Jim's AR Blog

Short Sales Revisited

Wed, 24 Sep 2008 14:17:29 -0500

In response to another Realtor's request for assistance with short sales, I wrote the following note. I thought it might be helpful to anyone just starting short sale work.

1. The 1099 issue is a whole study in itself. Generally, if the owner is living in the house and has the homestead exemption, there will not be a 1099. Again, in general, an investor will get a 1099 for the bank's ENTIRE loss, including fees, atornies, etc. There are many, many exceptions and I suggest you get a copy of the current Federal rule, which has been posted by several people on Active Rain. As noted, cash out re-fis will usually trigger a 1099 unless the bank has a policy against it.

2. Setting a short sale price is a study. I personally have never had a bank tell me what they will accept on a short sale until we had a contract signed by buyer and seller and we had a bank appraisal (and BPO) in hand. Then the asset manager has some numbers to work with. Once they give you this bottom line number (by letter) they usually will not budge, so if you go to closing a few dollars short, guess who has to eat it? The listing agent is always in the weakest negotiating position, so if the selling agent or buyer agree to contribute to a shortage, give thanks! During the hey-day we did a lot of Net Price Deals in land sales. We had to work backwards from the Seller's Net to get the total sales price. Short Sales usually turn out to be Net Price Deals!

3. You will need a preliminary HUD to send to the Asset Manager with the contract. Be advised that the numbers on the HUD enter into the bank's pricing decision. Study it carefully before sending it to the bank. Talk to the buyer and/or buyers agent to get them prepared for any price increase that might happen. Make sure that your title company takes this seriously and does not screw you by coming up with different numbers for closing. YOU WILL EAT THE DIFFERENCE!

4. The firmest rule in short selling is that there are no rules. Banks usually dictate terms and conditions....take it or leave it, so be prepared and have your buyer prepared. Buyer can write all sorts of conditions in the ammedment section of the contract....Bank will often not even read it, let alone pay attention to it. Like in sandlot baseball, He who owns the baseball makes the rules.

One of the largest mortgage banks recently circulated a notice to its' many branches to GET SERIOUS about processing Short Sales. I have noticed some spedup in response, for what it's worth.

Note: I like to slowly study the contract and any amendments before taking any action on a short sale. Even more so than on a regular deal. Always talk to the other agent and/or buyer before taking the next step....look for problems at every turn. Ask yourself: "How will this look at closing?". Talk to the asset manager as often as you can & ask for guidance. You will get precious little, but take seriously what you get. By doing this you try to avoid getting backed into a corner where commission give-backs are the only solution.

Lock Boxes

Wed, 13 Aug 2008 15:30:59 -0500

Our local Real Estate Board utilizes the GE Supra Key system. I have always been an outspoken proponent of the system and could never figure out why any agents would use the "old-fashioned" combo boxes, other than the fact that they were cheap and didn't want to spend $125 or so for the electronic versions. For mechanical boxes, You have to call the showing reservation number for that listing agent to get the lockbox code. Sometimes the system works good, but for nearly every showing list, there are one or two listing agents who don't answer their phones and sometimes don't respond to messages. Go figure!

Recently, I had two of my cherished electronic boxes "crap out" on me. Both had recently shown 85% or higher battery, but now they are mute and dead. Both were firmly affixed to door handles and both contained my only key for that that house. The outcome to this issue was not pretty. Taking a homeowners door apart to get the box is just part of the problem. Then explaining to a smart-xxx New Yorker why I need to have another key mailed down "post haste", because there is no way to open the electronic box once it dies. Then doing a tap dance for a Buyers Agent who just had to show one of the houses right away ( I never heard from them again after they showed the house - no feedback, no returned call, no business card on the counter, no thank you, nothing - topic for another rant!). Then getting the news from the board that all warranties were void after 365 days and furthermore, there is no repair procedure. When it's dead, it's dead.

So, folks, I have recently gotten acquainted with Home Depot's counter section on lock boxes. Master Lock and GE sell combo boxes at HD for $29.97. Three different models, all $29.97. Curious, isn't it? Well, we moved on past that little analomy and bought a half dozen of the Master Locks. Mostly because I am mad at GE.

Well, I learned some things from this....
   1. The Master Lock is amazingly simple to use, reset and shackle. No phone calls necessary.
   2. Never complain about agents who don't use the new electronic keyboxes!
   3. Never get caught without a spare key for every house.
   4. Re-Double my Effort to Answer every cellphone call as it come in.....to Hell with efficiency!
   5. My website has an instructional video on making "bump keys". I finally made one!

