Boca Raton Real Estate

Housing Stats Imply That It’s Time To Buy  

According to a recent report from Global Insight, an economic and financial analysis forecasting firm, current housing statistics indicate that now is the right to time to buy.

They claim that the U.S. housing market as a whole is undervalued by 3.8 percent. Global Insight analyzed 330 metropolitan areas in the United States and found that 241 metro areas experienced price declines in the third quarter of 2008 in comparison to 150 metro areas in the second quarter.

The markets that were hardest hit were in areas that were most overvalued three years ago. This study, a combined effort by HIS Global Insight and National City Corporation represented 78 percent of all existing housing units in the United States.

Low intrest rates and increased affordability make today’s market a buyer’s dream!

Source: Global Insight (12/03/2008)

Tips To Avoid Costly Scams

Imagine…it’s springtime.   You’re thinking about making some updates to your home, or just doing some “spring cleaning.”   According to the National Crime Prevention Council (NCPC), spring is when the majority of home improvement cons surface.

Think that you can spot a scam?   Hopefully, after reading the tips below, you will be able to!   Con artists often target low-income, elderly homeowners, and use high-pressure tactics, so make sure to inform the seniors in your life too.

Following, are some tips for you to avoid expensive cons, from the NCPC:

• Ask for local references.   Contact them, and if at all possible, go inspect their previous work, and ask the homeowner about their experience with the contractor.
• Call the Better Business Bureau to see if there are any complaints against the contractor.
• Ask to see their business license and insurance certificate.
• Get bids from a few different contractors, and compare.
• Only pay once the work is done to your standards.

There is more information online, at:   www.ncpc.org.

If you have any questions, don’t hesitate to contact us at:   www.NathansonBrothers.com

Down Payment  Assistance?   Not For Long!

Right now, if a buyer qualifies for an FHA loan, which requires a 3% down payment, the buyer can request that money from the seller, in the form of  down payment  assistance.   Essentially, there is an intermediary company that takes the money from the seller, and gives it to the buyer, all at the closing, and it’s legal and permissible.

There is currently legislation that will prohibit this from happening.

What’s the big deal?   Well, right now, if the buyer qualifies, and the seller agrees, then the buyer can buy the home with almost $0 out of pocket.   Don’t get me wrong.   This isn’t like the sub-prime loans of yesteryear.   The buyer must meet strict qualifying guidelines.

When this legislation passes, and it will, buyers must come up with at least 3% down to buy a home.   So, if you’re considering buying a home, and would like to do so without a lot of money out of your pocket, then get going!

If you have questions, don’t hesitate to ask us.   Just visit:   www.NathansonBrothers.com

Boca Raton Real Estate Update

So, what’s going on in the Boca Raton real estate market?

The graph above is pretty, isn’t it?   It has some pleasant colors, and “movement” of the lines.   What does it actually tell us, though?   It gives us a 3 year history of what has been going on the the Boca Raton real estate market.   The green line represents homes currently available for sale.   The blue line shows homes that have sold for the month.   The red line indicates the number of new listings for the month, and the yellow line shows the average price of homes that have sold for the month.

We don’t give much weight to the average sale price representation (yellow line), because it isn’t an accurate representation of what’s going on in the market.   For example, if there is a run on Century Village condos, the average sale price can be skewed down.   If a $20+ million home sells, the numbers will, obviously, jump up.   The median home price in Boca Raton, for the month of May 2008, was just over $300,000.   Median means that there were an equal number of sales above that price, and below that price.   It is not the average, which was over $560,000.   Sales ranged from a low of $24,000 in Century Village to $10,600,000 in Royal Palm  Yacht and Country Club.   What we are seeing in the market right now, is that home prices, generally, are coming down at a rate of 1.5 to 2% per month.

The other numbers, though, give us a good idea of what is happening in the market.   One of the things that it tells us, is that at the rate that homes are selling (blue line), it would take almost 2 years to sell all of the homes currently available for sale (green line), if no other homes came on the market, and more homes are coming on the market every month (red line), than are selling every month.

A “normal” market is one in which there is about a 6 month supply of homes available.   When there is less than a 6 month supply, it is generally considered a “seller’s market,” and when there is more than a 6 month supply, it is generally considered a “buyer’s market.”   What do those terms mean?   It essentially boils down to the basics of economics; supply and demand.   In a seller’s market, there is a limited supply of homes for sale, so, prices rise.   In a buyer’s market, there is a glut of homes on the market, and buyer’s have their pick, so prices, naturally, come down.   Obviously, we are currently in a buyer’s market, which is why we’re seeing prices come down.

