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MIAMI’S CLOSED PRICES UP FOR SECOND MONTH IN A ROW

In Buyers, First Time Sellers, First-Time Buyer, florida, Home Buyer, home sellers, homeowner, Industry trends, Interest Rates, Investing, Investor, Kiyosaki, miami, miami beach, Miami-Dade County, real estate, second home, Self-Directed IRA, Sellers, Short Sales, South Beach, Trends, Wenceslao on December 10, 2010 at 3:16 pm

Not surprisingly, Miami-Dade county’s Average and Median Closed prices were up again, for the second month in a row.

Recently, you read my blog post “LISTENING TO NATIONAL REAL ESTATE NEWS MAY BE DANGEROUS TO YOUR FINANCIAL HEALTH” where in response to recent news claiming that national resale prices were down 2% in Q3/2010, I reported that these were already stale reports that were 2-months old and that by contrast, in October, 2010, the Average Closed Price in Miami-Dade had gone up 6.3% while the Median Closed Price went up 5.5% from September, 2010.

As it turns out in November, 2010 and for the second month in a row, the Average Closed Price in Miami-Dade went up another 5.7% and Median Closed Prices also went up another 3.8% from Oct./2010.

Although the number of properties Sold went down 9.4% from October, 2010, and 1.1% from October, 2009, the number of Pending Sales was up again by 4.1% from October 2010 and up 38.3% from October, 2009.

So, is this proof certain that we’ve hit bottom? I don’t know.

What I do know is that, if you are looking to buy in Miami-Dade county, and you are looking to close before the 12/31/2010 deadline so you can get the deductibility and Homestead Exemption, you must hurry.

Although you do not need to have the deed recorded by 12/31/2010, all documents must be executed by then.

Also, waiting may already cost some people about 12% more based on the recent increases in the Average Closed Price since September, 2010 and 9.3% more based on the Median Closed Price since September, 2010, which stood at $125,000 then and stands at $135,000 as of November, 2010.

Sellers must also understand that, this is NO time to play or allow greed to take over. It is time however to get serious about discussing your marketing with your Realtor.

There are several components of marketing and Sellers control one of the most critical: PRICE

Although a buyer’s ability to have easy access to see the property and how the property shows (is it staged or cluttered), are also two-critical components sellers control, price is a function of almost everything else, including property condition, market condition and other factors we cannot control.

Your professional Realtor controls the promotion and marketing of the property. However, when a property does not show very well or making showing appointments becomes inconvenient for buyers, your Realtor’s best efforts to get the property sold at the highest price, within the shortest time and the least hassles, may be (at least to a degree), negated.

Buyers on the other hand are competing for deals with other buyers and investors. This is no time to hesitate, over-analyze or waste time before looking at the potential deals your Realtor is sending you. It is also no time to second-guess prices if you are at risk of suddenly, being priced out of the market.

With prices on the rise and interest rates also on the rise (even if marginal), the combination of higher prices and higher rates could be lethal to a border-line buyer.

If you are looking to make a purchase or selling decision in the next 15-30 days, don’t hesitate to contact a professional Realtor (remember, not all real estate agents are Realtors – members of the National Association of Realtors who adhere to a strict Code of Ethics), and one who is additionally trained in helping you navigate through the idiosyncrasies of distressed properties*.

If you are looking to sell (not list for sale but list to sell), you may request a Free Market Analysis at FreeMiamiHomeValuation. There is no cost or obligation and you will also get two special reports with your Free Valuation report and will also entitle you to a 30-minute, no cost or obligation consultation.

For Miami Beach, the numbers are even more staggering.  Closed sales in November, 2010 were up 5.9% from October, 2010 and up a whopping 38.5% from October, 2009.

At the same time, Pending Sales in November, 2010 were up 42.1% from October, 2010 while up an incredible 80% from October, 2009, clearly demonstrating that the beaches, as a localized location, is quite more attractive and continues to produce strong results.

More on Miami Beach on a separate post.

*Visit www.CDPE.com and find a Certified Distressed Property Agent near you.  With about 29,000 CDPE’s nationwide, this is the largest professional association of its kind in the nation.

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Miami-Dade: Distressed Property Sales Outpace Non-Distressed Sales | Real Estate News – August, 2010

In bank-owned properties, Buyers, closing, credit, Distressed Sales, fannie mae, FAR, FHA, First-Time Buyer, florida, Florida Legislature, forclosure, foreclosure, foreclosure prevention scam, government, home sellers, HomePath, HUD, Industry trends, Kiyosaki, lenders, Market Report, miami, miami beach, modification, mortgage, NAR, real estate, REO, Sellers, Short Sales, Trends on August 13, 2010 at 5:11 pm

County Sales and Statistics

Year over Year, inventory of all for sale properties between July, 2010 and July, 2009, saw an overall drop of 14.6% from 28,059 units in 7/09 to 23,976 in 7/10.

