The beat goes on in Brevard.

Understanding that life is sometimes a dance, you go forward one and back two and then three forward. Real estate has the same rhythm, and the dance we are dancing is the quick step with all movements being forward.

Statistics continue to support the increased activity each month in Brevard County, and those who snooze will lose in this market. The premium homes and condos for these bargain prices are now showing that the best of the best are being absorbed. Local Realtors agree the correction in this market is being seen with multiple offers on good properties and some scarcity of listings in a few neighborhoods.

Financing still is the difficult part of the transaction and many cash buyers are showing their strength in selecting the values and knowing they can move forward quicker than others. The cash buyer controls the best transactions.

Appraisals continue to be the problem, with many of our local lenders using out-of-town appraisers. It is understood that appraisers are bidding for these jobs and lowering prices to be competitive. The out-of-town appraisal groups are undercutting the locals and capturing the jobs. Interesting that the cost does not appear to be passed on to the consumer. It is no wonder appraisals appear to show inconsistencies in the competitive properties selected.
The appraisers who are not in this market do not know which neighborhoods are considered comparable. Can the borrower insist on a local appraiser?

This appraisal problem, apparent in our area, does not appear to benefit the lender as many new loans are lost due to the low appraisals. Refinancing is effected in the same manner.
The lending institutions with strong local leadership will find a way to change this procedure and create the fairness this market deserves. For the first time in several years, it has been reported that developers are now coming into the market to capture the value of vacant land that is prime for new construction.

With the planning and permitting time period needed for development, the time may be right for land transactions to begin to show a significant increase in activity.
With a two- to three-year absorption rate for residential homes and the necessary time needed to prepare and plan for a development, it would be wise for developers to begin to take advantage of the low land prices and plan for the next several years.
As the hot summer sun beats on Brevard County, let the rhythm of the dance continue.

Realtors can offer guidance.

Buyers are flocking to Brevard, and the reasons are clear. They have heard of the "eco tour" on our rivers, highlighting our natural wonders. They have heard of kayaking through the zoo to see animals in their natural habitat. Some have experienced skimming through the wetlands on an airboat. Others just enjoy the walk through the old towns, dining on the street cafes or enjoying the many theatrical performances our cities offer.

Although the interest rate edged up, the contracts continue to be written as buyers pounce on the great values in Brevard County. A good Realtor can help guide you through the process. Those looking at property on a daily basis know that the best buys are going quick. Yes, the market is beginning to change. The surplus still exists in all phases of the housing market, and prime properties are being scooped up by the knowledgeable buyers.

The time is right. Sellers who are pricing their properties correctly in this market are experiencing action and possible offers. Problems still plague the financing aspects of the real estate purchase, so buyers and sellers need to be aware of this possibility. Low appraisals also continue to be an issue.

The problem circumstances are highlighted in the condominium market. If the developer still owns a majority of the units, financing may be limited and almost, in some cases, impossible. If there is a program for special financing in these circumstances, I have not yet, found it but I am still searching.

Foreclosures continue, and short sales are changing. Investors specializing in short sales are contracting at a rapid rate, negotiating with the lender and flipping the property. Buyers and Realtors need to be aware that if the short sale is a flip, a lender for the buyer may require more time prior to financing. To further explain: a flip is when an investor contracts on the short sale and lists it for sale prior to the investor closing on such a property. Thus, it's reselling the short sale or flipping the property to a second buyer with the intent of capturing a profit in the second transaction. The transactions usually have a simultaneous closing where the investor closes in the morning and the buyer closes in the afternoon.

Fascinating! People are creative in every market. Knowledge is the key to closing on such a property. Researching the property, the seller, the lender and the flipping investor may be the keys to closing on this transaction if it is still a good deal for the buyer being represented.
Real estate is now a complex process. Working with a professional in the business full time is an absolute necessity in today's market.

The Realtors struggle with these changes as do the sellers and buyers, but a sunset walk on the beach will lower your stress level.

Buying on water an option...

In the early hours today, the sun was rising and the water was like glass. It was just perfect.
In a spectacular three minutes, five dolphins splashed in the wake of our boat. They must have known my granddaughter was with us as they put on their performance.
Welcome to the waterfront in Brevard County.

News reports continue to boast that Brevard County is undervalued. When I search the Multiple Listing System on Realtor.com, I must agree that some of the best buys are on the waterfront.
Oceanfront condos still lead the way in an oversupply, thus, tremendous values are in this category. Canal-front homes are certainly available in price points that are hard to believe.
Riverfront under $1 million is a price range that did not exist in Brevard County for many years, yet is available in today's market.

The economy is consistently showing signs of improvement. Is this oversupply in housing going to exist for many years? Are people continuing to purchase at an increased rate? The fact is, the contracts are being written and negotiated to a meeting of the minds, with an increased rate of activity that continues. Still, I predict an oversupply in housing for several years.

A balanced market is not forecasted for two to three years if this action is consistent throughout a two-year period. Sellers who are wanting to buy in this market must agree to sell low and understand that they, in turn, will buy low. This will offset the impact of a low offer.
Now that the interest rate has increased -- but is still at a very low rate -- one needs to jump into this housing market before there's another rate increase.

Increases or decreases in rates are controlled by the secondary money market and the economic situation. Rates under 5.5 percent still are excellent rates. The truth is, one does not know what the future rates will be. Appraisals still are coming in on the low side. If a buyer or seller has no consistent proof of the price that is negotiated in a contract for sale and purchase, it is recommended that a special clause showing the contract is contingent upon an appraisal reflecting at least the value of the contract price and performed within two weeks of date of acceptance, be added to the contract.

Your Realtor can assist you with the wording. If the appraisal results are known up front -- that is, in the early stages of the loan process -- any adjustments that must be agreed by both buyer and seller are done prior to the seller moving out of the property.

