Andre's Blog

It's a wonderful time to purchase a new home now that the real estate bubble has burst and pessimism abounds. You might call it crazy, but I call it honesty. For people who have been thinking about buying a new house, this is the perfect time to do so. Of course your current home will not sell for as much money now as it would have a few years ago. On the other hand, it is not hard to find real-estate bargains. You will pay a lower sales commission if your home sells for less money. In Florida, the property tax is determined from the purchase price, so buy your home in a down market to save money on taxes for many years.

The most important thing is to obtain excellent assistance from a first class real estate professional. You should not try to economize by trying to get out of paying a commission. You may be able to find websites that give you estimates of a home's market value, but these are only computerized generalities. In order to provide an accurate assessment of your home's market value, your Realtor must be experienced and be familiar with the local market. In addition, there are companies that offer reduced commission rates. If your Realtor is unable to negotiate a full commission, what makes you think that he or she could negotiate the asking price of your home? Seek quality advice; you will save lots more money in the long run if you avoid cheap answers.

A skilled real estate professional will give your home maximum market exposure by using the multiple listing service, personal connections, e-mail marketing, online sites, and the appropriate use of open houses. This professional will be able to provide advice on how to properly stage your home to make the best first impression. It takes skill, patience, and extra effort to sell in a weak real estate market. Your ability to make the right choices and pay attention to all the details of your home will get it sold when cheaper vacant houses just sit on the market.

It is just as important for home buyers to have representation as it is for home sellers. FSBO (also known as For Sale by Owner) is the way to go if you're looking to avoid paying a realtor a commission; however you may wind up paying too much for a home, though, because of the ever-changing market.

Buyers and sellers need to make themselves aware of all the negotiating techniques that a realtor is knowledgeable of in order to make the best deal for the home they are buying or selling. It is a good idea to check with friends and neighbors for recommendations when you are trying to find an outstanding agent. Make sure to find out if they would consider using the agent they are recommending should the need arise for them in the future. Before selecting an agent, sellers should interview at least three, with each providing a competitive market analysis and a sales presentation for their home. Choose a real estate agent who makes you comfortable and confident.

I wish you luck and keep in mind that this is a wonderful time to purchase a new home!

Interested in buying, selling or renting a condo, townhome or house, visit me at: www.OnePlaceOpenHouse.com

Ready to refinance for a better rate, for a complimentary rate quote visit: www.JShambley.ApexLending.com

On recent reports Miami Condos and Miami Real Estate have appreciated over 25% annually for the last several years. Miami Real Estate has doubled in prices in the last few years. That was great news to investors that bought in this dynamic market. Investors and Buyers looking for their dream condo or home have been snapping condos faster than developers can build them. It has become some sort of a problem of a kind in which people tends to think twice in investing, more to a fact probably because of the growing housing crisis. Developers and investors are now becoming hesitant.

However, it's not feasible to expect this dramatic appreciation to continue indefinite. So, what an investor should expect from the Miami Real Estate market now? Well, the market was growing at drastic pace that real estate buyers camping for days to get a condo or a home in Preconstruction and turn around and flip it for profit. The factors that reflect the real estate markets such as interest rates, inflation, unemployment rates and others might not be applicable to Miami Real Estate. Focusing mainly on other stuff that can cause problems in which people are addressing right now.

With a nice improvement on numbers on the past few months, we can see a good flow.
Now, the condo market is back to normal pace where you can find good values.
How the Miami Real Estate different compared to other US real estate markets? Miami Real Estate has been always attractive to international buyers. Now, as the US dollar weakens and I believe it will continue to weaken, international buyers are looking into Miami and South Florida real estate market with their increasingly buying power. Just because they have the appeal just like actors having star power, it is made that way.

On a different note, the fact that in some areas there might be enough supply to absorb demand for the near future. However, you can find some attractive opportunities right now where you can get some good values and see appreciation quickly. It is not really that hard to find here in Miami all you have to do is know where to look and save up. The Miami condo real estate market can be defined with 1 word "Unpredictable" and with that case expect the unexpected.

Interested in buying, selling or renting a condo, townhome or house, visit me at: http://www.Keyes.com/Andre.Shambley

Ready to refinance for a better rate, visit: http://www.JShambley.ApexLending.com

Every homebuyer has a lot of concerns when it comes to buying Fort Lauderdale real estate. Of course, you will want only the best quality home, complete with the features you have always wanted at the most reasonable price possible. You may decide to do things yourself and explore the opportunities or invest in a professional to make everything easier.

