Sandisellsflorida

Why you Need to Listen to Your Listing Agent.

Sandi Davidson (Florida's Realty LLC) — Wed, 03 Aug 2011 18:06:22 -0700

I've had my eye on a 3/2 pool home in Lehigh Acres, Florida for some time. I've posted in several of my blogs that I am using my IRA for real estate to purchase income producing investment properties with Entrust Freedom.

This 3/2 pool home was listed at a somewhat aggressive price when I looked at it to my thinking primarily because it was an older home, with an older roof, no appliences and short on the sq footage at less than 1200. As a rental that works fine, but I opted for another home, slightly larger, nice pool and backyard, and brand new roof listed for about 5K less.

I kept my eye on the house anyway. Similar houses in that area with pools rent for around $800/mo so I knew at the right price the ROI after expenses could be close to 10%. I like to keep tabs on the good deals for any investor clients I have.

One client put a bid on the house several months back..a lowball offer of $55,000 with the asking price at $67,000. Based on what I knew, I really didn't think the offer was that far off the mark. I thought $58,000- $60,000 might be where it should go, and told my buyer that. The listing agent hinted the sellers would settle for $65,000. Sadly we were just too far apart.

Flash forward, the house was reduced to $67,000. Still no takers. Three days ago it was reduced to $59,900...what happened you ask? The house went into contract before I could get an email off to my buyer...just as well...he now wanted to offer $50,000.

Sellers, your Realtor has your best interests in mind. I am sure this particular listing agent (she was very lovely) worked with her buyers on their listing price. The buyer's held firm for as long as they could...holding the mortgage, paying utilities, paying for pool cleaning...hoping to get a better price so they could invest in a larger home. (They were not living in this one at the time..a vacation home). What I didn't mention is that they purchased the home a few months before listing it for $39,900. Holding out for an unrealistic price for months on end, will ultimately eat into the profits you will make. Work with your Realtor to get your house listed at market value, and sold timely.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Seller Financing is not for Everyone in SW Florida

Sandi Davidson (Florida's Realty LLC) — Wed, 03 Aug 2011 16:27:23 -0700

Today I received an email from a prospect inquiring about seller financed homes and it went like this:

I have good credit and the 5/% down, also the aproved loan from the Bank, but I am looking for better deal thant the one the bank offer me, and lower price on a 3/2/2 on a place that I may like it.
Please let me know your prices, and your interest rate, and all yours condition.

Here is my emailed response, which I followed with a call:

Often Seller Financed homes sell for higher than homes with conventional financing. This is because they have creative terms that makes these homes available to buyers who are unable to obtain a bank loan. The other thing that is common is for the Seller Financed rates to be higher than bank rates. For example the Seller Financed homes I’ve seen recently have rates anywhere from 6.5% to 10%, whereas the bank rate for a 30 year fixed rate mortgage is hovering 4.5% at the moment.

If your credit is good, and you are able to secure a bank loan, that is most likely going to be the best deal for you out there right now. I would caution you not to wait too long for the “big deal” for two reasons: With talk of the US credit rating being downgraded there is a very strong likelihood that mortgage rates will increase significantly. The second reason is that home prices in our area seen to have stabilized, and more than that listing prices and selling prices are on the climb, having increased 5% in July. Because Florida was ahead of the market in the real estate melt down, most suggest that it has already hit bottom. If you are looking for a better deal than those already out there, you may miss out entirely.

If you are serious about bidding on a home, and want to have a shot at having an offer accepted, your Realtor can help you put together the best initial offer, based on what is going on in the marketplace currently.

Good luck in your home search. Let me know if there is anything else I can do to help you.

What struck me most about this exchange is that with mortgage rates as low as they are, and with home prices where they are...some people like the gentleman above are still holding out..waiting for the "big deal". Turns out the prospect did not want to pay the bank fees, appraisal fees and so on...hoping to save $2000.00 in the process. What he failed to understand was that in X number of years, when his seller financed home loan balloons..he is still going to have to secure a bank loan. What the interest will be in X years is anyone's guess.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Interest Rates on the Rise.

Sandi Davidson (Florida's Realty LLC) — Mon, 01 Aug 2011 13:35:09 -0700

Per Bankrate, the interest rates for home loans are increasing as a direct result of the ongoing debt crisis talks going on in Washington. Less important is the need to raise the debt ceiling...no one really thinks we are going to default on our debt payments in spite of all the comments intended to scare the public and motivate political rivals.

