Monday, June 29, 2009

Determining Your Offer Price

When you prepare an offer to purchase a home, you already know the seller’s asking price. But what price are you going to offer and how do you come up with that figure?

  1. Determining your offer price is a three-step process.
    First, you look at recent sales of similar properties to come up with a price range.
  2. Then, you analyze additional data, such as the condition of the home, improvements made to the property, current market conditions, and the circumstances of the seller. This will help you settle on a price you think would be fair to pay for the home.
  3. Finally, depending on your negotiating style, you adjust your "fair" price and come up with what you want to put in your offer.


Comparable Sales
The first step in determining the price you are willing to offer is to look at the recent sales of similar homes. These are called "comparable sales." Comparable sales are recent sales of homes that compare closely to the one you are looking to purchase. Specifically, you want to compare prices of homes that are similar in square footage, number of bedrooms and bathrooms, garage space, lot size, and type of construction.
If the home you are interested in is part of a tract of homes, then you will most likely find some exact model matches to compare against one another.

There are three main sources of information on comparable sales, all of which are easily accessed by a real estate agent. It is somewhat more difficult for the general public to access this data, and in some cases impossible. Two of the most obvious information sources are the public record and the Multiple Listing Service.

Information provided by realestateabc.com

Mortgage Rates flat

The 30-year fixed-rate mortgage averaged 5.42 percent with an average 0.7 point for the week ending June 25, 2009, up from last week when it averaged 5.38 percent, according to Freddie Mac. Last year at this time, the 30-year FRM averaged 6.45 percent.

Friday, June 19, 2009

Foreclosures Fall in May

Information provided by RealtyTrac, June 2009

Foreclosure filings fell 6% in May from April, according to RealtyTrac, a provider of foreclosure data. "A total of 321,480 properties received a default or auction notice or were repossessed in May, up 18% from a year earlier," said RealtyTrac in a statement. The 18% rise is the smallest annual gain since mid-2006. Foreclosure filings have crossed 300,000 in each of the 3 months until May, and according to experts the total number of foreclosure filings may cross 1.8 million in the first half of this year.

Nevada had the highest foreclosure rate with one in every 64 households, more than six times the national average. California ranked second at one in 144 households and Florida had the third-highest rate at one in 148 households. The national average is 1 in 398 households. With unemployment reaching a 25-year high, economists do not expect any reduction in foreclosures in the near-future. "The foreclosure bucket is filling faster than it's emptying," said Jay Brinkmann, chief economist of the Mortgage Bankers Association. "It will continue through next quarter at least." According to analysts at JPMorgan Chase & Co., home foreclosures in the U.S. will total 6.4 million by mid-2011, and inventories of foreclosed homes awaiting sale will peak in mid-2010 at 2 million properties.

Thursday, June 18, 2009

Million Dollar-Plus Market Shows Signs of Life

NAPLES, FLORIDA (June 4, 2009) — According to John R. Wood Realtors, there is a renewed
interest among buyers in the luxury home market as sales of properties priced above $1 million
become more prevalent. After seeing sales in this sector considerably drop off late last year, the Wood Company reported increased activity in 2009, with 74 sales so far this year. While the majority of the sales are between $1 and $4 million, two were well above $10 million, and several are in the $5 to $10 million dollar range.

There is no denying that strong buyer activity exists throughout the low end of the real estate
market, but with bargains to be found all along Southwest Florida’s coast, the luxury home
segment in Naples, Bonita Springs and Estero is coming back to life. Sunshine MLS shows homes priced at $1 million and up drawing little activity during the third and fourth quarters of 2008, reporting less than 120 pending sales during each quarter. However, first quarter 2009 saw a signifi cant increase in pendings within this sector with Sunshine MLS reporting 184 units became pending sales.

When compared with the same time last year, pendings still fall a bit short from the 250 total of
fi rst quarter 2008, but the increase is promising, in part because a good portion of the sales
occurred after the traditional “end of the season”. Neighborhoods to note include the affl uent
area of Port Royal which has suddenly sparked motivation among buyers as 10 pending sales
were reported during April 2009 alone. This even surpasses the number of pendings back in
April 2005, when the market was considerably stronger. Even Bay Colony, a million-dollar-plus market that has been reporting one pending sale monthly since mid-2005, recently shows two and sometimes three pendings per month.

