With today’s considerably lower Miami Beach real estate prices, the large inventory of foreclosures and bank owned property the question becomes more of what kind of property is worth investing in than anything else. For purposes of this article, we’ll focus on bank owned properties, also known as REO (real estate owned) property.
A home becomes real estate owned if it doesn’t find a buyer during a property auction. Since banks aren’t necessarily designed to function as Miami Beach real estate property-owners, they’re usually very eager to get rid of them which can result in considerable discounts. However since an REO is not the same thing as a foreclosure, lenders can still earn a profit from them so don’t expect as deep of a discount.
A perk of buying a Miami Beach real estate REO is that there’s much less of a risk of dealing with liens, taxes and other unforeseen costs that come with a foreclosure since lenders will take usually deal with them before the sale is closed. However an REO can still be in bad condition like a foreclosure so it remains important to get a home inspection or check the home out yourself, lenders are not at all obligated to make any repairs on the property but they will allow you to back out if something is seriously wrong.
Posted at 10:24:21 AM
Thursday, March 05, 2009
Examining the Interior of a Home
If you’ve been browsing through Miami Beach real estate on the internet, you’ve more than likely come across numerous resources thoroughly explaining how important it is that you carefully consider where the home is located, the values of neighboring homes, etc. If you’ve done your homework, perhaps it’s time to narrow down your assessment to the home you may soon be living in by giving the interior a meticulous examination.
Perhaps you’d like to start off with the electrical wiring. Depending on your familiarity, you may wish to leave this to a professional or have it done as part of the home inspection report, should you request one. Always check this part out regardless of whether the home was built ten years ago or five years ago.
The plumbing is a little easier. Leakage can often be discovered just by taking a look behind sinks since that’s the spot where mold has the best conditions for accumulating. A leaky sink could be an indicator of bad pipes and thus plumbing, something you likely want to bring to the appropriate person’s attention before signing off on the dotted line on your Miami Beach real estate purchase.
Not all homes come with an addict but if there is one, you may wish to make it your first stop. If you want to examine the roof, the attic is the best spot to do so. If there’s wood that shows wear and tear, this could lead to leakage later on.
Posted at 11:00:29 AM
Wednesday, November 26, 2008
Compiling Comparable Sales
With the advances in technology and the widespread availability of the World Wide Web, there is more real estate information available than ever. Realtors have a number of resources available to help them with their seller and buyer assistance efforts and among these, it’s important to have a good idea of average sales prices in any given neighborhood, officially known as comparable sales and often referred to simply as comps.
Depending on the state where the realtor is doing business, obtaining information on comps can be done by simply heading over to the local courthouse and browsing through public records or reading newspaper listings to get a glimpse of recent sales figures. However this method means that such services need to actually be provided in order to make use of them.
The most readily available resource is the internet since there are many websites available which can be used for finding comparable sales information while removing the need to do a lot of unnecessary and possibly fruitless legwork. Keep in mind though that there is no guarantee as to how current this information may be. A similar approach is to subscribe to service companies which can mail or offer this information via other means besides the internet. Even so, the same problems of encountering outdated information are still there.
The MLS can be extremely useful and if the person using it is already a licensed realtor then they have access to a wealth of information on multiple listings which is more often than not kept up to date.
At the end of the day however, perhaps the best way to have the sharpest knowledge on comps is to take the self research approach and focus on a certain neighborhood and staying abreast of sales.
Posted at 4:43:12 PM
Friday, October 31, 2008
Existing Home Sales Rose Nationally Last Month
While the economy seems bleak with the stock market fluctuating daily and a steady amount of major companies going bankrupt or merging, the real estate market seems to be headed down a different path. Month-after-month the real estate market has slight improvements. Experts think the worst declines in the real estate market have already past while the economy still has a while before it stabilizes.
