In Defense of Realtors®

It appears that this morning, I'm in Op-Ed mode as I've written a piece for the Orlando Sentinel and am sharing this one in response to an op-ed that was played out on the CBS Sunday Morning Show yesterday, June 22, 2008. Watch the video to better understand my letter to the editor below:

http://www.cbsnews.com/sections/i_video/main500251.shtml?id=4200929n

Wow!! I was originally incensed by Gil Schwartz’, aka Stanly Bing’s, rebuttal of Andrew Cohen’s op ed piece. His list of ‘liars’ amazed me when he threw in Realtors® in the #1 position. How dare he!?!

Yes, as with any industry, we have our black sheep. But, as a Realtor® and a member of NAR (the National Association of Realtors®), we also have a very strict and comprehensive Code of Ethics which must be followed. And is followed by the majority in this industry. It forces us to be accountable for our actions. The public relations industry does not have any such accountability.

Yes, the PRSA (Public Relations Society of America) also has a Code of Ethics, but the Preamble simply states, that the “Emphasis on enforcement of the Code has been eliminated.” Yep, I see accountability here!

So, how can he describe Realtors® as in the #1 group of “really big prevaricators”?

And lets look at the public relations industry. Hmmm, lobbyists – oh no you won’t find any prevaricators there, will you? Mr. Schwartz was talking about ‘hacks.’ How about Spin Doctors? Oh yes, they only selectively present information to support their position. I guess since it’s only a partial truth, that is alright because they didn’t lie. Didn’t tell the whole truth either, but hey – that’s OK!

As a public relations person, I think you should think more clearly before you speak, Mr Schwartz. You are representing your industry just as I, as a Realtor®, am representing mine.

Marc Grossman

Apopka, FL

Mortgages & Closings

On this date in history...

Great fire of London occurred in 1666.

1st US lighthouse was built in Boston in 1716.

Women's Right's Convention met in NYC in 1853.

Carnation processed its 1st can of evaporated milk in 1899.

William McKinley, the 25th US President was shot by anarchist Leon Czolgosz at the New York Buffalo Pan-American Exposition in New York in 1901. He died 8 days later on September 14th.

The Harlem Globetrotters were organized 1927.

All Jews over the age of 6 in German territories ordered to wear a star in 1941.

WINS NYC began playing rock n roll with Alan Freed Show in 1954.


Mortgages & Closings

The Federal Reserve issued its economic update yesterday. It reported that credit problems in the U.S. have impacted housing, but haven’t hurt the general economy. I don't see how this can be so. Now, granted, the only reason that I can see for them to report this is because they are not wishing to reduce the rate again at the Sept. 18th meeting as many have anticipated.

Additionally, look at all the layoffs in the mortgage industry. Just yesterday & today, there were over 3000 layoffs announced and this doesn't include all of the previous ones mentioned, including the firms that have either closed or been disbanned. Add on top of that all of the mortgage brokers out there that are either being laid off and can't even procur a loan for a client.

A mortgage broker that I deal with has said to me that loan programs are being eliminated daily. Additionally, it was noted in an AP news story that a third of home loans failed to close in August. According to the article it was noted that three years ago only 4% of loans failed to close.

By the way, this information was obtained from a survey of 1700 mortgage brokers. "The survey also found that nearly half of borrowers with adjustable rate mortgages were not able to refinance their loans." It was also noted that 2.5 million ARM mortgages are set to adjust to higher rates this year and a great deal of these loans will most likely be foreclosed on.

On another note, even though the house & senate want to try to ease the present crisis, there does not appear to be any agreeement on how to do this. You may have also read about banking regulators and The Fed urging loan service companies to work with defaulting borrowers, but these are only suggestions and nothing is mandatory.

So, yes, they say that the mortgage and housing debacle are not making an impact on the general economy. Maybe this is so from the current statistics that they are utilizing, but wait until the next ones are recorded. This has stretched way beyond just the industry itself. It is affecting people across the board.

There was an article in yesterday's USA Today about the majority of calls to company helplines are about finances and foreclosure. Also, it was stated that how this will definitely affect productivity, etc. So, let's get realistic. This is a widespread epidemic of sorts.

Til next time...Marc It Sold!

Mortgages - Imagine That!!

On this date in history...

English astronomer Edmund Halley sees his namesake comet in 1682.

Robert Fulton began operating his steamboat in 1807.

General Robert E. Lee invaded the North with 50,000 Confederate troops in 1862.

George Eastman patented thefirst roll-film camera and registered the name "Kodak" in 1888.

1st transcontinental TV broadcast by President Harry S. Truman addressing the opening of Japanese Peace Treaty Conference in 1951.

Mark Spitz became the first athlete to win seven Olympic gold medals in the 1972 Summer Olympics in Munich, Germany.

Palestinians hijack KLM DC-9 to Cyprus in 1976.

Today is Newpaper Carrier Day - Barney Flaherty became the 1st newsboy (10 years old for the NY Sun) in 1933.


Mortgages

There are definitely mortgages to be had out there and some very good ones at that. You just won't be able to find the easy no documentation, low down payment & stated income mortgages of the past.

The reasoning is quite obvious. Goodness knows we've heard the news. And this is all understandably so. People need to properly qualify for mortgages. This is a major part of the breakdown of the mortgage industry. In the recent past, people with borderline credit were afforded mortgages. Some of these were low down payments; some ARM's in which they were only able to qualify at the initial rate not the fully indexed rate. This should have been common sense all along, but 20/20 hindsight does not prove anything. Hopefully, the lesson will be learned from this and we will not see a repeat of such.

Don't get me wrong, I am all for helping someone achieve homeownership. I consider that the crux of my job. I get such a thrill out of helping people achieve this goal - the supposed American Dream. But I can not in all good consciousness afford someone this fully knowing that they will probably have an issue repaying this debt and putting them in a position of possibly losing their investment, savings & home. The thought of that is abhorrent to me.

But there are some very good loan products out there. Yes, most of these are for people with good credit. But then this might be a wake up call for someone with marginal credit to try to work on improving that. This can be done, but let me warn you about credit counseling services. Firstly, the use of these usually ruins your credit to begin with. Secondly, what they are doing, you should be able to do yourself.

It's called discipline.

Til next time...Marc It Sold!

The Mortgage Debacle, The Market & The Fallout!

Today on this date in history...

First federal tax was levied on tobacco in 1862.

Emma M. Nutt Day, she was the first woman telephone operator in 1878.

Labor Day was declared a U S national holiday by Congress in 1894.

World World II began when German troops invade Poland in 1939 at 5:30AM.

Lead in paint is declared illegal in 1977.


The Mortgage Debacle, The Market & The Fallout!

Several things have been in the news. Yesterday, I touched briefly on the possible expanded role of the FHA in helping people to be able to refinance before they lose their home to foreclosure. I think that this is a necessary step by the government to help people and especially our economy, but my concern comes down to part of the criteria.

To qualify, homeowners would have to prove they paid their loan on time before it reset to a higher rate and must have at least 3 percent equity in the home. That is fine and also the fact that Pres. Bush is asking Congress to raise the present loan limits. But part of the criteria for one of these loans is that to compensate for the added risk, the borrowers would have to pay higher premiums on the loans and also some of the closing costs. Right then and there you are going to eliminate a lot of people who might be in dire need of help. They are already tapped to the limit. If they can't afford their present loan, how might they afford one with a higher interest rate & possibly having to come up with some of the closing costs, nevermind 3% if they do not have enough equity.

I agree that help is needed, but have to be concerned about the repercussions of this. There was an article in USA today in which Peter Wallison of the American Enterprise Institute said, “If you’re going to help someone to refinance, you’re going to bail out the person who financed him in the first place.... This will only cause the problem to arise again.” Yes, this may be true and is a concern, but that all depends on how the government handles the whole situation.

Another major group of foreclosures is coming from the investor group. We've all heard about the investors trying to grab a piece of the pie/cake. Unfortunately, this cake didn't rise as anticipated. The numbers are quite large in comparison. Nevada leads the pack of investor defaults followed by Arizona, Florida & California. Yes, all four of these states have been in the news quite a bit due to the change in real estate market conditions. They all have had incredible growth, but with that growth also comes some fallout as we are seeing now.

It was recently noted that even though Florida has shown a year over year price decline of almost 1%; the overall 5 year stats show a price gain of over 95%. Granted, this bodes well for most of us. The people that are obviously being negatively affected at this point are the sellers, especially those who've purchased within the past two years; those with ARM's that are being adjusted to higher rated; those with 100% financing, which I've always tried to dissaude people from getting involved in; and, especially investors.

Now, there is another group of people that are feeling the brunt of all this, and that's renters. According to another article that I've recently read, rents are projected to rise about 4 percent this year and next. This is being affected on many levels. Many previous owners that are finding themselves in foreclosure are turning into renters again. Additionally, more renters are also renewing their leases because they can no longer qualify for mortgages.

The only good part of this, is that some landlords are renting for less than their present mortgage on their investment properties, basically looking to just cut their loses. These people are avoiding foreclosure by doing such and because they have the present ability to afford it as well.

Anyway, till next time...Marc It Sold!

Mortgage & More!

Today in history....

US Naval Observatory was authorized by an act of Congress in 1842.

1st US men's single tennis championships 1881 in Newport, RI.

1st major earthquake recorded in eastern US, at Charleston SC, 110 die in 1886.

FDR signs an act prohibiting export of US arms to belligerents in 1935.

US National Guard assembles in 1940.

1st microwave TV station operated in Lufkin, Tx in 1955.

1st sun-powered automobile demonstrated, Chicago, Ill in 1955.

Malayasia (formerly Malaya) gains independence from Britain in 1957.

Former Teamsters' president Jimmy Hoffa reported missing in 1975.

Emily & William Harris plead guilty to 1974 kidnapping of Patty Hearst in 1978.


Mortgages

With the advent of the subprime market and more stringent controls in the mortgage industry, it was only a matter of time before more government-backed loans would be making a return. We are now seeing more FHA & VA loans. These loans went out of favor during the past several years because sellers had their choice of offers and didn't have to accept an FHA loan (which usually cost the seller more in closing costs) than a conventional loan.

As of tomorrow, Sept. 1, the VA will allow military veterans access to loans that exceed the present $417,000 loan limit thanks to Ginnie Mae, the Government National Mortgage Association. This will allow veterans to purchase homes in higher-cost areas, such as California, where the median home price is $568,000.

Now, FHA, another HUD agency which insures mortgages for low-income borrowers, may be allowed to guarantee mortgages for homeowners in default who are refinanced into lower-rate loans as well as also increase its limit to $417K if proposed legislation is passed.

Here's a link to a great article, U.S. faces deep economic downturn but recession unlikely, says Nobel laureate, Joseph Stiglitz . The long and short of it is that we are spending more than we are making and that holds true for us as well as our country. Joseph Stiglitz, a Nobel economics laureate, was quoted in this article stating that "... if it is not carefully managed, the fiscal consolidation will further depress the economy.”

Til next time... Marc It Sold!

Foreclosures

Today is National Toasted Marshmallow Day.

On this date in history....

William Penn left England to sail to New World in 1682.

Jack Dempsey wins middleweight title in 1st fight with boxing gloves in 1884.

Hubert Cecil Booth patents vacuum cleaner in 1901.

1st German plane bombs above Paris, 2 killed in 1914.

Gen MacArthur lands in Japan in 1945.

US Senate confirm Thurgood Marshall as 1st black justice in 1968.

Hurricane David, kills 1200 in Florida, Domincana & Dom Rep 8/30 - 9/13, 1979.

1st recorded occurrance-comet hits sun (energy=1 mil hydrogen bombs) in 1979.


Foreclosures

Yes, we've all been hearing about foreclosures and unfortunately, we are going to hear quite a bit more in the next couple of years to say the least. Just to give you an example, I get a weekly update from Freddie Mac as to their foreclosures available in my local area. I had not received one of these in basically a couple of years, but each week now I am religiously getting an email update and this list just keeps on growing and growing.

Not to pat myself on the back, but I guess I will and must say that I am proud of myself for never putting a sale before my clients best interest. I have never to my knowledge put a client into a situation where they could possibly lose their home because of changes in the environment.

I can even go as so far as stating that I would actually advise my clients of the risk of getting a something like a not only a 100% financing, but an adjustable-rate loan in addition. Not only could this be a bad decision, but we were not expecting rates to stay as low as they have. Granted, that's been accomplished due to the fact of other ensuing issues that have occurred.

I have always cautioned my clients to purchase within their comfort zone. Many would go to a Mortgage Broker who would tell them that they could afford x. Just because it says this on paper, can you really afford such? In most instances the answer is 'no' And, especially, when you take into account precarious loan situations.

It seems to have been the way of recent to buy as much home as you could afford. I don't know if was to better the Joneses or what. I've always stated that easiest way to hate your new home is to be living for it. If that is all you can afford and not having anything left for leisure activities, nevermind the essentials, then what was the purpose of purchasing that home?

I feel that it's an ethical and moral obligation that I have to my client. Maybe, I've lost some income due to this, but I'll tell you what - I sleep well at night!

Til tomorrow - Marc It Sold!

Cancellation Fees

Did you know that on this date in history...

Chop Suey was invented in 1896.

First Scout Camp Opened in 1934.

The Goodyear Tire Company was founded in 1898.

The Beatles performed their last public concert at Candlestick Park in San Francisco, 1966.

Ingrid Bergman was born on this date in 1915 & died on this day in 1982 from breast cancer.


