The Real Estate Mango

Archive for July, 2009

Bulk Sales Of Condos Being Tested In Florida

Over 23,000 condos were built in Miami since 2003 and their prices have fallen by half since December 2006!

The glut of condos has not gone unnoticed!!  Opportunities to make money in this sector of the economy has created the Bulk Purchase Of Condos  as a new concept that is being tried first in Miami and if this proves successful, it will spread to cities like Las Vegas and San Diego where many condos are standing empty.

In Aventura, the Artech development of condos at 3131 N.E. 188th Street was completed with 235 units.  41 of these units were bought in bulk and at greatly reduced prices from the developer and are now on the market with 15 having been sold, so far.

At Bal Harbor One, a luxury highrise overlooking the gorgeous Government cut oceanfront, sold off 51 condo hotel units for 14.6 million dollars, to a bulk investor.

This type of purchase, allows new prices for these condos to be set at current rates and buyers will be able to take great advantage of severely reduced prices of well built, luxury properties.  Truely, a great chance to really get a deal.

This also allows condos to get filled up and collect maintenance fees.  These private investors are acting stragically, pricing the properties at the market, offering incentives, and sometimes renting those that don’t sell.  They are filling a need in the market place.

This is good old fashioned American ingenuity!  Please call me for more details and information if you are considering a bulk purchase…

Signs That A Surge In The Real Estate Market Is Real

Since January of this year, all of Dade County, has shown an increase of 41.5% in sales and a decline of 29.6% of inventory.

This is good news and an opportunity for families that want to sell, to put their homes on the market, NOW.

Here are three reasons for this surge:

1. Buyers are taking advantage of the lowest prices in three years
2. First time home buyers are taking advantage of the $8000 tax credit offered by the federal government
3. Interest rates are low

The New York Times as well as tv and other print media have been touting the news since yesterday when the new statistics came out.  Many see this as the beginning of the recovery, the stabilizing of prices and the start of a great new beginning for real estate.

I see it as, a moment in time to take advantage of the activity.  It may not last.  Many more foreclosures are coming down the pike.  These have a negative impact on prices.  They will also increase the inventory, again.

The low prices are what is attracting buyers.  If  homeowners start raising their prices, they will see demand drop off.

What we do know, is that this is a time to act.  It may not last.  We cannot see too far into the future.  If there are buyers out there, price your property correctly, and put it on the market, now. 

12 Steps To A Short Sale

What is a short sale?  How do I go about doing this?

I receive many inquiries from sellers who are getting offers that are lower than the mortgage they owe on their property.  They ask me to put their home on the market saying to the buyers that this is a short sale.

NOT SO QUICK!!  A short sale needs much documentation and proof that you cannot add money to the sale price to satisfy the mortgage.  You are basically asking the bank to take less than you  owe and you have to show that you cannot make of the difference.

Here are the 12 steps to listing your home as a Short Sale.

1. Hardship Letter
2. Tax Returns ( last 2 years)
3. W-2’s ( last 2 years)
4. Bank Statements (2 most recent months)
5. Payroll Statements (2 most recent months)
6. Financial Statement
7. Recent mortgage statement showing balances with loan #, monthly payment, name and address of all mortgage/lien holders)
8. Listing Agreement
9. Sale and Purchase Contract executed by Seller and Buyer
10. Loan Commitment/Approval Letter received from Purchaser
11. Preliminary Net Sheet (HUD-l)
12. A Comparative Market Analysis

It  can be done!  It takes effort and there have been many successful short sales.  At the moment a great percentage of sales in the market, are short sales.

If you are thinking of doing a short sale, please call me and we can begin the process.

 

 

Inventories of Properties Shrink Again In June

The good news is that sales are up and inventories are shrinking!

There is a steady decline in inventories of condos and homes in Aventura and an up tick in buyers for the month of June.

Much of this is due to the fact that more and more homeowners are heeding the advice of their realtors and putting more realistic prices on their homes and more buyers are taking advantage of the more affordable condos and homes in the market.  