Hopefully, this market devaluation will not remain in existence much longer. It is the low sales of the past that influence the value indicated by the appraiser. A cash contract is an exception as no appraisal is needed. Bring on the cash contracts.

Now is the time to buy!

Wow! This market is exciting and challenging.

Real estate sales continue to sizzle as the summer heat comes to Florida. Carey Bay, in a DSNews article published June 3, writes,

"For the first quarter of 2009, only six states saw an increase in home sales,
and Florida was among the lucky few."

Carey further mentions that Central Florida seems to show more significant signs of recovery than other regions. The Home Building Industry is reporting an increase in new construction, which makes us all smile.

All of the indicators point to this being the right time to buy:

• Federal tax rebate for first-time homebuyers in the amount of $8,000. Note: First-time homebuyers must finalize their purchase by Nov. 30 to get this tax credit.
• Numerous financial assistance programs are available. Some offer a bridge loan to facilitate the use of the $8,000 tax credit as a down payment. Your Realtor can assist you with this information.
• Continued low interest rates.
• Continued availability of inventory in the housing market.
• Press releases indicate Brevard County is undervalued.Predictions of a mild hurricane season.

For all the reasons listed above, the Brevard real estate market has continued to be blessed with this flurry of action as buyers review their many opportunities for valuable purchases in today's market. Real estate sales strengthen the economic situation in so many ways that this is the first indication of economic recovery. The real estate market continues to face obstacles in continued low appraisals, difficulty in closing short sales and frustrated buyers who have lost money on past home sales.

The positive effects of this action far outweigh the problems. We have all learned to tighten our budgets, find energy and money-saving ideas to lower our household expenses, analyze and prepare for loan processing problems and boost those low appraisals by cash sales showing some value stability in this market.

Under the new Foreclosure Alternative Program outlined by President Obama, there is some help to streamline the short sale process creating a positive effect in moving the inventory of short sales and expediting the closing process.Local lenders are offering flexible and creative financing programs to enhance the opportunities for financing. Jumbo loans are enticing buyers with new lower rates.

The beach salt air brings a tranquility to our busy lives, the shuttle allows us to marvel in our manmade accomplishments and the abundance of Florida wildlife fascinates us daily. We are so fortunate to live in Brevard County.

Brevard buyers picking up pace.

The action is now moving from the low $100,000 price range to include up to the $400,000 range. This reflects the buyer's confidence in the upper middle values in today's market.
A slight increase in sales in the higher end market also reflects an increased confidence by buyers.

Fewer listings are coming on the market each month, giving a glimmer of hope for a change in this buyer's market . . . possibly sooner than the now-predicted three- to five-year period.
Interest rates continue to flutter but still hover below the 5 percent level, further enticing buyers to commit to purchase.

Prices continue to dip slightly but not nearly at the rate of depreciation in the past few months and the past year. Some neighborhoods show fewer to no available homes, but contracts reflecting any market appreciation are constantly stymied by low appraisals and are unable to close. As many buyers are now paying cash as are those who choose conventional financing. Federal Housing Administration and VA financing still are popular methods of purchase for moderately priced homes.

The luxury market is now being assisted by some lenders offering more competitive rates on jumbo loans, but lenders still are conservative in appraisals and loan-to-value ratios of 30 percent to 70 percent in this category.
Brevard County continues to find recognition for all it has to offer in housing, in climate, in beaches and lifestyle.

Having recently traveled to Alaska and finding cold temperatures in addition to rain, my heart still finds comfort in everything our area has to offer. Our own Northern Lights are the spectacular sunsets on the Indian River or the night launches that shake the earth with their power. No, we do not have the magnificent glaciers with aqua crystallized accents and the moose and bears that traverse the vast wilderness, but I will opt for the dolphins as they capture the bait fish.

I will enjoy the blue herons and our favorite river bunnies. And I will close my eyes at night as the stars and the moon shine through my window. There is nothing not to love in Brevard County. Spoken by a true native Floridian.

Things looking up for Brevard...

As the much-needed rains continue to fall on Brevard County, the grasses get greener and the birds and wildlife are happier. As the buyers continue to bring the deluge of contracts on properties, the bankers, the sellers, and the Realtors begin to smile. Life in Brevard keeps getting better.

The interest rates flutter but we are promised continuous optimism in the financing arena. The stock market echoes our prediction of economic strengthening and the nation comes a little closer to ending our crisis. With still an abundance of inventory in our area, there is a long way to go before properties appreciate.

The market in 2004, 2005 and part of 2006 jumped so very high, that in order to bottom out, it had a long hard fall. It is estimated that values today in our area, are in the range of 2002 prices.
In a few states and cities that showed a minimal depreciation factor over the past several years, it should be noted that those areas did not show a significant amount of appreciation in 2004 to 2006. Those areas are in the minority as most states and cities across the United States jumped high and now have fallen back.

Continuous efforts to increase the market value are stifled by the conservative nature of the lending institutions who are wrapped in tighter regulations. Loan processing is tougher and longer than in the past year. Lenders require more information and documentation from buyers prior to a loan commitment.

Insurance rates have, for the most part, shown a slight decrease, and more significant decreases are seen if a wind mitigation inspection shows construction that withstands hurricanes.
Incentives for storm protective features, energy/green features, grant rewards to buyers and sellers who purchase quality upgrades.

Buyers show continuous confidence that the real estate market is at or very near the bottom. Fewer "for sale" signs dot our neighborhoods, and some are not sure if the signs floated away in the rains or properties have sold. I will vouch for the sold. The activity in sales contracts each month since February have continued to increase.

Brevard County is a very special place to call home. The concern for the homeless, the hungry and the poor, by all of our residents, reflects the sensitivity and the caring nature of the people who live here. Even the Loggerhead turtles search every shore in the world and choose here to lay their eggs and give us the pleasures of witnessing their hatching.

Appraisal can set a home's sale price.