Cancellation Fees

Now to cancellation fees. I have never charged a client a cancellation fee, nor have I ever entered it on a listing agreement. I've always felt that if the client and myself are not a good fit, than I am not going to hold them and their property hostage, nor will I be held at that same time if that may be the case.

Yes, I know the arguments that a realtor should be compensated for their work and costs. I can agree with this partially, but have to disagree on the whole. This is a part of the business. This is a part of being an independent contractor and salesperson. If you have a problem with this, than you might wish to reevaluate your decision to be a realtor. I know that a lot of people will totally disagree with me and feel that I am too harsh. But, I really feel that this is the reality of the business.

I could even possibly deal with a cancellation fee if was at least reasonable. But the new manager of the office in which I work and some higher management personnel are obviously on another planet. We are told to institute a $1500 cancellation fee. Let's be realistic, who the heck is going to sign a listing agreement with that policy? I'll tell you right now, that I surely wouldn't. This is whacked! I'll get back to my new manager shortly. Oh, by the way, did I mention the fact that when I spoke with my regional manager about this, because I did not think that this was the company's philosophy, I was informed that they never checked with the competition to see what they were doing and how much they were charging. I was totally blown away by this response. This is just a basic business principle - know who & what your competition is and what they are doing. Duh!!

One of my main reasons for never even thinking of instituting a cancellation policy, is that I feel that there has to be a matter of trust between my seller & myself. This is what I build. We have a relationship. To me being a realtor is basically that of building trust between my clients & myself. I am there to educate and lead them through the process to make sure that they make the right decisions for themselves. Aren't I supposed to be the professional?

Many of my sellers have become friends. In fact recently, I had a home that was just not selling and we took this home off of the market. These people have become such very dear friends. I care for them so very much as I know that they do for me.

So my new manager comes into the office. She is a very effervescent person. I do believe that she has a lot to offer. It appears that she does not have a lot of management experience, but sometimes that is a plus. Well, unfortunately, she also has two bad habits. Let me preface this by stating that she seems to be genuinely interested in helping. But, then again, her salary is surely corelated to the business that the office produces.

When she told us about the cancellation policy, it was just that. Not that it was talked about and this is the decision that her bosses came up with and that we will have to implement this. No, we were TOLD! Great management style - think we might just need a little bit of work here. Her other habit, which I understand drove her boss crazy during the interview process, is it is always 'I, I, I, or me, me, me.' Can you imagine how infuriating it is to hear this consistently.

Granted, I can only come the conclusion that she is probably egotistical to some degree and most likely also very insecure. Unfortunately, at present, I am dealing with a brother in the trauma center due to a motorcycle accident and twice in conversations with her, I came away with the feeling that she had to 'one-up' me with tales of woe that she has encountered.

Even through most of this and the fibs that we've encountered I have tried to just let it rest and go on, but this cancellation policy is so totally against my grain. I can't do this to people. I really do believe in the common good of all people. Yes, we know that there are others out there. But, let me ask you, why should the general good out there pay for that? I can't go through life looking for the evil in others and watching my back & being wary. I will give almost anyone a chance - a chance until they prove me wrong, then they won't get another chance.

I am not saying this is right or wrong, for it isn't. It is just the way that I tend to live my life. I would love to right more at this time, but am running late for I have to catch a plane.

See you here tomorrow again, when we'll do a little more on this date in history.

Til then - Marc It Sold!

The Market & some fun information...

Did you know that on this date in history....

St. Augustine, Florida was established in 1565. It is the oldest surviving European settlement in the United States.

Henry Hudson discovered the Delaware Bay in 1609.

Germany declares war on Romania and Italy declares war on Germany in 1916.

Today is Dream Day (Martin Luther King Jr. gave his famous "I Have a Dream" speech during civil rights rally at the Lincoln Memorial in Washington, D.C. in 1963.)


On another note, the mortgage debacle that we are all witnessing has definitely added to the real estate woes. Unfortunately, the number of available homes on the market is continually increasing. Granted, not at break-neck speeds, but increasing none the less. There are well over 9 months supply of inventory on the market and these numbers will rise as the builders are offering some great deals that are basically undercutting the pre-owned homes market.

Personally, I do have some listings, but have also turned away many as of late. It should be noted that I also sell new homes as well. You should never purchase real estate without some sort of representation on your side. You do not pay any more for a home if you utilize a realtor. Actually, in many instances you may pay less and get more for your money.

Market Update

OK, I know that I haven’t blogged lately, but can’t believe that it’s already been one month. My goodness, how time flies. But, finally, I’ve noted what is hopefully a good note.

As many of you are well aware, I like numbers & have been tracking the number of available homes listed in the Greater Orlando regional MLS. In mid June, I noted that the number of available properties slipped slightly one week, but then again continued to rise each week afterwards.

Well, this week, it again went down some. Maybe not a lot, but more so than I’ve seen in the past. It may not seem like a large number, but the number of available homes decreased by approximately 250. I can only hope that we are finally turning the tide.

OK, so this doesn’t mean that this period in real estate is over and everything is back to where we were over the past several years. But, it is still a good sign if this slide continues. I think that it might.

I’ve also noted that the calls for showing instructions have gone up over the past week. Granted, I feel that the properties that I have listed are priced well. But, I’ve noted a perceptible increase in the number of calls to see properties.

This in combination with the fact the fed has kept the rate steady & also that mortgage rates have slightly dipped over the past week all seem to be positive signs to our local real estate markets recovery.

Until next time – Marc It Sold!

Buying and Selling in Today’s Market – Is It Right For Me?

We are all aware of what’s going on in today’s real estate marketplace. There is no way that you can escape the news. It’s all over on the radio, television and in print. So where do you stand?

Firstly, the situation is not going to change anytime soon. There are too many factors that have contributed to our present market. One of the greatest, that most people are not aware of, is that of the mortgage lending business. This has greatly contributed the our present set of circumstances.

A little history. A long time ago when someone took out a mortgage, they generally had a relationship with their lender, who more often than not was their banker. The banker knew of their ability to repay a loan and lent money on this criteria. The banker also kept and serviced that loan for the life of that particular mortgage.

Well, the industry changed greatly in the past twenty years. Now, the originating lenders take the mortgages that they’ve made and then bundle them up and sell them to investors. Thus, giving the original lender money to go back out and sell more mortgages. This is great in that it brings more available money back into the marketplace. The downside is that the original lender no longer has the risk of carrying that loan. So, therefore, criteria became quite lax for procuring loans.

This is why we are seeing so much trouble with the subprime market. Too many loans were made to people who could marginally afford a home. With interest rates rising so has many adjustable rate mortgages and this further pushed many more people into that group. They couldn’t afford the higher payments and especially with the addition or higher insurance rates & property taxes.

Because so many of these loans were heading towards default, that it why we are seeing a collapse in the subprime market. It used to be that you could find a loan for someone with credit scores of less than 580. Now, that the subprime market is drying up, it is difficult to find a loan for someone with a FICO score under 620.

This fueled a lot of the buying and selling that we saw over the past several years. This, in addition to the fact, that a lot of people as they saw the prices of real estate moving up so quickly wanted to get in on the action also. Unfortunately, a lot of these people should not have. Many used their available funds or even home equities in their primary residences to purchase second homes or rental properties. When they could no longer afford these properties, they tried to sell them, but found that they couldn’t at a profit.

Many also used the increased value of their homes as a sort of spending account. Since incomes were not increasing relative to the value of their property, they would take money out, utilizing home equities, and use this money to buy cars, trips, etc.

But, this had to stop and it did! We were finding more homes languishing on the market. The builders were still building at an expanded pace. Therefore, even more homes on the market. The statistics show that most of these builders made profits last year, but that is now changing. Many, if not most, have seen losses this year. Many builders have stopped building speculation homes.

The combination of all of the things that I’ve just written about has contributed to the glut of properties available for sale. And yes, has driven down the price of homes. If you purchased a home within the last two years, you will find it quite difficult to sell it now at a profit and in most cases breaking even, if you are lucky.

Yes, there are many more factors that have also contributed to our state of affairs, but this is to just give you a general overview. So, now to the title of this blog.

It is definitely a buyer’s market and will remain so for quite some time. Right now in the two counties that make up the majority of the Greater Orlando area, there are over 20K single-family homes, condos, townhomes & villas for sale. This, when in what might be considered a normal market, when there was much less than 1/3 of that number of available properties for sale.

Buyers have a wide selection of properties to look at & choose from. Never has it been greater & especially when you note that the builders are offering such great bargains. Some even $100K and more off of the selling price. Others offering discounts, closing incentives & even a Harley-Davidson in addition. I’ve recently seen a home that was almost 2000sf with a starting price of approximately $250K. And this home wasn’t in the boonies or even near to such, it was right in the metro area.

Now, to the sellers. Unfortunately, there are many that just have to sell. They have to move whether it be for a job transfer, familial reasons, health, etc. These people have no choice. What I’ve stated over and over for these people is that you have to show Price & Value. Your home has to be in tip-top shape. People do not want homes that they have to do work on. There are too many others out there & they will just go to the next one. People are not going to overpay for a property. And this is where it also comes in – sellers have to be realistic in their expectations and pricing. 2005 is a long time ago and has nothing to do with our present real estate market.

Some may read this and think that I am a pessimist. I am not by any means, or at least try not to be. I consider myself a realistic optimist. We are still selling homes, but granted, they are selling at levels that we saw in the late 1990’s and early 2000’s. There is over a 16-month supply of available homes on the market.

Real Estate is a great investment, but it has always been meant as a long-term investment. Not, the short-term one it was considered in the recent past. It is no longer the cash cow that we saw through the past several years. There is no real estate bubble that we are going to see burst. But at the same time, you are not going to see lenders utilizing the line-up & sign-up routine of the past for mortgages. The criteria for such has been tightened.

One of the things that quite concerns me is what is going to happen when Wall Street feels the effects of the subprime market. Are we going to be asked to bail them out as we have with property insurance companies, etc? I hope not, they took on the risk & that is where it should stay. It’s not the public’s responsibility to bail out all of these companies. We, as individuals, cannot afford that.

Just remember – Price & Value. If you can show that, you can sell your home.

Until next time – Marc It Sold!

Beach Blog

There are a couple of things that I’ve been noticing about the real estate market that I wish to relay to you. But, before I get to that there are some miscellaneous meanderings that I wish to write about.

The many of you that know me, are aware of the fact that I try not to be a braggart. Yes, we all tend to do it at some time or another in our life. This is only human nature. I try to make it a point to not do so for the simple fact that I do not wish to put others ill at ease. So with that said…

Here I am where it all started – that is my blogging. I’m on a vacation of sorts in Ft. Lauderdale. Actually right now, I’m sitting on the veranda of the Atlantic Hotel, right across from the beach, drinking a Pina Colada. Yummy, it is!!

It always amazes me at what life throws at us. Or, maybe, I should say at what paths our lives take us. I’ve said this before, and must reiterate that I consider myself a very lucky and fortunate person. Yes, I’ve had my ups and downs just like the rest of us. I doubt if there is anyone that can say otherwise about themselves. The degrees to which vary and we may not be able to see that from our standpoint, but that is just it – it’s from our standpoint and perspective.

I’ve been planning on coming down to Fort Lauderdale for many weeks. This week before I came down I took my little girl, Nicci (Chihuahua) to the vet. Unfortunately, she came home with me, but I had to bury her. To say that this has upset me is an understatement. But, I have to remember that she had almost 14 good years and she was such a good girl & companion. She was my baby!

But getting back to what I was saying earlier, things occur & sometimes you have to wonder. Maybe there’s a connection and maybe there isn’t, but since that fateful day with Nicci, my phone has basically been ringing off of the hook with buyers & sellers.

The reason that I mention this is because there were a couple of items in the newspaper today that I will get to shortly. Additionally, I was talking with an associate of mine & she said the same thing about the buyers all of a sudden coming out of the woodwork.

Now, don’t get me wrong, the market is going to take quite a while to readjust itself. There is no doubt about this. But this obviously bodes well with somewhat a shift in the climate.

I received an email today from ORRA, the local realtor association, stating that the median price homes in the local market went up in May. Thirty year mortgages dropped slightly this week from an eleven month high of last week. But they are still under 7%. The Florida legislature has finalized what they are planning to do with property taxes & I think that the governor is signing such. There was also an Associated Press article stating that “The U. S. economy should expand modestly in coming months as a healthy job market continues to trump weakness in housing prices…”

Again, I must reiterate, it will take quite a while for the market to even out, but it does seem as if there are finally some changes in sight. We can only hope so.

Until next time – Marc It Sold!

Property Insurance and a Little Bit about Taxes

Well, the Legislature has reconvened for a special session & as I may have stated previously, I’m very concerned that we will not see anything good come out of this. There are many reasons why I state this. Firstly, the proposed plan, which is somewhat different from what I’ve previously blogged about, is still inadequate. And there is obviously quite a bit of legislators that feel this way as well. Many of the legislators, including some Republicans, are quite miffed that this currently proposed plan was worked out basically behind closed doors. Marco Rubio, the House Speaker from Miami, stated basically that they have a choice of the proposed plan or no change to the current system. As I’ve stated before, it just seems that he looking to make a name for himself. He’s already proposed a couple of plans which did not merit anything more than a cursory notice.