One good outcome.... the GE electronic boxes are very heavy and have smooth rounded edges and, of course, have that nice big shackle loop up on top. I have found that they make excellent down-rigger weights for my fishing......in fact, they are superior to the expensive down-rigger balls sold at the Marine Supply store. Not good for high speed trolling, but excellent for "bumping the bottom". I'll be using several of them shortly up on Pickwick Lake as I drift along for big Blue Catfish in 70 to 100 feet of water. The GE Supra Box will stir up mud on the bottom and ole whiskers will follow the trail right up to the bait that follows. So I have a good supply of good weights! Only $125 each! Ruefully I admit that I have spent more for less. Like some of the Search Engine Optimizers who I hired to get my website noticed! Or some of the signs I've had made that now decorate my garage. So we move on and make Silk Purses out of Sow's Ears!

Another good outcome...I have now made a complete set of bump keys which will get me into any of my listed homes IN AN EMERGENCY. There are really only two, maybe three, types of key in common use, so that was a pretty simple project that I can add to as necessary.

Business seems to be picking up. Maybe I'll need another half dozen lock boxes soon!

James R. Gibson, Realtor, MBA, E-Pro

Sellstate Advantage Realty Network, Inc.

Cell: 239-823-3469

Mailto: Jim@JimGibson.BIZ

Web: www.JimGibson.BIZ (see the tab on Home Security)

Wind Inspection Affects Florida Homeowner Insurance Premiums

Tue, 12 Aug 2008 20:02:22 -0500

Wind Inspection affects Florida Homeowners Insurance Premium

Previously, we have posted several articles about getting a Florida Wind Inspection under the present, but soon expiring, state funded program.
Look up previous posts using the keyword "insurance".

Today we received our Homeowners Renewal from ASI Assurance and it was interesting reading.

Bad News....The premium went up from $7,357 to $10,241. Yes, I have a large home on a golf course in Cape Coral, Florida.

Good news.....Multiple Discounts on the premium due to the wind inspection report are just over $7000.
Also got a New Dwelling discount (why not last year????) and a Senior Citizen Discount (thank you).
Then they added back a whole laundry list of miscellaneous charges ......(this is good news????)

Bottom Line....New Premium is $2,824.

If your Florida Homeowners Premium did not go down this year, you need to ask your agent a lot of questions !!!

302 NW 2nd Place, Cape Coral, Florida 33993

Tue, 12 Aug 2008 18:09:13 -0500

$145,000 for a NEW 2347 sq ft home, Never Lived In !!!

Boomer Alert !!!!! Buy this home before you shovel another snowed-in driveway!

This 3 bedroom, 2 bath home sits in a quiet neighborhood just West of Santa Barbara Parkway and just North of Pine Island Road. Garage Door Openers, Multiple Keys, Warranty books, etc. are all in Realtor's possession. COME ON DOWN !!!

See the builder's description at http://www.hansenhomes.net/images/huntington3Floorplan.jpg

More detailed information at http://www.JimGibson.BIZ (Cape Coral Area Listings)

Jim Gibson, Florida Realtor, MBA, E-Pro
cell 239-823-3469
email Jim@JimGibson.BIZ

Waterfront Lot in NE Cape Coral Florida $49,000 Seller Financing

Fri, 08 Aug 2008 21:07:24 -0500

We have one fine waterfront building lot which is a corner on intersecting canals, one of which is the Alligator Slough, a major freshwater canal across the Northern side of Cape Coral.

The lot is offered at $49,000 with some seller financing available.

A recently opened access from this area to Del Prado Blvd makes for easy driving to a new shopping mall with grocery and restaurants. It is also quick out to US Hwy 41 in North Fort Myers and the free bridge into Fort Myers.

There are new homes in the immediate area of this lot. Fishing is GREAT !!

James R. Gibson, Realtor, MBA, E-Pro

Sellstate Advantage Realty Network, Inc.

Cell: 239-823-3469

Mailto: Jim@JimGibson.BIZ

Web: www.JimGibson.BIZ

About Cape Coral

Luxury Pool Waterfront Home in Cape Coral Reduced to $299,000 !!!

Fri, 08 Aug 2008 20:41:01 -0500

$299,000 for this Nearly New (2006) Luxury Waterfront Pool Home in Central Cape Coral, Florida.
1886 sq feet under air, 3 bedrooms, 2 baths, POOL, Waterfront with a Seawall and Dock
In a quiet neighborhood near Santa Barbara Blvd and Veterans Parkway. Close to shopping, Restaurants, Services and the major route ...

see details and pictures on this home's personal website:

http://227SW28thTerrace.JimGibson.BIZ

Front Entrance for the Luxury Cape Coral Florida Waterfront Pool Home

Interior View of the Luxury Cape Coral Florida Waterfront Pool Home.