"Mortgage rates inched up this week as investors were worried by political gridlock over how to raise the national debt ceiling and cut the deficit. Industry analysts have made it clear that if the United States defaults and the national debt is downgraded, mortgage rates could spike immediately. But the uncertainty over what Congress will decide over the next few days has already started to shake the mortgage world, as investors question if it’s still safe to invest in U.S. bonds"

Regardless of what happens with the debt ceiling most analyists agree it is a foregone conclusion that our credit rating will be lowered from the AAA status we now enjoy. This is more detrimental to cosumers and homebuyers as it will cost us more to borrow. This is a direct reflection on our governments inability to rein in our debt. Most economists agree that with no movement on tackling our debt, the US will lose the confidence of investors. Once that happens, it will costs banks more to borrow money and that "benefit" will be passed on to us, the consumers in the form of higher interest rates and inflation.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Another Orphan Saved

Sandi Davidson (Florida's Realty LLC) — Mon, 01 Aug 2011 11:40:21 -0700

Several weeks back my mom's adopted Shih Tzu "Spikey" passed away. He was a mess when she picked him up, so much so that she thought twice about keeping him. Matted, covered with fleas, smelly, two badly damaged eyes, and personality that was less than friendly. We advised mom to give him time, afterall he was found abandoned, and clearly mistreated...who knows what abuse he went through. He has reason to be distrustful.

I won't say that Spikey ended up being the most affectionate or loving dog, but he came such a long way since that first impression. He still barked at everything, but he no longer flinched or growled at you when you went to pick him up. He learned what treats were, and kisses, and what steak tasted like. He had a terrific four year with a loving owner and left a hole in my mom's life and home.

Last week she sent me photos of a Shih Tzu at the Lee County Domestic Animal Services Shelter, and asked that I go check him out. In the meantime another Shih Tzu arrived, and when I got to the shelter "Blue" now known as "Lucky" caught my eye. He had been adopted from the same shelter this past April, only to be abandoned by his owners in Cape Coral, who apparently also abandoned there home, and shut off all utilities...other victims of the housing crisis. Neighbors found Lucky running around on the street.

What a good dog. His plight and abandonments have done little to dampen his friendliness or his enthusiasum. He came with me right away, and bonded right away with my two Boston Terriers, Buster and Piggy. Mom came down with her female Shih Tzu, Shugah, and the two of them immediatey hit it off...good!

I am so happy and proud of my mom for giving another orphan a good home. We were heartbroken to see so many good dogs and cats at the shelter, and though the shelter is lovely and the staff terrific you could see the hope in the eyes of each dog as you walked by their cage...begging for your attention.

Dexter, a 4 year old Old English Bulldog caught my eye...and it is with bittersweet feelings that I see he is no longer available. I am happy that great looking guy found his forever home and hope the other wonderful dogs and cats at the shelter do the same.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Time to Get Off the Fence in Lehigh Acres, Florida?

Sandi Davidson (Florida's Realty LLC) — Wed, 27 Jul 2011 15:46:15 -0700

Per Trulia the average price per sq ft of homes sold in Lehigh Acres, Florida went up 5.26% from the prior quarter. Moreover of the 180 homes sold in the last 60 days, the average listing price went up .26%.

Lehigh Acres, Florida, long the poster child of the down turn in the housing market is showing signs of life. Buyers and investors waiting for the next bottom to fall out, may find themselves missing an opportunity to score a home in this quiet SW Florida community while the stars are aligned.

Mortgage rates are still low, something that cannot be garaunteed, and is likely to change with the threat of a reduced credit rating for the US and the increase in lending costs promised as a result.

Even if home prices were to decrease further, and indications suggest they are not, you would need a significant decrease to offset the additional cost of one percentage point in interest!

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

He Who Hesitates...

Sandi Davidson (Florida's Realty LLC) — Mon, 25 Jul 2011 17:05:47 -0700

Ted C. Jones said it in his blog post on April 2, 2009 and it still applies today:

Postponing a Home Purchase Waiting for Home Values to Decline Further May Price You Out of the Market

Primary residence buyers, Florida vacation home buyers and real estate investors alike are on the fence about property purchasing, assuming that the market has not hit bottom and the prices will continue to go down. It is the prospect of further price erosion and the need for a "deal" that keeps many on the sidelines instead of entering home ownership, in spite of the fact that the interest rates are lowest since Freddie Mac started statisical analysis in 1971.

Mr Jones says "While further price declines may be realized, I believe the likelihood of rising interest rates makes purchasing now a better option than waiting for further potential value declines. Simply stated, there is a greater possibility of interest rate increases than potential value declines. Even with the price decline, the interest rate increase may result in the buyer no longer being able to qualify for a loan on a home they wish to purchase for which they qualify today. Despite facing a potential in declining home values, now may be a better time to buy."

A simple mathematic formula demonstrates the significant cost savings at today's low interest rates vs. the sharp reality that rates may go up in the very near future:

Assume a loan today of $100,000 with a 30 year fixed rate at 5%. At these terms a buyer would have a monthly P&I payment of $537. If the prices of the home decreases 5% (and the loan amount as well), but the interest rates go up 1% point then the buyer will be paying $570/mo.

it is important for buyers not assume that even if home prices do decline further that they are not necessarily going to get that the best deal.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Fun in The Sun!

