Andre's Blog

One day a young husband came home from work and his wife met him at the door with an excited expression. She was home on maternity leave and had been perusing real estate ads in the newspaper and magazines. The Internet had not taken off yet.

"Call this number," she said.

It was an ad for a house for sale.

"But be careful," she added. "The agent will try to get you to make an..." she paused and looked cautiously from side to side....

"...an appointment."

This is a true story, by the way.

So the husband called the agent to find out where the reasonably priced two-bedroom "starter" home with the "charming back yard perfect for barbecues" was located. The couple liked to barbecue and entertain close friends and relatives.

The agent wanted to "meet" with the couple.

Uh-oh.

When the husband indicated reluctance to meet, the agent gave him the address. He sounded confused.

So the couple went and looked at the outside of the home (because they could not get in without the agent). Two years later, they bought their first home.

Years later, the wife is now a real estate agent and she remembers this first experience vividly.

She realizes she could have probably bought her first home when her child was a baby, if she had just talked to the agent. She now knows what agents really do.

He would have helped them figure out what they could really afford, had them preapproved by a  reputable lender, and slowly eased them into being homeowners.

Not like a salesperson, but like an agent working on their behalf.

In America, the most common way to accumulate wealth is through home ownership.

At the time of a survey conducted by the National Association of Realtors, the "average" homeowner has $50,000 in "unrealized wealth" in their home. Those families with incomes over $75,000 averaged $100,000 in "unrealized wealth." Families with incomes less than $40,000 averaged $40,000 in unrealized wealth.

"Unrealized wealth" just means your house is worth more than what you owe on it. This is also called "equity." Savings. You own an asset that appreciates in value.

Over the last year, the "average" house increased 7.1% in value. Since the "average" house is worth $153,300, that means in one year the "average" homeowner accumulated $10,884 in wealth -- by doing nothing more than making a mortgage payment (plus taxes and insurance). Since interest and property taxes reduce your taxable income, the federal government is subsidizing this increase in "home wealth."Three out of four homeowners say their "home wealth" is greater than their "stock wealth."

The most common way to "tap in" to unrealized wealth is to refinance and pull cash out of the home, get a home equity line of credit or sell your home. At least forty percent of those who sell their home use some of the money to buy a bigger, better, or newer home.

Renting does not accumulate wealth.

No, I am not talking about going to the mall and meandering through all of the shops, looking for items on sale, or even better, a clearance sale! Well, actually, I am talking about that, in a way.

Existing-home sales increased last month as buyers responded to improved housing affordability conditions, according to the National Association of Realtors. 

However with so many foreclosures being offered for sale at steep discounts, still many homebuyers are fearful of the direction the real estate market is going, while others have even decided to wait until the sale is over before jumping of the fence. Now does that sound silly?

Anybody knows that when high quality apparel, electronics, home furnishings, or household items go on sale, it is a good time to buy. Sure, it is quite possible that if we wait another week the item will be reduced even further. It is also possible that other savvy shoppers would find the sale price so compelling there will not be any left to mark down. Personally, I think this is a great time to start shopping.

I am not proposing a free-spending spree even if Louis Vuitton is on sale. (What? You say Louis Vuitton never goes on sale? More on that later!) What I am suggesting is that there are good quality properties whose prices has plummeted right along with the market despite fundamentals that are still very strong. Hey, if you do not believe me, listen, or rather, look at what internationals buyers are doing...buying real estate in the United States!! Sure, they get great deals that are not available to all of us due to some of them paying cash or in excess of 60% for a down payment , but the point is that there are deals out there.

Ladies, if I told you that Manolo shoes were on sale for 50% of retail price, would it not be time to go try some of those high-heeled beauties on? Guys, if YOU hear that Manolo shoes are selling for 50% off, you might win some points, or the game, by suggesting to your lady a trip to the store. While out shopping, you might also find some really good deals for yourself. Of course, you’ll have to try everything on, make sure it fits well; look at yourself in the mirror to make sure it looks good; and compare it to other items and see which one you like best. (This is called shopping)

All I am suggesting is that it is time to do the same thing with real estate. This will also require trying them on in the form of proper research. If we find a property we like at a good price, we buy. (This is also called shopping)

*Now, back to the suggestion earlier that Louis Vuitton never goes on sale. At a PE of 11.6, a yield of 6%, a stock trading near a 52 week low, and other brands like Moet Chandon, Dom Perignon, and Tag Heuer, among others, LVMH Moet Hennessy Louis Vuitton SA may already be on sale!  Contact your area Realtor ASAP. 