Pool and Waterfront View of the Luxury Home in Cape Coral Florida.

James R. Gibson, Realtor, MBA, E-Pro

Sellstate Advantage Realty Network, Inc.

Cell: 239-823-3469

Mailto: Jim@JimGibson.BIZ

Web: www.JimGibson.BIZ

About Cape Coral

Market Updates Link

Buckingham Model Homes for Sale followup 3/2 with Den

Sun, 20 Jul 2008 21:00:00 -0500

We have a followup to yesterdays listing announcement for these fine Buckingham Model homes in Cape Coral and Lehigh Acres Florida. These are the remaining homes and are subject to prior sale. All of the homes are NEVER LIVED-IN, 1785 sq ft with no pool unless otherwise noted. No appliances unless otherwise noted. Go to our previous BLOG for floorplans and interior pictures from the model home. Three full bedrooms plus a large den and two full bathrooms. Split floorplan, Florida Style.

These are bank-owned, ready to go. The foreclosure process is complete.

430 NW 1st Avenue, Cape Coral Florida $135,000

3313 72nd Street West Lehigh Acres Florida $127,000

415 NW 4th Terrace Cape Coral Florida $135,000

1022 SW 9th Court Cape Coral Florida $135,000

733 Fuller Avenue South Lehigh Acres Florida $180,650
POOL....Upgrades galore.....

Also..... 2818 NW 24th Avenue, Cape Coral $152,900. (no picture available)

As dicussed under "Financing" on my website, you will need either a bank-issued pre-approval letter or proof of cash funds available for immediate purchase. http://www.JimGibson.BIZ
Call me to discuss or contact David Hoke, First Capital Lending, cell 239-292-5460 ref: jim Gibson's Buckingham Homes.

James R. Gibson, Realtor, MBA, E-Pro
Sellstate Advantage Realty Network, Inc.

Cell: 239-823-3469

Mailto: Jim@JimGibson.BIZ

Web: www.JimGibson.BIZ

About Cape Coral

Newly Listed REOs in Cape Coral and Lehigh Acres - $135,000 never lived in

Fri, 18 Jul 2008 21:20:56 -0500

My agency just listed a bunch of REOs (bank-owned properties) in Lehigh Acres and Cape Coral, Florida. This is just a sampling of one model, the Buckingham. Prices vary somewhat, but most are at $135,000. Most homes are NEW, never lived-in. I will not give an address because we have eight of them all alike.....call me for addresses of whatever is left. These homes were given back to the bank by Deed-In-Lieu of Foreclosure (DIL), so there is none of the "Short Sale Stall" or "The Asset Manager is on Vacation" stuff. Once the bank owns the property, they suddenly take an interest in getting rid of it. That said, these homes turn over pretty fast, with good offers subject to acceptance. I don't know where the newspaper gets their numbers, but these REOs are selling like Hot Cakes! We get a new batch of these homes about monthly (43 this month), so if your "dream home" sells before you get around to making an offer, just get on my Listing Book account to see the new listings come up. Some, but not all, of these homes have new appliance packages for delivery on closing day.

By the way, if you would like to join an agency that has a good resource for listing and selling REOs, give me a call.....If you are going to be in the business, you might as well have something to sell!

As you can see, this model is generously appointed, with plenty of room for your family. The large den can accomodate extra sleepers in a pinch. We presentyly have one Buckingham model with a pool (in Lehigh) at $180,650.

If you are not familiar with Cape Coral, Florida, go to my main website for more city information.

http://www.JimGibson.BIZ

I have other listings in Cape Coral, Florida, including a very nice waterfront condominium and a luxury golf course home. Call me and tell me what you are looking for!

Dreams Come True in SW Florida!

James R. Gibson, Realtor, MBA, E-Pro

Sellstate Advantage Realty Network, Inc.

Cell: 239-823-3469

Mailto: Jim@JimGibson.BIZ

Web: www.JimGibson.BIZ

1815 Embers Parkway, Cape coral, FLorida, 33993

Tue, 01 Jul 2008 15:17:14 -0500

Four Lots - 160 feet of frontage on Embers Parkway. Clear Lot - no trees. $46,000.

Seller owns four contiguous 40' lots - will sell two or four. These lots have a city water line but have not been served with an assessment for water as yet. No sewer or irrigation water lines are contemplated at this time. A zoning variance was granted for a model home across the street.