Affordability Issues

The prices of homes in Fort Lauderdale have experienced a boom in the past few years because of the development and growth that has been going about. Residential areas located especially close to attractions and other key points may be more expensive compared before. However, you can still find a good number of affordable places that has the right features you need.

Consider the total budget you want to spend. Ask yourself how much you can afford on a monthly basis, whether the amount you have allocated for the house and its special features is reasonable and if you can afford the average price of houses in that particular location. Go through neighborhoods in person and also search the internet for postings. You will most likely land on something that appeals to you in terms of price. On the average, majority of buyers can afford homes that are priced three times their household income per year.

What Do You Want to Buy?

There are so many homes to choose from when buying Fort Lauderdale real estate which is why you need to specifically write down the characteristics that you need the most. Some of the examples may be location, having a garage for 1 or 2 cars, having a backyard or garden or the presence of a unique type of wood in the floors or kitchen. These will be your basis in choosing. Weigh the advantages and disadvantages by letting an engineer do an ocular inspection of the place.

Specify if you want to buy a duplex, a single-family home, a condominium, townhouse, apartment, etc. Consider the number of people you expect to live in the house. How many bedrooms and bathrooms you need, as well as the age of the house you envision. Older homes may be more difficult to maintain and will require more fixes than new models. There may also be rare features in older homes that may no longer be available in new models.

How Will You Pay?

Dealing with the owners of each potential home will help you assess whether it is the right Fort Lauderdale real estate to buy or not. Are you getting a loan? How long do you intend mortgage payments to last? What are the guarantees given by the owner? Are there any existing due taxes or liens in the property? Always check for these or you may risk paying more in invisible fees and other costs that may not be made known to you at the start. Some of the expenses to expect include upfront fees, closing costs, processing and agent fees.

If you are hiring a real estate professional, you can actually save more money since he or she is aware of the prices that can be avoided. The value of the home can be determined accurately too, based on its current condition, location and age. In the end, hiring an agent can greatly help boost savings and avoid unnecessary fees.

Recently I acquired a new buyer lead. As with many property virgins this new buyer had a long list of must haves, which is fine in most cases. However there was oneof those must haves (want a bargain price, but can't be a short sale or reo and must be in move in condition), well three, that I was having a tough time explaining to this buyer.

Yes bargain prices are out there and it's the perfect time to buy. The flip side of the coin is if you want a bargain price in most cases you just might have to go with a short sale or reo that needs work because the reality is ordinary home sellers have a hard time competing against the cut rate bank owned properties that are currently dominating the market.

Selling a home in this market is hard enough. Competing in a neighborhood flooded with foreclosed homes that are heavily discounted is nearly impossible.

There are nearly a million repossessed homes on the market right now. And these homes, dubbed in the industry as REO (real estate owned) properties, are being marketed by the most motivated of all sellers - that is, the lenders stuck holding the bag when homeowners default.

On average, foreclosed homes are priced almost 40% lower than normal real estate listings, according to data supplied by Trulia.com, the real estate Web site.

"Distressed sales [like foreclosures and short sales] put pressure on the whole market," said Robert Kleinhenz, an economist with the California Association of Realtors.

The lenders selling foreclosed homes have already taken a financial bath, in missed mortgage payments and administrative costs. And every month that an REO home sits empty means another month that the lender has to pay to cover property taxes, insurance and maintenance. What's more, as home prices continue to fall throughout the country, these homes are rapidly depreciating as they sit on the market.

With foreclosures priced so low, there is just only so much an ordinary seller can charge for a comparable house. Consider these figures: In California, the median price for an REO listing was $259,000 during the week of November 10, 23% lower than the non-REOs on the market according to Trulia.com.

In Nevada, REOs list for 16% less than non-REOs; in Florida they go for 22% less and in Arizona, for 25% less. The disparity is even greater in Midwestern states hard hit by economic woes. In Michigan, REOs list for 26% less, in Indiana, 48% less and in Ohio, 57% less.

As a result, many sellers are holding off. And those that have to relocate are taking a beating.

A losing battle
Roy Uhl, an agent with Shear Realty in Phelan, Calif. recently had a client who had to sell in order to take a job on the East coast. The sale took more than a year and several price cuts.

Uhl originally wanted to list the property at $320,000 but the client had gotten the home appraised for much more - $360,000 - and wanted to hold out for something near that.

