Christmas Here we Come – No, Not Already!

It seems almost impossible that Fall is already here.

But, I love the Fall, when the air is crisp and clean and the leaves begin to change color and drop from the trees. Being in Florida we feel less humidity. The cool air starts creeping in.

But, I can’t help but wonder, where did the time go? 

Summer was here and gone in a blink.

I was in the store yesterday and the shelves are bulging with Halloween and Christmas items – oh my goodness – not already. Christmas, not so fast!  I’m not ready yet!

I wake up on Monday morning and when I fall into bed, it’s Friday night already.  The weeks just fly. I suppose it has nothing to do with having two very active teenage daughters, rental properties and two businesses.

I have always been told that the older you get, the quicker that times goes.  I can’t imagine it moving any faster than it does.

So time, please slow down, I want to stop and remember to smell the roses.

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

A Nameless Faceless Lender From Somewhere Across the Country May Not Be Able to Get That House to Closing for You

This week a client was referred to me that wants to buy a house. 

During our initial phone conversation, one of the first things I always ask is whether they have a lender and are pre approved for a loan. 

He indicated that he did have a lender, that he found online. (Uh-oh).  And, that he was preapproved. The Brevard County Real Estate market is considered a distressed market.  It is so important for a buyer to have a local lender and a local appraiser that understands our market.  

My next question was whether or not he had received a Good Faith Estimate from the lender.  He had not. (Uh-oh #2). Every buyer should be provided with a Good Faith Estimate when being Preapproved for a loan.  This gives the buyer an estimate of his closing expenses and prepaid expenses.  It will also provide an estimate of his monthly mortgage payment amount and his anticipated interest rate.

The buyer gave me his lender’s long distance and toll free phone numbers (uh-oh #3) as I always talk to the lender at the beginning of a transaction, before we head out to look at any houses.

I called to get more info from his lender. I called 3 times in 2 days (uh-oh#4) with no response.  His voice message said, “I will return your call in the order in which it was received.”  (uh-oh #5).

I have to know what type of loan he will be financing the house with, so I know what type of home he can buy. I finally found that this buyer is purchasing with an FHA mortgage, with a 3 1/2% down payment. So, he won’t be able to purchase a home that requires extensive repairs. The roof has to be “newer” and so does the air conditioning system.  There typically can’t be broken windows. The house must have heat and a stove and it typically cannot be in some phase of remodeling.  If this buyer was getting a conventional loan with 20% down he would be able to look at completely different properties, as there would not be many restrictions on what he could buy.  In paying cash, a buyer could purchase any home he wants.

When I was talked to the lender, I received the Good Faith Estimate (as did the buyer).  My teeth nearly fell out of my mouth, when I looked at the figures. (uh-oh #6). The fees were some of the highest I had ever seen. The interest rate was too high, the estimate was full of unnecessary junk fees.  I couldn’t believe my eyes!

I recommended this buyer get additional estimates from LOCAL lenders to compare fees.  I know that he can do much better than what he was quoted. 

In this market, as Patricia Kennedy pointed out, in a recent post she wrote, not only is it important to come in with a strong offer to purchase a house, but, listing agents also look at the pre approval letter with the lender info to determine whether they will accept the offer.

If a buyer winds up in a multiple offer situation, which many buyers here in the under $125K price range do, the best offer is going to be choosen based on which one has the best chance of getting to closing. Here in our market the listing agent often times wants a local, reputable lender, that knows the market, that has a processing center right here in town. They know if they tell us, upfront, that they can do the deal, then they can do it. They want the smoothest transaction possible, that won’t get snagged or delayed. They don’t want any surprises.

In our market, a nameless faceless lender, with exorbinant fees and a long distance or toll free number, that doesn’t return phone calls, from somewhere across the country, is not going to help your offer along, to get you the house that you want to buy. 

If your offer is accepted, will they be able to get you to closing?

All lenders are NOT alike. And, all online lenders are NOT alike.

Get a couple of estimates and talk to a couple of lenders.

Be sure you do your homework BEFORE you head out the door to look at houses. 

FOOTNOTE: I later found out, after the buyer talked to a local lender, that he is self employed. The buyer indicated that he had not discussed his employment situation, nor the fact that he had recently opened a new business during his interview with the online lender. So, now, I am waiting to hear whether this buyer will be able to buy a house at all!

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

Can I Interest you in Some Florida Swamp Land?

 
I received the phone call yesterday. The buyer was calling from up North. She has been watching the real estate market and has decided that Brevard County would be a great place to invest in some real estate. She’s right, it is a great time to buy in Florida.