Recent reports from the National Association of Realtors (NAR) show an increase in existing home sales. Home sales were up 5.5 percent with a total of 5.18 million units sold across the country in the month of September which was higher than the previous month by 1.4 percent. Lead economist for the NAR Lawrence Yun suggests this is part of “a sales turnaround which began in California several months ago…” and “is broadening now to Colarado, Kansas, Minnesota, Missouri and Rhode Island”.
The cause of this influx of real estate business, according to NAR President Richard F. Gaylord is “low home prices and low interest rates”. The nearly thirty percent discounts in home prices in major cities and rural areas have attracted buyers back to the real estate market in certain areas of the country. Richard F. Gaylord is optimistic about recent gains and thinks the real estate market is on its way to recovery.
Lawrence Yun, while also optimistic about the recovery of the real estate market, warns of “market disruptions” on the road to real estate market recovery. The credit markets have a significant impact on the real estate market and as they experience tough times it may have averse effects on the real estate market. But that aside, the NAR is predicting that the worst for the real estate market is over and that it will recover sooner than the economy itself.
Posted at 10:53:28 AM
Friday, September 05, 2008
Global warming, damaging fuel emissions, they’re all more of a concern on people’s minds these days as they become more and more aware of their long term effects on the environment and how important it is to try and incorporate “green practices” into your daily lifestyle whether that means doubling up your recycling efforts or reducing the amount of time you spend sitting idly in traffic.
In real estate, many developers have taken into account how they too can make homes “greener” and many have made use of natural resources to create environmentally friendly condo buildings like Ten Museum Park which uses its glass design to allow tons of natural sunlight to come into the building, thus reducing the need to flip on artificial lights, at least during the day.
The Ten Museum Park condo is only a small part of a bigger picture. Its home, downtown Miami is recognized not only by its sweeping business and condo skyscrapers, but also the numerous and elaborate light displays that bring the city to new life during the evening. Obviously all this visual eye candy, while certainly nice to look at does not do the environment any favors. Thus, to reinforce the message of how important it is to turn off nonessential lights whenever possible, Ten Museum Park and all those other high rises in downtown Miami’s will turn off their own unimportant lights on March 29 in a global effort to encourage environmental awareness.
Regardless of whether you live in a Miami single family home or a luxury condo, the efforts required by you to help out the environment even a little are that simple: turn off lights when you leave a room, drop a plastic water bottle or soda can into a recycling receptacle instead of the trash. It may seem useless but it’s always good to know you’re doing your part in making the world you share with everyone else that much more pleasant.
hat require little to no repairs. Don’t get caught up in the fierce competition without having a limit of how far you’re willing to bid, always remember the winning bid is only a component of the other fees that follow. As you learn the ropes, you’ll eventually get a feel for how real estate auctions work and who knows, if you become good at it, they may become your preferred method of buying Florida real estate.
Posted at 2:50:44 PM
Tuesday, June 24, 2008
International Florida Real Estate Assistance
To some degree the foreclosure situation has transitioned from how to prevent foreclosures to how to get rid of the hundreds of foreclosure properties already available on the market. South Florida homes are among the highest in foreclosure filings, contributing to an already overcrowded housing glut. The answer to appeasing the situation may lie beyond the U.S. borders.
Strategic Real Estate Advisors is an asset management firm situated in London that plans to raise $1 billion dollars in order to purchase luxury property like Miami Beach oceanfront condos currently owned and being sold by the banks through the Florida Prime Residential Opportunity Fund.
Itâ€™s interesting to note that not only is Strategic Real Estate Advisors located outside of the United States, the majority of the funds which will go towards the purchase of all these luxury properties will be coming from well to do investors and funds located throughout Europe and the Middle East. Recent reports have consistently pointed towards international investors and buyers as integral towards maintaining interest in Florida property investments and sales.
Critics may see Strategic Real Estate Advisorsâ€™ initiative as ineffective since they wonâ€™t be making a profit. The firm actually plans to buy and then hold onto these properties for next six years or so, a move that may cost considerable funds as the market fluctuates but which should bring considerable profit by the time it decides to sell them off as a residential property investment or something else entirely.
