may not be rapid but it most likely will be safe and consistent.

This is the kind of market in which our parents felt safe placing their hard-earned money into as a home down payment. This is the kind of market where one would like to pay off their home and feel comfortable with our economy. Our economic state these days does not lend itself to comfort. Most of us have lost value in our market-based retirement accounts this past week.

But think about this . . . what if you owned your home free and clear?

This may be the time to plan to be conservative -- conservative in your purchase of a home and conservative in the payment of your mortgage. It was not long ago when I was advising my clients to make one extra mortgage payment each year directly to principal reduction and look at paying off the 30-year mortgage in approximately 18 years. Let's go back to being conservative. Not just because we want to do this but now we must do this.

Educational programs on TV and the Internet are assisting in ways to economize. Sometimes we must listen to this direction, tighten our belts and move forward in a conservative and cautious manner, such as purchasing an affordable home using 25 percent of your income for your mortgage payment.

Using 33 percent of your income for total debts is the conservative way to look at purchasing in today's economy. In this way, one can still save money and enjoy life without the stress of payments that are too big for your comfort zone.

Placing one extra payment towards your principal balance is a method of "forced savings" in a solid and conservative manner. Forcing oneself to save before spending is another cautious and conservative method of budgeting in this tough economy.

Passing up the latte, conserving on energy usage and purchasing needs instead of wants will get us into a more comfortable world.

Credit market where it should be.

How is the credit crunch affecting the real estate market? Can you sell a house now with everything going on in the U.S. economy? Can you buy a house now with this unbelievable economic crisis?

The answer is yes. Homes are selling, and buyers are getting financing. Florida had the highest rate of FHA mortgages recently in the United States. Home loans are available. The clock has now turned back to the way things should be . . . that is, those people who have good credit and verifiable income can secure financing to purchase a home.

Those people who have decided to "short sale" or go into foreclosure have now made a choice that they have to live with. Those who made the choice to sell short or foreclose will not be able to secure mortgages again for many years. Each circumstance for foreclosure and short sales is different, but the lending institutions will now make decisions not to lend to these people regardless of circumstances.

Veterans can secure VA financing with no money down. FHA buyers can purchase with 3 percent or less down. Conventional financing is available for those who can afford a down payment and finance 80 percent loans. Money is available. Credit is available. All are available to those who can afford to purchase and to those who can afford the payments.

This is not a bad change in the market. This is the way the real estate and lending market should be. We all need to tighten our belts and think before we purchase. We need to make certain that we can afford to pay back the money that we borrow.

There is no more incredible leverage -- based on rocketing home values -- available to the consumer. The rules have changed but the good news is that we can purchase a home, we just must be able to "afford" that purchase. Homes are the most affordable than they have been in many, many years. Interest rates are low and reasonable. There is an abundance of properties to from which to choose.

In spite of what you are reading in the newspaper and in spite of what you are seeing on television, real estate is alive and well in Brevard County, in Florida and throughout the United States. This is the time to buy the American Dream.

Owning a home still the dream.

Lately, I've been asking young people what they want to know about real estate. Many inexperienced buyers reply with a fundamental answer: How do we buy a home?

I tell them the first stage should always be to apply for a mortgage.

Yes, before any home is selected, the buyer must know how much of a mortgage he or she can afford. Knowing your credit score is very important. You, as a buyer, may otherwise qualify for a large mortgage but cannot secure one with nice low payments because of late payments on some of your credit cards and other bills.

When you apply for a mortgage, you will learn your credit score. A good, local loan officer will assist you in ways to address "fixable" issues. After buyers qualify for a mortgage, they can begin to look for homes that match their proposed payments.

Find an agent who you know is respectable, knowledgeable and honest. Sit with this agent and show the agent your letter of qualification from the lender. You are not bound to this lender nor are you bound to this agent. You may want to meet with several loan officers and several agents to determine who fits with your personality and your needs.

When you find an agent, secure a list of homes that meet your needs in location, price and floor plan. A good agent can research the status of houses that interest you. That is, information on what the seller paid for the house and when the property was purchased. This information will come in handy when you begin negotiations. Knowing the motivation of the seller is very important, in addition to knowing how this property has been maintained over the years.

Important points to understand when purchasing are the following:

--- Understand the total payment. Principal and interest are determined by the lender. In addition, buyers need to secure insurance on the property and you, the buyer, can shop rates to determine the best price and coverage. Your real estate agent can assist with this but the ultimate responsibility is on the buyer.

--- Taxes will change in the next year after the buyer's closing date. Buyers inherit the seller's taxes until Dec. 31. The following Jan. 1, a new tax rate will affect the property, but the actual tax bill will not be known until Nov. 1. Buyers can find estimated taxes through the Brevard County Appraisers Web site.

Homeownership is the American dream. In spite of all the problems in our economy today, owning a piece of America is still very possible.

Follow steps to buy...

Too many times, buyers are looking to find exactly the house that appeals to the taste and decor they like. It has been said over and over again . . .Location . . . location . . . location is the most important aspect of a real estate purchase!

If you are looking for a home, the procedure is simple.

First, find the general location you like. Once the general location is discovered, concentrate on neighborhoods and search for one that appeals to you in price, location and appearance. Drive this neighborhood in the morning, the evening and at night. View the homes within and surrounding this area for curb appeal. Neighborhoods that are well kept tend to hold their value.

Listen for noise from trains, planes, factories etc. Sometimes, these nuisances do not show up except at certain times of the day. Boats and cars parked on the road and off to the side of home begin to "downgrade" the neighborhood unless the lots are big enough to hide these things away from the house. When you are convinced by driving the area that this is the neighborhood for you, then the fun begins!

• Tour each and every house that is on the market in this area.
• Find a floorplan that suits you and your lifestyle.
• Try to avoid the distractions of fixable cosmetic features, such as paint, wallpaper, and carpet.
• Floorplans are difficult to change and location, of course, is impossible to change.
• Do not focus on furniture that is in the home but consider the size of the furniture to picture your own items in the house. Study the plan and know what you can or cannot live with.
• Pick your three favorites homes and ask your agent to do a market analysis of comparable homes nearby that have sold, that are under contract and are actively listed.

You too, can research on the Internet but do make a point of having a professional give you their opinion. When you study the market, it is then that you will see some consistency in the value.

The next step is making an offer. Do not insult the seller but ensure your agent can support the offer with evidence of nearby sales. Have your agent show the seller or seller's agent the competition and let him or her know that you have other options. If you do not get your favorite for a price you feel is fair, then go to your second choice and keep going until you are happy with the house and the price. Once closed, this house becomes your home.