In this market, buyers cannot possibly overpay for a property if they are financing or the contract for sale and purchase is contingent upon the property appraising at contract price.
The beauty of purchasing in this "buyer perfect" market includes:

• Interest rates under 5 percent.
• An abundance of properties to choose from.
• An $8,000 tax credit for first-time homebuyers.

Now buyers have the best protection possible: lenders in our area and in most of the United States are mandated to proceed with caution in the appraisal process. The appraisal is scrutinized in "underwriting," and appraisers are following procedures to select sales from the past six months that are comparable to the property being financed. Appraisals, therefore, are low, and lenders will not lend if the appraisal or value of the property is indicated to be less than the purchase price.

In addition to using sales within the past six months, appraisers must use a "depreciated market adjustment" for the months past the time of the sale. This adds to the lowering of the appraised value. What does this mean to the seller? The motivated seller must price his/her property at the appraised value.

Fair or not fair? In my opinion, this keeps the market from increasing in value. The fact is, there is nothing we can do about this until the abundance of properties are absorbed and the balance of supply and demand comes to the real estate market.

The possible solution or correction to this appraisal issue is obvious: Sell low and buy low. Use the market to your benefit. We cannot change the past, and now we have to live with the conservative lender practices. It seems to be a lateral move if you lose on the sale and gain on the purchase.

As our crystal clear skies come with the occasional threat of thunderstorms, so too this wonderful, very active market, has some black clouds. But the sun continues to shine on Brevard County.

Contract protects both sides...

Sellers and buyers have rights under the terms of a home contract. The contract typically used for purchasing a property in Brevard County and most of Florida is called the "FAR/BAR Contract." It was developed and implemented with the Florida Association of Realtors and the Florida Bar Association. It appears to be a balanced contract for both buyers and sellers.
Certain addenda are usually attached to this contract giving the buyers the right to inspections and limiting the repairs of the sellers to a dollar figure that is agreeable to both parties.

In the addendum for inspections, the buyers typically have the right to cancel the contract and get a refund of all money deposited if the inspections are unsatisfactory in the opinion of the buyers. This condition for inspections and the right to cancel is for a limited time period, usually about 10 days from the date of signing the contract. Hiring a good inspector is essential in today's market. The inspector should notify the buyer if more inspections are necessary. For example, if there is an indication of past leaks and past moisture damage, a mold mildew inspection may be recommended.

Sellers should complete a "real property seller's disclosure" for the buyer's information. This disclosure will inform the buyers of past repairs and conditions of the property. Sellers must disclose items, not readily visible to the buyers, that would materially affect the value of the property. This is an obligation of the seller required by the contact and enforceable by the law.
Sellers can truly assist a buyer by providing additional information on what subcontractors were used for repairing air conditioners, electrical problems, pool problems and other maintenance or improvements on the property.

The buyers should be aware that an appraiser does not inspect a home for wiring, plumbing, heating, cooling, roof or appliances. The appraiser inspects the home for the size, condition, quality, age and location to determine the comparable sales and render the opinion of value for the bank in order for the buyers to secure the loan.

The surveyor has the duty of verifying the property lines and flagging any violation as to set backs and encroachments.

A title search is performed prior to closing to prove there are no claims or liens on the property that will not be corrected by paying off the mortgage, the taxes and any other existing liens.
The buying and selling process complex and these inspections and services provide assurance that the process is protective of both buyers and sellers.

The market continues to be extremely active as interest rates, although varied this week, continue to be low and the selection of available properties is outstanding. Smart buyers are taking advantage of this wonderful time in the real estate market in Brevard County.

Appraisals can make, break sale!

Clear blue skies, spectacular sunsets, beaches, rivers brimming with life, art shows, music in the parks and soon, the Loggerhead turtles will seek the dunes to lay their eggs.
How wonderful life is in Brevard.

The real estate action is fantastic too, with far more activity than in the past year. Offers, counter-offers, short sales and foreclosures keep everything moving. However, there can be some trouble in paradise for those experiencing low appraisals. With lender restrictions, appraisers appear to be guided to lower their value indications and cast a conservative view on the market. What is an appraisal? An appraisal is an opinion of value rendered by one designated and licensed to perform this evaluation. The appraiser is typically hired by the lender when a buyer applies for a loan on a property.

The appraiser inspects the property, then studies the market for sales that are current and comparable to the property. In analyzing the information, the appraiser adjusts the recent sales that are comparable by dollar values placed on differences in age, condition, location, amenities, quality of construction and time of sale.

A market depreciation is used if the sale was not quite as recent as other sales. A depreciation factor is used to indicate that the market value has gone down since the sale of the comparable property. An appraisal is subjective and given as an opinion of value. The value indicates a range because the value is not a fact but an opinion. The opinion of value is determined to be what a typical buyer will pay for in today's market.

This appraisal is an integral part of the loan process. The appraisal can kill the purchase if the value does not meet the contract price of the property and financing is necessary. Most recently, there have been appraisals that come in lower than the contract price. How can the market recover if the past sales indicate a depressed market?

The only way to increase the market value of a neighborhood and the homes within is to have some cash sales or sales where the down payment is so significant that the appraisal does not negate the financing. The lender is not causing this problem as the lender is bound by problems and current restrictions on mortgage practices.

The appraiser is not the problem because he or she is at risk if the work is not performed in a conservative manner. If we can inch upward in our value indications and not put the lender or the buyer at risk, the slightly higher sales that have been killed by appraisals will allow for a slight change, which is a welcome relief in our real estate market.

Let's keep the action moving and enjoy the treasures of this beautiful place we call home.

Ready, set, buy a home...

What are the steps necessary to purchase a home? The first step is to go to a lender and reveal your income and debts and apply for pre-approval. The next step is to look for a home. A good Realtor is a wonderful beginning to this process. Make sure this is someone who is knowledgeable and full time.