Within a seven year timeframe home values and the real estate market in general will certainly be in much better shape and buying activity will likely have increased so in a sense Strategic Real Estate Advisors are providing a worthwhile short and long term solution. Is this just another flash in the pan or is it a viable strategy?
Posted at 12:30:39 PM
Wednesday, May 28, 2008
Homes Are Selling Again
Amidst the doom and gloom of housing market reports comes a recent report suggesting the real estate market is showing strong signs of life. In these tumultuous times it's easy for people to think that the economy is headed for recession or even a crash. Despite current market reports that suggest we are beginning to see slow signs of recovery there are still those who would rather build a bunker under their homes to prepare for an apocalypse then invest in real estate.
The last half dozen months have not seen much progress in the way of homes sold. The highest percentage of drop in home sales occurred during that period leading many to believe that the market would eventually begin to recoverâ€”and it did. In April homes sales increased slightly, which wasn't enough to ease all tensions in the housing market but enough to show that the market is on the right track to recovery.
Property value also rose slightly across the nation showing encouraging signs of the real estate market's enduring strength. Though the median home value is comparably low to just four years ago the fact that property value is stabilizing across the country is a sign that things will return to normalcy sooner than later. When property values experience steady rise it will be more practical for people to sell homes and to convince investors to buy homes.
So, how should one react to recent reports of trends reversing in real estate? Real estate transactions rising are a sign that demand for property is still alive. Prices are almost at a low enough level that many people sitting on the fence on whether or not to invest will soon become active. As sales increase, so will home values and soon real estate investments will become stable enough to return to business as usual.
I ended up face to face with a real estate myth I thought had been debunked out of existence in the last century.
And yet, there I was in a popular "resto," waiting for my lunch companion and half listening to the two articulate couples chatting at the table behind me, when I heard it.
Like so many of us today, the two couples were raising lots of questions about what was up in the real estate market and concerns they had regarding what to do next with their homes. Then, one of them said: "Id love to get the low-down on all of this from a realtor, but Im afraid theyd end up selling me something."
Mumbled agreement from the others ended their discussion.
Is that how you feel?
Do you shy away from asking a real estate professional about real estate because you think they may talk you into something you do not want to do?
If you dont ask real estate professionals about real estate, who are you going to ask? Your best friend? Your grocer? Google? Siri?
Ask anyone or any digital thing about real estate and youll get an answer.
Everyone has opinions. Every digital resource from search engines to artificial intelligence technology can always spit out links to matching keywords.
But the real question is, "Are you receiving answers you can >Real estate professionals are among the few professionals who do not usually charge for answering questions or explaining real estate issues or terminology. Why not take advantage of this opportunity to enlighten yourself and verify the >In the process of chatting with professionals, youll probably meet a few you trust to understand your situation. When youre ready to buy or sell, you will probably choose one of them to help.
When preparing to talk real estate, clarify exactly what you want to know and why you want to know it. Here are Six Conversation Starting Points to adapt to your situation and the real estate conversations youd like to have:
1. Do you want to know specific facts about real estate?
If its factual information, like how listings or mortgages work, ask away and take notes. There is too much false or out-dated information online. Before savvy buyers and sellers act, they verify, with an experienced real estate expert or two, the accuracy of what has been discovered online.
2. Are you after details on your choices if you decide to sell or buy in the next six months versus next year?
Answers to queries like these would blend fact and opinion. Not even real estate professionals know exactly what will happen in six months, never mind next year. They can tell you what appears to lie ahead in the short term and what real estate forecasters project ahead. The key to understanding real estate is exploring how real estate market values are locally influenced >3. Do you want to know whats going to happen with interest rates?
Amazingly, real estate professionals do not know exactly what is going to happen to interest rates over the months and years ahead. They do understand the financial services industries and monitor economic patterns, so some may feel confident offering educated guesses in the short term. Many will explain what the current situation is, what the implications are for possible changes, and include other details which would provide you with background to form your own opinion >4. If youre not social media or tech savvy, dont shy away from talking to real estate professionals who are both.