Check your local lenders for new "down payment assistance programs" that have just been made available.

Buy now, save in interest

Fewer listings are coming on the market each month. Sales, even though low, are increasing each month. There still is a great deal of inventory in Brevard County, but if buyers wait too long to move forward, the price might be a good one, but it will cost more.

Let me explain.

Binki Kaiser, a renowned real estate expert, states that 94 percent of buyers in today's market find their homes on the Internet, investigate the neighborhoods, then make appointments with their agents. Today's buyer is particular, knowledgeable and striving for a good deal.

The buyers of today weigh renting a home vs. purchasing a home. They look at the low price of rentals and are enticed by the property they could rent. Today's buyer may be taking too long to make a decision, Kaiser says.

Mortgage rates just dropped. The rate will undoubtedly increase again soon. The struggle for the buyer is to get the best price. If he or she waits too long and the interest rate increases, it will cost this buyer more money, in the long term.

Using a 6.5 percent interest rate and a $325,000 mortgage, this example is "principle and interest" only. Taxes and insurance costs vary according to the home being purchased.

A 30-year mortgage with a 6.5 percent interest rate will cost the buyer an estimated $2,054 per month.

If the buyer waits and then decides to purchase the same home with the same term, but a 7.5 percent rate, this same $325,000 mortgage will cost the buyer an estimated $2,272 per month. The difference is $218 per month.

The buying power of the 6.5 percent interest rate vs. the 7.5 percent interest rate is best viewed as paying $34,500 more for the home if he or she waits and the interest rates jump back to 7.5 percent. That is, if the interest rate stays at 6.5 percent, one can finance $34,500 more, possibly roll the price of a new pool into the loan, and have the same payment as the 7.5 percent mortgage in the original amount of $325,000.

This is what cost vs. price entails.

To review this difference over 30 years, using the same mortgage amount of $325,000, the home with the 6.5 percent mortgage is paid out over the life of the loan in an amount estimated at $739,440. The 7.5 percent mortgage paid over 30 years totals an estimated $817,920. Now, the cost of this home is more than $78,480.

Buyers in today's market not only need to look at mortgage rates and low real estate prices but buyers need to understand the added advantage of buying over renting.

The government rewards us with tax deductions on mortgage interest and real estate taxes. One must review the vulnerability of rental rates increasing year to year versus the write-offs on income tax.

Buyers in this market have a great deal of investigating to do and if they are smart buyers, they will do it.

Storm- ready homes a plus.

As the rains continue to fall, I am grateful for the renovations and enhanced construction implemented after the hurricanes of 2004. Windows are sealed, and if you do not have shutters, then hopefully you have impact-resistant windows or great plywood. Sandbags are available and should be placed where necessary. Follow the forecast, and stay safe and dry.

The real estate market marches on, even during the rains. The weather has changed the value of improvements that bring returns in today's real estate market.

Hurricane shutters expedite the sale of a home. Electrically operated or luxury shutters do not bring a financial return to sellers but certainly enhance the appeal of the property and bring some return in a quicker sale.

A newer roof with hurricane straps is almost a requirement in the sale of a home during the hurricane season.

Any other preventative/protective measures for hurricanes should be highlighted and brought to the attention of prospective buyers.

Upgraded wiring to accommodate a generator becomes a plus in selling, even more so if the generator comes with the house and is included in the sale price.

A gas grill in the summer kitchen is a good feature in case of power failures. It is interesting how the buyer's priorities change during the hurricane season.

This is the time that agents and sellers need to be particularly calm but thorough in relating hurricane information and past experiences.

A seller must disclose problems that he or she has encountered in the past, relative to the property. In the seller disclosure that is typically given to the buyer, sellers should explain exactly what problems were experienced in past storms and how the problems in the past were corrected.

It is important to explain all details of the property before the buyer has an inspection. Inspectors are thorough and tend to find indications of past leaks. When a buyer has been informed of everything prior to inspections, the seller's credibility is increased and there is trust with buyer and seller to complete the transaction.

Current statistics show that the hurricane season has not affected the trend of increased sales in the past few months. Our particular area of Florida has seen a correction in fewer listings coming on the market in addition to the increased sale activity.

With this information, if sales continue in the same pace and listings continue to decrease, the residential market, in my opinion, will begin to balance in approximately one year.

Closing can be a big deal.

Buying or selling a home involves establishing a relationship.

If you are the buyer, you are in control but only to the degree of your contract. I have been involved in contract negotiations that take weeks to resolve with a true meeting of the minds. But even the toughest negotiations can result in smooth transactions.

Negotiations are not just about price, yet price is the most important aspect for both parties. Buyers may ask that the seller assist with closing costs. Buyers may ask for an earlier closing date because of issues with mortgage interest rates and lock-in requirements. As a result, the final price can hinge on closing date. Communication is the key to creating a good relationship throughout the transaction.

The buyer has the right to inspections to determine if the home is in the condition expected. An inspector is hired by the buyer, and this inspector spends many hours in the seller's home. Uncomfortable as it is, this is truly a protective measure for both buyer and seller. The buyer typically has the right to cancel the contract if the condition of the property is not acceptable.

Often buyers get bogged down with numerous insignificant items rather than the true picture of the overall condition of the property. Roofing, electrical and plumbing systems, air conditioning and heating systems are critical.

Many other issues -- such as tree limbs close to the home and minor caulking -- are maintenance items that buyers can expect to deal with throughout the time they own the home.

Buying a house is very different than purchasing an appliance or another item that does not carry the same emotion. It's like buying a car from a private owner, rather than a dealer. If the buyer values the seller's "pride of ownership," the transaction can proceed smoothly. When a buyer boasts of all the changes he or she will make to the home, some emotions may arise from the seller that can affect the ease of the transaction.

The bottom line is, if sellers and buyers appreciate each others' viewpoint, and the struggles that go along with buying, selling and moving entire households, the transaction can be a pleasant one for all.

When sellers and buyers have proceeded through all the stages of the purchase and a good relationship has been established, sellers will leave information that is not required but very helpful for the buyer. Paint, extra keys, names of neighbors, warranty books, repairmen and other great information can ease the process for a buyer and make the move a good one.

A buyer and seller may not even meet each other until the closing, but the relationship was established throughout the transaction in the manner in which each party deals with the unexpected changes.

Relationships . . . try for the best when buying a home.

Use bad weather to your benefit

Brevard County has never seen so much rain in such a short period of time. Few places have.

Florida will always have sunshine, but when the rains come, it is possible for homebuyers to use bad weather to their advantage.

