Do Foreclosures Set Market Values?

NO! Foreclosures do not set the market value for surrounding homes. The value of a home is determined by the sale of silimar homes in the past six months; not a foreclosure! Click on the title of this blogg to read the rest. NW FL Home Values

I recently had a potential buyer tell me the house down the street sold for thousands less so the listing I represent should sell for a lot less. Excuse me, the house down the street was a foreclosure. Some lucky buyer made out like a bandit on a beautiful home because an investor jumped into the resell market too late to take advantage of rising prices several years ago. That does not mean the value of the home is less, it means payments were not made on the original mortgage and the lender is recooping as much of their loss as possible.

There are a few cases where a home owner has lost his/her income. (I feel sorry for those guys and do what I can as a Realtor to assist them in selling their home before foreclosure) BUT! I have found that in most cases a foreclosure is caused by a bad business decision on the part of lenders who do not fully (deliberately??) explain future payments and buyers who make a decision to take a mortgage without making sure they understood the fine print.

So, if you are wondering if your home is worth less because the one next door foreclosed, don’t loose any sleep over it.

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Gulf Breeze, Pensacola, Navarre. Florida is Affordable!

My day is always started with the daily newspaper, in print and online. I enjoy the editorials, some make me think, some make me mad, and some just give me a good laugh. One of today’s editorials prompts this blog. Another Realtor earned some free advertising (I plan to write my on letter to the editor) with comments about a new development scheduled for Pensacola, stating we already have too many homes on the market. I am sure the article about a new development in Pensacola for being designed especially for our hardworking service providers like police and firemen with ”affordable”‘ homes (250+ Priced $125,000-$150,000??) to be built made a lot of deserving, hard working, people smile; but, I also bet it made a lot of jaws drop, especially those of us who depend on the housing market for our livelihood and know there are literally hundreds of very affordable homes available. To be fair, the new development came about because there was no affordable housing after Hurricane Ivan. Back then, Pensacola really did need affordable homes. Back then, the cost to build was way up with sub contractors in demand (driving labor costs higher than I have ever seen here) and material costs skyrocketing. Back then, ‘affordable’ homes would have filled a much-needed niche. That was then, this is now. Just goes to show you how long it takes for the wheels of progress to get moving.

Today there is an over abundance of affordable homes available in Pensacola, Gulf Breeze, Navarre. Many New Homes! I represent one of the areas most respected builders, Coogle Homes LLC. Coogle offers affordable new homes and has been building homes in NW Florida since 1985. Right now, Coogle is offering buyers eight different floor plans, priced from $142,900-$161,900 (which includes the land) in Gulf Breeze. I have been serving this area as a Realtor for almost 15 years and there is only one thing our local governments can do to assist in housing: “Put a moratorium on new housing developments” and allow homes on the market an opportunity to sell. Other areas have done this and it boosted the housing economy, helping all who depend on it.

Our local economy can only handle what buyers are willing to pay and qualified to purchase. I am glad to see Lenders sticking to strict lending policies (as they should have been all along). I am also beginning to see savvy Sellers allowing we experienced Realtors to price listings at market value instead of wasting everyone’s time and money hoping for some dummy to come in and pay more than a home will appraise for. Buyers also need to accept that a great deal is market value.

Julia Braddy, Realtor, Sales Marketing in Gulf Breeze www.GulfBreezeHomes.com
Direct: 850.916.7833 Email: julia.braddy@gmail.com
Marketing & Representing www.CoogleHomes.com in Northwest Florida
Reseller for innovative advertising www.TextMyMLS.com throughout the Florida Panhandle

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Gulf Breeze, Pensacola, Navarre. Is now a good time to sell?

Considering placing your home on the market to sell in Gulf Breeze, Pensacola, Navarre? Depends on why you want to sell and what you have to sell, where it’s located, what kind of condition it’s in; most especially how well it’s priced for today’s market. Recent market trends do not paint a rosy picture for home sales in NW Florida. Still, some homes are selling to savvy buyers looking buy a well-priced home with a low-interest-rate mortgage. In my experience, spring is the season when more home sales take place. The same is true this year, with more homes to choose from.

Is a career move making your decision for you? Please take a serious, realistic look at market trends and price accordingly. Choose an experienced Realtor who will be bluntly honest with you and is not just looking for another house to list. A Realtor who has been working in the Florida panhandle over 10 years will have experienced a similar market in the early 90’s and should be better prepared to assist you in competitive pricing.

Today’s Buyers do not feel any urgency in placing an offer because there are so many homes to choose from. Sellers need to provide an enticing incentive to motivate a buyer to place an offer and price is key.

If you are a Seller who is not motivated to sell at market value, whatever that might be, you should seriously consider waiting until the market can handle your expectations. When will that be? Some economist are predicting a turn around in the housing market by 2010. No-one knows for sure what will happen, prices could fall even farther before a turnaround. I do not expect our area to hit the highs we experienced in 2005-2006 anytime soon.

