How Much is Your Love Worth?

06.20.09 by
Okay, so you love that house. But just how much is your love worth? That’s the question that faces every home buyer during any economic season. Sometimes the answer is easy. In hot markets, the answer can be short and sweet: If you have to ask, you can’t afford it. Not too long ago, in the sizzling markets of California, if you even took the time to ask, the property was already gone.
Enter the cooler markets. Today, most markets have a good supply of houses and buyers can take a little time to look for the right house at the right price and make a reasonable offer. Still, how you set the bid for your dream house matters.

Real estate agents make it their business to know what houses sell in neighborhoods and for how much. That’s why asking a real estate agent for a neighborhood market assessment can be such a crucial step in setting your bid price.

Agents will compare the sellers asking price to other homes in the area. Typically in volatile markets, agents will look at selling prices for homes in an area during a two to four-month period. In stable markets, they might use a 12-month standard.
Added to actual sale prices, you can consult Websites such as Zillow or Trulia for a general idea of pricing. Zillow, which does not list houses in every market, gives estimated values for individual properties. Trulia gives estimated home values for neighborhoods. The problem is that no computerized estimate can tell you about the charm of a home ­- or how motivated a seller is.
You can also consider the home’s tax assessment. But this is very often nothing like the whole story since low assessments are rarely challenged.
Even knowing what the seller paid for a home doesn’t tell you much about current property values. It might, however, tell you something about how much equity and emotional attachment the seller has to a home.
Sometimes hiring an appraiser can give home buyers a little comfort since buyers can insist that the house appraises for the asking price.
Nonetheless, even in cool markets, an insultingly low bid on a great house will probably not get you into your dream home since, whether there is a buyer or not, a charming home is still valuable and is worth holding for the right buyer.
Best case: Do your research and trust your real estate expert’s analysis.
If you’re considering a purchase. we know and understand our local market. Visit our website GabeSanders.com or call us at (772) 888-2885.

Read the Fine Print

06.13.09 by

After all your preparations and marketing efforts, what do you do when you get that first offer? Don’t jump for joy or wallow in disappointment until you’ve read all the terms. Price is just the beginning, and other contingencies will ultimately affect your bottom line.

In reviewing the offer, pay attention to seller concessions, which can range from asking you to pay closing costs to include an allowance for roof repairs. Buyers may also request the inclusion of certain articles of personal property not physically attached to the home. This might include the refrigerator or pieces of furniture. You can decline or accept the terms, but it’s best to establish in your listing those items included and excluded in the sale.

Mortgage and appraisal contingencies indicate that the buyer will seek financing at a certain rate and terms and that the appraisal must satisfy the lender. Make sure that all of the terms are realistic, and that there is a reasonable time limit for the buyers to secure their financing.

These and other terms in the offer impact how much you net from your sale, regardless of what actual buying price is stated. It’s possible that a “full price” offer could result in thousands less than a lower offer with fewer contingencies, so please consult with a representative before listing and before accepting or rejecting any offers.

Understanding real estate dilemmas and their solutions is our business, and we’ll happily share our knowledge with you. Why not visit our website GabeSanders.com or call us at (772) 888-2885.

Understanding the Language of Loans

06.06.09 by

Your Realtor may not write your home loan, but that’s who will probably be there when you begin discussing mortgage options. Knowing some of the nuts and bolts before you start your home search can help you find the right loan.

Factors affecting your terms are the amount, the length of the loan, and the loan-to-value ratio (how much of the home’s value you are financing). Larger loans carry more risk to the lender, so the interest rate may be higher.

Similarly, a smaller down payment represents more risk, possibly warranting a higher interest rate. Get the best rate by putting down as close to 20% as possible.

The difference between 15- and 30-year loans is also critical. Payments for a shorter term will be larger, but you’ll build equity much faster, and enjoy a slightly lower interest rate.

Also, understand the workings of an adjustable-rate mortgage (ARM). You need to be fully prepared for what may happen to your payments after the first adjustment. However, something like a 5/1 ARM (a fixed rate for five years and an adjustment each year thereafter), could be a good idea if you’re buying your first home and don’t plan to stay longer than five years.

Discuss your hopes and objectives with an agent, who can help guide you down the road to homeownership.

If you’re considering purchasing a home, but feel ‘out of touch’ with what’s happening in real estate visit our website GabeSanders.com or call us at (772) 888-2885.

