On-Line Real Estate Search

            With public access to Real Estate listings via the Internet many buyers in this market conduct research on their own, and while a lot of information can be discovered on-line, the most essential details are often left out.  Knowing how to decipher a Real Estate listing and what data to factor into your search may seem as easy at 1,2,3 – “I want 4 bedrooms, 3 baths…” – but in reality searching for the right home can be more of an algebra problem then simple math.   Take these factors into your next home search and you just may master the equation.

Active, Pending, Backup?  Oh My!

            The number one issue I see, hear and read about regarding on-line Real Estate search is that a large portion of homes of interest are no longer on the market when requests to view are made.  No one likes misleading information and this can often feel that way to prospective buyers.  As many of the popular Real Estate search sites don’t show current “status”, a buyer is left with no other opinion then ‘here’s a great home for sale’.  In actuality however, the home is no longer on the market or has been sold months ago!  As true up to date information of status is generally reserved for Realtors, it’s a good idea to check the status with your agent prior to mentally placing furniture in your new home.  An active status sale is on market with no current offers, pending means a contract has been executed and the home will close pending inspections or other factors necessary, and a backup status listing simply means while a contract has been executed the seller will consider back up offers shall the current contract become void or cancelled.  Understanding these points and jargon is step one when searching on line.

Important Financial Factors

            Perfect pictures and a wonderful description can make anyone excited about a home, but to fully protect yourself and be sure you are within budget you need to put other factors into play.  As many homebuyers will be purchasing with a mortgage, monthly fees can often drive or end a home purchase transaction.  Many varying costs of ownership are often not listed on the popular search sites.   Fees like HOA dues, taxes, additional insurance necessary and others are crucial elements to be aware of.  An exorbitant HOA fee or high tax rate can quickly put a home you thought affordable out of your price range.   To verify additional fees that you may not be aware of be sure to work with a Real Estate agent or ask the listing agent directly.  Planning results in protection, do your work and guarantee a successful sale.

Beware the bait and switch!

            Like all forms of marketing, some is ethical and honest while others are misleading and false.  Forum and blog sites that advertise Real Estate often lean to the latter.  Unethical agents have and will advertise properties that have already been sold, or at unapproved prices with hopes of landing a buyer call on the false advertising.  This is commonly referred to as the ‘bait and switch’.  To avoid being baited try to stay away from forum or blog like sites offering Real Estate for sale.  As at all times, your best bet is to work with a Realtor, but if searching on your own be sure to conduct your research on a viable and ethical site.

            Keeping these simple ideas in mind will save you time, frustration and possibly money!  If in need of true data always consult a licensed Realtor, they are and always will be your best source.

The 3 most important factors in choosing an agent

The 3 most important factors in choosing an agent

            How many Real Estate agents do you have to choose from?  The term “a dime a dozen” comes to mind, doesn’t it?  The truth is, yes, there are a ton of Realtors available at your disposal.  There may not be many however who can provide all you need to obtain your buying or selling goals.  Protect yourself and take these three factors into account when selecting your next Realtor.

Honesty & Ethics

            There may be no more important factor then that of honesty and ethics when choosing a Realtor.  Working with an agent with low ethics or one that you cannot trust to be 100% honest throughout the process is a recipe for disaster.  It is imperative that you work with an agent with strong ethics and an inherent character of honesty.  Many agents will skew the truth to obtain business.  I’ve seen some go as far as to pose with someone else’s wife and children to give the impression of a “family based” agent.  I can’t imagine how this person would react when asked about their wife and kids.  Starting a business relationship based on misleading advertising is a surefire way to create future issues during the transaction.  If you’re not working with an agent who is 100% honest and ethical, how can you truly be sure you have obtained an agent with your best interests at heart?

Advertising & Marketing

            When selling your home it is crucial that you work with an agent whom firmly understands the importance of advertising and marketing.  While the MLS alone can drive sales, having an agent who knows how to implement an advertising campaign personalized for your home is essential.  Many agents will tout the campaigns offered by their firm and most will count on this marketing alone as the only means to promote your property.  In these scenarios the home never receives any true personalized campaigns, and simply obtains “cookie cutter” marketing. Selling at a high dollar in a short period of time requires constant promotion in new and unique ways; and more importantly personalized to the subject property.  When interviewing or searching for an agent to sell your home, be sure you delve into their own personal marketing strategy, find out what they as an agent bring to you, the client. 

