You know it's almost summer when it's time for the Tuesday evening Pensacola Beach ritual Bands on the Beach!

This Tuesday, May 5, marks the start of the 2009 Bands on the Beach series with Wildwood, a group regionally knows for their rock, blues, Beatles tunes and reggae rhythm. The free concerts are hosted by the Santa Rosa Island Authority at the Gulfside Pavilion on Pensacola Beach and run through September 22.

Put on your flip flops and bring a chair. The concerts are family friendly and usually draw a crowd of 1,000 to 2,000. Picnic baskets and coolers are the order of the day!

For a schedule of this season's Bands on the Beach go to www.PensacolaForYou.com and click on the Events button just below the tiny blue crab. See you at the beach!

Lots of changes are coming our way in terms of both lending and appraising. Those of us actively working in real estate in the Greater Pensacola Bay area are realizing that the saying "each deal is a new deal" has never been more true. With much tighter underwriting scrutiny on loans and new appraisal guidelines taking effect May 1, it's time to make sure we understand and stay on top of all the changes that are having an impact on our real estate market and our clients. And there are many!

Toward that end Shawn McCorkle with First American Title, DeeDee Rhodes with Gulf Coast Community Bank and Pensacola area Appraiser Dan Helms put on an excellent workshop for Realtors at the Pensacola Association of Realtors downtown Pensacola location this morning. I'd like to share some of the more salient points made by the trio.

Everyone discussed "Time" as a factor that is now more important than ever when writing a contract to purchase real estate.

As DeeDee explained, "We have been used to closing in 30 days, but everything must be verified and verified once again now and that takes time." She gave the example of having a buyer's pay stub not match their annual salary. A number of things; overtime, a bonus, variable work hours, etc., could cause this mismatch, but it must be researched and verified before the transaction can move to closing. DeeDee has worked in both underwriting and as a loan officer and says that we are, "Back to 1980," in terms of loan underwriting criteria and scrutiny.  

Dan spoke about the new more stringent appraisal guidelines which add hours of work to the appraisal process. "I'll estimate that the new marketing addendum alone adds an additional two hours of work," Dan said. When you consider that with the downturn in the real estate market there are far fewer appraisers working in the Pensacola market than in the past, and now that their time to complete an appraisal has increased, you can see why the days of a two day appraisal turnaround are over.   

Some pointsand changes related to lending and underwriting:

1. Credit Scores - Most loans will require a minimum of 620 and talk is of going to a 660 minimum.
2. Private Mortgage Insurance is underwriting and with all the recent payouts they are stringent. Credit score is the determining factor with 10% down.
3. New Good Faith Estimate forms will be required beginning Jan. 1, 2010. These will require the buyer's signature and the loan will not be able to close for 10 days (3 days if sign in person).
4. New HUD1 forms that reconcile the Good Faith Estimate with the actual closing costs will be required.
5. Stated Income Loans will be a thing of the past. RESPA will be requiring verification of income.
6. Employment will be verified within 48 hours of closing.

Some points and changes related to appraisals:

1. The Home Valuation Code of Conduct going into effect for appraisers May 1, 2009, requires sales used as comparables to be within one mile of the subject property and to have been sold within the past 90 days. Exceptions require a narrative explanation.
2. Comparables require bracketing. One property that is similar, one that is above (newer, larger, etc.) and one that is below (older, smaller, etc.).
3. Foreclosure will carry the same weight as regular sales.
4. The List to Sale Price average in the area must be considered and included in the valuation.

My big takeaways from today's workshop:

• Patience - for both Realtors and our Clients - we're in a brave new real estate world!
• Knowledge - Things are changing almost daily. It's important that we stay on top of the changes; talk regularly with our local lenders, appraisers and real estate agents.
• Talk with clients - both buyers and sellers - about realistic expectations.

In my own Pensacola area real estate practice I am noticing an abundance of unrealistic expectations on the part of both buyers and sellers today. Too many sellers haven't internalized the reality that the property will only sell for what it will appraise for. We ARE in a declining market. And too many buyers have been pulled into the negative media hype and believe that sellers are giving away properties. As example, the recent caller from Ohio who told me, "I am looking for one of those $350,000 homes that you are selling for $100,000."