OWNER FINANCING AVAILABLE!!! Call for more information.

MLS# 200836257 Agent has a beneficial interest in the property.

see more information on my website: www.JimGibson.BIZ

Jim Gibson, Florida Realtor, MBA, E-PRO
cell 239-823-3469

4924 Tudor Drive Moonlight Bay Condos, Cape Coral, FL 33904-9477

Tue, 01 Jul 2008 15:00:59 -0500

We just listed a very nice (age 55+) SailBoat Access unit in the Moonlight Bay Condos just off the Bimini Bay in Cape Coral. Close to Restaurants, shopping, services, convenience store, etc. in downtown Cape Coral, but on a quiet cul-de-sac drive along a saltwater canal. Catch your dinner off the dock!!! Nice pool, well-kept building and grounds.

See the virtual tour at www.JimGibson.BIZ . Look for "Cape Coral Area Listings" and find the Tudor Drive address.

MLS #200834630

Jim Gibson, Florida Realtor, MBA, E-PRO
cell 239-823-3469

Building Lot LEHIGH - Owner Financing

Mon, 23 Jun 2008 20:07:07 -0500

Buy this nice building site in SW Lehigh Acres for just $9900., with OWNER FINANCING!

$2000. down, 7.5% interest, $125/mo for 36 months then balloon the balance. Either pay it off or refinance the balloon with the bank or credit card.

Zoned Residential (RS-1); EPA Soil Type 11; Purchased on a General Warranty Deed with Title Insurance.

Now is the time to buy building lots before they go up again!

More information at: http://390320thstreetsw.jimgibson.biz

Pickwick Lake Rentals and FSBO

Mon, 19 May 2008 20:21:09 -0500

A new website promotes the homes of Pickwick Pines Resort for Sale or Rent by Owner.

http://www.FSBOPickwick.com

This month a Showcase Home in the Pickwick Pines Resort is:

http://1BrettBluff.fsboPickwick.com

The resort is located in the rolling hills of NE Mississippi on the Pickwick Lake impoundment of the Tennessee river. Across the River to the North is Savannah,Tennessee and just a few miles to the East is Cherokee, Alabama. Seventy five miles of water for boating, fishing, jet skiing, water-skiing, or what-have-you. And if that is not enough, how about a couple of hundred miles on the Tombigee Waterway, which connects to the Pickwick Lake and heads South to Mobile, Alabama?
The Pickwick Pines Resort offers boat storage on-site plus lots of room for ATV fun and Four-Wheeling. Bring all your toys!

See some pix of the resort and area:

http://www.jimgibson.biz/Pickwick_Pines_Resort/page_1890953.html

While you are there, take the family over to the Shiloh Civil War Battlefield. It is a sobering experience. While you are over there, have dinner at the Catfish Hotel. Be prepared for the best ribs or fried catfish you can find ANYWHERE! Debate rages as to whether the Old Catfish Hotel (which burned) or the New Catfish Hotel have the best meals, but believe me, you won't leave unsatisfied.

3317 23rd Street SW, Lehigh Acres, Florida REO

Mon, 19 May 2008 18:59:36 -0500

We have just listed a REO (bank-owned post-foreclosure). Ready to sell, no delays.

NEW, NEVER-LIVED-IN !!! On a nice East-West Street that connects to the major exits of I-75.

$117,200 for 1400 sq ft of living area and 1969 sq ft total area.

No way you can build a 1956 sq ft home from scratch in Lee County. The lot, impact fees, permits and site preparation would blow the project out of the water, even in this present diminished market. Yes, labor is now a little cheaper, but materials are not much different from 2005/2006. Impact fees are impact fees, and not much can be done with that. Site prep is still a major expense, due to the new EPA and Health Department requirements for extensive lot build-up. So why would you even think about building from scratch when you can have one of these beautiful NEW, Never-Lived-In homes for way below construction cost? Take advantage of the Law of Supply and Demand!

Jim Gibson, Florida Realtor, MBA, E-PRO

Cell: (239) 823-3469

Email: Jim@JimGibson.BIZ

Web: http://www.JimGibson.BIZ

2208 NE 10th Avenue, Cape Coral, Florida

Sat, 17 May 2008 11:37:51 -0500

$135,000. For Sale.... Bank-Owned (REO) .... MUST SELL NOW!

Never-Lived In Home in Cape Coral, Florida. Went through Foreclosure and is now in a Must Sell mode with the bank that owns the home. Take Advantage of the bank's situation and Make An Offer! Due to the urgency of the Sale, all offers must be for Cash or must be accompanied by Pre-Approval Letters issued by a bank. Call us now for assistance on this matter!