If you, as a buyer, really like a home when it is cloudy and rainy, just imagine your opinion of the property when the sun shines brightly. When it is raining, a buyer can determine where gutters are needed on the home. A buyer can see how high the home is built up for proper drainage. The topography of the land becomes more apparent after a storm.

Typically, oceanfront and dunes are the higher areas above sea level. The land then slopes towards the river, which is the lowest point, or sea level. A good flood map can show a buyer the various levels throughout Brevard County.

As a buyer, one may have a tendency to shy away from a flood zone but most important, consider the planned drainage of the community and the actual height of the improved property. Florida is largely built on soil that accepts rainwater, unlike clay soils that are found farther north.

Coquina rock is the base of much of South Tropical Trail. It too, is porous and allows for drainage. This is incredibly fertile, allowing for beautiful mango, avocado and citrus trees along with magnificent flowering Royal Poinciana and Tababulia. Drainage is quick in most of these areas until it reaches the saturation point.

We have learned a great deal from the hurricanes of 2004 in regards to "water intrusion" and methods of eliminating mold and mildew.

Sellers have access to all types of companies and equipment designed to repair leakage and restore their homes and properties to a "better-than-new" condition. Frequently, the question is not whether leaks will come after a prolonged rain, it's a question of how much, where and what will the seller do to repair the problem.

We have just had the best test of waterproofing a home.

Buyers should use this time, to investigate flood insurance, check out their future neighborhood and move forward on the purchase of your new home.

Sellers, this is your time to make your property shine even if you have been soaked to the bone.

Brevard a great place to live!

Why Brevard?

I was recently asked by a school mate from many years ago why I live in Brevard County. Having been born and raised in South Florida, I moved to this area more than 30 years ago when it was a sleepy little dot on the map. At that time, it was not a very "pretty area" coming off Interstate 95 heading east on U.S. 192.

I can truly say, "Brevard, you have come a long way, baby!"

I am passionate about Brevard for many reasons.

First, I love the water. Beaches, rivers, lagoons, lakes . . . you name it, we have it.

The wildlife intrigues me. To come face to face with manatee, blue heron, nesting loggerheads and occasionally spotting an alligator, is absolutely fascinating.

I like to see the sunrise and enjoy the sunsets and be able to breathe fresh air.

Flying in and out of Melbourne International Airport is a treat. Compare this experience to Orlando or Ft. Lauderdale, and you will know what I mean.

The schools are good, and the people are friendly.

If you go out to a nice dinner, you can get reservations and enjoy life. I guess you can say this is the good life.

Boating, golf, surfing, skiing, sky diving, tennis, virtually all sports are offered in this paradise called Brevard.

And we have a variety of housing that can suit the needs of almost anyone who wants to live here.

Condos on the ocean and river are now priced reasonably.

Condos on the mainland are priced even better.

Townhomes, and single-family homes offered in a variety of prices and styles appeal to many. Single-family homes on golf courses in planned communities and wonderful country homes with minimal restrictions give buyers a wide range of choices and prices.

We have come full circle from 2002 when homes were affordable, we then rode the wave to the peak of pricing in 2005 and now to 2008, we are back to being affordable once more.

If you are just curious about the value of your home, there is an interesting consistency in the market value on your tax rolls and your true market value with today's prices.

This is not always 100 percent accurate, but the consistency is clear more often than not. This was not the case in years past. The real estate market continues to be active and prices are beginning to stabilize although still reflecting the lower values.

If you are looking to move here, you have just discovered paradise.

Housing market on move.

Throughout our analysis of real estate activity in Florida, trends show that the market for single-family homes peaks when families want to settle in for the back-to-school season.

Therefore, it makes sense that the market would have more activity in the spring and through June and into mid-July.

Single-family home sales begin to slow a bit while families are getting children ready for school and the final vacations are taken.

When the first snow falls up North, the seasonal rental market begins to boom and the condo/townhouse market activity increases as the winter residents flock to Florida.

Now for the facts (as I see them), in the single-family residential market:

--- There are 6,001 active single family listings in Brevard County today. Since January, 2,879 homes have sold.

If sales continue at this same rate throughout this year and into 2009, it will take more than a year to sell these homes.

--- Today, there are 957 single-family homes under contract. The marketing time could be reduced to less than one year for a "balanced market" if homes under contract continue to increase and close as scheduled.

This number can be skewed by homes that remain under contract for an extended period of time, such as lease-options and lease-purchases common to this market.

Generally speaking, I could deduct 25 percent from the number of homes currently under contract and still contend that this real estate market is in the process of change.

A balanced market is when the inventory of homes and the buyers who close on a purchase are equal.

When the number of buyers exceeds the number of homes on the market, a balanced market changes into a seller's market, and that is when market appreciation begins.

This change is still down the road but the balanced market may be the light at the end of this tunnel.

The over $300,000 market is a more than two-year market but this too, has significant properties under contract and as the lower priced homes sell, the ripple effect heads to the next increase in price.

The higher priced market in the over $700,000 price range is still saturated but an increase in movement is reported.

The luxury market, although not reporting any significant decrease in pricing , is very slow moving. Those in the luxury market appear to have the staying power and are not inclined to reduce their prices to achieve a sale.

The real estate markets are slow turning markets as compared to the stock market with it's daily volatility. Patience and price reductions are the keys to selling today.

Condo market improves.

As with all markets, the real estate market has its peaks and valleys.

Buyers can still search for months to find their dream property.

Negotiations of contracts proceed from the "insulting" low offers to a "meeting of the minds" on price within three to six weeks, when it used to be three to six days.

The good point is, the lower-priced properties or more desirable properties, may be receiving multiple offers. Please do not misunderstand . . . the offers are not list price or above but having more than one offer presented on the same property is great action in today's real estate market.

Now for the facts, as I calculate the action:

I see positive change in the oversupplied condominium market, based on statistics I see though the Multiple Listing Service.

Based on my analysis of the sales in the oceanfront condominium market since Jan. 1, I note that 25 oceanfront condo units are selling each month. There are 528 "active oceanfront condo" listings on the market.

With this information, I can forecast that it will take approximately 21 to 24 months to sell this existing inventory.

Now for the change: Currently 40 units are "under contract."

Provided this trend continues, and if these condo sales close in a 30-45 day period, this could change the market considerably.

That is, the existing inventory of condos might sell now in a 13 to 16 month timeframe -- a dramatic change from a two-year market to something approaching a one-year market.

What does this mean? In my opinion, it means that it is possible, if this selling trend continues, that the market may change from a "buyer's market" to a "balanced market" in 1.5 years instead of the 2-year period.

Great news for Brevard County and an encouragement for those buyers looking at oceanfront condos to get moving. These great buys may not last for long.

