Foreclosures Reach All Time High in 3rd Quarter

Foreclosures Reach All-Time High in the 3rd Quarter of 2009 according to RealtyTrac.com. Real estate owned (REO - Bank Owned) sales rose 21% from the second quarter to the third quarter, which mirrors increases in defaults and scheduled auctions in the first quarters of 2009 said James Saccacio, the chief executive officer of RealtyTrac.

What does this mean for you as a Real Estate Agent?

The current stats coming out of the 3rd quarter signifies that the Real estate market will probably see another wave of foreclosure and property value declines in the coming 12 months.

Right now, most transactions taking place are being financed through FHA which is under massive scrutiny and claims that they may need a bailout. Money is already tight and loans are more difficult to close than ever. If FHA dries up, where are your buyers going to get financed? What are you going to tell your sellers when you can't sell their homes?

New School vs. Old School Realtors

Being the youngest Realtor in my office can be funny at times. I am a young, technology driven Realtor who lives online, and is always connected. Most of the agents in my office are 40+ and just have a whole other style of doing Real Estate.
Now i'm not saying one way is better than the other, I just find some of the conversations we have to be amusing.
For example, I had a marketing meeting with my team today going over some new listings and things we are trying to move quickly. I must have spent 45 minutes watching one agent explain to another agent what Postlets.com was, how to set up an account, and then how to post it online. Meanwhile I was updating my facebook ads, craigslist ads, my MLS, my twitter, and Blog. While I am talking about my new website, lead generation, online ads, etc, they are talking about new yard signs and putting things in the paper. Its just a different world.
I love teaching the older Realtors about Craigslist, Twitter, and all the other ways to get your property online. I also love to hear about how they used to do business.
Now don't get me wrong, there is definitely something to be said for face to face meetings, hand shakes, mailers, etc. I pride myself on being able to be in a room and close the deal myself. But to get your properties out there to the masses, and really compete, you need to be online. That is what a lot of older Realtors are just starting to realize.
I get more leads, and active buyers coming to my email everyday than most of the agents in my office combined. Im always sitting down with someone and showing them some HTML code to make things easier for them, or setting up an account online somewhere to showcase their properties. Even my dad calls me for help doing Postlets, Craigslist etc.
I like being in an office where I can get tips and hear stories about how the other agents in my office became successful, and then sharing my tips on how I am just becoming successful. Its a great environment to work in.

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For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

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For Sale: 4BR/2BA Single Family House in West Palm Beach, FL, $109,000

For Sale: 4BR/2BA Single Family House in West Palm Beach, FL, $109,000

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Bank Owned Properties or REO's

Bank Owned Properties or REO's

I get asked a lot, the difference between Pre-foreclosure, Short-Sales, Foreclosures, and REO's/Bank Owned Properties.
The easiest way to explain it is-
-Pre-foreclosure / Short Sale: The owner still has some say in the deal, but the bank makes the final decision. The owner owes the bank more than what they can sell the house for, and so the bank accepts a "short" or "less" amount than what is owed, and allows the owner to get out of the property. Now the owner may still be in the hook for the difference between what they owed and what they sold it for, but each situation will be different. These deals usually take the longest, so dont be mislead by the name "Short sale", thinking it will be a quick transaction.
Foreclosures /Bank Owned / REO's (Real Estate Owned): Just like it sounds, the bank has taken over the property, and they now own it, and are looking to sell it. These are usually the best deals to come across. Closing can usually happen quickly, and there are less hoops to jump through as far as paper work and waiting around for answers. In this case however, the bank is usually not likely to make any repairs, or really do much to assist the sale, other than letting it go for a very cheap price. The banks dont want these properties sitting on their books, and so they are willing to let them go for fire sale prices.
In a nutshell, that is the easiest way to describe the different kinds of deals you may come across out there. I have worked Short Sales, as well as Bank Owned properties, and they both can be easy, if you have the right people working for you.

Holding out for Offers

Holding out for Offers

We all have been there, you have a property that is priced so low, that you know the owner is going to only take a full price offer.
But at the same time, if you are priced low, and the property is still not moving, you need to think about accepting lower offers. This goes for both rentals and sales.
Then there are the rentals that are priced high and the listing agent is just holding out for that one client willing to over pay.
Ive been trying to get a client into a house out west, in the Wellington area for about a month. 2 or 3 of the listings she liked, were all from the same agent. All the properties were listed at prices higher than last year, and in some cases, in worse shape. I had put in offers for a couple hundred less than asking, but still well within the fair market value for the properties. The agent would not even show the offers to the owners unless they were full price.
I feel that agent was not acting in the best interest of the owner by not presenting every offer. We all know that if you get a low offer, and then the property sits for another month or so, you would have already lost the difference from that one low offer, and you may not get another offer.
I understand that the agent is trying to make the most money they can by holding out, but at the same time, if my offer was the only one you have seen in 3 weeks, you would think they would reconsider.
The same goes with sales, shooting down a fair offer to try to make a few thousand more, in this market, is not the best strategy. Qualified buyers are few and far between. Motivated buyers, and tire kickers, yes, there are tons. But actual people with the cash, credit, and willingness to buy, not so much.
I just think some Realtors need to sit back and look at what they are doing, and holding out for, and see if they are making the best decision they can, or are they holding out for a few more bucks, and letting a property sit.