It’s quite sad because the only victims here are the people of the State of Florida. This is true with the tax situation and what we’ll soon talk about, property insurance. But, before I go there, there is one major note that should be brought to your attention. The current proposed property tax seems to be only affording most of us a mediocre savings that would basically be obliterated within four to five years time. And as I’ve stated before, I have a major issue with our legislators just replacing one flawed system with an equally flawed system. What’s the purpose except for them to say “Look at what we’ve done for you!” and most likely not be in office when we have to repair that system. Go figure!

Anyway to Property Insurance and Citizens Property Insurance Corp, in particular. The long and short of this, and you may have read this in a previous blog of mine, Citizens was created by the Florida legislature basically to protect Floridians and offer policies to homeowners who could not buy property insurance elsewhere on the open market. Many insurers have left the state, especially in writing policies on property.

The problem here is that Citizens has been allowed to grow, recently, way beyond its proposed structure. Firstly, it was underfunded at the beginning and we’ve found ourselves having to bail it out twice already. We pay for this everytime we pay our insurance whether it be to Citizens or another carrier. At present, Citizens is being told that it has to rollback it’s rates to that of 2006. Sounds great to the consumer, but what happens if there is an unfortunate catastrophe in the State of Florida. Hum, let’s think! Oh, I know, we’ll be bailing Citizens out again. This has to stop! It is not fair to the people of this state to consistently bail this company out of bankruptcy.

Additionally, as I was previously alluding to, Citizens has been allowed to go way beyond it’s scope. They offer cheap insurance to basically irresponsible coastal developers. They build these large high-rise condos on the beach in areas that are prone to disasters. Does this make good business sense to anyone? Please let me know. Let me also mention, most carriers would not insure a project like this or, at the very least, at the rates that Citizens is charging these developers.

Let’s take this one step further, so they build a coastal high-rise. They sell these units and now the unit owners and the condo association need insurance. Since other carriers would probably not be interested in insuring this property in the first place, where do you think most of these people will wind up purchasing a policy from? You got it – Citizens. Do you possibly see a problem here?

The other problem is that people in the state’s interior will be paying for this mess and they do not deserve that responsibility. Our legislators need to take action and do it now! They need to be more responsible about the development of our coastlines. They need to be fiscally responsible to the people, not big business.

Please do not get me wrong. I am not a radical or subversive or whatever may come to mind in that respect. But, I do firmly believe if you have a problem or a broken system it needs to be repaired. Just as if you had a broken tooth, you’d go to the dentist. You just wouldn’t let it remain open and possibly abscess.

This brings me to another insurance matter that is being handled incorrectly also. It seems that the Legislature is planning on allowing our No-fault insurance for automobiles lapse when it becomes due in October. The reason behind this supposedly is that there is too much corruption in the fact of people abusing the system. Under the current system, you must carry at least $10K of Personal Injury Protection (PIP) coverage. Basically, the elimination of this will allow people to drive uninsured. This will only create a greater strain on us & also our hospitals. Yes, again the system needs to be fixed. It is definitely flawed and rank with fraud, but the elimination of it is not the correct answer. Deal with the fraud. Eliminate that, but not the whole concept.

Again, thank you for reading my rantings and ravings.

Until next time – Marc It Sold!

Property Taxes – The Saga Continues

I’ve been very concerned about where we are going with the property tax reform, as I am sure most of you in Florida are as well. Last evening there was a Town Hall Meeting in Apopka with Rep. Bryan Nelson. The plan that was revealed was interesting, but I am still very skeptical.

My first order of skeptism has to do with the implementation date. Previously it had been talked about by members of the Florida legislature that they would ask for a special election in August of this year. Both Mr. Nelson and an article in the Orlando Sentinel have stated that we will not vote on this until January 29, 2008, the same time that we vote for the Presidential Primary. Now here is one place where it gets a little conflicting. Rep. Nelson stated that we would not see any property tax abatement until they become due in November ’08, yet the Sentinel stated that it is understood that we will see immediate cuts this year.

Well, if we are going to vote until January, they are not going to institute this tax reform retroactively. Can you imagine the mess that this will make?

Anyway, it gets even more interesting. OK, so we know and understand that Save Our Homes, albeit even though it was full of good intentions, is a flawed system that needs to be changed. Well, this is what they are planning on doing. Presently, we take the assessed value of our home, subtract the exempt value to give you the taxable value and multiply that times the millage rate that is set by the city and county commissioners.

Under the new plan, without SOH, you would take the Just Market Value (not sales price or market value as determined on the open market) and multiply that by 20% to get to your taxable value for homes of under $300K. Therefore, you would be receiving an 80% exemption. For homes valued from $300K – 1M, the exemption would be 70%. Personally, I think that this is too high going up to $1M. Unfortunately, we know that they will be appeasing a lot of well-to-do people with special interests, but we’ll get to that later.

Now, there is another twist, this will not pertain to the education tax that we currently pay. That will still be worked under the current program because they do not want education to be affected. While I understand this, that only makes the system convoluted, so now we are going to have two taxing systems.

Additionally, if you have greater savings under the current plan, than you will be allowed to stay with the Save Our Homes, but the rate would be increased from the current ceiling of 3% to 5-7%.

Are you confused yet? It just seems that we are taking one flawed system and replacing with another flawed system. The Orange County Property Appraiser was at the meeting, I had wanted to ask him what the cost would be for his department to implement this new system.

The property appraiser stated that the loss in revenue to Orange County would amount to approximately $73M. Yet, the Orlando Sentinel stated today that we are talking twice that figure. This is very disconcerting. Were we just being fed information that might appease us? How can there be so much disparity?

They did show where the cuts would come from in general terms. There was, of course, some from fire & police, but the major portion was just lumped in a general category for programs. Unfortunately, this means that the programs that are really needed are going to be cut or totally eliminated. According to the Sentinel, it appears that the cuts will come from health care, after school programs, etc.

Being on the Board of a not-for-profit health care, I am very concerned that we are going to further push an already stretched segment of the health care industry. There have already been cuts on the federal and state levels as to reimbursement, etc. Health care clinics serve all, but are a main source for the working poor and those with no insurance. A further cut in funding will only force these centers to eliminate some services, cut hours or even worse close much needed centers. This will only put a greater burden on our hospital emergency rooms which is where these people would be forced to go for medical care.

Let’s get real, the special interests need to be taken care of! So, again the people that are in the most need will be the ones that will have the least benefit & relief.

When you really come down to the numbers, it’s again the ones that have are going to get more of a benefit than the have-nots. This is definitely a shame.

There are too many topics that come to mind that I would like to touch on, but don’t’ want to be any more long-winded than I’m presently. So, hopefully, within in the next week, I’ll be writing a little more about Property Insurance and they way our Government works. It is time for some changes to be made. The system is broken and needs to be fixed – not mended. And the reality of all this, is that we are the victims, we are paying for it all.

Until next time – Marc It Sold!

Property Insurance – Our Nemesis II

Unfortunately here, in the State of Florida, we have a couple of items that are creating havoc with our economy and even forcing some into foreclosure. But that is another story and those people need to take blame for getting into something that they shouldn’t have in the first place.

Anyway, back to property insurance. Here’s an example. I know some people in western Oregon. They have a home of about 4000sf on many acres with out buildings, etc. Their homeowners insurance runs them $1000 a year plus another $500 for earthquake insurance. I on the other hand have an approximately 1500sf home on about 1/3 or an acre and am paying approximately the same for my homeowners insurance.

I need to backtrack a little to a previous post where I wrote about insurance companies and actuaries & how they had to know what they were getting into and the rates that they have been charging. Well, I’ve come to learn a little more about the history of homeowners insurance in Florida.

Insurance companies competed by keeping their rates low & then came Hurricane Andrew. After that catastrophe, most had huge losses but 11 of them went bankrupt. So the remaining companies started raising rates to match their level of risk & cancelling policy renewals.

Then our government decided that we needed to do something about this and passed laws to keep our insurance rates down. And then, finally, they created Citizens Property Insurance. This was to be the insurer of last resort. Remember this as we come back to that in a little while.

Well, lo & behold, then came the hurricanes of ’04 & ’05. Unfortunately, this bankrupt some companies as well. Oh yes, I forgot to mention, one of those companies was Citizens Property Insurance. But, don’t worry, we got taxed to bail it out. It even states on everyone’s policies in the State of Florida something to the effect of “Citizens Property Insurance Assessment, Florida Catastrophe Fund Assessment, Citizen’s Recoupment Fee,” etc.

Now, our Governor is asking that these insurance companies pass the buck or I should say the bill along to their customers outside the state of Florida. Additionally, they are allowing Citizens to grow and they were allowing them to raise their rates as well, but then enacted legislation to freeze their rates. They were giving Citizens the go ahead to compete head on with other insurers so they were no longer the insurer of last resort, when you couldn’t find insurance elsewhere.

So now, Citizens has basically gone belly up twice and, as I’ve stated, we are paying for this. It may sound good that there is an insurer out there with affordable rates. But what’s ultimately going to happen is that they are going to grow into probably the largest insurer in the State of Florida and when another unfortunate catastrophe hits this state we are all going to be left with the bill. It’s just a matter of time before Citizens Property Insurance goes bankrupt again.

Citizens Property Insurance is a problem that needs to be addressed quickly!

Until next time – Marc It Sold!

Property Taxes – Our Nemesis! – con’t

I was actually planning on writing about our other nemesis – Homeowners Insurance, but today’s Orlando Sentinel had much ado about property taxes and Marco Rubio’s new plan.

It seems that State Rep. Rubio’s previous plan was too drastic for many in the Senate, if not the House, to swallow. As you may have read in my previous posts, I have been a strong opponent to his plan. His new plan just seems to be a rip off of the one I wrote about yesterday, the one that was proposed by David Simmons of Maitland.

Unfortunately, Rubio’s new plan again goes too far. He is proposing that we pay property taxes on only 20% of the first $300K of the assessed value; 30% for the next $700K; and, then 70% of any assessed value over $1M.

This equates to a home with an assessed value of $300K, would only have a taxable value of $60K. As good as this sounds & what it will mean to our pocketbooks, this is absolutely outrageous – totally ridiculous. I don’t know if this man is trying to just make a name for himself in the short-term or what. My mind is just boggled thinking of the repercussions from a move like this. Yes, I agree that we need property tax reform, but come on guys, let’s use our heads.

Can you imagine the catastrophic cuts that will have to occur on the city & county level if something like this passes. Granted, I agree that there needs to be some trimming & more accountability, but this is not the way to go about it. With cuts like this it has to affect our basic services, nevermind what it could do to education.

Yes, a tax cut will finally get rid of Save Our Homes & at least we are seeing some that might be more equitable. Yes, a tax cut will also allow some long-term homeowners to possibly move who otherwise may have felt trapped because they might have been hit with a huge tax increase.

If Rubio’s plan or something similar with drastic tax cuts comes to fruition, all we are going to see is an increase in taxes somewhere else. Again, this is absolutely ridiculous. And the fact of the matter is that we will most likely pay more in the long run.

Hmm, so what purpose does this really serve except for someone getting their name in lights. I hope that I am wrong about Mr. Rubio, but all the signs point otherwise.

I look forward to seeing a property tax cut – as a homeowner & as a realtor®. I don’t like what’s happened with property taxes. Tax relief will surely help fuel more housing transactions. I think that it would surely help turn around a market that we are seeing flounder. I know that it would surely bring more buyers out of the woodwork. But again, our lawmakers have to be realistic.

Until next time – Marc It Sold!

The Southern Lawn

OK, so I’m going to try to blog about something other than the market conditions, etc. I know that sometimes it may seem somewhat depressing to you. I still wanted to give you helpful information, nevertheless.

Well, it’s May, the A/C is on, we haven’t had enough rain, it’s already in the 90’s almost every day. You got to love, but ‘oy’ how does your lawn feel about it?

Firstly, you should have already fed your lawn. This should be done at least twice a year. I usually do mine in March, July & again in October. There are some that also feel that you can do a late spring feeding in May – June and also a late fall feeding in November – December.

Now, to watering. I see too many people water incorrectly & this does not help you lawn in the long-term. As a general rule, most lawns require about one inch of water per week. The best time to water a lawn is early in the day. You don’t want to water during the heat of the day, because you will lose a lot of that watering due to evaporation. Secondly, it is illegal to water from 10am to 4pm in most parts of Florida due to our drought restrictions. You also don’t want to water in the late evening, because then you may be putting your lawn at risk for developing mildew and fungus disease.

Don’t water more often than twice a week. This actually hinders your lawn more than help it. And, surely, don’t give your lawn light sprinklings. This will only promote shallow roots.

Two types of weeds show up in lawns: broadleaf weeds and grassy weeds. Basically, any plant growing in the lawn that does not resemble grass is a broadleaf weed. If your lawn is full of weeds, the best solution is to use a broadcast herbicide to kill them. A few weeds can be pulled up by hand, but many will grow right back because of their deep tap root. It may appear that the entire weed was pulled out, but the tap root simply breaks and what is left in the soil sprouts new weed growth above the soil.

Grassy weeds are a bit tougher to control. Typically, grassy weeds like crabgrass die in the fall and drop thousands of seeds that germinate the following spring. This is why a crabgrass preventer is recommended in the spring.

The best defense against weeds is a thick lawn that is properly cared for and never scalped by mowing. A thick lawn will choke out weeds and never allow them a place to establish in the lawn.

Mowing your lawn once a week is sufficient and most Bahia & St. Augustine grasses should be 2 – 4” in height. Keep your mower blade sharp. A dull blade tears the ends of the grass & this will turn brown & possibly promote fungus.