The overall view of activity over the past three months is indicated not only by the increase in the sales volume, but the fact that the average prices of sold properties are on the rise.

--- In May, the average sale price of "all properties sold" (to include residential, condo, vacant land, commercial/industrial and income properties) was $182,593.

--- In June, that average was $197,879;

--- In July, the average was $377,103.

Sales tend to have a domino effect when the market activity changes. When lower-priced properties move, it prompts those who sell to buy larger, more expensive homes and thus, the price range of sold properties begins to move to a higher priced bracket.

Market full of obstacles.

The real estate market is active, but do not misunderstand this activity.

The value of your property is significantly lower than previous years, based on the homes buyers are selecting and the prices they negotiate and eventually pay.

The high-flying market of 2005 is not predicted to return for many years.

I too, like to dream and wish we could turn the clock back to those high prices and sell while the market was up.

If you want to sell now, go out and look at what you can buy . . . you will sell low, but you can buy so much more. In this way, you are not losing. You may even be gaining equity by finding a terrific value.

If past sales indicate a lower value for your property, do not think that you can price your home higher than past sales.

Look for homes you want to buy before placing your home on the market. In this way you may be more realistic as a seller in today's market.

This market has many challenges that face both buyers and sellers other than educating the sellers on pricing the home correctly.

A major challenge that faces each and every buyer is the challenge of financing.

Lenders are strict with credit reports to include prompt payment of student loans and verifiable income.

Inspection results concern the lender. Lenders limit the type and amount of credits back to the buyer at closing. Appraisers are very conservative in their evaluation and some lenders, upon review, may reduce the appraised value or the ratio of the loan to the value of the property.

They are strict with appraisals as we continue the label of a declining market.

Lenders scrutinize any and all aspects of the buyer's financial package, questioning each and every loan, each and every purchase, account balances and pay stub. This is typical and comes as a result of the problems that have resulted in the abundance of foreclosures.

Buyers sometimes experience buyer's remorse after finalizing a contract.

So many homes are on the market and buyers fear that, after their purchase, property values will drop. It is my opinion that property values have bottomed out.

This is indicated by the limited number of properties available in several locations.

It is further indicated by appraisals that result in value ranges lower than contract price.

Another strong indicator is the volume or number of sales each month in comparison to the number of new listings.

Fewer properties are coming on the market compared to the volume of sales.

All great indications that the market is active and the look for the future is positive.

Brevard boasts lots of hot buys.

What can you buy in Brevard County?

I have been asked to give a sample of what is available in Brevard County. Wow! This is enlightening for me as I search for properties all day long.

Under $100,000, one can choose from more than 600 active single family homes. For example, in Cocoa, one can purchase a home built in 2002 with 1,800 square feet on 1.14 acres with 3 bedrooms and 2 bathrooms.

In Palm Bay, one of our fastest growing cities, there is a three-bedroom, two-bath home with a two-car garage built in 1996 and actively listed for $79,900.

In the condominium/townhouse market, one of the surprising properties is a two-bedroom, two-bath villa or patio home listed for $57,900, built in 2007.

In the Lake Washington area of Melbourne, a small condo on a lake and golf course can be purchased for $78,900.

There are currently 399 condos and townhomes actively on the market in our county for under $100,000.

On the ocean, currently listed, are 94 oceanfront condominiums for less than $250,000. One is listed as a townhouse in Cape Canaveral built in 2002 with two bedrooms and 2.5 baths for $250,000. Very surprising.

Now let us take a look at larger single family homes: There are 651 listings in Brevard County with 3,000 square feet.

In Rockledge, one can purchase a 3,230 square-foot home with a three-car garage for $375,000.

In Grant, one can buy a 3,662 square-foot home on 2.14 acres with a three-car garage for $399,900.

And in Titusville, one can purchase a 3,644 square-foot home for $299,000.

But wait, one just caught my eye. A 3,928 square-foot home for $266,800 with a garage. It is bank owned and sold "as is" in West Melbourne.

On the riverfront property values range from $279,500 up to the millions. None of the above-listed properties are advertised as "short sales."

One can get a very good value on a hot deal in today's market. Call your friends and relatives.

This is the time to buy. Please look further for specific locations, condition, etc. Your good agents can assist and find these properties for you.

Changing market presents problems.

The real estate market is changing . . .

Many homes have been sold for very low prices, but what are the problems we face in this changing market?

With the change in the market, typical "arm's length" sales are having occasional problems with low appraisals. Another problem in this market is a change in the interest rate before closing.

When accepting the offer for sale, the seller and Realtor should do their best to make sure that the buyer is going through a local lender for financing.

Internet and out-of-town lenders have sometimes offered enticing interest rates that may or may not remain the same at closing. This dramatically affects the buyer, who was counting on a lower rate.

To complicate matters, most out-of-town lenders work with out-of-town appraisers while local lenders will order an appraisal from a local company.

An out-of-town appraiser might lack local knowledge and could submit an appraisal that doesn't take into account local factors.

Therein lies the problem -- the contract price and the appraised value can be thousands of dollars apart.

One solution might be to start over with a local lender. The appraisal would be reordered in hopes of a value in line with the contract price agreed by both buyer and seller.

In the event the appraisal cannot be changed by moving to a local lender, valuable time is lost and in some cases, both buyer and seller end up making concessions on interest rate and price in order to close this sale.

Sellers should have a specific list of upgrades on their property and should give this list to the appraiser.

Buyers in today's market, typically, do not overpay.

Today's buyers are educated and have access to all current listings and all recent sales via the Internet. There should not be a problem with homes appraising for their contracted sale price.

This trend of low appraisals may also indicate a change in the market to slight market appreciation which appraisers have not taken into account.

Still I contend that you can sell low and buy low in Brevard County.

Short sale has long haul.

Everyone is whispering about "short sales."

What are they? Let me explain.

In my opinion, a short sale is an offering of a property below the amount owed on the mortgage.

For example, a listing down the street comes on the market for $300,000. The tax rolls may indicate that the owner paid $500,000 for this home in 2005. Let's assume that the bank's mortgage on the property is $400,000.

Is this a great deal? Can you purchase this property for $300,000 or less?

Many properties are going on the market and are advertised as a short sale when the lender has not agreed to take less than the full mortgage amount.

This short sale will not go anywhere without communication and agreement from the lender to accept a payoff for less than the actual mortgage amount that is due.

If you make an offer on this type of property, you may wait a long time for it to be presented to the lender, only to learn the lender will not accept an offer less than full payoff.

Your contract for sale and purchase may be signed by the seller, but it will require approval by the lender.

