Florida Panhandle Pre-foreclosure Filings 1st Quarter 2012

1st Quarter 2012 Florida Panhandle residential pre-foreclosure filings have more than doubled last year, as you can see from the graph above and the table below. Every county, except Escambia, had greater than 100% increase compared to last year. However, Escambia had the highest total number of filings this year at 433, followed by Bay at 428. This dramatic increase was anticipated as the government has recently struck a deal with the 5 largest private lenders to resolve some of the legal issues from previous fraudulent foreclosure filings. Hopefully, the lenders will be more willing and better equipped to do short sales and loan modifications than in the past. If there is a flood of actual foreclosures on the market, it will dramatically increase inventory and put a significant downward pressure on prices.

Information from Metro Market Trends

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

Extra...Extra...Added on to the commission!

Extra! Extra! Read all about it! I think we have all heard that saying, but I think it may have gotten twisted around a bit in the home buying and selling arena.

If you have ever bought or sold a home, you know that the agents and their brokerages all get paid out of the commission paid by the seller at the time of closing.  So that is usually two realty companies and two agents splitting that money.  Here in recent years, due to the tightening of the market, I have been seeing some brokerages adding "fees" to the sellers in addition to the commission they are collecting.  This is usually under the guise of an "administration fee" that is charged on every transaction above and beyond the commission they already get.  The real question I have is...why?  (though I think I know the real answer)  Well, they will tell you that because of the all the extra work, time, and liability it takes to do their job, they need this extra "fee".

I find it odd that other companies in the same area get by without charging this extra "fee" and still manage to keep up with the work load.  I also find it odd that some of these same companies also want to charge the buyers this "fee"...even when the buyers are being represented by their own agent.  Is it "wrong" (legally) to tack on this fee? No!  I am all for a company making a profit, so they can stay in business.

But I am also all for the free market and the power of knowledge.  An informed buyer or seller is a dangerous thing to companies that overprice their product or services.  You may be asking, What can I do to protect myself from this kind of thing?  First, hire an agent who is honest and has a good reputation.  Second, ask questions that help you understand the transaction and ALL the costs associated with that transaction. Third,  listen to your agent's advice: they are in the real estate market every day, and they know what is a normal fee-- and one that is a bit out of the ordinary. 

Grace and Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

First time home buyer want vs need....

 The first-time home buyer's wants vs. needs list is a tricky, or maybe I should say sticky, topic. After years of working with first-time home buyers, I have found that most seem to want to find their "forever home",  you know, the one they will be raising their 2.5 children in, and then retire in, and so on.  Is this really realistic in today's society?  I mean, statistics show the average family moves every three to five years. Yes, I know there is someone reading this right now that is saying, "well, we have lived in our home for the past 20 years."The question is, is that the norm? And the answer is no!  "So, what is the big deal Skip? I mean, what do you care if the first-time buyer buys a house that they can 'grow into'?"  Well, let's just say our first-time buyers buy that big home the can "grow into"--is it going to be more or less expensive to heat and cool? Or let's talk taxes--are they going to be more or less? We could go on, but you get the point. If they buy a home that is going to fit them for the next few years, they most likely will have a lower initial purchase price and a newer home (with less maintenance) that will fit their budget.  With the current market the way it is, they will also be taking advantage of historically low interest rates, coupled with competitive home prices.  These two factors put together should, in a few years, equal a nice profit for them to apply to their next home.

Grace and Peace.....

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

Skip, What I Don't Know Can't Hurt Me...Right?

Have you ever asked a question you already knew the answer to? As we ramp up into the new year I am once again reminded how bad surprises can be in the home buying and selling process. It seems to sound the same each time I list a home and ask the owners about the condition of the home: "Our home does not have anything wrong with it...that I know of."  You see, it is not what you know that will turn around and bite you; it is the things that you don't know about that will get you every time.  Knowledge is key here, and how do we get that knowledge? A home inspection!  Yes, I know, the buyers will usually do their own inspection a bit after they write a contract, but do we really want to wait until that point to find out that something really needs to be fixed?  Let's say you have your house listed and you decide to wait on the inspection. Lo and behold, you get a contract and the buyer's home inspection comes back with about $2000 dollars worth of things that need to be fixed...Ouch...deal falls through.  Could this be avoided? YES!  Listen, I know the home selling process can be expensive, so why would you throw out a tool that you could use in your favor in the selling process?  If a buyer is considering two homes, and one of the two homes has a home inspection that the sellers have gone through and done all the necessary repairs according to the report, and the other home does not, which do you think the sellers will favor?  Keep in mind, too, an inspection usually costs less than making a few extra mortgage payments because your contract falls through. Happy selling....