Never cut off more than 1/3 of the length of the grass blades in a single mowing. Mow in different directions each time you mow & never mow a wet lawn. Again, this will not only give you an uneven cut but may encourage fungus growth.

Well that was fun. OK, happy lawn care to you!

Until next time – Marc It Sold!

Real Estate is Still a Good Investment – REALLY!!

I feel that real estate has & will always be a good investment. Historically, this has pretty much always held to be true. Granted, there are many out there & especially some who were trying to be investors and bought at the wrong time, to say the least, that might feel differently.

I think for the majority of us, our real estate purchases have done very well for us. Especially, in the past several years where we have seen so many either refinancing and cashing out or taking home-equity loans on their property. But now that the market is changing we are hearing a lot of grumbling. I think a lot of people are getting very scared.

Too many have been relying on their property’s wealth. Take this for example, in Florida 16% of new car purchasing in 2006 was paid with home equity loans. That is astounding. Mind you, California was at 30% while the national average is 7%.

Wages have not appeared to have kept pace with inflation. With the increased wealth in our homes & relatively low interest rates, etc; people were making up for this shortfall by refinancing their homes & taking cash out. Now with housing slowdown, taking equity out of your home is not as readily available.

But, Real Estate will still remain to be a great investment in the long-term. It that is what has to be remembered. Yes, some have done great in the short term, but real estate has pretty much always been a long-term investment.

Thank goodness we are in a great industry!

Until next time – Marc It Sold!

Home Prices Plunge - Stop the Hysteria!!

Today, the front page headline in the Orlando Sentinel is “Seller Beware: Home Prices Plunge.” We are seeing & hearing this from all types of media. The writer was discussing the Median Sales Price. The unfortunate problem is that many may be unfamiliar with the term and at the same time it is being used as an incorrect standard.

Let’s start with some clarification here. The Average Price is that of homes in any given period being determined by taking all of the prices of homes that have sold, adding them together & then dividing by the number of homes that have sold. The Median Price is the home that has sold basically in the middle. That means that 50% of the homes, during that period, have sold for more & also the other half sold for less than that price.

Therefore, when we discuss median price, we are saying what is selling at that point in time. This does not mean that house values have dropped. But in conjunction with the average price is a good indicator of what homes are presently selling.

Now, granted & I’ve discussed this before, the real estate climate is different all of the country & everything is relative. Here in Orlando we still have a healthy market. Yes, the number of sold homes is less than what we saw in the past few years, but we are still selling homes. With the record number of recorded sales in the past couple of years, it was inevitable that this should slow down to a normal pace.

OK, I know that the world ‘normal’ is used a lot & myself included, but there is in reality no such thing as a ‘normal market.’ The market, as is discussed in Economics 101, boils down to supply & demand – buyers & sellers. We have an oversupply of homes on the market. In Orlando, we’ve hit the highest level recorded – over a 14 months supply.

I track the inventory numbers weekly. I do this for personal knowledge of what is happening in my market. You need to know your market. Last week, the amount of inventory dropped from the previous week and I thought & was also hoping that this was an indicator of a shift in the market. Unfortunately, this week the numbers were even higher.

But, HOMES ARE SELLING! I will reiterate this & it has been my mantra, but you have to show PRICE & VALUE for a home to sell. And as a realtor®, as the professional, you need to service your clients. You need to be realistic as do they. You need to do the proper marketing for a home to sell. Homes are generally not going to sell themselves as they did in the past.

I think that I have an excellent marketing plan. I also have to assume that my clients feel so also. The reason that I mention this is because I consistently see other listings & have to wonder what do they expect to sell. There is either nothing really mentioned about the home in the marketing comments & I’m just reading facts in regard to size, # of bedrooms & baths; the pictures are usually terrible or non-existent; and, no virtual tour! How can you expect to sell a home like this?

I always try to find new avenues to market a home; and, yes, myself. Your listing and you have to be as professional as is possible for you. This is a career & a profession & you need to sell yourself as well as your product. Otherwise, your product will languish on the market. And, that serves no one’s purpose.

OK, so I got off on a tangent – Imagine that!! I’ve stated in my last blog that I was thinking of writing about ‘What is a Realtor®?’ I will do that soon, because there is a great misconception of what it takes to be a realtor® & what a realtor® does. It’s all about education. As a person and realtor®, I believe in further educating myself, but I also feel that it is just important that I educate the public. Without this is why we have so many misconceptions flying around.

Thanks again for the indulgence.

Till next time – MARC IT SOLD!

ps. Thank you Nury!

BEWARE – Deed Scam

Recently, I received a letter in the mail. I was pretty sure it was junk mail immediately, but opened this one up. Inside, I was told that I needed a Certified Deed for my home. I knew right away that this was bs, but had to read on out of curiosity. I was being asked to spend an amount, which I can’t remember. I’m pretty sure that the amount was enough for some unsuspecting people to think that this was legitimate need, yet not too much for them to question the validity. The letter went on to say that you need this to protect your interest in your home, etc.

This is a waste of money. When you purchased your home, you received a Deed and this was recorded in the county in which your home is located. You would have received back from either the closing agent or title company this recorded deed, which you should have placed in a very safe place & hopefully a bank vault. Even if you can’t find this document, it is easy enough to contact your local Official Records office & get a certified copy for just a few dollars.

I feel bad because I know that there are a number of unsuspecting people out there that will get sucked into this scam. I know this is not a scam in that it is harmful to people, but it is a scam nevertheless and should be treated as such.

Until next time – Marc It Sold!

Can YOU quantify success?

This blog was originally going to be about ‘What is a Realtor®?’ with this as a second part, but I realize that it would just be too long.

I try to keep upbeat & you have to in this industry otherwise you’ll just sink, but sometimes you just find yourself at a loss.

Take me for instance, many would consider me successful. But what is successful to one person may not be to another. Some may quantify in monetary terms (granted, that doesn’t hurt). Others may in the amount of closings you’ve had. Some may feel it is what you give to others. And then again there is the quality of life that you lead.

I think that it is all of these & more. I’ve been in the business for a number of years. Yes, I do consider myself somewhat successful. I’ve been busy, thank goodness, while others have complained and languished. Last year was probably one of my best years & this year appears to meet if not exceed that.

Let me backtrack for a moment, I am not a boastful person, even though this may appear differently.

So how do you measure success? I was at a loss this morning. Granted, this could partially be due to the fact that the holidays are here. But, I have to wonder. I have some great marketing pieces that I’ve produced. Friends have told me that they don’t know anyone who works as hard as I do. I don’t feel that it is hard work, because what I do is a joy. I really do get a lot of pleasure out of being a realtor®. This isn’t a bunch of bs. I don’t have time for bs & I’m sure as heck not going to try to sell it to you, the reader.

But, there are times, it is like what’s the next step? What can I do to promote more business? What can I do to get that home sold? And, I’m sorry, but I just feel at a loss. And this is when I have to question, am I really successful? Granted, when I do feel like this I just trudge into getting some work done and that does help. I also try to go out and walk/run. Another great help. In fact, that is where I came up with the idea for this blog.

I’m not usually one to put myself out there so to speak. But, on the other hand, I’ve also never denied what I am. I’ve allowed my life to be an open book. I have nothing to hide.

I tell people that are thinking about getting into our industry that you have to have a ‘thick’ skin. We all know that there is quite of bit of rejection in this business. I also tell people that you need at least six months plus living expenses.

I see quite a few people leaving this business now. Many, of course, came in past several years when the industry was riding on a high. And, now that we are settled into a normal business cycle, they are having issues and do not know how to respond. I’m very lucky that I know what a ‘normal’ real estate market is.

As a realtor®, it is too easy to get down in the dumps. We’ve all been there at least one time or another. And for some this is an ongoing situation. But to deal in this business, you have to pick yourself up. You have to remember that whatever you are feeling, you are projecting it onto others around you. People can sense a lot more than you may think. This is whether you are in person or on the phone. What do you think it is said that before you pick up that phone to put a smile on your face. It works. I know this for a fact, I am very good at converting.

I’m also very good at picking myself up, but yet there are times… Yes, I know that we are only human, but… I take my business personally. I know that there are many that do not, but this is just the type of person that I am. I’ve been very lucky lately in that my last two listings have sold within 45 days each. This is great in this market and these two listings were priced correctly; they were not low-balled. Yet, I also have a couple of homes that are quite nice & priced very well. Yet I can’t seem to get them to move. I told I have a great marketing plan. I’m all over the internet. Have great flyers & brochures. Virtual Tours. The whole shebang, yet…

Don’t get me wrong, I’m not crying here at all. And, of course, I’ve gotten a little off of track, but you can understand how I question ‘How do you Quantify Success?’

There are all of these coaches out there selling you expensive programs to make you successful. I have not bought into these. I’m sure that some have many good points to show you. But, I firmly believe that to be successful, you have to have it within you. It has to come from within, otherwise all of this reading, coaching, etc. will be for naught. You have to have the will to be successful. You have to have the desire to be successful. You have to want to be successful.

Thanks again for reading my rants.
Until next time – Marc It Sold!™

Where are the Buyers?

I’m sure that many are asking the same question. I continually keep on hearing that the buyers are waiting for the market to settle down. Buyers are waiting for that killer deal. Buyers are waiting....

OK, so we’ve had a reality lesson for sellers. It’s time for a reality check for buyers. In the Central Florida area, as I am sure with many parts of the country, the real estate housing market has settled down. Yes, there is a great deal of inventory out there, but homes are being sold. Granted, not at as fast a clip as the past few years. But let’s get realistic, that was an anomaly. I doubt if we will see anything like that for a very long time to come.

Sellers seem to be somewhat more realistic in that they are pricing their homes accordingly. I don’t know what so many have in their minds that the market still needs to adjust. It did that last year and that was really finalized by the end of the year. Prices aren’t dropping. They shouldn’t. There are some great values out there. You can actually purchase a home now and walk in their with some equity. Not like what we saw in ’05. This is the way a normal market is supposed to operate.

Prices are not going to go down lower & the interest rates have remained quite low also. This is a great time to purchase a home. There is generally price and value built into these homes. If there isn’t, then move on to the next property. There are enough out there to choose from.

I know some are now blaming the sub-prime market, but then again, these are people that are just always looking for something to blame. Yes, the sub-prime market took a hit. Well, heck, they shouldn’t have issued so many risky, really risky loans. But, there is money out there for people with ‘B/C’ credit. It can be found.

Hello folks, the market has bottomed out. It’s as simple as that. It has turned the corner. I’m not just saying this because I would like some buyers. The stats prove this out as do some of the articles finally being put into print.

I just sold a couple of homes within 45 days in this market. No, they were not underpriced. But, we were able to show Price & Value & everyone walked away from the tables feeling like a winner.

Til next time – Marc It Sold!

Why do people think we are Stupid?!?

It's just absolutely amazing to me that people must think we are stupid. Here are two things in particular that I've just come across.

My last post had to do with the Florida property tax issue. This morning I received an email from a realtor in Miami that must be a supporter of Marco Rubio, the House Speaker. Let me just give you a brief history here. He is proposing that we eliminate the property tax on primary residences & reduce the property tax on other properties by 20%. To offset this revenue loss he is wishing to increase the state sales tax by 2.5%. Ok, so here's what their website states, "Lower taxes and lower tax rates on apartment buildings and other businesses will reduce rents and keep rental housing affordable." Who is kidding whom here? Let's say you have a landlord who is receiving X dollars for rent on a unit & the property tax on that unit is reduced. Do you think that this landlord will reduce the rent below the X dollars that are getting now? But yet, there they have it in writing trying to persuade you to their point of view. They will get some people to believe them & I guess that this is enough - that is what they are after.

OK, enough of that one. Here's another I encountered the other day from an insurance agent. I decided to shop around because the insurance on my primary residence just went up way too high and too fast. Again, a brief history, I decided to change agents a couple of years back. The main reason for this is that I needed an Umbrella Policy to better protect my interests & myself. Two years ago, I paid $860 yearly insurance on my primary residence, which was higher than I'd previously paid, but was willing to do so. Last year, this increased to $1030 & this year my renewal came in at $1453. I had one claim back in '08 & the home is just over 10 years old.

So now to the story, I was shopping around and speaking to an agent. She said to me that our rates would not be this high right now if insurers were charging the correct amount all along. She further stated that our insurance rates in Florida have been much too low for too long. OK, so here's my issue with these statements. Insurers have actuaries work for them. These mathematicians create formulas that the insurers use in rating risk. Risk is the underlying factor in insurance. Things are cyclical - whether we are talking about the weather, life, real estate - it really all is very cyclical. So, getting back to insurers, do you think that they are not going to charge us enough to cover their risk? Seriously, now. This is what this woman was telling me.

The insurers ran this garbage back after Andrew in '92 and again after all of the '04 hurricanes. Granted, '04 was an anomaly, but how many years did we go without any severe storms that cost the insurance companies. If you look at their books, you will note that they are still making a profit.

Anyway, enough of my ranting! I just really ticks me off when people think we are stupid. It's fine to get your point across, but be realistic. Don't make it out that we are stupid! That is just such a lack of respect & that is something that I will not deal with. We all deserve respect!

Thanks again for listening to my meanderings.

Until next time - Marc It Sold!

Florida’s Property Tax Fiasco!!

I obviously haven’t written in a couple of months. It is not that I had not wanted, but did not wish to write about the same topic that has been so prevalent, the local market. I was firstly concerned about the negativity that some may derive from this, even though we are in a quite healthy market in Central Florida. I also needed some more inspiration to write.