Be cautious and do not waste your time if the lender has not communicated and agreed to take less than the amount owed on the mortgage.

A typical lender is not going to agree to a short sale if the seller has adequate income, is not behind on payments and has equity in other properties and assets.

If the lender is involved and communicating with the seller and the listing agent, then go for it.

You might get a great deal, but be patient. This process can take months.

If the lender now owns the property because the seller did not make payments, and the lender took over the property through the foreclosure process, this property is now offered for sale by the lender.

Do your homework and make sure the price is right for a good value.

Make sure that you, the buyer, have a pre-qualification letter from your lender and have your agent write the offer.

Sellers who bought their homes long before 2005 typically have considerable equity and can offer a hot deal if they are motivated to sell.

Do not limit your looking to just short sales and foreclosures because hot deals are here.

Study the market value using comparable listings and sales in the neighborhood in which you are looking to purchase.

When you see a property offered for less than others, check it out. This could be the beginning of a great deal.

Be wise, work smart, and you will get the best value on your purchase

Choice of agent and price is crucial.

Pricing your home correctly is one key to selling in today's market.

Start determining your home's value by calling two or three full-time agents for a market analysis.

Make sure to give each agent time to do this, and understand that if the agent is busy showing and selling, this is a good sign.

You may have an agent who has done well for you in the past.

Have confidence that he will work hard for you again. A good agent should provide you with the following:

--- Recently sold properties that are similar to your house.

--- Active listings that will compete with you once you place your home on the market.

--- A list of comparable houses that are under contract.

--- The number of active listings that are in your price range.

--- A complete marketing plan.

--- A personal resume showing the agent's sales volume and the organization to which this agent belongs.

Review similar sales and listings carefully. Do not choose an agent just because their analysis gives you a higher value. Market value is an opinion and is reviewed from the eyes of a buyer and not a motivated seller.

Motivated sellers must guard against overpricing in this market.

Another key to selling is signage.

In a buyer's market like this, a choice to forego a sign is a choice to limit your property's exposure on the market.

About 80 percent of buyers begin with the Internet and then choose to drive through neighborhoods after their search. Making your home easy to find is critical.

Sometimes these prospective buyers are searching for location and are sampling the surroundings even before they personally view a home they might be interested in.

Therefore, a sign is key, along with Internet marketing.

Relocation departments that bring in corporate employees from other cities vary from agency to agency, but such services can be a real boost to your chances of selling if your home is priced to sell.

Perseverance and patience is needed by all sellers.

The market continues to be active but still saturated with an oversupply.

Buy low, sell low a winning outcome.

How does one get out of a home if you are "upside down?"

So you purchased a home in 2005 for $400,000 and now this home is barely worth $300,000.

There are several conditions that weigh heavily in the decision to sell if you are upside down.

--- How much of a mortgage do you have on this property?

--- Are you moving up? Do you want to buy a larger home for a higher price?

--- Do you want to move down? Do you want a smaller home at a lower price?

If you have little or no mortgage and you want to buy a more expensive home or a less expensive home, then go -- you will sell low and you will buy low. You are the winner in today's home market. Go buy this new home.

If you have a mortgage that is small enough to enable you to sell, pay closing costs from the proceeds and put 20 percent down on your next home, you are golden. All signals are a go.

For example, if your home is worth only $300,000 and your mortgage balance is in the range of $200,000, you can pay closing costs, and walk away with some cash.

Before you even think of selling, please go to your mortgage lender and make sure you can secure a loan for the home you wish to purchase if you sell low.

If you want to purchase a home valued in today's market for $500,000, you may have to come up with 20 percent down or $100,000 in order to purchase. Sellers, in today's market, will often be willing to pay your closing costs if you purchase their home.

If you do not have money in savings or an IRA that you can borrow from, be cautious about selling.

If you buy low after selling low, then you are doing great. The values are out there in this market.

Do not take the position that you are losing money because you are indeed making this loss up on the buy side. This is either a lateral move, one that keeps you with the same equity, or it is a win for you as the higher-priced home may begin to increase in the future and you will gain more equity.

If you have a home that is overmortgaged, that is, you owe more on your mortgage than what your home is worth, be sure you can sell or move. You may be the one who has to accept where you are and just stay and enjoy your home.

Long term will prove to be OK for you, in my opinion.

But sometimes long term is longer than you want to stay in the home. That is when you have to get creative in finding funds to pay off your home.

Have you an investment that you can liquidate and accomplish your goals? A good financial planner can assist you in this decision.

Building equity the right way

Equity is the value of your property, minus your mortgage. This should be an important part of your net worth.

I have always advised my adult children that when they sell a home, take all of the proceeds of the sale and put it all down on your next home.

Yes, we all are tempted buy that new TV and great sofa and then maybe a down payment on a new car with the cash before we put that equity down on another house.

Bad idea.

All of the preceding items: TV, sofa, car, depreciate rapidly. But your home should, if you have selected the greatest location and are in for the long haul, build equity over time and appreciate in value.

This is the safe way to buy.

I am not sure I would advise an equity line of credit for property improvements unless an equity line is the only way you can improve your property.

Taking funds each month from your own paycheck and gradually improving your home, paying for these improvements as you go, is a method of forced savings and building equity.

Taking any money you may get on a tax refund and placing this down on the principle balance of your mortgage is a method of paying off your home earlier than expected. Your home equity will build rapidly if you make this part of your normal financial plans.

What are the improvements that add to the value of your home?

One of the most important improvements is landscaping.

Enhancing the exterior appeal of your home entices people to want to look at your property.

Even if your home is not for sale, you and your neighbors will enjoy the look of a beautifully landscaped home.

Fruit-bearing trees are often a wise move, because freshly squeezed orange juice is something Northern buyers and visitors will love.

In most areas of Florida, a pool adds value to your home.

It does not always add the full cost of the pool, but you can enjoy that pool and know that buyers for Florida real estate, will typically, pay more for a pool home.

Normal maintenance is an absolute must for building and holding equity.

Homes depreciate rapidly if they are not cared for in every way.

Pest control and routine termite inspections are critical to safeguarding the integrity of your property.

Painting inside and outside, routine air conditioning servicing, maintenance of irrigation systems, and overall care of your home, is most important. Maintenance is the way to safeguard unnecessary depreciation.

Last but not least, if your earnings climb each year, those home-sale proceeds really help you move into a more expensive home and keep moving up.

Your equity will increase and your dream home will be a reality.

Learn lessons from '05

The government rewards us for being homeowners.

And why not?

We are investing in the American dream, which for many people includes homeownership. The government allows us to write off our mortgage interest and taxes on our federal tax returns.

