Buyers

Where are all the foreclosures?

Apr 27th, 2011
by edsmith.
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Many buyers are asking about the lack of inventory in the foreclosure arena today as compared to last year. Buyers are finding fewer foreclosure choices in the market to choose from.  So what’s causing the shift? 

A couple of factors are contributing to the lower inventory levels. First, the market activity in single family homes is up 20% Y-T-D over last year in Okaloosa County. Secondly, foreclosure (lis pendens) filings are way down. Through March, there have been 192 foreclosure filings this year as compared with 573 for the same period in 2010.

For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com  or email us at smith@realtor.com

I made an offer on a house asking the owner for a seller’s disclosure. The seller refuses to provide one. Isn’t this legally required?

Mar 6th, 2011
by edsmith.
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In Florida, a seller is not legally obliged to provide a real property disclosure to prospective buyers. However, a seller is legally required to disclose known facts that materially affect the value of the property. In some situations, a seller may be unable to provide disclosures, such as that of a trustee owned or bank owned property. Your sales contract should always provide for thorough home inspections prior to closing.

If I am buying a house and the appraisal comes in $50,000 low, does the seller have to sell it to me at that price?

Oct 20th, 2010
by edsmith.
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Typically, the seller would have the option of selling at the appraised value, allowing the transaction to proceed as otherwise planned. However, the obligations and rights of both buyer and seller are dictated by the terms of the sales agreement. Review your specific contract language as pertains to appraisal contingencies with your Realtor or attorney to determine what options are available.

If the market is so slow, why is every property that I call about already under contract?

Sep 1st, 2010
by edsmith.
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You must have good taste in real estate!  It is not so much that the market is slow, rather that values are simply soft. With all-time record low interest rates and attractive asking prices, competition amongst buyers and investors for good deals is very strong right now.  We regularly receive multiple offers within the first week on new listings. To take advantage of the best deals out there, you must know the market and then be able to move quickly.

I was told that I don’t need a survey if I’m paying cash for a home in a platted subdivision. True?

Aug 9th, 2010
by edsmith.
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No. If you purchase a property for cash that has an existing encroachment (or two) you could have real problems when you try to resell in the future. Yard buildings, driveways, fences, easements, swimming pools and even roof overhangs can all be sources of frustrating encroachments. 
 
We once saw a case in which the house itself was built 15 feet over the neighbor’s property line. Had the buyer elected to pay cash without the benefit of a survey, they could have ended up with a lot of cash tied up in a property that they could neither sell nor even borrow against. Their equity would be frozen indefinitley.
 
One other option. Many title insurers wil accept a prior survey. That is, so long as the seller is willing to sign a sworn affadavit at closing stating that nothing has changed to affect the boundaries since that prior survey was drawn. 

Alive and Well Despite BP and the Media

Jul 16th, 2010
by edsmith.
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So, BP has finally succeeded in capping the Deepwater Horizon well … While that is great news, there will still be little mention in the media of the fact that our beaches here along the Emerald Coast are oil and tar ball free.  Over the past two weeks, Terri and I have traveled by boat from Perdido Key to Port St. Joe.  The only oil we have seen is called Banana Boat or Coppertone or No Ad, etc etc … And it was most definitely smeared all over the beachgoers, locals and tourists alike.

 

The cable news networks have been bad enough in their irresponsible coverage of this event, but what about the print media!!! My God!! With huge declines in readership and shrinking ad dollars, some of the print media has been the most reckless and desperate of all. Photos of sludge on the beach at Grand Isle Louisiana with headlines indicating it to be Florida??? Criminal!!

 

Even more criminal is the fact that BP is NOT paying reasonable claims as they would like to have everyone believe. Dragging their feet and digging in their heels, these Keystone Cops are going to deny the majority of legitimate claims.  When BP says “We are going to make this right”, it really means “If you don’t like it, sue us”.

 

After nine consecutive months of increased sales transactions over the previous year, the month of June fell flat. That is because there is a 30 – 60 day lag between cause and effect in real estate sales. The impact of April and May will be felt in June and July.  Over time, the public will come to realize that all is well and that life is still good on the Emerald Coast.   Most Gulf Coast regulars are already aware but had already cancelled their plans for this year. So business-wise, fall and winter will most likely be fairly normal.  By spring, business should be much improved. Time will tell.  It always does.

Flood Insurance Floats Again

Jul 7th, 2010
by edsmith.
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For the fourth time since last December,  Congress and the Senate have agreed (imagine that) to temporarily extend the National Flood Insurance Program (NFIP),  just as Hurricane/Tropical Storm Alex struck the Texas Gulf Coast. The measure to reauthorize the federal flood insurance program is only good through September 30, 2010, at which point Congress and the Senate may very well allow it to again expire. The President is expected to sign the current legislation.