If you have any questions about your specific situation, please, don’t hesitate to contact us.   Visit our website at:   www.NathansonBrothers.com

Practicing Good Seller’s Etiquette

Let’s face it:  When your home goes on the market, you’re not only opening the door to prospective buyers.   You are also sometimes opening the door to unknown vendors and naïve or unqualified buyers.  As with any business transaction, there is an expected protocol to how sellers, buyers and their respective agents interact.   Should you find yourself in a sticky situation, alert your agent so he or she can address and remedy the problem.

The aggressive agent
When your agent puts your home on the market, typically all promotional materials state clearly that your agent is the primary contact for buyers and buyers’ agents.   However, sometimes a buyer’s agent will contact a seller directly to try to either win over their business or cut the seller’s agent out of the deal.   This is not reputable behavior and you should report it to your agent immediately if it happens to you.

The unscrupulous vendor
Have you ever started a business or moved into a new house and suddenly found your mailbox full of junk mail?   Unfortunately, this also can happen when you put your home on the market.   When you sell your home, it necessitates all kinds of new purchasing decisions, and less-than-ethical vendors are keenly aware of this.  Though MLS organizations enforce rules on how posted information is used, some companies have found ways to cull information from various sources to produce mass mailing lists. If you find yourself regularly emptying your mailbox of junk, let your agent know.   He or she can tap the appropriate sources to prompt an investigation into the matter.

The naïve buyer
Yard signs, Internet listings and other advertisements can generate a lot of buzz for your home.   Some prospective buyers – particularly first-timers – will be so buzzed to see your home that they’ll simply drop by.   If this happens, no matter how nice these unexpected visitors are, it’s best not to humor their enthusiasm by discussing your home or giving an impromptu tour.  Instead, politely let them know that your real estate agent is in charge of scheduling tours and provide them with the agent’s contact information.   If you attempt to handle these surprise visits on your own, you might inadvertently disclose information that could hurt you during negotiations down the road, or even put your safety at risk.

For more information, contact us at:   www.NathansonBrothers.com

Baseball Cards And Collectibles As Closing Money

In the search for funds to close, there is an oft-overlooked source that could be right under your nose ” or at least somewhere safely tucked away inside your closet.   How about that 1952 Mickey Mantle rookie baseball card? Sound silly? It™s not. That baseball card has real value and can be readily sold to a collector.

But what if you did not want to part with your card or your prized PEZ collection? Could you access the equity in such items in order to buy a home? You bet you could. Be it an antique, a piece of artwork, car, collectible or any other asset.

The principle in such a transaction applies to any asset that can be independently appraised by a third party. To make this work, you need to be careful in both documenting the value of the asset as well as documenting the funds received should you sell it. For example, let™s say you have a first edition autographed copy of In Cold Blood by Truman Capote that™s worth $2,000. You would first have the book appraised by an expert. Keeping a copy of the appraisal, you could then sell the book and document the sale with a copy of the receipt and deposit the money into your bank account. Or, you could also borrow against the value of the book.

Lenders will allow for a secured loan to be counted as legitimate funds available for closing, as long as the terms on the loan are figured into your debt ratios. That way you won™t have to part with your beloved 1952 Mickey Mantle rookie baseball card or your copy of the Capote book. You can borrow against these ” as long as you can find a lender willing to give you the loan. Collectibles such as baseball cards, while valuable, are much less commonly used as assets than automobiles. But they can be just as fruitful.

So, if the lender can independently obtain a legitimate value assessment of the asset that matches up with the appraisal, then you potentially have another tool to help you fund your home purchase.

For more information, please contact us at:   www.NathansonBrothers.com

Boca Raton In Pop Culture & Notable Residents

Boca has been mentioned in many movies, including Cats & Dogs, Music and Lyrics, Wag the Dog, A Perfect Murder, Bewitched, and Mr. 3000, and in many TV shows, such as Histeria!, American Dragon: Jake Long, American Dad!, Nip/Tuck, The Sopranos, Lizzie McGuire, The Golden Girls, Code Name: The Cleaner, The Nanny, The Venture Brothers and MADtv.   These references usually have something to do with Florida’s reputation for its resorts, or high concentration of condominiums, or alternately, especially in the case of Seinfeld, numerous references to Boca Raton as “God’s waiting room.”   There is also a reference in rapper Young Dro’s song Shoulder Lean, in which he says “ice comes from Boca Raton,”  among numerous other songs.   Additionally, in rapper Trick Daddy’s smash hit Shut uphe says “But all my Boca (Raton) Boys they know dough, that’s fo’ sho’ doe.”

Boca Raton has also been the stage and background for many movies filmed on location in Boca Raton, including Paper Lion (1968), Paper Moon (1973), Caddyshack (1980), Where the Boys Are ’84 (1984), Stella (1990), and Folks! (1992).