This home comes complete with new appliances which will be delivered upon closing. The Cape Coral home was completed in 2006, never lived-in. Offered "As-Is" with full right of Inspection. We have similar models and deals available in Lehigh Acres, Florida.

1808 Sq FT under Air; seller's estimate...2591 Sq Ft total Size; see www.LeePA.org for Appraiser's figures

Front and Rear Views of the actual Home in Cape Coral:

Call now to see this beautiful home or one of the other similar new homes!

Jim Gibson, Realtor, MBA, E-PRO
cell        (239)823-3469
email      Jim@JimGibson.BIZ
web        http://www.JimGibson.BIZ

4109 NE 15th Avenue, Cape Coral, Florida 33909

Thu, 15 May 2008 20:18:10 -0500

$135,000. for this Never-Lived-In Builder Product Home, Bank-Owned Property (REO).

Cape Coral, Florida home...we have a similar Lehigh Acres home listed at this time.

Great Open Floor Plan, Vaulted Ceilings, Den

1808 sq ft under air ($75), 2591 total sq ft ($52)

This Cape coral Home is large and well laid-out. Three bedrooms plus a den.

All New Appliances will be installed in the Cape coral Home or Lehigh Acres Home upon sale.

We have other Bank-Owned Homes, Never-Lived-In ! Call Now !

Jim Gibson, Realtor, MBA, E-PRO
cell      (239) 823-3469
email   Jim@JimGibson.BIZ
web      http://www.JimGibson.BIZ

227 SW 28th Terrace, Cape coral, Florida 33914

Wed, 14 May 2008 09:00:28 -0500

$325,000. for this Nearly New (2006) Luxury Waterfront Pool Home in Central Cape Coral, Florida.

1886 sq feet under air, 3 bedrooms, 2 baths, POOL, Waterfront with a Seawall and Dock

In a quiet neighborhood near Santa Barbara Blvd and Veterans Parkway. Close to shopping, Restaurants, Services and the major route into Fort Myers and over to I-75.

This home has been rented for one year under the careful tutelage of a reputable Rental Management Firm. Nearly New in every respect. One of the finest examples of luxury homes in Cape Coral Florida Real Estate. Tile Roof, Automatic Lawn Sprinklers...City water, Irrigation and Sewer just run to this area.

Soaring ceilings, Upgraded Cabinets, Large Tile Floors, Gorgeous Master Bath Suite....

Heat Recovery System gets you Hot Water from the Air Conditioning System.
Generator Cutover Panel Built-In.... Pest Control System Built-In the exterior Walls.

Cape Coral Waterfront Homes are just wonderful!

Call me now to buy this home! More details on my website!

http://228sw28thTerrace.JimGibson.Biz

Jim Gibson, Realtor, MBA, E-PRO
cell       (239) 823-3469
email    Jim@JimGibson.BIZ
web       http://www.JimGibson.BIZ

334 NW 17th Terrace, Cape Coral, FL 33993

Tue, 13 May 2008 19:20:52 -0500

Pre-Foreclosure Short sale. FOUR Bedrooms, THREE baths, POOL home

NEVER LIVED-IN!

$210,000. for 2800 square feet under air..... That's just $75/sq ft for a premium home!

Let's go after this home NOW before the bank gets it!
We are in contact with the bank and we believe that they will accept an offer at this level.

This home has tile floors except for carpeted bedrooms.

Deluxe ceiling fans....Automatic Lawn Sprinklers....Huge ool Lanai.

Pool Bath Shower.

This a fine Cape Coral Home in a nice neighborhood with newly paved streets.

Located just off Diplomat Parkway, it has easy access to shopping, restaurants and services.

Call me now to see this beautiful home.

Jim Gibson, Realtor, MBA, E-PRO
cell      (239) 823-3469
email   Jim@JimGibson.BIZ
web     http://www.JimGibson.BIZ

We have other listings, including FORECLOSED Homes owned by banks (never Lived-In).

3053 NW 3rd Avenue, Cape coral, Florida 33993

Mon, 12 May 2008 09:39:43 -0500

Bank-Owned Property. NEW, Never-Lived In, REO.

$115,000. works out to just $81./sq ft of living space

This home has an optional Rear Screened lanai and 450 sq ft garage !!

Note that the total (living area plus garage plus covered lanai) square footage of this home as reported by the Lee County FloridaProperty Appraiser is 2128 sq ft.

We have other foreclosed homes (REOs) which were built by the same builder. Investors failed to honor their contracts, so these NEVER-LIVED-IN Homes are available for low, low prices. We also have a few bank-owned homes available in Lehigh Acres, Florida.

