I Am NOT Responsible for Poinciana Florida Market Conditions.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Yikes!!!!Hi folks. I had one of my Sellers email me earlier today needing an update on what is going on with her property. She’s an absentee Seller and I could feel her frustration. She had been to my Poinciana website and noticed that I had just closed on a short sale that was similar in size to her house. Anyway, I’m sure many of you are getting these types of emails, so, I decided to post my response here, just in case it will help you with responding to your Sellers. The main thing, of course, is too just be honest. As a listing Broker, I can’t control the market and I certainly don’t take responsibility for it. 

When I first listed this property we were within 5% of market value and have in fact had 2 offers on it that were turned down. So here’s my response to my Seller. 

START OF EMAIL

Thanks for your email. I did just close on a short sale property a couple of weeks ago. It was about the same size as yours but was a single story. It sold for $140,000 with the seller paying $8,400 towards the buyers closing costs for an effective selling price of $131,600. 

We are getting some activity on your home but it is very sporadic. I have attached a market report showing how homes with at least 4 bedrooms, 2000 sq ft or more built no earlier than 2004 are doing in Poinciana since we placed yours on the market. 

What it shows you is that there are currently 199 homes for sale that meet these parameters. The average home has 4 bedrooms 2,551 sq ft and is priced at $174,413 or $68.49 per sq ft. For reference yours is priced at $74.79 per sq ft. 

There are 18 properties under contract(pending). These are on average 4 bedroom homes with 2,623 sq ft priced at $151,446 or $58.50 per sq ft. 

There have been 52 sales since your house was placed on the market. These were 4 bedroom homes with 2,552 sq ft and sold for $160,917 or $64.30 per sq ft. 

This shows me 2 things:

  1. First, the homes that are selling (sold and pending) are larger than yours and are selling for less money per sq ft. The sales are at $64.30 and the pendings are at $58.50.
  2. Secondly, this shows me that prices are still declining. That means that your house will be worth less tomorrow than it is today and less next week than it will be tomorrow. 

The last time we discussed pricing was 4 July. At that time, the average price per sq ft was $66.00. Your house at that time was worth $141,000. Based on that figure a price reduction to $149,000 was suggested. You agreed to $159,000. 

Based on today’s price per sq ft the value of your house is $137,500. So the issue is still pricing.

Poinciana is averaging about 45 sales a month out of 1200 listings. That means that there is 26 months of inventory on the market. 83% of the sales are either bank owned properties (REOs) or short sales. 

So, to answer your question, people are looking at the best priced properties out there. If they can find a bare basic house that is relatively new for $20,000 less than yours then that is what they are buying. 

To compound our market difficulties, as of September 31st, Seller paid down payment assistance will no longer be allowed. This is a huge part of the market in Poinciana. FHA is also raising their minimum down payment from 3% to 3.5%. Mortgages are getting more and more difficult to get. 

So what do you do?

  • Reduce it and sell it before it gets worse.
  • Rent it out. 

Here is a link to my latest market report

I hope this helps you to understand what’s going on. I’ll look forward to your thoughts. Please feel free to give me a call if you want to chat. END OF EMAIL 

Folks, chasing a declining market downward is a losing proposition. What say you?  

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR POINCIANA REAL ESTATE

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Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved 

Your Home is Your Castle, NOT an ATM Machine!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

This is one of my classic posts that I felt I needed to bring to the front of my blog. It shows that short sales aren’t something new. This post was written in December of 2006. Enjoy!!!

12/15/2006 Your home is your castle, not an ATM machine! 97 13294 9381

I smite thee TLW!Tomorrow, I’m placing a home on the market, that is going to require a short sale. Seems like I’m getting an awful lot of these lately. This is one where I just don’t understand what some folks are thinking. Nice young family, who were first time homebuyers just about 2 years ago. They bought a great little house, new construction, and they only paid $135,000 for it in November of 2004.

