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 5, 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 5, 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.
Knowing your options for residential roofing materials before repairs are needed also allows you to decide on the best choice for your home and then plan and budget for that new residential roof Check out whatrsquo;s new in residential roofing >
Slate roofing is valued for its durability and >
Slate roofs are also very attractive, with a natural look that enhances a homersquo;s overall curb appeal. Donrsquo;t believe the myth that slate roofs are noisy as a roofrsquo;s underlayment and other materials absorb sound and keep a slate roof quiet, even in inclement weather.
Flat Roofing Materials
Flat roofing materials are very durable and easy to maintain and offer a unique look for homes. The PVC or TPO materials used to create flat roofs are watertight and very dense so that the roof isnrsquo;t likely to leak or blow away in a storm
A cool or white roof is a reflective coating added over roofing materials. The lighter color of a white roof helps to reflect sunlight and keep a home cooler in summertime.
Not only does cool roof lower your air conditioning bills significantly but it can also reduce wear and tear on the roofing materials underneath it. Overexposure to harsh sunlight and heat often cause asphalt shingles and other roofing tiles to become brittle and crumbly, leading to premature cracking, splitting, and otherwise unnecessary repairs, whereas a cool roof helps avoid that damage.
Metal roofs are not new, as metal has been a favorite roofing material for centuries; however, metal is quickly becoming a popular option for homeowners versus standard asphalt shingles. A metal roof is far more durable than asphalt and can last for decades, even outlasting the home itself
The experts and local roofing contractors in Boston note that many homeowners mistakenly assume that a metal roof is heavy and might damage a home, but this is not the case. Metal roofing tiles are lighter than shingles and an excellent option for older homes and structures that have weakened with age.
Synthetic Roofing Materials
Synthetic roofing materials, including plastic, rubber, and other polymers, are increasingly popular with homeowners today due to their low cost, lighter weight, and durability. Synthetic roofing materials are shaped and formed to resemble other materials including wood and slate, and are often highly fire-resistant.
If considering synthetic roofing materials, note the reputation of the manufacturer and any warranty offered. Ensure that your roofing contractor has experience installing synthetic materials, and itrsquo;s even helpful to see a sample of these materials side-by-side with asphalt or slate shingles, to compare their >
Todayrsquo;s innovations in solar technology have allowed roofing materials manufacturers to incorporate solar wiring into shingles themselves. Opting for solar shingles allows a homeowner to enjoy solar power in the home without the bulky appearance of full solar panels
Solar shingles can be somewhat costly and itrsquo;s good for homeowners to note the pitch and angle of their homersquo;s roof and how much sunlight the shingles might realistically absorb throughout the day. Remember, too, to check for rebates, tax credits, and other incentives that help to offset the cost of solar shingles when deciding on a new roofing material for your home.
Concrete Roof Tiles
Concrete might not sound like an attractive material for a homersquo;s roof, but concrete is a very versatile substance that can be shaped and formed and then painted, stained, and buffed so that it resembles many other architectural materials. Concrete roof tiles often look just like their more expensive slate counterparts or they might resemble wood roof tiles, while being far less expensive than slate and much more fire-resistant than wood
The downside of concrete roof tiles is that they are often heavy and cumbersome to install. Not every home is a good candidate for concrete roof tiles and their installation might require a specialty contractor, so keep those considerations in mind when shopping for a new residential roof.
A green roof combines soil, compost, and living plants to create an actual ecosystem on a homersquo;s roof Live plants on a homersquo;s roof adds a protective layer of insulation between the house and outside elements, keeping a home cooler in summertime and warmer in winter.
A green roof also improves surrounding air quality since plants clean the air around them naturally. Some homeowners even grow edible vegetation on their homersquo;s roof, reducing their grocery bills as well as their utility costs. While green roofs have many advantages, they are best suited for sloped roofs, to allow proper water runoff and to prevent water pooling on the homersquo;s roof.
No matter the residential roofing material you choose, todayrsquo;s homeowners have more options for color than ever before. Roofs in a red tone offer a rustic charm while a dijon yellow roof can add a splash of subtle color above a white home. Roofs in a slight blue tone are an excellent option for homes painted blue, as the color is often difficult to match and complement.