Notable Residents – Past and Present

• Carling Bassett-Seguso with husband Robert Seguso, both tennis players
• Chris Carrabba, lead singer and guitarist of Dashboard Confessional
• Chris Evert, tennis player
• Sébastien Grosjean, French tennis player
• John W. Henry, part-owner of the Boston Red Sox
• Dennis Kozlowski, former CEO of Tyco International
• Bernhard Langer, golfer
• Marilyn Manson, musician
• Leonard Marshall, former New York Giants football player
• Nicko McBrain, Iron Maiden drummer
• Vince McMahon, WWE Chairman
• Corina Morariu, tennis player
• Sabby Piscitelli, football player for the Tampa Bay Buccaneers
• Morgan Pressel, golfer
• Burt Reynolds, football player, actor
• Andy Roddick, tennis player
• Frank Rosenthal, ex-Las Vegas casino owner and handicapper
• Vince Spadea, tennis player
• Jeff Gordon, NASCAR Racer

Information taken from Answers.com.   For more information about Boca Raton real estate, contact us at:   www.NathansonBrothers.com

What Interest Rates Really Mean

The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale.   In turbulent economic times the media can™t wait to report what interest rates are doing.   Pundits prognosticate, forecasters forecast and soothsayers sooth.   When should you buy a home based upon interest rates and when is it the right time?

The fact is that interest rates, while important, have little impact when it comes to buying a home.   Alright, alright, I™ll admit: it™s important¦but it™s not a deal-killer.

There is a fixation on what rates are doing.   A fixation on what rates will be in the future and what rates were in the past.   I™ve heard potential home buyers tell me, œI™m not sure I want to buy now because rates are ¼ percent higher now and I think I™ll wait. I say,  œWait for what?   I say let™s not look at the rate but instead concentrate on what that rate actually represents ¦ your monthly payment.

Let™s look at what an interest rate move of ¼ percent really does to a $200,000 mortgage.   Say a 30-year interest rate at 6.00 percent œjumps to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable?   No.   The payment on a $200,000 loan œjumps by about $32 a month!

Now let™s get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64.   Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it™s hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it’s been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It’s time to act.

Are rates important? Sure they are.   But are they the end-all?   Heck no.   Interest rates over the past few years have been in a very tight range, with few major swings.   Just remember what interest rates represent, your monthly payment, and pay less attention to the headlines.

For more information, contact us at:   www.NathansonBrothers.com

BEWARE of the 11 Deadly Mistakes Many Home Sellers Make

If you make a mistake when you sell your home, you stand to lose a LOT.  If you’re like most people, your home is very likely your most valuable investment.  Even a single mistake can prove very costly.  Selling is harder than it seems.  Even in a hot market, there are many homes that don’t sell for one reason or another.  If you make one of these common mistakes, you could find yourself wondering what has gone wrong.When you sell your home, you’re in direct competition with other home Sellers in your area.  Avoid the most common mistakes made by other Sellers, and you’ll stay a step ahead of the competition.

1. NOT HAVING A PLAN:  Deciding to sell your home is a BIG decision.  It’s very important to set out in writing the reasons that are motivating you to sell your current home.  Every decision you make, and every step you take is crucial in helping you get what you want, in the time you want, with the fewest hang-ups possible.  That’s why you need a plan.  You should ask yourself, “Why am I selling my home, what do I want to accomplish, and in what time frame?”  For example, if you have a growing family, and need more space, you might have more time to get your house sold, and less urgency to sell, than if you were moving to a new state due to a job transfer.

2. FAILING TO PREPARE YOUR HOME FOR SALE:  In the competitive marketplace, you need to show your house at its best.  Your home should be in “move-in” condition from the first day it’s listed.  Buyers love homes that are bright, fresh and clean (and they will often pay a premium for a home that is already in great shape before they move in)!  We are GREAT at seeing a home through a Buyer’s eyes!

3. OVER IMPROVING:  While clearing out clutter, cleaning, and making repairs are important ways to get your home ready for sale, undertaking a major project could cost much more money than you would recover from the sale.  Some major repairs, however, like replacing a roof, should be done if they are needed, because doing so brings your home up to selling standards.

4. SELLING IT YOURSELF:  You’ve just made that BIG decision:  “Let’s move!”  Now the confusion, fear, and maybe even PANIC starts to set in!  “How much is the move going to cost?  Could I save some money by just selling it on my own?”  It sounds so easy, doesn’t it?  Just put a sign in the yard, sit back, and then pick and choose from all the offers that magically appear.  But, we all know that nothing in life is that simple.  And since selling on your own involves MAJOR financial and legal practices, it’s ANYTHING but simple!  In almost every case, we can NET you (not gross, but net) more than you can net on your own.

5. CHOOSING THE WRONG AGENT:  Don’t list your home with an agent just because they say that they can get you a higher price than anyone else, because they sent you a Christmas card every year since you moved in, or because you used them when you bought your home 20 years ago.  The best way to set your price is with a well-researched market analysis.  Agents who promise to get you a higher price are just trying to “buy” your listing.  They’ll tell you what you want to hear, just to get your business.