Springtree in Stuart Florida

05.30.09 by

Springtree is a beautiful small development just west of US 1 in Stuart, Florida. Conveniently located between Indian Street and Salerno Road, Springtree is close to shopping, restaurants, beaches and easy access to I-95 for commuters. This community is a wonderful family neighborhood and in the Martin County ‘A’ rated school district.

 

Engle Homes completed this community between the years of 2000 and 2003. This is a gated community with a lighted lake and fountain as the centerpiece of the community. Many homes boast wonderful private lakeside views. Springtree also has a number of preserve areas as well as a playground to keep the tots occupied.

For real estate information about Springtree or other fine Treasure Coast Florida Homes, visit our website GabeSanders.com or call us at (772) 888-2885.

 

The Difference Between Selling And Dwelling

05.30.09 by
There is a special mindset associated with “staging” your home to sell in a soft market. Staging refers simply to the act of improving your home’s appearance in order to appeal to the widest segment of potential buyers. The approach you must adopt is to see your home with an objective eye.
Stop looking at your home as your “home,” and start visualizing it as the “product” it becomes when it enters the market. Both a real estate agent and a professional home stager can help to market your product successfully by highlighting positive features and downplaying less attractive aspects.
Since you may have a strong emotional attachment to your home, you may not fully appreciate hearing about a better way to show your offering, but try to recognize that the way you decorate to SELL may be quite different from the way you decorate to dwell. The appearance of space often trumps its functionality when impressing buyers.
Your goal is to sell quickly at a fair price. A survey by a large national real estate brokerage showed that staged homes sell in half the time, and another survey of REALTORS® showed that a $500 “staging” investment recouped 343% of that cost. So be prepared to swallow a little pride, move some furniture, and field better offers on the road to your successful sale.
Understanding real estate dilemmas and their solutions is our business, and we’ll happily share our knowledge with you. For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Spacious Pool Home for Sale on 5 Acres in Palm City Farms

05.28.09 by
Secluded yet Close
• 2,344 sq. ft., 2 bath, 3 bdrm single story “Spacious Floor Plan” – MLS® $449,000 USD – Great 5 Acre Location

Palm City Farms, Palm City – Nicely updated and spacious CBS home on 5 private acres in Palm City Farms. A private paved road leads you to this wonderfully secluded setting, yet close to shopping, “A” rated schools, and restaurants. A large patio area with a screened oversized pool (new in 2003) is perfect for entertaining or lounging in the Florida sun. Spacious rooms with lots of closet space include a formal living room, dining room, large kitchen family room combination with a wood-burning stove, and office. The land is completely fenced and includes a large stocked pond with a dock. Fish, ducks, and turtles abound for nature lovers. Native trees and open spaces make for an incredible private oasis. New roof and AC in 2001.

 For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Pierpoint Yacht Club Condo for Sale

05.26.09 by

• 1,300 sq. ft., 2 bath, 2 bdrm condo “2’nd floor, end unit” – MLS® $99,000 USD – Exceptional value

Pierpoint Yacht Club, Stuart – 2nd-floor end unit, 2 Bedroom Condo located just steps from the wide Saint Lucie River in Pierpoint Yacht Club. Located in the heart of Stuart, close to beaches, restaurants, and shopping as well as downtown Stuart, yet in a wonderfully private and secluded setting. This premium adult community features a community fishing pier with docks and an active clubhouse with a fitness center and two community pools. Come take a look at this wonderful opportunity.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

4 BR Lakefront Pool Home for Sale in Springtree, Stuart Florida

05.25.09 by
2,118 sq. ft., 2.5 bath, 4 bdrm 2 story – MLS® $250,000 USD – Priced to Sell
Springtree, Stuart – 4 Bedroom Screened Pool Home with gorgeous lake views in the private convenient gated community of Springtree.

This family-friendly community is close to Martin County beaches, convenient shopping, and wonderful restaurants. This district includes all ‘A’ rated schools. This home has generous room sizes and ample storage. Well located in the community with no neighbors across the street. Very aggressively priced featuring a kitchen with a gas stove, tankless gas hot water heater as well as gas heat for the pool and spa. Breakfast nook w/bay window that to the family room, the master suite has dual vanities, roman tub, separate shower. The second floor has accordion storm shutters for easy operation. Ready for immediate occupancy and a quick closing if desired.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Price Reduced on Riverfront Lots in Fort Pierce

05.23.09 by
SPECTACULAR WATERFRONT PROPERTY WITH 150+/- ft on North Fork of St. Lucie. River Place subdivision is quiet and reminiscent of Old Florida. 1.27 acre parcel. 3 adjoining waterfront lots also available. Invest in 1 or all of them for a 4.5 acre estate with 800 feet on the water
For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Price Reduced on Immaculate Waterfront Pool Home in North River Shores

05.23.09 by

North River Shores, Stuart – Announcing a price reduction on 2196 NW Fork Road, a 3,989 sq. ft., 3 bath, 3 bdrm 2 story “Solid Concrete Construction”. Now MLS® $850,000 USD – .