But foreclosures mounted in the community about 75 miles northwest of Los Angeles. The house sold last August for just $230,000.

"The foreclosure crisis probably cost that seller $50,000, $70,000, easy," said Uhl.

In some areas virtually all sales are REOs. Four out of every five listings in Stockton, Calif. for instance are foreclosures.

"The traditional market is on hold," said Brian Mikelbank, a Cleveland State University associate professor of urban studies. "Sellers are simply not selling," he said.

Having a large number of REO properties for sale in a community hurts regional prices in three different ways, according to Dan Immergluck, a Georgia Tech professor who has testified before Congress on the impact of foreclosures on home prices.

First, a jump in REOs is a supply-side shock; markets have trouble handling such a sharp increase in inventory. Plus, vacant foreclosures often fall into disrepair, blighting neighborhoods and attracting crime. Finally, although appraisers generally try to disregard REOs when searching for comparable home listings, they just can't do that when foreclosures account for 40% or 50% of the market.

"A lot of people would love to buy now because home prices have come down," said J.L Jennings, owner of Pyramid Real Estate in Oakland, Calif. "But they can't compete when they sell their old homes against REOs."

Homeowners in hard-hit areas that have to sell right now are advised to price their properties as aggressively as the lenders that they are competing with, according to Mark Fleming, chief economist for First American CoreLogic.

And prices are still coming down fast. A median-priced house in Stockton, for example, saw its value decline by 44% in the 12 months ending September 30, according to the National Association of Home Builders and Wells Fargo (WFC, Fortune 500).

For desperate sellers, that means keeping up with highly-motivated banks and steeply-falling prices - no matter how much it hurts.

A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks. Homeownership offers many advantages over renting including:

Advantages of Buying versus Renting
Buying
Tax write-off
You can upgrade your home as you see fit
Build equity in your home as value appreciates
Control of loan payment options
Pride of homeownership


Renting
No tax write-off
Need permission to make any changes
Your money goes toward the landlords equity
Rent can increase periodically
You have no ownership


While owning your own home has many benefits, there are still risks to consider:

Disadvantages of Buying versus Renting

Buying
You're responsible for property maintenance
Need to sell, rent or lease property in order to re-locate.
May have to wait until market conditions are right You pay for all your own utilities,
property taxes and insurance
Home improvement upgrades can run into thousands of dollars


Renting
Your landlord or manager handles general repairs
Freedom to move once your lease expires
May include utilities, property taxes, and property insurance
You're not financially responsible for improvements


However, all things considered, homeownership is by far one of the best single investments you can make given the potential long-term benefits.

When does it make sense to buy?

People, who have generally rented their whole lives, purchase a home for various reasons. Owning something of value with a chance of watching their investment appreciate is one reason. Purchasing a home to save money over the long-term is another.

Example

Let's say you're currently renting a two-bedroom, two-bath apartment. Your monthly rent is $1,000. You find a two-bedroom, two-bath at a market price of $250,000 (roughly the national average.) You have $25,000 saved - enough for a 10 percent down payment. For the purpose of this example, you're looking to finance $225,000, which includes closing costs.

Using one of several mortgage calculators on the Internet, your monthly payment would be approximately $1,385 for a 30-year fixed loan at an APR of 6.20 percent (the national average). After taxes and appreciation in equity, your monthly payment over five years would average $499 per month.

Costs Savings of Buying versus Renting
Calculations Rent Purchase
Monthly rent/estimated mortgage payment $1,000 $1,385
Purchase price of home $250,000
Percentage of down payment 25,000
Length of loan term (years) 30
Interest rate 6.2%
Years you plan to stay in the home 5
Yearly property tax rate 1%
Yearly home value appreciation rate 4%


Results
Price of home after appreciation $304,163
Remaining balance after 5 years 209,887
Equity in house 94,276
Tax savings (28% bracket) 23,030
Avg. monthly payment over time 1,047 499
Total payments (over 5 years) $62,820 $29,973
Total savings if buying $32,847


Source: Ginniemae.gov. These calculations are estimates only. You should always seek the guidance of financial or tax experts before making any buying decisions


The outcome could dramatically change should an unforeseen economic downturn or financial hardship occur (e.g., home improvement costs, catastrophic damage, etc.). While, no one can predict if home appreciation values will spiral downward, or if mortgage interest rates will rise, it's clear that under the right circumstances home ownership can be financially rewarding.