A client of mine had suggested that I write about the property tax issue that we are experiencing. My first thought & reply was ‘no’. I did not want to write about such a controversial topic. Now, many of you who know me, would be surprised by this response. And you would be rightly so. So, here goes.

I am not aware of what is happening in other parts of the country, but here in Florida we are in the midst of a property tax system that is quite flawed. My concerns are varied, but one major concern is that the politicians will try to do a quick fix & tell us what a wonderful job that they’ve done in saving us money, only to cost us more in the long run down the road.

There is history behind this, which I’ve previously written about. We have in Florida SOH (Save Our Homes), which was passed in 1992. This limited the Taxable Value of your home to a 3% increase, if such is your primary residence. The purpose of this tax measure was to help the elderly from being taxed out of their homes. Unfortunately, even though this may have helped accomplish that task, it more benefited the well to do with expensive mansions, etc. They received a larger benefit.

Now, many proposals are being pandered about to supposedly fix our flawed property tax system. But to fix a flawed system with an equally flawed system is ludicrous.

One of the main proposals is to eliminate our property tax (on your primary residence) and have this replaced with a higher State Sales Tax. While some may feel that this is fair, it really isn’t. Again, the people that will benefit the most as those that have. The people with the mansions (big expensive homes or whatever you wish to call them) will benefit the most. The people that don’t have, those in the lower income brackets, will end up paying more via a higher sales tax and if will affect their pocketbook more.

Not only that, but this is just as inequitable to the renters. They too will be paying a higher sales tax and they are not even property owners. Some may jump the gun and say well everyone should have a larger share in paying for governmental services. But you have to remember that the owner of that apartment complex is already paying property taxes, they would not be exempt if there were a repeal of the property tax laws for primary residences.

It’s also been talked about that a Florida resident should be able to take their current SOH with them when they move; and, generally to a more expensive home. This would only worsen an already flawed system.

And doubling the homestead exemption is not really the answer also. The property appraisers are already shoring up their books and the tax rolls for a change. It generally used to be that the ‘Just Market Value’ on the property appraiser’s tax rolls was approximately 80% of the fair market value on the open market. With the increase in home values that we’ve seen over the past several years, this number became a much lower percentage. But if you check out the property ‘Just Market Values’ now (Orange County, in particular), you will see that many are at approximately 89%. So, you can see that the property appraisers are already trying to shore up values depending on what happens in the legislature.

Let me put this in another perspective. I have a friend whose home is on the market. They purchased the home 10 years ago and their property tax for 2006 with the SOH & Homestead Exemption came to $844. A prospective purchaser asked me what their taxes would be & when I figured it out I was totally astonished. Now, let me preface this first in that this is a lovely home, albeit under 1300sf in a middle class neighborhood. For the new buyer, their first year taxes would be almost $3200 and this is with the Homestead Exemption still in place.

You also need to be wary, because according to the property appraiser’s website, the Assessed Value of this home with the SOH went up 15%. What happened to the 3%? Most people wouldn’t even know. They don’t check their tax bills. It is generally escrowed in with your mortgage payments.

Let’s take a couple of steps back for a moment. Let’s say that the property tax on our primary residence is eliminated. What do you think will happen a few years down the road when they realize that there is not enough revenue coming in from the sales tax? I can tell you what I think - lo and behold, we will find ourselves with another property tax. What do you think will stop the legislature in doing that? By that time, we should have another administration in office and the blame will be put on them. Think about it!!

Additionally, there is another aspect to consider. With the elimination of a property tax, there would be a loss of jobs in that there would be less need for the local property appraisers and tax collectors. Now the monies would be going directly to the state and then funneled down to the local counties & municipalities. Granted, I’m sure there is a lot of ‘fat’ at the lower levels of government as there are at the upper levels. Maybe, this might be good in that they would have to trim a lot of that since the monies would now be coming from elsewhere. And maybe there would have to be more accountability. Only time will tell on this issue.

So, this is not an easy fix. But it also cannot be a quick fix. In doing so you will only be replacing one flawed system with another. What purpose does that serve, except for someone in power saying that they did something? Well, whoop de doo! If doing so leaves us in a similar or worse situation down the road, have you really helped anyone? Or are you really only helping your cronies? Beware, there are many lobbyists & PR people out there that will try to sell us a bill of goods. Just be wary! Be very, very wary as Elmer Fudd might say.

Until next time – Marc It Sold!

WOW - 2007 - con't

This started as just a comment, but has obviously ended up as much more. Just give me an inch...

Anyway, thanks for all the comments. In regard to the appreciation that Jennifer commented in from the last post, I agree with her. The reason for my stating a higher rate is because this has been typically true in the Greater Orlando market.

Orlando is a destination city & has continually bucked the national trend. Generally, while the nation has normally seen a 6-8% appreciation level, we in Orlando have encountered a typically 10-13% rate.

To make this a little clearer, Orlando was definitely behind in regard to the national median housing price. For many reasons in the past several years this has quickly been adjusted. Unfortunately, we are still mostly a service-oriented area. I won't get on my soapbox here about this rise continually locking more and more people out of purchasing homes.

The powers that be are definitely making efforts to try to change our being a more service-oriented industry market. They are doing so by alluring some high-tech companies to the area and obviously this includes much higher wages.

Another reason for our quick gain, is that many people move to this area from more expensive areas & have been willing to pay more for real estate.

In regard to the median housing price, the Greater Orlando area's median is $250K. Even though this figure see-sawed through 2006, it is still higher than 2005. Maybe not by much, but still more. Many markets cannot say this, unfortunately.

According to FAR (Florida Association of Realtors), "In Sarasota-Bradenton, for example, the median price went to $277,900 from $340,700 during the year-over-year period ended in October." WOW!

Until next time - Marc It Sold!

WOW! – 2007 – What Will This Year Bring Us In Real Estate?

Most of my posts are geared towards the consumer, but the thoughts that are coming to my mind make this agent-oriented.

Well, let’s start out with the fact that the market has ‘corrected’ itself in many locales, but surely in the Orlando area. We are still in a very healthy market. Inventory is on a downward trend and will hopefully continue so. Rates are still very good in the low 6’s. I’ve even noted in my personal business that what is usually a very slow week (the week between Christmas & New Year’s) has turned into a quite busy one. Three buyers have contacted me and I’m in negotiations already, one being on a property that I’ve listed. My office tells me that they have noted that it’s picking up as well.

Many realtors® may disagree that this is a healthy and rebounding market, but I have to beg to differ. I know several realtors® that have had a better year in 2006 than previously. And no, these are not neophytes. Most are seasoned veterans. A lot of people forgot (or especially the newbies who didn’t know) how to work in what many of us consider a ‘normal’ market. Too much was being taken for granted as business was just there for the picking.

It’s a simple fact of back to basics. The business will come to you, but you have to farm & prospect. It’s not just going to fall in your lap like in 2005. I know that I’ve written that clients need to remember that the summer of 2005 is over, but many Realtors® need a wake-up call. The only way a realtor can last in this business is to be adaptable. You need to be able to adapt to a changing market. You need to be able to adapt the changing times. Your prospecting and farming need to be adapted to today, not yesterday’s style.

I’m seeing, as I sure a lot of you have, that there are still wholly overpriced listings being placed on the market. What I’m also seeing, & this really makes me laugh, is a listing with a price reduction. Yes, I know there are many out there that like to disguise this as a ‘price improvement.’ Please, we all know what this is and so does the seller & buyer, so why the sugar-coating. It just looks like you’re trying to disguise something & that doesn’t work in the long run in real estate. People aren’t stupid. They have so much more access to available information. Call it what it is. Believe it or not, you will look better in the consumer’s eyes.

Sorry for the digression, I was mentioning about listings with price reductions. But what I’ve seen while looking further at many of these (more than I would expect to see), is that the property had an increase in price from the original pricing. Do they not know how to properly price properties? I think this is so basic or at least it should be to be a realtor.

I think that we will see a consistent and steady change in 2007. We will probably see appreciation in the neighborhood of 7-13% depending on your market. This is quite normal as most of you should be well aware.

I think that buyers are finally getting over being wary of the marketplace, even though the media did a great job in scaring the crap out of some people. Interest rates are expected to be historically low. PMI is now fully deductible on your 2007 income taxes for households making less than $100K. Existing home sales are expected to increase, while new home sales are expected to slide.

Miami-based Lennar Corp., one of the nation's largest homebuilders, said it expects a fourth-quarter loss, its first decline in at least a decade, as it reevaluates how much its inventory is worth, etc.

Right now builders are giving away the farm, but they have to get rid of inventory. Otherwise, they are going to be paying a boatload of interest on those completed homes for sale. Many are reevaluating their positions. We’ve all read about this.

This all bodes well for the existing home sale market & us in general as realtors®.

I’m looking forward to a great 2007 as you should as well. You need to have a positive attitude in this business, otherwise you are only being self-defeating.

I love what I do & I love Real Estate!

Until Next Time – Marc It Sold!®

Selling Your Home With Pets

Let me begin by saying that I am a pet lover having had many over my lifetime & enjoying those of friends & family. Unfortunately, there are many people out there that are not pet lovers or at least not of many breeds.

Most of us would not think that this is a problem. But, there are many people that will not go into a home with pets that are 'on the loose.' Additionally, there are many people that will spend less time in a home that has pets that are not of their liking. Too many of us this is surprising and may even sound bizarre, but when you put it into perspective it is quite understandable.

So, therefore, we need to take many things into consideration when selling a home with a pet(s). Now, again as I've said, I love most pets. I will usually play with the pet & keep him/her occupied while my clients are viewing the home. This usually works for the pet as well as the prospective buyers. A lot of times, you will find buyers that have no issue with the pets. And, yes, we all know about those loveable, cute pets that just pull at your heartstrings just by looking at you. They can almost sell the home themselves.

But here are some things to possibly remember & some tips for all of us.

1. If it smells... That in itself is probably enough to be said. Sorry, but I've had cats & very rarely did my litter box smell. Guess what? I don't want to smell yours. Neither does anyone else. Clean that litter box & keep it clean or put it out of the way. But those are not the only smells. Most odors come from dander. You need to deodorize your home often & keep your pet bathed and groomed.

2. Stains. Clean them, there are many good products on the market for 'pet stains.' Clean that carpet before listing your home, or if it is that bad, then consider replacing them. Sorry, but smells, stains, etc. are not going to get you top dollar for your home, nevermind, the length of time on the market needed to sell a home in that condition especially when there are so many other available homes to purchase.

3. Keep Pets from Showings. If it is at all possible, take the pet for a walk while your home is being shown. It will make it a much more pleasant experience for the prospective buyer. Loud barking dogs are not always a pleasing sound & may actually scare potential buyers. This only limits your potential pool of buyers. As your realtor, we are constantly trying to increase this pool for you.

4. First Impressions. The old adage is so very true - First Impressions are Lasting Impressions. This not only includes smells & carpet stains, but also possible gnawed moldings, scratches doors & door jambs, holes in the backyard, poop in the backyard, etc. You obviously get the picture & so will the potential buyer that viewed a home like this. I don't care how pretty the home may be otherwise, it is the total picture that has to be taken into consideration. And, yes, first impressions do last & will most likely have the prospective buyer out of your house quickly if care is not taken to these details.

5. It's all about perception! If someone enters a home & it smells & there are stains on the flooring & scratched door jambs, etc. They should also wonder what else this home holds for them. I'm sorry if this seems harsh, but if I enter a home and see this, I do have to wonder what else hasn't been taken care of & kept up. This is only being realistic & I'm not being mean.

We love our pets & there is no reason that they should hinder a sale. Nor do they have to be responsible for lowering a realistic price on a home. It is our responsibility & this can be taken care of without a great deal of inconvenience to all.

Best Wishes & until next time... Marc It Sold!

A Little of This - A Little of That!

Housing costs have risen substantially within the last couple of years. Have wages increased as much? We know the answer there. Now, I'm not going to get on my soapbox. But, we continually each day lock more and more people out of the housing market. Condos are costing in the 100K's; a nice relatively reasonable 3/2 single-family home will run approximately the mid 200's. Enough of that, but it is something that we do have to keep in mind. We should never forget, because that only leads to possibly losing the lesson.

Real Estate has returned to what it was normally. The market is very healthy. We are very lucky in the Greater Orlando area, because we are a destination city. We are also the #2 city in the nation for Conventions, even knocking Chicago out of that position. But, there is a lot of competition out there. There are over 21,000 MLS listings available.

This is going to be a difficult time for For Sale By Owners, unless they are willing to wait, what I would think would be, quite a while. I've even noticed what seems to be more homes going into pre-foreclosure. The summer of '05 is no longer. I'm not saying this for doom & gloom. But this is reality.

In regard to pre-foreclosures, people should speak to their lenders before it is way too late. And by too late, I mean, when they are already starting the papers. It takes several months before a homeowner is served with a pre-foreclosure notice. If you are late, there are some lenders that will allow you to tack on those payments to the end of your loan period. Granted, this will definitely cost you, but what will losing your home cost you? There are also other ways, but you must speak with your lender. You have to understand that the lender does not really wish to own your property. They are not making money on it. They make money from the payments that you send in each month.

Anyway, enough for now. Call me & I'll be more than happy to discuss this and any other topics with you.

Until next time....Marc It Sold!