Sandi Davidson (Florida's Realty LLC) — Mon, 25 Jul 2011 12:24:23 -0700

What do I love about working as a real estate agent in sunny SW Florida? Working in paradise of course!!

I work with a lot of clients who are investors looking to take advantage of the home prices in Florida by investing in Florida Real Estate in Cape Coral, Lehigh Acres, and Fort Myers FL. Many of my out of state clients are also looking for vacation homes in Florida now that the prices are so affordable.

While looking at a few condos for a client of mine in New York, my husband tagged along and we decided to stop and have lunch at a small cafe near the Cape Coral Yacht Club and Yacht Club Beach. The Cape Coral Yacht Club area is one of my favorites. Conveniently located on the SE tip of the Cape it is a charming mix of old school Florida homes. with all of their charms, and large newer homes/mansions. It's a lovely lifestyle community where most home owners are boaters taking advantage of the many backyard canals and the yacht club itself. It's still the one place in Florida, where avid boaters can take advantage of low prices on sailboat, gulf access properties.

While stopping for lunch I had to take a moment to appreciate the beach, my lovely colorful seafood salad, against the backdrop of the sparkling water. What a little treasure the Cape Coral Yacht Club and Beach is for residents and visitors to Cape Coral. Perfect for a short trip to the beach when one doesn't want to drive to the gulf!!

Video of Cape Coral Yacht Club and Beach.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Simple improvements pay high dividends.

Sandi Davidson (Florida's Realty LLC) — Sat, 23 Jul 2011 13:52:19 -0700

When purchasing investment properties we look at the homes that require minimal cash outlay to update and make move in ready for renters.

Some of the same practices can apply to sellers getting their homes tip top shape for the market.

1. Curb appeal: It takes little or no cost to ensure that hedges are trimmed, and the property is weeded. Make sure your renter/buyer's first impression is a positive one. A simple addition of inexpensive flowers in the flower bed or in pots (you can take those with you), will add to the initial warmth and appeal. Try flowers that need little care, like begonias, succulents needing little water.

2. Clean and welcoming: Maybe you have a power washer, or a friend who has one. Cleaning up the exterior of the home can include a good washing. Rather than painting the whole house, if you can avoid it, try refreshing the trim, and giving the door a new coat of paint...I like a cheery and welcoming red!

3. De-clutter! Most rental homes are not furnished, so this may not apply, but I had to throw it in for you sellers. We really do like your stuff..you have terrific stuff...but the more stuff you stuff into your stuff...the harder it is for us to see how large/lovely/amazing your home is.

4. Update the kitchen: If your kitchen is dated, and a total upgrade is not in the picture or the budget, little things can make the world of difference provided it is not a total disaster. Cabinet paint and new hardware can take your kitchen look from blah to aaah! New hardware and matching appliances are a plus as would be the removal of that sunflower, cow, pig, daisy wallpaper border. If you want to go that extra step..on a budget and if you are handy...think about tiling the surface of your counter top. We built a wet bar recently and used travertine tile for the counter and edge...total cost less than $200.

5. A clean Loo: Bathroom updates need not be expensive. The goal is to make the space look inviting and CLEAN!. For outdated bathrooms, inexpensive floor fixes can make a huge difference...self stick linoleum tiles for example can do the job provided they are in a natural stone look or color! No need to replace ick with ick. Painting and outdated cabinet, and replacing the hardware can go a long way. Painting the walls in a neutral, modern and warm color can make the space more inviting. We recommend making sure all outlets are GFCI, and we also like to replace any obviously dated vanity lights and faucets, including those in the tub/shower. Lastly a must do is to regrout the tiles and re-seal the tub/wall join.

If you do decide to go an extra step, keep in mind that a simple bathroom rehaul need not be expensive provided you are able to do much of the labor yourself. Case in point is our 1970's bathroom that had a magical transformation for $700.00.

Before and after (you guess which is which)

6. Clean Freak: Fresh paint and clean floors/carpet are little things that make a big positive impression. I love paint for one of the easiest, cost effective ways to make a big change. If Fido has marked his territory on your cream color carpeting once too often, time to give it the heave-ho or at the very least a good scrub.

7. Fix it: Remember all those little things you wanted to fix, but never got around to doing...do it. If you've purchased an investment property...and have followed my advice, you had an inspection and you know what needs doing. Rank things by gotta do and nice to do, keeping in mind your budget and target ROI. If you are selling your home and don't know what the issues are...maybe it would be a good idea to spring for a inspection, at least you will eliminate any suprise later.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

How to avoid Flip Flops!

