Real Estate Agents Hate it When Buyers …

Real estate agents know buying a home can be challenging. We want to help you through it and get you the best deal. But sometimes buyers can unwittingly turn the process into an ordeal.

Here are five things buyers do that create stress and complications for their agents, the sellers and often, for themselves.

1. The buyer requests additional showings, brings an entourage, spends hours looking over the place — and never makes an offer.

It’s typical for a potential buyer to view a property during an open house, then ask for a private showing, even two or three times. That’s great; I’m all for it. However, it’s frustrating and counterproductive when the would-be buyer arrives at the showing with a designer or contractor and spends one or two hours measuring virtually every inch of the place. In other words, it’s putting the cart before the horse.

I’ve even seen a buyer bring his psychic to a showing who, after making a big splash with her tarot cards and numerology chart, declared that the property had “negative energy” and wasn’t a good fit, mainly based on the numbers in the property address. Did she need to see the property in person?

Real estate is a huge investment, and I’m all for getting the opinions of trusted advisers. But buyers should give themselves the opportunity to gauge their own reactions to a property before bringing in hired consultants. Also, be aware there will be multiple opportunities to thoroughly explore a property before signing a contract. To go over a home inch-by-inch on the first or second visit is often a waste of everyone’s time — including the buyers.

2. The buyer makes unjustified low-ball offers.

The seller’s property is on the market for $400,000. And yet, a potential buyer offers $300,000. It’s not because the home is grossly overpriced or there’s something seriously wrong with it but simply because the buyer wants a bargain.

Unjustified low-ball offers are often a waste of time for everyone involved. The seller isn’t going to swallow $100,000 for no reason, even if the property has been on the market for a while. In fact, the buyer’s low-ball offer will help the listing agent get a small price reduction, thus opening the window of opportunity to another buyer. It’s certainly okay to offer less than asking, but be realistic and respectful.

3. The buyer plans to negotiate the price down during escrow, but doesn’t tell the agent.

Final home inspections sometimes uncover problems previously unknown. In such situations, it makes sense for the buyer to request a credit from the seller during escrow.

However, there are times when a buyer writes an offer, which the seller is open to accepting, but secretly plans to ask for a reduction during escrow just because he thinks he can. Doing so adds stress and ill will among all parties involved, during what already could be a difficult transaction.

4. The buyer makes big demands on the agent’s time but is a long way from being serious.

There are people just beginning to think about buying a home. That’s fine, you have to start somewhere. Unfortunately, in some cases these people are a year or two away from becoming serious buyers. And yet they make a lot of demands on the agent’s time. I once had someone make me research city building permits on a house, just because they were curious. The property didn’t even fit their requirements.

There’s a lot of legwork that buyers can do themselves. If a buyer is seriously considering a property, he should absolutely be checking tax records, police crime maps, neighborhood data, home values and even the property’s building permit history.

Agents can’t be as effective in our jobs if we’re spending lots of time researching tax records or city permits for clients who are years away from being serious. Plus, these types of buyers can end up earning a reputation as “bad clients” — the type that the most good agents avoid.

5. Buyers who keep changing their minds about what they want.

It’s OK to shift course based on what the buyer learns during the process. This is common practice. But, once you’re ready to buy, you should have a clear picture of what you want. Much time and effort gets wasted when a buyer doesn’t really know what he wants and starts looking for a high-rise condo in the city, switches to looking at houses in the suburbs, then it’s back to the city condos, then maybe it’s on to houses in a different city.

Brendon DeSimone is a Realtor based in San Francisco. He is a contributor to Zillow Blog and collaborated on multiple real estate books and is often quoted by major media outlets. Learn more about Brendon at http://brendondesimone.com/mediaCenter/index.html

Pending home sales rise

Miami pending home sales rise
June 30, 2011 11:15AM

Total pending residential sales in Miami-Dade County -- including single-family homes and condominiums -- increased 15 percent in June from a year ago to 11,936, and 0.2 percent over May, according to the Miami Association of Realtors. The uptick is being driven by foreign money, according to the association. "International buyers are having a positive effect on the Miami real estate market, as sales continue to exceed last year's levels, which were boosted by the homebuyers tax credit," said Jack Levine, chairman of the board of the MAR. "Current figures corroborate the healthy market activity agents are experiencing first-hand and the evident demand for local properties." Pending sales of condos jumped 18 percent over what they were last year. -- Alexander Britell

Simple Questions to Ask When Evaluating Short Sales

5 Questions to Ask When Evaluating Short Sales
“Mortgage lenders across America are eager to avoid foreclosures, and short sales can be an attractive option for clients and real estate professionals alike,” writes Bill Ervin, the national sales director of real estate relationships for CitiMortgage Inc., in an article at RISMedia. “Ask the right questions and you’ll be well on your way to a successful short sale.”

Here are some questions Ervin points out are important for real estate professionals to consider when evaluating a potential short sale for a client.

1. Who owns the lien according to the servicer?

2. What documents are required? For example, the transaction always requires a Letter of Authorization (which is from the client authorizing the real estate professional to speak on their account); listing agreement; purchase contract; estimated/final HUD Settlement Statement; and 2nd Lien Approval Letter.

3. Do all of the parties agree on the property’s value?

4. Has the seller signed a short sale agreement?

5. What are the major challenges the client may face in this transaction? (For example, are there subordinate lien holders or will the client be able to secure financing in time?)

Read more of Ervin’s tips for successful short sale transactions at RISMedia.

Chase borrowers getting cash to complete short sales

Two of the nation’s largest lenders are quietly offering some delinquent homeowners a deal.

JPMorgan Chase & Co. and Wells Fargo & Co. say they give select borrowers behind on their mortgage payments $10,000 to $20,000 for agreeing to short sales, which means the homes are sold for less than what’s owed on the mortgages.

Most banks figure they’re doing homeowners a favor simply by signing off on short sales and forgiving the amount owed. But in some cases, Chase and Wells Fargo borrowers receive that and cash at the closing.

Lenders routinely hand homeowners a few thousand dollars if they leave the properties in good shape after foreclosure. That’s known as “cash for keys.” Also, homeowners are entitled to $3,000 of government money if they complete short sales through the Home Affordable Foreclosure Alternative program.

But real estate agents and other industry observers say they aren’t aware of other major lenders offering such sizable incentives for successful short sales.

“It looked, to me, like it was a come-on,” said Allison Adler, an agent for the Keyes Co. in Weston.

But Adler checked and discovered it was legitimate. Her client, Sara Horowitz, received $10,000 last week from Chase when she completed a short sale of her Davie townhouse.

“I have to say, this extra bonus from Chase was a lifesaver for me,” Horowitz, 39, said Monday. “I used it to help me get into a rental unit. It was perfect.”

Wells Fargo and Chase don’t specifically address why they offer the money for short sales. Rather, they explain they’re cutting their losses in choosing to forgo the potentially lengthy process of foreclosure.

“Our goal is to help as many people avoid foreclosure as possible,” Chase spokeswoman Nancy Norris said, pointing out that the bank has completed more than 110,000 short sales nationwide since early 2009.

Wells Fargo offers the cash to homeowners in Florida and other states “where the foreclosure process is lengthening,” spokesman Tom Goyda said.

The average foreclosure in Florida took 619 days for cases completed in the first three months of 2011, according to RealtyTrac Inc., a foreclosure listing firm. That's more than 30 percent longer than cases completed a year ago.

The lenders decide whether to make payments after considering individual circumstances, and they don’t disclose what those are. The banks won’t say how many people have been offered the cash.

Wells Fargo and Chase are the nation’s second- and third-largest lenders, respectively, behind Bank of America. A spokeswoman for Bank of America said she couldn’t provide any information on incentives for short sales.

Chase and Wells Fargo don’t say how many home loans they own in Florida.

Wells Fargo has 700 offices and $66.1 billion in deposits statewide, according to Federal Deposit Insurance Corp. data as of June 2010, the most recent period for which statistics are available. Chase has 247 offices and $10.4 billion in deposits in Florida.

In 2008, Chase acquired Washington Mutual, and Wells Fargo took over Wachovia Corp.

The money for short sales is an effort by the lenders to be viewed as good corporate citizens as they expand aggressively in Florida after the banking takeovers, Miami-based banking analyst Ken Thomas said.

Ward Kellogg, chairman of Paradise Bank in Boca Raton, said his community bank occasionally has offered money to homeowners who cooperate in short sales. He figures Chase and Wells Fargo are agreeing to the incentives so that they can write off the bad loans as soon as possible.