Tax measure goes easy on the rich

In 1992 in Florida, a property tax break measure entitled, "Save Our Homes," was passed. What this does is take the Tax Assessed Value of your home at the time of purchase and limit this from being increased more than 3% per year for the current owner until the home is sold. The intention of this was to be of assistance mainly to the elderly from being taxed out of their homes. Unfortunately, the wealthy have received a proportionately greater property tax benefits than those intended. Read the complete article at http://www.orlandosentinel.com/orl-sohday206oct30,0,6678504.story

Until Next Time - MARC IT SOLD!

Deducting Interest When You Are Not on Title

The following is an interesting article entitled, "Housing Counsel: Deducting Interest When You Are Not on Title," written by Benny L. Kass & published on Realty Times. I did not know that it was possible to deduct the interest on your taxes if you were not on the title. But read the follow case in point to understand the parameters of which this may occur.

Question: I want to buy a condominium unit for my son. Although he makes a decent living, his credit is not good. Accordingly, the lender has advised that title must be in my name only. My son will live in the property and make all of the mortgage payments.

Can he deduct the mortgage interest on his tax returns?

Answer: The answer is a qualified yes. There are certain rules which you must follow since if the IRS ever challenges the deduction, the burden will be on your son to prove that he is eligible to take the deductions.

We must first look to the regulations which have been promulgated by the IRS.

Regulation 1.163-1(b) reads as follows:

Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness.

In August of 2003, the United States Tax Court addressed this situation and denied the interest deduction. The petitioner bought a house for his mother and although the mortgage loan was not in his name, he made the monthly loan payments. He argued to the Tax Court that he was obligated to repay his mother and “that his failure to repay would result, upon his mother’s death, in a corresponding reduction in his testamentary share of his mother’s estate.”

But the tax court rejected this argument. Based on the facts which were presented in evidence, the Court determined that the petitioner was neither “directly liable on the note securing the mortgage on his mother’s house, nor (was) he a legal or equitable owner of the property.” (Montoya v IRS, decided August 5, 2003.)

What exactly is required to be an “equitable owner”? Our legal dictionaries define this as ownership by one who does not have legal title.

Let’s look at this example. I own property A; I am the legal title holder to the property. I enter into a contract to sell the property to you. Based on that contract, even though you have not yet taken title, you have certain rights. These rights are based on the legal principles called “equity” -- namely that the courts will do what is fair under the circumstances, rather than strictly interpreting the letter of the law.

Obviously, each case has to be decided on the specific facts presented to the Court. In the Montoya case, the Tax Court determined that the son just did not have enough evidence to prove that he had some kind of ownership in his mother’s property.

Several years earlier, this same Tax Court did allow a couple to deduct the mortgage interest even though they were not on title to the property. In Uslu v IRS, the following facts were presented to the Court.

Uslu had filed for Chapter 7 Bankruptcy relief and was not eligible to obtain a mortgage loan. His brother bought the house, in which the only occupants were Uslu and his wife. The loan was in the brother’s name only, but Uslu made all of the mortgage payments. He also made all of the repairs and improvements to the property. The brother signed a Quit Claim Deed conveying the property to Uslu, although this Deed was never recorded on the land records.

The Tax Court found that Uslu’s mortgage payments “constituted payments on an indebtedness” and thus could be deducted for income tax purposes.

According to the Court:

The Court is satisfied, from all of the evidence presented, that petitioners (Uslu) have continuously treated the ... property as if they were the owners, and that they exclusively, held the benefits and burdens of ownership thereof. On this record, the Court holds that petitioners established equitable and beneficial ownership of the (property), and they were liable to (the brother) in respect of the mortgage indebtedness.

How do you meet the burden? Here are some suggestions:

1. Your son must continuously live in the property. To prove this, his driver’s license, voter registration and utility bills should be in his name at the property address;

2. You and your son should enter into a written agreement, spelling out that he is fully obligated to make the mortgage payments on a timely basis, and that you reserve the right to evict him should be go into default; the agreement should specifically state that you recognize that your son has an equitable interest in the property;

3. Your son must be responsible for all maintenance and upkeep of the property, and

4. You should prepare and sign a Quit Claim Deed, in recordable form, conveying the property to your son. This will not be recorded, but will be further evidence of your decision that this property is, in reality if not legally, owned by your son.

There obviously are no guarantees, but if you follow the guidelines spelled out in the Uslu case, you have a good chance of prevailing should the IRS challenge your son’s deductions.

Until next time - MARC IT SOLD!

Supply of homes on market takes dip?!?

That was one of the font page headlines in today’s, 10/21/6, Orlando Sentinel (http://www.orlandosentinel.com/news/local/state/orl-homes2106oct21,0,349657.story?coll=orl-home-headlines). While this may be so, as reported by ORRA (the Orlando Regional Realtor® Association), I find that it is at the same time somewhat incorrect in that there is a better defining picture of this situation.

Statistics are great. They are the numbers – the so to speak ‘black & white’ of the situation. But at the same time they can be manipulated. That is one basic reason that I do not believe in the CMA (Comparative Market Analysis), because I can take those numbers and manipulate them to my needs. At one time, & I apologize for the digression here, an appraisal was as good as the bible when it came to real estate valuation. But this has drastically changed over the years. Lately, I’ve seen appraisals that were so wholly undervalued & then another appraiser might come in with a greatly different value. The reason that I mention this here is that as good as numbers are, then can be greatly manipulated.

Back to the article in question. While a good article, it states in the second paragraph that the supply of homes in the Greater Orlando market has dipped. And this is true. But in the fourth paragraph, the article mentions the sales drop "in the Realtors' core Orlando market (mainly Orange and Seminole counties)."

Why I say that this is conflicting is because for the past 10 months I have weekly gathered the data on inventory of single-family homes, condos & townhomes that are listed available for sale in the MLS in just Orange & Seminole counties. While I’ve seen a couple of weeks here & there where there has been a drop in inventory, the overall data suggests differently.

Proof in point:As of 10/17 the total inventory, as specified above, is 16,045. On 9/20, this figure was 15,828; and, on 8/22, 15,479. I utilized these dates because they are approximately 1 month apart. This shows you that even though there was a week 9/28-10/4 where there was a drop in available home of 93 units, that we have had a consistent rise in inventory in the core Orlando market.

I am not saying your story is erroneous, but I think that this shows a better picture of what is really going on in the Greater Orlando Real Estate Market, especially in the counties of Orange & Seminole.

Until next time – MARC IT SOLD!

FSBO’s – Where are They Now?

Last year, 13% of all homes sold went the For Sale By Owner (FSBO) route, according to the National Association of Realtor’s 2005 Profile of Home Buyers and Sellers (www.realtor.org/Research.nsf/files/2005HBSonlineHighlights.pdf/$FILE/2005HBSonlineHighlights.pdf) That figure will show a drastic decline when the 2006 figures are published. FSBO’s work great when we are in a seller’s market – but that was so last year.

Most FSBO’s go that route because they wish to save on the commission (nowadays I require a 7% commission). But I must admit that my marketing, as a realtor®, has also had to be altered. I have to offer a lot more to my clients. But that is for another story.

Studies have shown that you can get more in less time utilizing a Realtor®. A recent NAR Profile of Home Buyers & Sellers study showed that a realtor® can get 16% more for a typical For Sale By Owner home. Everything else being equal & you just do the math, why would anyone want to go the FSBO route, if you figure that they will average at least 9% (16 – 7) more utilizing a realtor®? I just don’t understand the logic; but then again, I think that too many people do not look at the whole picture & just one little aspect of it. So, who’s kidding whom?

Last year, you could put a sign in your yard & your home would sell within a reasonable amount of time. Nowadays, you need a proven marketing plan. And, utilizing a discount realtor®, who will typically just charge you a fee for putting your home in the local MLS (Multiple Listing Service) is not considered a ‘proven marketing plan’, nor should you expect your home to sell too quickly.

Presently in the Greater Orlando area, there are over 16K homes for sale and that’s just in two counties – Orange & Seminole. How can someone think that by just putting a sign in their yard that they are going to garner the attention necessary to sell their home with that much competition? And that does not even include a lot of the homes offered by new home builders that are not listed in the MLS.

A good marketing plan has many different aspects to it & includes advertising in different media. Even a realtor® who just puts a sign in the yard & places the listing in the MLS is not doing enough. You need to show Price & Value to sell a home these days. It’s not difficult, but you have to prove it & not just once. Because for a home to sell, it must first be sold to the selling realtor® before it can be sold to the buyer.

Leaving this all aside, there are still many reasons not to go the FSBO route.

Pricing your property to sell involves more than just comparing it with other houses that have recently sold. The uniqueness of each property and its own values are based on location, condition, financing, amenities and other market factors.¨

Advertising can be very expensive, especially if you continue for a sustained period of time. Additionally, your Realtor can market your home utilizing avenues that are not available to you; including, but not limited to, the Multiple Listing Service.

When prospects inquire about your property and you are tempted to enter into a purchase agreement, how can you protect yourself from non-productive involvement? A Realtor should pre-qualify prospects bringing you Qualified Buyers.

Are you willing to admit Strangers to your home? Accepting unescorted strangers can play havoc with your family life. A Realtor using an Electronic Lockbox can identify the realtor who brought prospects into your home and when.

Selling your home can be a time-consuming assignment. You are literally married to the property and the inconvenience can be overwhelming. You have stay close to the property or you may miss the one buyer you’re seeking.

Financing is very frequently the key to a successful housing transaction. Buyers without the right advice and information may not see their way clear to buy your home. Your Realtor is able to help your buyer structure the right financing to meet his objective and yours.

How do you solve prospect problems? Your best buyer may well be someone who already owns a home, and whose decision to buy another property is premised on selling their present one. Your Realtor can sometimes arrange interim financing or a guaranteed sales agreement executed on the existing property.

It is difficult to Negotiate your own position. A Realtor should be prepared to counsel both yourself and the potential buyer, so the differences can be bridged and a transaction successfully consummated.

Once you’ve agreed to sell, there’s the matter of clearing title, obtaining financing, arranging insurance, working with lawyers and other agencies. You can avoid costly mistakes by relying on professionals who control and safeguard your housing investment. Use a Realtor®.

Prices are going to drop $50K!

I don’t think so, but a dear friend of mine who is also a realtor heard this from her client. I, myself, also heard someone say that they will not buy in this market because they expect prices to drop $25-35K. This is absolutely ridiculous!! But, unfortunately, people believe this because of what they’ve read in the media.

There was a great article in this Sunday’s Orlando Sentinel (10/15/6), “Signs point to a healthier-than-expected real estate market,” (pg H-51). I’ve been professing this since the beginning of this year.

We are basically in a normal market & that we’ve been going through a market correction. I just didn’t expect mortgage rates to remain this low. I really thought that they would inch up to the 7% range by years end. It looked like we were going there, but they have retreated to the approximately 6% level. That is absolutely fantastic! What that really translates to is market affordability for many that might have been locked out with higher interest rates.

What we are seeing now is a “correction” to a previously overheated market leading us toward “normal” market conditions. I do not foresee a “crash” that so many have been professing and many fear. Prices need to adjust. It comes down to the basics, that we learn in Economics 101, of supply & demand. With an oversupply (10 months at present for the Greater Orlando area) you need to market your home accordingly. Too many home sellers think that this is the summer of 2005 & won’t adjust to this reality, at least in their mindset.

I still see homes being placed on the market that are wholly overpriced. This is just ridiculous. This home will just sit & then the realtor needs to ask the home seller for a price reduction. Many in the industry are calling this a “price improvement,” but let’s get realistic, we all know what it is. I, as a realtor, cannot see why some people wish to take overpriced listings. OK, so you will have your name on a sign rider in front of this home, but that will stay there for quite a while. As a consumer, people have to wonder when they see a home sit on the market for such a long time. The homeowner may wish to price it high, but the realtor at the same time needs to take the blame as well. This is just poor marketing.

According to the article author, Kenneth Harney of the Washington Post Writers Group & Doug Duncan, chief economist of the Mortgage Bankers Association, “Not only to the doom reports ignore the positives in the marketplace – mortgage rates in particular – but the rhetoric is just way overwrought.”

Until next time – MARC IT SOLD!

The Housing Market, Clients & an Update

For quite a while I’ve been professing that to properly market someone’s home, we need to show Price & Value. With so much available inventory, you need to be able to stand out in the crowd, otherwise you can be easily overlooked. I still see listings that are wholly overpriced. These people are obviously being unrealistic in regard to the current market conditions - the summer of 2005 is long past!

An article released yesterday by NAR (the National Association of Realtorsâ) reiterates such:

“NAR President Thomas M. Stevens from Vienna, Va., said sellers need to price to current market conditions if they want to sell within a reasonable amount of time. ‘In some areas home sellers are not making sufficient adjustments in their listing price, so their homes are staying on the market and contributing to the build up in inventory.’”

(you can read this article in it’s entirety at http://www.realtor.org/PublicAffairsWeb.nsf/Pages/ehs_aug06_existing_home_sales_holding?OpenDocument)

We have just experienced five years of outstanding growth and the housing market now is going through a period of adjustment and heading towards a more balanced market. Rising mortgage rates, speculative investors pulling back and many first-time buyers being priced out of some markets during those years have contributed to the normalizing of the housing sector. They also note that 2006 is expected to be the third strongest sales year on record.

On another note, I listen to my clients. In this instance, a client asked me if it would be beneficial to place an info tube on the sign riders in front of her home. I had stopped doing this for many reasons and my first inclination is that it would not help procure a sale. Yet, after careful consideration, I do wish to add this because it might help with more interest since this home is the lowest priced home in the subdivision & that is explicitly advertised on the flyer.