They may be very useful in helping you understand the advantages and disadvantages of online real estate sources and using calculators and other digital tools, >5. If you dont know whether you can afford the next real estate step youd like to take, dont shy away from talking to real estate professionals.
Real estate professionals are not debt counselors, investment advisors, or estate planners, but they do understand how real estate and money fit together. Most are very good problem solvers and creative thinkers, who
have well-developed resource networks to call on. They will each have had different experiences with income-generation, co-ownership, and other real estate options. All this adds up to a lot of possibilities, so your persistence pays off.
6. If dont know exactly what you want to do next, dont shy away from talking to real estate professionals.
Most of them concentrate on specific neighborhoods and consumer life>Look for those who feed your curiosity with their own.
The vast majority of real estate professionals are honest, hardworking people who are eager to assist you. That said, and in view of the encouragement above, I add a note of caution: In every profession, there are wide ranges of professionalism, ethics, commitment to developing expertise, focus on staying current, and honesty. The real estate industry is no different.
Always act in your own best interest. Take notes or record conversations for future reference. Meet in the real estate brokerage, so you gain first-hand experience with the business supporting the real estate professional. Protect your personal information and privacy. When in doubt or if you feel uncomfortable, leave. These usually-short conversations should be enlightening and enjoyable. > Full Story
A delightful little book by John Maxwell is provocatively titled, Theres No Such Thing as Business Ethics.Now some might simply think, "no kidding." But for the curious, or those inclined to disagree, Maxwells book makes an interesting argument. His point is not that all of business is unethical. Rather, he disagrees with the point of view that the operative ethical principles of business are somehow specialized and different from occasionally, contrary to the ethical principles that govern our everyday lives.
According to Maxwell, the test of what is ethically acceptable or unacceptable in the business context is exactly the same as that which applies in our everyday, non-work circumstances. For him, it is all summed up in one principle, The Golden Rule. "Do unto others as you would have them do unto you." If you follow that, your behavior will be ethical; if you depart from it, it wont be. At work or at home, in the office or in the neighborhood.
I believe that Maxwell is correct that ethics in the context of business is simply an extension of ethics in general. There arent special exceptions for business. Its as wrong to lie to your competitor as it is to lie to your neighbor. All of us, of course, have encountered different attitudes. We have heard "But this is business" said as if it meant "Anything goes". Certainly, some people feel that way. People who would never cheat in a neighborhood card game can be perfectly content to deceive their customers or rip off their suppliers. But this doesnt show that such people are operating according to a special "business ethic"; rather, it simply reveals that, in the context of business, they have made the decision to be unethical.
If it is true that ethics in business and ethics in everyday life are the same, it is legitimate to ask, why are codes of professional ethics sometimes so complicated?
The National Association of REALTORSreg; is rightfully proud of its Code of Ethics, a document first formulated in 1913, and amended at more that 30 different national conventions since then. With 17 articles, supplemented by over 88 Standards of Practice and more than 154 official Case Interpretations, it presents a complex set of documents.
Nor is the NARreg; Code of Ethics a unique phenomenon. There are hundreds of professional and trade group codes of ethics. Physicians, lawyers, funeral directors, and wedding planners -- to name just a few -- all have professional codes of ethics. So also do many individual companies and corporations. They vary, of course, in range and complexity. How is it that professional codes can become so complicated? People need to understand that there are various purposes served by professional codes, although not every code serves them all.
They bring to our attention and provide direction with respect to issues that might not otherwise even have been identified as matters for an ethical concern. While ethical principles may remain the same, frequently the circumstances encountered in business are quite different than anything we experience in the non-business world. Most REALTORSreg;, for example, have probably never had to confront issues >1 In many situations they provide us with the wisdom and insight of those who have preceded us.Quite simply, they save us the trouble of reinventing the wheel.