“Without cooperation, it’s going to take a year and half,” Kellogg said. “With cooperation, it could be 30 to 60 days.”



By Paul Owers June 27, 2011 07:00 AM

Foreclosure stats for the week

As of today, the number of foreclosures in South Florida year-to-date is 13,389, down from 34,073 at the same time last year, based on the most recent data available from Broward, Miami-Dade and Palm Beach counties. The graph below shows foreclosure activity in South Florida's three counties. -- Katherine Clarke
Source: Condo Vultures

Shadow housing inventory

Shadow housing inventory shrinks
BOSTON – June 23, 2011 – CoreLogic reports that the U.S. shadow inventory of homes has fallen 18 percent from its peak; as of April, about 1.7 million homes were in the foreclosure process and headed toward the market. At the current sales pace, those properties represent a five-month supply.

According to the Mortgage Bankers Association, home loan delinquencies slid 8.32 percent in the first quarter, down from a record 10.1 percent a year ago; and the National Association of Realtors (NAR) says foreclosures and short sales accounted for 31 percent of existing-home sales in May compared to 37 percent in April.

Source: 
Boston Globe (06/23/11)

South Florida’s housing market

South Florida’s logic-defying housing market continued to embrace peculiar trend lines in May — sales soared, slashing down the inventory even further, but overall prices fell once again.
Market trends in Miami-Dade and Broward counties diverge from the national housing story, for better and for worse. Local sales are increasing while the national market slumps, but local prices are falling faster than the national average.

The region’s real estate narrative is also at odds with traditional market economics. The coexistence of shrinking supply, rising demand and falling prices has left analysts with a number of questions: How long can this frenzied sales pace —fueled by Latin American and cash investors’ appetite for discounted real estate — continue? With inventory shrinking rapidly, when will the strong sales activity translate into price stability and appreciation, as market economics dictate? How large is the “shadow inventory,” and how will those unlisted bank-owned homes affect the recovery?

“It’s an odd time,” said Ron Shuffield, president of Esslinger-Wooten-Maxwell Realty. “ We’re able to say we’re selling more homes and condos than we’ve ever sold in history, but at the same time 61 percent of our sales are short sales and foreclosures.”

In May, home sales continued to rise, keeping South Florida on track to have its best year on record, according to data released Tuesday by the Miami Association of Realtors.

In Miami-Dade, there were 875 sales of existing single-family homes and 1,420 condo sales, increases of 20 percent and 46 percent from last May, respectively. Compared to April, home sales were up 5.4 percent and condo sales were up 1.1 percent.

In Broward County, 1,142 single-family sales and 1,537 condo sales represented increases of 6 percent and 14 percent over last May, respectively.

In the first five months of the year, more than 23,000 homes and condos have traded hands in South Florida, one of the strongest five-month runs on record. Nationally, 2011 has been a poor year for sales, with double-digit declines nearly each month.

South Florida’s rapid sales pace has helped reduce the region’s housing inventory, which has gone from severely bloated to suddenly lean over the last couple of years.

There are now 31,659 homes and condos for sale in South Florida, down from 61,755 in May 2009.

The crucial “months-of-inventory” figure has slimmed to 7.2 months in Miami-Dade and 5.5 months in Broward, both down to a fraction of their peaks. Economists say that six months of housing inventory is indicative of a healthy market.

So why hasn’t the shrinking supply of homes led to price stabilization?

“We have a whole bunch of pent-up supply,” said William Hardin, professor of real estate and finance at Florida International University . “There’s a squeeze play going on because no one is going to sell a house in today’s market unless they have to.”

The majority of homes that are selling are under distressed circumstances —either a foreclosure sale, or a short sale that doesn’t cover the cost of the mortgage. Those properties — popular among cash investors and foreign buyers — sell at deep discounts, dragging down overall prices in the market.

In the single-family market, May median prices fell 8 percent to $180,200 in Miami-Dade. Broward suffered a particularly large decrease, with single-family prices falling 17 percent to $188,500.

There are some signs that prices may be beginning to stabilize, specifically in the condo market, where sales have been the most rapid.

In Miami-Dade, median condo prices slipped just 1 percent, to $124,300. In Broward County’s condo market, there was a 9 percent year-over-year increase, with median prices reaching $80,400.

Year-to-date, median prices are up across the market: Miami-Dade condos (36.2 percent), Miami-Dade single-family homes (19.4 percent), Broward condos (16.5 percent) and Broward single-family homes (14.2 percent). While prices are up since January, the year-over-year figures provide a more reliable barometer of values, since they compare the same time periods in the region’s seasonally driven market. It’s too soon to say if sustained appreciation is here to stay, although industry insiders are pitching that message.

“Price drives [sales] traffic until traffic drives price,” said Mike Pappas, CEO of Keyes Realty. “Traffic is beginning to drive prices.”

But even as South Florida’s market looks to rebound from its worst bust in history, a number of troubling issues threaten to drag out the recovery.

The region’s shadow inventory, homes that banks have repossessed but have not yet put on the market, is estimated to be one of the largest in the nation. In addition to the 31,000 homes currently listed for sale, thousands more are expected to join them, once banks complete foreclosures and put the properties on the market.

“That’s keeping the pressure on prices,” Shuffield said of the shadow inventory. “We have seven months of inventory in single-family and six months of condo. Any other time in my 30 years of doing this, when we get into levels of six or seven months, prices would be increasing more than they are today. The fear of the unknown is keeping a lid on prices.”

With few nondistressed sellers listing their homes for sale because of the depressed market, and more and more bank-owned homes coming onto the market, prices could continue to see downward pressure for many months to come.

Additionally, two of the factors that normally support a healthy housing industry — a strong job market and significant home equity — are painfully absent in South Florida. In Miami-Dade County, unemployment sits at record high 13.4 percent. Nearly half of all South Florida homeowners with mortgages owe more on their homes than the current value, one of the highest underwater rates in the country.

Stricter lending standards have made it difficult for many potential buyers to obtain a mortgage. In May, 60 percent of home sales were completed without a mortgage, as all-cash investors made a disproportionate impact on the market.

With the housing market at the mercy of investors, who thrive on bargain basement prices, the path to sustained appreciation remains unclear.

“I think the investor activity is putting a floor on some of the pricing,” Hardin said. “But it doesn’t show that the market is stabilizing until you have end users. Right now, the investors are the ones that have capital and are willing to put it in the market.”





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Forbes: 9 Reasons To Buy A House Now

If you’re planning to buy a house right now, the next few months may be the best time to buy. Waiting for both housing prices and interest rates to fall may not be a good strategy for potential homebuyers since analysts don’t expect any significant declines in these two most important home-buying factors. Here’s nine real estate trends that suggest you should get into the housing market sooner than later.

1. Lowest Housing Prices in Years
Nobody knows when the housing market will hit bottom, but prices are at their lowest in several years and may soon start inching back up again. So buying now or in the near future may be the right time. An abundance of bargain-priced housing is now available because of foreclosures and falling prices.

2. Interest Rates at a 50-Year Low
Interest rates are near a 50-year low, according to housing analysts. By the second week of May, 2011, 30-year fixed mortgage rates had fallen to their lowest rates of the year at 4.63%. Although mortgage rates vary from day to day, the 30-year rate at this level is an attractive inducement to first-time buyers, or buyers who want to either move up to larger residences, or others, including many empty-nesters wanting to sell and move to smaller houses or condos.

3. Interest Rates Expected to Go Up
As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more expensive. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly payments, depending on the amount of your loan.

4. Adjustable Rate Mortgages at Record Lows
Adjustable Rate Mortgages (ARMs) are also lower now, although there are risks that interest rates may increase over the life of the mortgage and the balloon payment due at the end of the mortgage life, usually three or five years, could be substantial. Nevertheless, for new buyers who are sure they’ll have enough income to meet payment obligations, an ARM may be the best way to buy a house. Keep in mind that payments may increase on a monthly basis.

5. Low Down Payment Mortgages Available
Low-down-payment financing through Federal Housing Administration-insured mortgages is available as an additional inducement to buy a house now. Down payment minimum requirements also fluctuate and may increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to buy now.

6. Easy to Qualify, Easy to Borrow
Lending standards have become less rigid recently, so qualifying for a mortgage may be easier. Experts advise that a potential buyer become pre-approved for a loan by a lending institution – meaning that a lender guarantees to make the loan contingent on an appraisal of the property. But the good news in seeking pre-approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula allowed – a percentage of monthly income.