I try to look at all issues from all angles. Sometimes you have to remove yourself & try to view the issue from the ‘outside looking in’ as a third-party to the situation so to speak.

Additionally, some people have asked me what happened to the home in the previous blog entry. Well, the deal has fallen apart. My client could have possibly lost over $23K from the builder that they were planning on purchasing from. We did nothing wrong in this situation; whereas the buyer did not disclose that they had a home to sell prior to purchasing this home. Nevertheless, we are hoping that the buyer will honor the contract & release the escrow to the seller. In the meantime, I am personally purchasing their home. I do not see any reason that they should be injured more than they presently are. This is a terrible situation, but thank goodness I am very lucky in that I have the ability to do this. Most realtors probably could not do this & it would be a very sticky situation in which there might be lawsuits, etc. involved.

Don’t hesitate to contact me with your questions & comments. Until next time - Marc It Sold!

It's all about - ME!?!

I have a friend that always says that, supposedly somewhat jokingly, but we all know the truth. I have never been like that. Generally, have pretty much always tried to consider the other person & their feelings. Won’t deny, but sometimes to a fault.

Haven’t written much lately. I guess some might call this writer’s block. Also haven’t written much about myself, but I think that my persona has come through in my writing. I tend to be straight-forward & just thought that some of you would like more of an insight into me.

I am a very lucky man in that I love what I do. Being a Realtor® is a blast!! Yes, there are some difficult times in which I’ve wondered ‘what the hell am I doing here?’ But this usually only comes about in dealing with unprofessional people. All in all it is such a blast, such a rush, when you are able to help people achieve a goal – whether selling or buying. My Vision & Mission statements say it all. You can view those on my website at www.orlandohomes-4u.com/2006/vision.php.

Many of you who know me, know that I consider myself a very lucky man. I am not a very religious person. I am observant, usually in my own way & not through any structured organization per se. The reason I say this is because I find myself continually thanking G-d. Yes, there are people to be thanked also, especially my parents, because no matter what, they must have instilled some things in me. We are what we are taught.

My ramblings here may seem somewhat convoluted, but hopefully you will see where they all come together. My outlook on life & work is not that I wish to become rich, monetarily. I already consider myself very rich – emotionally & spiritually. My goal is to live comfortably & thank goodness I have achieved that. I have a nice home – modest by many people’s standards; I drive a couple of nice cars; have a great dog, Nicci; I’m healthy & I live well.

Yes, I do make a good living in real estate – I am good at what I do. In fact, very good, even to the point of being proficient. But, I will not profit on some else’s poor fortune. I can not intentionally hurt someone. I believe in being fair. Actually, I believe that in any transaction in which I am involved, that all of the parties need to come out that feeling like winners. A buyer feels that they have gotten a good deal; a seller feels that they have received a great price for their property.

In all my year’s in real estate, I have never had a deal fall apart. Unfortunately, I am experiencing that for the first time. The reason that this has never happened before is because I am a stickler for details. In the years that I’ve been in this business, I consistently hear realtors® talk about a deal that has fallen apart at the last minute. It’s always behooved me to understand how this can happen. But the reason being is that they were not on top of things. They either weren’t in contact with the mortgage broker, title company, etc. I always call them. I hate surprises. Or let me qualify that, I hate surprises like that when it comes to business. There is no reason for it. In the instance that I am presently dealing with, the buyer did not have a contingency clause that the sale was predicated on the sale of their home. Of course, being the sleuth that I am, I found this information out several weeks ago. At that time, I quizzed their mortgage broker at that time if this was the case & he assured me that it was not. Well ‘lo & behold, their deal is falling apart. But, thank goodness to the many professionals in this business, we may be able to salvage this deal for everyone, because otherwise so many people will be adversely affected. I have a major problem with that. I especially have a major problem with my seller being injured. I will go to great lengths to not allow that to occur.

As you can see, I get personally involved with my clients. I can’t just say to my client ‘Sorry, you’ll have to change your plans, life threw you a curve – too bad, deal with it.’ It is not just a deal to me. This is not just like buying a piece of clothing. This is a major investment, probably one of the biggest that most of us deal with & needs to be handled as such. I take it personally & it upsets me when something of this nature comes up. I have to try to look at every different avenue to get us to the final outcome that we were looking for in the first place.

OK, enough about real estate. As I’ve written I consider myself a very luck man. I am 52 years old & it seems each decade of my life has been better than the previous one. It amazes me how much I’ve learned and grown. It really amazes me on the things that I’ve realized about life & myself since turning 50. Believe me, I’ve done some very stupid things in my life. I’ve created strife for myself. I’ve also learned from my mistakes. I believe that life is a learning experience & you have to treat it as such. If you don’t learn from it, you will lose the lesson. There are too many people out there that just keep on going, but are not willing to learn or change. We know enough people in our lives that keep on making the same mistake, for lack of a better word, over & over again & are constantly complaining about it. We all have patterns – some good & some not so good. It is a matter or realizing this & changing those destructive patterns. Yes, it may be more easily said than done, but surely not impossible.

I am somewhat simplistic, in that everything can be broken down to it’s bare basic roots. We are the most intelligent being on this planet – that works both ways, for & against us. We tend to over think things. But to get to the root of the matter, I think try to simplify things. By taking away all of the extraneous matter, you can then delve into what the root of the problem at hand may be.

I am extremely blessed man in that I have a great support group of friends & family. Their care, concern & love for me, as well as me for them, is extraordinary. But I, as well in my business, tend to treat people the way I wish to be treated. I guess that this comes through. I am not one to be able to hide my feelings – I wear them on my sleeve.

We see so much negativity around us. I’ve learned that this can easily bring you down. There is no way to keep negativity totally out of your life, but it is how you tend to handle it & deal with it that makes a difference. I can easily allow negativity to bring me down & then allow such to progress into a depression. Been there – done that. That is not what I want out of life. It is very self-defeating. I must say at this point that I do not take any anti-depressants. Again, been there, done that in the past. The only medication that I take daily is a vitamin. I try to keep a positive attitude. Sometimes that is somewhat difficult, but it is a matter of how you look at things. What I learned is that your mental attitude and outlook on life is a matter of a healthy body, mind & soul. If you let one go, let’s say not taking care of your body, then the others will follow suit. They interact with each other. It all comes down to a matter of how you feel about yourself & what you want out of life. Life is so freakin’ Grand. Go for it! Take care of yourself, because you can not take care of someone else without taking care of yourself first. So, I guess it is all about ME!! Not really, but I think you get the point.

Thank you for indulging me here. Until next time – Marc It Sold!

Insurance

As I alluded to in the previous post, I wanted to discuss the topic of Insurance and specifically Condo Association Insurance. Again, as I've stated while writing the Market Trends post, this also has been a topic in the news that is of great concern to many of us.

Insurance in itself has gotten out of control in the State of Florida. I won't deny that I am not sure as to the rest of the nation, but in Florida we are probably pushing toward an epidemic of sorts.

If you are not aware of what is occurring, than let me recap for a moment. Firstly, the cost of most housing insurance has skyrocketed in the State of Florida. I started becoming more aware of this situation while helping a client who was relocating to the western side of the State much earlier this year. Now, granted, we expected the insurance to be higher because there was a pool involved, but when quoted that the least expensive would cost $2300/year, we were totally astonished. Couldn't believe that we were getting rates upwards of $2800.

Anyway, we've most likely heard about people being dropped by their insurer, therefore, not being renewed and having to search out other options. In Florida, we have a state insurance fund of last resort, Citizens Insurance. Unfortunately, we've heard the debacle that they are in. Oh by the way, we are all paying for that with surcharges on our policies, whether you are with Citizens or another carrier.

Citizens actually has to have higher rates so that they are not in direct competition with the other insurers that wish to do business in Florida and write policies. Citizen has also become the largest insurer in the State of Florida due to others pulling out. This has put all of us in a precarious position.

OK, enough of that doom & gloom. Now to another aspect of the insurance industry that is also quite scary and will affect so many lives & unfortunately be devasting to quite a few. When you purchase a condo, you should get homeowners insurance. Now the condo association also has a master policy covering the association, buildings, common grounds, etc.

Here's the first part of the sad part. There are fewer & fewer insurers that are wishing to provide this for these associations. Many are just dropping these assocations, while many others are in some instances quadrupling the association rates. I know of one community where I've been told that because of the rate increase they are going to have to raise the monthly maintenance fees that the condo owners pay at least $100. In the Orlando Sentinel, it was mentioned last week, that Lake Villas in Altamonte Springs off of Maitland Ave. has their rates increasing from approximately $33K/year to $197K. This in turn is requiring them to increase the monthly maintenance fee by $200/month.

Can you believe that? Do you understand how this will effect the owners there, many probably on fixed incomes. This will force people from their homes into uncertainty. This for many is like an additional mortgage payment.

Unbelievable, but what really gets me are the insurance companies. All of a sudden we are hearing of their supposed wows. Bunk!! How dare they! Do they give us breaks when they are making lots of money? I don't think so! But, we surely do hear them complain when they have to pay out large sums for the natural catastrophes that we've experienced in the last couple of years.

But & this is what really gets me, they have actuaries. An actuary's job is that of a statistician to compute risks & therefore premiums. So, they had a few years where they had to pay out. How about all of those years in which they didn't have to pay out so much? Again, did they give us a refund? Anyway, we all know that the weather is cyclical. We've gone through periods of this before. This is not something new. But the insurers are asking for increases & getting them, royally.

Where does this put us all? Unfortunately, like I stated at the outset, insurance in the State of the Florida is heading toward epidemic proportions. The state needs to do something and quickly. That means NOW!! Do you think they are listening?

Until next time...Marc It Sold!

Market Trends

My original intention with this blog, was to include more tips on caring for your home & to tell you more about me. But it seems that the slant has been more towards market trends. To some this may be boring & I apologize for that. But it is very important to us. Real Estate has become a much published topic. We read about it in the newspapers & on the net. We hear about it on the evening news. We've seen it & it's effect in our daily lives.

Granted, a lot of what I've written is my educated opinion, obviously derived from my experience; sources that I've read; and, speaking with other real estate professionals. I've mentioned before that I really like numbers. They don't tell the whole picture, but do give us a great insight into what is happening. This is why I've tried to back up my opinions with facts & numbers, so it doesn't seem as if I'm just spouting off at the mouth. Goodness, knows I can do that also.

But the reason that I've written more about the market trends, is that this effects us all and is very important. With all that we've seen & heard in the real estate market, I think that it is something that needs to be addressed. We've all seen the doom & gloom articles & editorials and a lot of what I've read is pure bunk. My intentions are to try to give you a balanced account of the state of real estate. Yes, I do have my prejudices & biases, but I do try to keep those to a minimum when writing an opinion.

Sometimes, it is difficult for me to decide what to write about. There has been so much in the news that is of great concern. So, today, I am going to discuss the annual housing report released by the Harvard Joint Center for Housing Studies - "The State of the Nation's Housing 2006." http://www.jchs.harvard.edu/publications/markets/son2006/index.htm

The report overall is positive on the housing market - that "the housing sector continues to benefit from solid job & household growth, recovering rental markets, & strong home price appreciation," and as long as these remain in place, "the current slowdown should be moderate."

Households are expected to accelerate from about 12.6 million over the past years, to 14.6 million over the next ten which combined with projected income gains and a "rising tide of wealth" should "lift housing production and investment to new highs."

However, affordability will also intensify, as the economy is generating many low-wage jobs and land use restrictions are driving up housing costs. Incomes are rising much faster in the top ranges than in the bottom ranges for homebuyers. The number of households paying more than half of their income for housing has shot up & will continue to increase.

We've seen & heard about affordable rental housing disappearing. Just look at all of the condo conversions that we've seen around.

The report also goes into financing in that we've seen a shift from fixed-rate mortgages to adjustable-rate mortgages & other products. In just 2 years, the interest-only loan shot from relative obscurity to 20% of the dollar value of all loans & 37% of all adjustable rate loans in 2005. Payment option loans accounted for nearly 10% in 2005.

As bad as that sounds, the report says that only 3% of owners had equity less than 5% in their homes & 87% had a 20% or higher equity in 2004.

Housing gains are continuing even while home sales are softening. Driving housing will be the baby boomers who will boost markets for senior housing & second home.

Until next time when I plan to discuss the rising insurance rates & condo associations - Marc It Sold!

Is the Market Insane?

Wanted to Blog, but wasn't sure what to write & then I spoke with a friend & she was under the impression that the "Market is Insane!" I won't deny that I was taken aback by this. But from what we talked about, it seems that quite a few people think this.

Now, I know from talking with quite a few realtors that the impression is that buyers are waiting for prices to come down. I won't deny that I still see homes that are priced for the type of market that we saw last year. But, in general, it seems that people realize that they have to price their homes well to sell. With an inventory of over 15K available homes for sale in just Orange & Seminole county, sellers better price their homes well & possibly offer incentives if they wish their homes to sell.

But, now let's look at the other side of the coin. We are still selling near the same level of homes as was being sold last year. Many do not realize this, but that was a phenomenal year. We sold more homes than in previous recorded history. In fact, in March of this year, ORRA (Orlando Regional Realtor Association) noted that 2878 homes were sold & this compares to 2529 homes in March 2005.

This reverts back to what I've been saying in that we have a very healthy market in the Greater Orlando area. In fact, we've sold more homes in the first five months of 2006 than we did in 2005.

