Don't believe all the scary hype in the Media
(May 31, 2006) -- Home owners who took out adjustable-rate mortgages are facing big payment increases. But refinancing may not be the best solution, experts say.
ARMs made up 42 percent of all new home mortgages in 2005, up from 14 percent in 2003, according to LoanPerformance, a San Francisco-based research outfit.
As one example of how payments have increased, the starting rate on a 3/1 ARM — a loan with a fixed rate for three years — has risen to 6.17 percent from 3.80 percent in 2003. That translates into a $220-per-month increase.
But before they refinance to lower their payments, ARM borrowers should consider standing pat. If the annual adjustment is capped at 2 percent, the rate will rise to 5.8 percent in the first year — that's less than a 30-year fixed rate right now.
Plus, refinancing costs are high, says Keith Gumbinger, vice president of HSH Associates, which tracks the mortgage industry.And by the time another year rolls around, rates could go back down.
Gumbinger is among those who believe the Fed’s next move will be to push rates back down to jumpstart a slowing economy.
Source: SmartMoney, Reshma Kapadia (06/01/2006)
Wednesday, May 31, 2006
Tuesday, May 30, 2006
IS IT A BUYER"S MARKET?
Sarasota Housing Market Struggles
March 2005 compared to March 2006
Realtors Sold 45% fewer homes in March 2006 than in March 2005
Sarasota's 22% decline in closings was the highest in Florida
Values rose 5% in Florida but Sarasota-Bradenton's $321,400 median sales price showed a 6% decline from $340,667
Median price is the price where half the homes sold for more and half the homes sold for less. People buy as much home as they can afford so someone buying a $400,000 home today will land more home than they would have last year. Actual prices may have declined 10-20% over the past year.
Conclusion:With the current huge inventory of homes and rise in interest rates it's naturally going to take longer to sell and the price you are going to get may not be the one you envisioned.
March 2005 compared to March 2006
Realtors Sold 45% fewer homes in March 2006 than in March 2005
Sarasota's 22% decline in closings was the highest in Florida
Values rose 5% in Florida but Sarasota-Bradenton's $321,400 median sales price showed a 6% decline from $340,667
Median price is the price where half the homes sold for more and half the homes sold for less. People buy as much home as they can afford so someone buying a $400,000 home today will land more home than they would have last year. Actual prices may have declined 10-20% over the past year.
Conclusion:With the current huge inventory of homes and rise in interest rates it's naturally going to take longer to sell and the price you are going to get may not be the one you envisioned.
People are Talking about Rob & Linda
Another Testimonial
We certainly chose the right realtors to sell our property at Botanica. Your combined experience and expertise contributed to a successful and smooth sales experience. Thank you for helping us through a most difficult time of our lives.
Best regards,
Marian and Boots Campbell
Thursday, May 25, 2006
ELVIS HOME SELLS ON EBAY
Celebrity Psychic Wins Bid for Elvis House
Celebrity psychic Uri Geller was the winning bidder for a Memphis house where Elvis Presley had lived just as his career was taking off.
Geller says he knew his bid of $905,100 was a winner last week just as the eBay auction closed because the radio began playing “Love me Tender.”
Geller, an Israeli who lives outside London, is buying the house with two partners: Peter Gleason, a New York attorney and retired firefighter, and Lisbeth Silvandersson, a jewelry maker who lives in England.
They plan to restore the four-bedroom home to its original splendor and bring sick children from Palestine, Israel, and America to see it. They hope to eventually turn it into a museum.
When Presley lived in the home, he appeared on the Ed Sullivan show, starred in "Love Me Tender," bought his pink Cadillac, and posed in his gold lame suit.
Celebrity psychic Uri Geller was the winning bidder for a Memphis house where Elvis Presley had lived just as his career was taking off.
Geller says he knew his bid of $905,100 was a winner last week just as the eBay auction closed because the radio began playing “Love me Tender.”
Geller, an Israeli who lives outside London, is buying the house with two partners: Peter Gleason, a New York attorney and retired firefighter, and Lisbeth Silvandersson, a jewelry maker who lives in England.
They plan to restore the four-bedroom home to its original splendor and bring sick children from Palestine, Israel, and America to see it. They hope to eventually turn it into a museum.
