Homebuyer – Tips for Negotiating

Of course, negotiating is a huge part of the homebuying process.  There are some principles that are universal, though.

You’re in a strong bargaining position if:

• You’re an all-cash buyer

• You’re already preapproved for a mortgage

• You don’t have a home that needs to be sold before you can buy

These circumstances give you a little more leeway in negotiating. However, even if you are in a strong position, in a “hot” market, you may want to make your offer more desirable by offering more than asking price. When the market is “soft,” homes tend to sell more slowly, creating a larger pool of homes from which to choose. On the other hand, when the market is “hot,” there may be a limited number of homes to visit and the demand for them may be high.

Overall, here are some suggestions:

• Enter into negotiations with the maximum amount you are willing to pay for the property firmly in mind.

• Keep in mind (and add to the contract) some terms you can live without – then you can make concessions without compromising the items that are important to you.

• Always have a few alternative homes in mind – knowing you have other options will help you stay objective during bargaining and may encourage the seller to be more reasonable.

• Try to ascertain what the seller wants and needs. If, for example, the seller’s new home is not ready by the closing date, you might consider allowing the seller to rent back the home for a short time, provided your schedule permits.

• Terms may be negotiated as well as price, and the changes can result in financial savings.

Fending Off Foreclosure

It is no secret that foreclosures have increased drastically this year as a result of the subprime lending disaster and a lot of people are wondering if they will be next. For many homeowners there may be options, if they know what to look for and where to look.

In the event that you find yourself struggling to make your mortgage payments, and you fear foreclosure may be in your future, the National Foundation for Credit Counseling (NFCC) has suggested a few possible alternatives. These options to fend off foreclosure include:

* Repayment Plan
* Reinstatement
* Forbearance
* Loan Modification

The Federal Trade Commission wants people to know that these alternatives may not work for everyone especially if you are already three or four mortgage payments behind.

For more information regarding the above alternatives visit the NFCC’s Homeowners Crisis Resource Center website. They can also assist you in locating a certified housing counselor to explore your options in an effort to fend off foreclosure.

Be Aware of the Dangers with Mold

As homeowners we should be aware of the existence and dangers of mold in our homes and how to address the issue before it gets out of control. A lot of times we are unaware that mold may be growing in the corners behind appliances after a water leak, or in the walls of our bathrooms without proper ventilation which is a “growing” concern if you are looking to sell your home.Realty Times Columnist, Phoebe Chongchua has written an informative article that explains the seriousness of mold in our homes and what to look for in a home that you may want to purchase. Read the following article to familiarize yourself with some of the more common signs.

Moving With Chidlren

Moving can be extremely stressful especially if you have children. It is important to be aware of the things that may be a concern to your children when making a move.

A few areas of concern for children when making a move may include:

• Preschool children tend to worry about being left behind or separated from their parents.
• Kids aged 6 to 12 can be concerned with how their daily routines will be affected.
• Teenagers are concerned primarily with fitting in and having their social life disrupted.

A way to ease these concerns may include:

• Communicating with your child about what the new house will be like.
• Take them on a visit of the new home and neighborhood (if possible)
• If you can, visit the school with your child and meet some of the teachers.

Involving your children in the move can help make the transition easier. Your kids can be a great help to you and the move if you involve them such things as:

• Packing some of their own special belongings, and decorate the box with stickers and markers.
• Make plans together on how to decorate their new room.

There is a lot to consider during a move and by involving your children you just may relieve the stress your children are feeling, reduce your own stress and be able to focus more on other aspects of your move!

A Checklist for Showing Your Home

Fully preparing your home for sale can make considerable difference in the time it takes to sell it. You can help eliminate buyer objections before they arise by making necessary repairs and improvements, some of which are suggested below.
Outdoors
__ Spruce up gardens and lawn; trim shrubbery and replace dead plants.
__ Yard and patio should be neat; outdoor furniture should be clean and in good shape.
__ Clean or paint your front door – remember first impressions last longest!
__ Manicure your front yard, driveway and entry – you can’t sell what you can’t see.

Exterior
__ Check that door numbers, mailbox, and exterior lighting are all in good repair.
__ Touch up with fresh paint as needed.
__ Inspect chimney for cracks or earthquake damage.
__ Repair loose trim, drainpipes and fencing.
__ Clean stains; clean window screens.

Garage
__ Remove clutter; tidy up shelves.
__ Wash floor so it looks clean and spacious.

Living Areas
__ Apply fresh paint as needed…brighten your interiors with neutral-toned paint.
__ Clean draperies and carpets.
__ Replace burned out light bulbs.
__ Clean fireplace, remove smoke stains from wall and mantle.

Kitchen
__ Sinks, appliances and counter tops should sparkle without any clutter.
__ Wax the floor.
__ Clean oven, range and other appliances.
__ Clean tile and grout; replace if necessary.

Bathrooms
__ Clean mirrors, glass, chrome and porcelain surfaces.
__ Replace shower curtain if necessary.
__ Fix any faucet drips or leaks.
__ Clean tile, grout and caulking; replace if necessary.

