destin florida real estate

Buying Real Estate “as-is”

Jun 23rd, 2011
by edsmith.
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The term “as-is” in real estate can be misleading. Basically, if a property is promoted as such, the seller is simply stating that he/she does not intend to be obligated to make any repairs.

In such a transaction, the buyer is typically afforded the opportunity to inspect the property, and then withdraw should the inspection results not be satisfactory.

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

Property insurance companies seeking increases

Jun 13th, 2011
by edsmith.
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More than a dozen insurance companies have asked Florida regulators to approve rate increases. Despite five years with no hurricanes, more requests are expected as insurers line up like cattle at the trough. Should rate increases be approved, it would affect inland markets like Tallahassee and Orland as well as the coastal communities like Destin and Rosemary Beach. Former health care CEO Governor Rick Scott is more sympathetic to the insurance industry than was his predecessor Charlie Crist.

For more information on real estate related issues, visit Ed and Terri Smith at http://www.DestinFloridaRealEstate.com

How long after a short sale can I qualify to buy a new home?

Feb 8th, 2011
by edsmith.
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The answer depends upon which type of financing you wish to pursue. After completing a short sale as a seller, for example, VA and Conventional (Fannie Mae and Freddie Mac) mandate a two year wait. Another arm of the federal government, FHA, mandates three years.Non-conforming products such as that for jumbo and condo loans can be almost anything, depending upon the individual investor. From what we are seeing in the market though, non-conforming loan investors are requiring waiting periods of somewhat longer than that of the government sponsored loans. We have seen waiting requirements for non-conforming loans of from five to seven years. You may also expect higher than average down payment requirements.

To be on the safe side, short sale sellers should be prepared to face greater levels of credit scrutiny for a period of up to seven years after the successful completion of a short sale.

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.

I have been thinking of getting my real estate license. Is now a good time?

Jan 23rd, 2009
by edsmith.
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Now is a good time to learn, but not a good time to earn. For the entire year 2008, an average of less than 2 sales occurred per each local Realtor agent, as was reported through our local MLS.  
 
So, as an average agent, you might reasonably expect average results. As to what that would equate to in actual income, those average performance results would provide you with annual earnings of something well below the 2008 poverty line. You know that old saying, “Don’t give up your day job!”

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