7. Lenders Offer No-Fee Mortgages
Many banks and other lending institutions are waiving mortgage loan generation and other fees and points (each point represents 1% of the loan amount), thereby reducing the cost of buying.

8. Home Builders Eager to Sell, Offer Incentives
Home builders, competing with the resale market, are offering incentives to potential buyers to reduce their inventory of unsold new homes. Incentives may include cash for furniture or free refrigerators, washers and dryers. In Seattle, for example, builders have offered opportunities to win iPads or Smart phones, and $3,000 buyer bonuses. Specific demographic groups, including military personnel, police, firefighters and health-care workers, have been targeted by builders for special offers. But virtually anyone who can qualify for a mortgage is likely to get a good deal from a homebuilder who is eager to sell.

9. Motivated Home Owners Desperate to Sell
Desperate sellers of existing homes have also been offering attractive inducements to potential home buyers, including warranties on appliances, air conditioners and furnaces. Some sellers are even offering cash or have included furnishings, refrigerators, washers and dryers as a bonus to potential buyers. With so many existing homes in foreclosure or underwater – bargain prices are abound in this depressed market.

The Bottom Line
With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may not be a better time to buy than right now. It’s a buyer’s market, but like everything else in life, the bargain deals won’t last.

Miami condo sales up 46 percent

Sales of existing condominiums in the Miami metropolitan area rose 46 percent in May, compared to the same period in 2010, according to data from the Miami Association of Realtors. There were a total of 1,420 condo sales last month, up from 972 in May 2010. Single-family home sales also showed an increase, jumping 20 percent to a total of 875 sales last month. International buyers continued to dominate the market, with 60 percent of closed residential resales last month transacted by foreign buyers, who also bought 90 percent of new construction sales. "The current performance of the Miami market is exceeding expectations," said Jack Levine, Chairman of the Board of the Miami Association of Realtors. -- Alexander Britell

Why Existing-Home Sales Droped

Existing-Home Sales Drop with Market Constraints
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 3.8 percent to a seasonally adjusted annual rate of 4.81 million in May from a downwardly revised 5 million in April, and are 15.3 percent below a 5.68 million pace in May 2010 when sales were surging to beat the deadline for the home buyer tax credit.

Lawrence Yun, NAR chief economist, said temporary factors held back the market in May, as implied from prior data on contract signings.

“Spiking gasoline prices along with widespread severe weather hurt house shopping in April, leading to soft figures for actual closings in May,” he said. “Current housing market activity indicates a very slow pace of broader economic activity, but recent reversals in oil prices are likely to mitigate the impact going forward. The pace of sales activity in the second half of the year is expected to be stronger than the first half, and will be much stronger than the second half of last year.”

Yun said the market also is being constrained by the lending community. “Even with recent economic softness, this is a disappointing performance with home sales being held back by overly restrictive loan underwriting standards,” he said. “There’s been a pendulum swing from very loose standards which led to the housing boom to unnecessarily restrictive practices as an overreaction to the housing correction – this overreaction is clearly holding back the recovery.”

There were notable regional differences in home sales. “A large decline in Midwestern existing-home sales can be attributed partly to the flooding and other severe weather patterns that occurred, but this also implies a temporary nature of soft market activity,” Yun explained.

The national median existing-home price for all housing types was $166,500 in May, down 4.6 percent from May 2010. Distressed homes – typically sold at a discount of about 20 percent – accounted for 31 percent of sales in May, down from 37 percent in April; they were 31 percent in May 2010.

“The price decline could be diminishing, as buyers recognize great bargain prices and the highest affordability conditions in 40 years; this will help mitigate further price drops,” Yun said.

“Home prices are rising or very stable in local markets with improved employment conditions, such as in North Dakota, Alaska, Washington, D.C., and many parts of Texas,” Yun noted.

NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I., said a number of proposals being considered in Washington could further jeopardize the housing recovery. “We’re concerned about the flow of available capital, including a possible rule that would effectively raise minimum downpayment requirements to 20 percent,” he said. “We don’t need to throw the baby out with the bath water – increasing downpayment requirements would effective shut many qualified families out of the market. What we critically need is a return to the basics of providing safe mortgages to creditworthy buyers willing to stay well within their budget.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.64 percent in May, down from 4.84 percent in April; the rate was 4.89 percent in May 2010. “Although low mortgage interest rates are welcome, they are less meaningful compared to the tightness of loan underwriting standards,” Yun noted.

Total housing inventory at the end of May fell 1 percent to 3.72 million existing homes available for sale, which represents a 9.3-month supply at the current sales pace, up from a 9-month supply in April.

All-cash transactions stood at 30 percent in May, down from 31 percent in April; they were 25 percent in May 2010; investors account for the bulk of cash purchases.

First-time buyers purchased 35 percent of homes in May, down from 36 percent in April; they were 46 percent in May 2010 when the tax credit was in place. Investors accounted for 19 percent of purchase activity in May compared with 20 percent in April; they were 14 percent in May 2010.

Single-family home sales declined 3.2 percent to a seasonally adjusted annual rate of 4.24 million in May from 4.38 million in April, and are 15.4 percent below a surge to 5.01 million one year ago. The median existing single-family home price was $166,700 in May, down 4.5 percent from May 2010.

Existing condominium and co-op sales fell 8.1 percent to a seasonally adjusted annual rate of 570,000 in May from 620,000 in April, and are 14.7 percent below the 668,000-unit pace in May 2010. The median existing condo price was $165,400 in May, which is 5.8 percent below a year ago.

Existing-home sales by region:

Northeast - declined 2.5 percent to an annual level of 770,000 in May and are 13.5 percent below May 2010. The median price in the Northeast was $241,500, up 6.1 percent from a year ago.

Midwest - existing-home sales dropped 6.4 percent in May to a pace of 1.02 million and are 22.7 percent below a year ago. The median price in the Midwest was $136,400, which is 8.5 percent below May 2010.

South - existing-home sales fell 5.1 percent to an annual level of 1.85 million in May and are 14.4 percent below May 2010. The median price in the South was $149,200, down 3.1 percent from a year ago.

West - unchanged at an annual pace of 1.17 million in May but are 10 percent lower than a year ago. The median price in the West was $192,300, which is 12.6 percent below May 2010.

Source: NAR

Consumers who've recently sold a home offer candid advice on how you can improve the experience.

Hear It From The Sellers


Consumers who've recently sold a home offer candid advice on how you can improve the experience.
By G.M. Filisko | June 2011
Sellers are a hard lot to satisfy these days. Is it any wonder they’re taking their frustrations out on you?



REALTOR® Magazine conducted in-depth interviews this spring with sellers throughout the country to learn about the service they’ve received from real estate practitioners. Our goal: To collect knowledge—from the customer vantage point—that you can use to exceed your clients’ expectations and avoid the pitfalls that lead to grumbles.



On the plus side, many sellers said they were impressed by the service they received and would gladly refer their listing agent to others. But those who were dissatisfied said they were just as likely to share their opinions with other potential sellers.



As we sought to collect honest feedback from consumers about various aspects of their selling experience, we agreed not to reveal their name or their salesperson’s name.



We grouped the stories we heard into four key actions that can make or break a seller’s decision to send more business your way.





Be proactive to help sellers understand the status of their listing and keep their anxiety in check.



"We had a showing, and I had to reach out afterward and ask, ‘What’s the feedback?’"



Rita, who’s been trying to sell her Northern Michigan home for 18 months, says she’s had no success in finding a real estate agent who will communicate why the home isn’t selling.



She listed her home in 2009 and, during 12 months, got only one showing and little communication from her agent. At the end of the listing agreement, she chose to list with someone else. Rita did extensive homework to find one of the top salespeople in her area. And before signing a new agreement, she said, she drilled him on how he’d communicate with her and told him she wanted to hear from him regularly about the market and any progress on the listing.



But Rita’s now in the same boat as she was with her first sales associate. "I’m pretty disappointed," she says. "We had a showing, and I had to reach out afterward and ask, ‘What’s the feedback?’ His assistant said, ‘We don’t know.’ My response was, ‘Why don’t you know?’"



Rita’s getting e-mails with market statistics, but she wants insight on how to proceed based on that data. "That would bring my anxiety down 100 points," she says. "It would be good to hear that it’s not our house; it’s the market. Or if it is our house, do we need to drop the price or stage the home? I want to be getting the answers from my salesperson. I’m hearing crickets."