Some things a Seller must consider: Is your home in the kind of condition that will maximize your return on the sale without a lot of time and money on your part? Are you willing to spend the time and money to prepare your home to compete with new/newer homes? Will you be competing against new homes that still waiting for a sale? Are you realistic about market conditions? Your situation may require you putting your home on the market now. If so, get your home ready to sale. Study the local market carefully. Make sure you have an agent who keeps you informed about sales in your subdivision and in your area (visit www.GulfBreezeHomes.com and click on “MLS Market Updates and Trend Analysis” to stay informed about properties within a 5 mile radius of your home). When pricing, listen to your experienced Realtor and choose a list price that will interest potential buyers. Insure your home looks fantastic with curb appeal, cleanliness and maintenance.

I have written a “Sellers Guide” for those who list with me, answering questions about preparing for a showing, pricing, staging, marketing, from listing to a closing sale.

Julia Braddy, Realtor, Specializing Sales Marketing in Gulf Breeze, Navarre & Pensacola, FL www.GulfBreezeHomes.com
Direct: 850.916.7833
Email: julia.braddy@gmail.com
Marketing & Representing www.CoogleHomes.com in Northwest Florida
Innovative Advertising www.TextMyMLS.com for the Florida Panhandle

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A Beautiful Easter Weekend in Gulf Breeze, FL

It was a beautiful Easter weekend in Gulf Breeze, FL with all kinds of activities for everyone. Sunrise service on the Gulf was amazing. (You may view photos on the Pensacola News Journal site) I took loads of photos of the beautiful arts at the 14th Annual Appreciation of the Arts Show in Gulf Breeze and my camera did not cooperate! I do apologize to all the artists who allowed me to take photos and will be placing links to your online galleries through my website sometime this week. Every year, the art shows in the Pensacola area get better and better.

For those of you wondering about the cost of insurance, we have just had to change policies on two of our rental properties and it was not difficult nor expensive. Come see our beautiful area and experience the beauty and all the wonderful things to do. Thinking about buying? Visit my web site www.gulfbreezehomes.com, click on property alerts, and receive constant updates directly from the Pensacola MLS. When you are ready to purchase, I will assist you with insurance quotes and you will be surprised!

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Good things are happening in Poly Isles

If you haven’t noticed, the stormwater vaults are being installed. The weir will be coming out. The channel will be dredged and boating will be improved. Hope that helps the housing market around here.

Looks like the County is finally doing something about stormwater runoff east of College Parkway too.

Oh by the way, we also just renewed our homeowners insurance and guess what? We were able to find a company that actually offered LOWER premiums than last year.

Our property taxes are going down and the Midway Fire District was told in no uncertain terms that we don’t want a flat rate fee.

So what’s the problem with housing sales? Let’s hope all that snow and yukky weather up north will motivate some new retirees to break loose some of that savings for a rainey day and discover the really good deals that are available now.

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NW Florida is a Great Place to Live

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What’s the deal on Foreclosures?

We have all been reading and hearing about foreclosures popping up everywhere. If you see one you are interested it, there are certain things you need to know. The first thing I would like to clear up is the common misconception many shoppers have that suggests you can pick up a foreclosure for .40 to .50 cents on the dollar.

In a market like we are seeing, you might think banks would be happy to see any offer, even if it is low. However, the federal government strictly regulates how much the banks can lose so don’t expect any low offers to be accepted. An offer within a 5% margin of the asking price has a decent chance of getting accepted. The end of the year might bring some exceptions to this rule.

When submitting your offer on a foreclosed property, you will need to have your financing in line. Every offer must include a pre-approval letter if the property is being financed. If you are paying cash, they you will have to include proof of your funds.

Each bank will have its own addendum’s that they want the potential buyer to sign and add to the offer. These addendums are written to accommodate the laws in all 50 states, so they can be pretty exhausting reading, but do read what you are signing. You will have to sign them if you want your offer accepted.

Another thing about bank owned real estate; they are all sold in “as is” condition so hire a professional home inspector. Most foreclosed properties have the utilities turned off, so when you do your inspections, you will need to turn the utilities on in your name so you can inspect the functionality of the home.

If you are using a lender, things can start to get complicated. All conforming and government backed mortgages like FHA,VA and Conventional mortgages require the home to be in good condition. If the appraisal reveals problems to the home like wood rot, broken windows, or roof damage (to name a few), the lender will not fund the transaction until these items are repaired.

Since the bank will not make any of the repairs, you will have to handle the repairs out of your own pocket or you will have to pay cash for the home. If you decide to handle the repairs, you will have to hire a licensed and insured contractor due to the bank’s liability. In fact, some banks will not allow repairs at all because they just don’t want to be liable for any accidents which could occur on the property during the repairs. To avoid the whole repair issue, ask your lender for a non-conforming product or pay cash for the property.

There are some other points to consider also. Most banks want to close quickly. They watch their bottom line daily. When making your offer, schedule your closing date within 30 days. Be sure your lender (if you use one) is on top of their game because most banks will charge the buyer a fee for every day it takes to close after the original closing date.

