If you are thinking about making an offer to purchase a home, make your offer contingent upon the home passing an inspection to your satisfaction.
To minimize unpleasant surprises and unexpected problems, home buyers need to know as much as possible about the home before they buy. An inspection can identify looming major repairs or builder oversights. With many choices on the market now, including foreclosures and short sales that can be riskier for buyers, an inspection is especially important.
A standard home inspectors report will cover the condition of the homes heating system; central air conditioning system; interior plumbing and electrical systems; the roof ,attic and visible insulation; walls, ceilings, floors, windows doors; foundation, basement and structual components. The report will also include systems and components the inspector finds not functioning properly, significantly deficient, unsafe or are near the end of their service lives.
Many buyers do not realize that appraisals are not home inspections. A professional home inspection is an examination of the current condition of a home. It is not an appraisal, which determines the homes market value.
Here is an interesting evelopment that could impact beachfront property owners in zip code 32963. On December 2, the United States Supreme Court will heart oral arguments in Stop the Beach Renourishment v. Florida, a national property rights petition. The Orlando firm of GrayRobinson is representing the Coalition for Property Rights ( CPR).
The case involves property owners along 6.9 miles of beaches in Walton County and Destin in Okaloosa County. Beacause their properties border the ocean, CPR claims they have “littoral” rights which includes the right to benefit from the slow natural process of the beach widing over time. As part of the beach renourishment project, which is authorized under Florida’s “Beach and Shore Preservation Act,” the state added sand to the beach beacuse it was “critically eroded.”
Florida then declared that it owned the new stretch of beach, which changes the boundaries of the properties. If the state ownes the new stretch of beach, the homeowners’ property boundaries don’t go to the ocean as they once did – they now end on a public beach. So instead of having oceanfront property, they now have what is considered ocean view property.
This case has gained national attention because of the implications it could have on future property rights cases. It will also be the nation’s first glimpse of property rights decisions made by new Justice Sonia Sotomayor.
Beachwalk, located at 940 Turtle Cove Lane, is located just steps away from what many consider the best beach in Vero, south beach. Beachwalk is low rise with just three floors in keeping with Vero Beach’s building heigth restrictions.
Beachwalk was contructed to meet all current Florida codes. It is an all concrete and concrete block structure with eight inch concrete blocks as walls between adjoining units which provides a very quiet environment for owners. All units are three bedrooms and two full baths. They vary in size from 1800 sq ft to 2140 sq ft. The bedrooms are carpeted and the public areas are ceramic tile laid on the diagonal which provides architectual interest. The builder put cork under the tile so no sound carries to the unit below. The kitchens all have corian counter tops and a high gloss baked enamel finish on the cabinets which makes for easy maintenance. All units are constructed so a bedroom is located at either side of the front entrance and the master suite with two walkin closets is located in the back facing the lush tropical lanscape in the courtyard. Each unit has two parking spaces located in a secure enclosed ground floor space. First floor units can access the pool and clubhouse by steps from their balcony. Second and third floor units can use elevators or stairs. The clubhouse features a catering kitchen and a fitness center. A tennis court is adjacent to the clubhouse. The 20 by 40 foot pool is heated to 84 degrees during the winter months and the spa is heated to 90 degrees.
Beachwalk’s location makes it easy to walk to three popular south beach retaurants and it is conveient to the shops on Ocean Drive.
There are currently 6 units for sale ranging in price from $399,000 to $495,000. If you would like to visit these properties call me at 772-532-2243 or visit my website, www.verobeachluxuryhomes.org.
Tags: vero beach condominiums, vero beach properties, vero beach real estate
Lawrence Yun, Chief Economist for The National Association of Realtors, recently published a report showing second quarter 2009 home sales were up across the county over second quarter 2008. I thought it would be interesting to see if the market in Vero Beach is tracking the national market. To do this I looked at sales/pendings for each quarter 2008 and 2009 for condos on the island, single family residences on the island and single family residences countywide. I also looked at the average selling price per quarter for each category to see if I could determine a shift in prices. The results are shown below:
What this means to you if you are a seller, your property days on market will likely decline. If you are a buyer, it looks like you missed the bottom and will face higher prices in the future. For more information or to search listings on Vero Beach Real Estate, please contact me.