Location is the most important aspect of the property you are purchasing. Secure information on the Internet and learn the types of housing available within your budget. Do not base your choices on color of carpet or paint -- these are things that you can change. Base your decision on location and floor plan. Does this property suit your lifestyle? When you have selected the neighborhood, view every property in that neighborhood in your price range and investigate all of the active listings. Ask your Realtor to pull the sales, homes under contract and active listings from the Multiple Listing Service.

Understand the contract you are signing, and do not hesitate to ask the agent to explain this contract in detail. I would also suggest an "inspection addendum" that gives the buyer the right to cancel the contract and receive a return of deposits if the inspection of the property reveals a problem you cannot accept. After a contract has been negotiated to a meeting of the minds on price and terms, you should apply for your mortgage.

Next are the inspections. Hiring an inspector is an essential part of checking out a home.
Ask if there is anything that you, the buyer, should be concerned with now or in the near future. Ask the inspector if he thinks there is anything in the home that indicates a further inspection is necessary. In Florida, you should always have a termite inspection. If the inspection is acceptable and the items you want to be repaired are agreeable to the seller, you now go to the next step.

The mortgage company or lending institution will order an appraisal of the home to determine the opinion of value based on current comparable sales in the neighborhood. The appraisal may come in low. Appraisers are guided, in this timeframe, to be conservative. I disagree that the appraiser should be guided this way. I believe the appraisal should be accurate and based on current sales, not a forecast of doom and gloom for the future.

The market value will never recover if appraisals are mandated to eliminate any appreciation in the market. But I do not guide the appraisers and banks nor do I create the value. You should also do a final walkthrough of the home before you close. Take time to make sure that the closing costs, interest rate and amount due at closing are what you had expected. The market is great and the interest rates are low. There could not be a more perfect time to purchase, so feel good, you are now a part of the American dream.

Market continues to move.

As the heat of the summer begins to approach, the sizzling activity of sales in Brevard County is the greatest in many months. Fueled by short sales and foreclosures and fired up by the lowest interest rates in years, the economic forecast indicates the light at the end of this tunnel is shining a little brighter on Brevard.

Existing lending institutions echo President Barack Obama's mandate "to help the homeowner."
Lenders are working with sellers in foreclosure, to recast loans, by lowering the interest rates, extending the foreclosure process or eliminating back payments. Communication with the lender, by the homeowner, is imperative. If the plan works, it could decrease the number of foreclosures and lead to a stabilization of the real estate market sooner than expected. By "sooner than expected," I mean stabilization will be seen in two years rather than three.

On the other hand, the delay in foreclosures may just mean that another wave will come at a later date than originally predicted. With the economy showing some signs of recovery, let us hope the foreclosures will be rescued by employment and budgeting by the homeowner in distress. Utilizing all of the counseling, refinancing and recasting offered by lenders, this type of homeowner has some alternatives rather than losing his home.

In some neighborhoods, the abundance of short sales and foreclosures has been eliminated, and buyers are finding they have missed the bottom-of-the-market bargains. Sellers, not in duress, are holding to somewhat higher prices and buyers will determine if they will purchase for the higher than short sale or foreclosure price or move on to another neighborhood. The future holds the answer to whether more short sales and foreclosures will appear or is this the corrective process of the real estate market?

Buyers may be frustrated at the change in a neighborhood from an abundance of short sales to none at all. The buyers must remember that even though they missed the short sale, the prices are still extremely low compared to the price to build. This, too, will change. New homes are being sold with no profit to the builder but the inventory and selection is growing smaller. There is still an oversupply and there are still great values, but the very best deals are disappearing.

The latest Housing Chartbook March 2009 economic forecast indicates the market may still drop slightly but next year's interest rates are predicted to increase slightly, therefore, negating any advantage for buyers to wait. Buying now at today's low prices, low interest rates and still with a good selection of inventory has buyers rushing to contract on existing homes.

Sell low, buy low the motto

Some in this real estate market need to sell and some must sell. Here are some hints for those sellers who must sell:

• If you are relocating to a new area, search the area to see if the market where you are headed is as soft as the market in Brevard County. Most likely, the prices in the area you are going to also are low -- or maybe even lower. The term "sell low, buy low" should be your motto. This could be your chance to purchase your dream home for a much lower interest rate. Sounds like a win-win situation.
• If you are staying in Brevard County, you also win with the "sell low, buy low" motto.
  Visit or call three lenders and check interest rates. Ask for a "pre-qualified" letter so, when you do sell, you have a good idea of what you can purchase.
• Now for the tough part: placing your home on the market. Staging your home to sell is paramount in today's market. From curb appeal to every detail inside and outside of your property, your mission is to make it look perfect.
  

Step back from your house and look at the sidewalk, the yard, the flower beds, fencing and front entry porch. All should look clean, crisp and manicured. The front door should be freshly painted and sparkling clean. If you could imagine that the most important person in the world is coming to visit you at your home, how perfect would you want it to be? This is the standard that your house should reflect. This sterling presentation can lead to a quicker sale.

Inside your home, remove all clutter. The clutter could be a favorite collection or display, but it complicates the view the buyer sees of your home. Simplicity is key, and minimal furniture for maximum space presentation is your goal for home staging. Light, bright, open and airy are selling points of a Florida home. Any time that you can bring the outdoors in by opening windows and showing beautiful views, do it.

• Pricing is more important than the way your home shows. Believe and understand that the buyer does not know, nor does he care, about the amount you need to sell for. The buyer most likely has experienced the same shock at pricing that you have experienced. The buyer is here to buy low because he sold low.

Why are we still thinking that we can sell for prices from 2005? We cannot. Get smart quick. Understand your market and believe that it has changed. Just hold on to the fact that you can gain by also buying in this market. The market is extremely active in a variety of price ranges. More activity is seen in the under $300,000 range. Great values can be purchased in the luxury housing market. The condominium market continues to render great buys with some moderate change in pricing. More activity in the next few months is predicted to continue as families begin to relocate over the summer months.