Sue, whose Chicago condo has been on the market for more than six months, has the same complaint. "I wish she’d check in with us more and say, ‘This isn’t working; maybe we could try this.’ It was our idea to lower the price. Even if she said we needed to lower it by another $40,000 and we said no, at least we’d know why it’s not getting sold," she explains.



So what can you do to help sellers feel confident and informed? Cynthia, a recent seller in Willoughby, Ohio, said she was happy with the techniques her agent used—even though it took 42 weeks for the home to sell. "He has four people who work with him," she says. "They were in constant communication by telephone and e-mail," helping her make informed decisions. Another seller recounts a similar positive experience. "Our salesperson was very proactive in contacting us," says Mike, who closed on his Chicago condo in October 2010. "He solicited comments from people who saw the place. He asked not only about our place but also why they liked this particular area and if they had any concerns."





When recommending a listing price, listen to their opinions and show them you really understand the market dynamics.

Troy had lovingly restored his home in Northern South ­Dakota, and when he listed it in 2008, he believed buyers would value that it was move-in ready. He was disappointed when his sales associate did a routine search for comps, averaged them, and suggested a listing price of $131,000, which he considered low.



"We’d heard our community had a housing shortage, and we were also hearing that everything on the market was crap," recalls Troy. "She went too much through her routine without considering the unique factors of our home. But I knew that our home was going to stand out and insisted she list it for $175,000. We sold it for $159,000 in one month."



Troy says his salesperson also did only routine marketing. "Ours was a Craftsman Foursquare home," he says. "The ads said only that it had a lot of charm. She just went through the motions."



How do you show sellers that you’re making an informed price recommendation? It’s simple: Hard work and market knowledge. Laurie knew she’d have to do a short sale because her Medford, Ore., home’s value had dropped more than 40 percent since she purchased it in August 2005. But even in the face of comps that didn’t support their position, every salesperson Laurie interviewed recommended listing at an unrealistically high price. "They didn’t want to look at the possibility that a lot of homes in their area would need to be sold short," says Laurie. "And among salespeople, the reputation for short sales was that they were a whole lot of work and there was zero guarantee you’d be able to close."



Laurie did an Internet search for a short sales expert and found the salesperson who shepherded her home to an August 2010 closing. Laurie says her agent demonstrated his expertise; he landed three offers within two weeks, one above market value. "He listed our home slightly under market value in a way that maximized traffic," says Laurie. "He personally handled negotiations with our bank and communicated with the buyer’s agent to make sure the buyers knew where we stood with the bank at all times. That kept them from backing out of a transaction that took almost six months to complete."



It’s OK to be pushy sometimes, as long as you are working on the same team as your clients.

Have you ever heard consumers bemoaning pushy salespeople? None of the sellers we interviewed had that complaint. In fact, some wanted their sales associate to be more pushy, and others conceded they should have listened when their salesperson did become pushy.



When Linda was selling her condo in Lake Zurich, Ill., which closed in April 2010, she was pleased with her salesperson’s marketing and communication skills. When it came time for price negotiations, Linda’s satisfaction plummeted. "I wish she had been a little aggressive," she explains. "She didn’t encourage us to fight more for our price. The buyer’s original offer was $250,000, and she didn’t really say either way how she felt. Over two days, we came down from $289,000 to $265,000. During that time, I wish she’d have given us more direction on counteroffering and other aspects of negotiation."



To this day, Linda wonders whether she could have pocketed more money, in part because her sales associate had also listed a family member’s nearly identical condo in the same complex. That closing took place just two weeks after Linda’s. "Her condo got an offer for $30,000 more, and our condos shouldn’t have been that far off in price," says Linda. "In addition, on that later sale, the salesperson didn’t even recommend a counteroffer, which I thought wasn’t good."



Giving your client honest advice isn’t being pushy. Just ask Don, who admits he should have listened when his salesperson pushed back against Don’s original asking price on his Studio City, Calif., home, which he sold in January 2010. "He tried to tell us not to price our home so high," explains Don. "He said the market for homes more than $1.25 million was very tight and that there were more buyers in the $1 million to $1.25 million range. I thought our house was worth maybe $1.4 million. But he kept me at $1.35 million, and rightfully so because we eventually dropped the price to $1.25 million and accepted an offer within 10 percent of our asking price."





When you put your heart into your work, it really shows.

Every once in a while, there’s a sale that requires you perform nearly superhuman feats to get it closed. Do that, and the sellers will sing your praises ever more.



Irene’s sale required such efforts. In the span of nine months, her father died and her mother became gravely ill. Using a power of attorney, Irene listed her parents’ Westlake, Ohio, house in August 2010. "I was honest," she says. "I told my salesperson, ‘I’m out of my parents’ money, and we’re still taking care of my mom.’ He didn’t know me, and he just wanted to help."



The house was on the market for months with no takers, but Irene’s salesperson never flagged. "Every month, I’d get a report showing what was selling and what wasn’t," Irene says. "He was always calling me afterward to ask, ‘Did you get a chance to look at the report? This home that sold wasn’t comparable to yours, and these that did sell were.’ "



Irene eventually took out a home equity loan to continue to cover her mother’s $9,000 monthly care costs. In January, Irene’s salesperson—as he’d done when he’d taken the listing—recommended she replace the maroon and emerald carpeting. Irene again hesitated because of the cost. So her salesperson hunted down a wholesale carpet installer who agreed to do the work at a huge discount. "He did that on his own," Irene recalls. "And I finally broke down and paid for the carpeting out of my own money. I was speechless when a week later he called and said we had an offer."



The worst wasn’t over. Before the March closing, Irene’s mother entered hospice care. "When I told my salesperson the news, I said, ‘If my mom passes, I can’t legally sell the house,’" she recalls. "He said, ‘You’re right’ and was on the phone within minutes to get the buyers and the title company to move up the closing. If my mom had passed before the closing, the house would have gone into probate—and I don’t know what would have happened to the buyers.



"If that’s not an awesome sales associate, I don’t know what is," adds Irene. "I was so touched at how my salesperson went out of his way to help me sell my parents’ house. He’s crossed the road and become a friend."



Now Irene says he’ll always be her salesperson, and she’s already referred two people to him. "I also sent an e-mail blast out to the people I know in case others were looking to buy or sell a house," she explains. "When someone gives me great service, I like to tell others about it."







G.M. Filisko is a freelance writer for REALTOR

Top Picks for International Buyers

Top Picks for International Buyers
International buyers are taking advantage of bargains in real estate in the United States. Last year, international buyers reportedly spent $41 billion on purchasing homes in the United States.

So which cities do they most have their eye on?

Ten out of the 24 most popular American cities for international buyers were in Florida, according to Trulia. Last year, Europeans, Canadians, and Brazilians reportedly spent about $13 billion on homes in Florida alone.

Here are the most popular Florida cities for international buyers, according to Trulia.

▪ Cape Coral, Fla.
▪ Miami
▪ Fort Lauderdale, Fla.
▪ Naples, Fla.
▪ Fort Myers, Fla.
▪ Miami Beach, Fla.
▪ Kissimmee, Fla.
▪ Orlando, Fla.
▪ Jacksonville, Fla.
▪ Tampa, Fla.

Find out what other cities were popular for international buyers.

Source: “American Hotspots According to Non-Americans,” Trulia (June 15, 2011)

South Fla top 10 Highest-Performing Major Housing Markets

7 Highest-Performing Major Housing Markets
Several real estate markets are starting to show signs of improvement with home prices in the last quarter as the industry demonstrates more signs of stabilizing, according to Clear Capital's latest monthly Home Data Index Market Report.

REO saturation rates have improved in the majority of the country’s largest markets. However, many areas are still battling year-over-year price declines. Clear Capital’s index reports that quarter-over-quarter home price declines were 2.3 percent in the latest quarter, which is less than half compared to the previous month.

“The latest market report results through May suggest that home prices are starting to ease back from the heavy declines seen over the winter,” says Alex Villacorta, director of research and analytics at Clear Capital. “We are still far away from the strong demand needed to fully turn things around for the housing market. However, it is clear from the initial spring sales data that prices are softening, suggesting stabilization in the market."

The High Performers
Seven of the top 15 markets posted quarter-over-quarter property price gains in this month's report, compared to none in last month’s, according to Clear Capital. Here are the seven highest-performing major real estate markets, according to the report.