Sandi Davidson (Florida's Realty LLC) — Sat, 23 Jul 2011 13:07:49 -0700

There is hardly anyone in the real estate business today that doesn't recall the "flipping" heyday of the pre-market collapse. You could hardly turn the television on without flipping through the channels (pun intended) and running across shows like "Flip This House" on TLC.

I used to love to watch the shows myself. My now husband and I are avid DYIers and imagined investing in and flipping homes as part of our semi-retirement plan.

Investors who purchase property, fix it up and resale it for a profit are not gone. Well...not all of them are gone. Many investors are still alive and have adjusted their strategy and expectations to be in line with today's market conditions.

Gone are the quick fix and monstor profits of the past. Current investors deal primarily in cash, purchase mutiple properties and flip them quickly. Profit expectations are significantly less, $10,000 is viewed in a positive light. In order to be profitable investors intending to flip need to know the market conditions, and which homes have potential to turn a profit.

It would make very little sense for an investor to purchase a 40K property in Lehigh Acres, Florida requiring 20K of improvements in a market where comparable homes in good condition sell for 60-65K. Understanding the needed improvements related to the initial purchase price and ultimate sales price are paramount considerations when thinking of investing in that way. Understanding what the market will bear will help keep investors from making emotional purchases, and over improving property that just cannot support the cost of improvements.

Investors purchasing property to use as income producing property need to have a similar approach. Either way, the ultimate goal for the investor is profitability.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Accurate Representation or Shot in the Dark

Sandi Davidson (Florida's Realty LLC) — Fri, 22 Jul 2011 15:54:28 -0700

Recently I was speaking with a client. I had sent him a photo and listing of a home for sale in Lehigh Acres, Florida that I thought was an excellent value at the asking price. It was a very large, new, pool home, on the golf course, with granite everything, fireplace, screened pool/lanai...all for the very reasonable asking price of $169,000, a steal compared to what the house last sold for.

The email response later after he did a little research was "Zillow says the house should list for X". I have no idea what X was, nor did I bother to check Zillow. I merely commented that Zillow's prices are not an accurate representation of where the market is. I can speak frankly to this client, he's my brother in law.

With so much of real estate marketing being done online now, buyers feel pretty confident that they are fully informed about the property they are interested in, including where the "good" schools are, and what the market value of the home is. A recent article in the Philadelphia Enquirer outlined the pitfalls in viewing listing information on sites like Zillow and Trulia as gospel. Quite often the information is erroneous. One of the biggest flaws in their price estimates is that they don't take into account the upgrades or condition of the property.

Mark Wade, of Prudential Fox & Roach in Philadelphia stated that he thought websites like Zillow have some value, yet he added that he thought some of the values offered, such as Zillow's "Zestimates" were unreliable, saying that using the formula that determines them "is akin to throwing arrows at a dartboard. You rarely know where it is going to land".

Zillow itself says it's estimates are not the actual value of the property. If that is the case, why bother to post erroneous information? Zillow's Jill Simmons said "Zestimates are...a starting point in determining a home's value".

The data on Zillow "are tools to help consumers make better real estate decisions," Simmons said, "but we always recommend that people who want to buy, sell or refianance engage a local professional like an appraiser or a real estate agent."

We certainly respect the right of a consumer to know all the facts on any home they are interested, including last sold price, recent renovations, liens...in fact I always direct my clients to the local public websites where they can get all of the CORRECT information. I think that is more effective than using inaccurate information as a "starting point".

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

The Difference between Lease/Option and Lease/Purchase

Sandi Davidson (Florida's Realty LLC) — Wed, 20 Jul 2011 11:40:48 -0700

Upon reading a recent blog, I realized there is some misinformation and misunderstanding about the difference between the Lease/Option and Lease/Purchase agreements.

In today's market Sellers are using creative terms to increase their pool of buyers, in an attempt to secure a higher purchase price.

Lease Purchases are becoming increasing popular as an alternative to Seller Financing. Many buyers are re-entering the Florida housing market after having had a short-sale or foreclosure because of the upside down market. Many of these buyers are capable of paying a substantial down payment, and paying their monthly mortgage..the only hold up is that they cannot secure a bank mortgage because of a ding on their credit. These buyers need some time to repair their credit, which is where Lease/Purchase agreements..or Delayed Closings..can help.

A simple definition of a Lease/Purchase is a contract to purchase a home (with an extended closing date) coupled with a rental agreement.

A Lease/Purchase may mistakenly be called a Lease/Option. The main difference is that a Lease/Purchase includes a written purchase and sale agreement that is signed sealed and delivered. Lease Options seldom close, and I don't recommend or do them.

Risks for sellers offering Lease/Purchase options can be mitigated by requiring a significant down payment of 10-20% which will be theirs should the buyer default. I also like to require that the buyer work with a credit counselor, to ensure that they are able to repair and maintain their improved credit for closing.