Whether it's an individual seller or a lender as seller (foreclosure), I've yet to see any true giveaways. All bargains come at a price. A thorough understanding of the market forces at work that a real estate professional can provide help buyer and seller arrive at a realistic price that meets the lenders' criteria. And our title, appraisal, and lender partners can help us stay abreast of these forces.

Trust - Such a small word, but one packed with tremendous meaning.

I just received an e-mail from Stephen Covey's (author - The Speed of Trust) organization which indicated that according to the Edelman Annual Trust Barometer, trust in business in the United States dropped from 58% to 38% since 2008. Given the current state of the economy and the many individual real estate, job loss and other assorted hardship stories I hear daily, I don't find this very surprising.

As a Realtor I have always known that trust is a bedrock value that we must operate from. A home purchase is generally an individual's largest lifetime purchase so the entire experience is often fraught with emotion and trepidation. (My team always strives to make each real estate purchase a joyous event and a win/win for all - a transfer of pride of ownership from one homeowner to another - but that's another story for another day!) 

But do all real estate practitioners operate from a core value of trust? I have just completed my "Ethics" continuing education training; a requirement Realtors (members of the National Association of Realtors) must complete every four years. Interestingly enough, our instructor pointed out that only 55 to 60 percent of all real estate practitioners in the state of Florida are members of the National Association of Realtors, so the remaining 40 to 45 percent have no Code of Ethics that they adhere to.

And why is a Code of Ethics important? Well, as I'm sure Stephen Covey would be quick to point out, without a Code of Ethics that is agreed upon we might just find ourselves back in the Wild, Wild, West - particularly in tough economic times when real estate practitioners are trying hard to hold on to their livelihood just like everyone else. Commission sales have the potential to make normally upstanding individuals dance around the issue of black and white vs. gray in a very provocative way!

As I look at my dealings with real estate customers, associates and allied professionals I am more and more aware of the fact that trust is confidence. I recently saw a quote by Dr. Laura Schlessinger that sums it up, "If you want to be an irresistible positive force, combine personal responsibility with compassion and respect for others." This is something that we strive to do in our practice of real estate and I find that it is contagious!

What an absolutely AMAZING place to live! The Florida Department of Transportation opened J. Earl Bowden Way in the Gulf Islands National Seashore to traffic on Friday and - WOW - did I forget just how much I missed this gorgeous stretch of Gulf front road!

The road, which was damaged during Hurricane Ivan in 2004 and again by Huricane Dennis in 2005, once again links Pensacola Beach and Navarre Beach and the drive is nothing short of spectacular. I was out on the road on Saturday taking photos of my husband and a group of his friends who were out for a training bike ride and I just have to share!

The weather was in the mid 70s on Saturday - a perfect day for a long bike ride and the group rode 70 miles. Their loop took them from Gulf Breeze, out Garcon Point to I-10, back to Gulf Breeze and over to Navarre Beach - down the National Seashore to Pensacola Beach and finally back to Gulf Breeze.

So - with the weather forecast to remain sunny and in the 70s through the weekend, who could resist a bike ride Sunday afternoon followed by an 8k run to benefit the Midway (Gulf Breeze) Fire Department and Muscular Dystrophy? Jay and some of his friends participated in the run and I served as back up crew.

Anyone who loves the outdoors will feel at home in Northwest Florida. The temperate climate and abundant access to waterways, parks, trails and outdoor events is truly unparalleled.

Forgot to mention that we actually started the weekend early with a free (almost free - admission is a food donation to Manna Food Bank) concert in downtown Pensacola Thursday evening; "Radio Live", sponsored by the Universtiy of West Florida's WUWF radio station.

The start of the Gulf Breeze Midway Fire Department's 8K Run to benefit the Fire Department and Muscular Distrophy. The well attended run was held Sunday afternoon and the course wound it's way from the Fire Department on Gulf Breeze Parkway through several neighborhoods.

Would you like more information on living in a place that will make you feel every day is a vacation?

Please visit my website, www.PensacolaForYou.com for home searches and information on the Greater Pensacola Bay Area.