Selling low lets you buy low, too.

Because it is a buyers' market, some feel that selling is not the right thing to do now. Not necessarily true. It all depends on what your plans are. The time can be right to sell if real estate is in a sell-low, buy-low market.

If you are moving locally, do it. Selling in the soft market and then buying in the soft market can work out in the long run. If you wait, say five years, for the market to become stronger, you may get more for your house, but you'll end up paying more too.

In other words, if you sell high and stay in the same area, you likely will have to buy high, too.
We would all like to sell high and buy low, but this doesn't work unless you plan to move from a high market to a low market -- much like people who moved from the Northeast did when they came to Florida years ago.

Here are the most important reasons to buy now:

• Low interest rates: According to Freddie Mac, 30-year interest rates have hovered around 6 percent since the beginning of the year.
• Portability of the Homestead exemption on your home's taxable value.
• Wide selection: Nearly 300 homes are listed in Melbourne on the Multiple Listing Service this week.
• Low prices.
  

Here are the most important things to remember if you are trying to sell now:

• Price: Be realistic and price your home correctly. Stop dreaming about the high prices. They are long gone.
• Condition: Make needed repairs, remove clutter and clean, clean, clean.
• Availabilty: Be prepared to have your home shown at short notice. Do not postpone or re schedule any showings.

This is a great market for buyers and sellers to fulfill their dreams. It all depends on your perspective. Think about it. It can work to your advantage.

Programs provide assistance...

The March wind must have pushed potential buyers to rethink any decision to postpone their purchase. The activity last month, although all statistics are not yet in, appears to have come close to doubling sales production from the preceding month. Wow!

Does this mean we are out of the downward economic spiral and beginning to spin toward that light at the end of the tunnel?

So many factors have created the advantage on the buy side. The lowest interest rates in many years, the abundance of selection available in the real estate market and the incredible values in prices. But the fact remains that many homeowners have over-financed their property. Homeowners, who have owned their home for many years, refinanced when property values were high and pulled the equity out of their home for use on other things. In addition, buyers in the high market times were given loans they could barely afford, and some of those loans had an escalation clause to increase the interest rates in the future.

Some sellers had placed a large equity line on their home to speculate and purchase more real estate as an investment. Even conservative homeowners with a small loan may have found themselves without a job or a decrease in pay, creating a financial hardship. Lenders, in the past, were eager to lend, and in some cases greedy to lend, and allowed homeowners income ratios to high levels of debt. When the economic conditions changed, income for many decreased. This created a devastating situation for the homeowner who over-financed. The result is the creation of the short sale and foreclosure market.

How do we help those homeowners faced with losing their homes?

President Barack Obama has created the HUD counseling hot line. Financial counseling is available by going online at financial stability.gov or calling 1-888-995-4673 Be prepared to have all of your financial information at hand. On the local level, Brevard County judges have created a plan to assist homeowners. The plan cannot and does not eliminate foreclosure, but offers the chance for the homeowner to mediate with the lender before final foreclosure proceedings. The Brevard County plan, created by the 18th Judicial Circuit Court, mandates communication/mediation between the lender and homeowner. The procedures for this plan are found by going to FLCourts18.org or calling 617-7238 for a mediation appointment. The cost is $250.

Market still has plenty to offer.

Because home sales are starting to sizzle does not mean the prices are soaring. But the sun is still shining because home sale activity is the first sign of economic recovery. Prices never go up until the market becomes balanced. That is, the number of listings -- and the number of sales -- are consistently similar in a given time frame. But the next step must also occur. The volume of sales must top the number of listings to create a scarcity in the market. Scarcity creates demand and demand increases the market value of the property. More simply, there exists more buyers than sellers.

The reality of this active market is that prices are continuing to drop slightly. Sellers need to be educated that the market continues to have a substantial oversupply. Much of the oversupply are short sales or foreclosed property. Sellers need to be aware of short sales if their property is on the market competing against this type of listing. Short sales take many weeks and sometimes months to close.

Lenders who are working with sellers on short sales need considerable information from both the buyer and the seller. The seller must prove financial hardship, in most cases, to qualify for a lender-approved short sale. The buyer must be qualified and patient.

The seller still has control of the property and may or may not accept a contract presented. In some neighborhoods, there are few short sales or bank-owned properties. The values in these neighborhoods tend to hold and not decrease as in the neighborhoods with an abundance of short sale listings. If one or two homes in a large neighborhood are short sales, this may not decrease the market value of the neighborhood.

As the market stabilizes, the sales become more of an "arms-length" transaction. That is, the sellers are not under duress and values begin to hold. Short sales are usually placed under contract quickly and with multiple offers. There is a lengthy delay in closing due to the lender-required procedures. Buyers who are patient usually close with an excellent value. There are also many excellent values that are not short sales. Buyers are smart by buying now even if the prices dip slightly in the future. The interest rate is so low that it is highly unlikely that these conditions can continue.

If the rates increase, the buyer loses the advantage that he/she has in today's market. It is obvious with this type of sale activity that the selection of the best values in price, location and condition will soon be picked over. The time is right to buy.

Brevard a great place to call home.

Spectacular launches at dusk remind us that astronauts are a part of this world and more. Hummingbirds bring our focus, not only to the beauty of those tiny colorful birds, but the abundance of tropical flowers that surround us. Calm river waters reflect the clear blue sky and give us a peek at the old horseshoe crabs, schools of mullet, graceful dolphins and colossal manatees. The rolling waves on Brevard County's beaches are speckled with our talented surfers, sandpipers, pelicans and mischievous seagulls.

Large, rare Loggerhead turtles select our shores to nurture their eggs until hatchlings are born to begin the cycle of life. Croaking frogs and wild herons awake us to the stunning beauty of nature that surrounds us. As the foreign birds flock to us, the British visitors are in a feeding frenzy over Brevard values. Even though the pound went down, the "down" of the pound is offset by the down in the prices.