When Presley lived in the home, he appeared on the Ed Sullivan show, starred in "Love Me Tender," bought his pink Cadillac, and posed in his gold lame suit.
Wednesday, May 24, 2006
PEOPLE ARE TALKING ABOUT ROB & LINDA
Testimonial
Now that our lives have settled down a bit thought it was time to send a long overdue message!
Just wanted you both to know how much we appreciated all your council and the above and beyond service you gave us in selling our Botanica house.......we have sold a lot of real estate in Florida, but never received "your" kind of service. Thanks, should we buy again you'll get another call!
Carolyn and Dick Chudik
IS IT A BUYER'S MARKET?
MLS REAL ESTATE STATISTICS
For the first three weeks of May 2006
............................SARASOTA.....PALMER RANCH
NEW LISTINGS..............1343...................76
SALE PENDING................588...................35
PRICE CHANGE.............1597..................137
EXPIRED........................627.....................41
SOLD.............................344.....................23
For the first three weeks of May 2006
............................SARASOTA.....PALMER RANCH
NEW LISTINGS..............1343...................76
SALE PENDING................588...................35
PRICE CHANGE.............1597..................137
EXPIRED........................627.....................41
SOLD.............................344.....................23
Monday, May 22, 2006
1031 EXCHANGES
WHAT IS A §1031 EXCHANGE?
Ask your Exchanger about the possibility of a 1031 exchange on your second home or Vacation Property
Thanks to IRC §1031, a properly structured exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC §1031 (a)(1) states:
"No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment."
To understand the powerful protection an exchange offers, consider the following example:
An investor has a $200,000 capital gain and incurs a tax liability of approximately $70,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $130,000 remains to reinvest in another property.
Assuming a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a $520,000 new property.
If the same investor chose to exchange, however, he or she would be able to reinvest the entire $200,000 of equity in the purchase of $800,000 in real estate, assuming the same down payment and loan-to-value ratios.
As the above example demonstrates, exchanges protect investors from capital gain taxes as well as facilitating significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is crucial to have a comprehensive knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term like-kind - often mistakenly thought to mean the same exact types of property - can reveal possibilities that might have been dismissed or overlooked. Obtain accurate and thorough information about the entire exchange process.
Ask your Exchanger about the possibility of a 1031 exchange on your second home or Vacation Property
Thanks to IRC §1031, a properly structured exchange allows an investor to sell a property, to reinvest the proceeds in a new property and to defer all capital gain taxes. IRC §1031 (a)(1) states:
"No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment."
To understand the powerful protection an exchange offers, consider the following example:
An investor has a $200,000 capital gain and incurs a tax liability of approximately $70,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $130,000 remains to reinvest in another property.
Assuming a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a $520,000 new property.
If the same investor chose to exchange, however, he or she would be able to reinvest the entire $200,000 of equity in the purchase of $800,000 in real estate, assuming the same down payment and loan-to-value ratios.
As the above example demonstrates, exchanges protect investors from capital gain taxes as well as facilitating significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is crucial to have a comprehensive knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term like-kind - often mistakenly thought to mean the same exact types of property - can reveal possibilities that might have been dismissed or overlooked. Obtain accurate and thorough information about the entire exchange process.
WHY HAVE SELLER FINANCING
More Sellers Holding Mortgages for Buyers
(May 22, 2006) -- Seller-held financing, known as take-back or owner-carry loans, are back.
This time it’s not because they help sellers afford homes in a high interest-rate environment, as they did in the 1980s, when 40 percent of all home sales used seller financing.
This time, it’s because take-back loans allow the seller to spread out the gain over a longer period and avoid paying a large capital gains bill on profits over $250,000 for an individual or $500,000 for a married couple.
"Any time you do a carry back, you're sheltering that principal amount from taxes until the year it's paid," Ratzlaff said. "You avoid some capital-gains tax by spreading it out."
It's an option most likely to appeal to retirees or people who have paid off their mortgages and want to receive steady income. If the current mortgage rate is 6.5 percent, the sellers could carry back at 6 percent – better than what they could earn at a bank.