I asked her what she was looking for. She indicated that she would like a 3 or 4 bedroom, 2 to 3 bath, 2 car garage, situated on at least half an acre.  She would like 1800+ feet of living and minor repairs needed, preferably none.  I told her that I would be more than happy to see what I could find.

“What’s your price range?” I asked.

“$25,000. I don’t want to pay anymore than $25,000 for a property.”

“25,000?,” I asked. I was certain I misunderstood.

“I will not pay anymore than $25,000 for a property,” she responded.

Hmmmmmmm…..

When you find one of those, let me know, because I’ll buy one too!

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

 

Forbes Top 10 List of Recovering Areas

Forbes has determined that these metro areas boast gains in real estate sales over 2008:

1. Miami, Ft. Lauderdale, Florida
2. Lincoln, Nebraska
3. Colorado Springs, Colorado
4. Salem, Oregon
5. San Luis Obispo, California
6. Bremerton, Washington
7. Denver, Colorado
8. Redding, California
9. Santa Barbara, California.
10. San Jose, California

It’s not surprising that 4 of these areas are located in California. In placing the Miami/Ft. Lauderdale area at the top of the list, this certainly covers a very large portion of South Florida.

This article is authored by

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

Brevard County Tax Collectors Office Will No Longer Accept VISA Payments

I just finished reading an article that indicated that the Brevard County Tax Collectors office will no longer be accepting VISA cards to pay your tax bills.  The decision came on May 4.   VISA charges a $2.00 of 2.95% convenience fee (whichever is higher) to it’s third party vendors.

The Clerk of Courts office will continue accepting Mastercard, American Express and Discover Credit cards and they will also accept Mastercard debit cards.

Marion, Osceola and Walton county tax collector offices will also no longer be accepting VISA payments.

The burden of these added “swipe” fees to small business is being passed on to the consumer in the way of higher costs of goods.  Small business owners are getting fed up with the added fees and calling for credit card reform.

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

This Was One of the Most Mesmerizing Experiences I Have Ever Had

Yesterday, my family and I drove up to Cape Canaveral Florida to visit a client that I had helped in purchasing a beautiful riverfront condo a month before.  We went straight down to the boat docks by the gazebo hoping to get a glimpse of the manatees playing.  We saw at least 6 of them.  Knowing that they love fresh water we turned the hose on to attract them, hoping to get some pictures.   These sea cows, known as gentle giants live in shallow waters in our lagoons. 

We we absolutely mezmerized at what we saw.

In the 35 years I have lived in Brevard County I have never seen anything like this before.

All of these pictures were taken in the backyard of my client’s new riverfront condo here in Brevard County Florida.

These guys loved the fresh water from the hose. They couldn’t get enough of it.

They were circling and snorting and doing somersaults right in front of us. 

They were so close we could reach out and touch them.

They just loved laying on their backs and taking in the fresh water.

My friend, Tony, indicated that the manatees are very active early in the morning.  They love playing and and having fun in the water. Later in the day they usually are resting.

He has indicated that he can stand on his balcony and watch the porpoises jump, also.

Now this is what I call heaven. 

Such an incredible sight to see. 

My teenage daughters absolutely loved watching these playful, fun loving creatures.

These guys aren’t afraid of people.

My client, who has become a great friend of mine, has told us that anytime we want to visit, we are more than welcome to come to watch the manatees.

He absolutely loves his new home, as he says that everyday he feels like he’s on vacation.

This article is authored by

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

Enjoying the Summer At Brevard County Beaches

This Summer has  proven to be a beautiful one. 

On this particular day, Melbourne’s temperatures reached 96 degrees, with 50% humidity,  it was a sweltering 109 degrees.

We had the perfect solution, as did a few other people.  We headed for Spessard Holland in South Melbourne beach to cool off.

It was quite warm, but the ocean water was cool and refreshing.

 

         We spent a good bit of time out in the water, as my daughters are learning to surf.                  

 

We also did some fishing, but unfortunately caught nothing.

It was one of those days where you had to be really careful not to get fried from the sun, as there was a bit of a haze in the sky.

This is when people inadvertently get too much sun, without realizing it.

When we get these hot, humid temperatures it so important to get plently of fluids, to remain hydrated.

 

This article is authored by

Sandy Shores REALTOR®,  Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

May 2009 Market Statistics Reports for Brevard Real Estate

According to the Melbourne Association of REALTORS here in Brevard County Florida,  Real Estate Statistics for May 2009 are as follows:

For single family residential units:

There were 531 new listings.

This is a decrease of 26.96% from May 2008 of 727 new listings.