1. Washington, D.C.-Arlington, Va.-Alexandria, Va.
Quarter-to-quarter home price change: 4.5%
Year-to-year price changes (May 2010-May 2011): 4.9%
REO saturation: 17.5%

2. St. Louis, Mo.
Quarter-to-quarter home price change: 2.2%
Year-to-year price changes: -11.4%
REO saturation: 35.3%

3. Pittsburgh, Pa.
Quarter-to-quarter home price change: 1.6%
Year-to-year price changes: 0.3%
REO saturation: 10.9%

4. New York, N.Y.-Long Island, N.Y.-No. New Jersey, N.J.
Quarter-to-quarter home price change: 1.5%
Year-to-year price changes: 1.4%
REO saturation: 9.6%

5. Virginia Beach, Va.-Norfolk, Va.-Newport News, Va.
Quarter-to-quarter home price change: 1.4%
Year-to-year price changes: -13.2%
REO saturation: 22.4%

6. Miami-Ft. Lauderdale-Miami Beach, Fla.
Quarter-to-quarter home price change: 0.6%
Year-to-year price changes: -5.2%
REO saturation: 39.6%

7. San Jose-Sunnyvale-Santa Clara, Calif.
Quarter-to-quarter home price change: 0.5%
Year-to-year price changes: -5%
REO saturation: 25%

Tthe lowest-performing market for the fifth straight month was Detroit-Warren-Livonia, Mich., with a 13.2 percent decrease in quarter-over-quarter home price change and a 58 percent REO saturation rate.

Source: “Clear Capital Reports Quarterly Home Price Decline Slows; Signs of Market Stability as Summer Approaches,” Clear Capital (June 9, 2011)

Strong performance for Miami high-end homes, condos

Just like its surging rental market, Miami's high-end residential sector has been showing significant improvement in the first five months of 2011.

"What's happened over the last 24 months is really kind of phenomenal," EWM President Ron Shuffield told The Real Deal. "When you think about what a deep, dark hole we were in, now to see this real sold activity we're having, we're fortunate to be where we are."

In the first five months of 2011, there has been an average of 51 condo sales over $1 million per month, and 41 home sales in the same price bracket, according to MLS data provided to The Real Deal by EWM.

"That projects to about 1104 sales for the year," Shuffield said. "If we continue [at] that pace, we'll have about a 22 percent increase in the units of sales this year."

At the peak of the real estate boom, there were 1,498 sales in the over-$1 million market, and just 738 such sales in 2009. If this year's numbers hold up, that would translate to a roughly 50 percent jump from the worst of the downturn in 2009.

The high-end market, especially condos, have been driven by the influence of foreign buyers. They've come largely from Latin America, looking for easy-to-maintain foreign homes. But it's the highest niche of the high-end market that has been leading the charge.
At the $5 million price point, the numbers are even more positive, said Beth Butler, president of One Sotheby's International Realty.

"What's happened in the last 60 days is almost all of the high-end market sold," Butler said. "We're really looking at an inventory shortage. The deals that have been sitting on the market for a while are now selling, for good prices and multiple offers. So it's very encouraging."

Butler pointed to a pending apartment sale at Apogee for a unit which had been on the market for two years.

"It's kind of startling, because it sold for a price [of $11.5 million] that I think, six months ago, we wouldn't have thought would happen," she said.

These types of condos have seen a significant uptick in activity of late, Shuffield said.

"[The Miami market] is selling more condos over $7.5 million than we've ever sold in the past," he said. "Over the last nine years, we've been averaging 2.5 sales a year. In the past 12 months, we sold eight.

The sales included one at South Beach's Continuum for $10 million, the Apogee sale, a condo on Fisher Island that sold for $8.15 million, a unit at the Gables Club in Coral Gables that traded for $9 million, a $15 million penthouse at the Setai, an $8.7 million sale at One Bal Harbour, a penthouse at Fontainebleau II for $9 million and the Santa Maria condo in Brickell, which saw an $11 million sale.

As for the impact of all these large sales on prices, it may take time, but some of the drivers are in place, Butler said.

"I think we're going to see that prices are going to start going up a little," she said. "Inventory's decreasing [and] a price increase is soon to follow. I think that when we look at the six-month point at the end of this month, we're going to see that the price per square foot at a lot of these buildings actually increased."

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Short sale scam cheats banks, sellers

Short sale scam cheats banks, sellers
SANTA ANA, Calif. – June 8, 2011 – Banks and distressed home sellers stand to lose more than $375 million this year from a short sale scam that has sellers and banks agreeing to sell homes at very undervalued prices, according to a new study by CoreLogic.

In discovering the short sale fraud scam, CoreLogic analyzed 450,000 nationwide short-sale transactions in the last two years.

Here’s how the scam often works: Borrowers who are underwater or in financial distress are approached, often by an investment group, and persuaded to sell the property in a short sale at a low price. Soon after the bank accepts the lowball offer, the investment group then resells the house to legitimate buyers at a higher price.

Sixty-five percent of short sales resold within six months that net profits of 40 percent or higher were flagged “suspicious,” which means there is a high likelihood that the lender accepted a low offer, according to the CoreLogic study. These transactions often go undetected by banks, too.

Why It's Time To Buy form WSJ

Back in June 2006, when the housing market peaked, the prospect of a five-year national housing bust seemed unimaginable to most people. And yet here we are, with the latest Standard & Poor's Case-Shiller index showing that prices hit new bear-market lows, falling back to 2002 levels nationally and to 1990s levels in some battered regions.

April Home Prices
See the change in home prices from April 2010 to April 2011, state by state.

View Interactive
.Home Prices, by Metro Area
See data from the 20 metro areas Case-Shiller tracks.

View Interactive
.
.Despite all the gloom, however, there are growing indications that it is a good time to buy. Mortgage rates, which fell to 4.55% for the week ending June 2, according to Freddie Mac, are near 50-year lows. Homes have become more affordable than they have been in years: According to Moody's Analytics, the ratio of home prices to income is now 20.9% lower than the 15-year average through 2010, and 12.5% lower than the 1989-2004 average. A historic glut of homes, meanwhile, has created a buyer's market: There were about 15 million vacant homes in the U.S. last year, according to John Burns Real Estate ConsultingInc.—some 3.1 million more than normal.

Such conditions might not last long. Moody's Analytics predicts that the number of distressed sales will begin to fall in 2013, and that prices will begin to edge upward then. Home building is at a virtual standstill, so the supply overhang isn't likely to get much worse. Meanwhile, demographic indicators such as "household formation"—the number of new households each year—are on the rise, and promise to take a bite out of the glut in coming years.

Discuss: Is home ownership a good investment?
.The upshot: "While we might not see rapid growth in the next couple of years, there are a tremendous number of positive signs that could lead to a rebound," says Anthony Sanders, a real-estate finance professor at George Mason University.

The short-term outlook isn't encouraging. Job growth remains weak, foreclosure sales are making up more of the market, and economists are predicting that home prices will fall more in the coming months.

But the long-term benefits of homeownership remain very much intact. For now, at least, you can deduct the mortgage interest on your taxes—a big perk for people in higher tax brackets. You get to paint your walls any color you wish, without having to clear it with a landlord. And assuming you can buy a home for about the same price as you can rent one, buying will give you the ability one day to live rent-free. Come retirement time, a paid-off mortgage means your monthly expenses are significantly reduced, and you have a chunk of equity to play with.

So what might the next five years look like? Once the foreclosure mess begins to clear up, say housing economists, the traditional drivers of the housing market—demographics, affordability, loan availability, employment and psychology—should take over.

Here is a glimmer of what the future may hold: While overall home prices fell by 7.5% in April over the same period a year earlier, according to CoreLogic, a Santa Ana, Calif., provider of real-estate data and analytics, if you exclude distressed sales, prices were off just 0.5%. So if you are in a market that isn't battered by foreclosures, you may be close to a bottom already.

"The regular marketplace is hanging tough," says CoreLogic chief economist Mark Fleming.

Here is a look at five key factors that will govern local markets over the next several years:

Demographics
Household formation fell during the economic downturn as a weak economy led some people to stay in school, double up with roommates or move in with family members. According to Moody's Analytics, the number of new households renting or owning a home dropped to 578,000 in 2008 from nearly 2 million in 2005, just before the peak of the housing boom.

But household formation increased to nearly 950,000 last year, says Moody's, and should average 1.2 million over the next decade.

Worksheets
The Mortgage Calculator
How Much House Can You Afford?
How Much Second Home Can You Afford?

.That, combined with increased obsolescence and higher demand for second homes, should begin sopping up excess inventory in much of the country over the next two years, Moody's says.