Buyers also can benefit by getting financing at a lower rate without spending money for appraisals, fees and points.
Experts suggest having the seller-financing contract serviced by an agency that for a monthly fee will manage a seller's bookkeeping, tax records and late notices.
(May 22, 2006) -- Seller-held financing, known as take-back or owner-carry loans, are back.
This time it’s not because they help sellers afford homes in a high interest-rate environment, as they did in the 1980s, when 40 percent of all home sales used seller financing.
This time, it’s because take-back loans allow the seller to spread out the gain over a longer period and avoid paying a large capital gains bill on profits over $250,000 for an individual or $500,000 for a married couple.
"Any time you do a carry back, you're sheltering that principal amount from taxes until the year it's paid," Ratzlaff said. "You avoid some capital-gains tax by spreading it out."
It's an option most likely to appeal to retirees or people who have paid off their mortgages and want to receive steady income. If the current mortgage rate is 6.5 percent, the sellers could carry back at 6 percent – better than what they could earn at a bank.
Buyers also can benefit by getting financing at a lower rate without spending money for appraisals, fees and points.
Experts suggest having the seller-financing contract serviced by an agency that for a monthly fee will manage a seller's bookkeeping, tax records and late notices.
Friday, May 19, 2006
PROTECT YOUR CREDIT
BAD THINGS CAN HAPPEN TO GOOD PEOPLE...AN ATTORNEYS ADVICE
1. The next time you order checks have only your initials (instead of first name) and last name put on them. If someone takes your checkbook, they will not know if you sign your checks with just your initials or your first name, but your bank will know how you sign your checks.
2. Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED."
3. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check-processing channels will not have access to it.
4. Put your work phone # on your checks instead of your home phone. If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks, (DUH!). You can add it if it is necessary. However, if you have it printed, anyone can get it.
5. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. Also carry a photocopy of your passport when traveling either here or abroad. We have all heard horror stories about fraud that is committed on us in stealing a name, address, Social Security number, credit cards.
6. When you check out of a hotel that uses cards for! keys (and they all seem to do that now), do not turn the "keys" in. Take them with you and destroy them. Those little cards have on them all of the information you gave the hotel, including address and credit card numbers and expiration dates. Someone with a card reader, or employee of the hotel, can access all that information with no problem whatsoever.
Unfortunately, as an attorney, I have first hand knowledge because my wallet was stolen last month. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer and received a PIN number from DMV to change my driving record information online. Here is some critical information to limit the damage in case this happens to you or someone you know:
1. We have been told we should cancel our credit cards immediately. The key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
2. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one). However, here is what is perhaps most important of all (I never even thought to do this.)
3. Call the three national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit. By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases,! none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks.
Now, here are the numbers you always need to contact about your wallet and contents being stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) TransUnion: 1-800-680-7289
4.) Social Security Administration (fraud line): 1-800-269-0271
We pass along jokes on the Internet; we pass along just about everything.
Nevertheless, if you are willing to pass this information along, it could really help someone about who you care.
1. The next time you order checks have only your initials (instead of first name) and last name put on them. If someone takes your checkbook, they will not know if you sign your checks with just your initials or your first name, but your bank will know how you sign your checks.
2. Do not sign the back of your credit cards. Instead, put "PHOTO ID REQUIRED."
3. When you are writing checks to pay on your credit card accounts, DO NOT put the complete account number on the "For" line. Instead, just put the last four numbers. The credit card company knows the rest of the number, and anyone who might be handling your check as it passes through all the check-processing channels will not have access to it.
4. Put your work phone # on your checks instead of your home phone. If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SS# printed on your checks, (DUH!). You can add it if it is necessary. However, if you have it printed, anyone can get it.
5. Place the contents of your wallet on a photocopy machine. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. Also carry a photocopy of your passport when traveling either here or abroad. We have all heard horror stories about fraud that is committed on us in stealing a name, address, Social Security number, credit cards.
6. When you check out of a hotel that uses cards for! keys (and they all seem to do that now), do not turn the "keys" in. Take them with you and destroy them. Those little cards have on them all of the information you gave the hotel, including address and credit card numbers and expiration dates. Someone with a card reader, or employee of the hotel, can access all that information with no problem whatsoever.