This was right before our big increase in prices that happened in Poinciana in early 2005. So when I made my appointment with them, earlier this week, I assumed they would be in a pretty good equity position. Even if they had purchased with 100% financing, which they did, they would still be able to receive a sizeable amount of money at closing. Based on my preliminary analysis, the property is worth between $225,000 and $235,000. That’s some real good appreciation for 25 months of ownership. After expenses they should be looking at around $70,000 to $75,000 in their pockets. That’s a lot of money for a young family.

Well, when I met with them, I was shocked to find out they currently owe $225,000 on this house! How the heck did that happen? From what they told me, when they moved into the house they wanted to fix it up and furnish it real nice, so about six months after moving in, they refinanced and pulled out the equity that had built up when prices started skyrocketing.

They used this money to purchase the things they wanted. New furniture, TVs and all the other items that a young family think they need. What they didn’t count on was hitting a financial bump in the road about 9 months later. But they weren’t too concerned since they kept getting all these mailers from mortgage companies in the mail promising them more money.

The temptation, being too much, they decided to call one of the mortgage companies and have a salesman came out to see how he could “help” them. They said he was a real nice guy and he told them they could put a second mortgage on their house for $65,000. He was also nice enough to let them know, that the way houses are appreciating, that after a few months, they could refinance again and get rid of the second mortgage. He said “Don’t worry about the high rate, once you refinance the payments will come back down to what you can afford. You can use the $65,000 to make payments in the meantime.”

What a great guy! They can now get that new car they want and buy more nice things for their three young children. They told themselves, “It’s not a big deal. We know we will get jobs real soon and then we can just refinance like the nice man said. This homeownership is really awesome! It’s like having our very own ATM machine.”

Fast forward to this week. I met with them and they are in dire straights. Husband just started work a couple of months ago and the wife has still not been able to find work, since she is too busy, taking care of three small children. They have enough money to make two more mortgage payments and then they are done.

So, tomorrow, I am placing the house on the market at $225,000 and I will be trying to negotiate a short sale.

These folks are in their late twenties. Instead of selling the house and using their, what would have been, $70,000 equity to purchase a better and bigger home for their children, they are now looking at possibly being foreclosed on and in the best case scenario, ruining their credit for years to come. It is sad but it’s largely self inflicted.

They made a mistake and they know it. They’re not bad people they were just weak in the face of easy money and instant gratification. Now they must pay the price. I hope I can get them through this with the least amount of stress possible. I hope they have learned a valuable lesson. I hope they move forward from this and are able to get it together. I hope all their new furniture looks good in their new apartment. I hope they don’t read this post.

Moral of the story: Your home is your castle, not an ATM machine.

Florida Department of Revenue Sucks on Short Sales!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

D'ooh!!!OK so the Department of Revenue in Florida has decided to charge Documentary Stamps (tax) on the amount of mortgage forgiveness related to short sales. Doc Stamps in Florida are charged at the rate of $.70 per every $100 on the Deed of every real estate transaction. 

For example: If you sell your house for $100,000 the seller pays $700 in doc stamps. 

Now what the State is saying is that if you sold that same house for $100,000 BUT it was a short sale where the Lender forgave $50,000 the tax due is now $1,050!!! 

So this brings up some interesting questions. 

  • How many out of State lenders are going to be willing to give the “forgiveness” amounts to the title company? 
  • How is this going to affect future appraisals where the appraiser relied on Doc Stamps as an indicator of sale price?
  • What about a closing where the Seller brings money to closing? Will they too have to pay Doc Stamps on their mortgage balance instead of the sales price?
  • Will the Department of Revenue ever get their head out of their ass? 

Oops!! Did I just say that? Oh well…..what say you?

The stress of non-disclosure is finally put to rest!!!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I'm stressed!!!!Hi folks. I posted an article last year titled “Sally’s Eyes Will Make a Grown Man Cry”, if you haven’t read it please take a minute to do so as it was a powerful post. This post is a follow up. 

When I listed Sally’s house, the biggest issue, was whether or not to disclose the murder/suicide of her parents. Since this is not something we are required by law to disclose we decided not to. The reason we decided not to disclose was simple, all that the parents, of Sally and her two sisters, had left them was the equity in the house. My job, as their family’s long time REALTOR® and friend, was to get as much as I could for the house. 