Knowledge of your area

        Selling a product that you are unfamiliar with is a fool’s errand.  I’ve seen time and again agents with listings in areas they have zero knowledge of.   Without a firm understanding of the locale you are selling in, there is absolutely no way to obtain top dollar for the inventory you hold.   When selling, be sure that your agent is well versed in the area you reside in.  Knowledge of your area’s schools, shopping, entertainment, etc are crucial.  The convenience an area provides can often add value to a buyer’s perception of the home, in turn, netting you a higher sales price.

        These 3 simple factors will help you decide which agent is the right fit for you.  The wrong partnership is a disservice to the entire process; be sure to conduct your own personal research prior to hiring your next Realtor.  When you find the right fit it just may be a match made in heaven, brining along with it an attractive sales price in a short amount of time.

I Sold Short… When can I buy a new Fort?

I Sold Short… When can I buy a new Fort?

            Short Sales have become standard fare in recent years.  A term that many could not define just 5 short years ago has quickly become the topic of table discussion throughout the country.  What was once an embarrassing scenario has, over time, become the norm.  There is no longer a loss of pride in selling short; it’s simply a strategy to better yourself and your financial position in the world we live in.  So if the Short Sale has become as common as a Kardashian eyeing you in the checkout line, does that mean it’s getting easier for a short seller to become a bountiful buyer?  The simple answer… YES.

Wait two years, and there may be cheers!

            Lynn Whitefall of Supreme Lending states that while many may be surprised, there are in fact loan programs out there today that that allow a short seller to purchase a new home in as little as two years from short sale closing date.   Banks need loans to profit and as many buyers in recent years fell into the same under water situation, they need to write loans once again to stay in the black.  Regulations have been modified to “repair” the bursting of the bubble we experienced.  Banks are allowing previous short sellers to purchase just 2 years after their short sale if taking a conventional loan with 20% down, or after 3 years if acquiring an FHA loan.  What was once a means to an end has become a feasible way to push the reset button.  If you sold short in the past or have to sell short in today’s market, don’t fool yourself – you CAN be a homeowner again!

Maintain your credit - don’t forget it!

            Home owners in under water situations can and have taken their frustration to exorbitant levels.  Some owners, so upset with their short sale situation, will knowingly destroy their personal credit as well; they’ll stop making payments to other creditors or simply rack up credit card bills without a plan to pay.   It is imperative that these factors don’t take place if you have goals of homeownership in the near future.  While banks are accepting loan applications from previous short sellers, credit worthiness is always going to be the main factor in their decision.  If your home is underwater, that’s one thing, but be sure to continue payments with your other creditors to maintain a strong score after the short sale clears.  Some brokers will refer to this as a strategic short sale, selling short with plans of purchasing again.  Keeping your credit score in check can and will allow you to buy once again, in as little as 24 months!

History repeats, but you don’t have to

            The time has come; you are in the market to buy a home once again!  Slow down Old Sport, I know you’re excited but let’s plan accordingly.  We all know how it feels to get past a life-effecting barrier; the excitement can be contagious.  Now more then ever, however, you need to be fully prudent, honest and responsible regarding your next home purchase.  Excitement can often lead to bad decision-making, over spending, and a lack of due diligence.  We don’t want to be in the same situation once again, so be sure to move forward with caution and care.  Work with a mortgage and Real Estate broker who will fully explain the terms of your loan as well as true fair market value of the home of interest.   By completing these tasks before you go to contract, you will be less likely to become a short seller again.   

            If in the market after a short sale situation or in need of selling short today, please contact Rick Rapp at 954-873-1801 for your Real Estate needs.

Flip or Flop?

Flip or Flop?

            As the Real Estate market continues on its upward trend, many interested investors are looking at the “Home Flipping” mold of Real Estate investment.  As prices rise and inventory levels for Bank Owned homes rise with them, the opportunities for a fast and healthy ROI are certainly existent in today’s market.   However, low prices on large homes don’t always lead to great returns.  If interested in flipping a few factors must always come into play to protect yourself and your investment.

Comp it out!

            A high grossing flip simply is not possible without high sales price comparable homes in the exact vicinity.  Be sure to properly “comp out” your neighboring homes.  Regardless of how much money you pour into a home flip, it’s unlikely it will sell for much more then the highest previous sales in the area.  Be sure to properly factor a realistic sales price for the specific home before you even start a renovation budget.  Your budget must be set based on comparable sales, not on what’s needed in the home you have your flipping eyes on.

Reputable… Contractor – find one!

            While all investors worth their salt will properly budget out rehab costs, no budget is safe without a reputable contractor on your side.  Be sure that you have a strong understanding of build costs, what will be done to the house, and how long it should take.  Jumping the gun without a true idea of fair pricing and timelines can and will put you upside down before you can say underwater.  Hold costs are a large and important factor in any flip.  Working with a contractor who will “get to it when he gets to it” will put stress on your budget and your mind.  Be sure to find a reputable source that understands your strategy, budget and timeline.