Unfortunately, as an attorney, I have first hand knowledge because my wallet was stolen last month. Within a week, the thieve(s) ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a Gateway computer and received a PIN number from DMV to change my driving record information online. Here is some critical information to limit the damage in case this happens to you or someone you know:
1. We have been told we should cancel our credit cards immediately. The key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
2. File a police report immediately in the jurisdiction where your credit cards, etc., were stolen. This proves to credit providers you were diligent, and this is a first step toward an investigation (if there ever is one). However, here is what is perhaps most important of all (I never even thought to do this.)
3. Call the three national credit reporting organizations immediately to place a fraud alert on your name and Social Security number. I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen, and they have to contact you by phone to authorize new credit. By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases,! none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away this weekend (someone turned it in). It seems to have stopped them dead in their tracks.
Now, here are the numbers you always need to contact about your wallet and contents being stolen:
1.) Equifax: 1-800-525-6285
2.) Experian (formerly TRW): 1-888-397-3742
3.) TransUnion: 1-800-680-7289
4.) Social Security Administration (fraud line): 1-800-269-0271
We pass along jokes on the Internet; we pass along just about everything.
Nevertheless, if you are willing to pass this information along, it could really help someone about who you care.
REAL ESTATE DISCLOSURE
Only 30 percent of Home Buyers were given representation disclosures last year when they met with their Real Estate Professional for the first time, according to the NATIONAL ASSOCIATION OF REALTORS®, despite the fact that state law typically requires practitioners to provide such documentation at the initial meeting.
NAR also reports that close to 50 percent of first-time buyers were not given disclosures at all or had no idea whether they had received one.
Disclosures about representation are key, mainly because Buyers who unknowingly provide the Seller's Agent with information about their finances or personal situations will be at a disadvantage during pricing and negotiations. Buyers who do not receive such disclosures might pay too much for the home or be persuaded to waive contingency clauses and other protections.
Experts warn buyers that the lack of a Buyer-Agent Agreement means that the practitioner is probably representing the Seller and looking to achieve a top-dollar sale.
A Home Buyer is currently battling a pair of practitioners in court because the Buyer contends he signed a contract to purchase a home at an inflated price because the practitioner that he believed was acting on his behalf was actually the Seller's Agent. The Buyer is looking to recover his deposit and punitive damages.
NAR also reports that close to 50 percent of first-time buyers were not given disclosures at all or had no idea whether they had received one.
Disclosures about representation are key, mainly because Buyers who unknowingly provide the Seller's Agent with information about their finances or personal situations will be at a disadvantage during pricing and negotiations. Buyers who do not receive such disclosures might pay too much for the home or be persuaded to waive contingency clauses and other protections.
Experts warn buyers that the lack of a Buyer-Agent Agreement means that the practitioner is probably representing the Seller and looking to achieve a top-dollar sale.
A Home Buyer is currently battling a pair of practitioners in court because the Buyer contends he signed a contract to purchase a home at an inflated price because the practitioner that he believed was acting on his behalf was actually the Seller's Agent. The Buyer is looking to recover his deposit and punitive damages.
BOTANICA on Palmer Ranch
New Price...$556,000...available for a quick closing
The "Jasmine" 3BR/2Bath Luxury Condominium with a 2 Car Garage and Picturesque Water views from the 24 ft Lanai.
Close to the white powder sand beaches of Siesta Key and new "Rails to Trails" park
where you can walk or bike for miles.
Check out our WEBSITE ... Go to: View my complete profile ... on the left of this page under ABOUT ME.
Thursday, May 18, 2006
50 Year Mortgages
Benefits, Risks of the Half-Century Mortgage Loan
Some home buyers who can’t afford a standard 30-year mortgage, and aren't comfortable with a 40-year mortgage either, are finding a 50-year loan to be an attractive option.
While many banks offer the 40-year product — which accounts for 5 percent of loans — 50-year mortgages are harder to find, according to LoanPerformance, a real estate data firm. So far, only a few small lenders have rolled out the five-decades-long mortgages.
