Talk of Tallahassee

I've had several buyers on the fence the past few months.  Many have called this seek after the announcement of the Feds lowering the rate this week.  The article below is courtesy of Rob Knapton, Wealth Management and is a pefect summation of what this means to borrowers.

I am getting 6.125% fixed rate mortgages for folks. Just yeseterday, I locked a buyer into this rate, another into 6.25... This translated into a savings of $150/month for one customer and $98/month for the second.  

Working with the right REALTOR, seeking the advice of reliable lenders, and educating yourself before any major real estate purchase will help you obtain the best possible sales price and loan amount that will result in an affordable and solid investment.

It's another window of opportunity to purchase and now is the time to lock into these rates, to consider refinancing or taking out your home equity loan to purchase your next investment property.

Call me today!

I will help you find the financing for your next home or investment property purchase!

Lower Fed Rate Means Opportunities on the Rise

For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate, which directly impacts millions of American borrowers. And while this important decision has many implications, there’s still some debate among experts about what this means to the economy as a whole.

The Federal Reserve meets again in six weeks, and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can. Call me right away.

• If you’re looking to capture a lower interest rate for refinancing or buying a home, this could be your best opportunity to do so.
• If you have an Adjustable Rate Mortgage, while this rate cut might help to improve your situation, now is the time to refinance into a fixed-rate loan.
• If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed’s cut in the Fed Funds Rate just put a little money in your pocket.

Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%.

Yes, we may experience some temporary improvements in rates in the coming weeks, but the markets will remain volatile as long as inflation and recession are a possible threat to the Federal Reserve's long-term economic policies.

Rob Knapton
Owner / Broker
Wealth Management Mortgage Corporation
Phone: 850-668-4000
Fax:850-668-4005
rob@wmmcflorida.com

SHORT SALES IN REAL ESTATE

The Alternative to Foreclosure

It seems every day there is more on the news about “foreclosures” and lender distress. There are increasing numbers of investors who initially bought properties with the intent to “flip” and make money but who are now faced with longer holding periods on these properties. This is due to a combination of factors, not quantified by a generic description of a “slow market”. Those factors include: more resales on the market because interest rates were easily attainable and affordable, current property values had a dramatic increase because of the adverse – lack of inventory at the time, and a flood of new construction brought on by builders who were able to acquire great loans, process development permitting and beginning construction to fill the “lack of inventory” and demand for housing. These are all natural occurrences in the day to day real estate market; however, these dramatic market swings were neither predictable nor foreseen by most.

So today we hear about those who had not planned to hold their properties, to maintain payments, and who are not prepared for the “adjustment” on the Adjustable Rate Mortgages. ARMs were attractive for the first two years…but now are doing what they were designed to do,.. adjust – upwards. Of course, there are also the ARM products that some acquired by “predatory” lenders – lenders who preyed on those customers who just couldn’t wait to get a property, who may have rushed or been rushed through a process without proper explanation of loan terms. So, this has lead to many folks who are not prepared for these increases, disclosed or not-disclosed, or to hold their properties and resulting in people giving up, proceeding to foreclosure.

REALTORS® are struggling with ways to help customers who want to avoid foreclosure proceedings, but do not have the time or money to pay for marketing or the expenses of selling their homes. I will attempt to help my customers, because I care. I care about my customer’s credit, about how it will affect their ability to purchase again, and how I can help someone recover to purchase again in the future.

Foreclosure, signing away ownership to your home, in such a way that destroys credit and causes humiliation is one of the hardest ways to loose a home.

A “Short Sale” is an option to avoid this scenario. A team of people will need to assist someone in this transaction. A CPA to review the tax consequences, a lawyer to work with a customer should “deficiency” issues arise with I.R.S., and most importantly, a REALTOR® on the ground floor to coordinate these efforts, and to write a contract that must be presented to the lender along with a comparative market analysis (CMA) of the property in question.

Most lenders would prefer this option as well. Foreclosures are costly, to all parties, and settlement via short sales is preferred by most lenders. Communication is imperative however.

It is imperative that work on these type sales begin as soon as possible. If you know you are in trouble,.. If your budget is failing to maintain payments on your property, or know of someone in this situation, call a REALTOR® today.

If you or someone you know needs more information on “Short Sales”, please call me at 212-0440.

Labor Day 2007

I trust each of you have had a great Labor Day weekend. I’ve actually taken a day off after running an open house at Pirate’s Landing in Carrabelle. Many of you know taking a few days is atypical for me! I’ve had a chance to read, clean up the beach house and here I sit with a chance to post a blog entry. A rare occasion to concentrate on one thing for a few moments.

I’ve been reflecting on Labor Day,.. on my labor over the past few years, and decided to answer a few questions from my customers and friends that seem to keep popping up. How I got started in the business, what I think of the market and what keeps me motivated and what I love about my job. Labor Day seems as good a time as any to elaborate,.. (something I have a gift for)!

One of the first things people ask me is how and why I got into real estate. They also act surprised because that they think I have been in the business for many more years than I actually have – a great compliment!

I actually had a little background in real estate, a few personal property closings under my belt, and along the way I met some fabulous REALTORS. I have to say, they made lasting impressions, and I am lucky enough to work with some of them today! I wanted to have their jobs! I tossed over the idea for years actually! Taking the real estate course twice,..but not the State examination always seemed to catch up with me. Life never seemed to accommodate a REALTOR’S schedule,.. my kids were small, then a single-mom..and even the last obstacle, fighting breast cancer while taking the course for the third time. This, however, proved to be the final reality check. Progressing with the things that I wanted in my life now took on new meaning and relevance. A sense of urgency overwhelmed me, and this was the last of procrastination!

