where to buy in this market

With a buyer's market, you can be overwhelmed with all your choices if you are planning to buy a home now. How do you determine where to live in Orlando?

If you plan on living here for 5 to 8 years, don't worry! The market will be rebounding back, and the concern about your home having value won't be a problem. But if you have to sell in the next couple of years, what steps should you take to help your home sell quickly?

1. Look for good neighborhoods. Even if you don't have children, you should consider the school districts. Better schools means the neighborhood will be more in demand.

2. Don't buy in the boonies. Gas costs over $3 a gallon, and people will be looking for neighborhoods that are near town. Closer to work=less gas.

3. Look at planned communities. Although the HOA fees are higher, the neighborhoods are well maintained and there are a lot of amenities.

If you want to talk about specific neighborhoods, let me know! You can e-mail me at audrey@audreybutlerhomes.com

Concerns for selling existing homes

When I was listening to Howard Clark on talk radio yesterday, he highlighted the recent news about new home sales statistics vs. existing home sales. Did you hear the news? The latest reports show that existing home sales are down 13%, but that new home sales from builders are down twice that percentage.

Besides the trauma that home builders feel, it has an impact on the homeowner who is currently trying to sell their home in this market. Unfortunately, existing home sellers can not equally compete against a home builder. He/she is able to offer incentives that the existing seller cannot. Also, they can drastically lower the price to avoid bankruptcy and prepare to fight another day.

Unfortunately, I am starting to see the impact on my current homeowners that have listed with my company. With the last 2 agents that I spoke with to get feedback on what their clients thought of my listings when they showed them this week, both said that their clients were leaning towards the new homes because of the incentives being offered.

Lesson to buyers: bargains to be had in new homes!

Lesson to sellers: reiterate how long it took for your punch list to ever be completed by the builder!

for more information, check out: www.audreybutlerhomes.com

Is your house "so not hip"?

Here are the recent trends that are no longer "hot" in the housing industry, according to Realtor Magazine:

McMansions

the cold look of modern

formal dining rooms

carpeting

junky foyer or coat closet

granite counter tops

Is your house "hip"?

Here are the latest home trends as reported by Realtor Magazine:

Cozy, small homes on a big lot

earth colors (brown, green)

Informal living spaces

exotic hardwood floors

mudrooms

marble, limestone and concrete (yes, concrete) kitchen counter tops

tomorrow: What is NOT in......

Moving on up.....

Since houses are such a great deal right now, does it make sense to "upgrade"? The National Association of Realtors suggests that you answer these questions:

1. How much equity do you have in your home? Although you can get a home for a good price, that means you have to sell yours for a good price, too. To make a profit on your current home, it is best to have equity in your home to justify selling it.

2. Has your income increased? A bigger paycheck is needed to cover the bigger house payment, closing costs, and moving expenses.

3. Does your neighborhood still meet your needs? With young children you need to consider the schools they will be attending in a few years.

4. Can you add on or remodel? Your yard has to be big enough, and you may not want the headaches of remodeling.

5. How are the interest rates? Make sure your payment will not increase significantly.

Reprinted from REALTOR Magazine Online, 2005.

Some things to consider when purchasing.....

It's easy to call a "for sale" sign posted in the yard and ask the price....but that is not the only number you should consider...

1. What are the taxes on the home? Most likely they will go up when you purchase the house.

2. What are the utility costs? Have you figured them into your future budget?

3. How old is the roof and the appliances? You may have to repair or replace them, sooner than you expected if they are old.....

4. What was the price of the comparable sold properties in the neighborhood?

5. What is the home insurance payment going to look like?

These are just some of the questions to ask when making a purchase.....let a realtor give you the special treatment, and get these answers, and many more, for you!

You have got to be kidding me....

