Archive for December, 2009
Why Buy Now – The Impact of Waiting
Business Week has an article that makes a case for buying now based on low interest rates. The article discusses the financial impact that interest rates have on the cost of buying and paying off a home. “Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed.” If you are waiting for Tampa Bay home prices to fall further, click here for the article.
Here is a quick excerpt:
You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.
If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.
What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime. full article.
New Tampa Real Estate Market Report
Curious about real estate market conditions in New Tampa (33647)? Check out our market dashboard with charts about:
- Listing Prices vs. Sold Prices
- Number of Listings, Contracts, Sales & Expireds
- Days on Market
Click New Tampa Real Estate Report for 5 charts and analysis.
Rap Video of New Tampa?
As 2009 comes to a close and we consider the 2010 marketing campaign, should we make a Gangsta Rap video of New Tampa that might go viral like this one about Northern Arlington? Funny, ironic and worth the click: http://bizy.be/QV2ZT
Did You Pick The Right Home? The Contract-to-Close Process.
Congratulations, your offer to buy the home was accepted - now what? Did you really pick the right home? Does your Realtor have a “Due Diligence Checklist” to help determine if this is truly the right home to match your needs across the four fundamentals of home buying? You need a proven process to ensure that you take advantage of every negotiation opportunity that arises during the inspection, appraisal and closing process. The goal is to confirm if this is the right home, reduce unpleasant surprises, and save you money by going way beyond what a traditional agent would offer.
Manage the Process
Once the home is under contract (in escrow), our team and system manage all the details. Using our tested Home Buying System, we coordinate the timelines, escrow, inspections, repairs, survey, warranty, appraisal, financing, home insurance, title and other aspects of the closing. There are over 125 steps, a multitude of variables, and several companies that must communicate and execute perfectly to close the transaction on time.
Fall Out Rate
National statistics show that 34% or more of transactions fall apart during the contract phase. While we cannot control every aspect and every company involved in the transaction, our system pro-actively manages the variables to ensure that you are buying the right home at the right price. When turbulence arises, you can have the confidence to know that we have encountered this situation before and have an alternate flight plan. Here are some examples of unpleasant mortgage surprises, but there are others for inspections, repairs and title issues.
Are you tired of agents who “wing it? Have you been left in the lurch before? Call today to experience a team with a repeatable business process that consistently produces raving fans.
Team Bohannon Moving Concierge
Are you looking forward to living in your new home but dreading the thought of packing? Moving to a new home can be a smooth or a stressful experience. To assist our clients, Team Bohannon has invested in the MaxAvenue Moving Concierge™. This value added service provides you with a personal moving advisor and offers direct access to a trusted network of moving experts.
The MaxAvenue Moving Concierge™ provides:
• Complimentary move management service
• Discounts up to 62% off van line prices
• Single point of contact
• Multiple, competitive estimates for client choice
• VIP service for a hassle-free move
• Personal assistance from moving industry experts
• Multiple bids from national moving companies
• Guaranteed Not-to-Exceed estimates
• Free full replacement coverage up to $75,000 with no deductible
• Significant time and money savings
• Peace of mind!
©MaxAvenue 2009
How to Use the MaxAvenue Moving Concierge™
Step 1: Contact
Initiate the call to the MaxAvenue Moving Concierge™ at 800.350.5418.
Step 2: Needs Analysis
Identify move dates, concerns, shipment profile and other important requirements.
Step 3: Educated Referrals
The proprietary Match, Track & Move™ system identifies the best van lines for your move.
Step 4: In-home Estimates
The MaxAvenue Moving Concierge™ assigns the best matched van lines to schedule free, in-home estimates.
Step 5: Van Line Selection
Estimates are audited by MaxAvenue Moving Concierge™ to ensure your needs are met.
Step 6: Manage the Process
Your concierge notifies the selected van line, confirms the details and verifies your VIP status.
Step 7: New Beginnings
Your concierge follows up with a satisfaction survey to verify the performance of the movers for future reference.
For more information on the MaxAvenue Moving Concierge™, contact Team Bohannon at Coldwell Banker (813) 979-4963.
The MaxAvenue Moving Concierge™ is a trademark of MaxAvenue® and is used with permission.
Home Buyers Beware: Avoid these 12 Unpleasant Mortgage Surprises
Don’t be left at the alter without a loan! The Tampa real estate market is seeing a high percentage of transactions fall apart during the contract process due to financing issues. One thing we have learned over the years holds true: “Promises and personalities do not ensure success, process does”.
To avoid the pitfalls below, Team Bohannon used a Home Buying System to ensure the lender has the processes, performance guarantees, and communication in place to protect against these 12 Unpleasant Mortgage Surprises.