Year to date in 2009 there have been 2952 new listings.

Year to date in 2008 there were 4118 new listings.

 

There were 298 sold listings.

This is a 1.32% decrease from May 2008 of 302 sold listings.

Year to date in 2009 there are 1409 listings sold.

Year to date in 2008 there were 1282 listings sold.

 

The average sale price in May 2009 was $169,939.

This is a 10.44% decrease from May 2008 of $189,750.

 

Average days on the market for May 2009 were 123 days.

This is a 9.82% increase from May 2008 of 112 days.

 

For all properties, including single family residential, condo and townhouse:

There were 781 new listings.

There were 373 sold listings.

Average sales price was $162,940.

Average days on the market = 137

 

Types of financing used:

103 conventional financing

148 cash

 88 FHA

 26 VA

  7 Owner financing

This article is authored by

Sandy Shores REALTOR®  , Melbourne FL Real Estate

Brevard County Real Estate & Investing

Yes, You Can Buy A House today…Wait, No You Can’t!

I had a situation with a buyer in the past couple of weeks that had spoken to an internet lender they were not familiar with, to get preapproved to buy a home. This is not to say that all internet lenders are bad, however you must know who you are doing business with. 

The buyer received a good faith estimate with an interest rate that was 1/2% higher than the going rate. And, the estimate had a $2895 mortgage broker fee attached to the loan!  Ouch! There aren’t many buyers in this market than can afford a fee like that tacked onto their loan.

I always recommend buyers talk to more than one lender to be sure they are being quoted the best rate and terms on their mortgage.  I also recommend they talk to a local lender, as they work in and understand the Brevard County Real Estate Market.

So, I recommended to this buyer that she contact another couple of lenders, here locally that she could speak to about getting a mortgage.  She did. The first lender she talked to is reputable and has been working for the same company for many years.  He advised this buyer that her ratios were too high and he wouldn’t be able to do the FHA loan for her at this time.  He told her what she needed to do to fix her problem areas.

Both lenders were going to do FHA financing with 3.5% down!

She was completely confused as to why one lender told her it would be no problem to get an FHA loan and buy a house and the other lender told her that she needed to get some items on her credit in order, before she could proceed ahead.  Well, I explained to her that it would be the difference between whether she would actually be getting to the closing and actuallly buying the house. 

One lender is going to tell you upfront there’s no problems.  He will collect upfront fees, the buyer will pay for inspections, credit report, appraisal, etc. only to find out that halfway through the transaction her ratios are not in line with FHA guidelines.  So, then she will be denied, after she has spent a good bit of money.

The other lender played it straight from the hip.  He told her right upfront, that there are things that must be addressed before she can purchase a home. He told her today she cannot qualify for an FHA loan.  This lender will save all parties involved from signing a contract to purchase with a seller, paying exorbinant fees, and wasting everyone’s time.

Basically, the third lender she spoke with gave her the same info that the second one did. She would not qualify today to purchase a home today, until she cleared up a couple of issues.

Give me the lender that’s going to tell me today that it’s just not going to work out for the buyer right now.

And, stay away from the shady internet scammers that are still making their monies off of upfront application fees.

She has decided to address her issues immediately, and hopefully will be back in the market, after talking to a local lender, within the next 6 months.

 

This article is authored by

Sandy Shores Realtor, Melbourne FL Real Estate

Brevard County Real Estate & Investing

Palm Bay Florida Real Estate News

 

50% of Contracts Fall Anyway…What?

I’ve often thought of how quickly our real estate market has been changing. It seems that we spend our time  trying to remain educated to the ever changing market. 

I recently received an offer on one of my listings from another agent. There was no preapproval letter attached to the offer. I thought perhaps I had missed it amongst the paperwork. Not seeing it, I put a call into the buyer’s agent. I thanked her for the offer to purchase. And, I asked if she could send me a preapproval letter.

She indicated that her buyer was not preapproved. She said the buyer had not talked to a lender yet.

Okay, I thought.  Well, I know things have been changing quickly, but was this something new? Presenting an offer with financing from a buyer, without them talking to a lender first?

“They haven’t spoken to a lender yet?  They’re not preapproved for a mortgage?” I asked.

“No,” she responded. “They want to see if the seller will take their price first, before they talk to a lender.”

I was stumped at this point.

She continued, “well, you know, 50% of contracts fall anyway.”

Our current market is crazy, but tell me that’s it’s not getting this out of control!

This article is authored by

Sandy Shores Realtor, Melbourne FL Real Estate

Brevard County Real Estate & Investing

Palm Bay Florida Real Estate News