Jim Gibson, Realtor, MBA, E-PRO
Sellstate Advantage Realty
cell       (239) 823-3469
email    Jim@JimGibson.BIZ
web      http://www.JimGibson.BIZ

Go to my website for a FREE, no-hassle membership in our Listing Book Search engine, which allows you to Search the MLS Like An Agent !! You can get full details on this and other foreclosures in Cape Coral and Lehigh Acres, Florida.

1415 SW 1st Street, Cape Coral, Florida 33991

Sun, 11 May 2008 15:44:30 -0500

New Home For Sale - Bank Owned - This is NOT a Short Sale

$115,000. As-Is Sale, Never-Lived-In

All offers must be accompanied by Bank Approval Letter or Proof of Funds on Deposit.
Call me for assistance. cell 239-823-3469

Photos from Builders Model..................

Front and back photos of 1415 SW 1st Street, Cape coral, Florida 33991:

We have a number of new homes, never lived in For Sale by Banks.

Most of these homes are Foreclosures or Deed-In-Lieu of Foreclosure.

Cape Coral and Lehigh Acres....same builders models.

Jim Gibson, Realtor, MBA, E-PRO
Sellstate Advantage Realty
cell:         (239) 823-3469
email:      Jim@JimGibson.BIZ
web:         http://www.JimGibson.BIZ

Sign up for a FREE Listing Book account on my website and see all the MLS details on this and other foreclosure homes. http://www.JimGibson.BIZ

2924 NE 5th Place, Cape Coral, Florida

Sat, 10 May 2008 09:09:33 -0500

Ashford design by our largest local builder. $116,000. AS-IS.

This home is a bank repo, now owned by the bank. This is NOT a Short Sale. Quick Answers!!

Previously sold for $259,200 !!!

This bank-owned home is in the NorthEastern section of Cape Coral, near the Del prado Boulevard main N-S corridor. Shopping, Schools, Restaurants and Services are nearby.

Contact Me now before this home gets away!

Jim Gibson, Realtor, MBA, E-PRO
Sellstate Advantage Realty
cell: (239) 823-3469
email: Jim@JimGibson.BIZ
web: http://www.JimGibson.BIZ

Bank-Owned Home For sale (REO) Cape Coral Florida 2818 NW 24th Avenue

Thu, 08 May 2008 14:57:00 -0500

We have a new listing of a bank-owned home in Cape Coral, Florida.

Priced at: $152,000. ($85/sq ft under air; $65/sq ft total)

Located at: 2818 NW 24th Avenue, Cape coral, Florida

This home is a Buckingham Model by First Homes. It has a den and has 1785 square feet under air conditioning. Total square footage, including the garage and entry is 2340.

You cannot build a quality home this cheaply! Take advantage of the bank's inventory issues!

Pictures from the builder's Model.

We have another Buckingham in Cape Coral which will come on the MLS shortly.

We also have one bank-owned Buckingham in Lehigh Acres, florida.

Call now to see one of these homes!

Jim Gibson, Realtor, MBA, E-PRO
Sellstate Advantage Realty
cell ph: 239-823-3469
email: Jim@JimGibson.BIZ
web: http://www.JimGibson.BIZ

Personal Branding - A New Approach

Sun, 04 May 2008 17:39:11 -0500

Personal Branding was the mantra of the 90s and up through about 2005. Every one of the Big Name Real Estate Speakers extolled the virtues of having your name on everything that you handed out - hats, refrigerator magnets, T-Shirts, flyers, postcards, pens, rulers, calculators, and what-have-you. As the boom picked up momentum after 2000, all of this seemed to make sense - it was working wasn't it?

Well, maybe it wsas not working so much as the market was working, because now we are seeing market research that seems to indicated that consumers just don't care who you are as long as you can provide the information they seek in the quickest possible timeframe. There are Exceptions to every rule, of course. There are a handful of personally branded Realtors and Mortgage Brokers in each region who stand out from the crowd because of years of advertising their name. Particularly in small towns, well known and respected professionals tend to garner most of the business.

For the masses, of which I am one, personal branding is an expensive and "iffy" approach to generating more business. Putting my picture on a billboard just costs more than I am willing to fork out, just to see what will happen. For most of us, including the new entrants to the field, we must find a quicker and less expensive way to achieve success. The Internet has changed things dramatically, because now we are not just dealing with our local market, we are dealing with the World Wide Web. So now we cast our nets wider.