During these lapses, new flood insurance policies could not be issued. Now that the program is temorarily reinstated, new and renewed policies are effective retroactively. There is a 30-day waiting period after issuance of a new policy before it takes effect,  unless it is issued in conjunction with a purchase. The rationale behind this is that homeowners may purchase flood insurance in the case of an immediate threat, only to cancel after that threat passes.

ED AND TERRI SMITH RANKED #5 IN FLORIDA

Apr 1st, 2010
by edsmith.
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Broker/Owners Ed and Terri Smith were recognized by RE/MAX International for their ranking as #5 among all residential real estate teams in Florida Y-T-D through April 30, 2010. Long time top producers in the local real estate market, the Smiths closed 92 real estate transaction sides in 2009.  Additionally, the Smiths were ranked  #9 in the state of Florida by RE/MAX International for 2008 and 2009. 
 
The Smiths opened their first RE/MAX office in Destin 20 years ago, April, 1990. They just relocated their office to the old “Cox and Young’ building on Highway 98 in the heart of Destin between McDonald’s and Golden Corral.  “Cox and Young opened in 1973 and was the first recognizable real estate office in Destin” Ed said.  “The visibility is great and the walk-in traffic is excellent. The move was a great decision!”
 

RE/MAX operates 7,000 offices in 80 countries worldwide which is an international presence far greater than any of its competitors. RE/MAX has been honored as the leading real estate franchise for nine of the last ten years by Entrepeneur Magazine.

$8,000 First Time Homebuyer Tax Credit

Mar 5th, 2010
by edsmith.
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Q: Is there still time to take advantage of the $8,000 first time homebuyer tax credit?  
 
A: Yes there is. The first time homebuyer tax credit was extended last year and now effectively expires on April 30, 2010. However, if you enter into a binding sales agreement before April 30, you may have up until June 30, 2010 to actually close. More details are available at  http://www.federalhousingtaxcredit.com/faq1.php

February Update

Feb 17th, 2010
by edsmith.
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The news of the day is the relocation of our office this month. We recently executed an agreement to lease our Main Street building to First Florida Bank. That building is 8,500 square feet and was originally built for specific use as a bank. With the vault, drive-thru lanes, night deposit and fire-proof rooms still intact, it was perfect for a bank that needs to move in a hurry.
 
So, we have moved our office into another building that we own at 725 Harbor Blvd, less than 2 blocks west of our former location. It is just less than 4,000 square feet and is perfectly suited for our use. This building was Destin’s first real estate office back in 1973 and was then called Cox and Young.
 
We are excited about the new location and the increased exposure we will gain from the Highway 98 frontage. We are easy to find — We are situated directly between Golden Corral and McDonald’s!
 
Also of note is the fact that Terri and I are ranked as the number 6 residential team in Florida by RE/MAX for 2009. The December stats will not be released until after the RE/MAX Int’l convention next month, so our final ranking may go up or down a little.
 

The Economic Front

Good news as interest rates continue their downward trend. 30 year fixed rates are now hovering around 4.75%. 5-year ARM’s are around 3.75%.
 
More good news … There are fixed rate jumbo products (stimulus) in the 5.25% range. These are loans that exceed $417,000 but are less than the established limit for the county within which the property is situated. The individual county limits may be viewed at:

 
With even lower interest rates and still declining real estate values nationwide, the housing affordability index is off the charts.

 
So, you would think that with housing affordability at an all time record high, homes should just be flying off the shelves, right?
 
Unfortunately, the credit markets are still tight and mortgage insurance is still non-existent, with the exception of course of government programs such as VA, FHA, and (Freddie Mac) Rural Housing. Consequently, cash buyers are taking advantage of the best deals out there on the market.
 
Condo financing (overall) is still about as tight as a vault door. A few portfolio programs are available and a limited number of investors are offering some end-user funding for certain individual condo units. The mortgage market has improved, but it still has a very long way to go.

The Local Trend
January was the fifth consecutive month of increased sales transaction numbers as compared with last year. As you can see from the reports below, single family, residential lots, condos and townhomes are all up.

 
There was a single $23,519,400 sales transaction for 116 condos at Waterscape on Okaloosa Island that skews the data. It appears to be a partnership buyout, so there is no significant resulting impact on market values.
 

Increased numbers of distress sales are expected, but 2010 should see continued improvement. Sales numbers are rising and appreciation may be slowly coming into focus.

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