I began my business five years ago, working a full time job and stepping into the world of real estate as what I thought was a part-time job. My day began by getting my kids off to school, heading to the computer, making calls and setting appointments before I left for the 8:00 – 5:30 job I had held for 20 years. I spent most of my lunch hours on the phone either sitting in my car, or scooting over to the real estate office. As soon as I left the dental office, with a change of clothes and fresh make-up in hand, I would head directly to the real estate office to show property, prospect, design advertising and assemble listing packages and whatever else I would need for the days ahead.

I soon realized my “part time” job was now my full time job and that I literally did not have enough hours in my day. My first sale was my first day on the job, and it just got busier from there! I was faced with a tough decision when asked to choose between my present job or real estate by my employer. Within less than 60 seconds of consideration they had their answer. Although my previous career provided me with the people skills, the sales presentation, and the management of time, real estate has always held more interest, more excitement and had been my dream for years. No one was going to take that dream from me – not even father time! It was time to make that dream a reality. Finally putting my talents to use for myself instead of someone else just made sense. I hit the ground running and have never once looked back.

I spent the fist months becoming active in the Tallahassee Board of Realtors, learning the operations of my profession and mentoring with agents who were in the top 10% of my profession. I was a sponge for information, tips and techniques which I modified or used to build my customer base, by business practices. I still associate and mentor with my peers – although now I am proudly in that top 10%!

I have learned that I am not alone in my work ethic or professional management practices. Working with other agents within my profession has given me insight into negotiations and managing a successful transaction. I still think the general public has no idea what our jobs entail. Once you have been through a transaction with this REALTOR however,.. you will know!

Motivation is an easy thing for me to talk about. The older I get, the more valuable my time becomes, so I try to make the most of my working hours. It is amazing, however, that I always feel I am “on’! Wherever I go, or whatever I may be doing, people are always looking at me, recognizing my picture, some not quite sure from just where until the see my name tag or license plate. I even had one person in the grocery line pick me out from the “line up” in the Real Estate Book of Tallahassee where I advertise – not particularly a glamorous discovery as I had my motorcycle clothes and boots on and was just in for a quick stop! People either need simple advice, have issues that need resolution, or want to actually buy or sell property. Of course, I am there – for whatever the need may be. That introduction turned into a sale – so,.. guess I do work all the time! My phone is always on…and ringing which is a compliment really, and an achievement that motivates me even more! My greatest compliment however are the referrals I receive from past customers and even other agents! That really is a boost!

I believe in professional education.. I have achieved the GRI I, and am about to take my broker’s exam. The next thing is my CRS designation and the GRI II. Life is about education, learning. I attend FAR and NAR meetings, and am constantly motivated and jacked-up after hearing motivational speakers and learning something new! I just got back from Orlando and am still in a whirlwind of thought from that meeting! I want to be informed, to have the knowledge to answer the questions customers have and provide information consumers need before making decisions on real estate investments.

I deal with first time home-buyers and purchasers of million dollar properties, small contractors and established builders. I believe in spending time getting to know each customer. Each one is unique and each transaction poses it’s own challenges. I thrive on that stuff! Real estate investments are huge decisions for any customers. Knowing your customers, their motivations, their skill levels and their overall business knowledge enables me to counsel them, to find the property that best suits their needs. I sometimes know that a person will purchase a property before they ever see it! That only comes from many hours spent with the folks that haven given me their “checklist”, and recognizing property – fitting it with that customer! It also helps me stay out of “differences of opinions” from time to time! There is no greater feeling than visiting with someone in their new home after they have settled in and you know that you helped that person find their way home!

People ask me about the “market” all the time. Although I am no ostrich, with my head in the sand, I study market trends, make the adjustments with sellers and buyers, inform and adjust with the market. Again, I rely on some experts in my field that provide great reports, and speak at weekly Board meetings. There really never has been a better time to find homes, to borrow money. Interest rates are affordable, inventory is plentiful and there is healthy movement still! Again, my phone is ringing, and I am grateful to be working every day!

Most importantly, people know that I love what I do! I find myself no different than all of those in the top producing realm of real estate. We all have that in common.. thriving on the excitement and possibilities within the search, negotiating towards a closing and the smiles on the faces of those we work with afterwards. Most of us believe in giving back to our communities as well. This month we begin the first fully funded Habitat for Humanity house to be built with donations of time and money from REALTORS in the Tallahassee Board of Realtors. This is my personal charity and pledge as well, $100.00 for every closed transaction goes to Habitat. Truly, it is a great time to be in my business!

I will close with one quick story… a recent call and conversation from a prospective seller referred by another agent. His first question was, “Why should I choose you over “XXX” agency (a franchised company working his neighborhood)? I could think of only one response,..”You called me,.. I think you just answered that question!”

I look forward to those customers… and those compliments! Happy Labor Day folks!

Watch for some great new listings coming up, check out the "New Construction" Page on my website if you are thinking of buying a new home anytime soon.

Call or visit my website http://www.HomeSalesofTallahassee.com if you need help, or you are simply looking for your next real estate investment!