Internet viewers do not care WHO YOU ARE, they only care WHAT YOU ARE. Can you fulfill their need? For example, let's say you are looking for a magnetic lens adapter for your nifty little digital camera. You need a wide-angle lens to capture a wider view picture of the living room in a home you just listed. It has to be magnetic so the wide-angle lens will just pop off if the main lens withdraws into the camera. (Don't want to burn up the little motor in the camera). So what do you do? Do you jump in the car and start driving around to camera stores? Probably not, with gasoline at $3.50 a gallon. YOU GO TO THE INTERNET, of course. You Google it up and get 10 responses. Now, I ask you, how much do you care about the name of the person selling the lens?

If an unknown offers immediate shipment at a fair price and takes Pay Pal or a credit card, would you refuse to deal with the person or company? I doubt it. Why do you think a German Buyer googling up a Real Estate Agent in Cape Coral, Florida would feel any different. Stateistics from NAR show that the first person to answer a plea for assistance usually gets hired. What would make you think that the said German Buyer would google up a Real Estate Agent by name? Think about that for a minute. How many German Buyers have one of your cute little refrigerator magnets?

So, In other words, it is the WHAT YOU ARE that prospects are attracted to. Think about what search words a German Buyer would type in if he wanted to buy a Golf Course Home in Cape Coral, Florida. These words should be your new MANTRA !!!

If you are prompt, do what you say you will do, diligently pursue an objective, etc., then a person who just "met" you on the Internet, will be impressed.

Budget wise, this Internet approach is both easy and efficient. Prowling the pages of Active Rain for Search Engine Optimiztion takes time, but it does not cost money. Knowledge is an accumulated database that stays with you long after you have paid the price. SEO is an accumulated efficiency that stays with your website as it steadily brings in more inquiries.

Cape Coral Florida Golf Course Homes

Sat, 03 May 2008 13:02:03 -0500

As we begin the long recovery in real estate sales and prices, many real estate investors are coming back to test the waters. The primary motivation seems to be that they can buy inexpensive homes now, rent them at a small negative cash flow for three years and then turn the investment over for a nice total return.

Where I have questioned this practice is whether buying the low-end homes will give the best total return. It seems to me that buying mid-range homes on a golf course or on waterfront lots would seem to give more acceleration on price looking down the road. Several investors I have talked to say "Yes, but I like to stick to the bottom rung on the ladder."

The rents are another issue that I have thought about. Right now rents have crashed due to the large number of homes for sale. Interesting, though, that many renters have already been burned by renting homes in pre-foreclosure or in Short sale status. If the bank evicts the owner, the renter gets swept away with the same broom (or Sheriff). Not nice to get thrown out on short notice after you paid the rent for the month. So what I see happening is that for stable situations, rents have already started to creep up. Ii would expect this situation to accelerate over the next year as more homes are foreclosed and inventory continues to shrink.

I tried to find a Cape Coral Golf Course Home For Rent for a client last week and found NOTHING withing a half mile of the Golf Course. Even called several owners I knew to see if they would have interest. NOTHING. To be sure, there are still several beautiful vacant homes on the Coral Oaks Golf Course, but they are all either builder product or short sale offerings that won't be rented. Two vacant homes sold recently on Coral Oaks, and neither will be a rental.

The Coral Lakes Development had their infamous "sale" last month, adroitly handled by a top Real Estate Professional. All of the builder inventory was sold, mostly to homesteaders. Low-Priced Rentals at Coral Lakes have virtually disappeared from the MLS. Ditto the situation at Tarpon Point and Sandoval. The remaining single family dwellings for rent on the MLS seem to be dominated by the $100 commission generosity, which just might be a reason why nobody has tried to show them.

Talking to a couple of rental agencies recently, I hear a lot of complaints about the workload, due mostly to foreclosures popping up unexpectedly. All of them say that they could rent anything they can get their hands on right now if it is a clean deal.

Where this leads me is that I think rents may move sharply upward in Cape Coral when the "snowbirds" come back in the fall. While few "snowbirds" will look for year-round rentals, they will sop up a lot of seasonal rentals at good prices, thus drying up availability.

The next logical extension of this thought process is that our overall residential real estate recovery will probably accelerate in the fall of 2008. Already, we have had a better April than anybody expected. Very little of the activity came from snowbirds. Just the previously mentioned Investors and homesteaders. And in April, I noticed that REOs are not coming to market quite so aggresively priced. Anything under $100,000 in good condition attracted multiple bids. Hooray!

I'm VERY bullish on the Cape Coral Real Estate Market right now. It looks like the long dry spell is coming to an end.

