http://www.youtube.com/watch?v=5-Dcjq55Vt4

The market is improving…

In some price ranges in the Jacksonville area there are less than 2 months of inventory.  Which pairs buyer against buyer in a no holds barred cage match where the winner is crowned the lucky new homeowner.

So, with all of this chaos among potential home buyers, how can you make your offer stand out?  Or, at least try to limit the risk of entering in to a good ol’  fashioned bidding war.

5 Ways To Win The Multiple Offer Game:

1.)  Shorten The Time Line For Response

This may make the owner frustrated, but if you make an offer as soon as it comes on the market (utilize property listings via auto email) and put a response time that doesn’t allow very much room for another buyer to wiggle in.  There’s a decent chance that you can get ‘er done.  However, keep in mind that just because you put a deadline for response, doesn’t actually mean the seller will observe that deadline.

2.)  Remove Unnecessary Contingencies

Financing, inspections, appraisals, another home to sell, etc.  All of these are contingencies that may make the seller lose sleep at night wondering whether the deal is actually going to close or not.  It may not be prudent to drop certain contingencies, but certainly take a look at your offer as if you were the seller.  Sometimes peace of mind is worth more than another thousand dollars.

3.)  Check Expired Listings

Again, things have changed pretty dramatically in the last 6-12 months.  The owner who couldn’t sell his property a year or two ago might not have that same problem today.  As a matter of fact, you (our excited potential new homeowner) may be willing to pay the previous list price (now that prices have improved +/- 10%) which makes everyone a happy camper!  

Side Note:

Contacting sellers who have been on the market previously is part of my daily regimen, and keeping my current buyers in mind when I’m having these conversations is priority numero uno.  Be sure and ask your agent to do the same.  

4.)  Make Things Easy For The Seller

Does the seller have a lot of stuff in the house?  Are they needing some extra time to move out after the deal closes?  

Try to find out what would really make the owner’s life easier and include that in the deal.  

Offer to pay for the owner’s move.  Buy their existing furniture.  Or, rent a storage shed and let them put their stuff there for a month or two…

5.)  Go For The Emotions

Even when you’re not in a multiple offer situation, this is good advice.  Take a few minutes and compile your thoughts onto paper as to why this is the right home for you and your family.  Don’t go so over the top that you lose any negotiating edge you might have, but simply make your case as to why the home will be in good hands with you after the transfer.  

This won’t be effective in every situation.  For example, banks and relocation companies could probably care less about a personal note.  But the homeowner who’s lived in the neighborhood for 20 years and wants to feel as if they are giving back by pre-screening the new owner will love you for it!

That pretty much wraps it up.  Keep these things in mind and you’re well on your way to outsmarting the other buyers you’re competing against for properties.

If you have any questions feel free to  or send me an email.

Cheers!

Competing In A Multiple Offer Situation is from: 904Living.com

http://www.youtube.com/watch?v=1LMYFoj1sLQ

Not so long ago absorption rates (inventory levels) were consistently in the double digits, Even in the summer time when the market was most active.  Currently there is 5.08 months of inventory in Jacksonville, which means it would only take 5 months to sell all of the available homes if houses continue selling at their current rate.  

Good News For Buyers:

• Mortgage interest rates are still really low (see the chart to the right).

• Historically spring/summer time is when owner occupant sellers start putting their homes on the market.  Hopefully this will add some inventory to the mix.    

Bad News For Buyers:

• I’ve been working with one couple for several months now and they’ve made multiple offers (good offers) to no avail.  The market, in some areas, is incredibly competitive right now.  Making the buying process more frustrating than it normally is.  

Summary For Sellers:

• Make sure that you do your homework (or your Realtor does) on the absorption rate for your property type.  Not all areas are the same.
• Buyers competing is a good thing.  
• It appears that REO (foreclosure) listings are starting to pick up a little bit.
• If you really want to dive deep into local market info – there are 2 pdf’s that are available for download at the bottom of this post.