- The loan program you were quoted is no longer available.
- The loan was not locked interest rate floated above your approved rate.
- The Good Faith Estimate doesn’t match the final fees.
- Closing Costs were not estimated based upon local customs.
- Neighborhood CDDs were not figured into closing costs.
- The home does not appraise for the purchase price.
- The appraisal is late.
- The loan isn’t approved on time.
- Unreasonable last minute requests for buyer documentation.
- Underwriters do not approve financing at the last moment.
- Contributions toward closing costs are disallowed at the last moment.
- The company goes out of business during the transaction.
- Key personnel leave the company delaying the approval process.
- The conditional loan commitment was mistaken for a full loan approval.
When a lender examines your credit, they are assuming that your credit score will not drop between initial preapproval and final underwriting. They are also assuming that you will not be making any major purchases such as furniture or cars in between contract and closing.
What steps can you take to avoid these issues? For starters, do not make the mistake of selecting a lender based solely on the interest rate or by passing acquaintance. As part of our value added services, we walk you though qualitative and quantitative comparisons of loan options for your new Tampa Bay home. While we cannot control every company and person involved in the loan approval process, our Home Buying System is designed to pro-actively manage all the variables that could signal trouble.
For the quantitative analysis, our system uses the a Lender Comparison Matrix to analyze the Good Faith Estimates (GFEs) from leading lenders. The LCM provides a detailed costs comparison that can help uncover hidden costs. This organized and systematic process helps remove the guesswork and select the best loan for your overall goals.
For the qualitative analysis, we focus on the track record and business practices of the loan officers and their lending institutions. Low interest rates are great, but can they deliver on time, without surprises, and will they call you back? Is the processor and underwriter based locally, or are you at the mercy of a far off processing center? How much knowledge and experience does that loan officer have? What are the chances the company will still be in business by closing, or the contacts will still be at the company?
Contact Team Bohannon at Coldwell Banker today at (813) 979-4963 for a information on obtaining the best loan.
What is a Real Estate Team? Why Should I care?
Who & What is “The Team”?
You might be wondering “what is a Real Estate Team”? Why should I care? Realtors who provide goodservice can expect to see business grow. Like any small business, there comes a time when the business grows to a point where one person can no longer do everything. At this point, Realtors must decide how to proceed: attempt to maintain service levels all by themselves, or hire a team. Traditional Realtors operate as solo agents, while others form teams – or quasi operating companies. Regardless if you select a traditional Tampa Realtor (solo practitioner) or a team, you will have one primary point of contact responsible for fulfilling your goals. Here are the differences below should matter to you:
A Real Estate Team, as run by Team Bohannon:
- has multiple agents working together
- has a staff to implement marketing plans
- has administrators oversee details between contract and closing
- has “specialist” for various aspects of the real estate business
- utilizes systems to achieve predictable results & service levels
- allows agents to grow “as a business” rather than “as a craft”
- pools resources and spend money on marketing
- has meetings, business process and accountability
- has employees, benefits, budgets, and financial planning
- ensures someone is available 7 day per week
- allows agents to achieve life/work balance.
- can do several things at once: show homes, implement marketing plans, provide feedback on showings, update a market analysis, handle negotiations, review inspections, follow-up on financing, meet appraisers, manage contracts, and attend closings.
Traditional Agent/Solo Realtor
- is kind of like a “one-man-band”
- can quickly become very busy and overwhelmed
- faces major time pressure to do multiple things at once
- has a challenge maintaining service levels at times
- must have diverse skills: sales, marketing, administrative, clerical, creative
- cannot realistically work 7 days a week, every week
- are more subject to burn-out
- will leave town and take vacations or be unavailable at times
- must do several thing at once: show “out of town” buyers homes, implement marketing plans, provide feedback on showings, update a market analysis, handle negotiations, review inspections, follow-up on financing, meet appraisers, manage contracts, and attend closings.
Using Systems Properly
We know that great systems poorly executed will fail to deliver results. We have learned a few lessons en-route to selling over 4,100 homes in the Tampa Bay area. We rely on a team approach to ensure our systems produce world-class service at every phase of the transaction. There are over 125 steps, exponential variables, and several companies that must communicate and execute in harmony to close a transaction on time. The team implements systems to coordinate the timelines, escrow, inspections, repairs, survey, warranty, appraisal, financing, home insurance, title and other aspects of the closing. It has taken years to assemble a team and align the right people with the right skills to run the system. If turbulence arises, you can have the confidence to know that we have encountered the situation before and have an alternate flight plan. The system and the team allow us to deliver a predictable level of service that you can feel confident in when recommending us to your friends and family.