And one last thing: When your offer reaches the bank (seller), it will probably be put on a stack of hundreds of files. The people who work on your file have strict guide lines to follow. They work each file the same, over and over. You just don’t have a face with a system like this. There is no humanism here. No emotion, just files and they have to be a certain way or they get kicked back.

As long as you are prepared for what the banks are looking for, and you have an experienced Realtor, you can have a smooth transaction. You just have to play by their rules. There are lots of great deals on Real Estate out there. Right here in Gulf Breeze, Navarre and Ft Walton Beach, there are many great deals on the market. Many of them are bank owned foreclosures. To find great real estate bargains in Gulf Breeze, Navarre, and Ft Walton Beach, go to http://search-panhandle-homes.com.

One more important tid-bit: Bank owned properties are not “Short Sales”. Short sales are a completely different type of real estate purchase and carry a whole new set of rules. Actually, each short sale transaction has its own set of rules. Short sales are much more complicated and time consuming than foreclosures. If you are going to deal with a bank, it is much easier once the home has been foreclosed on.

Jon Payne is a Licensed Florida Real Estate Agent with Navarre Beach Realty, Inc. You can reach him by email at jon@jon-payne.com or on his cell at 850 259-9765. http://Jon-Payne.com

For great real estate bargains in the Florida Panhandle, to go to http://search-panhandle-homes.com.

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Gulf Breeze, Florida Market Trends

My real estate phone is ringing more and more with questions from buyers and sellers wanting to know if we have bottomed out with pricing or if it is time to buy. Have we hit the bottom? The investment side of me is screaming, “I do not want to take the chance that it has not because houses are priced right where they would have been without the spike in values in 2005 & 2006.” Fact, our local economy sets the pace and everyone must accept the current market value of our homes. Buying? I would NOT wait. Do it now. Make an offer. Want a ‘deal’? There are deals to choose from, call me: 850.916.7833 or text me: 850.686.2963 or visit my website www.GulfBreezeHomes.com and click on “Property Alerts”. I won’t bug you; but you will receive constant information you want!

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Now is the time to buy land in Navarre.

This is the time to buy land in Navarre. Homes are priced so low in this area, it hardly seems worth going through the hassle and expense of building. You can buy an existing home in Navarre for well under $95 a square foot, yet try to buy a lot and build on it for that.

That is the reason residential lots are just sitting on the market without movement. Some listings last for 2 years or more. These sellers are getting anxious and are ready to sell their properties at bargain prices.

I have heard sellers say it many times, “I don’t want to come down (in price), I want someone to bring me an offer”. What they are saying is, they are willing to drop the price of their real estate, but they want to see some interest first.

There are some great property bargains to be had. This is the time to buy. Go to http://search-panhandle-homes.com to find more great deals. Be sure to click on Navarre. If you have never heard of Navarre or Navarre Beach, it is located between Gulf Breeze and Ft Walton Beach.

Another reason to buy real estate in Navarre is that it is an up and coming town. In the last several years, there has been an influx of foreword thinking people move to the area. I predict this progressive new community will make Navarre and Navarre Beach a place that everyone will want to live in.

Most of the homes in Navarre have been built since the mid 90’s, so the homes are mostly new. Even through the recent “bad times” in real estate, many builders were still constructing single family homes in Navarre. Sure it has been slower than the boom years of 2004-2005, but we are still selling homes.

The good news for shoppers is that now is the best time to buy. Lots are hard to sell, so property owners are willing to negotiate. Homes are selling for less too. The inventory is higher than the demand. Buyers might have as many as 100 homes in their price range to look at.

How do they narrow the search? First they narrow the selection by price and size. Then they look for amenities like maple cabinets, granite counter tops, tile floors, fenced yards and swimming pools. This high inventory is a problem for the sellers, but an advantage for anyone considering buying real estate in Navarre.

Rates help the buyer even more with FHA rates at 5.875%. Even better is that Navarre qualifies as a rural housing area. Rural housing loans are at 5.5 today and VA loans are at 5.75. These rates are awesome. Even if a buyer wanted to go conventional, they are only looking at barely over 6% without a buy down!

It will be hard to sustain these low rates. I predict them to rise some in the near future. As the Feds lower the rate, investors tend to move their money out of mortgage based bonds. Historically, when the bonds suffer mortgages rates rise. This is just another HUGE buying sign.

Mortgage rates rise much faster than they fall. Once they go up, so will mortgage payments, even if real estate prices drop even lower.

Jon Payne
Navarre Beach Realty, Inc.
www.jon-payne.com
jon@jon-payne.com
850 259-9765

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City Lifestyles

What are the lifestyle opportunities in and around Gulf Breeze, Florida. Are there hiking clubs, biking trails, civic clubs, golf clubs, local arts and theater, lakes, streams, fishing, boating, camping or other types of lifestyle opportunities?

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