Thought You’d be Interested

Thought You’d be Interested. Just Sold

Sales in the Sarasota real estate market reach highest level in six years

Total property sales in the Sarasota real estate market hit 800 for the month of March 2011 – the highest level since September 2005 when sales started to decline. The other great news in March –  prices rose in double digits for both single family homes and condos from the previous month, pending sales were the highest since the real estate boom ended in 2005, and the inventory dropped to 5,501 – less than a third of the available properties on the market during the boom.

Read More at:  SAR March 2011 Stats

Another steep dive in foreclosure filings

The stranglehold on foreclosures tightened during March in Southwest Florida, with filings dropping 30 percent from an already slow February and by 75 percent from a year ago.The declines show the large impact on the local real estate market — which has been dominated by distressed properties for more than a year — of the ongoing robo-signing crisis that began in September.

In a new twist, the Federal Reserve, the Office of Thrift Supervision and the Office of the Comptroller of the Currency sanctioned 17 of the nation’s largest banks on Wednesday over “a pattern of misconduct and negligence” in residential mortgage loan servicing and foreclosure processing. Those on the list included Bank of America Corp., Citigroup Inc., Ally Financial Inc., JPMorgan Chase & Co., Wells Fargo and others constituting 68 percent of the mortgage market.

Read more at:  http://www.heraldtribune.com/article/20110413/ARTICLE/110419764/2416/NEWS?p=all&tc=pgall

Canalfront homes at half the ’05 price

Like Bird Key in Sarasota Bay, Country Club Shores on Longboat Key was a planned community. Developed during the 1960s by the Arvida Corp. to provide more homes on the water, it was built on dredged land in five phases.

There are no through streets, so the neighborhood is quiet — an obvious plus to its older residents.

But being situated on the southern part of Longboat has other benefits. St. Armands Key, with its shops, restaurants and night clubs, is just five minutes away. And, during season the residents don’t have to deal with as much traffic to get to downtown Sarasota as those living farther north on the barrier island.

The prestigious neighborhood is a haven for boaters. Most of the more than 400 homes are on the waterfront or deepwater canals, where private docks accommodate 30- to 40-foot vessels.

Access to the Gulf of Mexico is convenient, either through New Pass by Mote Marine Laboratory, or via Longboat Key Pass by Anna Maria Island.

There is also access to the beach on the Gulf of Mexico “across the street” — Gulf of Mexico Drive.

As one of the few neighborhoods of single-family homes on Longboat Key, Country Club Shores still has a vintage feel, although many of the original ranch-style homes have been restored or replaced. On the waterfront, two-story mansions now have a spectacular view of the Sarasota skyline across the bay.

The area is a mix of vacation homes and residences for mostly retirees and semi-retired people who work from home. If you see children and teenagers, they’re likely to be visiting their grandparents.

There are 35 homes listed for sale, ranging in price from $499,000 to $3.5 million.

At present, nine sales are pending.

Just as in a condo, where upper-floor apartments command higher prices, there is a pecking order at work here.

As one gets closer to the bay, the same house will cost more.

But while the area is considered prime real estate, it wasn’t immune to the downturn after the real estate boom.

Read more at:  http://www.heraldtribune.com/article/20110319/article/110319421/2107/canalfront_homes_at_half_the__price;jsessionid=92F485969F9ECE6B05A8DB5F81504292.m1?p=all&tc=pgall

What are sellers’ worst mistakes?

SEATTLE – April 13, 2011 – In a buyer’s market, sellers have little room for error when putting their home on the market, or they risk having their property linger. Help sellers avoid the following common traps.

1. Overpricing the home. Home values dropped considerably since peaking in 2006, but sellers still want to list a home based on what they paid for it. Eventually they realize their error and have to reduce their price, sometimes several times. In the past month, 23 percent of homes listed for sale on Zillow have reduced their price.

2. Relying too much on comps. Size up the competition currently on the market, not just the homes that have already sold. Evaluate homes with a listing price similar to the seller’s to see how well it stacks up against the competition – and how it can be differentiated.

3. Failing to take into account the home’s web appeal. A home that can’t sell itself on the web could have trouble selling itself in the real world, and photos are key. Include lots of high-resolution photos of the interior, including areas that home that buyers care about most, such as kitchens, living spaces and bathrooms.

4. Hovering during showings. Sellers shouldn’t be home for showings, but as a seller’s agent, neither should you. Lurking sellers or seller agents may make buyers nervous. Other real estate agents often want privacy with their buyers so they can gather true feedback about the house.