The Extended Team: Business Management Team & Vendors
Every team has a coach. Although we have been in business for decades, we have found value in consulting a Business Coach for process audits, new ideas and continuing education. Our coach brings ideas from top experts in the real estate, marketing and technology fields from around the country. We discuss best practices and key books such as: The Speed of Trust by Stephen M.R. Covey. Our business management coach helps us keep the focused on building long term relationships that form the foundation of world-call service and durable competitive advantage.
As your Value Added Real Estate Experts in Tampa, we work closely with lenders, title companies, inspectors, movers and an array of home repaid vendors. We cultivate relationships with qualified vendors that are in alignment with our mission. We look for experienced vendors with high standards of performance. In some cases, we have negotiated special discount for our clients. We rely heavily on satisfaction surveys to monitor 3rd party vendor performance.
Call today to sepak with Team Bohannon at (813) 979-4963.
Why use a Realtor on New Construction?
Thinking about a brand new home? From starter homes to custom estates, the Tampa Bay area offers a great selection of home builders. Many people just wander into a new home model center to look, and we understand that. Before making such a large purchase, however, please consider the benefit of having an experienced agent working on your behalf at no cost to you. Team Bohannon can offer the inside scoop on the builder, on past negotiations, on neighborhood values, on factors impacting prices, and on competitive alternatives. Team Bohannon can help negotiate the best deal for your money, review contract terms and facilitate the smoothest possible closing. To search builder inventory and floor plans – click here. Upon entering a builder’s model center and registering, please tell the builder’s sales person that you are working with Team Bohannon at Coldwell Banker. Why?
The Inside Scoop for FREE
The prices might look good, but do you know the inside scoop? Is there a reason the price is so low? Could you be making a big mistake? Why not ask someone who has extensive experience in the neighborhood, and with the builder? Someone who knows the skinny on area builders, contracts, taxes, CDDs, HOAs, school boundaries, lawsuits, road construction, crime, insurance rates, sink holes, Chinese drywall, financing, inspection issues, appraisal issues and other factors that you might not uncover in a Google search.
Who’s Looking Out For You?
There are many excellent and reputable builders in the Tampa Bay area, but is the builder’s primary mission to be your advocate? If you work directly with the builder’s salesperson, then who is looking our for your interests throughout the selection, negotiation, financing, inspection and closing processes? You may want to have an trusted advisor who can help you throughout the transaction at NO COST to you.
No Cost
Tampa Bay area builders pay all Realtor commissions. Builders set aside advertising, marketing and sales budgets to compensate Realtors. Builders actively and enthusiastically want to work with Realtors, and the commissions do not impact the price you pay. You will not pay more if you work with a Realtor, and you may pay less because of negotiation skills and relationships.
The Right Home
Why not consult a FREE resource who can suggest communities that might not have been on your radar? When deciding between homes and upgrades, will you recoup the difference in costs when you go to re-sell? Why not maximize the selection of homes you have access to by asking someone who knows about homes not listed for sale on the internet? Why not leverage the experience and expertise of someone who has helped hundreds of happy homeowners find the perfect new construction, re-sale, short sale, or bank owned home?
The Right Price
Is the builder’s sales person offering you be best deal possible? Could you buy this home, or a better home in a better neighborhood for less money? How are you suppose to know? Are there other incentives that are available thorugh further negotiating? Why not ask a Realtor at Team Bohannon who does this for a living and who has negotiated hundreds of deals with builders? Why not insist on a Comparable Market Analysis of home values in this and similar neighborhoods? Going directly to a builder does not mean you will get the best home, the best deal, or the best advice.
Negotiation Experience
Might there be a better deal out there? Why not use a professional negotiator at no cost to you? Someone who has helped thousands of homebuyers purchase at the best price possible? Why not trust someone who can help you implement a winning negotiating strategy, navigate complex contracts and close the sale on time without surprises.
Avoid Pressure to use a Builder’s Lender
Many builders will offer incentives and closing costs assistance if you agree to use their lender, title company and/or other related service providers. This may or may not be a good deal for you. For example, the value of a 3% builder contribution toward closing costs can be offset by hidden fees or interest higher rates. Team Bohannon uses a Lender Comparison Worksheet to compare the Good Faith Estimates (GFEs) of multiple lenders to help discover the best scenario for you.
Legal & Closing Process
Real estate agents do not give legal advice, but after reviewing hundreds of contracts we can point out potential pitfalls and recommend clauses to protect you. We can help facilitate the inspection, financing, title, home insurance, and closing process to ensure a smooth transaction.
For more info on purchasing a new home, call Team Bohannon at Coldwell Banker today (813) 979-4963.