The Lease/Purchase agreement is not as easy or straight forward as a more traditional approach on terms, but it is beneficial to the seller by allowing him/her to increase the pool of buyers, and offer home ownership to those who can afford it, but are temporarily unable to secure bank financing. This means sellers have a better chance of selling their home faster, and at a higher price.

Benefits for buyers include the opportunity to own sooner than they could if they had to wait those extra months to a year until their credit blemish is fixed. I do not, or would not recommend Lease/Purchase as an option for those who need more than 6 months to a year for credit repair. Seller financing may be the better option in that case.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Can't Get a Loan, Seller Financing May be The Answer.

Sandi Davidson (Florida's Realty LLC) — Tue, 19 Jul 2011 13:17:58 -0700

Many potential buyers find that their poor credit rating is keeping them from home ownership with banks unwilling to take on new risky loans.

Some buyers have money for a significant down payment, have the wherewith all to pay their monthly housing payments, but cannot get a bank financed mortgage due to a previous short-sale, foreclosure, or bankruptcy.

Seller Financing may be the answer to these hopeful homeowner's dreams. Seller financing has its advantages for sellers, though it is not without it's risks:

1. Sellers can get a large influx of cash via a significant down payment.

2. Sellers can get a larger pool of buyers to consider their home.

3. Sellers can often get a higher asking price, by offering the opportunity of home ownership to those who need a little time before they can secure a bank mortgage.

While Seller Financing is not going to be an opportunity for every potential buyer, many who would otherwise find themselves out of the market for now, can use this creative financing arrangement to accelerate the path to home ownership.

Your Realtor can help you find homes for sale offering Seller Financing, and hopefully your new home with terms that are workable for your needs.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

How much can you afford?

Sandi Davidson (Florida's Realty LLC) — Tue, 19 Jul 2011 11:28:15 -0700

I Ran across this simple worksheet in a blog by Dan Green, Loan Officer with Waterstone Mortgage and author of the blog, The Mortgage Reports recently and found it to be useful in helping clients understand how much home they can afford.

If you can count on anything, you can count on housing payments. Month after month your payment is due...no matter what. Regardless of what other emergencies happen, know that you will need to make your monthly house payment come rain or shine.

It's important, then, to think of your house payment in terms of monthly obligations. What can you afford to spend on housing each month? As a home buyer it is the most important question you can ask yourself. You will have to manage all of your other hopes and expectations as a result of your answer.

Find your specific number, not a range. Once you calculate your monthly budget, evaluating if a home is affordable for you is a matter of doing some very basic mortgage math. You'll need a mortgage calculator for this. You can find one on my website or try the one on bankrate.com.

First, sum the following three figures:

1. The home's annual real estate tax bill divided by 12,

2. The home's estimated annual cost to insure, divided by 12, (your insurence agent can help determine this number. If you don't have one, ask your Realtor for recommendations).

3. The home's monthly dues, if an association is present.

Next, subtract the total from your monthly budget amount and you're left with your maximum monthly mortgage payment.

Example: If your budget is $1,500 and the above sum is $400,
you have $1,100 left monthly to spend on your mortgage.

This next step is tricky.
Using your mortgage calculator, enter your maximum payment amount (e.g., $1,100), your loan's expected term (e.g., 30 years), and your expected interest rate (e.g., 4.750%).
Then, have the calculator solve for "loan size", add to that ﬁgure your expected downpayment amount, and -- voila -- you've found the maximum price you can pay for a given home while still remaining within your budget

Recall that nothing is stagnant however and you have to account for changes:

Quick Tips
✓ Budget For Changes
A home will never be as cheap as when
you ﬁrst buy it. Over time, tax bills get
bigger and insurance costs rise. Therefore,
when you set your monthly budget, make
sure you give yourself some breathing
room. Your monthly housing payment will
likely be larger 5 short years from now.

✓ Keep Some Money In The Bank
It's okay to make a big downpayment, but
make sure you leave some money in the
bank. "Life happens" and there's no
substitute for cash-on-hand. Keep at least
6 months of reserves in cash, if possible,
for whatever emergencies arise

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Delayed Closings Help Buyers Needing More Time

Sandi Davidson (Florida's Realty LLC) — Mon, 18 Jul 2011 10:50:18 -0700

Our Delayed Closing Program helps buyers who need more time, due to minor credit issues. Buyers in the Lee County Florida areas of Cape Coral, Fort Myers and Lehigh Acres can and do get to live the dream of home ownership even if they have suffered a recent short sale, foreclosure or bankruptcy. Our program allows buyers to move into, and live in the home as home owners while they work on repairing their credit in time for closing.

Our program is simple. We write an offer with a delayed closing of 6 months to a year. At the same time we write a rental agreement which allows the buyer to move into the home immediately.

To qualify, buyers must agree to credit counseling, be no more than 6 months to 12 months away from qualifying for a traditional mortgage, have cash available for a downpayment of 10-20% and sufficient income to pay their monthly rent.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Foreclosure drop is not seen as a sign of a healing market.

