Archive for the 'General RE Info' Category
How is Weston’s Real Estate Market Doing?
August 30th, 2010 categories: General RE Info, Market Update
It Depends on Where and the Price Point you are looking at!
Unless you have been living in a Bubble or too Busy getting your kids back to school you have heard terrible news about the economy and the housing Market.I understand that the only way to look at trends is with bulk numbers but when you hear the news you have to make sure you take a closer look before getting anxious.
It’s true the Real Estate Market is very sensitive to perceptions but numbers don’t lie and you have to look at the Sub-Markets and draw your own conclusions…
This Graph represents the behavior of the Single Family Home Market of properties priced Under 500K. Invetories have increased a little and closed sales decreased. As you can see closed sales have erratically moved in the last 15 months but except from the months prior to the two tax credit expiration deadlines pending sales have been trending up.
One of the numbers we follow closely, more than increase or decrease of units sold, to determine how healthy is the market would be is the relationship between homes for sale and homes pending/sold. Based on this criteria in the last 15 months Weston has been swinging between a balanced market and a seller’s market with less than 6 months of Inventory. You can ask anyone who has been in the market buying properties in Weston under $500,000 how many times they competed against other offers.
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Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property call me at (954) 588-7260 or contact me
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Short Sales vs. Strategic Defaults
July 11th, 2010 categories: Foreclosures, General RE Info, Tips for Sellers, short sales
The Financial Conundrum
I have been very concerned for the last couple of years with the long term effect of Short Sales and Strategic Defaults. Sometimes selling a property as a short sale is the only option but what about strategic defaults?
Each person’s circumstances are different and you should do what makes you feel more comfortable. I am an advocate to try a loan modification first even though in many cases they are just a way to push forward a financial problem. It may not be the wisest “financial decision” but I think it buys time to work out the problem when the waters have calmed down. Unless there is a reduction of principal the only way to work out the loans is to create a balloon payment; which means at the end of the loan period or upon selling the property a lump sum has to be paid. If someone stays in the property long enough there should be enough equity to pay for it. If it has to be sold anytime in the first years of the loan most likely it will become a short sale but the borrower’s financial situation and the lenders circumstances will be different and you can deal with it then. I am not a financial advisor and I don’t pretend to be one…I know it is a controversial opinion but I think in the long run it will benefit everyone.
I understand trends are important and many people feel that if everyone is doing it, it may be right. I wish I had a crystal ball and be able to see the future as of what will happen in 5-10 years to all the short sales and foreclosures deficiency judgments. For now just make sure you research and understand what you are getting into. Do your homework, talk to at least 3 attorneys and hear different points of view.
I am sharing an article from Current Matters that refers to this topic…
I recently had an email conversation with a well respected real estate professional about the difference between strategic defaults and short sales. We both agreed that we needed to share our conversation with the readers of this blog. Original Question: I have
via A Conversation on Short Sales vs. Strategic Defaults.
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Landlord and Tenant Relationship in Florida – Common Pitfalls III
July 6th, 2010 categories: General RE Info, Market Update, Rentals
Walk-Thru, Late Payments and Deposits
Walk-Thru:
Not documenting Property’s Conditions. Before the Tenant moves in, it is important to both parties to put in writing with as much detail as possible the conditions of the property. This document will be the only defense the Tenant will have if there is a claim of the deposit or the proof a Landlord will have that the damage was caused by the Tenant. I normally take pictures of the property and get them signed by both parties.
Late Payments:
Most Leases include a clause that determines a penalty in case the payment is not received on the due date or after a grace period which normally is 5 days. Not enforcing this clause can have two “side effects”; first the Tenant doesn’t take seriously the importance on on-time payments and after doing it repeatedly the landlord may have a hard time collecting it.
Be very firm and don’t get personal … the best way to keep a healthy relationship is by setting expectations upfront and making sure the Tenant comply with the terms of the contract.
Deposits:
Many Tenants try to convince Landlords to “live the deposit” and not pay the last month. Even though the relationship was great and the property seems to be in great shape it’s advisable to keep the deposit until the tenant vacates the property. If there is a problem the Landlord would have no money for repairs or to pay for them.
The Landlord and Tenant Act has very strict rules on how Security Deposits and Advanced Rents must be kept until due. The Landlord should notify Tenant in writing how the deposit will be kept. If Landlord will keep the deposit the tenant MUST be notified in writing. Please refer to the Landlord and Tenant Act for more details.