For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

For Sale: 2BR/1BA Single Family House in West Palm Beach, FL, $129,000

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For Sale: 4BR/3BA Single Family House in West Palm Beach, FL, $139,000

For Sale: 4BR/3BA Single Family House in West Palm Beach, FL, $139,000

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For Rent: 1BR/2BA Condo in South Palm Beach, FL, $1,295/month

For Rent: 1BR/2BA Condo in South Palm Beach, FL, $1,295/month

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Lazy Sundays

Lazy Sunday's - Taking time for YOU!

For the Realtors out there like myself, who have been working their butts off lately, and killing it, taking a day off is tough to do. You know you want to, but feel like you might miss that one new client, or deal.
With me, I feel like I am being lazy or not putting in full effort if I take one day off for myself. Before my birthday on August 28th, I had not taken more than maybe a half day off in over 4 months. On my birthday I took the weekend off and went and spent some time with family over in Tampa.
It made me start to think, what is the use in working so hard, if i don't give myself time to enjoy it?
So i made it point to try to take at least 1 day off every other week. Now of course, if I have something that needs to be done, or an appointment that cannot be moved, I will do it. But for example today, all my showings were on Saturday and Monday, and all i had to do was put in a couple offers, and answer some emails. So i did do some work, but I didn't have to do much more than put on some shorts and a t-shirt and sit down at my computer.
While I feel like i owe it to myself to make some time for myself, all day I felt like I was doing something wrong. I was constantly checking my blackberry for messages, and calls.
But now, that the day is winding down, and I actually got to relax and not think about Real Estate for more than a few minutes, I know I am going to be that much more focused and ready tomorrow.
So my point is, I understand the urge to work 24/7, especially when the checks are rolling in, but take some time for yourself and reflect on how much you have been doing, and sit back and enjoy it for a day or so. If you are good, your clients will be there.
;)

What are the Most and Least Affordable Markets?

Most Affordable Markets Ranked
In its annual survey of most- and least-affordable housing markets, BusinessWeek quoted a number of experts who believe that for many people, the current low interest rates and low housing prices have combined to offer a once-in-a-lifetime opportunity to buy a home.

Dennis Torres, executive director of real estate operations at Pepperdine University, says, "People are going to talk about this as 'I could have, I should have' for decades," he said. "If you're confident that you'll stay in the location for seven years and you're confident of your income, don't walk, run."

To calculate the most- and least-affordable areas, BusinessWeek considered the share of homes sold in the second quarter of this year that would have been affordable to a family earning the local median income. Housing costs were calculated using new and existing sales records supplied by First American Real Estate Solutions and include principal, interest, estimated property taxes, and insurance.

Here are the 10 most-affordable areas:

1. Kokomo, Ind.
2. Lansing-East Lansing, Mich.
3. Mansfield, Ohio
4. Elkhart-Goshen, Ind.
5. Lima, Ohio
6. Bay City, Mich.
7. Indianapolis-Carmel, Ind.
8. Saginaw-Saginaw Township North, Mich.
9. Youngstown-Warren-Boardman, Ohio-Pa.
10. Canton-Massillon, Ohio

Here are the 10 that are least affordable:

1. New York-White Plains, N.Y.-Wayne, N.J.
2. San Francisco-San Mateo-Redwood City, Calif.
3. San Luis Obispo-Paso Robles, Calif.
4. Ocean City, N.J.
5. Honolulu
6. Los Angeles-Long Beach-Glendale, Calif.
7. Santa Ana-Anaheim-Irvine, Calif.
8. Santa Cruz-Watsonville, Calif.
9. Nassau-Suffolk (Long Island), N.Y.
10. Flagstaff, Ariz.

Source: Business Week, Prashant Gopal (09/11/2009)

To Low Ball or Not to Low Ball....That is the question.

Everyone as their own opinions on Low Balling. I am one of those people who say, just go for it.

I have had owners of rentals come down over $500 a month before. In a specific case, the listing agent had told me the night before that the owner was firm on the price and would not budge. I spent the next day going back and forth with my clients, who also didn't want to go up much, and the listing agent. By the end of the next day, I had my clients at the price they wanted and they just had to come up with a little more upfront. We had to adjust a few other things, but at the end of the day, the owner came down over $500. My clients got an amazing home, the owner had a tenant, and it all came from a Low Ball Offer.