Death and… Closing Costs

            Two things are certain some say.. Closing costs are a part of all and any Real Estate transaction and can simply not be ignored.  As these costs can range as high as 8-9% we need to be certain that these upcoming charges are factored into all decisions made prior and during the flipping process.  A 10% return in 60 days is great, until you pay 9% of it to the closing of the transaction.  If uncertain how to obtain a strong estimate of true net dollar on the future sale, request a pre-HUD based on estimated values prior to writing that check.  Be certain the estimates are obtainable; and most of all realistic. 

            While Real Estate flipping can be fun, it’s also a very dangerous and risky investment and certainly not for the faint of heart.  Whether you go into it alone, or with a certified team, be sure to always prep before you buy.  The Due Diligence now can save tens of thousands in the future.   For additional info on Real Estate investing and flipping, please visit www.SFLAInvestments.com.

With rates on the rise, it’s time to grab that prize!

-->

With rates on the rise, it’s time to grab that prize!

            As rates continue to rise many buyers and sellers alike are trying to decipher how the market will react.  As the old saying goes, history repeats itself, and it likely will once again.  As mortgage rates have a direct effect on buyers’ purchasing power, there really isn’t any surprise that rising rates generally lead to declining house values.  So how do we react, how do we plan and strategize accordingly as buyers or sellers of Real Estate in today’s current market?  The best and most effective plan of action is to prepare to move swiftly on either a buy or sell side.  Time as they say is money, and even more so when rates are on the rise. 

I wish I could sell before values fell

            Timing of the Real Estate market, or any market for that matter, is simply futile.  We as consumers do not hold much if any power in terms of controlling rates and/or their effect on the market.  Many buyers and sellers do however, try to time the market with the intent to buy or sell at “just the right time”.  This strategy often proves negative, as the thoughts of holding on for just the right time will often lead to less then stellar results.  As we hold no control over future changes, we must move forward with a purchase or sales plan that favors us as much as possible in the time that we are currently in.  If you are planning on selling or purchasing, don’t wait until the time is right, as no one really knows when that time will come, if ever.  Instead, decipher what is happening now, in today’s environment and move according to today’s conditions, not what you hope they will be in the near future.

Maybe we should wait to get a better rate

            As a buyer your mortgage rate will have a crucial effect on your purchase power.  It’s not a secret that better credit leads to lower rates and lower rates lead to more spending power, however waiting for that “perfect rate” can and probably will take you out of the market.  By sitting on the sidelines buyers simply lose opportunities that may have been perfect for them.  Sideline viewing is great at sporting events, but if you are in the market for a new home you must be on the field at all times.  The popular quote of  “work with what you have” is a perfect slogan for buyers in today’s market.  If your rate is now higher then anticipated, prepare accordingly with understanding that it affects the entire market at the same time it is affecting you.  So instead of waiting for rates to drop, jump in with both feet and negotiate that perfect home with the insight that rates are rising, not just for you, but for all potential home buyers. 

Lock and load before you hit the road

            “Locking in” a rate is a service that many mortgage providers can and will offer which in this environment can be an advantage for you.  All buyers should be pre-approved before they enter any homes for sale, but an extra step you may want to take is to lock in an attractive rate before they rise again if your lender allows.  Doing so will allow you to move forward with a full understanding of where your loan amount sits and how the rate will affect your purchase power.  Having these key points fully understood and in hand will allow for a streamlined negotiation with no big surprises at closing.  If in the process of purchasing, be sure to ask your lender about a rate lock.

The market moves in ebbs and flows, movements that we can easily track but which are close to impossible to forecast.  If selling or buying, do so in the present – take future calculations or forecasts out of the equation and buy or sell in today’s market – not tomorrow’s

Protecting yourself as a Buyer today

            I’m sure by now many of you are aware of the “heating up” of our local Real Estate market.  Buyers are active, home prices are climbing, cash investors are purchasing, rates are low – what a perfect concoction for another bubble!  While we can’t do much of anything to control the market, what we can do is prepare, and when the market starts to heat up again as it is now, there is much that’s worth more to a buyer then true preparation, strategy and knowledge.  Without searching and purchasing with a specific plan of action in place you may find yourself stuck in an underwater home; as we know – history tends to repeat itself.  If in the market for purchase, be sure to take some points into consideration.

Know your limit!