You can contact me: andreshambley@keyes.com

By Alan Zibel

Pending home sales rose 7.4 percent from July to August, an unexpected piece of positive news for the battered U.S. housing market.

The National Association of Realtors said Wednesday its seasonally adjusted index of pending sales for existing homes rose to 93.4 from an upwardly revised July reading of 87. The reading was the highest since June 2007.

Home sales are considered pending when the seller has accepted an offer, but the deal has not yet closed. Typically there is a one- to two-month lag before a sale is completed.

Wall Street economists surveyed by Thomson/IFR had predicted the index would fall to 84.9.

The index, which sunk to a record low of 83 in March, stood at 85.8 in August 2007.

Sales are picking up in places that have seen the most severe declines in housing prices - including California, Florida Nevada and Arizona, plus Rhode Island and the Washington, D.C. area, said Lawrence Yun, the trade group's chief economist. Still, Yun does not expect home prices to rebound until next year and only expects a modest gain of 2 to 3 percent in 2009.

A major unknown is how the worldwide financial crisis and economic slump will affect the housing market.

The latest effort by the central bank came Wednesday, when the Fed and six other major central banks around the world slashed interest rates Wednesday in an attempt to prevent a mushrooming financial crisis from becoming a global economic meltdown.

The Fed reduced a key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent. Also cutting rates were the central banks of China, Canada, Sweden, and Switzerland.

There's no guarantee, though, that mortgage rates will match the Fed's cut.

That's because long-term interest rates, which influence 30-year mortgages, don't always move in sync with the Fed's action, which lowered the interest rate banks charge each other on overnight loans.

However, the Fed action will reduce borrowing costs almost immediately for U.S. bank customers whose home equity and other floating-rate loans are tied to the prime interest rate.

5 New Zealand kiwifruit
1/2 cup sugar
1/4 cup water
1 Tbsp. lemon juice
1 Tbsp. butter
1 cup strawberries, stemmed and quartered
1 cup (1/2-inch) chunks pineapple
4 large scoops vanilla ice cream

Peel and slice kiwifruit into 1/4-inch thick slices; reserve. Combine sugar and water in a skillet and bring to a boil over medium heat. Boil 3 to 4 minutes or until sauce thickens slightly. Whisk in lemon juice and butter. Stir in kiwifruit, strawberries and pineapple and remove from heat. Make a pool of sauce and fruit on four dessert plates. Place a scoop of ice cream in center of each plate. Serve immediately.

Makes 4 servings.

Sometimes it seems that there is just too much information out there and it can be overwhelming. By being strategic about what you choose to take in, however, you can prevent information overload. Here's how in four simple steps:

1. Prioritize. When you organize your objectives, you'll be better able to set aside information that you don't need.
2. Scan for information. Learn how to quickly peruse articles or reports for pertinent information. A class in speed-reading may help you save time, in the long run.
3. Use your highlighter. Underline any information you may want to refer to later, then discard any articles or reports that do not have highlighted passages.
4. Be an example. If you don't want to get bogged down by long e-mails or voice messages, keep your own short. Let others know that, when communicating with you, they should keep their information as concise as possible

The Miami Real Estate market is one of the most dynamic in the US. When searching for houses in Miami or pre-construction condos, it is best to work with real estate agents specializing in South Florida. Keyes agents have expertise in waterfront houses, apartments, lofts and condos throughout -South Florida, including Miami Beach and Aventura. If your interests go beyond Pre-Construction Condos or houses, we work with you to buy and sell commercial properties in the most efficient way.

The Keyes Company is a full-service real estate company whose heritage can be traced back to a small, one-desk office opened on Biscayne Boulevard in Miami in 1926 by Kenneth Keyes.  The company has become a legend in South Florida real estate and is now one of the largest firms in the country.

As an independently-owned family business, Keyes has served the residential and commercial real estate needs of South Florida families, neighborhoods and business communities for over 80 years.  Today, Keyes has over 1,800 associates in 30 branch offices located throughout Dade, Broward, Palm Beach, Martin and Volusia counties as well as in Panama.  Keyes is a founding member of the Leading Real Estate Companies of the World and consistently ranks among the Top 100 real estate companies in the country as measured by both sales and volume. 