Closets
__ Doors and drawers should open and close easily.
__ Remove clutter; tidy up shelves and racks.
__ Shoes and clothes should be neatly arranged.

Overall
__ Check the basics around the house. It takes just a minute to check all doors, windows and cabinets to make sure they don’t stick, squeak or are too loose.
__ Clean your furnace & water heater, so buyers know they are looking at a house that has been well maintained.

Renting vs Buying A Home in Florida

There’s nothing quite like a home that you can truly call your own. A place where you can have the gleaming hardwood floors you’ve always dreamed of, a space to cultivate your own vine-lined patio, a way to provide a good neighborhood for your kids to grow up in, and a freedom from the whims of your landlord. These are the images that immediately come to mind, for many of us.

Yet some of the biggest advantages of owning a home are less romantic and more practical – in fact, there are financial advantages to owning a home:

* Tax Deductibility You can deduct the cost of your mortgage loan interest from your state and federal income taxes. Since interest generally will account for most of your payment during the first half of your mortgage, the savings can be significant. Some of your costs at the time of closing (including prepaid mortgage interest) can be taken as deductions on that year’s income tax return, and points paid up front at the time of closing represent additional mortgage interest and may be taken as a deduction.
* Tax Deductibility of Property Taxes You can deduct all of the property taxes you pay.
* Appreciation Potential Real estate is considered a good long-term investment because it usually appreciates in value. The effects of borrowing potential can increase as the value of the home appreciates.
* Capital Gains Exclusion When it’s time to sell your home the amount of capital gains you have to pay is reduced. A homeowner can exclude up to $500,000 per couple if married and filing jointly, or $250,000 if single or filing separately for homes that have been the taxpayer’s principal residence for the previous two years.
* Capital Gain Treatment Congress allows preferential tax treatment on gains from capital assets held for more than one year. This would be important for a homeowner who has gains in excess of the allowable exclusion.
* Principal Accumulation Mortgages are designed to pay the interest for the time that the money has been used, as well as to retire the principal debt over a period of time. This payment plan means that part of the payment each month is for principal accumulation.
* Personal Enjoyment Pride of ownership is a valid reason for wanting to own a home. You can personalize your home while enjoying the financial benefits.

For the best evaluation of your financial situation, consult your financial advisor. He/she will be the most qualified to discuss the financial consequences of a home purchase decision, as well as help you to establish a plan that will achieve your home ownership goals.

Housing & Economic Recovery Act of 2008

 As a first time home buyer you can now take advantage of the new tax credit being offered.  This is called the Housing and Economic Recovery Act of 2008.  This Act includes a number of provisions that will help prevent foreclosures and reinvigorate the housing market as well as strenghten the nations economy.

If you feel the time is not right for you to buy your first home you might be interested in learning more about this Tax Credit that was created just for you.  And, then look at your credit then the interest rates available.  This might be a great time for you afterall.

April-May 2008 Real Estate Update Sebring, Avon Park & Lake Placid

This is what is happening in the real estate market in Highlands County for the months of April and May 2008.  Homes are selling, but again it is the lower priced homes under $175,000.  RE/MAX Realty Plus continues to out sell everyone else in Highlands County at more than 2 to 1.  RE/MAX continues to dominate the market which is good news for those listed with us!    The inventory for homes on the market is still at an all time high.  Homes need to be priced correctly and in the best possible condition to compete in this market.
 
This is a quick look at what has happened over the past two months.
 
Single Family Homes April 1 – May 31
 
Currently Listed                       1,659
Contingent or Pending              140
Closings for April & May           151
Sebring                                   75
Avon Park                               24
Lake Placid                             44
 
Condos, Villas, Duplex
 
Currently Listed                       356
Contingent or Pending              11
Closings for April & May            23  
 
Mobile Homes – Owned Land 
 
Currently Listed                         163
Contingent or Pending                13
Closed April & May                     22

RE/MAX – It’s a Small World!

Yesterday I spent a great day in Sarasota with a group of friends and fellow agents from my office, RE/MAX Realty Plus in Sebring.  We went to a RE/MAX Florida Regional meeting in Sarasota.    We started the meeting with lunch at the Columbia Restaurant on St. Armands Key.  I grew up in Tampa and one of my favorite restaurants is the Columbia Restaurants in Ybor City.  So I never miss a chance to eat at any Columbia Restaurant.  So after a wonder Cuban lunch, it was off the Ritz Carlton in Sarasota for an afternoon meeting.  I picked up more good ideas for marketing and reconfirmed RE/MAX is the place to be!
 