Tags: vero beach, vero beach properties, vero beach real estate, vero beach real estate market news
The National Association of Realtors has issued a report with second quarter existing homes sales showing healthy gains from the first quarter in the vast majority of states. Price declines are a major driver for the sales increase because they are making housing more affordable. Total state existing home sales rose to 4.76 million units in the second quarter, up from 4.58 million units in the first quarter. Year on year this increase is lower than the 4.90 million unit sales recorded in the second quarter of 2008.
Lawrence Yun, National Association of Realtors chief economist, said the sales gain appears to be sustainable. “Low interest rates, lower home prices and the first time buyer tax credit are major drivers for the sales gains.
Yun explained housing’s impact on the overall economy. ” Given the need for related goods and services, each home sale pumps an additional $63,000 into the economy – that’s how the housing engine traditionally pulls us out of recession. In addition, sales are drawing down inventory and that will help stabilize homes values, which in turn will lessen foreclosure pressure and boost credit availability for other sectors of the economy.”
Foreclosures and short sales accounted for 36% of the second quarter transactions. These sales are typically at a 15 to 20 percent discount which explains the price declines.
We’re experiencing the national sales increase trend in Vero Beach. Our first quarter sales were 357 units. Second quarter sales rose 51% to 538 units. July sales were 213 units which is the highest monthly sales since the third quarter 2007. We are also experiencing price drops as the market is making corrections from the red hot sales times in 2005.
Tags: vero beach luxury homes, vero beach properties, Vero Beach Realtor
What’s the fastest growing niche in real estate, one that’s seen an increase in residential sales volume of 48% in the past 60 months? The answer is auctions, they’re growing while just about everything else in commerical and multifamily is flat or declining.
Last year $59 billion was sold at live auctions according to the industry’s trade group, the National Association of Auctioneers. This year, with commerical real estate in a free fall in some urban areas, auction volume is expected to be even higher.
But why should owners of investment property give serious consideration to auctions. Sheldon Good & Co, one of the largest real estate auction company’s in the U.S. says auctions are most effective during accelerating markets, like we had in the boom years, and during decelerating markets like we have now.
In an accelerating market, live auctions of investment property where all the due diligence is available to fully vetted bidders gathered in one room, can push prices far beyond what the seller thought was possible.
In decelerating markets auctions are used to cut loses. Carrying costs are limited immediately and sellers usually get a higher net return than they would have gotten by leaving the property dangling on the market for months.
Live auctions have become key elements of the 2009 distressed property marketplace. They are being used to establish true market values in environments where people aren’t sure what the values are.
Banks are increasingly using auctions as loss mitigation tools.
Bottom line: Consider addding auctions to your strategic plan if you need to sell in a down market. They’re not a panacea but they due work.
Tags: real estate auctions, vero beach properties, vero beach real estate
There are five strategies that can help home owners, buyers and sellers navigate today’s turbulent housing and mortgage markets.
1. Understand and Utilize the New Tax Credits. Many home owners are not aware that the latest government stimulus package gives them a special tax credit of up to $1,500 for making certain home improvements. If you are buying a primary residence and have not owned a primary residence in the last three years, you may qualify for the $8,000 first time homebuyer tax credit. You cannot use this money as part of the down payments but it can be claimed as a tax credit for your 2008 tax return even if you purchase the home in 2009. You just need to file an amended 2008 return and the IRS will send you a check for $8,000.
2. Consider Paying Points for Your Mortgage. Mortgage points are upfront fees that you pay to get a lower mortgage interest rate. One point equals 1% of the loan amount. In the past it almost never made sense to pay points. But with the new mortgage securitization process, Wall street investors are demanding higher upfront fees for borrowers with credit scores below 740 and lenders don’t have as much flexibility as they used to have when pricing loans. This means the interest rate savings can be significant when upfront points are paid.
If you are buying a home consider negotiating for the seller to pay points. In addition to the significant interest savings you will receive a tax deduction this year for points the seller paid on your behalf. If you are selling a home consider offering to pay points as part of your marketing efforts. This will make your home more affordable and make it stand out in the marketplace.
3. Carefully Structure Your Real Estate Short Sale Transaction. A real estate short sale occurs when an owner sells their property for less then is owed on the mortgage and the lender gives permission to do this by forgiving the difference and/or releasing the mortgage lien on the property.
If you are selling your home as a short sale make sure to negotiate for a release and full mortgage satisfaction from your lender. Otherwise lenders may wait a year or two for your financial situation to improve and then file a deficiency judgement against you to try to recover the money you still owe them. The only way to advoid this risk is to have the lender release the mortgage lien and agree in writing to a full satisfaction of the mortgage.