Regardless of price, it is important to note that residential pending sales are at their highest
levels in four years. In April 2009, 1,441 units went pending, a signifi cant increase over the
same time last year which had 929. In fact, since November 2008, pendings have constantly
increased every month.

John R. Wood Inc., Realtors has eight offices throughout Collier and Lee counties and
approximately 300 agents. After 50 years in business, this oldest major Naples real estate
firm still focuses on legendary customer service, innovative marketing, and superior use of
emerging technologies.

Reprinted from Florida Weekly, June 11th

Wednesday, June 10, 2009

May Market Report for Naples, Bonita Springs and Estero

Follow the link below to view the May Market Report for Naples-Bonita Springs-Estero areas. You can access a print quality version of the report via the following link:

http://www.myjrw.com/documents/forms/marketreportMay2009.pdf

Please remember that all comments about the numbers are at the bottom of the report.

Of particular note this month is the increase in pended sales in the $1,000,000 - $2,000,000 price segment. This is the first month this year that we have seen an increase over prior year in the over $1,000,000 category. Based on recent increases in showing activity, this could signal the beginning of a return to a more normal market for sales of luxury properties in this price range.

New listings and inventory levels continue to decrease over prior year, while pended and closed sales continue to post gains. Pended sales for the month of May are the highest for the month since May 2005.

Information is power, and with the right information, you can make informed buying and selling decisions that fit your objectives.

Information provided by
Dottie Babcock, CCIM, CRB
Chief Operating Officer
John R. Wood Realtors

International Home Buyers

I came across this interesting article the other day...

Here's the excerpt about SW Florida:

"In summary, Florida real estate and, in particular the Southwestern Florida areas of Sarasota - Bradenton and Fort Myers - Naples, are benefitting from an influx of international home buyers. This bodes well for future Florida real estate activity. It suggests that even as U.S. buyers may still be uncertain whether or not it is time to step up to the plate and buy a home or condominium in Florida, international clients are showing more confidence in an early Florida real estate market recovery. It further suggests that those who delay buying their dream home in Florida may soon find that they have to pay considerably more for the same property in just a few months."

Here's the full article:

http://www.glgroup.com/News/Foreign--Domestic-Investors-Positioning-For-Florida-Distressed-Real-Estate-Deluge-40111.html

Free Coupons for Local Restaurants and Business

Here is a new local coupon website that has great deals for Naples' restaurants and businesses.

http://www.thesavingspost.com/

It's Free and easy-to-use. You can print the coupon or text message the coupon to your cell phone. Just put in your zip code and the coupons will come up. They are mostly for Naples right now, but there are a few in Ft. Myers too.

Monday, June 8, 2009

Home affordability tops with buyers

When it comes to finding a home, affordability beat out location as a top requirement for Americans when searching for a new home, according to a study by Roost.com. A wave of practicality driven by harsh economic times has forced location-the former No. 1 home-buying factor-to take a back seat in the process, and has created nationwide consensus when it comes to this emotionally-charged activity.

In an Opinion Research poll, the No. 2 consideration was finding a home in the right location or community. This can be compared to a survey conducted by Kelton Research in 2005, prior to the recent economic downturn, in which a full three out of four Americans (72 percent) stated that when looking at available property, the neighborhood was more important than the house itself. The survey also revealed that on average, homebuyers spend a significant amount of time researching potential homes to buy online - a full eleven and-a-half hours per week, a number that is even higher for women. This is no surprise for those familiar with the industry. Homebuyers in the Northeast spend the most time researching prospective homes at 15.2 hours per week.

Source: REAL Trends #1109. June 5 2009

Citizens Property Insurance Rates

Governor Crist signed an insurance bill yesterday which will increase Citizens Property Insurance rates.

HB 1495 by Rep. Bryan Nelson gradually ramps up premiums for policyholders in the state-run insurance pool to put it back on more solid footing. The bill allows Citizens to gradually raise rates by 10 percent per year until they are considered actuarially sound.

Lawmakers repealed a requirement that sellers of property located in a wind-borne debris region, with an insured value on the structure of $500,000 or more, must provide prospective buyers the structure’s windstorm mitigation rating. The change is effective Jan. 1, 2010.