Just about every house hunter knows that short sales and foreclosures are a big part of the real estate market in Palm Beach and Broward counties.
But Judy Friedmar, a stat queen for Xima Real Data in Pembroke Pines, crunched the numbers and found that nine out of 10 for-sale listings in our part of the world are distressed properties.
Ninety percent!
"Very telling," Friedmar said.
From March 1, 2008 to March 1, 2009, she found 22,072 homes and condominiums listed for sale in Broward. Of those, 19,869 had owners with less than 10 percent equity, a strong indication that they owed more than the properties were worth. As a result, the owners likely were in foreclosure or seeking a short sale, Friedmar said.
In Palm Beach County, there were 16,692 homes and condos for sale during the same period, with 15,247 having owners with less than 10 percent equity.
"There's a lot of opportunity out there for buyers to jump into the market," Friedmar said.
As a real estate Associate, your success depends on the quality and durability of the Relationships you build with your clients, and the one and only way to build solid, enduring relationships is to deliver excellent, unrivaled service. To be an outstanding Associate you need to lavish your clients with service that exceeds their expectations - from the get-go and throughout a long business relationship. The challenge is that not all clients expect or want the same kind of service. What constitutes excellent service to one client might seem inadequate or even like overkill to another. It seems hard to imagine, but an Associate could sell a client's home in less than a week, at full price, and still have a dissatisfied customer. This could be due to some action or oversight during the negotiation, inspection, or closing process that simply didn't match with the client's service expectations.The single greatest reason why someone will do business with you is because they either know you personally, know of you in a very positive light, or learn about you from a reliable and trusting source.
There is simply no way to be thriving in real estate a year or more from now without going back to basics. Stop resisting that terminology by bringing up technology and all the other bells and whistles about the way we do business. The most basic of all basics is prospecting and connecting with anyone and everyone. It has everything to do with vigilance, stickability, strong, unwavering desire to be successful, and the self-discipline to not give into fear. Instead of fearing, get the skills and knowledge you need to do what you don't do and be willing to move forward even if fear is present. There is a real need for a willingness to work in ambiguity.
We know that we have challenges in the mortgage arena. We have oversupplies in many markets; we have sellers who are upside down and unable to pay their debts; buyers who are afraid to move forward; agents who are performing poorly and hurting the rest of their colleagues and uncertainty in many ways. We have as much to be concerned about as did those of us who listed and sold real estate in 1980...and we made money and we thrived to surge another day. However, we had to make adjustments, redouble our efforts, not allow complaining and whining to take over and fight everyday to be the very best that we could.
When all is said and done, there is a bit of truth in everything. There are negatives: qualifying for a loan is more difficult (thank goodness) than in the 4 years past; there are markets that have suffered 30+% declines in sales, inventories are way up; and the sub-prime tsunami is still rocking the industry and will continue to do so for many months to come.
On the positive side there is one irrefutable fact: we are in a bullet-proof business. There will always be people who have to sell and buy. When interest rates hit 19% back in ‘80-81, sales occurred. Were there fewer buyers who could qualify? Of course there were. Did sellers have to confront the reality of the market to secure a sale? Indeed! However, when you put a motivated seller and buyer together... ca-ching!
There is nothing like real urgency and motivation to spur people into accepting the realities of the environment in which business is conducted. Real estate is, after all, just that... a business that depends upon the consumer's willingness to absorb the product.
Many amateur real estate investors are lured into real estate investing by the promise of quick, easy money with no money down, but it's NOT a get rich quick field. In fact it takes much research and countless hours of experience to hit the goals many investors want to hit. The good news is that the majority of "amateur investors" who sign up for the thousands of real estate investment seminars give up the idea within three months of taking the training. So don't be scared of a saturated market, your competition is much less than you might have thought.
Taxes are an integral part of successful real estate investing, and they often make the difference between positive cash flow and negative cash flow. Be sure to familiarize yourself with all the different tax situations, and see how they can be manipulated to your advantage. Until you have some experience under your belt it may be a good idea to consult a tax advisor to find out hat advantages are best for you.