First-time homebuyers swarm as $8,000 in incentives, low rates, (below 5 percent), and a great selection of inventory entice them to purchase now. The retirees can delight in the lower values as they purchase with limited dollars from the loss in their IRAs. Larger families wanting to upgrade, lose in the sale, but gain more in their purchase.

Find peace in the positives of nature, the true friendliness of our people and fabulous value in our real estate today. From my perception, what's not to love in Brevard County?

Short sales abound...

What is this term "short sale" that everyone is talking about? A short sale is a sale of a property that is short of the mortgage balance owed. Normally, if one owed more on their home than the value or sale price, the seller would bring the difference of the balance owed to closing in addition to the closing costs.

Yes, some sellers have come to the closing table with a check in excess of $100,000 just to sell their property in a tough market. In this market, when a seller has negotiated with the lender an agreement to sell the property and have the lender take a loss on the mortgage, this is termed a short sale.

Typically, the homeowner has missed some payments on the mortgage. In addition, the homeowner is not financially capable of making continued payments and is risking losing the home to foreclosure. The short sale precludes the foreclosure and allows the seller to close before the seller loses the home. Yes, it is a loss for the seller and a loss for the lender.

The benefit, as I see it, is the fact that the bank or lender does not have to wait while the foreclosure proceedings are completed. The foreclosure procedure alone, can result in high attorney's fees, a considerable amount of time (sometimes more than one year), deterioration of the property and a loss which is usually greater than the loss incurred from a short sale.

The benefit to the homeowner is being rescued from foreclosure and the humility of such a procedure. The term short sale is so widely used and accepted it does not hold the same stigma as the term foreclosure. Yes, the owner suffers some embarrassment but in this economic state, but most of us are humbled simply by the fact that we have all lost in this economy.

Short sales are a sign of the times. The market is full of short sale listings. A good Realtor can give you a list of such properties. Do not think that all of these listings are the best buys on the market as many sellers, who have equity in their property (since they purchased their home many years ago) are willing to sell at today's short sale prices.

The best buys of short sale properties are being absorbed very rapidly in today's market. Short sale listings often bring multiple offers. In some cases, the agreed sale price is more than the price agreed to by the lender. The fact that there are multiple offers occasionally push the price of the property slightly higher. Get those great buys while you can, the market is sizzling with cash buyers.

Smart pricing saves the day.

Buyers are here and are actively purchasing well-priced homes. People who are unrealistic about the state of the market and overprice their homes have a negative effect on the local market. The facts are sound.

If your property is overpriced, why keep it on the market? It does not have a chance of selling in a buyers' market. In fact, the overpriced property clogs the market with additional inventory. If you, as a seller, want to test the market, now is not the time. Market value is determined by the balance of supply and demand. An surplus leads to lower prices forced by such competition. A deficit leads to an increase in property values.

A unmotivated or unrealistic seller needs to withdraw his property from the market and wait, yes wait, until the market catches up to the expectations of this seller. In this way, the inventory will decrease and the process of market correction can be expedited. The premise that the first sign of economic recovery is in the real estate market indicates the need for sellers, who are "not" motivated, to eliminate this excess inventory and assist in economic recovery.

The real estate market continues to increase in activity and in the volume of sales. This type of activity is seen in this area and in many areas throughout the nation. If these sales continue for a long period of time, economic recovery is in the future. Optimism is a state of mind.

It is a conscious state and at this serious time, it is important we, not only think positively, but we act positively. If there is anything one can do to assist in economic recovery, it is these positive thoughts and positive actions.

It pays to invest in your house.

The sprinklings of economic recovery are seen in today's real estate activity. Recently, I have received positive communication on the state of the activity in the real estate market. Again, the real estate market is believed to be the first indication of change in the economic situation.

We are far from increasing property values due to an oversupply of inventory. However, we are active, and the activity continues to increase. This is our positive sign of recovery for the near future. I would like to review some information given to me by Binki Kaiser, a local real estate expert, from the National Association of Home Builders Web site:

Statistics show that the median price of a house in 1996 was $140,000. Today, that same home would have gained more than $100,000 in value and in most cases locally, this property would have doubled in value.

In addition to looking at the return on this initial investment, the fact that the homeowner would have paid down a significant portion of the mortgage in the interim, creates even more net worth for the owner. The initial investment would typically have been 20 percent or roughly, $28,000. The value today of $280,000 with a $28,000 investment is an impressive return.

Homes tend to increase in value while the alternatives can be extremely volatile. Believing in private property rights and home ownership, in my opinion, is living the American dream. Repeatedly, I have stated that investing in one's home is one of the safest investments for long-term appreciation and security.

Words of wisdom in this market and in any market: Do not take the equity out of your home. Leaving the equity in your home is a wise and safe move for future planning. When selling your residence and purchasing a new home, transfer the equity of the home sold to the new purchase and do not be tempted to spend the wealth you have created in home equity.

This economic situation is teaching us the safe, conservative and secure method to handle real estate. The problems of the past and present teach us the conservative ways of the future.

Property starting to move.

During the past month in a first look at statistics for 2009, the information available to me shows more listings coming on the market in January than in the month of December. However, this is very typical of the beginning of a new year when sellers evaluate their need to move in this market.

The average number of days for a listing to stay on the market is 107. This is an excellent sign the market is active and more listings are being priced realistically in today's real estate market. Commercial and income-producing properties are beginning to sell. More activity is reported in these areas than in the past month.

The most active price range is $300,000 to $500,000. In my opinion, this a good sign because in prior months this was one of the slower price ranges to move. There is considerable action in the less than $150,000 price range. It is reported that investors are looking and purchasing homes under $100,000 in all areas of Brevard County.