Statewide Bancorp in Rancho Cucamonga, Calif., has had about 220 applications since March when it began offering the 50-year term. The loans are luring cash-strapped buyers who are having a hard time coping with soaring home prices. Although 50-year mortgages come with lower monthly payments, but borrowers build equity very slowly and risk owing more than the home is worth.
Also, because rates on the loans are adjustable, monthly payments could rise over time. Still, observers say, the 50-year mortgages are less risky than interest-only or option mortgages.
Some home buyers who can’t afford a standard 30-year mortgage, and aren't comfortable with a 40-year mortgage either, are finding a 50-year loan to be an attractive option.
While many banks offer the 40-year product — which accounts for 5 percent of loans — 50-year mortgages are harder to find, according to LoanPerformance, a real estate data firm. So far, only a few small lenders have rolled out the five-decades-long mortgages.
Statewide Bancorp in Rancho Cucamonga, Calif., has had about 220 applications since March when it began offering the 50-year term. The loans are luring cash-strapped buyers who are having a hard time coping with soaring home prices. Although 50-year mortgages come with lower monthly payments, but borrowers build equity very slowly and risk owing more than the home is worth.
Also, because rates on the loans are adjustable, monthly payments could rise over time. Still, observers say, the 50-year mortgages are less risky than interest-only or option mortgages.
Hispanics Move Up List of American Home Buyers
Home buyers with names such as Rodriguez, Garcia and Hernandez bumped Brown, Miller and Davis down the list of most common buyers' names in 2005, reflecting Hispanics' rapid advance into the middle class.
A DataQuick Information Systems analysis of deeds and county assessment data shows a dramatic rise in the number of Hispanic and Asian home buyers since 2000.
Smith and Johnson remain the two most popular, but Rodriguez has replaced Brown in third place. Four Hispanic names are in the top 10, compared with two in 2000. advertisement
Hispanic surnames made up 14.6 percent of all home buyers' names, up from 10.3 percent five years earlier.
"The Latino population is really integrating into the middle class - and rapidly," said John Karevoll, analyst at DataQuick, a San Diego real estate information company that scoured public records in 38 states that accounted for 93 percent of the nation's real estate activity.
Asians also are bigger players. Nguyen, a common Vietnamese name, moved from 23rd to 14th.
In California, almost 28 percent of home buyers are Hispanic and the five most common surnames are Hispanic. Only one was in the top five in 2000.
The changes are dramatic elsewhere, too. No Hispanic names appeared in the top five in Illinois in 2000. Now, Garcia is third and Rodriguez fifth. Nevada went from zero to three and New Jersey from one to three.
"It's startling how rapid the changes are," said Dowell Myers, a University of Southern California housing demographer. "People assume that Latinos are poor and that they're not a factor in homeownership. They're really integrating economically."
The rate of homeownership among the nation's 42.7 million Hispanics hit a record 50 percent in the last quarter of 2005, according to the department of Housing and Urban Development. Low interest rates and flexible lending rules contributed to the spike. Twenty-five years ago, lenders would not even consider a spouse's income when evaluating a home loan, Karevoll said. Now, various relatives can qualify by pooling their earnings.
Hispanics are likely to make up 40 percent of first-time home buyers over the next 20 years, according to the Harvard Joint Center for Housing Studies.
A DataQuick Information Systems analysis of deeds and county assessment data shows a dramatic rise in the number of Hispanic and Asian home buyers since 2000.
Smith and Johnson remain the two most popular, but Rodriguez has replaced Brown in third place. Four Hispanic names are in the top 10, compared with two in 2000. advertisement
Hispanic surnames made up 14.6 percent of all home buyers' names, up from 10.3 percent five years earlier.
"The Latino population is really integrating into the middle class - and rapidly," said John Karevoll, analyst at DataQuick, a San Diego real estate information company that scoured public records in 38 states that accounted for 93 percent of the nation's real estate activity.
Asians also are bigger players. Nguyen, a common Vietnamese name, moved from 23rd to 14th.
In California, almost 28 percent of home buyers are Hispanic and the five most common surnames are Hispanic. Only one was in the top five in 2000.
The changes are dramatic elsewhere, too. No Hispanic names appeared in the top five in Illinois in 2000. Now, Garcia is third and Rodriguez fifth. Nevada went from zero to three and New Jersey from one to three.