Lee County Florida Real Estate today

Fri, 02 May 2008 09:35:50 -0500

The Lee County Real Estate Market is improving for some folks and getting worse for others.

According to an article in the Business & Money section of the News-Press this morning, "Foreclosures hit new high". Foreclosure "actions" filed in Lee County in April spiked up sharply to a new high of 2160. By "actions filed", one would assume "Lis Pendens", meaning that the mortgage holder has initiated the first legal step of filing notice to the homeowner and the rest of the world that they are beginning the process of taking the home. for each of the homeowners, there is still a long road ahead before the home is actually changing hands. In some cases, the home is taken by the bank in just a few months and it is quickly put back on the market. In the article, Mortgage Broker and Investor Jeff Tumbarello, is quoted as saying that mortgage holders selling after foreclosure typically lose 50 to 60 percent of what they lent.

In our experience over the last year, we have seen many banks delay the process of completing "the take" because of this impending Big Loss. Whether they are trying to time the loss for reporting to their shareholders or whether they are trying to let a short sale happen, I don't know. But I have seen a couple of these situations drag on for over a year, still to be concluded.

Homes put back on the market at huge discounts, have attracted many investors and home buyers in the last four months. Investors, as opposed to speculators. Looking for a three to five year turn as opposed to a 60 day "flip". Particularly, new or nearly new homes that sold for $250,000 in 2005-2006, are now being sold as re-pos for about $100,000 if they are in like-new condition. Distressed homes are going for less. $75/sq ft is typical for a like-new property and $60/sq ft is typical for one with some issues. Typical issues are missing appliances, missing air conditioner, needs paint inside and/or outside, and occasionally some actual damage to walls or ceiling. It is unusual to find a foreclosed home without landscape issues.

A bright spot on the horizon is the lack of new building activity. While a couple of development builders don't seem to have "gotten the memo", most everybody else is hunkered down and avoiding new building efforts. Cape Coral reported 13 permits in April, up from 12 in March. This compares to April, 2007 when 115 permits were issued to some folks hopeful that the building recession would be a short one. Hope springs eternal! single family permits in unincorportated Lee County were 47 for both March and April. Tha'ts down from 262 issued in April, 2007. Remember, by April, 2007, the boom was officially over and we were deep in the throes of a home sales BUST.

Disturbing to me out of all this is that one third of the new foreclosure action in April were for owner-occupied homes. This building recession has spread to a lot of folks who don't fit the profiles perceived by the media. Sure, some of them were sub-prime borrowers to start with, but many were not. When is Congress going to act? We just cannot afford to sit back and watch homestead properties get foreclosed and go vacant. In other circumstances, maybe. But the country is teetering on the edge of a major recession. Politics aside, I hope that all of you are writing letters to your congressperson to express your opinions.

Glut of Homes Shrinking in SW Florida

Wed, 30 Apr 2008 10:10:06 -0500

GOOD NEWS!

The headline in today's business section jumps out to say that the Glut of (vacant) Homes in Lee and Collier Counties (Florida) is SHRINKING. Now I just wish that the headline was on page one of the main section, like all of the negative reporting has been, but I'll take what we can get!

Yesterday I was working up a listing price for a luxury home in central Cape Coral. We had tried unsuccessfully to sell the home a year or so ago and had very little interest from anybody, regardless of price. The owner rented it out at a negative cash flow for a year. Recently a municipal utility expansion project had the street all torn up. So now there is an assessment on the property, but it does have enhanced water, sewer and irrigation water systems. In doing my comparison shopping on the MLS, I discovered several similar models from the same luxury home builder, all located nearby. All were recently sold or pending sale. Surprise! There are people buying these upscale homes! And the prices are not that bad. At least, not in context. all of the homes would have brought $600-700,000. back in the day, and now they are under $400,000. That's less dicount than we see on houses that were $250,000 and now sell for $80,000.

Recently, I assisted in the purchase of two homes by an investor friend. He was looking for something under $100,000. in Cape Coral, which should not have been much of a problem according to the MLS reports. Over a period of three weeks, We got him two homes, one slightly over $100,000, but I was amazed at how many offers we lost because of multiple bidders. It is like a feeding frenzy for the bank-owned homes (REOs).

Short Sales are still difficult because of slow bank response to offers, but that is another story. when will the big banks catch up....or wise up? Finalizing a short sale is a lot less painful to all concerned than going all the way down the foreclosure road.....in my opinion, of course.

Somebody said in their blog recently that If you are looking for a bottom, better look in your rear view mirror. I like the way that rolls off the tongue and it sounds more true every day that goes by.