2 Professional ethics codes sometimes also cover matters that are not so much ethical as they are issues of professional etiquette or proper procedure. They help to keep professionals "on the same page" when they are interacting with each other.
3 Professional ethical codes are also sometimes used for the purposes of "drawing lines" in order to remove any unclarity about what may be considered acceptable or unacceptable.They help to remove the "shades of grey" that can be found in so many situations.
Professional codes, such as that of the REALTORSreg;, are based on everyday ethical principles. Their value resides in the fact that they show us how those principles apply to specific business contexts that well may not be "everyday". > Full Story
Your kitchen: White. Your walls: White. Your doors and trim: Hmm. Maybe its time for something a little different. We think nothing about painting our exterior door a standout color, but what about the interior doors? And then theres the trim, which often gets no love at all.
"Whether simple or ornate, interior trim is a finishing touch that often doesnt get much thought, frequently being left the color its always been without consideration of the multitude of beautiful alternatives," said Houzz.
Maybe its time to change that. A little attention to your interior doors and trim can freshen up your home, help individual spaces stand out, and create interest where there wasnt much.
Royal blue may not be on your mind when it comes to your homes interior, but look how it creates both drama and warmth on this Swedish homes pocket door and surrounding trim.
A bright pop of color in this home almost acts like art. "Since the door is a fairly small area, you can get away with a much bolder color than you could on a wall," said Apartment Therapy. "The fluorescent yellow door in this interior fromnbsp;Hernandez Greenenbsp;adds cheerful color without overwhelming the space."
You can stay in the neutral zone and still get a punch from painted doors and trim. "Neutral" can mean anything from beige or cream, to olive green, to gray.
"When trim is dressed in a midtone neutral shade, it immediately gives it a certain sophisticated, stately appeal," said Houzz. "The trim becomes a feature, for sure, but in an understated way. Choose neutral if: You love a transitional look one that balances traditional and modern elements; You want an authentic heritage feel in an older home; or you want to highlight doors or windows for an architectural look without touching fresh white walls."
Black definitely brings the drama while creating contrast. But because its a timeless color, you can trust you wont have to redo it when other bold color choices start to feel dated.
Black trim is definitely statement making, yet its timeless, so unlike with other bold colors, you dont have to worry that this dramatic choice will grow dated quickly. Black
"A trend that has grown in popularity of late is selecting dark colors for trim -- even black," said Sherwin-Williams. Dark trim gives a room more depth than white or light trim does, and very effectively frames views when used on window casings. In addition, dark trim contrasts nicely with some of todays trendiest room colors: soft aquas, powder blues, greens -- from lime to celadon -- and the gamut of grays."
Black beautifully frames windows and doors - a good reason to use it if you have windows and doors to show off, and perhaps a call to action if you dont.
"Over the last couple of years, veering off the traditional all white track and painting interior doors a non-white color has really surged," said The Creativity Exchange.nbsp;"If youre not quite ready to do a bold color or a dark black, a nice and safe compromise is gray."
A light gray can bring in a subtle look that creates dimension, while darker gray shades help to highlight architectural details.
Tone on tone
We tend to think of doors and trim as offering a contrast to the wall color, but painting everything the same color creates a unique lookmdash;and serves an important function. "Painting interior doors and trim in white or a contrastingnbsp;colornbsp;from the walls will make them stand out. However, painting them the same color as the walls will help them to blend in and almost disappear," said The Casa Collective. "This is a trick decorators and designers use in small rooms, narrow halls with lots of doors, and rooms with low ceilings. Anbsp;small roomnbsp;will visually seem more spacious because the white trim or doors arent there to stop your eye as you look around the room. As you look down a hallway with several doors, all the doors wont jump out at you if they blend in with the walls. And if you have a room with low ceilings, painting baseboards and crown molding will make the room seem taller."
We may be somewhat conditioned to think that all the doors and trim need to be the same color, whether thats white, black, or something in between. But using an accent color, like Kylie M. Interiors yellowy-green door contrasted with the deep gray wall shows how you can use color to in new and exciting ways.