Sales and Currently Active Listings of Single Family Homes, Towwnhomes and Condominiums in Escambia and Santa Rosa Counties for 2008. Source: Pensacola Association of Realtors.

What's going on with the Escambia and Santa Rosa economy and local housing market? Here's the latest from a presentation I attended at the Pensacola Association of Realtors yesterday by experts Dr. Rick Harper, Hass Center for Business Research and Economic Development, Al Muller, Metro Market Trends and local appraiser John Priller:

John Priller- Pensacola area appraisers have just received new, tighter HUD guidelines pertaining to the required number of comparable listings and sales in the last 3, 6, and 9 month periods as well as absorption times. Translation: appraisers have more work to do and we should be looking for fees for appraisals to go up.

John notes that we have watched housing prices in the Greater Pensacola Bay Area fall at a rate of about 1% per month for more than a year and these rates must be taken into account when performing appraisals.

He predicts that we are closer to the bottom for our high end residential properties, but our lower priced properties will continue to fall. He believes we will see our housing prices fall through 2009. Once we reach the bottom of the market we will have a period of "stagnation" before prices begin to rise again.

Dr. Rick Harper- Dr. Harper echos John Priller's predictions. He said that while he had predicted a bottom of the Pensacola Bay Area housing market in late 2009, he is now changing that prediction to early 2010 based on the latest economic news.

While we can consider 6 months of housing inventory (The time it would take to sell all the active listings in the market if no new listings came on.) healthy, we now have 17 months of housing inventory.

Dr Harper pointed to population growth as the driver for the housing industry and said that immigration reform is key for states like Florida who have historically relied on in migration for new growth. While our Pensacola area housing slowdown began prior to the poor nationwide economic news, the slowing economy has certainly hampered any recovery.

Dr. Harper predicts that our commercial sector will continue to soften as "retail follows rooftops."'

There are a few bright spots in the local economy. Our small corner of Florida has always had a more affordable housing market than the rest of the state and our "run up" while significant, was not as extreme as most of the rest of the state. We are also somewhat insulated economically with our military installations. We have seen oil prices and inflation decrease and our trade deficit shrink. Fort Walton Beach will see an estimated 6,000 new jobs created in defense with the BRAC (Base Realignment And Closure) recommendations. Harper predicts that historically low interest rates - as low as 4 to 4.5% - will certainly stimulate housing sales.

Al Muller - Al said that while our prices increased rapidly from 2002 to 2006, the downward trend has been slower. He anticipates this to continue as there is a "Great Hidden Inventory" which is made up of the homes that were on the market but were pulled off when they failed to sell and homes that would have gone on the market if prices had appreciated.

Like John Priller, he anticipates a slow return to appreciation. Al's research is in line with Dr. Harpers as well and he sees declining housing prices for Escambia and Santa Rosa Counties over the next year.

Bottom Line - All the experts agreed that with prices and interest rates low and an ample supply of housing inventory there is a fabulous window of opportunity for purchasing a home over the next year.

For residential listings fitting your customized parameters sent directly to your e-mail inbox on a daily or weekly basis log in to http://robin.pensacolahomesnow.com

As we enter the New Year I have been thinking a lot about financial planning and happiness. Funny how intertwined the two tend to be!

While many of us are rethinking our spending habits amidst the poor economic news and wondering if we really NEED all those things we tend to buy, the fact of the matter is that even if we simplify and downsize there are some financial realities that we just can't escape.

And for women these financial realities can be much different than those faced by our male counterparts. I listened to a great talk by Carol Carlan, a consultant with "Our Collective Mind" at the Pensacola area Women's Council of Realtors yesterday. Some points she made deserve to be shared:

• U.S. Life Expectancy - for Women 83, Men 76
• 3 out of 4 Married Women will be Widowed
• 3 Common Mistakes Women Make 1) Don't Invest in a 401k 2) Don't Diversify and Take Risks in Investing 3) Underestimate Health Care Costs
• Carol's talk reminded me of a recent study which was conducted by the Harvard Generations Policy Program. The findings indicated that while the approximately 40 million baby boomer women are  the largest generation to reach their 40s, their financial security may not be assured unless they make wise housing choices.  