Things are continuing to look up for Jacksonville Real Estate.  Feel free to with questions, or if you’d like a market analysis for a property you own.  Jeff (at) ERA.com

Download (PDF, 222KB)

Download (PDF, 126KB)

Jacksonville Real Estate Market 1st Qtr 2013 is from: 904Living.com

How much does a home inspection cost? 

As is the case with most of the answers I give in the real estate business.  It depends.

Why?  You ask…

Not all inspectors, and not all inspections, are alike.

For example, at a recent inspection on a home that a buyer/client was purchasing, I struck up a conversation with the inspector about the tool he was using for infrared scans.  

Infrared shows temperature differences at the surface level.  Indicating whether there is poor insulation in certain areas and even moisture.  Basically, it makes apparent issues that you can’t pick up with the naked eye.

This particular tool had cost the inspector $9,000 at the time of purchase.  As you can imagine, the newbie home inspector is probably doing good if they have a digital measuring tape, much less a piece of equipment costing thousands of dollars.  Yet, this very piece of equipment is at the core of what makes this inspector “worth his salt.” 

To the point.  Assuming a 2,000 sq ft, single-family detached home in the Northeast Florida area, you can expect to pay between $200-$450 for a general home inspection(not including the WDO inspection).  Much more than that and you’re probably paying for the inspectors overhead, marketing budget, or fancy car!  For houses bigger than about 3500 sq ft I would expect to pay a bit more. 

Now, there is one more item to consider.  The inspector’s reputation.  You do need to ensure they’ve been in business for a reasonable amount of time, are properly licensed, properly insured, and have good references from someone in or around the real estate business (i.e. contractors, builders, real estate agents, etc.).  “Birds of a feather flock together.”

A few tips:

• Ask to see a copy of a report that the inspector has done recently.  They may have to white-out some names and addresses, but no big deal. 

  • A picture is worth a thousand words.  However, a picture with no description, arrows, or areas that are circled can be pretty darn confusing.  Check to see if their reports have pictures and descriptive text to accompany. 
  • Does it look like most of the content is pre-populated?  Or, is the inspector writing descriptions and detailing the issues of the property.  Nothing bothers me more than getting a 97 page inspection report that is 90% pre-filled content.  Then you have to sort through a sea of information to figure out what’s going on. 

• Meet the inspector at the property

  • You don’t necessarily have to arrive at the same time, but show up towards the end.  That way the inspector can go over what they found.  Photos and reports are great, but nothing beats an in-person breakdown of the findings. 

• For obvious reasons, I wouldn’t recommend taking contractor references from the inspector. 

• If you see anything prior to the inspection (stains on the ceiling, cracks in the stucco, etc.) that you are curious about, be sure to mention it to the inspector beforehand. 

In closing, know that inspectors (just like you and I) are flawed human beings.  They can’t be expected to find every problem in a house.  But, if you find a good inspector, and do your best to ask probing questions about the property, you can get a pretty good idea of what to expect once you move in.

Cheers!

How much does a home inspection cost? is from: 904Living.com

Whether you’re in Florida or Alaska, this post is intended to give you a few general guidelines for ensuring you’ve chosen the right agent for the job.  I know as well as anyone, that real estate agents can be a pretty funky bunch sometimes.  

________________________________________________________________________________________________________

The List…

4 steps to help YOU choose the right agent:

1.)  Find

• According to the 2012 NAR Profile of Home Buyers and Sellers, roughly 40% of sellers find their agent through a personal referral.  The remaining sources include: Agents used from a previous deal, the internet, open houses, etc. 
  • Use social networks to see if you have common acquaintances that you could use to gain insight into their work ethic and success in the business.

• Most sellers only interview 1 Realtor (around 65%) before signing on the dotted line of the listing agreement.  

Consider the old LendingTree.com commercial that said, “When banks compete, you win.”  In my opinion, a little competition gives you the best chance of getting the highest performing agent possible.