While sitting in a large room with lots of agents in the second row.  Liz, the lady behind me, started talking and introduced me to the agent she was with, Donna Toms both from a north Tampa office.  They just joined RE/MAX from Century 21 (good move for them).   Donna said you look familiar where are you from?  I asked “have you been to Sebring?” She said “No haven’t been there.”  Then I said, I grew up in South Tampa.  She said so did I.  Then I asked her where she went to high school she said Robinson High School.  This is where I went.  I asked her when she graduated.  She said 77 (me 73), but said she had an older sister and she would ask her if she knew me.  Well she seemed familiar to me too.  The meeting started.  All of a sudden it hit me.  I turned around and said  “Did you have horses?”  At the same time we both said “Maica.”  Maica was my first horse.  I use to show and ride Quarter Horses.  I sold Maica when I was in high school to Donna Nanz.  So the new Tampa RE/MAX agent is the same person who bought my Maica.  It has been 35 years since I last saw Donna.  She was about 13.  I can remember her riding her horses, with a cowboy hat, hair in a pony tail, and always riding bareback  and with not saddle.  So when someone says, “It’s a small world,” it really is!
 
I wish Donna and Liz much luck with their move to RE/MAX.  I am so happy I attended the meeting yesterday.  It’s always fun to look back on the good old days!  Anyone looking to move to Tampa, I have a good referral person to send you to.
 
Remember for all your real estate needs in Highlands County – Sebring, Lake Placid and Avon Park, give Maureen Cool a call today at 863 873-7243 or 888 243-COOL(2665).

Short Sale – As a Seller, What You Should Know Before You Decide

Is a short sale a good thing for a seller?  As a seller you should consider some facts before you jump as a Seller into a Short Sale.  As an experienced Realtor in the Avon Park, Sebring, and Lake Placid market, I see many disasters in the making with short sales.  You can give me a call to see if a short sale is right for you.  I do not handle the actual short sales because it is not my expertise.  Nor am I a foreclosure consultant.  But, I do know when a short sales may be the best option for you and I can point out red flags that I might see.   If a short sale appears to be the best choice for your situations, I can refer you to an experienced Realtor to handle your short sale.  Some agents may bill themselves as being an expert in short sales.  This is not always case.  The buzz word these days is Short Sale and many Realtors have jumped on the band wagon to present themselves as experts when they are not.  For example, you would not or I would not get to the same doctor for a cold as we would for major surgery and you should not just pick any Realtor for a short sale without checking their track record with short sales and ask for references from past clients they have handled short sales for.
 
What is a short sale?  This is when the homeowner places the home for sale and the lender agrees to take less for the mortgage than what is owed and releases the homeowner from the deficit.  The homeowner owes more than what the house is worth.  Suddenly, payments are more than the homeowner can afford.  This could be caused by loss of a job, reduction in income, divorce or death of a spouse, or an unexpected increase in mortgage payment, taxes and insurance.  The homeowner can no longer afford to live in the home.  They decide to sell and realize in this slow market they cannot not sell their home for what they owe and they are facing foreclosure by the lender.  This is when a Short Sale may take place.
 
What sellers do not realize is, a short sale may not be all that it is cracked up to be.  You think the lender will let you sell the home for less than what is owed and release you from the difference.  This may not be the case.  Before you agree to do a short sale realize that the following may occur:
 
1.  There may be tax ramifications from a short sale which include the money the lender is releasing you from may be taxable by the IRS.
 
2.  The person or Realtor handling the short sale may be collecting a fee from the sale in addition to collecting a commission.  Find out what this fee is.
 
3.  When you put up a Short Sale rider on the for sale sign in your yard, this tells the world that the property has started the foreclosure process and the list price is less than what is owed.
 
4.  Just because someone tells you they can do a short sale, it may not happen.  All this person is attempting to do is negotiate with the lender to take less.  They are gambling they can do this on your time.  If the short sale happens, the Realtor makes money.  If it does not happen, you go to foreclosure.   In some cases, but not always the lender may approve the short sale and still require you to pay the difference in what is remaining which is called the deficiency.
 
5.  There is no guarantee the person that list your house to do a short sale will be able to negotiate with the lender.  If the lender refuses to honor the approved discounted price and closing, the property will go to foreclosure.  The short sale is a way to try to avoid foreclosure.  When you accept the offer made by a buyer, you have accepted a lesser amount than the actual mortgage(s).  This is where the Realtor goes to work and has to convince the lender that it is in the lenders best interest to take less than what is owed.
 
6 If you are in a situation that you can no longer make payments, it is always advisable to consult an attorney and accountant to find out the ramifications the short sale may have on you.
 
7.  If you have equity in your home but are unable to make your current payments you may be better off selling just a little over what you owe to cover your expenses.  This will help promote a quick sale.  In no circumstances should you sign your house over to anyone or put it in a TRUST without an attorney looking at this.  If you do sign your home over to a trust this may mean that someone else will realize the equity in your home and will sell it for the profit.  You have just GIVEN your home away when you sign it over to a trust.   Know who the trustee is on the trust.  Do they know the Realtor proposing to do the short sale?  What is the relationship to the Realtor?  Have an attorney look at any papers before you sign.
 
If you are considering a SHORT SALE in Highlands County, give Maureen Cool a call at 863 873-7243.  She will talk to you about your situation, give you options to consider and try to help.