Business is Business and Landlord and Tenants relationships should be kept as a commercial transaction with no emotions attached.
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New Law will Protect Condo Association if Owner Defaults
June 30th, 2010 categories: General RE Info, Rentals
Hundreds of New Laws will take in effect Tomorrow July 1st.
As we have seen happening over the last few years many Landlords collect rent but don’t pay Condo Associations. This new Law grants them the right to collect the dues directly from the Tenants or they can be evicted.
It is a great resource for Associations as a way to protect other homeowners from being responsible to pay Special Assessments to cover pass due fees.
As read in the Sun-Sentinel Article:
“Condo renters (SB 1196):
Changes: Homeowners associations can evict a renter if their landlord isn’t paying the condo or association fees.
Impact: Many condo owners, particularly investment owners, are in foreclosure and not paying association fees, but still collecting rent checks from their tenants. This law could put renters on the hook to pay the fees or face eviction.”
If you are interested in renting or listing for rent Real Estate in WESTON, please call me at (954) 588-7260 or contact me.
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Landlord and Tenant Relationship in Florida – Common Pitfalls I
June 22nd, 2010 categories: General RE Info
Landlord and Tenant Act
As stated in their web site “The Division of Consumer Services is the state’s clearinghouse for consumer complaints, protection and information…” and in accordance with it’s mission it has a great publication describing in plain English the rights and responsibilities of a Landlord/Tenant Relationship.
Almost everyone by now takes good care of having signed leases before rental tenancies start. Even though most of the times the terms are negotiated upfront, you have to be very careful and think of “what if scenarios” before having a final lease signed.
Common Pitfalls:
-Tenant was accepted without proper due diligence:
Finding out about a tenant’s credit history, past evictions, criminal background is like playing lottery without even buying a ticket. I am not saying that by doing so you are 100% protected but at least you know something about your partner in paying the mortgage. Some tenants don’t understand that a landlord may be jeopardizing it’s own credit when they don’t pay on time. I have seen hundreds of credit reports in my years in real estate and I can tell you that you find two kinds of bad credit: the one due to an specific circumstance (loss of job, sickness, etc…) and some with a consistent history of bad financial decisions. I don’t say someone with bad credit shouldn’t be accepted because, it is about taking preventive actions like collecting additional deposits, requesting cosigners,…
Going even further…what happens if you allow to move into your property someone with serious criminal background? What about a sex offender moves in and your home is next to a school’s bus stop. Or, what about a house rented to a drug dealer that is torn apart by the DEA searching for drugs hidden within the walls. Should I say anything else???
One of the big complaints we get from tenants is when they have to be run by an association too, an additional cost that seems to be for the same purpose. Actually even though it has the same process the problem is that associations don’t share with Landlord’s their findings and normally they reject tenants only based in criminal background. There are just a few associations that are very strict about credit. So, how can a property owner make an informed decision on the tenant?
If a Tenant doesn’t understand the need of screenings previous to moving into a property or refuses to be screened I would run in another direction. Money can be an issue, but in this case saving less that $100 can cost thousand of dollars.
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Trulia’s Real Estate Index Rent vs Buy Ratio
June 15th, 2010 categories: General RE Info, Market Update, Tips For Buyers
If you are Renting consider Buying!
As we all know Real Estate prices are very attractive and Mortgage Interest Rates are at historically low rates.
The Real Estate Site Trulia published an interesting article about what is a better financial move… Should we Rent? Should we Buy? As per the study that included many several cities in USA including Miami; in Miami, Fl the Price vs Rent Ratio is 8.
“Price-to-Rent Ratio of 1-15: It is much less expensive to own than to rent a home in this city”
www.trulia.com
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Are Properties in South Florida Undervalued?
March 30th, 2010 categories: General RE Info, Great Deals, Market Update, Tips For Buyers
Miami and Fort Lauderdale Metro Area Report
As I was reading this article in the South Florida Business Journal Biz I started to play with numbers assuming two What if? scenarios… The article is based on a report prepared by IHS Global Insight and PNC Financial services Group released in March 2010 up to the 4th Quarter of 2009. The study comprises 330 Metro areas including Miami and Fort Lauderdale Metro Areas.