Today I was listening to the radio, and there was a commercial talking about a couple purchasing a home. It was a re-enactment of a true story, and it went something like this:

They had bought their first home, were planning to close on a Monday, marry on the next Saturday, and move in after their honeymoon. So far, so good......then the problems started....After their mortgage broker had their loan package for 45 days, he called on a Friday to say they could not close on the following Monday. He called his fiancee, and she told him to call a real estate attorney. After the call, the problem was resolved by the lawyer, and they closed on Monday.

The commercial then encouraged listeners to call a real estate attorney when purchasing a home. ........Wait a second.........

1. The mortgage broker had the loan package for 45 DAYS and couldn't close on the scheduled date?!?! A seasoned real estate agent can work with reputable, experienced mortgage brokers and can close a transaction in mere days----some as quickly as 48 hours.

2. Where was the real estate agent?!?! Why hire a lawyer and pay a lot of money (remember, lawyers cost at least $200+ an hour)? A Realtor can insure that the mortgage will be ready for closing, and as a buyer's agent, does not require the buyers to pay a dime!

3. Also, the lawyer was called once there was a problem....where was the experienced person who can help you find a good deal, negotiate an incredible price, and can take you through all the necessary steps to buy a house....was an inspection done? Does the house have termites? Mold? A good real estate agent is experienced to handle all kinds of problems, and has the contacts to insure they are handled properly.

Now, I am a lawyer and can appreciate the need for legal representation. A real estate attorney is on retainer by our brokerage----we do not practice law. However, why pay legal fees when you can get greater service for no cost?

Who do you trust for homebuying advice?

My friend Sara at the office shared the following today:

Los Angeles economist Gary Watts gave a talk to the Orange County California Realtors where the main message was - keep news about housing in perspective. The popular press has called an end to housing for some time, says Watts:

"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000." Business Week, 1969

"The median price of a home today is approaching $50,000 ... housing experts predict price rises in the future won't be that great." National Business, 1977

"The golden age of risk-free run-ups in home prices is gone." Money Magazine, 1985

"A home is where the bad investment is." San Francisco Examiner, 1996

Property is always a great long-term investment, and can benefit some in the short-term. Talk to a qualified Realtor to know what is going on in an area, and to learn what the media doesn't know yet.....

why you need a realtor

I know--ha ha--a realtor explaining why you need one of us. Yet it seems odd that people regularly go to their accountant for finance and tax questions, their lawyer for legal questions, and their doctor for medical questions. These are all specialized fields, with unique terms, rules, and areas of expertise, just like real estate. What do Realtors offer?

1. Real estate transactions are not easy. A real estate consultant can help you navigate legal contracts, give expertise on the pricing with statistics and research, and help you should a crisis during the process occur.

2. Transactions take a lot of time. Houses stay on the market for an average of over 90 days right now. Realtors spend every day learning the market, marketing, and networking. A lot goes on behind the scenes that is valuable. Once the property is sold, that is just the beginning of the process. Many things have to happen to get the property to closing.

4. Objectivity is needed when buying/selling. Home often symbolizes family, rest, and security--it is a very emotional undertaking. It is the biggest purchase a person will ever make. Having a concerned but objective 3rd party helps you keep focused on the right issues.

5. Market knowledge is necessary to price the home competitively. If you are contemplating selling your home, you may know what one or two homes nearby have sold for, but you don’t have the access to the market knowledge to adjust pricing.

6. Representation in the home selling process is key. Have an agent handle criticism of the house. As a trained professional, a Realtor is more attuned to the buyers’ needs and able to highlight the home’s features that have the most appeal to each buyer.

7. Real estate agents can provide trusted mortgage financing advice. That includes assessing a buyers’ ability to afford the property and help them locate the best places to obtain financing. Agents are also more experienced in prequalifying buyers so that they will not make an offer on a home they cannot afford.

8. Realtors know how to negotiate and overcome objections. Balancing offers and counteroffers, as well as handling many of the contingencies that usually accompany real estate transactions, can be frustrating or frightening.

9. Are you sure the transaction will close? Many think that once the purchase agreement is signed, the work is over. Many things are still needed, including: home inspection, termite inspection, title insurance, building permits for improvements, and so forth.