Source: “Six Common Mistakes That Home Sellers Make,” MSNBC.com (April 11, 2011)

Small do-it-yourself projects with a big payoff

KANSAS CITY, Miss. – April 13, 2011 – They make it look so easy, those do-it-yourselfers. They rip out kitchen floors, lay ceramic tile and install cabinets without any major accidents or irrevocable damage to their marriages.

Well, great for you. Yes, you’re winning.

Some of us lack the energy, patience and desire to commit to major home improvements. Yet, there are plenty of small-scale projects that offer big returns.

We surveyed some experienced real estate agents about budget – and time-friendly projects that can substantially enhance a home. Homeowners can tackle most of these tasks in a weekend, without much DIY angst or expense.

Susie Johnson, with Coldwell Banker Gundaker in St. Louis, says the key is to notice details.

“Dated light fixtures are a cheap fix,” she said. “When you walk into a foyer, you notice the front light fixture.”

Bathroom and kitchen updates are traditionally the top places to invest in a makeover that pays off.

Colleen Lawler, also with Coldwell Banker Gundaker, is a proponent of kitchen “jewelry” – eye-appealing hardware that instantly updates a room. “You can buy a box of 30 knobs that comes with a template,” she said. Current hardware adds a finishing touch.

In a bathroom, an older vanity can be stripped and refinished with some guidance from an expert at a paint store.

“We have had beautiful results with repainting oak cabinets,” Lawler said. By painting a vanity black and adding brushed nickel or oil rubbed bronze hardware, the cabinetry goes from looking circa 1990 to modern. “It’s a huge face-lift,” Lawler said. She recommends using a good-quality paint and spending time in prepping the material.

A simpler suggestion is to replace old towel racks or get rid of old brass doorknobs, she said. Even if the hinges are a darker bronze finish, new doorknobs make a big difference in some homes.

A more complicated task involves replacing the standard, builder-grade trim with upgraded floor molding, she said. It requires being able to miter the corners of the baseboard or use a standard corner block to fill the gap.

“Light fixtures, plumbing fixtures and paint are the top three things just about anyone can do or have a friend help them do,” she said.

Our staff tackled a few of our own DIY projects, ranging from an ambitious attempt to make over a bathroom vanity to using tape and paint to update a wall. We discovered the redecorating power of a can of spray paint and the stunning impact of adding mosaics to a patio.

For the novice to the experienced, there’s a way to feel the pride of fixing or beautifying your home – and doing it all by yourself.

© 2011 St. Louis Post-Dispatch, Aisha Sultan.

Survey: Americans still optimistic about housing

NEW YORK – April 13, 2011 – A sluggish real estate market hasn’t shaken the confidence of the public in how it views homeownership, according to a new study by the Pew Research Center. Eight in 10 adults (or 81 percent) say owning a home is the best long-term investment a person can make, according to the Pew study of about 2,000 adults conducted in March.

“Homeowners are not blind to what has happened to home prices, nor are they expecting a speedy recovery,” the Pew study finds. In fact, of the homeowners surveyed, about half said their home is worth less now than before the recession, while 31 percent said their home’s value has stayed the same.

Nevertheless, 82 percent of homeowners who said their home is worth less now still strongly or somewhat agree that homeownership is the best long-term investment a person can make, according to the survey.

The value of homeownership even continues to emerge on top when homeowners were surveyed and asked to rate the importance of four long-term financial goals. Homeownership and “being able to live comfortably in retirement” rated the highest – viewed as either extremely or very important by 80 percent of respondents.

Still, optimism about homeownership doesn’t mean they’re completely happy with their current home. Nearly a quarter of all homeowners surveyed said that if they had it to do all over again, they would not buy their current home. Most of the “buyer’s remorse” complaints were about the home itself or its location. Only 31 percent of those surveyed cited financial factors, such as the home losing value or their own changing financial situation.

Source: “Home Sweet Home. Still.” Pew Research Center (April 12, 2011)

Investors, foreigners cashing in on market

MIAMI – April 12, 2011 – With affordability at an all-time high, the number of investors and international buyers taking advantage of bargains has reached a record number in all-cash purchases – and some experts predict that number will only grow higher.

A record 33 percent of existing-home sales were made to cash buyers in February, the National Association of Realtors® (NAR) recently reported. The proportion of cash deals could hit 40 percent by the end of this year, predicts Thomas Popik, research director for Campbell Communications in Washington, which conducts monthly surveys of 3,000 real estate brokers.