I've had the same luck with sales. In the midst of all the Short Sales and REO's, there are still normal sale steals out there. I just found a client of mine one. A reasonably priced normal sale. The Short Sales in the area were selling for much less, of course, but the property was still close to being worth the asking. Regardless, we offered 90k less than asking on a property. The owner accepted by the end of the day. My client was amazed. The owner was not in foreclosure, the property was paid for. She just saw that there was a decent offer from someone with plenty to put down and was pre-approved. The unit was built in 06, and the owner paid more than twice what my client was paying. We then found out that the property was only lived in for about 2 months by a friend that was in town for work. So the property was basically brand new. Inspection passed, underwriting was ready, and we closed in less than 30 days. And it all came from a Low Ball offer.

For the Realtors out there that get personally offended by Low Balls, I just have a question: Why?

I work with a lot of investors who like to put in Low Ball Offers, and I'm not one to tell them not too. But lately I have been getting emails and voice mails from Realtors that were so upset with our offer that they felt the need to tell me how wrong and disrespectful I am. Telling me they wouldn't even show it to the owner, and how they have much better offers. Meanwhile, a month later, the property is still listed, and not sold. Its not anything personal against the Realtor, its just a buyer trying to get a steal, all you have to do is say, No. No need to tell me how you feel about me and my client. We know its a Low Ball Offer, we know the property may be worth more than our offer, but that is just what they want to offer.

:)

Pet Peeves about Realtors

As most people will tell you, not all Realtors are the same.

I like to think of myself as one of the good Realtors out there. I get back to my clients on time, I get back to other Realtors about questions and showings, and I keep up with the tons of emails and voice-mails that I get. Do I miss a message, or email now and then? Of course, no one is perfect. But the point is that I make it a point to do my best. And my clients let me know how much they appreciate it, and how I am not like other Realtors they have worked with.

Lately I have been running into a lot of Realtors who just are not on the same page as me. It amazes me how some of them work. I was trying to do a short sale deal with a Husband/Wife Team, and they only worked mon-fri, 9-5, and were very slow about getting back to me. How do you expect to close deals when you put in so little effort. For example, If I call for showing instructions in the morning, for a showing at 6pm, there is no reason you cant pick up the phone and make a 1 minute call or send a text and give the instructions. Not only does it make you not look irresponsible, but it also affects my business, as I cannot show the property to my client who was clearly interested. Then, you have the Realtors that don't even respond to offers. About 2 weeks ago I put in an offer on a short sale that has been on the market for months. Yes it was a lower offer, but it was also from a client paying half cash, and was already pre-approved. After numerous emails and phone calls, I cant even get this agent to acknowledge that he received the offer, much less his thoughts on it. Meanwhile my client is just sitting back waiting, looking for another property, but that was the one he liked most. And finally there are the Realtors that NEVER update their mls. I'm sure we have all looked online at showing instructions, and they said go and show, vacant, etc, and then get there and its either rented or sold. That has happened to me too much lately for me not to say anything. It happened with 2 rentals, where I showed up to find the new tenants already living there. The showing instructions said "no need to call, go and show, vacant on supra." So of course I call the listing agent and ask what was going on and they proceed to tell me the property was rented a few weeks back and they had not updated their listing. How irresponsible is that? I took a buyer to a property a few weeks back, where the listing office had given me the showings just an hour or so before personally. So we show up to the house, and the NEW OWNERS are already moved in and living their! So again, i call the office, and they tell me first, that I'm at the wrong unit, no I'm not. Then they say that the unit was sold LAST MONTH, and they had never changed the listing to contingency, pending, or sold. Very frustrating.

This is not the market of a few years ago where deals were just falling into peoples laps. If you want to make it in this market, you need to put in the work. I have seen too many realtors in the area either stop doing real estate all together or have to get 2nd jobs. This is all I do, 24/7, and I am busier that I have ever been. Im making more money than I ever have. And Im loving what I do more than ever.

7 Tips for First-Time Home Buyers

7 Tips for First-Time Home Buyers A year after the financial collapse of 2008, the housing market is very different than it was before the foreclosure crisis. Here are seven bits of wisdom from economists and financial planners for anyone contemplating a home purchase today: Old-fashioned basics are more important than ever. The safest way to purchase a home is to put down 20 percent on a fixed-rate, 30-year (or less) mortgage. Don’t become overconfident about income growth. Even though buyers in their 20s and 30s will likely see their incomes grow more quickly than previous generations, it is important to act sensibly when borrowing. Anyone contemplating adding children to the family should calculate whether they could live on one income because having both halves of a couple work may turn out to be impractical. Include a maintenance budget. Even new homes need upkeep and repairs. Buyers who can't afford their dream home now should opt for a starter home where they can save money each month for what they really want. Consider a property that can be expanded and improved down the road when money is available. No two buyers are the same, but they should all feel confident with the loan they enter into, no matter the size of the mortgage.