In addition, if we own investment property, we can depreciate this property over time.

What a way to go.

Make your plans and take your time to think of your future. Real estate is not a get-rich-quick scheme. It is a long-term, deliberate choice to buy, enjoy and build equity.

The mistakes of 2005 tell us over and over again that we are not in the kind of market to buy and "flip" or sell quickly and make a profit. Those times are gone.

However, 2005 has taught us the following:

--- Be careful in looking for mortgages. Make sure you find the best interest rates and the lowest closing costs.

Make sure you understand the consequences of possible pre-payment penalties or changes in the interest rate that could negatively affect you.

Do not be afraid to ask questions and talk to several lenders.

Understanding closing costs isn't always easy, so ask about "typical costs," "mandatory costs" (like taxes) and "garbage fees" (unnecessary lender charges).

Most important, do not go for the mortgage you can just afford, but be conservative and go for the amount of mortgage payment that you are comfortable with.

--- Be careful in looking for homes. Do not view more than five homes in one day.

A trained Realtor can keep up with the numerous combinations, but most people start losing track after three -- remembering such basics as location, floor plan, colors and particular features of the home.

The most important part of purchasing a home is the location. It should be convenient to work, schools and shopping.

Rank the homes that you see and eliminate the ones that do not work for you.

Think and be critical about the homes you have viewed, but remember that many features, such as paint color, landscaping, carpet and flooring, can be changed.

Location, floor plans and neighborhoods cannot. These are most important.

--- Know about the sales contract that you will sign and make sure this contract is contingent on any inspections of the home being satisfactory to you, in all respects OR you reserve the right to cancel this contract.

--- Make your home purchase a priority. Find a knowledgeable agent you trust.

A good agent will guide you and assist you in this most important decision.

Make this decision wisely. Lessons learned from 2005 are good lessons.

Data shows trends...

Let's cut to the chase.

Here's a snapshot of the current market information since January:

--- In condominium sales in Brevard County, the number of new listings coming on the market has been consistently dropping since January. So our supply is decreasing.

Prices of sold condos show the lowest average sale prices in February and have been increasing since that time but not quite as high as the sale prices in January.

These statistics support my opinion that the market has bottomed out in this category. Cautiously, I report that we are still showing an oversupply.

--- Residential sales indicate the lowest pricing in April and the highest pricing in March. May sales show an increase over April prices.

The number of new listings coming on the market are at an all-time low since January. Sales volume peaked in April and contingent contracts show a high in April, which may cause a spike in the volume of closed sales in the next few months.

My data source shows a slight increase in sale prices since April, but sale prices are still lower than those reported in January.

This is, again, an indication that the market may have bottomed out.

New listings coming on the market are definitely reduced by a significant number and show a consistent reduction since January. An oversupply still exists in this category but some areas show a limited number of available properties.

This, in my opinion, is a good sign that this market is recovering. If you are a buyer who is thinking about buying, consider putting your thoughts into action.

--- Slow and low sales still plague the vacant-land market. Hopefully, when the housing supply begins to balance, the vacant-land sales will increase and new construction will pick up.

--- Townhouses also show fewer new listings in somewhat of a consistent manner since January until the end of May. Townhouse prices were at the lowest point in January, peaking in price in February, March and April.

May prices were higher than January's prices, with the volume of sales indicating an increase over January, February and April.

Sellers in today's market need to be in tune with pricing and be willing to have their homes in show condition when appointments are made.

Pricing your property to be one of the best of the three good buys shows your willingness to entice offers from eager buyers.

A note from last week: My column included a photo of people moving with a caption that indicated 16,000 people move to Florida each day. The caption should have said come to Florida each week.

Good buys abound in Brevard

Brevard County is moving up.

About 16,000 new people come to Florida each day.

How do we capture our fair share in Brevard?

We have all of the ingredients of a healthy economic base: diversity in businesses, the corporate headquarters of several companies, an abundance of recreational activities and a climate many people enjoy.

The hiring of new employees adds to this strength in our housing market in both sales and rentals.

Brevard County's affordable housing market did not exist in 2005.

However, the current affordability will lure more residents to the Space Coast and pull us out of our housing glut quicker than other areas throughout the United States.

A continued upswing in sales and rental activity gives local residents the encouragement to sell now, even though the prices are low.

Residents can still get a good value when moving up to a larger home or scaling down to a smaller residence. It continues to be a great time to buy.

Action also continues to increase in the resale housing market, and developers are beginning to site properties for future development, but those new developments could take years to be ready for consumers.

Values on vacant lots ready for new construction are truly "outstanding buys" at this time. Builders are offering competitive prices for building single-family homes and paperwork for new permits is being filed.

Although there remains an oversupply of homes, condos, townhouses and land, consistent increased sales activity is apparent in all price ranges.

County's market getting better.

The Brevard County real estate market continues to show signs of improvement. Good signs.

There are fewer listings on the market in all types of residential properties -- single-family homes, condominiums, and townhouses.

It's not a significant number of fewer listings, but a lower number than the preceding months.

Statistics show more sold residential properties than the preceding months. The largest number of sales are in the category of townhouses, followed by condominiums.

This has been our most saturated market. It appears that buyers are seeing the values and deciding that these two types of properties are good, if not, great buys these days.

The most significant statistic is in the area of "contracts pending or contingent."

This categorizes those properties that have negotiated an agreement to sell (under contract) but have not yet closed. This figure, if these properties close, will show a 30 percent increase over recent sales in all categories of residential properties.

But let us be realistic -- the inventory still is significantly greater than the current number of buyers, so we are still in a buyer's market.

My report indicates that the market is due for a change in the future.

Just how does the real estate market change?

Slowly, even though things are improving.

There are so many existing properties on the market. The many selections that buyers have is decreasing, however, there still are many properties to choose from.

The best buys and the most desirable properties, will be picked up first.

The market, if the action continues at this rate, will then go to a "balanced market."

I predict that this will happen in most areas within the next 18 months.

Some areas show indications that this change will happen sooner and some later.

This is, of course, is determined by the number of listings and the action in a particular location.

I see the market balancing out, but I do not predict that we will go to a seller's market any time in the near future. The balanced market will show appreciation in value say 2 to 5 percent a year.

Our dreams of returning to 30 to 50 percent market appreciation are only dreams.

If you are moving within Brevard County, "buy low, sell low" is the way to go.

Peaks, valleys continue

The flurry of action continues in today's market.

Reports in some beachside areas show three times more contracts on existing properties in the most recent 30-day period.

Think of this: We were in a market with an absorption rate --that is, the time it takes to sell an existing inventory of homes -- of two to three years.