“Lenders have only been willing to lend to the cream of the crop in terms of credit scores,” says Walter Molony, an NAR spokesman. “As a result, you’re seeing a depressed level of traditional buyers.”

But it’s not just investors moving in: Many of these cash deals are also coming from a growing number of international buyers. About 55 percent of international buyers paid cash for their U.S. homes, according to an April 2010 report by NAR.

The cash buyer advantage?

Cities where about half of all purchases were done with cash include Detroit, Miami, Las Vegas, and Phoenix, in which prices have dropped considerably and foreclosure rates remain high, says Oliver Chang, a housing market analyst with Morgan Stanley.

Short sales and foreclosures accounted for 59 percent of last year’s cash sales, according to a report by Morgan Stanley.

“You buy the house at a discount with cash. Then you flip it almost immediately to the first-time homebuyer who’s using a mortgage, simply because they were not able to buy at the foreclosure sale,” Chang says.

Lenders increasingly reject mortgage applications for foreclosed properties because appraisals are often too far below the agreed-upon price or the transactions take too long to close, says Popik. With tightened lending standards, cash purchases can provide buyers with more leverage and allow buyers to close properties more quickly.

Mike Simmons Troy, a Detroit real estate investor, says that if a house is listed at $40,000 and a buyer offers $35,000 cash, “nine times out of 10, the bank will take the cash.”

Source: “Cashing in on Bargains,” Detroit Free Press (April 10, 2011)

Home loan modification scam warning

TALLAHASSEE, Fla. – April 12, 2011 – Florida Attorney General Pam Bondi filed a complaint yesterday against a home loan modification company for allegedly requiring consumers to pay an upfront fee for services.

According to an investigation by the Attorney General’s Office, U.S. Mitigators, LLC, allegedly required consumers to pay an upfront fee of $2,100 before it would render services. Many consumers reported paying the $2,100 fee and an additional $399 application fee for services they never received. The Attorney General’s complaint against the company seeks more than $48,000 in restitution for consumers.

“Charging upfront fees for loan modification services is illegal,” says Bondi. “If consumers have been asked to pay upfront fees for these types of services, I encourage them to file a complaint with my office.”

Under Florida law, loan modification companies may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services before completing or performing all services contained in the agreement.

To file a complaint, consumers can call the Attorney General’s fraud hotline at 1-866-966-7226 or file online at http://www.myfloridalegal.com.

The Federal Trade Commission (FTC) has also issued rules concerning mortgage assistance relief services (MARS). For more information, visit the Legal Center on the Florida Realtors’ website.

© 2011 Florida Realtors®

Critics: New foreclosure rules don’t do enough

WASHINGTON – April 12, 2011 – New rules for the nation’s largest mortgage servicers haven’t yet gone into effect, but critics are already speaking out, saying the new rules fall short of really addressing foreclosure problems and helping homeowners.

In a settlement with federal banking regulators, new rules for mortgage servicers include requirements that servicers stop foreclosing while negotiating a loan modification, improve their processing systems, provide defaulting borrowers a single point of contact, and bring in a consultant to investigate complaints by homeowners who were foreclosed on because of foreclosure processing errors in 2009 and 2010.

However, Alys Cohen of the National Consumer Law Center says the agreements “do not in any way require the servicers to stop avoidable foreclosures, and that is what we need.”

Critics say the new rules need to do more to help homeowners who are trying to modify their loans and stay in their home.

In a letter to the regulators, dozens of groups – including the Consumer Federation of America and the Center for Responsible Lending – are calling for the withdrawal of the agreement in favor of “specific and protective measures regarding loss mitigation, account management and documentation.”

About 4 million homeowners face foreclosure or are near to it, and housing analysts worry that adding those homes to already high inventories on the market will depress housing values even more.

Meanwhile, a coalition of all 50 state attorneys general and the Obama administration are working on a broader settlement to change the foreclosure process and keep more homeowners in their homes. The settlement could include a multibillion-dollar penalty to banks. State attorneys general have also called for servicers to reduce the mortgage principal of struggling homeowners, a move the servicers have strongly resisted.

The current agreement with bank regulators does not “pre-empts our efforts,” says Attorney General Tom Miller of Iowa, who is leading the state attorneys general settlement.

Source: “New Rules for Top Mortgage Servicers Face Early Criticism,” The New York Times (April 11, 2011)