            Before even searching for a home on-line or with an agent, it is imperative that you are 100% aware of your true purchase power.  Many buyers simply get a pre-approval letter from a lender and hit the road.  Unfortunately these pre-approvals are often insufficient and simply not valid for each and every scenario.  Factors will arise that can and will quickly affect your true purchase power.  HOA fee’s, insurance, taxes, assessments, etc., these are all current and realistic components which can have a large effect on your true dollar limit.  Be sure to work diligently with your loan officer and/or Realtor® to fully understand not only your credit and income based approved loan amount, but also all of the factors mentioned and how they will affect your bottom line.  You don’t want to place offers on homes unless you are positive the home is within your true spending limit after taking all factors into consideration.

Dare to compare

            Comparables or “comps” are a large driving factor of the Real Estate market, without them we’d simply be shrugging our shoulders and guessing values.  As pertinent information is so readily available on-line and through your Real Estate agent, it’s simply prudent to use all information at hand to get an idea of what True Fair Market value actually is for any home you have interest in.  We all know what it’s like to fall in love with a home, but if you over pay the love quickly turns to disdain.  Protect yourself and your stress level by properly “comping out” any and all homes you have interest in prior to final negotiations on any home.  Moving to quickly based on emotion while ignoring data, facts and trends will simply place you on the wrong side of this slippery slope.  Protect yourself by having your agent fully educate you on current values and be sure not to overpay.  You’ll be doing the future you a huge favor.

Be on the phone regarding your loan

            Due to rapid appreciation, past bubble and banks precautions in the lending field many loans are being denied at the last minute as of late.  If a deal falls apart in the first few weeks, it can be heartbreaking – but to fall apart a few days before or on the actual day of closing can be life changing.  I’ve seen moving trucks packed, rental units cleared out and buyers and sellers at a closing table followed by a dead deal.  If financing your purchase it is vital to consistently stay on top of your lender, or mortgage rep regarding your loan and it’s process.  Ask for and demand commitment letters, appraisal clearance, underwriting acceptance, etc.  These are issues you want remedied before you pack.  With escrow at risk and inspection and appraisal fee’s that could go to waste, it’s simply good business to stay abreast of this situation, if you can’t stay on it be sure your agent does.

Keeping these factors in mind can and will save you time, aggravation and most importantly – money.  For additional tips please feel free to reach out to me at rick@rickrapp.com or visit the TMR office at 5923 W. Hillsboro Blvd, Parkland FL.

Marketing your home to today’s’ customer

Pic Me! Pic Me!

            With the presence of the internet and the ability for buyers to view your home on-line prior to stepping on your front lawn, high quality pictures are of the utmost importance when promoting your homes sale.  Unfortunately I often come across listings with sub par photos that look like they’ve been taken on an iPhone, or are simply too pixilated or small to show a buyer any semblance of the home.   When a buyer comes across a listing with insufficient pictures they will likely ignore the home and simply click on to the next, quickly depleting your buyer base.  If you are getting ready to sell or are already on the market, be sure that your agent uses professional photos that truly show your home in its best light, not doing so simply takes you out of the game.

Video killed the radio star..

            A very popular way to showcase your home is with the use of video technology.  With today’s available computer software and editing programs, agents worth their salt will produce a video of your home – sometimes referred to as a Virtual Tour or as I like to call it, a Video brochure.  Video can be extremely powerful when combined with music and additional information on the home.  With the additional use of You Tube, Vimeo and other digital video websites, the exposure to your homes sale is greatly expanded when going this route.  Making an easy and efficient way for buyers to view your home as well as offering an effortless way for them to share with loved ones, family and friends.  If a picture is worth a thousand words, what would you imagine a personalized video of your home is worth?  If you want an edge over your competition, have your agent channel their inner Spielberg and show that home off to the world!

School Me!

            Buyers in today’s market are extremely savvy.  If not on their own accord, simply due to the fact that there is an abundance of information available to them at the touch of a “Siri” button.  Buyers crave info, and they want it NOW!  All too often I come across listings that offer little to no pertinent information on the home for sale.  “Great home, seller motivated” is not going to generate much attention, and will probably be a hindrance as buyers and agents with less time on their hands then ever before don’t want to “seek out” more info.   It is your agents job to inform the public as well as Realtors in the area as to what exactly your home offers.  Not giving this information up front or in a clear and consistent manner simply puts you at the back of the line, waiting to be seen and wondering why the phone isn’t ringing.  Take the time to inform all possible prospects by having your agent fully describe your home in a clear and honest way. 

            Taking these three steps into consideration will help you attract true buyers interested in what you are offering.  Without doing so, each and every buyer that comes through your door can be considered a “tire kicker”, they are trying to learn because they haven’t been told.  Educate them ahead of time to the best of your or your agents’ ability and you can expect fewer showings, and more offers!