If the action continues at the same pace as in the past 30 days, the absorption rate could shorten to about one year in some areas.

Buyers who have been searching for their dream home need to focus and commit or they might lose the property they've been hoping to buy.

Time on the market does not dictate that the home is not valued properly.

Sellers have had to adjust to the decrease in value as indicated by the dropping of the home's listed price over the period of time on the market. Sellers who delayed in reducing their price might have missed the opportunity to sell for a higher price as the market was dropping rapidly.

Many sellers have turned down prices higher than their current list prices.

If the seller has reduced his/her price over the period of one or two years, the price may now be ready to sell -- still with some negotiation.

Where are we headed?

Not so fast, I do not believe that this action can continue at this same rate for the next year.

I think that we all know that, even in an active market, there are peaks and valleys.

There is a flurry when spring arrives, and families look to move over the summer. There is a typical slowing when the children get ready to begin school after summer vacation.

There are popular vacation months where sales slow. And we all know that when the first snow falls up north, the phones begin to ring in search for properties in Florida.

Right now, I see this market as sizzling.

I see buyers viewing less of a selection for their dollars.

The best-priced and nicer properties will be sold, but there will be properties on the market.

Buyers will watch the sold properties for comparison and will be reluctant to offer more than recent recorded sales indicate.

Therefore, my forecast is this: Continued action, but at a realistic and more consistent pace.

A balanced market is in our future. Market appreciation will come in pockets of areas that show less of a selection, as in the market price of $700,000 to $1,000,000 and in specific areas of newer, more custom homes if there is not an oversupply in a specific neighborhood.

There now exists the possibility of future appreciation or limited selection.

Sell low, buy low.

Are sales heating up for summer?

Sizzle, sizzle, sizzle . . .

Action in the real estate market has increased to the point that, in my opinion from what I have witnessed, I can truly say there has been more activity (showing appointments, contracts written and closings) in the past 30-45 days than in the past four months combined. Cautiously, we approach May, June, and July with optimism.

Just a blip? Can the market continue to be active?

One or two months of activity does not yet indicate a trend. This could be just a ruffle of action. Time will tell, but let's hope that this will continue throughout the remainder of 2008. We can create our own future by spreading this whirlwind of action through hard work to close the sale while working with lenders' new restrictions and conservative appraisals.

Obstacles challenge all involved in the real estate transaction. The goal is to hang in there if buying or selling. There exists a ripple effect when sales begin -- when a buyer completes a
sale, it frees a seller to begin seriously shopping, which can lead to another sale, and so forth.

Looking up. Now for the facts to support this level of activity.

In some neighborhoods, sales have averaged about one a month for a while. Now, those same areas have five to six pending contracts. Compared to one home sale per month, this is incredible.

Sale prices are not, in most cases, showing increases in value. In fact, some decreases in value, in current sale prices are reflected in the closed sale data. The volume of sales has increased but the values are tending to remain the same or decrease slightly. Another fact: there are fewer properties on the market.

The Home Builders and Contractors of Brevard recently wrapped up its Parade of Homes on a high note, encouraged by the traffic they saw at their sales sites. Upswings in the market have to start somewhere. While this could be a short-term blip in the market, it also could be the
beginnings of a better summer.

Finding balance in today's market.

Knowing the difference between wants and needs -- and staying faithful to those differences when buying or selling real estate -- is as important now as ever.

As a seller, determine what you need to do.

• Must you sell in today's market?
• Is illness forcing the sale?
• Are finances forcing the sale?
• Is a job transfer forcing the sale?

If the answer is yes to any of these questions, there is little room for options. You need to sell.

What do you need?

Do not worry about what your neighbor thinks of the price you place on
your property. No one has exactly your same needs. Sellers should do what they need to do to show their home on a moment's notice -- clean, paint and freshen the exterior and interior of the property, and most important, price correctly and be willing to negotiate. We are all dreaming of the day this buyer's market will change to a seller's market.

We do not know if we will ever see real estate appreciation like we had in 2005, but home ownership is still a part of the American dream. And with home ownership, you build equity and with it a measure of financial security.

What do you want?

• What are your wants?
• Do you want to scale down your lifestyle?
• Do you want to move up to a larger home for your growing family?

Today's real estate market will allow you to buy low, but you likely will have to sell low as well.
I recently listed a home for clients of mine. They wanted to pay off their $100,000 mortgage, buy a home for cash and live debt-free.

Of course, I said, "You know this is not the best time to sell, but it is an absolutely wonderful time to buy."
They agreed and followed my suggestion of coming into the office to review the sold and listed properties in their neighborhood. Once we established a value of their home, I gave them an idea of the cash they would receive at closing after paying off expenses and their mortgage.
We then found properties they could purchase with the cash they would have. This young, very smart, couple found townhomes, newer than their former home, and with the same living space. Such a smart couple.

We would all like to have our home paid for by the time we are 40. They are scheduled to close on their "dream townhome" on Monday. There is something to be learned from those who follow their wants and needs and make it all happen.

Buyers really are buying in Brevard,

Many sellers have requested additional information on today's market.

Fact No. 1: The market is still a buyer's market.

Fact No. 2: Buyers are buying.

If you are serious about selling, check the market listings in your neighborhood. Be in the top 3.
Position your home to be in the three listings of those most aggressively priced for age, size, condition and upgrades.

Think real -- know what has sold recently (during the past 120 days) as well as what is under contract now. You also need to know the prices of competitive listings. Your Realtor can give you all of this information. Most important, make sure your list price is realistic.

You will sell your home in this market if you follow these guidelines.

• Never say never. When an offer is presented, never reject the offer outright. Once you reject an offer, you have no chance of making a sale. Do not be
  insulted at the low offer. Instead, accept or counter the offer in a realistic manner that can meet your needs. The counteroffer needs to be consistent with the numbers (sale and list
  prices) in this market.
• If your buyer walks away after your counteroffer, and then you reconsider and think that you should have taken the last offer, have your agent call the buyer or buyer's agent and offer to accept the previous offer.
• Be tough.
• Remember, be aggressive!
• Take the time to look at open houses and properties that you, as a buyer, would be interested in purchasing. You may find that your favorite house is reduced to the point that you can accept a lower offer on your home and still purchase the property that
  you want.

Statistics to make you happy:

• In January, the Melbourne Area Association of Realtors shows 204 properties were sold.
• In February, these statistics show 269 sold properties.
• In March, these statistics show 336 sold properties.

Life is good -- property is selling!

Making list not bad for Brevard.

Brevard County recently made another list, but was it a good list or a bad list?