If you are buying a home in a short sale, make sure the deal is closable. Approximately 30% of short sales are not closeable because the lender will not agree to it. One way to avoid this problem is to have your Realtor verify the status of the sellers hardship package with the lender.
4. Utilize the Special Options Available to People 62 or Older. If you are 62 or older, you can utilize a reverse mortgage to buy a new home without making any mortgage payments. This might be helpful if you are considering a move and are worried about trying to sell your home into a down market. Reverse mortgages can also be used to supplement your income that may have declined due to unfavorable economic or financial market conditions.
5. Carefully Interview Your Mortgage Professional. It is very important that you work with a Certified Mortgage Planning Specilist who has the training and experience to guide you through the home buying or refinancing process.
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Mortgage rates continue to decline and home price increases are this weeks news for real estate.
30 year fixed rate mortgages are just over 5% with 15 years rates about 4.6%. Both numbers are close to all time lows.
Buyers are getting the message with house and condo offers up 9.4% last week. Refinance applications were up about 18%. The Integrated Asset 360 Index showed prices moving up 1.6% nationwide based on data from more than 15,000 zip codes. This was the largest increase reported by the Index since July 2005.
There appears to be a trend toward move up buyers and away from firt time buyers. Move up buyers represented 35%of the market in the first quarter of 2009 but rose to 48% in the second quarter. This is significant because the market ratio in recent decades has been 66% move up buyers with 33% first timers. Move up buyers tend to be less focused on distressed and foreclosed properties at low prices.
Several studies show sellers are getting about 90% of their asking price reflecting more realistic pricing strategies.
While this reflects a turnaround of the national real estate market, there are many markets that are continuing to decline because of rising foreclosures and high unemployment.
The bright spot is todays mortgage rates and lower prices translate to improved affordability for thousands of buyers making the word “turnaround” look very real.
New HERA regulations may affect borrowers’ closing expectations. A new government regulation went into effect July 30, 2009. This regulation requires all mortgage lenders and brokers to provide Truth in Lending ( TIL) disclosures to borrowers according to a defined schedule. This schedule may alter the loan closing date. This regulation is in the best interest of borrowers’
Lenders must issue the initial TIL at least seven days before loan consumation( document signing). Regardless of how the initial TIL is provided to the borrower, closing documents cannot be signed earlier than seven business days after the initial TIL has been issued.
If there are any changes to the loan parameters that effect the Annual Percentage Rate (APR) on the TIL, the resulting APR must be compared to the latest TIL provided to the borrower. If there is an increase greater than 0.125% in the APR, the lender must provide a corrected TIL to the applicant. Fees considered to be finance charges that are used in the APR calculation include but are not limited to discount points, lender and broker fees, life of loan flood certification coverage, settlement agent or attorneys fees. Borrowers must be provided three business days to review the amended TIL prior to loan closing.
This regulation prevents the collection of all fees from the borroweer, except the expected cost of a credit report, unhtil the initial TIL has been received by the borrower. This may delay appraisel orders or orders for other essential services. If the initial TIL is delivered to the borrower face to face, fees for these services can be collected at that time.
The changes this regulation brings are positive ones for the borrower. This regulation strives to ensure borrowers’ have a clear understanding of the financial obligation they are about to assume.
Tags: housing, properties, real estate
The average American moves 12 times in a lifetime. Many people feel like they’ve moved 12 times after doing it once. That’s because they move stuff they no longer use.
1. Don’t move it if you don’t want it. Many people move all the clutter they don’t want or need. Identify the unwanted items and get rid of them with a garage sale or donate them to a charity.
2. Packing material at your disposal. Save money and environmental resouces by using free and recyclable packing materials. Many supermarkets will give away boxes for free. Start hoarding newspapers and junk mail. Use the newspapers to pack fragile items. shred the junk mail to make a great green replacement to bubble wrap.
3. Surf for techno help. Let someone else figure out which cable, telephone and internet service to get at your new home. Visit a site created by cable companies, Cable Movers Hotline ( cablemover.com ) or Moveraroo ( movearoo) a site created by telephone companies.
4. Moving advice for your possessions.If you use a professional mover, pick a reputable company by means of a referral rather than an advertisement. And advoid stress by setting aside your precious itmes and paperwork and move them yourseelf.
5. Start with a list. Don’t know where to start. Take a long hard look at each room and make a list of what has got to go and what has to stay. Once you get going, it’s very easy.
Tags: homes, properties, real estate