Sandi Davidson (Florida's Realty LLC) — Sat, 16 Jul 2011 10:38:06 -0700

Per Christopher Quinn of The Atlanta Journal-Constitution Foreclosure slow downs are not an indicator of a healing home market.

Foreclosure filings across the nation in the first half of 2011 are down 29% from the same period last year, but not because the housing market is healing, says a national real estate tracking firm.

"It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market," said James J. Saccacio, chief executive officer of RealtyTrac.

Understanding How Realtors Get Paid

Sandi Davidson (Florida's Realty LLC) — Thu, 07 Jul 2011 14:51:41 -0700

Buyers need a quick reminder on how and when realtors get paid.

I recently closed on an investment property here in Lehigh Acres, Florida, which has many terrific real estate deals as does the rest of SW Florida, for cash buyers looking to invest. My husband was at the property doing a bit of powerwashing when a woman drove up to speak with him about the house.

She had been told the house was for sale and was interested in purchasing it..right there..on the spot. He told her it was not for sale, but if she was looking for a home to contact me and I could help her find a lovely, similar home in the area. She responded, she did not want to work with a realtor because she did not want to pay the fee! There was no explaining to her that she was confused about the process, but God bless Gianni he did try.

Just this past weekend a friend was telling me how he couldn't understand how his realtor could be so unresponsive to his several calls regarding the $10,000 property he was purchasing, afterall he said "she's going to be making about $3000 on this deal"...come again? I'm not commenting on whether it is right or wrong for a realtor to be unresponsive regarding a property she is making $300 comission on (prior to her Broker taking his cut), what astounded me was that my friend, a real estate investor was clueless about the comission structure, and how and when agents get paid.

It costs a buyer nothing to work with most realtors. I have to add the caveat of "most" because I know several who charge a nominal gas fee before they will get in the car to show potential buyers homes. This I suspect has a lot to do with the cost of gas these days, and having been burned too often by sight seers. This happens a lot in lovely SW Florida, where vacationers may get the idea that spending a day looking at houses seems like a fun break from the beach.

Buyer's agents get paid only...if and when they bring a buyer to the closing table. The percentage they get paid is dependent on the brokers listing agreement. It's fair to say that the total commission is often around the 6% range, though it varies depending on the property and location. There is no "set" fee...that would be price fixing and illegal. This means that the buyer's agent will get half of the total comission, roughly 3% of the sales price. For example: a home selling for 3% will garner the agent $3000.00. This is before the agent's broker takes his/her cut...which percentage can vary by brokerage. I know several agents who have a 60/40 split, meaning they take home 60% of the $3000.00 comission.

Think about the time your realtor spends with you looking at houses, writing up offers ( I recently spent about 12 hours writing low-ball offers for a client of mine, in the hopes (his not mine) that something would "stick"....nothing did). We do this because we provide a needed service. It's the career we chose, and we enjoy our jobs, helping match people with the home of their dream...who doesn't want to be part of a happy ending like this??

Buyers, don't worry about contacting me, working with me, letting me help you...my time does not cost you a dime.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Recently Reduced!

Sandi Davidson (Florida's Realty LLC) — Thu, 07 Jul 2011 14:02:46 -0700

This investor's opportunity in the sunny SW Florida town of Lehigh Acres has just been reduced to $59,000. Currently rented at $750/mo with a lease through 2/12, this property will provide signiicant return for the cash investor. Per the seller, the property has potential to go commercial in the future.

Let's redo the math: $9000-$790-600-1200= 6410

$6410/59,900= 10.07% ROI!!!

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Using IRAs to fund Real Estate Investment

Sandi Davidson (Florida's Realty LLC) — Wed, 22 Jun 2011 09:29:53 -0700

A terrific opportunity for investors is to use their IRA to fund the purchase of real estate investment properties or to leverage the funding for said purchase.

While traditional IRA investments can yield high returns they are left to the ups and downs of the stock market, which we know in recent times has been volatile and with the economic outlook the way it is globally, the market is even more uncertain.

The way the Self Directed IRA for Real Estate works is that the investor transfers his/her account to an IRA management company like Entrust who holds the funds on the investor's behalf. The investor "directs" the IRA to purchase a property on behalf of the IRA. All repairs and expenses are funded through the IRA. All income generated by the property goes back into the IRA.

The beauty of this is that come retirement time the investor has 1. The property, which was purchased at a time when it was devalued, 2. The income generated for the life of the IRA, 3. A continued revenue stream if the investor plans to hold the property. This is compared to what the investor would have upon retirement with a traditional retirement savings account= the money in the account.