When choosing a new residential roofing material, consider adding a bit of personality to the house exterior with a splash of color. You will then have a roof that is not only durable and strong but which also enhances your homersquo;s appearance and reflects your own personal >
nbsp;Sean King is a leader in the industry and offers full roof replacements using the best materials. His New England based company, Risk Free Roofing Boston has changed the industry by never asking for deposits, installing roofs in a day and giving quotes in 5 minutes or less. He also warranties his roofs for the entire lifetime of the home.
The new program, from Quicken Loans, uses ldquo;rental income earned through VRBO to be used to qualify for a mortgage refinance,rdquo; the lender said in a news >
Typically, investment property income can help a borrowerrsquo;s debt-to-income ratio, but being able to show income from short-term rentals is a sign of the times. "Vrbo helps homeowners use one of their biggest assets as a source of income.nbsp;Now Quicken Loans can accurately review that income and consider it when calculating the debt-to-income ratio ndash; a major data point considers when qualifying for a mortgage," Jay Farner, CEO of Quicken Loans, said in a >
This evolution makes sense when you consider how closely tied the income generated by these short-term rentals is to ongoing living expenses. ldquo;Rental income and mortgage payments are often intertwined,rdquo; said Inman News. ldquo;A June 2018 market report from Vrbo found that more than 50 percent of short-term rental owners utilizing the platform use income generated from their property to cover at least 75 percent of their mortgage payment.rdquo; The rental income can come from a primary residence or a second home, and primary residences, vacation homes, and investment properties can all be refinanced under the program.
The Vrbo partnership with Quicken comes on the heels of competitor Airbnbrsquo;s announcement last year that itrsquo;s working with both Quicken and Fannie Mae to ldquo;allow anyone who has rented out property on Airbnb for a year or longer to count some or all of that money as incomerdquo; when applying for a refinance, said MarketWatch.
But just how do those two contingents break down? The National Association of Realtors NAR 2019 Profile of Home Staging provides some insight. The study separated the study into three categories: Buyersrsquo; Agent Perspective, Sellersrsquo; Agent Perspective, and Buyer Expectations. Wersquo;re taking a closer look at the key points.
Home Staging: Buyersrsquo; Agent Perspective
According to the study, ldquo;40 percent of buyersrsquo; agents cited that home staging had an effect on most buyersrsquo; view of the homerdquo; and ldquo;83 percent of buyersrsquo; agents said staging a home made it easier for a buyer to visualize the property as a future home.rdquo; Buyers agents also noted that, ldquo;Staging the living room was found to be most important for buyers 47 percent, followed by staging the master bedroom 42 percent, and staging the kitchen 35 percent.rdquo;
Home Staging: Sellersrsquo; Agent Perspective
Per the study, ldquo;28 percent of sellersrsquo; agents said they staged all sellersrsquo; homes prior to listing them for sale,rdquo; and ldquo;13 percent noted that they only staged homes that are difficult to sell.rdquo; The living room 93 percent, kitchen 84 percent, master bedroom 78 percent, and the dining room 72 percent were the most commonly staged rooms.
Sellersrsquo; agents offered to do the staging 26 percent of the time, and, ldquo;The median dollar value spent on home staging was 400.rdquo;
Call it the HGTV effect: ldquo;A median of 10 percent of respondents cited that buyers felt homes should look the way they were staged on TV shows,rdquo; while ldquo;38 percent of respondents said that TV shows which displayed the buying process impacted their business.rdquo;
The real effect of staging
Now that we have the buyerrsquo;s agent, sellerrsquo;s agent, and buyerrsquo;s perspective, letrsquo;s look at some real data about staged homes. According to the NAR study, 22 percent of sellersrsquo; agents ldquo;reported an increase of one percent to five percent of the dollar value offered by buyers, in comparison to similar homes,rdquo; and ldquo;17 percent of respondents stated that staging a home increased the dollar value of the home between six and 10 percent. 28 percent of sellersrsquo; agents stated that there were slight decreases in the time on the market when the home is staged, while 25 percent reported that staging a home greatly decreased the amount of time the home was on the market.rdquo;
Of course, time on market and sales prices can range depending on a number of factors, like age of home, location, square footage, and price point. The Real Estate Staging Association has found, overall, that staged homes sell ldquo;73 faster, on average, than their non-staged counterparts,rdquo; said The Mortgage Reports.