Sold properties also saw a drop from 1,870 in 7/09 to 1,698 in 7/10, or a 9.2% drop in closed transactions, while Pending Sales (properties under contract), saw a surge of 16.1% from 2,635 in 7/09 to 3,058 in 7/10.

The bleakest sector can be seen, when one looks at Non-Distressed sales activity and compares it to sales of Short Sales (pre-foreclosures being sold for less than what’s owed), and REO sales (properties already repossessed or Real Estate Owned).

There was a drop in the inventory levels of non-distressed properties for sale of 28.9%, while closed sales in this category also saw a drop of 29% and pending sales dropped by 41.3%. The drop in inventory may be due to an increase in short sales, REO or sellers dropping out of the race, still unwilling to compete at today’s prices.

This is a clear indication that buyers (those who dictate where “the market” goes), continue to control this market and favor distressed sales and non-distressed properties, priced aggressively.

Some buyers may also be swayed away from pursuing distressed sales due to the time it takes to close (especially short sales), or the heavy competition and mostly cash buying requirements for pursuing REOs.

Non-Distressed sales often offer a ‘regular sale’ transaction feel without the stressors associated with the others, helping those in this market segment who are ready to make an aggressive deal.

In our segments below, it seems clear that the market segment exhibiting the most activity due to increased demand, is by far the distressed property segment. Short Sale property owners don’t normally care if the buyer requires financing or not (except in the condo market), and REOs are quite aggressively priced, making them very attractive.

REO Volume Sold

REO Activity

REO properties for sale were up 92.3% to 2,111 in July, 2010 signaling that lenders are taking back more inventory and finally assigning them to asset managers and Realtors to sell.

For a number of reasons, closed REO sales saw a 23.5% drop in transactions from 872 in 7/09 to 667 in 7/10.
This could be in great part because of lenders favoring cash offers over financed deals (which mostly affects properties needing a lot of work and condo units).

As cash buyers dry up and non-cash buyers (mostly FHA buyers and those seeking the now gone tax credit), retreat, sales in this segment will continue to be slow.

Also, lenders are unlikely to allow a buyer come in with a construction loan to buy a rehab property (such as with FHA’s 203k loan program). These specialized loans take longer to close and lenders shy away from accepting these offers.

They also shy away from accepting any type of financed offer for condo units because so many condominiums now do not meet Fannie, Freddie or FHA standards, that it is not possible to lend in a great many of them.

This makes attempting to buy an REO condo unit with financing, futile, leaving this segment of the available inventory almost strictly in the hands of cash investors to fight over. If they are not buying in bulk, then they must compete for these with higher bids.

Obviously, there is still a lot of interest in this segment as evidenced by the increase of 36.5% in pending REO transactions to 1,151 in 7/10 (from 843 in 7/09). Aggressive pricing is typically the reason interest continues to be high in spite of slower sales.

Lenders are not in the real estate business, they are in the lending business. They don’t care about roofs or toilets, except when used as a criteria for lending against a property (asset). You’d think they’d help facilitate these property sales. Instead, they are getting bit with additional city and/or condo fees and fines, while condo associations get tough on placing liens against their properties and demanding full payment of fees in arrears – all of which is slowing sales. Ask me how I know.

Short Sales’ Specifics

Short Sale Activity

It is imperative that you select trained professionals to help you avoid foreclosure. The damaging effects of doing nothing could cost you thousands in higher interest rates for all your credit needs for many years. In addition, the stigma of foreclosure plays a roll in credit issuing and perhaps even employment opportunities.

Lenders evaluate a candidate based on credit score, ability to repay and character. A foreclosure is likely to negatively impress your lender, be it for a car or even a cell phone and it is especially damaging if you ever decide to buy real estate again.

You see, there is that little question in the mortgage loan application where they ask if you’ve ever had a property taken back in foreclosure. Answering anything other than the truth, could potentially land you in jail for fraud.

In addition, some employers may not hire you or consider you for promotion. In the military and other high security clearance jobs – it may be cause for disciplinary action or loss of employment.

7 out of 10 people loose their home to foreclosure because they make no attempt to get help. Don’t let fear or shame stop you from getting help.

A short sale is when the lender accepts less than what they are owed and releases the lien against the property, allowing it to be sold at today’s price. It may be a solution for someone who is unable to make arrangements to pay back the lender for skipped payments and whose income situation disqualifies them for bankruptcy and/or a loan modification.