Having this house listed was very stressful. But what can you do? These girls really needed to sell and they had already been through enough. The fact that their parents had died in the house was a matter of public records. It had been on the news and in the papers. It was a known event. 

Every time there was a showing I would worry about the neighbors running out to tell the potential Buyers all about what had happened in the house. I was not at all comfortable with “the secret” that I had but I had to keep it. Unless I was asked……I wasn’t talking. 

Anyway, after several months, many showings and no incidents, a Buyer was found!!! Thankfully they were working with their own agent. A deal was negotiated and we moved towards closing. 

The transaction was very smooth and it closed with no issues. The Sellers and I never met the Buyer. 

For months, after this closing, I kept waiting on the dreaded phone call, from the Buyer or their agent, reaming me out for keeping “the secret”. I just knew the Buyer would find out from a neighbor and my reputation in Poinciana would be ruined. Their Attorney would sue me for “emotional duress” and I’d lose my business. But fortunately…..these things didn’t happen. 

It’s been a little more than two years now and I haven’t heard a peep…….until today!!!!! 

It seems the Buyers of this property were part of “one of the largest marijuana grow house operations in the history of Osceola County”. YIKES!!!!

I guess I should have disclosed to the neighbors….who….was buying the house. Go figure!

The Ten Commandments of Real Estate

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Break the law and your ass is whipped!!!!OK folks, In honor of My Lovely Wife’s birthday today I am reposting her very first post. She was a guest author on my blog and I posted this for her on August 19, 2006. It was a featured post at the time and TLW decided to open up her own AR profile 5 days later. Anyway……here goes.

The Ten Commandments of Real Estate
Written by TLW on August 29,2006

Ok, so the lovely wife is bored today and decided to come up with the Ten Commandments of Real Estate. So if you like them or don’t like them, please address all comments to “The Lovely Wife.”

1. Thou shalt not take thy Broker’s name in vain.

2. Thou shalt not bear false witness on thy H.U.D.

3. Thou shalt not lie, cheat or steal to obtain thy almighty dollar.

4. Thou shalt not covet thy co-broking commission.

5. Thou shalt not obtain thy listings in any other way than with complete honesty.

6. Thou shalt not place thy own needs before the needs of a customer/client.

7. Thou shalt not dishonor the parties involved in thy transaction.

8. Thou shalt not misuse thy Realtor status to offer unlawful legal advice.

9. Thou shalt not kill a deal for thy own benefit.

10. Thou shalt not withhold any offers made on thy Seller’s property.

Addendum: Thou shalt not ever let thy wife’s debit card run low on funds!

I’m not quite sure why she needed to add the addendum, but we’ll go with it.

***Posted by “The Lovely Wife.” edited by the extremely handsome and adorable hubby. 

Florida Short Sales Don’t Have to Suck!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Florida short salesIn my last post I had mentioned that I was dealing with a PMI (private mortgage insurance) company during my short sale negotiations. Some of you guys didn’t realize that this was one of the entities involved in the decision making. PMI is almost always required when the home is purchased with less than 20% down and is paid for by the home buyer BUT it can also be purchased by the lender even if the down payment was 20% or more. If you are dealing with short sales this is one of the first questions you want to ask the lender, “Is there PMI Insurance?”. It affects the negotiations, so you need to know. 

There are actually 3 entities that may have an interest in the negotiations, the Lender, the PMI Company and the Investor. The Investor could be Fannie Mae or Freddy Mac or any of the other secondary mortgage market Investors. 

If there is PMI and an Investor involved it has been my experience that the PMI Company has the most weight in whether or not the deal will be accepted. This makes sense since they are the ones that have insured the loan. The Lender will usually accept what the PMI Company approves. If Freddy Mac or another Investor is involved they too have to OK the deal after the PMI Company. I haven’t dealt with FHA or VA yet but I’m sure their process will be similar. I hope. 

So there is much more involved in getting a short sale approved than just getting the Lender to accept the deal. 