It is helpful to consult a tax lawyer or accountant when considering converting your IRA to a Self Directed IRA for Real Estate Purchase. It is also wise to consult with a Licensed Real Estate Agent in Lee County Florida, including Lehigh Acres, Cape Coral and Fort Myers, who can help you determine if your initial investment will garner you an annual ROI of 10% or better. A knowledgeable agent can understand the value of the home, potential rental income, costs you'll need to incur, and potential re-sale value if at some time you want to flip your property.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Taking Advantage

Sandi Davidson (Florida's Realty LLC) — Tue, 21 Jun 2011 14:34:37 -0700

Young families and first time home buyers are taking advantage of the housing crisis and foreclosures to jump ahead in the housing market ladder, or trade up on existing homes.

The largest number of buyers of foreclosed homes are still investors. Even with a surplus of inventory, if the prices are compelling enough that real estate investors can come in, make minor improvements and sell the home for immediate profit. Others are holding onto the property and renting it, while waiting for the market to recover.

It is more challenging for buyers to obtain loans now than it was during the housing boom of the mid 2000's. While the inventory is high the number of potential buyers is low.

Even so, with the prices coming down so low recently many young couples can afford to buy homes that would have been out of their reach during the boom years. A recent couple in Newport News purchased a home that originally sold for $500,000 for $261,000. While they were not looking for a home, they could not resist the opportunity to purchase their forever home...skipping over the typical years it takes to trade up.

According to a 2010 survey for real estate sites Trulia and RealtyTrac, renters are more interested in purchasing foreclosed properties, with 57% showing some interest in purchasing a foreclosure, compared to 40% of current home owners.

Also, young renters are more likely to consider purchasing a foreclosure, 65% in the 18-34 age group versus 31% age 55 and older.

It is common for younger home owners to take on the challenge of providing the type of TLC that a foreclosed home may require, and to have the flexibility to wait through the process of purchasing a bank owned home.

I was speaking with friends of mine in Lehigh Acres, Florida who were commenting on the son's new home and how it was better than theirs. He recently purchased a 4 bedroom, 3 bath brand new home, for the amazing deal of $65,000. This is a home he could not have considered owning only five years ago.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Rental Market Demand Increases

Sandi Davidson (Florida's Realty LLC) — Mon, 20 Jun 2011 14:30:28 -0700

The downturn in the economy and real estate market is turning many former homeowners into renters. Adult children are finding themselves moving in with parents, the elderly moving in with their kids, and multiple families moving together to offset housing costs. This is happening in many places, but Florida and Lee County Florida are among the areas experiencing these trends.

Economists at the National Association of Real Estate Editors feel that these market trends could affect the real estate market for years.

They also agreed that the market has not hit bottom, and is still on it's way down.

All things effecting the economy including the sluggish job market, falling home prices, and foreclosures have driven up the demand for rentals, especially in some of the hardest hit areas.

All of this will translate to higher rental rates as an estimated 1.2-2.2 million people are transitioning from home owners to renters.

The upside to all of this (if there is one) is that multi family development is on the uptick, and investment in income producing real estate is increasingly viable opportunity. As foreclosures increase and are resold to owner/occupants instead of investors, prices will stabilize. When that happens the demand for single family will increase as well.

The big question is when? With banks taking so long to foreclose, the market is unable to absorb those homes and stabilize as a result.

The first areas to see stabilization will be areas close to downtown as a majority of home owners are looking to downsize and live closer to work in order to cut costs and gas expenses. This may mean that more development and revitalization will occur in the downtown core areas of cities.

Values in these core areas will represent opportunity for builder/investors, while homes on the outskirts of town may be present opportunity for retirees and vacation properties.

Info for this blog was partially referenced from an article by Shannon Behnken at the Tampa Tribune, posted on Floridarealtors.org

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Gulf Access for less than 100K? Yes in North Fort Myers!

Sandi Davidson (Florida's Realty LLC) — Mon, 20 Jun 2011 13:12:18 -0700

Is it possible to purchase gulf access property for less than $100,000? Why yes it is. In Fort Myers and North Fort Myers there are several single family properties available that represent an amazing value for avid boaters wanting to take advantage of the fishing and boating opportunities that SW Florida has to offer.

For buyers wanting to take advantage of the reduced prices forced by foreclosures, values in waterfront property still exist. Buyers with time and patience can take advantage of the pre-foreclosure prices that distressed sellers are offering.

Great Deals can also be found across the bridge in Cape Coral where the quaint and established Cape Coral Yacht Club area has terrific values in smaller Florida Style homes, surrounded by luxury mansions.

How would you like to wake up to a view like this for less than 100K?

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Foreclosures continue to be an opportunity for buyers in SW Florida.