The swings of the economy influence in the real estate market. Factors like access on the credit, monetary stability, growth of the economy, generate conditions propitious to conduct real estate operations. A buying market characterized by more buyers than sellers, distinguishes by prices in rise and sales in short term. On the contrary, a selling market, in where there are more sellers than buyers, is characterized by prices in loss and longer terms to conduct the operations. Also it is necessary to consider seasonal factors, that influence in certain type of operations, as in the case of the houses of "weekend", which they find the greater amount of interested in the stations of spring and summer. To buy Real Estate, means an investment of great importance, is for that reason that we not only suggested to think to him about the comforts that the property offers, but to have in special consideration the valuation of the property in the course of the time.
Not only do you have to understand what type of mortgage you should choose, you have to understand the costs associated with your mortgage. All of these costs will be paid upon closing your mortgage.
Purchase Points
Purchase points, also known as a "buy-down" or "discount points," are an up-front fee paid to the lender at closing to buy-down or lower your interest rate over the life of the loan. Each point is equal to one percent of your total loan amount. If you have a $100,000 loan, one point would equal $1,000. The more points you buy, the lower your interest rate, but the more money you'll need at closing.
How do you decide whether you should buy points and if so, how many? Well, the decision should be based on how long you plan on living in your home and what you can afford to pay each month toward your mortgage. If you plan on living in your home for more than five years, it's probably a good idea to purchase points. The longer you live in your home, the more you can save on interest over the life of the loan.
Interest Rate
When you get a mortgage, you are charged an interest rate.this is the rate which the lender charges you for using their money to buy a home. It determines how much your monthly payments will be. Generally speaking, the higher the interest rate, the higher your monthly payment.
Mortgage interest rates change constantly.daily, even hourly. If you speak to a lender and are quoted a specific interest rate, that's not to say you'll necessarily get that rate when you close on your loan. Not unless you formally lock-in that rate with the lender.locking in an interest rate will guarantee you get your loan with a particular interest rate. Lenders will allow you to lock in for 15, 45 or 60 days. But the longer you lock in, the more expensive it will be, since it's more of a risk to lenders.
Fees
There are always fees associated with getting a mortgage, these fees cover the cost of processing and underwriting the loan. These fees can include charges for ensuring the title to the home is free and clear; paying for a land survey; or paying for a home appraisal which gives you the estimated value of the property (lenders require an appraisal to close on your mortgage).
Deciding which mortgage to get may depend on what each lender does because different lenders may charge different amounts. Some may charge lesser closing fees to lure you in, but may charge you a higher interest rate, which means you may pay more in the long run. But everyone has different needs.you may or may not be able to afford to pay more at closing and are willing to pay more over the long term.
Before it comes time to close, do your homework, make sure there are no hidden fees, and ask your lender lots of questions so that you understand all the costs involved with your mortgage.
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AMERIDREAM The AmeriDream program offers gift funds up to 10% of the home's purchase price which do not have to be paid back. Buyers must agree however, to return any funds that are not used toward down payments or closing costs and to return the funds if the sale of the home does not close on the scheduled closing date.
NEHEMIAH The Nehemiah program is a Private California Non-Profit Organization that offers down payment assistance programs to qualified first time and repeat homebuyers. This programs offers free gift funds to be used toward down payments and closing costs for homes purchased through eligible FHA loan programs.
HOUSING ACTION RESOURCE TRUST The Housing Action Resource Trust (HART) Program is a 501c(3) non-profit Housing and Community Development corporation that helps potential homebuyers purchase homes by offering down payment assistance programs to those with low and moderate incomes.
CONSUMER DEBT SOLUTIONS, INC. Depending on the seller's contribution toward a home purchase, Consumer Debt Solutions, Inc. (CDS) can gift up to $10,000 of the final sales price of a home. Since all the money awarded is in the form of gift funds, it does not have to be paid back.
PARTNERS IN CHARITY The Partners in Charity (PIC) is a non-profit corporation that offers financial assistance through programs for qualified low and moderate income homebuyers. Down payment and closing cost assistance is provided as gift funds from 2% to 10% of the home price.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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