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.
Sunday, July 27, 2008
Sunday, July 13, 2008
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.
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.
Sunday, July 6, 2008
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.
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.
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