If you understand the process and know what you are doing, these deals are not complicated, they are just very time consuming. I am by no means a short sale expert, yet. But I am a very quick learner and I’m getting better at them everyday. Short Sales do not have to suck!!! 

Anyway, I hope this information helps you. Let me know if you have any questions and also let me know if you feel any of this information is incorrect. I don’t think it is but hey….I’ve been wrong before. I just can’t remember when. ๐Ÿ™‚

 

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved 

Short sales. It’s not only up to the Lender.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

 

The following is the reblogged post from Bryant Tutas Broker/REALTOR(R) Tutas Towne Realty, Inc:

This is the third part of my series on short sales. As way of disclosure, I am NOT an expert on short sales, I am using this series as a way for me to think through the process and hopefully become better prepared to help some Sellers who may qualify for a short sale.

A short sale can be a very complicated transaction. Not only are we negotiating with the Lender but there is another entity who may be involved as well….the Private Mortgage Insurance (PMI) Company. Most Buyers, that did not put at least 20% down when they purchased their property, were required to purchase PMI for the benefit of the Lender.

PMI protects the Lender for loses usually up to 20% of the loan amount. So, they have a say so in whether or not a short sale is accepted.

I am in the process of negotiating a short sale right now where I am actually negotiating with the PMI Company instead of the Lender. This is a first for me but so far it seems to be going well. The lady I am dealing with has been very helpful and she is the one that is handling the negotiations with the Lender. Have you ever done this before?

I'm very anxious to see how this plays out. Brian Brady wrote a very good post about this a few months ago titled "A Realtor's guide to PMI and Short Sales". Give it quick read.

Anyway, the point of this post is to make you aware of the fact that a short sale is a lot more complicated than just getting the Lender to agree to a price. The Lender is looking at the bottom line. If the short sale does not NET them more than a foreclosure then it ain't happening.

When meeting with potential Sellers you need to find out if they have PMI. If they do, then do the math. Brian is better at that than I am so if you haven't already….go read his post.

OK that's it for today. These are my thoughts. What are yours?

Other posts in the series:

A "short sale" is an option NOT an entitlement!

Becoming a better "short sale" expert. A series by Broker Bryant.

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

Poinciana Florida Market Report for July 2008

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Call me! 407-873-2747

I know you guys have been sitting on pins and needles waiting for this month’s market report. So here you are……Poinciana Florida’s market report for July 2008. 

***This data was pulled form the Mid-Florida Regional MLS on 8-7-08 and is deemed reliable. It includes Poinciana neighborhoods in zip codes 34759 and 34758 but does not include Solivita, Cypress Woods and Lake Marion Shores.*** 

For the month of July there were 62 single family homes that closed with an average property having 3 bedrooms, 2 baths, 1812 sq ft of living area. Most were built in 2000 or later. The average selling price was $118,175 and the median selling price was $118,250. 

51 of these 62 sales were either bank owned (REOs) or Short Sales. That’s 83%!!! 

There are currently 1196 homes on the market and 130 under contract (pending). 

Buy me!! MLS o4842211

 

The lowest priced home on the market is a 3/2 with 967 sq ft built in 1996. This is a REO property and is priced at $55,900. It’s been on the market for 114 days and has had several price reductions.

 

Reduce me!! MLS o4717297

 

The highest priced home on the market is a 4/2.5, with a pool, 2162 sq ft and was built in 2003. It’s a privately owned home and has been on the market for 684 days!!! It’s currently priced at $369,000 after a couple of price reductions. I guess they’re in no hurry to sell this one.

 

OK let’s look at a table showing the last 7 months of sales activity to see if there is a trend developing. 

MONTH

CLOSINGS

MEDIAN PRICE

%

CHANGE

AVE PRICE

PER SQ FT

%

CHANGE

JAN

20

$ 137,000

 

$ 86.34

 

FEB

24

$ 146,000

+6%

$ 81.67

– 5%

MAR

35

$ 131,230

-10%

$ 74.27

– 9%

APR

31

$ 120,000

– 9%

$ 78.53

+ 5%

MAY

50

$ 126,750

+ 5%

$ 68.82

-12%

JUN

55

$ 117,500

– 7%

$ 65.54

– 5%

JUL

62

$ 118,250

+ 1%

$ 64.63

– 1%

What this table shows me is that monthly sales have increased quite a bit since January. Of course this could be a seasonal thing. Let’s wait and see if this trend continues. The median sales price has decreased 14% and the price per sq footage has decreased 25%. 