"It's startling how rapid the changes are," said Dowell Myers, a University of Southern California housing demographer. "People assume that Latinos are poor and that they're not a factor in homeownership. They're really integrating economically."
The rate of homeownership among the nation's 42.7 million Hispanics hit a record 50 percent in the last quarter of 2005, according to the department of Housing and Urban Development. Low interest rates and flexible lending rules contributed to the spike. Twenty-five years ago, lenders would not even consider a spouse's income when evaluating a home loan, Karevoll said. Now, various relatives can qualify by pooling their earnings.
Hispanics are likely to make up 40 percent of first-time home buyers over the next 20 years, according to the Harvard Joint Center for Housing Studies.
Cooler Home Sales Ushers in it's own Lexicon
It helps to have a decoder ring when you read today’s real estate ads –
Newly spruced up to wow buyers in a tightening market. Here are some definitions:
Old World Elegance. The word luxury is so 2005.
Estate Condition. This means it's a wreck – but you can buy it for less than if it weren't.
New Price. The seller dropped the asking price, but doesn't want to put it bluntly.
Price Reduced to Sell: Sometimes the direct approach works.
Dripping with Charm. Better than saying the faucets leak.
Mint. If you like the seller’s taste, you won’t have to do a thing.
Cook's Kitchen or Chef's Kitchen. Bigger than the usual galley kitchen.
Intimate: The new euphemism for small.
Grand. It suggests glamorous things like sweeping staircases in duplexes -- and sweeping prices to match.
Newly spruced up to wow buyers in a tightening market. Here are some definitions:
Old World Elegance. The word luxury is so 2005.
Estate Condition. This means it's a wreck – but you can buy it for less than if it weren't.
New Price. The seller dropped the asking price, but doesn't want to put it bluntly.
Price Reduced to Sell: Sometimes the direct approach works.
Dripping with Charm. Better than saying the faucets leak.
Mint. If you like the seller’s taste, you won’t have to do a thing.
Cook's Kitchen or Chef's Kitchen. Bigger than the usual galley kitchen.
Intimate: The new euphemism for small.
Grand. It suggests glamorous things like sweeping staircases in duplexes -- and sweeping prices to match.
Thursday, May 11, 2006
Who Spends More on Housing ??
WASHINGTON -- May 11, 2006 -- A recent survey of homebuyers in three generations -- Gen Y (those born between 1979 and 1994), Gen X (born between 1965 and 1978), and baby boomers (born between 1946 and 1965) -- show that the two younger generations are outspending boomers in their first home purchase.
Both of the younger generations also devote a larger portion of their salaries to housing costs, according to the survey. The goal of the survey was to understand and compare the experiences of the first-home purchase among members of three different generations.
Unlike boomers who purchased their first homes in response to life events such as a marriage or birth, financial incentives motivate both Gen X and Gen Y buyers with investment value cited as the “key driver” by the Century 21 survey with 42 percent of Gen X respondents and 39 percent of Gen Y respondents citing a “safe investment” as the reason for purchase.
A similar business-like approach is applied to the home search and purchase. “These guys don’t get caught up in the process. They’re very bottom-line oriented and results oriented.” said a former NAR chief economist.
“Don’t expect them to fall in love with the property,” he cautions. “What matters is whether the house works for them and whether it’s a good deal.”
“Real estate professionals shouldn’t only get to know this group, they should also begin to look at their own materials, particularly Web sites, from the perspective of this demographic,” he says.
A higher proportion of younger buyers use the Internet. For Gen Y it ranked as the primary source of home shopping information according to the survey. Experts say that being able to remain anonymous while they gather information is a top criterion for younger buyers.
Less relationship-oriented than boomers, younger buyers are also more likely than boomers to say “next” if a salesperson doesn’t meet their expectations. However, “They will be loyal if you work the way they want.”
Both of the younger generations also devote a larger portion of their salaries to housing costs, according to the survey. The goal of the survey was to understand and compare the experiences of the first-home purchase among members of three different generations.