Ingredients

1/4 cup light soy sauce
3 tablespoons rice wine or dry sherry
1/2 teaspoon salt
6 tablespoons peanut oil
2 eggs -- lightly beaten
1 carrot -- in 1/2" cubes
1 red bell pepper -- in 1/2" cubes
1/2 cup frozen peas
1 cup of steamed medium peeled shrimp
4 cups cold cooked rice


Directions:

Combine the ingredients for the sauce in a small bowl. Mix to blend well and set aside.

Place a small skillet over medium heat. When it begins to smoke, add 2 tablespoons of peanut oil and the lightly beaten eggs. Stir until the eggs are firm but moist.

Transfer the eggs from the skillet to a small bowl and break them into small curds. Set aside.

Bring 1 quart of water to a boil in a small saucepan. Add the carrot and boil 1 minute. Drain and rinse in cold water. Drain again and reserve.

Place a wok over medium-high heat. When it begins to smoke, add the remaining 1/4 cup of peanut oil and the garlic. Stir briefly.

Add the carrots, celery, red pepper, pea and shrimp. Stir-fry 1 minute. Stir in the rice and stir-fry 1 minute.

Pour in the sauce and cook until the rice is heated through, about 5 minutes, stirring frequently. Serve hot.


serves/makes 8

Faced with a massive glut of unsold homes, many would-be sellers are struggling to make their properties stand out in today's downtrodden real-estate market. But while the economic head winds are beyond property owners' control, home-marketing expert Barb Schwarz says they can dramatically improve their chances of making a sale by devoting attention to an often-overlooked aspect of real-estate selling: home staging.

Schwarz, the CEO of StagedHomes.com, was a pioneer in home staging back in the early 1970s and has used the techniques to sell properties ever since. "The goal [of home staging] is for the buyer to mentally move in," Schwarz says. "If they cannot mentally feel and see themselves living here, you've lost them." Schwarz offers six simple tips to help home sellers better position themselves in a sluggish market.

1. Get them inside. The first thing a prospective buyer notices about a home is not the living room but the front yard. "A lot of people think staging is the inside only," Schwarz says. "[But] we've got to stage the outside to get them inside." So cut the grass, trim the hedges, rake those leaves, sweep the sidewalks and power-wash the driveway. And make sure you don't have too many potted plants scattered around the property. "Nothing dead," Schwarz says. "You'd be amazed how many people have dead plants in their yards."

2. Pretend you're camping. Schwarz says a cluttered room will appear too small to buyers. "Clutter eats equity," she says. Schwarz tells homeowners to go through each room of the house and divide their belongings into two piles: "keep" and "give up." Items in the "keep" pile will be used to stage the room, while those in the "give up" pile should be stored elsewhere. "Pretend you are camping," she says. "When you go camping, you are not taking all those books, right?"

The de-cluttered rooms may appear bare to the seller, but the buyer won't think so. "We are not selling your things. We are selling the space," Schwarz says. "And buyers cannot visualize when there is too much [stuff] in the room." De-cluttering a home's outdoor spaces is important, too, she says.

3. Balance hard and soft surfaces. When staging a room, it's essential to have a good balance of hard surfaces, such as a coffee-table top, and soft surfaces, like a carpet, Schwarz says. For example, a room with a cushy, 7-foot-long sofa, a love seat and four La-Z-Boy recliners has too many soft surfaces and not enough hard surfaces. "The room is sinking," she says. "It's all too heavy." Instead, consider getting rid of the La-Z-Boys and the love seat, replacing them with two wingback chairs. "If you have hardwood floors but no rugs, it's too hard," Schwarz says, "so you want to add a rug."

4. Work in ones or threes. Schwarz recommends arranging items on top of hard surfaces in ones or threes.

You would place three items - say, a lamp, a plant and a book - on top of a larger hard surface, such as an end table. "You take away the plant and the book, it's too bare," she says. "[But if] you put 10 things on it, it's overdone." The three items should be closely grouped in a triangle. "I draw a triangle for my clients," Schwarz says. "I say, 'Here is the end table - let's superimpose a triangle on top of it.'" For hard surfaces with less area, however, a single item will do.

5. Decide from the doorway. Since would-be buyers will get their first impression of each room from the doorway, homeowners should use that perspective to judge their staging work. "Do your work, go back to the doorway. Do some more, go back to the doorway," Schwarz says. That way, you'll be better able to ensure that each room appeals to buyers.