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Price Reduced on Waterfront Pool Home fixer upper in North River Shores

05.23.09 by
North River Shores, Stuart – Announcing a price reduction on 1765 NW Harbor Pl., a 1,588 sq. ft., 3 bath, 2 bdrm single story. Now MLS® $525,000 USD – Bargain Priced.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

An Offer They Can’t Refuse

05.22.09 by

In real estate investment, one person’s misfortune is another’s opportunity. Indeed, with so many foreclosed properties on the market, buyers are poised to take advantage of a literally once-in-a-lifetime chance at investment or ownership.

Every opportunity presents some challenges, however, and you’ll need more than luck to effectively buy a distressed property. These transactions are more complex than traditional sales, and you are strongly advised to seek the advice and representation of a real estate professional well versed in this new marketplace.

While a bank-owned home may look like a great deal, don’t assume that any offer will be accepted. Most banks list their foreclosed properties through real estate brokerages, and while they want to sell as quickly as possible, the listing agents have a fiduciary responsibility to get a good price for the owner.

An insultingly low offer can table the transaction permanently, so proceed with common sense and a trusted representative. Keep in mind when negotiating your offer that you should have an additional 10% of the price tag set aside for repairs. A foreclosed property, particularly an older one, will almost certainly require some overhauls.

In addition to your agent, consult with a local real estate attorney who can advise you about current foreclosure laws, which vary significantly from state to state. Know exactly who’s at the door when your opportunity knocks!

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Singles qualify for full $8,000 tax credit

05.16.09 by

It’s good news for people who are single, divorced or widowed: They get the same income tax credit when buying a home as married couples do.

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit for up to $8,000 when you purchase a home before December 1 of 2009. Whether the buyer is an individual or a married couple, they qualify for the same amount.

One exception: If the buyer is married and buying a home as an individual, that person only gets a $4,000 tax deduction.

Couples qualify for the tax credit if they have an income of $150,000 or less. A single buyer has to have an income of $75,000 or less. (If their income is higher, they get only a percentage of the $8,000 tax credit.)

Other provisions of the Act: First, you have to be a first-time buyer. If you haven’t owned a home in three years, you qualify as a first-time buyer.

Second, the amount of your credit depends on the price you pay for the home. The credit is 10 percent of the price up to $80,000. If you buy a place for $50,000, for example, you would get a tax credit of $5,000.

If you buy a house for more than $80,000, you will get the $8,000 tax credit rather than 10 percent of the purchase price.

Get your tax refund right away when you buy

You don’t have to wait until you file your 2009 income tax return to get a tax credit and refund. You can file an amended 2008 return and claim the credit now. You will receive a check for $8,000 (or 10 percent of the home’s purchase price up to $80,000) minus any amount still owed on previous years’ taxes.

The Act can also help you save money to buy a home. If you are certain that you will buy before December 1, 2009, you can reduce or eliminate withholding taxes from your paycheck. Save that amount toward your down payment. File a new W-4 at work.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Launch an Offensive

05.16.09 by

When buyers become scarce, sellers have to step up and make their offerings stand out to attract attention. Without spending a fortune, sellers can easily highlight several of their home’s features.

First, beat buyers to the punch with a pre-listing home inspection. By discovering and fixing problems before buyers ever see the home, you can impress them with a worry-free, move-in-now opportunity. Leave your repair receipts out during showings, so that buyers can see all the improvements you’ve made just for them!

Once the mechanical and structural features of your home have been addressed, move on to the aesthetic details. First impressions count, so make sure your home is inviting from the curb. Spiff up landscaping, paint, entries, and windows.

Inside, pay attention to bath and kitchen details, because those rooms are often the most important when buyers are making a decision. Aside from deep cleaning, consider updating bath and kitchen features with new and contemporary drawer pulls, faucets, and even sinks.