The study showed that boomer women (born from 1946 to 1964) spend more, acquire more debt, and are less likely to have traditional pensions, spousal benefits or retiree health coverage than other cohort groups. For these women - interestingly enough, the majority of those I saw sitting around me at the Pensacola Women's Council of Realtors group - housing is a key to their future security and happiness.

The Harvard study says unequivocally that women of the baby boom generation who own their own homes (either alone or with a spouse) will be at an economic advantage.

Over the past two years I have watched our hot housing market cool, our economy slow down and potential buyers wring their hands as they worried over finding the bottom of the local housing market. Both Carol Carlan's talk and my review of the Harvard study reminded me just how important it is to review with potential buyers the decision tree for renting vs. buying. Long term financial goals and security always have to be part of the equation and in most cases, buying wins out.

As we enter a new year and take stock of where we are and where we are going, whether we are female boomers or not, housing should be a big part of our equation. With the current attractive housing prices in the Pensacola area, low interest rates and the generous seller concessions we are seeing, NOW is a great time to explore whether buying is right for you. If you agree, don't wait . . . call your professional Realtor!

The chart above provides an overview of the Escambia and Santa Rosa County single family home, condominium and townhome sales from 2006 to 2008. You will note that sale prices are down while selling days on the market have increased significantly. Firgures were taken from the Pensacola Association of Realtors Multiple Listing Service. 

 Robin Sherman, Robin@PensacolaForYou.com

The National Association of Realtors (NAR) is working hard to get the word out - Mortgage Money is Available!

In a press release issued today NAR urged the public to disregard much of the "misinformation" floating around in the media and on blogs related to the tight home mortgage market. NAR shares the following facts:

1) An individual may be required to put down 20% based on that person's financial situation, but that is not an across-the-board requirement for all borrowers.

2) A borrower who puts down less than 20% is required to obtain mortgage insurance.

3) Even in a declining market a borrower is required to make at least a 5 or 10 percent down payment.

4) FHA requires a 3.5% down payment by borrowers, so long as they meet a 31% housing cost-to-income ratio. In other words, anyone who stays within their budget and who can afford a 3.5% down payment (even with family help) can become a homeowner.

It is quick and simple to determine your required down payment. A call to a reputable lender and a few minutes of your time will provide you with the information you need. I know that many people are afraid of having their credit pulled, having heard that this will impact their credit score, but it isn't necessary to have your credit pulled to get an idea of your downpayment requirements and an estimate of loan costs and monthly payment schedules. Again, any reputable lender will be able to help provide this information.

We will be happy to provide you with lender information for the Northwest Florida real estate market. Our primary market area is from Fort Walton Beach through Pensacola, Escambia, Santa Rosa and Okaloosa counties.

Unemployment, slow retail sales, falling home prices, and here we all go . . . circling the drain once again. Amid all this negative news isn't there a bright spot for Pensacola? Well, of course there is - or are- in reality (and realty) there are MANY positive things going on in Escambia and Santa Rosa counties:

#1 - Falling mortgage interest rates - We actually saw rates hit 4.5% in Pensacola in mid December and many predict we will see rates this low once again. Those of us working in real estate and related fields saw a rash of activity in December as buyers scrambled to take advantage of the low rates and attractive home prices.

#2 - South Santa Rosa County - Surveying is underway on the 100-plus acres owned by Pensacola Junior College in Gulf Breeze (Midway) for construction of a new campus within the next two years.

#3 - Escambia County - Several large capital projects are underway - or in the final planning stages. Today's Pensacola News Journal ran a story "Building Up 2009"detailing the following projects; the $320 million wastewater treatment plant, the $35 million airport expansion and completion of the adjacent $16 million parking garage, Navy Federal Credit Union's $54 million building 3 on their Beulah campus and the much anticipated $70 million Community Maritime Park.

#4 - Regionally - There is still the strong likelihood that the $40 billion KC-45 tanker project will find a home in nearby Mobile, AL, and the Chamber's economic development arm continues to promote the I-10 Wired initiative that I wrote about in an earlier post.

So let's pay heed to the difficult issues our economy faces, but let's also not lose sight of the great things on our horizon and how they will impact our local economy today and well into the future.