It was reported last week that mortgage lenders in Brevard County will not lend more than 80 percent of some homes' value. In other words, a homebuyer would be required to come up with a down payment of at least 20 percent to purchase a home.

What does this mean? Let me explain.

Private mortgage insurance, known as PMI in the mortgage business, is issued on loans for more than 80 percent of the value or sale price of a property. This type of insurance is not "life" insurance to pay off the mortgage should you die but rather insurance for lenders who want to protect themselves in the event a borrower defaults on a loan. These loans are called "high-risk loans" with little or no equity from the buyer.

About a quarter of all home loans in Brevard County made between 2002 and 2006 required private mortgage insurance, according to the Federal Financial Institutions Examination Council.
Brevard County was cited as one area of the country in which restrictions have been placed on some kinds of loans of more than 80 percent. The restrictions are aimed at loans on properties that are not owner-occupied or are not primary residences.

I don't consider this a bad list. I think this is a good, safe list.

It will help put loans in the proper place. An investor who cannot afford to put down 20 percent on a property probably should not purchase the property. A person buying a second home who cannot put 20 percent down probably should reconsider buying.

However, a first-time homebuyer with good credit and a stable work history likely will be offered financing of more than 80 percent and likely will qualify for private mortgage insurance.
A buyer who has lost equity through the sale of their home in a market such as this deserves to be able to purchase a home without a 20 percent down payment. This will happen in the current mortgage market.

Not everyone is able to make a sizable down payment on a home, and the mortgage insurance system takes that into account. The headlines initially looked shocking, but the reality of the change in mortgage insurance will work for most homebuyers. Safety measures are placed on us to protect the properties and the people who purchase them and the lenders who finance them. Our market is in the "correction stage."

Conservative measures are not a bad thing. Such measures would have helped eliminate or reduce the number of home foreclosures in the market across the nation.

Lesson in supply, demand, scarcity...

What creates value in real estate?

The answers are simple and apply to practically every sales market: scarcity, supply and demand. If a property is limited and desirable, then the chances of market appreciation increase.

If you purchase property in a new development, and the new development is surrounded by vacant land, the vacant land continues the supply. Therefore, no matter how desirable, your home can only appreciate in the amount of replacement costs, because homes can continue to be built in a similar environment. In other words, buyers can simply build their own instead of buying your house.

Raising value-

If you purchase property that is scarce, -- that is, the area is completely developed and cannot be duplicated -- then the chances of market appreciation increase. For instance, there is a limited amount of land in Brevard County's beachside neighborhoods. Add that fact to many customers' desire to live beachside, and the result is greater value.

Similarly, the Lake Washington area is limited from developing to the west because there is an actual lake in the way.

Right now, in this current market, the supply of properties either beachside or in areas such as Lake Washington are plentiful, therefore, there is no market appreciation. For properties to appreciate, the demand must outweigh the supply.

Dwindling supply-

Now, as this market begins to change because of heavy influx of new employees and our special winter residents, we might begin to see our supply dwindle, thus creating a market that is appreciating.

In my professional opinion, this will not happen for several years down the road as we have an abundance of inventory in the home, townhome and condominium market. But as this market activity increases, buyers might find that their favorite property that they have been waiting to see the list price continue to drop has been purchased. There is a supply, but the very best values are being absorbed or purchased right now in this market.

Sellers. time to get ready.

Buyers have arrived. Make sure you, as a seller, are ready.

If you need to sell for one of the following reasons, be prepared:

• You are transferred and "must sell."
• You want to "scale down" to a smaller place or move up to a larger place because you know that if you "sell low," then you can "buy low."
• Illness or financial reasons are forcing you to sell.

If you are "testing the market," do not sell now. Only serious sellers should be in this market.
You have heard it before. We are in a buyers' market, and if you are the seller, unfortunately, you are not in control. A motivated seller must do several things to market his or her home.

Price it right: Most important is price.

This, very obviously, is a price-driven market. Sellers need to make sure that their home is competitively priced. One must keep abreast of all sales and all listings that are comparable.
Don't be fooled by "overpriced" listings. We all would like to believe that our home is worth much more than our neighbor's home. Of course, it is to us . . . but probably not to today's buyer.

Get a reality check if you want to sell.

Sales price determines value, unless list price is less than the most recent sales. If so, then the low-priced listing now has become your neighborhood "benchmark."

Make it look good: Now that you are priced right, how does your home look to the buyer?

First impressions: Your front yard -- is it manicured?

Freshly painted on both the exterior and interior of your home?

Sparkling-clean from the front door and throughout the entire house?

And what about that purple bedroom? Paint it beige.

If you answered "yes," and you have neutralized the coloring of your home, you could be one of the buyer's top three choices.

• Make it easy to show: We've established a competitive price, the home is freshly painted and sparkling clean, but we are inconvenienced by the showings from Realtors. If you make this home difficult to show, it will not sell. Sometimes, an agent shows 10 homes in one day, and proceeds to show the buyer (who wants to see everything out there) 10 more homes for the next five or seven days. Yes, the Realtor may run late or early, but he/she is trying to please the buyer, so this buyer will buy. And if you make your home too difficult to show, there are many others that will make it easy for the agent. Stay in the running. Make it easy to show.
• Getting the offer: When it comes to the offer, this is a stressful time. Buyers are making very low offers, but if they try the offers on the top three, and none negotiate to 25 percent off the list price, then the buyer comes back to his/her first choice, and gets the message that maybe the homes are "priced right."
• Don't get your hopes up. The buyer is not going to pay list price unless you are way below the market, or unless you have all of the features and exact taste of the buyer. That is, this buyer could move in and bring furniture that looks like it was made for your home.
  You, then, have found the perfect buyer. Most buyers are beginning to settle on 10 percent off of the list price if the home is priced correctly.
• Financing and inspections: Do not think your home is sold until after the buyer has had the home inspected and accepted the inspection results. Then, you are getting close. Financing is the most important part of this transaction. We would all like the cash buyer. There are some, but not that many.

The seller should ask for a pre-approval letter from a local lender. But it is still not a sure thing.
Lenders are getting very particular. A full-loan commitment is a must before closing can take place. Do not move out of your home until your agent has reported the good news. Monitoring the loan process is of the utmost importance. Even with a loan commitment, the deal can fall.

Some lenders, in this changing market, can come back and ask for more information or actually deny the loan or change the terms on the buyer. If the buyer is marginal, make sure you have a good, conservative agent to guide you in your move and closing of this very important transaction. Closing papers have been reviewed and approved then.

Next, the cashier's check is given to the closing agent, the wire transfer from the lender has been received. The closing agent hands you your check. Now, breathe easy. You are closed.