Archive for Selling A Home
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.
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.
11 Reasons to List Your Home During the Holidays
Thinking about selling your home? Here are the top 11 reasons to list now.
1. People looking for a home during the holidays are more serious buyers.
2. Serious buyers have fewer houses to choose from during the holidays.
3. Homes often show better when decorated for the holidays.
4. Buyers can be more emotional during the holidays.
5. Buyers may have more time to look for a home during the holidays.
6. Many people want to buy before the end of the year for tax reasons.
7. January is traditionally the month for transfers.
8. Families may want to move by January for the new school semester.
9. You can still restrict showings during your personal family events.
10. You can sell now, but delay closing until early next year.
11. By selling now you have an opportunity to buy during the Spring, when many more homes are on the market.
Bottom Line
By listing now, you may have fewer actual showings, but more qualified and motivated buyers. You have less competition, resulting in a quicker sale and a better price for you. Contact Team Bohannon at Coldwell Banker to learn how you can get 5%-15% more money for your home (813) 979-4963.
Think Foreclosure is your only option…Think Again!
Owe more than your home is worth? Struggling with rising payments? Facing unforeseen circumstances? Need to move on to a new chapter? You are not alone.
Thousands of Tampa homeowners are facing the same tough challenges every day. Now more than ever, there are steps you can take to avoid foreclosure. You need guidance, confidentiality and someone who understands the serious choices you are facing about your home, your family, and your life. The wrong decision might make it impossible for you to repair your credit or purchase another home for 5-10 years. Foreclosures, short sales, and mortgage modifications can have vastly different impacts upon your future.
If you would like to speak with a Tampa Realtor who understands these difficult choices, please do not delay. You have options, and you do not need to go through the process alone. As Certified Distressed Property Experts (CDPEs), Realtors at team Bohannon provide FREE information that compares and contrasts ways to avoid foreclosure. Call today at 813-979-4963
Florida CDD Costs Impact Sales
Are community fees hurting sales? Most planned communities in Florida have CDD fees, Home Owner Association fees, or both. While the value of homes in Tampa has decreased 25-50%, neighborhood CDD fees have not decreased. A $200 per month CDD fee may have been acceptable when a home was valued at $400,000, but it might become an objection if the same home is now worth $300,000. The combination of property taxes, CDD fees, and HOA fees can put monthly payments out of reach for some home buyers. On the flip side, most CDD neighborhoods have newer homes, more amenities, stronger enforcement of deed restrictions and tighter security. Some communities even include phone, high speed internet, cable TV and alarm monitoring services.
What is a CDD?
There are over 600 Community Development Districts (CDDs) in Florida, including 116 in the Tampa Bay area. Florida law allows for the establishment of Community Development Districts to fund infrastructure needs and neighborhood amenities. A CDD has the authority to issue tax exempt bonds at favorable rates and spend the proceeds on developing and improving a neighborhood. CDD funds pay for building utilities, roads, water, waste/sewer, schools, conservation areas, streetlights, and bridges. Additionally, many communities build amenities such as parks, club houses, swimming pools, tennis courts, trails, golf courses, security gates, etc. CDD bonds are repaid through an annual property tax assessment divided amongst the residents of a community, usually over a 20 year period. As homes are built, residents eventually take control of the CDD governing board. CDD fees allowed developers and builders to defray upfront expenses and offer homes at lower costs, at least initially.
How Much Are the Fees?
Most planned communities in the Tampa Bay area have CDD fees and HOA fees. The amount that a Tampa Bay homeowner pays toward the CDD usually depends upon the lot size, and the fees very by community. For example, a 90 foot wide lot might have an obligation of $150-$300 per month, while a 50 foot wide lot might pay $80-$100 per month.
What is the problem?
While Tampa Bay home values have declined by 30%-50%, the CDD fees remain fixed. Consider a home that was worth $500,000 at the peak of the market. In Tampa’s hardest hit Tampa neighborhoods, the same home may be valued at $270,000 today. If a potential home buyer puts down 10%, the principle and interest payment would be $1304. Since the home is located within Tampa city limits, last year’s property taxes were at estimated at $5656. While we expect taxes to decline next year based upon the drop in property values, a buyer must qualify at the current tax amount of $471 per month. The CDD fee on this home is a rather high $3837 per year ($320 per month). Since the fees are paid as part of taxes, a home buyer would need to be able to qualify for the extra $320 per month added to the payment. The county property tax plus the CDD would be $791 per month, while the mortgage principle would be $1304, for a total of $2095. If Home Owner’s Insurance is $200 per month, a borrower would need to be able to qualify for a monthly payment of $2295. A consumer with an average debt load would need to have an income in the $80,000-$100,000 range to qualify.