"Whatever the excess supply of housing is, it is shrinking pretty fast," says Thomas Lawler, an independent housing economist.

Some of the uptick in household formation is likely to come from the leading edge of the echo baby boomers, who have been waiting for the economy to recover before striking out on their own, says William Frey, a demographer with the Brookings Institution. That is likely to fuel an increase in demand for both rental apartments and starter homes.

The portion of people moving across the country has fallen to the lowest level since World War II, he adds. That is a sign that many people have put their lives on hold because of the weak economy.

"When things do pick up, there will be this pent-up demand for everything involved with starting a household," Mr. Frey says.

Of course, when prices in healthier regions begin to rise, many would-be sellers who have sat on the sidelines could begin putting homes on the market, muting the price gains at first, says Susan Wachter, a professor of real estate and finance at the University of Pennsylvania's Wharton School. Even so, she expects home prices to stabilize and begin to strengthen over the next two or three years.

There also are some powerful demographic cross-currents worth considering. The first baby boomers turned 65 in January, an age when demand for new homes falls and many begin to think about downsizing. "The baby-boom generation pushed prices up as they got older," says Dowell Myers, a professor of urban planning and demography at the University of Southern California. But in the coming years, "boomers will start flooding the market on the supply side" with larger homes, while fueling new demand for smaller properties with more services and amenities.

Affordability
Rising home prices made renting cheaper than buying in many parts of the country. But that dynamic has begun to change: Housing affordability, as measured by the ratio of median home prices to median household incomes, has fallen below pre-housing bubble levels in just over two-thirds of the country, according to an analysis of more than 380 metro areas by Moody's Analytics.

Renting is still cheaper than buying in most markets, but rising rents and falling house prices mean that, in some areas, this won't be the case for long. Buying a home is already cheaper than renting in Chicago, Cleveland, Detroit and Orlando, Fla., according to Moody's Analytics. In other markets, including Dallas, Las Vegas and Sacramento, Cailf., the equation is likely to soon turn in favor of homeownership if current trends persist, the firm says.

In Ann Arbor, Mich., where home prices fell 11.2% between 2007 and 2010, according to Fiserv Case-Shiller, housing affordability has risen well above historical levels, according to Moody's Analytics.

That is good news for home buyers such as Steven Upton, a 42-year-old photographer, who in June will close on four-bedroom brick house on 10 acres in an upscale community in Ann Arbor. Mr. Upton paid $400,000 for the home, which previously listed for $600,000. "It's a tremendous deal," he says.

Before buying a house, it is wise to compare rental prices for similar properties. To be ultraconservative, wait until the monthly outlays, including taxes and insurance, are equal. You also could factor in the tax savings of owning, which would make buying more attractive even if the gross monthly outlay is slightly higher.

Employment
The strength of the housing market depends largely on the economy. Rising incomes and increased employment tend to give more would-be buyers confidence and buying power. For now, job growth remains sluggish: On Friday the Labor Department reported that just 54,000 jobs were created in May, far below expectations.

But signs of how a stronger job market could fuel housing demand are evident in the Dallas metro area, which added 83,100 new jobs in the 12 months ending in April—the largest gain in the nation, according to the Bureau of Labor Statistics. Dallas never had a big housing boom or bust and has benefited from trade with Mexico, a strong telecommunications sector and a central location.

The opportunities for a job with more responsibility drew Duane and Linda Elmer to Dallas from Des Moines, Iowa, where Mr. Elmer was a banker for nine years. The couple has agreed to pay $415,000 for a four-bedroom, four-bath house with a Jacuzzi and pool. Their Des Moines home, purchased nine years ago for $410,000, is on the market for $390,000. "We are willing to take the loss for the opportunity to live in a more diverse community and to take a job with greater breadth of responsibilities," Mr. Elmer says.

Borrowers like the Elmers who are relocating for job opportunities are a big driver of home sales in nearby Plano, Texas, says Harry Ridge, a real-estate agent. He says such sales accounted for 20% of his business last year.

A similar influx of job seekers is fueling housing demand in the Washington area, where 25,700 new jobs were added in the 12 months since April 2010. Washington was the only one of the 20 cities tracked by Standard & Poor's and Case-Shiller that saw home prices rise both on a month-to-month and year-over-year basis.

Credit
Mortgage financing remains plentiful for borrowers with good credit scores and solid employment histories. But for borrowers who don't fit traditional lending standards, getting a loan can still be nearly impossible. In the first quarter, about 10% of banks tightened standards for nontraditional loans, according to the Federal Reserve. Meanwhile, higher down-payment standards are locking some would-be buyers out of the market. Just 35% of renters have the minimum 3.5% down payment needed for an FHA loan on the median-priced home in their market, according to a recent survey by Zelman Associates.

Credit is likely to remain tight for at least the next six months, says Clifford Rossi, a former Citigroup Inc. consumer-lending executive who teaches at the University of Maryland.

But conditions should improve over time, he says: "There's no question that it will gradually get easier."

That will be welcome news to borrowers like Greg Silver. The 50-year-old real-estate developer would like to buy a second home, but hasn't been able to secure a jumbo mortgage because his income consists of capital gains from sales of the properties he develops. Mr. Silver closed three sales in the past 12 months, netting him a total of more than $25 million, but didn't record any capital gains in 2008 and 2009. Sure, he could use some of that cash to buy a home outright, but he would prefer to mortgage it, get the tax deduction and keep his cash free for business purposes.

"It's a little devastating," says Mr. Silver, who is living in Greenwich, Conn.

Psychology
The long-term case for buying over renting remains in force. Yet nowadays, "People are simply scared," says Aaron Galvin, chief executive of Luxury Living Chicago, which finds rental apartments for wealthy clients.

Mr. Galvin says he has seen a 30% increase in business in the last year, driven by would-be home buyers who can afford to purchase a property but are choosing not to do so.

The portion of Americans who believe homeownership is a safe investment dropped to 66% in the first quarter from 83% in 2006, according to Fannie Mae, the government-controlled mortgage company.

But it isn't clear whether the fear will result in a prolonged change in attitudes, as during the Great Depression, or have little long-term impact, as was the case for the housing bust that shook California and the Northeast in the late 1980s and early 1990s. Eighty-seven percent of people surveyed by Fannie Mae said they preferred owning to renting, though access to schools, control over one's environment and other quality-of-life issues now are seen as the key benefits of homeownership, with building wealth and other financial factors viewed as less important. In addition, 67% of renters surveyed by Zelman Associates said they planned to buy a home in the next five years.

Jeffrey Connor may be a bellwether for the future of the housing market. The 40-year-old finance director at a corporate law firm says he thought briefly about buying a house when he moved to Chicago from Washington in October. But he opted instead to rent a luxury two-story apartment in downtown Chicago for $3,559 a month. Mr. Connor says it will take substantial job growth and a sharp drop in foreclosures to convince him to buy.

"The market is clearly soft," he says, "especially when we consider it good news that the unemployment rate is hovering around 9% instead of 10%." Mr. Connor says he isn't worried about missing out on today's low interest rates and will consider buying once unemployment falls to 6%.

Other buyers are showing less willingness to wait for the absolute perfect time to buy. Doug Yearly, chief executive of luxury builder Toll Brothers Inc., told investors in May that "some of our clients, after waiting so long, are starting to move off the fence and into the market, motivated by attractive pricing, low interest rates and, most important, the desire to take the next step in their lives. The family with elementary-school kids and a puppy when the housing debacle began five years ago now has middle-school kids and the dog weighs 80 pounds."

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Property values actually increased

This is one of those article that you ahve to read betwen the lines . What we all have been waitting for a floor to the drop in valeus is what i get from this reading
give your opinion


Property values actually increased in 20 South Florida cities in 2010, offering the battered real estate market its first signs of life in three years.
Taxable property estimates released Wednesday were a glimmer of good news for property owners and those tasked with drafting budgets in South Florida’s hard-hit city halls and county chambers.

Overall, property values — commercial and residential combined — were still down 3.3 percent in Miami-Dade County and 1.9 percent in Broward County, according to county property appraisers’ estimates. But 2010 was markedly better than 2008 and 2009, when the declines were in the double-digits.

For those in charge of writing county budgets, this year’s estimates compare favorably to 2010, when county leaders had to grapple with value declines of $29.9 billion in Miami-Dade and $19.4 billion in Broward. A large chunk of revenue for cities and counties comes from property taxes, and for the past three years elected officials have had to either raise tax rates or cut services.