In the Summary they conclude:
- “Two years of relentless house price depreciation finally ended in the Summer of 2009. (…)”
- “We ended 2009 with no extremely overvalued metros, (…)”
- “For the Country as a whole, the housing market is now slightly undervalued. (…)”
Miami Metro Area:
2005 Q4 Price: $ 281,300 Overvaluation 49.4
2009 Q4 Price; $ 180,500 Overvaluation -15.6 (undervalued)
Fort Lauderdale Metro Area:
2005 Q4 Price: $ 259,400 Overvaluation 41.9
2009 Q4 Price; $ 146.600 Overvaluation -24.0 (undervalued)
Average Sold Price* for Miami and Fort Lauderdale Metro Areas: What if?
Based on average sold price I made calculations assuming the potential price increase that could have occurred if the real estate market had performed as expected (approx. 5% annual increases) or assuming properties would increase in price based on the average Inflation rate of the last 10 years (approx. 2.57%). If we take into consideration the projection based on a 5% annual increase in both Metro Areas the actual median price is below the projected price. If we compare it with a projected 2.57% annual increase in Dade the values are very close and in Broward the actual Average sold Price is significantly below the projection.
If we compare the data provided by the IHS Report and the data obtained from the MLS (trendgraphix), we can conclude that even though at some point prices in Dade were more overvalued than in Broward today we may say that Broward’s properties could be a better deal!
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Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property call me at (954) 588-7260 or contact me.
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I Leased a Property and It Is Being Sold as a Short Sale or Foreclosed…What should I do?
March 23rd, 2010 categories: General RE Info, Rentals, Tips for Sellers, short sales
- Image by Getty Images via Daylife
The Answer is: Consult an Attorney…
From several conversations with attorneys I have gathered the following information. You particular circumstances may differ so please do your due diligence before making any decision.
Is the Property being sold as a Short Sale or being Foreclosed?
If the Property is being sold as a Short Sale and the Lease is current the new owner must honor the lease term. Very often, by the time the Short Sale is approved, the original lease has expired and the tenant is living in the property with on a month to month lease. Beware of oral agreement since they are harder to enforce than written contracts. In some cases the Tenant lives in the property until the amount given as advanced rent and security deposit is exhausted. It is advised to have a written agreement with the owner because the owner’s default in paying his mortgage doesn’t give the tenant the right to default in his rental payments. One of the most common complaints from tenants when they keep paying their rent is either the lack of maintenance to the property. Attorneys always advice their clients to keep paying the Association/Condo dues while the Short Sale is being processed.
A good landlord/tenant relationship is key to ensure a smooth transition. Being it to grant access to prospective buyers and be able to commit with a closing date or transferring the lease to the new buyer.
If the Property is Foreclosed the new owner has the right to request the Tenant to vacate the property. Tenant is normally aware that a foreclosure is taking place well in advance. The new owner can provide the Tenant with a “3 Day Notice” and if the tenant doesn’t leave most likely an eviction will take place. Under some circumstances the new owner offers incentives to ensure the property is left in good conditions and the tenant vacates without the need of being evicted.
If the Property is a Fannie Mae Foreclosure you may get some Help!
Some Qualified renters may be offered month to month Leases and even help to relocate. For additional information:
Fannie Mae Support for Renters
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Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property call me at (954) 588-7260 or contact me.
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Weston Short Sales Market Update-Single Family Homes
March 10th, 2010 categories: General RE Info, Market Update, short sales
Weston Short Sale Inventory is Leveled
Weston Single Family Homes Short Sales available for Sale have been decreasing by a couple of points as time goes by. It’s not a significant number but the good news is that the percentage has not increased.
Regarding Short Sale Properties there are Pending Sales input as under contract as far back as April 2008. We never know if the information is totally accurate because not always the information is updated in the MLS in a timely manner as it should.
There are as of Today 8 Active Short Sale Listings in the MLS over $1,000,000.
Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property contact me.
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Weston Single Family Homes Sold in Weston on February 2010
March 10th, 2010 categories: General RE Info, Market Update
There were 37 Closed Sales in Weston during the month of February, 2010.
Of those Sales:
15 were paid Cash (40.5%)
5 FHA Financed (13.5%)
17 Conventional Loans (46%)
The number of cash transactions is still very high and competing against cash buyers when presenting offers may be challenging. On the other hand it’s encouraging to see that some FHA’s went through.
Almost 70% of the sales were regular sales and 30% of the sales were distressed sales (5 short sales and 6 Foreclosures/REO’s).
Thinking of selling your home? Now might be a good time to put it on the market when the inventory of great properties for sale is low. For a FREE market analysis of your property contact me.
To stay updated with what’s going on in Weston and receive my blog posts directly to your inbox subscribe here.
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