Finally, get a jump on your moving by organizing your closets and ditching or packing all you possibly can. A good guideline is to reduce your closets to half-full so that the buyers can easily picture the space for their own storage needs.

A few “preemptive strikes” should be all you need to attract buyers and offers, so ask your agent for tips today!

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

A Portfolio of Commodities

05.09.09 by

Have you ever thought of a home as a commodity? A commodity can be defined as a raw material or product that can be bought and sold. A home is not a raw material, but it is certainly built out of many, like a box full of wood, steel, cement, glass, and copper.

Over the long term, home prices usually rise along with the cost of the commodities it takes for construction. While high inventories of housing may be keeping prices lower right now, the cost of the raw materials that are intrinsically tied to a home’s value is rising, and rapidly.

With increasingly higher construction costs on the horizon, buying now is an ideal investment and a hedge against the rising cost of commodities. Every home is a store of value for all the materials, the land, and the labor involved in its construction. So the long-term value of a home is tightly connected to the cost of its production, making it a very different type of investment from stocks or bonds.

Investing in commodities has always been a great way to make lemonade from the economy’s lemons. And what better way to buy into the commodities market than by purchasing a home? Sooner or later, home prices will be pushed higher by the rising cost of raw materials, so make your move now!

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Like New Pool Home for Sale in Eastern Port Saint Lucie

05.07.09 by
• 1,914 sq. ft., 2 bath, 3 bdrm single story – MLS® $210,000 USD – Like new Pool Home
Port Saint Lucie Section 40, Port Saint Lucie 34952

Like new light and bright in close-in East location just off Green River Pkwy. This is an expanded Madeira model with a beautiful heated pool and spa. The patio area is oversized and is screen-enclosed. Enter a spacious foyer overlooking living room, formal dining room and through an arch into a large kitchen, breakfast and family room area. The home has beautiful, wide plantation shutters, custom blinds and large tile. There are numerous other upgrades including beautiful matching fixtures and fans and mature landscaping. In an excellent location on a tucked away street off Blackwell, with very little traffic yet close to shopping, beaches, restaurants. This home is worth seeing.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Newer 4 BR Pool Home on large lot, for Sale in Palm City, Florida

05.07.09 by
• 2,756 sq. ft., 3.5 bath, 4 bdrm 2 story “Solid concrete construction” – MLS® $425,000 USD – Newer 4 BR Home – no HOA

Palm City Gardens, Palm City – Gorgeous custom-built 2004 spectacular home! Bamboo floors, extra special crown moldings, designer gourmet kitchen with granite and stainless steel appliances. Open floor plan ideal for entertaining with great room, formal living room with fireplace, formal dining room. 4 generous bedrooms with additional bonus room. Saltwater pool and fenced backyard. Superbly landscaped on half an acre plus private lot. Paver driveway and walkways and 3 car garage. RV parking. Non-deed restrictive community. Close to A-rated schools, shopping, restaurants, I-95, and FL Tpk.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Price reduced in Lexington Lakes, Stuart, FL

05.05.09 by

Lexington Lakes, Stuart – Announcing a price reduction on 1590 SE Sheffield Ter. Unit 201, a 1,417 sq. ft., 2 bath, 3 bdrm 2’nd floor condo with a garage. Now MLS® $99,000 USD – Affordable New Construction.

For more info, visit our website GabeSanders.com or call us at (772) 888-2885.

Short Sales

05.02.09 by

In areas where home prices have significantly declined, some owners find themselves strapped with mortgages that total more than their home’s value. When options such as extending the term of the loan or negotiating a lower interest rate have been exhausted, then a short sale may provide the solution.

However, short sales are complicated, requiring approval from a number of parties, so you need the representation of a professional to make sure the transaction moves quickly. You can have more than half of the paperwork done before that first offer even comes in.

Most lenders require an application package to be completed by the sellers, including a financial worksheet, as well as a letter of hardship explaining why the owners cannot continue to pay the mortgage. The real estate agent can also help with other aspects of the required paperwork, which should be assembled before the property is listed.

While the bank may be willing in such cases to accept less than the mortgage balance, the buyer’s offer must still reflect a fair price under current market conditions, so be sure to consult with an agent in order to arrive at a reasonable price that will be accepted by all parties, including the lender.

Short sales may not be easy, but they do provide an “exit strategy” for homeowners most in need of a solution.

If you’re interested in pursuing a short sale as either a seller or a buyer, your odds are greatly improved with agents that have an intimate knowledge of the process and a successful track record with short sales. Give us a call at (772) 323-6996 or visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com. Our office is located at 2391 SE Ocean Blvd. in Stuart, Florida; please ask for Gabe Sanders.