Unlike boomers who purchased their first homes in response to life events such as a marriage or birth, financial incentives motivate both Gen X and Gen Y buyers with investment value cited as the “key driver” by the Century 21 survey with 42 percent of Gen X respondents and 39 percent of Gen Y respondents citing a “safe investment” as the reason for purchase.
A similar business-like approach is applied to the home search and purchase. “These guys don’t get caught up in the process. They’re very bottom-line oriented and results oriented.” said a former NAR chief economist.
“Don’t expect them to fall in love with the property,” he cautions. “What matters is whether the house works for them and whether it’s a good deal.”
“Real estate professionals shouldn’t only get to know this group, they should also begin to look at their own materials, particularly Web sites, from the perspective of this demographic,” he says.
A higher proportion of younger buyers use the Internet. For Gen Y it ranked as the primary source of home shopping information according to the survey. Experts say that being able to remain anonymous while they gather information is a top criterion for younger buyers.
Less relationship-oriented than boomers, younger buyers are also more likely than boomers to say “next” if a salesperson doesn’t meet their expectations. However, “They will be loyal if you work the way they want.”
Exceptional Service...Fair Commission
Discount Real Estate Brokers: Get what you pay for?
You've worked hard for the money -- the equity in your house, that is, and now that you've decided to sell you're reluctant to give a traditional real estate broker a whopping 6 or 7 percent commission for bringing you a buyer.
The good news is you don't have to. You have options, and one of them is to sign on with a Full Service Broker, a licensed Realtor who is willing to shave off 1, 2 or more percentage points.
Rob and Linda Clark of Horizon Realty offer "exceptional" Full Service Real Estate Services at a Fair Commission.
You've worked hard for the money -- the equity in your house, that is, and now that you've decided to sell you're reluctant to give a traditional real estate broker a whopping 6 or 7 percent commission for bringing you a buyer.
The good news is you don't have to. You have options, and one of them is to sign on with a Full Service Broker, a licensed Realtor who is willing to shave off 1, 2 or more percentage points.
Rob and Linda Clark of Horizon Realty offer "exceptional" Full Service Real Estate Services at a Fair Commission.
The Mexican Shortcut Story
A fancy boat docked in a tiny Mexican village. An American tourist complimented the Mexican fisherman on the quality of his fish and asked how long it took him to catch them. "Not very long," answered the Mexican. "Well, then, why didn't you stay out longer and catch more?" asked the American. The Mexican explained that his small catch was sufficient to meet his needs and those of his family. The American asked, "But what do you do with the rest of your time?" "I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings, I go into the village to see my friends, have a few drinks, play the guitar, and sing a few songs...I have a full life." The American interrupted, "I have an MBA from Harvard and I can help you! --You should start by fishing longer every day. You can then sell the extra fish you catch. With the extra revenue, you can buy a bigger boat. With the extra money the larger boat will bring, you can buy a second one and a third one and so on until you have an entire fleet of trawlers. Instead of selling your fish to a middle man, you can negotiate directly with the processing plants and maybe even open your own plant. You can then leave this little village and move to Mexico City, Los Angeles, or even New York City! From there you can direct your huge enterprise." "How long would that take?" asked the Mexican. "Twenty, perhaps twenty-five years," replied the American. "And after that?" "Afterwards? That's when it gets really interesting," answered the American, laughing. "When your business gets really big, you can start selling stocks and make millions!" "Millions? Really? And after that?" "After that you'll be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take siestas with your wife, and spend your evenings drinking and enjoying your friends...
Tuesday, May 09, 2006
Model Home
To help buyers envision life in a new community development, a builder has hired actors to "live" in a model home and portray a family going about daily activities — cooking, listening to music, and hanging out.Beginning on May 20, actors will live in a model home in Centex Corp.'s Milestone community in Santa Clarita, Calif. The thespians will act as a two-child family, allowing prospective buyers to watch them as they live. The "home owners" also will be able to provide information about prices, floor plans, and local schools. Homes in the 166-unit Milestone development are priced from $500,000 to $600,000 and feature as much as 2,321 square feet of living space, five bedrooms, and three bathrooms. The HomeLife program will be expanded to other Centex developments in the coming months. "Model complexes tend to be a bit stagnant and dry for people," comments Amanda Larson of Centex. "What better to show how someone might live in them?"
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