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.
Sunday, August 31, 2008
Sunday, August 24, 2008
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.
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.
Sunday, August 17, 2008
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.
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.
Sunday, August 10, 2008
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.
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.
Sunday, August 3, 2008
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.
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.
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