Many sellers even find this a more dignified way to end this situation. They often feel that they are in control and helping themselves limit the damage to their credit, while improving their chances of being able to buy again in two or three years when their circumstances get better.

In fact, the distressed property sector showing the most dramatic change in sales activity by far is the Short Sale sector where there was a 6.2% increase in inventory levels from 7,634 in 7/09 to 8,104 in 7/10. A much lower rate of increase than for the previously discussed sectors.

Additionally, this segment showed an amazing increase in closed Short Sale transactions of 415 in 7/10. Seemingly small but, in sharp contrast with the 131 Short Sales closed in July 2009 (or a 216.8% improvement year-over-year!), while Pending Short Sales also sharply increased 107.5% from 575 in 7/09 to 1,193 in 7/10.

Therefore, there is no reason why your property could not also be sold or under contract today, helping you avoid foreclosure. Others have…you can too.
Make your move…take control and contact a professional Realtor who specializes in this field right now.

Creative Real Estate Financing – Self Directed IRA or 401k may help put you in control

In credit, First-Time Buyer, florida, government, Home Buyer, IRS, Kiyosaki, Qualified Retirement Plan, Ramsey, real estate, Roth-IRA, Self-Directed IRA, Suze, tax credit, Tax Matters on March 18, 2010 at 4:39 pm

There is this thing called “the reticular activator” and it goes something like this. You see something you like, you think you’re the only one on the planet who now owns it, and right at the next corner, you see it.Maybe even in the same color!

Maybe it’s an idea that just pops into your head, and WHAM! There’s the tv ad, radio commercial or friend on the telephone telling you about the same thing. Pregnant women know how this works. Suddenly, it seems everyone they know is pregnant!

For some reason, I am hearing more and more people discuss retirement planning and how to grow their nest-egg and how to take control of their finances. Maybe it’s cuz I’m at the tail end of the baby boom generation (born 1961) and I’m surrounded by concerned boomers and this just happens to be the topic o f the day.

Maybe it’s because with the economy the way it is, retirement plans and pension funds evaporating, that folk are beginning to realize that maybe, just maybe, in another 20-30 years (just like our last major recession about that long ago in the early 80’s), when we’re too old to do anything about it, we may find our savings disappear and so, the buzz is about taking responsibility, learning the ropes and taking control of our future. God knows Dave Ramsey, Robert Kiyosaki and Suze Orman have been talking about it for quite a while now.

Did you know your IRA can purchase real estate?

That’s right, since 1975 IRAs and 401k plans have been afforded the ability to purchase real estate, which has helped many investor create large nest eggs by investing in what they know and understand.  As the famous investor Louis Glickman once said, “The best investment on earth is earth”

By simply transferring your IRA from the bank or brokerage firm you are currently using to a self-directed IRA administrator, you gain the ability to make your own investment decisions, without being limited to the stock market.  With all the uncertainty in the stock market, now more than ever is the time to learn how to take control of your retirement plan and invest in what you know and understand…real estate!

Self-directed IRAs offer substantial tax advantages that have made many millionaire investors. The greatest advantage is that IRA investors pay no capital gains tax when the property is sold by the IRA.

In addition, because the profit from the sale is deposited back into the IRA with no tax on gain or growth, the investor enjoys the power of compound interest to invest in the next real estate deal. Although IRS 1031 exchanges can be used to fund partial IRA investments in real estate, Self-directed IRAs do not have the same limitations and holding periods, thus are much more flexible.

Finally, if you’re like many investors who are tired of poor-performing investments in stocks, bonds and mutual funds, Self-directed IRAs offer true portfolio diversification; i.e., in real estate, to help build wealth via tax-deferred or tax-free income-generating assets!

Your first step in purchasing real estate is to have a trusted Realtor who is knowledgeable in finding your ideal property.

Purchasing real estate with your IRA is very similar to conventional means, but IRS regulations must be observed. As with any investing, it’s always appropriate to have competent advice from tax and legal advisors.

Beyond that, the best remedy to avoid problems with the IRS is to become an educated investor by reading or attending a workshop or seminar on buying real estate in an IRA offered by your local Self-directed IRA Administrator.

The local Self-directed IRA Administrator I work with is Entrust Administration Services Inc based in Lake Mary, FL.  To learn more about the company, visit their website at www.entrustfl.com or call them at 407-367-3472.

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*Neither myself nor my brokerage are in any way affiliated with Entrust Administration Services Inc, nor are we compensated by them.  Please do your own due diligence.

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