A Quick Buyers Guide to Short Sales

05.01.09 by

What is a ‘Short Sale’

A short sale occurs when a seller wishes to sell a property that is now worth less than the mortgage and any other indebtedness that is owed on the property and is asking the lender to forgive all or part of the difference. If the seller is in a position and willing to pay this difference, it is not a short sale.

Who Should Buy a Short Sale:

It can be anyone who finds a property that they feel will suit their needs. It can be an investor, a first-time home buyer, or a second home buyer. The governing factor is that you must have patience and not need to take possession of the home in a short period of time. If you need to close in less than 3 months or possibly even longer, select a different type of sale.

What Should a Buyer Look for in a Short Sale:

Short sales come in different flavors with differing odds of a successful conclusion.
The best odds are with an owner in a pre-foreclosure situation where the current seller no longer has the assets to continue making payments on the home and it will be foreclosed upon in the future. Even better odds if there is no second mortgage on the home. The lender can’t ask for additional money from a seller without assets and they will prefer to take some loss now, rather than go through the expense of foreclosure at a later time. But, keep in mind; that the bank/lender will not sell it for a ridiculously low price if they feel that they can get more after a foreclosure. Can it be bought for less than the current market value? Yes, depending on the location from 10% to 25% under market value.

For the seller with a second mortgage, the negotiations will be a bit more involved, but given enough time, with a proper offer, the sale should lead to a successful conclusion.
After the above, come the investor properties. First, those investors that have gone bust or almost bust and have one mortgage are good short sale candidates, followed by those with second mortgages. However, if they have any assets, the short sale can be delayed and very often not completed due to the lender attaching large deficiency notices against the seller which they may not agree to thus causing the short sale to fail.

If you have an indication that the short sale belongs to an investor with considerable assets, be very leery as there is a good chance that the short sale will never happen.
The Short Sale Contract:
Your odds of a successful short sale are much better if you select an agent that knows the short sale process with a good track record. Unfortunately, you can’t always select the listing agent of a short sale and if they do not have much experience and/or short sale knowledge, it can be a very difficult transaction.

Once underway, the short sale is almost the same as any transaction. It is an agreement by a buyer to purchase a certain property from the seller. Both parties sign this agreement (the Purchase and Sale Contract) and now the sale is contingent on the specifics of the contract. In the case of the short sale, probably the important contingency is a lender or bank approval. Most short-sale contracts will specify that after the initial approval, all timelines will commence after lender approval. There is also a given time for the lender approval that may or may not require adjustment at some later time during the waiting process.

There are many ways to structure a short sale offer and this is where selecting an experienced agent will help your chances of a successful conclusion as well as protect your interests along with a reasonable escape or withdrawal clause.

The Short Sale Process:

Unfortunately, more often than not, this involves a lot of waiting. A good short-sale agent should try to get you updates or status reports every week or so. If they don’t, ask them, but be prepared for no news. When the lender orders an appraisal or BPO (Broker Price Opinion – a simplified appraisal normally performed by a real estate agent), it means that the end is getting closer. Probably (but, not always) within 30 days of an answer.

The Bank/Lender Approval:

This is not a sure thing, and the Bank/Lender could simply say no, and the buyer is back to square one, or they could come back with a counter offer that the buyer can either accept or reject or, they can simply approve the offer.

After making you wait all of this time, the bank will invariably demand a quick closing. Sometimes trying for as little as a week. Don’t be bullied at this point. You will need to complete inspections and satisfy yourself that the property is in an acceptable condition. If financing is involved, adequate time must be given to complete the financing contingencies.

The Closing:

The hard part is over and you will soon take ownership of your property at a great price. But one more thing to consider, often the lender will use their own attorney or title company to convey the title. They will only be interested in ensuring that they are free of any obligations on the property. They may or may not ensure all other liens or obligations on the property are satisfied. It may be very prudent to have your own attorney review the title and the title policy.

Congratulations if you have enough patience and diligence to complete this process!

If you’re considering purchasing a home, but feel ‘out of touch’ with what’s happening in real estate give us a call today at (772) 323-6996 or visit us on the web at www.GabeSanders.com or www.TreasureCoastFLHomes.com. Our office is located at 2391 SE Ocean Blvd. in Stuart, Florida; please ask for Gabe Sanders.