There was a great article in last Sunday's Pensacola News Journal titled "Meltdown to Rebound - When will area economy turn around?" The News Journal brought together a panel of five Pensacola area economic experts for their read on what our future will bring.

One of the experts interviewed for the Pensacola News Journal story, Al Muller from Metro Market Trends was featured in a blog I wrote back in July on the same subject - Real Estate Trends, What's the Real Real Estate Story 

Interestingly, several members of the panel - including Al - pointed out that the "rapidity of the economy's meltdown" was the most surprising thing about it. Indeed, when I heard Al's presentation back in July he was encouraged by some bright spots in the housing market which, although small, were pointing to a slowdown in the rate of decline. But that was before Wall Street's credit crash hit the news.

Muller had predicted that we might see the Greater Pensacola Bay area (Pensacola, Milton, Gulf Breeze, Pace, Escambia and Santa Rosa Counties) housing market start to get back on track to our traditional 4.5 to 5% annual appreciation rate by late '09 or early 2010. According to his comments in the Pensacola News Journal article he feels it will now take a major catalyst like federal tax incentives coupled with attractive interest rates to kickstart the local housing market. "Bottom line," Muller said, "as long as we're in a recession the real estate market won't get better."

So, what does this mean for the average person looking to buy or sell real estate in the Greater Pensacola Bay Area?

Number 1 - For Buyers - Today is a great day to buy! Certainly credit is tight and a good credit score is important. However, the current interest rates are incredibly attractive and there are some great loan products and incentives - particularly for first time home buyers - in the market now. Let's hope congress is listening to people like Al Muller and we see some significant tax incentives for home buyers in the new year. Who wouldn't be excited about a 20% tax credit for buying a home? Write your representatives!

Number 1 - For Sellers - Listen to a professional real estate agent and PRICE YOUR HOUSE FOR THE MARKET. Many of today's potential sellers took advantage of the appreciating home prices from 2003 to 2006 and took out equity loans on their homes. As prices have declined this has made it difficult to sell as they are essentially "upside down" in their home.

The reality is that homes must appraise for buyers to obtain the loans to purchase them. As a seller, analyze what you really need out of your home sale to make it work for you. In 2008 I had a seller who had to transfer with his job and was in this "upside down" situation. Once we looked at the cost savings he had for housing in his new home town things didn't look quite so bleak. We priced his home below the neighborhood comparables and sold it quickly. Yes, he came to closing with cash - never fun as a seller - but he purchased on the other end of his move for much less than he had anticipated and got a very favorable interest rate which allowed him to actually buy more house than he had expected.

Stay tuned to my blog as I will continue to provide updates on local housing information. As always, I will be happy to answer any real estate questions you might have. If I don't have the answers, I will be happy to track down an expert who does!

2008 was a BIG YEAR for the Robin Sherman Realtors team. I just checked our stats and we finished the year as the #2 Coldwell Banker team in the STATE of Florida in terms of our sales volume. WOW . . . even if I do say so myself!!!! (To borrow one of my competitors slogans - just this once Sandy - I could say "I'm not bragging, just applying for a job.")

"Girls Just Wanna Have Fun" - Robin, Harriett and Ruthie join Keller Williams

The beginning of a new year is always a good time to make a new start. After seven very productive and successful years at Coldwell Banker in the Greater Pensacola Bay Area (Coldwell Banker JME Realty and later Coldwell Banker United Realtors) we have moved our team to Keller Williams Realty. Our new offices are located in Gulf Breeze, not too far from our previous location on Pensacola Beach.

Our clients will receive the same caring, personal service that has helped us grow our business so rapidly over the past seven years. Our philosophy of having fun while we work . . . and making sure our clients do too . . . won't change! The move allows us to expand our team, adding local area specialists and providing our services throughout more of Escambia and Santa Rosa counties. We are also redoubling our efforts to keep our clients and blog subscribers up to date on the rapidly changing real estate market.

We'd love to show you why over 85% of our business is "repeat and referral." Never hesitate to call or e-mail us with your real estate questions!

Robin Sherman Realtors - Now with Keller Williams

Robin@PensacolaForYou.com