The most valued bargains in today's market are receiving multiple offers. We have not seen this type of action on certain listings since the heydays of 2004 and 2005. The difference is the values are so much lower than in the past years. Properties receiving multiple offers are properties that are definitely reflecting a great value in price, age, condition and location.

One of the most interesting statistics is the number of cash closings for the past one-month period. Cash closings far outweigh the number of sales being financed which, in my opinion, indicates that buyers may be liquidating their holdings in other areas to purchase real estate as a more secure investment.

Placing money in your home or second home typically is a safer place to have your investment as we witness the extreme volatility of the stock market. Some owner financing is apparent in the recent closings. This confirms that sellers can sometimes receive more of a return by holding a mortgage than placing their money in CDs at a lower rate of interest.

If you, as a seller, are thinking of holding a mortgage when selling your home, make sure that the mortgage is as safe as you can make it by requiring 20 percent down payment and excellent credit. This can save the buyer closing costs, eliminate the need for an appraisal and expedite the overall closing process.

The real estate market in Brevard County is sizzling with action. Remember if you are a seller and you want to sell and buy in this market, you have to give a deal to get a deal. Rates are low, inventory is in abundance, and programs and incentives are available for your place in the sun.

Buy now, it could pay off in future.

It's hard to say no to purchasing real estate in Florida when the government offers $15,000 back to you in tax credits, the banks are offering the lowest interest rates in years and this is a buyer's market giving you the variety of choices in every style and price range. The icing on the cake for non-residents is to become a Florida resident and eliminate your state income tax along with the enjoyment of pleasant weather, blue skies and sparkling waterways.

All of these elements for purchasing may never line up like this again in your lifetime. I recently met an intelligent Floridian who claims to have created his own pension through his many real estate purchases in Brevard County. Granted, this man was a person of wealth, but his challenge, as is most everyone's challenge, is how to invest in a safe manner for retirement. He said he likes to "feel and touch" his investments so he has eliminated the purchase of stocks from his portfolio.

Owning and exchanging real estate has always worked for him in the past. He has now invested all of his holdings and purchased more than a dozen homes. These properties are rented with competitive rental prices and are professionally managed. He is able to depreciate these properties on his income tax each year and he uses the revenue for income or his pension.

On a smaller scale, many of us may be able to do the same, however, this is not something one can accomplish in a short period of time. This done, one purchase at a time, could be a lifetime goal for retirement. Safety measures must be used if real estate is an investment and used for rental purposes.

Meeting with a good accountant to review the advantages of Starker exchanges and the affordability of one's plan to purchase is only the first step. Consulting with a good Realtor on properties and rental rates, consulting with a good banker on mortgage interest rates and consulting with a good financial planner will give a beginner a good start for a great plan.

Don't let emotions ruin deal...

There is a time to move, and a time not to move. A time to negotiate and a time to stop negotiating. Residential real estate is emotional -- it is our home, either the home we are selling or the home we are buying.

A home is about family, it's about relaxing -- it's a reflection of the pleasures of one's life as we decorate and create our own personal and charming place to find peace and happiness. It is about memories of times past or a look forward to future good times. This is why purchasing or selling one's home is so very emotional. As a counselor in residential sales, I hold up the red flag of caution when the negotiations become too emotional. Your emotions can cloud your thinking and negate the goal that you have been heading towards.

In today's market, make sure as a seller that you truly want to sell this home. You may only have one good chance. This is difficult, but a seller today must try to take the love that you have had for your home out of the transaction. Take the emotion out of the negotiation on price. If the price can be met with agreement and this price is within the market value range as indicated by past sales and current listings of similar properties, then take the offer.

Look at the bottom line and try to be unemotional. If you are getting what you need to move where you want to go, then, go for it. It is highly unlikely that you will get a price that is more than the value indicated by this market research. The fact is, if you as the seller will then be the buyer in this market, you are not losing. You are taking advantage of this market for you own benefit in your purchase of a new home. We call this sell low, buy low.

Do not let the closing date destroy your chance to buy or to sell the property. If the seller wants to sell and the buyer wants to buy, this is the time to compromise. Moving out of your house takes time and effort, but it can be done in 30-60 days. The shorter the time frame to close, the less likely problems will occur prior to closing. Buyers need to stay excited about the purchase and they need to own their new home in a reasonable period of time. Delayed closings can result in change of interest rate, change of family or job status or just simply a change in desire called buyer's remorse. Because selling and buying a home is emotional, keep the good and positive energy moving on this type of transaction and all parties will be happy at the closing table.

Obama brings hope to market

When the thermometer dips to freezing, the snowbirds head South. Being a true native Floridian, when the temperature was expected to dip to freezing, I took the cue from my Northern friends and headed South -- to South America. To summertime, to long hot days, to sunsets at 8 p.m.

Meeting select Americans who serve our country at this southern tip of the world, I found their perspective of the United States insightful. Whether Democrat or Republican, the support of the new president, Barack Obama, is incredible. Views from outside the U.S. resonate the uplifting nature of a new beginning, a fresh start for the United States of America.

Positive in the economy, positive in housing, positive in the American dream. A woman in Montevideo, Uruguay, asked me, "You are an American?" When I nodded and smiled, she continued, " 'We' have a new president of the world. When the United States elects a president, he becomes the president of the world." How powerful, I thought, "president of the world."

Although we in Brevard County have not suffered as severely as the rest of our nation, as the temperatures dip to give us a taste of the cold, we have felt but a taste of the tough economy.
Soon the sun will warm us, the beaches and rivers will come alive with activity, sending a positive flurry to our housing market -- the basis of our economy. Interest rates are fluctuating at times lower than 5 percent.

We look forward, with hope, to the new president and an upswing in our economy. The world is watching.

Staging home can boost sale!

The hottest market in real estate is under $100,000, followed by the under $200,000 price range for homes, townhouses and condominiums. So where do you go if you are a seller in another price range?