What can be done?
The long term solution might be to re-finance the CDD bonds for additional years at lower rates, but the bond market is experiencing turbulent times. For the near term, if an individual home owner wants to make their home more marketable, they should consider paying off their portion of the CDD bond. A one-time payment of $10,000-$15,000 might make the home the only one in a neighborhood without a CDD bond fee, and would make it more attractive to buyers. For a homebuyer, call Team Bohannon today for strategies to maximize your choice and purchasing power.
Sanctuary on Livingston
Located just North of Tampa in Lutz, the Sanctuary on Livingston is gated community of fabulous homes on lots of at least 1 acre. What is happening with the real estate market in the Sanctuary on Livingston?
To see the data, charts and graphs, check out our Sanctuary on Livingston Real Estate Market Report that shows statistics on listings, contracts, and recent closings. The report shows list-to-sales price ratios and the absorption rate. The Sanctuary on Livingston Real Estate Market Report contains colorful charts contrasting Available Listings – vs- Contracts Pending, Sold Listings -vs- Expired Listings, Days on the Market (DOM), and Average Sale Prices. To see homes for sale in Sanctuary on Livingston, click Sanctuary Listings. For more information, contact the Realtors who have sold over over 4000 homes in the Tampa Bay area – Team Bohannon of Coldwell Banker at (813) 979-4963.
Sanctuary on Livingston Listings
Wesley Chapel Estate Report
What is happening with the real estate market in Wesley Chapel? At the moment there are 417 single family homes for sale, with 17 of those being bank owned foreclosures and 189 being short sales. There are 287 homes under contract, with 34 of those being bank owned, and 179 being short sales. Thus far in 2009, 592 homes have sold/closed, or about 65 per month.
If you are curious about the real estate market in Wesley Chapel, see our new 4 page Wesley Chapel Real Estate Market Report that shows statistics on Wesley Chapel Listings, Contracts Pending, and Closed Sales over the past 6 months. The report shows average prices, list-to-sales price ratios and the absorption rate. The Wesley Chapel Real Estate Market Report contains colorful charts contrasting Available Listings – vs- Contracts Pending, Sold Listings -vs- Expired Listings, Days on the Market (DOM), and Average Sale Prices. To see homes for sale in Wesley Chapel, click here and zoom in to see homes or click the search tab to revise the search criteria. For more information, contact the Realtors who have sold over over 300 homes in Wesley Chapel – Team Bohannon of Coldwell Banker at (813) 979-4963.
About Wesley Chapel
Located in Pasco County just North of New Tampa, near the intersection I75 & I-275, Wesley Chapel is home to master-planned neighborhoods, top schools, new shopping, golf courses and amenities galore. Recent estimates peg the population around 45,000 residents. Newcomers have helped found burgeoning communities in Meadow Point, Seven Oaks, Lexington Oaks, Watergrass, Countrywalk, Saddlebrook, Villages of Wesley Chapel, Chapel Pines, Northwood, Brookside, New River Lakes, and other neighborhoods.
Lenders Are Reining In Short Sales
Short sales have been an important lifeline for many Tampa Bay homeowners unable to sell their homes at market prices. In fact, 30% of the single family homes for sale in New Tampa are short sales, while 46% of homes for sale in Wesley Chapel are short sales. Over half of the homes under contract in Hillsborough County are short sales. Many Tampa Bay homeowners have been willing to face uncertainties about time frames, deficiency judgments, and promissory notes in order to avoid foreclosure. For their part, banks have reluctantly and belatedly accepted short sales as a fact of life.
Economic calculations have historically made short sales a cheaper option for banks than foreclosure until recent government interventions. The FDIC has a program whereby your tax dollars will reimburse the banks after the first 20% of any future losses (FDIC Loss Sharing Agreements). These “losses” include all penalties and fees tacked on by lenders. As a result, delays in short sales and foreclosures can result in additional fees and higher FDIC reimbursements. The FDIC has entered into 53 loss share agreements with acquirers of failed banks. For single family mortgages, the FDIC reimburses the banks for: modifications, short sales, foreclosures, and charge-offs for some second liens. Many banks are beginning to view foreclosure as a more attractive option since government intervention has distorted market forces. While it is hard to fault business people for following the rules to earn a profit, the result of these government programs seems to be at cross purposes with the intended goals of helping the average homeowner.
Though the effort to re-capitalize banks may have been defensible, the effects of the stimulus are not working for many Tampa Bay homeowners. As Certified Disttressed Property Experts (CDPEs) who work to help homeowners avoid foreclosure everyday, we at Team Bohannon encourage you to be fully informed seek the advice of competent legal, tax and real estate professionals before contemplating a foreclosure or short sale. Here is a related Business Week story.