For South Florida property owners, the 2010 estimates signal that the darkest days of the housing bust may have passed, although a full recovery appears to be a ways off.

“We’ve got 10 cities whose taxable estimate went up, and we have 21 cities whose taxable estimate went down,” said Lori Parrish, Broward County property appraiser. “We’ve seen several areas where the values have gone up—predominantly on the east side of town near the water and in some higher-end communities out west.”

In Miami-Dade, 10 municipalities had value increases last year, after all 37 were in negative territory in 2009. Many of the cities that declined by double-digits in 2009 saw only modest declines last year.

Downtown Miami notched the largest year-over-year increase in the region, with the tax base growing 10.9 percent in 2010, after shrinking 11.2 percent in 2009. Most of the increase came from new construction in the area, as new condo buildings wrapped up construction and finally came online. New construction downtown was valued at $1.4 billion, up from $362 million in 2009.

Other cities to swing into positive territory included Key Biscayne (up 1.5 percent), Sunny Isles Beach (up 2.9 percent) and Pinecrest (up 0.8 percent). Coral Gables was just slightly better than flat for the year and the city of Miami had a 3.8 percent decline.

“The idea that we’ve bounced back is good,” said Key Biscayne Mayor Frank Caplan. “The decline took hold and now it’s ticking up again. It’s absolutely better than going in the other direction.”

New construction was down significantly across the region, an indication that South Florida is still hurting from the mid-decade building boom and the foreclosure crisis that followed.

New construction in Miami-Dade dropped from $2.7 billion to a net of $1.5 billion, the largest drop in the last five years. In Broward, new construction plunged from $1.5 billion to $633 million.

“That’s the biggest problem we have right now—nobody’s building anything,” said Miami-Dade property appraiser Pedro Garcia. “Before, you could sit in my office and you could see cranes all over. Now you can see two or three.”

Miami-Dade’s largest value declines occurred in the southernmost sections, with Homestead and Florida City posting losses of 9.6 percent and 15.4 percent, respectively. In 2009, Homestead values dropped 31.2 percent.

In Broward, Cooper City swung into positive territory, adding 2.2 percent to its tax base. Values were up 0.5 percent in Pembroke Pines, and up 1.4 percent in Weston. Values dropped slightly in a number of cities, falling 3.5 percent in Fort Lauderdale, 2.2 percent in Hollywood and 1 percent in Miramar.

Despite the drop, Miramar mayor Lori Cohen Moseley saw reason for optimism in the numbers.

“The one percent [decline] is a little bit better than we had estimated,” Moseley said, adding that the number of foreclosures in Miramar has stabilized. “We’re on the upswing, and that’s the most important message to get from this.”

The estimates released Tuesday give cities, school boards, hospital districts and other taxing authorities a basis to start drafting budgets for next fiscal year. Final tax rolls will be released on July 1, documenting any changes to the estimates, and property tax bills will be mailed to homeowners in August.

In Sunny Isles, where values increased 2.9 percent after 2009’s 8.8 percent drop, Mayor Norman Edelcup anticipated a much smoother budget-writing season.

“We were cautiously optimistic that we’d maybe see a 1 percent [change] plus or minus,” he said. “The fact that we’re on the positive side is a good thing.”

Edelcup said he would recommend holding the property tax rate steady this year, and the rise in values would make that an easier process during the budget-writing season.

“Everyone is very sensitive to the fact that taxpayers don’t want to see their taxes go up,” he said. “We’ll be able to get the same level of service without raising taxes.”

Not raising property tax rates appears to be a widely embraced decision this year, after voter backlash over 2010 tax hikes led to the recall of Miami-Dade Mayor Carlos Alvarez and Commissioner Natacha Seijas in March.

“Raising taxes is not on the table,” in Homestead, Williams said.

In anticipation of bringing in $1 million less in property tax revenues, Florida City has already reduced its spending, Mayor Otis Wallace said.

The city has cut three jobs and consolidated four jobs into two positions, a move that has saved about $225,000. The mayor’s assistant now serves as the city clerk and the personnel director is also the zoning director.

Property value declines, while modest, are likely to reduce revenue further in already lean county budgets. Miami-Dade’s property tax rolls had already shed more than $50 billion during the downturn to reach $192.2 billion, so another 3.3 percent drop is that much more painful. In Broward, the 1.9 percent slip means the county’s tax base, at $125.6 billion, is 28.7 percent below its 2007 total of $176.1 billion.

An 8 percent decrease in taxable values in North Miami will force city officials to consider even more cuts after last year’s budget shortfall forced layoffs, furlough days and salary reductions across almost every department in the city. The 8 percent decrease comes on the heels of a 20 percent drop the year before.

In Pembroke Pines, the city scaled back employee pension benefits and implemented a 4.5 percent pay cut for City Hall workers last year, so this year’s 0.5 percent value increase is welcome news. Still, it’s not enough to spark any significant spending increases, said mayor Frank Ortis.

“I think we have turned a corner, but we’re not there yet,” he said. “Without a doubt, no raises right now.”

While property value estimates cover the housing market during the 2010 calendar year, property appraisers have also been tracking property values this year. Both say prices have either hit or neared a bottom, but what happens next will be determined by the trajectory of the foreclosure crisis.

More than 91,000 cases are currently pending in South Florida courts, with banks and homeowners sparring over who owns the note on the property, and whether or not the foreclosure documents were improperly signed.

Additionally, 14.4 percent of South Florida homeowners are behind on their mortgages, and thousands more are underwater, meaning there are many more properties set to enter the foreclosure pipeline.

Parrish said she noticed significant housing value differences in well-maintained neighborhoods and in areas where foreclosed properties have been left to disrepair.

“Until we get all these foreclosures processed — some of them have been abandoned for three years — and get them sold and families move in and give them some [tender loving care], our property values aren’t going to stabilize until that happens,” she said.

In the meantime, the deep descent of home values is likely to taper off, meaning little relief for thousands of homeowners who already owe more on their properties than they’re worth.

Tom Blumer, of Miramar, bought his house in 2001 and is hoping to move to Aventura in the future. The problem: his house is now worth substantially less than what he bought it for.

“I want to try recoup the investment on my house,” he said. “I keep hearing that the market will get better. I don’t know. Maybe eventually it’ll turn around.”

Miami Herald reporters Tania Valdemoro, Nadege Green and Mike Vasquez contributed to this report.





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© 2011 Miami Herald Media Company. All Rights Reserved.
http://www.miamiherald.com


Read more: http://www.miamiherald.com/2011/06/01/v-print/2246503/20-south-florida-cities-see-increase.html#ixzz1OS6wb9St

Top 10 Reasons YOUR Online Prospecting Doesn’t Work

This is a GREAT Posting from Trulia i think i need to rethink my online prospecting

Top 10 Reasons YOUR Online Prospecting Doesn’t Work
1. Google doesn’t know who you are.
Getting found by Google isn’t always easy. Search engine optimization can be costly and it can be tricky to find a reliable SEO specialist. Blogging can be an effective way to be found by Google, but it’s not a get rich quick strategy.
TIP: Don’t wait for them to come to you, go where the buyers and sellers already are! Buyers and sellers are talking online in forums like our own Trulia Voices, on Twitter, Facebook, and more. Seek out the places they are participating and engage!

2. Your online marketing is all about you.
You are awesome, I am sure you are, but no matter how great you are, prospective home buyers and sellers don’t really care. They care about numero uno- themselves and what they need.
TIP: Focus your marketing efforts on what is in it for the consumers. How can your services help solve their wants, needs and problems? Tailor your online efforts to address your consumers needs and your success rate is likely to rise.

3. You don’t have a complete profile with a photo.
I am shocked at how often we see online profiles that don’t even have a picture and basic contact information. People want to talk to people and your profile photos gives them a sense of what you are like.
TIP: If you start an account, complete your online profile. Add a professional photo of yourself, complete your online resume and make sure to have up to date contact information. This simple step can be the determining factor if a prospective client is going to pick up the phone or move along.

4. You have an active Twitter presence but you spend all your time talking to other agents.
But they might send you a referral you say? It is possible, but your best chance to generate quality prospects on Twitter is to connect with local buyers and sellers in your target market.
TIP: Get out of your comfort zone and interact on Twitter with the people in your community. Not sure how? Check out my Twitter Tips for Real Estate Agents.