• Avoid looking down the street for a neighbor that’s “in the business” and going with them simply because of their proximity.  
  • First, they may not be doing much business.  You don’t want your listing being the only thing they’ve done in real estate for the past 6 months… regardless of how close they are.
  • Second, if things go awry, it could be awkward parting ways and finding a new agent since they’re a neighbor.  

2.)  Qualify

• How much volume (total price of all homes sold) have they done in the past 12 months?  How many units?  
• Have they sold homes in your neighborhood/area before? 
• Get a recommendation from a previous customer.
• Do they work full time?  
  • With the average Realtor in Northeast Florida selling less than 4 homes per year, it’s a valid question!
• Does the agent work as a team or individually?  If individually, what happens if they go out of town?  Get sick?  Or, are unavailable?
• Do they seem willing to price your home wherever you choose?  BEWARE!  Pricing real estate isn’t like selling clothing in the mall.  Get it wrong, and you could lose big $$$.  You should be confident in the Realtor’s skill and market knowledge to appropriately come up with a pricing strategy for your home.  No one has a crystal ball when it comes to predicting what a buyer will pay.  But, pricing correctly is as much science as it is art.   
• How much do they charge?  What is common for your marketplace?  Are they splitting the commission 50/50 with a buyer’s agent or keeping a larger portion for themselves?

3.)  Listen

• The person sitting in front of you should be the expert.  So, allow them to “sell” you on the benefits of their services over the competition.
• What is their strategy for selling your home?
  • Does it sound as if they have thought it through?
  • Do they have a professional presentation and approach for the marketing and advertising?
  • Do they “think like a buyer” in order to put your home in front of the right people?
  • Are they using YouTube, Google, and other search engines to expose your listing?
  • Did they provide you with a list of homes they’ve sold?

4.)  Test Drive 

• How are buyer’s going to find your house?  Will they inquire on sites like Zillow, Trulia, or the agent’s personal website?  Try the agent on their response time.  Submit an inquiry on one, or a few, of these sites to see if they’re responsive and engaged.  

According to the Real Trends 2012 Online Performance Study, the average real estate professional takes 72 hours to respond to an online lead.  However, 56% of consumers expect a response within 30 minutes.

• Sign up to search for listings on the agent’s website.  Did they call you?  Were there additional attempts to contact you after the first try?

Wouldn’t you want the agent who has your home listed to pursue a potential buyer until they were sure that there was no chance of coming together on a deal?

• Professional Photography is an absolute must these days!  Look at their other listings to see if they look good, or do they look like they used their grandfather’s kodak?

If you have questions, feel free to  or send me an email.

Questions For A Realtor Before Listing Your Home is from: 904Living.com

http://www.youtube.com/watch?v=qa20FkwJigo

At the bottom of this post is a long, boring document from the US Department of Housing and Urban Development titled Mortgagee Letter 2013-04…  What does it say?  It’s time for FHA loans to make some money!

Long story short, they are increasing the monthly mortgage insurance premium, which will cost you (the borrower) more money.  Additionally, they are extending, or eliminating, the ability for a borrower to get rid of the mortgage insurance premium.  Previously, you were able to remove the MIP after 5 years and when the loan amount hit 78% LTV (loan to value).  No mas.  See the excerpt from the the letter below.

For any mortgage involving an original principal obligation (excluding financed UFMIP) with an LTV greater than 90 percent, FHA will assess the annual MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first.

Takeaway

• If you’re thinking about buying at some point in the near future, and obtaining an FHA mortgage, don’t miss the deadline!
• Same thing if you’re considering a refinance.  Don’t wait!  There is an exception for those owners who are refinancing a previous FHA loan.  ”Except single family forward streamline refinance transactions that are refinancing existing FHA loans that were endorsed on or before May 31, 2009; the rate for those streamline transactions remains at the level announced in ML 2012-4.” 
• You can still access the Neighborhood Lift funds until the money runs out.  So, this news adds more fuel to the fire to get moving.  

Download (PDF, 90KB)

Loan Costs Getting More Expensive on April 1st 2013 is from: 904Living.com