So, homes are selling. Even with the increase in interest rates. Homes that show well & are priced well - will sell, as long as they are marketed properly. I've said this before & even have read it recently, but we are in what most of us consider a 'normal' housing market. Granted, the median price has risen to its highest level at $252,990 (May 2006) with an average sales price of $311,119.

Homes are presently taking 74 days on the market & this will lengthen with time. Historically, we've seen worse & not all that long ago.

It just proves to me that people need to be educated to the facts. As with anything else, this does put things into their proper perspective.

I, myself, have always believed in education. That is why I've gone on and received my GRI (Graduate Realtor Institute) & still continue to read & try to improve myself. I also believe at the same time, that it is my job to educate you, the consumer. I believe that if I did not do so, I would be doing you a disservice. I am the Real Estate Professional. This is why you ask me for advice & hire me for my services. And, I wish to thank everyone for that!

Until next time - Marc It Sold!

Orlando Rankings

What a coincidence! After writing the previous post, I came across an article in the Orlando Sentinel by Lynn Thomasson, entitled, "Where Orlando Ranks."

Orlando is ranked #2 behind Las Vegas as a summer destination according to Expedia. But, it seems that we are 1st, according to the American Society of Travel Agents, as a domestic travel destination.

According the Milken Institute, Orlando is 6th in job creation & sustainability.

This all bodes well for the Greater Orlando area and proves out some of the things that I have written in regard to Orlando & real estate.

So, until next time, let's just Marc It Sold!

Rates, FSBO's, Pre-foreclosure

It's been a while. There are several things that I wish to mention today. Firstly, I wish to apologize because we are still working on the links on our website. That problem will be remedied in the near future.

The Fed made another increase, as was expected. Of course, there are the concerns for inflation. Mortgage interests have been climbing. Presently, they are hovering around 7%. Yes, this is higher than we've been experiencing in the past several years. But, when you reflect upon it, you realize that this is not so bad. Eight years ago we were at this level and even 1% higher the previous year. And, who can forget the 80's. My Goodness!! So, when you put it into perspective, it's really a different story.

Now, granted, housing costs have risen substantially in that same period of time. Have wages increased as much? We know the answer there. Now, I'm not going to get on my soapbox. But, we continually each day lock more and more people out of the housing market. Condos are costing in the 100K's; a nice relatively reasonable 3/2 single-family home will run approximately the mid 200's.

Enough of that, but it is something that we do have to keep in mind. We should never forget, because that only leads to possibly losing the lesson.

Real Estate has returned to what it was normally. The market is very healthy. We are very lucky in the Greater Orlando area, because we are a destination city. We are also the #2 city in the nation for Conventions, even knocking Chicago out of that position.

But, there is a lot of competition out there. There are over 19,000 MLS listings available. This is going to be a difficult time for For Sale By Owners, unless they are willing to wait, what I would think would be, quite a while.

I’ve even noticed what seems to be more homes going into pre-foreclosure. The summer of ’05 is no longer. I’m not saying this for doom & gloom. But this is reality. In regard to pre-foreclosures, people should speak to their lenders before it is way too late. And by too late, I mean, when they are already starting the papers. It takes several months before a homeowner is served with a pre-foreclosure notice. If you are late with your payments, there are some lenders that will allow you to tack those onto the end of your loan period. Granted, this will definitely cost you, but what will losing your home cost you?

There are also other ways, but you must speak with your lender. You have to understand that the lender does not really wish to own your property. They are not making money on it. They make money from the payments that you send in each month. Anyway, enough for now.

Call me & I’ll be more than happy to discuss this and any other topics with you.

Until next time….Marc It Sold!

#'s of Homes on the Market

In answer to Vicki's comments - There are many more factors that come into play, but you are most suredly correct with your assumption.

Today (6/16), 20% of the available homes in Orange & Seminole counties have a build date of 2005 or later. I need to clarify this a little further. In several instances, I have come across the condo conversion that has the year built listed as 2005, which is quite erroneous. One of the other factors that has fueled what we are currently seeing in the market, is that early last year we had people seeing others making good profits in buying some new construction for resale.

These people saw this and decided, "Well if they can do it, why can't I?" Well unfortunately, a lot of people placed contracts on homes to be built, but most were not taking possession until at least 10 months later. The Market Changed!!

There is a large subdivision near where I live. Currently, there are 72 homes listed for sale, 30 of which were built in the last year and a half. WOW!! Not only are some of these people that bought homes for investments facing other investors for competition, but also owner occupied homes & the builders themselves. And this does not even take into account that only some of the builder's lots are listed for sale, they have many more in addition to this. We will touch more on this in a future blog.

Till next time - Marc It Sold!

What A Difference A Year Makes!

OK, I really like numbers & stats. Granted, they are not everything, but they do portend the current situation. So, I was just checking some stats for a project that I'm working on. Presently, there are 12,971 available single-family homes, condos, townhomes & villas in Orange & Seminole Counties. Last year at this time, there were 3710 available properties listed in the MLS in the Greater Orlando area, not just the two counties. Right now we have almost a 7 months supply of inventory compared to 1.19 months last June. Additionally, at that time it took approximately 27 - 30 days on the market. Today, the average is over 50 days on the market. This is just some information. Make your own conclusions, but take into consideration that we are still in a healthy housing market. The supply just greatly outranks the demand. But, the sales volume of sold homes is at pace or ahead of the previous couple of years. Thus making, at this point, 2006 a very strong year.

Boost Your Home's Value Reasonably

Really wanted to discuss the previous post a little more, but felt that the tone of this blog might be taken the wrong way. There is so much information that I wish to impart upon you. Yet, at the same time, wish to make this a not only useful, but some lighthearted blog in nature. So, with that known, I am changing the direction a little today to tell you about several cheap ways in which you can update your home & also increase it's curb appeal.

Whether you’re getting ready to sell your home or want to spiff it up, inexpensively, for your own enjoyment, here are 10 things for you to consider.

1. Make your kitchen really cook! - The kitchen is still considered the heart of the home. Many buyers make a beeline to the kitchen when they view a home. For a few hundred dollars, you can replace the kitchen faucet, add new cabinet door handles & update old lighting fixtures.

2. Give appliances a facelift. If your appliances don’t match, order new doors or panels for them. Hint: many dishwasher panels are white on one side and black on the other.

3. Buff up the bath. Even simple things like a new toilet seat and a pedestal sink are pretty easy for someone to install & they make a big difference in the look of the bathroom. Consider replacing old, discolored bathroom flooring. If the tub or shower are looking dingy, consider re-grouting the tile.

4. Step up your storage. If you have cramped storage areas, adding do-it-yourself wire and laminate closet systems to bedrooms, pantries and entry closets. Your closets will be more functional while you’re living there & it will make your home look more customized to potential buyers.

5. Add a room. Yes, this can be expensive, but consider this, you have a 3 bedroom house with a den. If you add a closet to that room, you’ve now got a 4 bedroom home and that adds a lot of value. You can possibly add a custom closet system and drywall it in for less than 1500.

6. Check the 'innards.' It is well worth it to spend a few dollars & have a plumber & electrician look over your services to make sure that they are in good repair and running properly. When a home inspection is performed, these details will show the potential buyer that the home has been well cared for & can also influence the sales/purchase price.

7. Look Underfoot. Flooring is another detail that can quickly update a home and make it look cleaner. A professional carpet cleaning is an inexpensive investment, especially if your carpets are in good shape. Don't replace them unless they are really hideous.

8. Look Up. Consider replacing the lighting and/or ceiling fans. These can be done fairly reasonably with a wide array of inexpensive lighting fixtures and ceiling fans that are found at the local do-it-yourself stores.

9. Curb Appeal. What buyers see when they first drive by your home is very important. A nicely mowed lawn, fresh much, some nice (& possibly flowering plants) & a clean walkway make a great first impression.

10. The Front Door. A clean front door & possibly freshly painted makes a great impression as does new hardware. This is the first thing that potential buyers will see before entering your home.

Greater Orlando Real Estate Market - Original Post Date on May 28, 2006

It's amazing! You go on vacation and even though you may prepare for such work wise - you inevitably come back to more work than you thought. Do not get me wrong, I am not complaining. It's just almost laughable to me and unfortunately because of such I have not been able to post here.

So, let's talk about the Real Estate Market as it is today. And that right there is the point - today! The market has changed and is always evolving, sometimes more quickly than others. Yet, we have to be prepared for this, especially myself as a realtor. But so do you, so that you can understand the market and how it affects you - the consumer.

To say the least, we are in a buyers market and anyone who thinks differently is just deluding themselves. There are more listings available in Orange & Seminole counties (which makes up probably the majority of the Greater Orlando area) than has been in a very long time. As of right now, there are 9527 single family homes listed on the local MLS for sale as well as 3223 condominiums, townhomes & villas for sale. That is a lot of homes and approximately 6 months worth of inventory. I've been tracking the available homes for sale for many months and have found that except for one week, there has been an additional 250+ more homes available for sale than the previous week. This takes into consideration homes that have gone under contract and so forth. A little over a month ago, there was just 10K homes for sale, now we are at over 12K. So what is happening and how does this affect you?

Because there is so much involved, I will not be able to answer this question in just one post, but let's get started. Firstly, I must mention that I am not a doomsayer, and many of you who know me, know that I consider myself a Realistic Optimist. So with that said...

The market is in what some call a correction right now. We've been very lucky for the past couple of years with the increases that we have seen in what for some of us is our most valuable asset. That’s been great for most of us. The reality of it is that through most years we will only see about a 6% or so increase in the value of our homes. This year I expect us to be basically flat. That is not a problem, but there are many factors that lead to this. Right now we are seeing interest rates creep up. The fed is, or at least should be, concerned about inflation. And it will be interesting in how they handle their next meeting. Will the rates go up? They have increased them for the past 16 consecutive meetings. They have to be concerned about increasing it again and possibly fueling inflation. Even with this occurring, it has only been recently that the mortgage rates have been consistently creeping up themselves.

Lenders, of course, have become more conservative & rightly so. The creative financing that has been going on has been incredible and personally somewhat ridiculous. Interest only loans with a balloon payment – oh lordy? Here you are hedging a bet in that the value of your home will go up to create equity, because you are surely not creating any by only paying the interest and still have the full principal left to pay. Unfortunately for many, as the interest rates increase so do their payments & they may not be able to afford this additional expense. And more unfortunately, what we are going to see in the future (& not too distant at that) are foreclosures on a lot of these loans.

Then we also have investors, or I should really say and forgive me for saying this, but wannabe investors. These people saw the increases that were happening in the market and decided that if others can do it so can they. Unfortunately, many got into the market too late and now are finding themselves with a house payment for a home that is most likely vacant & they can’t move it because they are not only competing against the builder/developer but also other investors & homeowners. I read an article recently that mentioned already starting to see these loans going into foreclosure.

I could keep on writing forever about this & will expound on this topic more so in the near future. As always, please don’t forget that your comments and questions are quite welcome.

Till next time – Marc It Sold!

Flood Insurance - You don't think you need it - Do You?!?" Original Post on May 18, 2006

A recent article that I read, states that flooding is the #1 natural disaster in the United States. And more importantly, you don't have to live near water to be affected. "Regional weather systems, hurricanes and tropical storms, runoff changes from new construction and damage caused by wildfires can precipitate flooding in every region of the country." Accordingly, 20-25% of all claims come from areas with a low to moderate risk of flooding. You can only gather that the majority of these victims don't have flood insurance.

There is a really good site to check out by FEMA - http://www.floodsmart.gov/.

Flood insurance is relatively cheap and in low to moderate risk areas, homeowners can protect their property with lower-cost PRP's (Preferred Risk Policies).

This is not just something for homeowners, but also business owners & renters. Who of us can really afford to become the victim of a flood?

Until next time - Marc It Sold!

Miscellaneous Meanderings

It's funny how things work out.

Guess that we should start out with who and what this blog will be about. It's an avenue for us to relate information and sites that may be of interest to you in regard to real estate. There will be miscellaneous meanders about us & our opinions and feelings in regard to real estate and the Central Florida mraket in particular.

We are in a very unique market in the Greater Orlando area. One main reason being that we are in a destination city - whether it be for tourism, etc. This has allowed Orlando to basically buck the trend that we see overall nationally.

As I mentioned, and you that know me will understand only to well - I can ramble - changing from topic to topic. There so many things that I wish to write & express here & of course, all in due time - HUH!!

Anyway, as I started, recently I was putting together our newsletter & was writing an item related to our new website, which is in the later process of completion and awaiting to be able to start this blog. The item that I mentioned was about that this site will be coming soon & low and behold, I got an email from our web designers (www.infographic.com) that am able to blog. So back to the drawing board in regard to the newsletter. But...

Just read a blurb about a new website for Florida condo owners - http://www.myflcondo.org/. The site was created by Florida Condo Ombudsman Virgil Rizzo's office. Here condo owners here in Florida can go to learn their rights & responsibilities, file a complaint against their condo board or ask questions. They have many forums set up.

That leads us to another aspect of this blog. We hope that it is not only helpful for you, but that you will pose some of your real estate related questions to us. We look forward to hearing from you & hopefully being able to clearly answer your questions. But you should also know, that if we do not have the adequate answer, that we will send you in the direction that will be most helpful to you.

If you read over our bio in our parent website, http://www.OrlandHomes-4u.com/, that we strongly believe in education - ours & that of helping you become a more educated consumer.

Till our next post! We will try to be here quite regularly for you. Right now, we are on vacation in Fort Lauderdale & don't ask us what could be better than relaxing oceanfront and writing our first blog. Excitement Abounds!!!