Sandi Davidson (Florida's Realty LLC) — Sun, 19 Jun 2011 18:41:40 -0700

Foreclosures in SW Florida continue to be a buyer's opportunity. Buyers can save thousands in the purchase of distressed properties. A recent study revealed that foreclosure properties sell an average of 27% less than other similar properties on the market. Owner/Occupants and real estate investors are taking advantage of this opportunity by gaining access to foreclosure lists before they hit the market. Our team of licensed Florida professionals specializes in selling houses that represent a significant cost savings to our buyers in the Lee County areas of Cape Coral, Fort Myers and Lehigh Acres.

For a list of foreclosed properties available visit here.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Mortgage Rates on the Rise?

Sandi Davidson (Florida's Realty LLC) — Sun, 19 Jun 2011 16:47:55 -0700

I never like to be reactionary to the latest news, however because mortgage rates have been in a steady decline in recent times I do consider it noteworthy that they are currently on the rise.

Per Bankrate, mortgage rates increased this week, following a nine-week streak of declines. The benchmark conforming 30-year fixed mortgage rate is now 4.71%, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.41 discount and origination points.

The average 15-year fixed mortgage jumped up to 3.86% and the larger jumbo 30-year fixed rate ticked up to 5.20%. Adjustable-rate mortgages were higher also, with the average 5-year ARM rising to 3.40% and the 7-year ARM climbing to 3.63%.

Following nine straight weeks of declines, this week's increase puts mortgage rates back to where they were the last week in May. The turnaround wasn't spurred by economic news that was any better. It just wasn't any worse. Further, the release of producer and consumer price measures for the month of May show inflation isn't going away despite lower commodity prices. This is likely to put a floor under mortgage rates, pending any evidence of continued economic weakening.

The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.71%, the monthly payment for the same size loan would be $1,038.48, a difference of $203 per month for anyone refinancing now.

This is not meant to be an indicator that rates will continue to rise, however if you are considering investing in Florida real estate, in Ft Myers, Cape Coral or Lehigh Acres the opportune time may be now.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Dog Beach in Bonita Springs

Sandi Davidson (Florida's Realty LLC) — Tue, 14 Jun 2011 18:14:34 -0700

A client of mine recently commented that she didn't understand Florida laws that didn't allow dogs on beaches. Lee County Florida has accomodated dog owners by opening one area of beach to dogs off leash locally known as Dog Beach

Dog Beach also known as the Lee Country Off-Leash Dog Area in Bonita Springs is one of the only “pets permitted” public beaches. It is located north of Bonita Beach Road. It’s only a few miles south of Fort Myers Beach.

Open dawn to dusk, Dog Beach is more like a sandbar extending into the gulf. The size of the beach varies with the tide and water level, recommendations are to go there low tide. Pet owners are responsible to control their pets and pick up aftr them. To see rules for Bonita Springs Dog Beach visit HERE.

Available onsite are: Parking, plastic bags and dog waste disposal stations. The park was opened in 2002 by Lee County as a permanent off-leash park. It is maintained by a group of volunteers calling themselves SOODA (Save Our Off Leash Dog Area). SOODA welcome additional volunteers...visit their website for more info: SOODA

The park can be reached by both boat and car, Parking is free. Waste bags and doggy waste disposal stations are provided.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!

Drop the Cliche

Sandi Davidson (Florida's Realty LLC) — Tue, 14 Jun 2011 17:47:34 -0700

Savvyinternet marketers know that it takes a connection with the consumer to sell product. They suggest that many real estate agents are sticking with a handful of bad photographs and a few lines of cliche copy to sell your home. "With a little TLC this charming diamond in the rough could be your dream home"..sound familiar?

With the majority of Buyers finding their homes online an agent's marketing strategy needs to help your home shine, no matter what the condition.

Remember mom's saying "If you don't have something good to say, don't say anything at all?". This advice holds true to a degree. We are not going to not say anything at all but we are going to focus on the most important feature of your house first.

By bringing personality to the listing we are bringing the "HOME" back into your "HOUSE". The top feature becomes the initial focus of the listing "A Master bedroom to DIE for", "A sparkling pool screaming for Summer BBQ's", "The best garden on the block", "Owned by the former Creative Director of Lilly Pulitzer" (ok that was my old home...but it worked..the buyer was a huge fan of Lilly Pulitzer). Maybe your house has seen better days...let's discuss it in terms of value. Local agents know the value of the property.

Another way to engage the buyer is to speak of the home's style. I am a fan of two distinct styles: Spanish, and Contemporary. People often want to search for a home that speaks to their style and personality. Modern, Contemporary, Classic, Mid Century, and so on...help the buyer find the house that fits their personality.

Show what is most important to the buyer, with quality photographs and creative descriptions. Every home has value, regardless of it's condition, don't down play the value by highlighting what is wrong. Engage the consumer by showcasing the current value and hidden potential.

Sandi Davidson, Realtor®

Florida's Realty LLC

(239) 674-7307

www.sandisellsflorida.com

Ask me how to get multiple offers on your home in less than 5 Days!!