These figures line up with the fact that 83% of the sales in July were REOs or short sales. These distressed sales are bringing values down even though sales volume is up. 

What this means is, there are Buyers out there, and they are buying if the price is right. Also, the declining values, stress how important it is to price your property in front of the curve. This is no time to test the market. With an average of 44 homes selling each month, out of almost 1200 that are available, you MUST have the best priced house on the market or you are dead in the water. You will NOT get lucky. 

We are not experiencing a Buyer problem we are experiencing an inventory problem. Too many homes to choose from. The way to attract Buyers is….. pricing. But you knew that. 

So, that’s my report for this month. As always, let me know if you have any questions. Any thoughts?

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR POINCIANA REAL ESTATE

Sell Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Poinciana Real Estate Agent

Copyright © 2008 http://www.brokerbryant.com/ | All Rights Reserved 

Don’t Fret Over The Localism Land Rush……Call ROAR! Realty.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

ROAR! Realty

Hi folks. With the Localism “Land rush” going on this week we, TLW and I, just know that some of you are missing out on the communities you want or may be purchasing more than you need. With that in mind, TLW and I are opening up a new business…..ROAR! Realty. 

We at ROAR! Realty are here to assist Buyers and Sellers of Localism communities. We offer exclusive Broker representation in what may be the single biggest purchase of your Internet life time. 

ROAR! Realty is the first business of it’s kind and is on the cutting edge of today’s technology. We Twitter, we twatter, we twoot and poot. Just let us know what you want and we’ll find a way to make it happen. 

Contact us today to take advantage of our introductory rates. The first 30 callers will get our exclusive brokerage representation for the low low rate of 10 “great post” comments on our posts and 5 “flag for feature” thingies. 

Don’t miss this crappy opportunity folks!!! Act now!! Operators are standing by.

ROAR! Realty, Inc
435 Crappy Lane
Constipation, FL 34546

Making dreams come true one community at a time! 

A smaller downpayment may protect the home buyer.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

BAM!!! Get to work!! Hi folks. My friend, Bill Archambault, put up a post earlier today expressing his dismay over “When mortgage and real estate people start talking about people with out large down payments being undeserving a home of their own…..” Take a minute and go read Bill’s post. 

Did you notice this statement? “Truthfully, big down payments protect no one except the bank! Little or no down payment may even protect the home buyer, by maintaining his liquidity and putting the bank mutually at risk with the home buyer.” 

That statement is what this post is about. This is a real life example. 

I have a Seller right now who bought her home in Poinciana in late 2006 for $179,000. She’s from NY and in early 2006 came into $100,000. You’d think that would be good thing but the money came from a lawsuit related to the wrongful death of her only son. 

The stress of her son’s death and the ensuing lawsuit placed her in a position of wanting out of NY. So, as many people do, she moved to Florida! She used every bit of her $100,000 as a down payment and took out a mortgage for $79,000. 

Everything went well for about a year and then life, being unpredictable, dealt her a hand that caused her financial hardship. She was no longer able to keep up with her mortgage payments. She fell into default with her lender.

I met her about a month ago and valued her property at $75,000!!! This means that after selling expenses she is in a short sale situation. Could you imagine putting almost 60% down on a home and still being upside down in less than 2 years? That’s incredible. 

How much better off would this lady be if she had bought with even 20% down? She would still be upside down on her home BUT she would have cash reserves to help her weather the storm. 

Now this is an extreme case but it truly illustrates how “Little or no down payment may even protect the home buyer, by maintaining his (her) liquidity…”

I wonder if her REALTOR® or mortgage broker mentioned this to her when she went to purchase? I wonder if I would have said anything to her? Should we?

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your Stateโ€™s laws may differ. So do your own homework before implementing any of my business practices into your business.