Take advantage of the turmoil going on in the Market! Now is the time for investors and all buyers to BUY!!!!

If you are taking money out of the market, you need to invest in something else, and REAL ESTATE is the only alternative. REAL ESTATE is a solid investment because it can never go down to ZERO like other intangible investments can. REAL ESTATE will always have value!

AGENTS advertise your listings, notify all of your contacts and show them what bargains there are in the REAL ESTATE market right now!

Turn the negative news everyone is hearing into a positive for them and for you!!!!

NOW IS THE TIME!!!

It's every seller's goal to receive multiple offers and to ultimately sell for the full asking price. Although you can't control market conditions, you can do several things to make your home more appealing to buyers.  First, price your home realistically. If you are seriously committed to selling your home, don't overprice it. Find out the market values for homes in your neighborhood and price your home accordingly. I can help you with this by providing a comparative market analysis. 

After you've set a realistic price for your home, fix it up so it's ready to show. Preparing your home for a showing doesn't have to be expensive. The one thing that most homes need is to have the clutter removed. Stand back and analyze each room in your home. Think about what can be removed to make the rooms look open and larger. If necessary, rent a storage shed for the items you remove from your home while it's on the market. 

Once you have eliminated unnecessary clutter, make minor repairs to your home. Clean the house thoroughly and touch up paint where necessary. When your home is ready, I can begin showing it to potential buyers immediately.

I'd be happy to give you more tips on getting your home ready to show. Remember, the more your home is seen by potential buyers, the quicker it is likely to sell. So give me a call today.

Andre' Shambley

Luxury Home Specialist

http://www.Keyes.com/Andre.Shambley  

AndreShambley@keyes.com

Office: 305-931-8920 ext 245

Mobile: 305-788-6643

Fax: 305-931-9853

"Given the degree of exposure I can provide, if I can't sell your home...no one can!"

By Christopher Solomon

Four years ago, Josh Tackitt of Portland, Ore., had grown weary of living in crowded rental houses and started looking for his own place. So did a very good friend of his.

They did the math and concluded that combining their rental checks could amount to a decent mortgage payment. "We both realized that for what we both would be paying for our own places ... it would work out that that's what we could get a mortgage for," says Tackitt, who's now 30.

They took a home-buying course and eventually bought a small (just under 1,000-square-foot), two-bedroom house for $189,000. "We found ourselves a house that would work, with a downstairs finished basement," Tackitt recalls. "I could have my own space down there, and she could have her own space upstairs."

Simin Marefat, 34, and her good friend, both nurses with stable jobs in the pricey San Francisco Bay Area, came to a similar conclusion: They could get more if they pooled their resources. After a year of hard searching, they bought a three-bedroom home for about $730,000.

"Both of our parents were against this," Marefat says, but adds, "It's been three years this last month, and I think overall it was a great decision, and I think Tanja feels the same."

Who says you can't mix money and friendships? The truth is, joint home ownership can be a huge success - or a spectacular failure. The trick is in figuring out if it's right for you - and then making sure you go about it the right way. To help with both tasks, here's some advice from real-estate experts, attorneys and those who've been there before.

First things first
"The first rule that everyone's going to say is make sure you have an ironclad agreement. Before that, I emphasize that it is not the written agreement but the people you are dealing with that will determine whether it proves to be a harmonious arrangement," says Gary Eldred, author of "The 106 Common Mistakes Homebuyers Make (and How to Avoid Them)." "Don't count on a contract to compensate for someone who you can't rely on."

The lesson: Know whom you're going into business with. Think carefully about this would-be partner: Is he or she the kind of friend who argues about the bill after dinner, or the kind who orders a bunch of food and then says, "Let's just split it"?

In a way, Portland homeowner Tackitt had been doing his due diligence on his friend for a long time. "When we bought the house, we had already lived together for about three years. So it wasn't a random friend. It was someone I had lived with, I had shared financial responsibility with, I had been on three different leases with," he says. "I knew her family, I knew her parents." He knew, too, that she was smart with money.

Put on your investor's hat
Just as you need to view your friend as a business partner, "You have to view from the beginning the entire venture as a business venture, and whatever you buy as an investment," advises Julie Panaro, a commercial real-estate attorney in Delaware who's involved with the American Bar Association's real property trust and estates division.