But, as you can see, there is still plenty of inventory and the most popular price range is still around 300k. 

So if we are to see more prices ranges sell, more time will have to pass and more people will have to show real confidence before they buy more expensive properties.

There are terrific deals out there!  Check out my home search and find a property right for you.

Three Reasons To Buy Now

BUYERS ARE SITTING ON THE FENCE!

They should be buying, now and not waiting.  The economy can change significantly and suddenly, and all options change.

 

1. Prices are lower than they have been in five years.  In some instances, the prices have rolled back to 2002.
2. Interest rates are low and banks are ready to make new mortgages
3. Renting does not  add stability or hedge against future inflation

Now, let me digress.  Owning is still filled with advantages which people seem to forget.  Investing in the purchase of a home allows the owner to have tax advantages from the interest paid on the mortgage.  The low prices of homes today, will increase with time and there will be value in owning an appreciating asset.  Creating your own environment, decorating with your own taste and enjoying the privacy of your own home are invaluable.

Historically, real estate is cyclical.  Over time, it is still a wonderful investment.  Bubbles like we had in 2005 is in the past and the new starting point is now.  Prices have reset, we all have the chance to start over.

Americans who have amassed the greatest wealth have always invested in real estate and kept their properties over a long period.  This is a fact that is true today, as well.

The American Dream was not wrong.  It is still good to own property.

Five Great Deals In Atlantic I,II, III At The Point In Aventura

This is the exquisite development known as the Point of Aventura, five buildings with a world class spa, surrounded by the Intracoastal and fabulous amenities including swimming pools, and tennis courts.                                                                                                                                                                             

When I checked to see the Closed Sales in the Atlantic I,II,III buildings at the Point in Aventura, I saw some fabulous deals that I want to share with you.  The smart buyers who are taking advantage of the incredibly low prices of some of the most luxurious properties in Aventura are the lucky ones in this housing market.

 

 

 

 

1. Atlantic I at the Point  sq. feet 2733  list price $1,250,000  Sale Price $650,000
2. Atlantic I at the Point  sq. feet 3173  list price $799,900      Sale Price $625,000
3. Atlantic III at the Point  sq. feet 2440  list price $799,000  Sale Price $650,000
4. Atlantic III at the Point  sq. feet 2630  list price $749,000  Sale Price $658,429
5. Atlantic III at the Point  sq. feet 2440  list price $ 699,000 Sale Price $650,000

It is important to call to your attention that all, except the last property which was listed at $699k took a year or more to sell while the one priced at $699 sold in 52 days!  This is proof that the right asking price is key to a sale!!

Click my Home Search Button to see all the great deals still to be had!

Attention, First Time Homebuyers..When The Government Gives You Something Great, Take Advantage of It

FEATURE	CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008	REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009
Amount of Credit	Lesser of 10 percent of cost of home or $7500	Maximum credit amount increased to $8000
Eligible Property	Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence.	No change All principal residences eligible.
Refundable	Yes.  Reduces (or can eliminate) income tax liability for the year of purchase.  Any unused amount of tax credit refunded to purchaser.	No change Purchasers will continue to receive refund for unused amount when tax return is filed.
Income Limit	Yes.  Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return).  Phases out above those caps ($95,000 and $170,000).	No change   Same income limits continue to apply.
First-time Homebuyer Only	Yes.  Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase.	No change Still available for first-time purchasers only.  Three-year rule continues to apply.
Revenue Bond Financing	No credit allowed if home financed with state/local bond funding.	Purchasers who utilize revenue bond financing can use credit.
Repayment	Yes.  Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing.	No repayment for purchases on or after January 1, 2009 and before December 1, 2009
Recapture	If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale.	If home is sold within three years of purchase, entire amount of credit is recaptured on sale.  Applies only to homes purchased in 2009.
Termination	July 1, 2009  (But note program changes for 2009)	December 1, 2009
Effective Date	Purchases on or after April 9, 2008 and before January 1, 2009.  Repayment to begin for 2010 tax year.	All revisions are effective as of January