5. You are lurking on Facebook.
You say you aren’t generating business on Facebook, but do you engage with the people most likely to do business with you? I have to admit that I was active on Facebook for quite some time before I realized that the people I tended to engage with were the people the least likely to do business with me. Two of my best past clients were Facebook friends and we hadn’t communicated on the network in over 6 months. Then lists came along and I created my “A” list.
TIP: Facebook Lists are a powerful way to stay engaged with your most important clients first. Go to http://www.facebook.com/friends/ & click +Create A List.

6. Your website gives the same information as everyone else’s.
The average real estate agent’s website looks like many others in their local market. It is templated and not customized to fit the agent’s personality, market niche and more.
TIP: Writing a blog is one of the simplest and most cost effective ways to stand out from the pack. You can use a blog to demonstrate what you know that can benefit your target consumer. Don’t tell your prospective customers why you are different from everyone else- show them!

7. You place ads online that lead back to the main page of your website.
If you don’t direct your ads to a contact page or other landing page with a compelling call to action, you are likely to lose the prospect. Trulia’s local ad customers report that a significant number of their leads come directly from the good ol’ telephone.
TIP: Make sure your online advertising efforts direct consumers to a page that tells them how you can help them and how they can contact you. Don’t forget to include your phone number!

8. You don’t have follow up systems in place.
As I mentioned before, the sales cycle for online leads can take time. You may need to follow up and nurture the prospects over a period of months and years. I have had people call me to list their house two years after they registered on my website. I signed them up for my weekly market stats report and we remained in touch.
TIP: Whether it is market reports or an email newsletter, you should have a regular campaign in place so that when they are ready to move, they think of you first. Some of your web leads will never move, but their friends & family will.

9. You haven’t defined what “working means”.
How do you know it is or isn’t working if you haven’t defined what working means?
TIP: If you want your internet marketing to work, you need to define what that means to you, and how you are going to track your success. Without performance goals in place, it is impossible to measure success.

10. You aren’t calling/email people back.
This sounds so simple, but yet it happens all the time. Our consumers complain that they fill out web lead forms and don’t receive a follow up back. So agents are spending time and money prospecting, but when it comes time to handle the new lead, they don’t call the prospect back.
TIP: Call/email prospects back as quickly as soon you can! The quicker you follow up, the more likely you are to convert them as a client.
In the coming weeks, we will be talking about different methods of online marketing and diving deeper into how to make online marketing work for your business. We will also be sharing our TruliAmazing Marketing Tips from our readers. Stay tuned!
About the author
Ginger Wilcox
Ginger Wilcox is Head of Training at Trulia. Ginger has sold real estate in California and Arizona. Follow Ginger on Twitter

Miami Heat = More Real Estate Sales ?

Of all the images captured during the first game of the NBA Finals at home— heroic three-point baskets, seemingly impossible passes, energetic dunks — it was a different kind of shot Tuesday night that warmed the heart of Miami’s image boosters.
“When they do the cutaways and they show the skyline and the downtown shot, you see the water glistening, these are Chamber of Commerce moments,” said Rolando Aedo, chief marketing officer for the Greater Miami Convention & Visitors Bureau. “Those aerial shots are manna from heaven and hopefully we’ll see lots of them.”

While not necessarily rooting for a seven-game series between the Miami Heat and Dallas Mavericks, local tourism officials wouldn’t mind the extra exposure — as long as Miami wins, of course.

This year’s finals will be the most widely distrubuted in NBA history, the league contends, reaching fans in 215 countries and territories. Ratings for Tuesday’s game were the highest for a first NBA Finals game since 2004. And more than 2,000 members of the media are credentialed to cover the series, including 315 from outside the U.S.

After Thursday’s game, the championship moves to Dallas for the next three match-ups. A full series would mean four games in Miami, which would equal millions of dollars in brand exposure for home-sweet-home.

Front Row Analytics, a sponsorship and naming rights evaluation firm, calculated that the exposure the city garnered from the live coverage on ABC Tuesday was worth more than $900,000. A 7-game series would result in overall media exposure for Miami of $3.3 million, said Eric Smallwood, the firm’s senior vice president.

While the immediate impact is far less than a Super Bowl, which packs hotel rooms at high rates around the region, four potential nights of Miami-centric coverage could do more for the area’s image. The region’s last experience in the national sports spotlight — the 2010 Super Bowl in Miami — was heavy on sports and light on shots of palm trees and beaches.

“The Super Bowl was about two teams coming here to play a football game, so the focus was on the two teams that happened to be playing in Miami,” said Bruce Turkel, a brand consultant whose firm is the advertising agency for Miami-Dade’s visitors bureau. “The difference here is that Miami is the team. People don’t separate the team from the community.”

He said he expects the impact of the NBA finals to be “off the charts.”

“When the game is over, people have a relationship with Miami,” he said. “I want to go to Miami. Why? Because Miami’s cool. Look at those guys.”

Aedo said he’s hoping potential visitors around the world will have just that reaction.

“The huge payoff is the Miami brand being broadcast throughout the U.S., throughout the world and the halo effect of the Dream Team being in Miami,” he said.

For now, hotels surrounding the AmericanAirlines Arena say they’re seeing a bit of a boost from the finals.

Eric Jellson, sales and marketing director at Kimpton’s Epic hotel downtown, said between fans and guests put up by corporate sponsors, the hotel is seeing a 5 to 7 percent increase in business.

Miami’s InterContinental Hotel, where plenty of Heat jerseys could be spotted in the bar on game night, is flying a Heat flag out front for the finals.

“We have a lot of Heat pride,” said spokeswoman Aurelia Vasquez. “If I could drape a jersey over the side of the building, I would.”

And the new Tempo Miami, across the street from the arena, is offering half-priced food and drinks on game nights at Amuse Lounge to encourage Heat frenzy.

Hotel manager Ryan Roche said he has spoken to basketball fans from Orlando, New York and Washington, D.C. — Heat supporters all — who have come down for games.

Despite being from Cleveland just like LeBron James, Roche said he’s rooting for Miami.

“What’s good for the city, what’s good for downtown is good for Tempo Miami,” he said.

Unlike 2006, when Dallas and Miami last battled for a championship, downtown Miami has established itself as a place to do more than watch a basketball game. The district has added several new upscale hotels, a booming restaurant scene and thousands of residents in condos that surround the arena.

Tadd Schwartz, spokesman for the Downtown Development Authority, said his firm went on the offense to remind the national media that the Heat play downtown, despite James’ announcement last year that he was taking his “talents to South Beach.”

The message, Schwartz said: “Take notice of where the Heat actually play.”





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© 2011 Miami Herald Media Company. All Rights Reserved.
http://www.miamiherald.com


Read more: http://www.miamiherald.com/2011/06/01/v-print/2246595/miami-hopes-to-score-through-heat.html#ixzz1O9IGagOi

Hey Take a look at were we rank in rent vs buy

Top 10 Cities to Buy vs Rent
The real estate market continues to trundle along, now that the homebuyers tax credit has expired and with it, the rush to sign a contract and qualify for $8,000 of free money. On June 22, the National Association of Realtors announced that existing home sales completed in May were down 2.2% compared with April, confirming expectations that the housing recovery will slowed down once the government’s incentives expire. (There was some good news, though: compared with the same period in 2009, sales were up 19.2%.)

That said, relatively low home prices throughout the country have caused many people to consider the issue of buying versus renting. In some areas, prices have declined so much compared to rents that buying a house may actually make more economic sense. In others, despite price declines, renting is still more economically viable. Real estate listing website Trulia.com recently released its new Buy vs Rent index, ranking the top 10 cities in the United States where buying makes most sense, as well as the top 10 cities where you should rent. How did they decide? With the help of the so-called buy/ rent ratio, which is basically the average price of a home in an area divided by the average rent charged per year. If the result is 15 or lower, that means homes in that area are priced so low that buying is cheaper than renting. If the buy/ rent ratio is 20 or higher, the case is stronger for being a renter.

Ultimately, of course, the decision to buy or rent should be based on much more than plain numbers and statistics. Homeownership enables you to build equity over the long term, but comes with costs beyond a home’s purchase price (such as property taxes and maintenance, the broker commissions and other costs associated with selling that home) that require a committment of at least five or six years to be recouped. You build no equity by renting, on the other hand, but you have the freedom to move at a month’s notice. The debate could go on and on.

In the infographic below, we give you the results of Trulia’s analysis, along with some interesting facts on buying versus renting, including the average net worth of home owners compared with that of renters in recent years, from the Federal Reserve Board.