6. Make your place "Q-Tip clean." A properly staged home should be immaculate - "Q-Tip clean," as Schwarz puts it. "I mean Q-Tips getting dead flies out of your windowsill [and] going around the bottom of your toilet on the floor," she says. The purpose of ensuring the house is spotless is more than simply making it presentable. If a home is unkempt, a buyer will wonder what other, less visible problems may come with the property, Schwarz says. "They'll say, 'Gosh, if they live like this, what don't they take care of that I can't see?'"

One of the perks of being a celebrity is that when you want to get away, you can simply jet to your second (or third) home to unwind. So where do your favorite stars call home when they are not on the set? If you want to rub elbows with celebrities, visit these famous vacation home destinations:

(SoBe) Miami, FL

Celebrity cats, pet lions, rappers at breakfast, Estefan for dinner: South Beach is that kind of place. It's the "new" American Riviera. It's like Cannes run by hipsters and everyone's invited, no jacket required. It's a place where yellow Porsches make complete sense. It's where you can become someone else.  The place buzzes with energy and excitement as artists, musicians and fashionistas dance the night away.

Santa Barbara, Calif.

Where does one of the richest women in the world go when she wants to relax? Oprah Winfrey heads for her 42-acre, $50 million ocean-front home in Montecito, Calif. Referred to as the "American Riviera", the Santa Barbara area is also frequented by such celebrities as Paul McCartney, Dennis Miller, and Michael Douglas. In fact, Michael Douglas donated funds to help save a coastal nature preserve from development, naming the public park the Douglas Family Preserve in honor of his father, Kirk.

The Hamptons, N.Y.

Such attractions as top-notch restaurants, world-class shopping and of course, the beach are why celebrities like Katie Couric, Gwyneth Paltrow and Renée Zellweger own property in the Hamptons. Jerry and Jessica Seinfeld even purchased a 12-acre estate from Billy Joel that features its own baseball diamond.

Taos, N.M.

If you really want to get away, follow the lead of Julia Roberts, Shirley MacLaine, and Val Kilmer by heading to New Mexico. Patrick Swayze, who owns a 20,000-acre ranch, says "I fell in love with New Mexico when I was shooting Red Dawn." He adds, "it's my healing place."

Lake Como, Italy

Not all stars stay so close to home, however. For a more exotic destination, jet to the shores of George Clooney's second home in Lake Como, Italy. His 15-bedroom, 18th century estate, Villa Oleandra, is also frequented by his famous friends Matt Damon, Brad Pitt and Michael Douglas. Like Douglas, Clooney has also worked to prevent the construction of parking lots and other development in the area.

Sure, housing's in a hole. But there's a potent case for buying now. There has rarely been a moment in history when you couldn't scare yourself into doing nothing. When prices are falling, few people have the discipline to buy stocks, a house, gold, art or any other asset. But those who do pull the trigger excel in the long run. As John D. Rockefeller famously said, "The way to make money is to buy when blood is running in the streets."

And the streets are stained crimson. Housing, certainly some skepticism is in order. Formerly sizzling markets in Florida, Nevada, Arizona and California probably haven't seen the worst headlines just yet, though they may well be close. And "jumbo" mortgages, those more then $417,000 are likely to remain artificially high for a few more months while banks work through their credit issues.

But let's say your're emotionally ready to be a homeowner. You have good credit, plan to stay put for five years and have been waiting for the perfect entry point. It's time to get serious- before an inevitable rise in interest rates wipes out your advantage. The thing that will make home prices stop falling is the very same thing that will push mortgage rates higher. So anything you gain by a further drop in prices might be offset by rising financing costs.

Consider a typical home that sells for $218,000. You put 20% down and get a 30 year fixed at a mortgage rate of 5.5%(yes they are still around: www.jshambley.apexlending.com). Monthly principal and interest come to $994.31. Let's say that same house goes for 10% less, or $197, 010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage cost rise just half a point, to 6%, your monthly payment would be $994.94 and you'd have SAVED NOTHING! Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living soemplace you'd rather not be.

It's more complicated if you must sell before you can buy. But that logjam won't persist forever- and if it appears you'll be trapped for a few years, try to refinance at today's lower rates. Risks always seem most acute when the headlines gives you ulcers. But that's exactly when you should think ong term adn get off your thumbs.