Investors and homebuyers who have time to wait are looking for properties that can be purchased for 15 percent to 20 percent under market value, and they are not looking for "fixer uppers." In fact, the typical buyer in the price range of $400,000 to $900,000 is looking for a property that shows like a model home. And they want all of the furniture, too. This is all negotiated in many sales in today's market.

Stage your home for selling. Here are some tips:

• Exterior appeal from the curb, up the driveway and to the front door should be impeccable.
• Flower beds should be mulched and weeded, plants trimmed and spruced up to lead buyers to the entrance.
• Your front door should sparkle and shine with new, neutral paint, as should the exterior and interior of the property.
• The first thing visitors should see as they enter is a light, airy and bright view of your home. This should capture the heart of the buyer, especially if he or she is from the North where the snow is still falling.
• The carpet should be clean and possibly, just vacuumed. Be prepared to vacuum when you hear a potential buyer is coming for a look.
• The smell of the home should be as fresh as the outdoors, not camouflaged by scented candles or plug- ins.
• Showcase floor space by removing small area rugs. Consider storing some furniture and accessories to keep the look clean.
• Kitchen counters shouldn't be bare, but consider hiding some small appliances, cookbooks, notepaper, pencil boxes and more to create a clean look -- one item per section of counter is a good rule of thumb. Likewise, get rid of dirty dishes and shine up faucets and sinks.
• Bathrooms should be impeccable with shiny showers and tubs and closed toilet lids.
• Owners and pets should exit the property before each showing.
• Back porches and barbecue areas should offer seating and be surrounded by tropical plants offering visitors the image of outdoor entertaining to the fullest. After all, this is the Florida lifestyle.
• Beds should be made, and bedrooms staged like a model home with lamps and nightstands that coordinate in colors that are soothing.
• Utility rooms can show some signs of use but one should be able to view the storage areas and the versatility of the room. The same is true of the garage and closet areas. Just make sure that all are not too cluttered to detract from the use of the room.
  

Now that your home is staged, it may be necessary for you to camp in the nearest hotel because it is difficult to live this way. Competition is fierce, but buyers are out there in force.

Brevard numbers show an upswing

Statistically speaking, real estate activity closed out 2008 on an up note.

The change in sold residential listings from November to December of 2008 indicates an increase in volume of 29 percent. From December of 2007 compared to December of 2008, residential sales volume increased by 13 percent.

These are the statistics from the Multiple Listing Service reports in Brevard County.
On all types of properties, the sales volume increased from November to December of 2008 by more than 18 percent.

The increase from December 2007 compared to December 2008 was more than a 6 percent increase in volume of sales.

The overall market comparing each and every month in 2007 to 2008 indicates that sales volume showed a decrease of less than 3 percent. The significant increase in activity came at the end of 2008 indicating positive signs for real estate in Brevard County in 2009.

Bottom line: Consider this an upswing in the market.

Where are the best buys? The average sale price in Brevard County for 2008 is in the $152,000 price range. This price range shows the most activity because there exists an oversupply, and one can purchase in the price range for approximately the same monthly payment as one can rent.

Let's look at the numbers.

A mortgage payment on a $150,000 home would compare favorably to a $1,000 a month lease.
Many buyer assistance programs are available to those who can qualify for the payments.
Please contact a local lender for a list of "down payment assistant programs" available to you.
Payments on 80 percent of the purchase price at 5.25 percent on a 30-year fixed rate mortgage are $663 per month. Adding in an estimated $210 per month for taxes and $150 per month for insurance, one can have a "tax benefit" and enjoy all the rights and privileges of "home ownership" for $1,023 per month. Please note that there are many, many properties available for under $100,000.

Residential homeowners who are looking to downsize in the future should look at buying now and renting out their newly purchased property until such time as their lifestyle indicates the need to downsize and move in to their investment property. Proceed with caution when purchasing property for rental purposes even if just for an interval time period.

One year's payments should be in your savings account along with a reserve for maintenance and repair. This is a protective measure for loss of rent, which could happen, in today's market.

Positive actions key to success.

The book "The Secret" introduces the reader to the great power of "positive actions." This New Year of 2009 is the year for positive actions. We have been beaten down with the negative and it is time to gain strength from the positive. Every positive action receives a positive reaction. A simple smile gets a smile in return. Kind words are responded to with kind words.
Recent reports indicate that "recession survivors" may gain strength as weaker companies die off.

Smart businesses that diversify to withstand the economic challenges will become stronger. Space programs that have been faced with shortfalls in funding exhibit creative ideas to develop alternate programs to enhance their staying power. Slim state budgets offer opportunities for innovative ideas for funding sources. Businesses find their strength in positive attitudes of their employees filtering to exemplary service for survival.

I was speaking with a brilliant family business owner on New Year's Day and her comment was, "our company and this family is not buying into the bad economy concept. We have decided as a company and as a family to speak to the positives." This family has the "secret" and their company will not only survive but will thrive in this economy. Not just by thinking in a positive manner but by doing all of the positive actions to create the positive reactions of their customers to their products and services. And so it will be that the ones who perpetuate the positive will feel less of the effect than the ones that perpetuate the negative.

Brevard County has every reason to be positive. Travelers are snowed in -- literally trapped -- while we enjoy the beautiful calmness of the river, the spectacular sunrises over the ocean and the wildlife in our sanctuaries. How can we possibly experience the negative in this location? Our businesses are not only surviving but gaining in their strength. The word is out and continues to spread.

The great values in homes and condominiums in our sterling location call more buyers to commit to purchase in Brevard County. True, prices continue to drop but the properties continue to sell. The prime properties are moving at a rapid rate. To be more specific, those properties that are bargains in price and tops in location are the fast sellers. More sales each month than the month preceding and we move onward and upward, strengthening in our real estate base. We, Brevard County, are the best kept secret.