6. OVERPRICING:  What’s the best way to make sure that your home sits on the market?  Overprice it.  Make sure to ask for more than any home has ever sold for in your neighborhood.  By setting the price too high, you turn away the best prospects for your home.  An overpriced property will not sell, and will most likely become devalued over time as it becomes stale on the market!  We can do a Comparative Market Analysis (CMA), and help you set the best price for your home.

7. HANGING AROUND DURING SHOWINGS:  Do you want the Seller of the house you’re looking to buy to watch over your shoulder as you look inside their kitchen cabinets?  Probably not.  So, why would you stay around during showings?  During showings, you should try to leave the house if at all possible, although it isn’t necessary for you to leave the home every time an agent makes an appointment.  However, when they do arrive, take a walk outside, or if the weather won’t permit, go to one corner of the house, out of earshot, so the Buyer feels comfortable making comments about your home to their Agent.  It is important for you not to be in the house, if at all possible.  If you must stay in the house, let the Agent handle it, be courteous, and don’t force conversation with the Buyer.  They want to inspect your home, not pay a social call.  Oftentimes, Buyers don’t feel comfortable with the Sellers home, and just rush through without paying much attention.  Be cautions in talking to the customer – the one thing you may want pointed out about your home may be the one thing the Buyer isn’t too keen on.  Casual remarks that you feel are harmless could possibly cause the Buyer to eliminate your home.

8. ODORS:  People are offended by a house that stinks of dirty diapers, cigarette or cigar smoke, or dirty animals.  If you’re going to put your home on the market, and you have kids, animals, or are a smoker, make sure you have your home cleaned top to bottom.  If you’re a smoker, stop smoking in the house, and make sure to have the rugs and curtains professionally cleaned.  On the day of a showing, make sure your animals are crated.  Let fresh air in.

9. LIMITING ACCESS TO YOUR HOME:  If people can’t get in to see your home when they want to, they’ll never make an offer.  Using a key safe / lockbox has been shown to increase the number of showings by over 30%.  You should give your agent nearly free reign to create a timetable of showings that will meet the needs of most Buyers.  Flexibility is the key, and while that means you’ll have to stay on top of the housekeeping, you will probably sell your home faster.

10. LETTING YOUR HOME GO STALE:  In a Buyer’s market, where there are more homes available than Buyers to purchase them, it’s not unusual to have a home sit on the market for 6 months or even a year.  In a hot Sellers’ market, homes sell quickly.  If it doesn’t, it may appear “stale” in the eyes of Brokers and active Buyers. To some Brokers, a stale home means it can be bought at a discount.  Some Buyers may perceive that there is something wrong with your home.  Rather than letting your home grow stale on the market, consider taking it off for a couple of weeks, and then re-listing it at an adjusted price.

11. FAILING TO RECOGNIZE A GOOD OFFER:  EVERY offer is worth responding to, even if the Buyer is several thousand dollars below your asking price.  The message you send back is encoded in your counter-offer.  If you come back even $100 lower, you suggest to the Buyer that you’re willing to entertain a serious offer, and that the current offer won’t cut it.  By not responding at all, you risk annoying the Buyer by not playing the game, and they might just move on to the next property.  What is a good offer?  An offer that either comes within spitting distance of, or exceeds, the minimum price you’d be willing to accept for your property.  Recognize that, and you’ve come a long way towards selling your home.

When you put your home on the market, you don’t want any unpleasant surprises to pop up that could cost you the sale of your home.  By having an understanding of these 11 potential problems, you’re arming yourself against future disappointment.  If you have questions about how to avoid these, and other potential problems, all you need to do is contact us at:   http://www.NathansonBrothers.com

TOP STORY: Keller Williams Offices Shine On Industry Surveys

RISMedia Power Broker Report and Survey

Every year, RISMedia and REAL Trends release two of the real estate™s most comprehensive surveys: the RISMedia Power Broker Report and the REAL Trends 500. Both surveys rank the largest residential real estate brokerages in the U.S. based on both transaction sides and sales-dollar volume, and these reports are frequently used as referral tools and are referenced by thousands. This year, Keller Williams stormed onto the lists with a very strong showing.

KW offices dominated the Power Broker Report “ with more offices listed in their top 700 list than any other franchise brand.   The survey also named Keller Williams Realty as the industry leader in terms of number of agent teams.   And, 102 KW offices were listed in the Companies to Watch section “ making up 55% of the total list!

As for the Real Trends 500, which lists the top 500 brokerages in the nation, Keller Williams Realty had the second highest amount of offices listed both transaction sides and sales volume, among the top franchise brands.

Even further proof that it’s always a great day at Keller Williams!

To find out more about these lists, visit RISMedia™s Website or REAL Trends™ site.

For more information, please contact us at:   http://www.NathansonBrothers.com