Grace and Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

     

Should I sell in '12?

SOLD

Cutting through the fat in 2012!  Ok, you're on the fence...should I sell in 2012, or wait it out because of doubt?  If you have to sell, then there is no better time than today, but let's just say you are thinking you could wait 'til the later part of the year, or maybe next year, to sell...so what should you do?   We need to look at your goals for selling.  "Wait," you may say, "what do my personal goals have to do with selling our home"?   If your goal, let's just say, is to move your family to a new home by June because of a job change or promotion, then your goals will drive your getting that home sold faster than if you are retired and just want to be closer to the grandkids.  So you need to take your temperature in relation to your motivation to sell.  We need to note here...usually your motivation to sell will help to determine how fast you sell, because your motivation will force you to be more serious about your price. 


Now let's just take a brief look at timing.  The natural "hot" season in our market is from late March to mid October. When you are ready to sell your home, you must have your home "IN" the market when the maximum number of buyers are in the market. This will allow you see the highest price in the shortest time, because you will have more buyers out looking at the peak or hot months.  Please keep in mind you and I have a common goal...get this home sold for the highest price in the shortest period of time.  

So, should you sell in 2012...
The Good: The market is poised to trend up in 2012, and with historically low interest rates, I predict this to be a strong year.      
The Bad: The Stock Market is still struggling abroad and here in the states, and gas prices are looking like they are on the rise, which affects consumer confidence...in turn keeping some buyers off the market this year.  

Grace and Peace...

Skip Geiser

(850) 221-6442

http://www.skipgeiser.com/

SkipGeiser@live.com

The Geiser Team with Main Street Properties

           

Listing vs. Selling in 2012!

"Skip, how do I go from having my home listed to getting it sold in 2012?" Wow, am I glad you asked!  I have been working with clients that have been ON the market in the past, but not IN the market. "Wait, Skip, what is the difference between on and in the market?" Being on the market is easy and painless, but being in the market is usually a bit more difficult and painful.  A few years ago, I could look at your homes' value and let you to build in a $5,000 to $10,000 buffer, then expect a buyer to come in and make an offer. Not today...today we have to determine your home's value and put your price right on that value, or maybe just below the true value.  Ouch! I know.  I know this is what you are saying right now, "I am NOT going to give my house away."  or  "I need to get X dollars out of my house".  Well, let's look at it this way...say 3 years ago you bought stock at $103 dollars a share, but today on the open market it is worth $93 dollars a share.  What price do you think someone will pay you for your stock?   $93 right?  But wait, if you say to your stock broker, "Man I really need $105 a share." or "I am NOT going to give it away."  What is he going to say?   The Stock is worth what the open market will pay, just as your home is also worth what it will fetch on the open market today.  "So, Skip, what can I do to get my home sold?"  Well, I hope your sitting down...here it is in a nut shell....PRICE it so it will sell!

"Ouch, Skip, you're hurting me."  Yes, I know it hurts, but you did want me to tell you the truth, and you do want your home to sell, don't you?  Listen, I could candy coat it here, but that would just lead you down a path that would have your home ON the market in 2013, and that is not what you or I want.  I could give you a long list of things like paint the front door, or pressure wash the driveway, but if we don't get the price right, all the other factors will never get the attention of the buyer that went to see another home that was priced right. 

Grace and Peace...

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties

                

The home of our dreams vs. the dump that has a low price!

How low can ya' go?

Skip, we have found the home of our dreams, and we have decided to offer 50K under what they are asking because it is a "buyers market"!  Let's ask a few key questions before we go too far...
1. Are the sellers close to the true market value?
2. Do the sellers hold a mortgage that will prevent them from accepting a low offer?
3. Have the sellers done improvements to justify their price? 
4. Has the seller gone through multiple price reductions, and when was the last reduction ?
5. If you were the seller, how would you react to your offer?

 "Hey Skip, isn't any offer is better than no offer?"....Yes!  I have heard this statement a lot with the economy like it has been in the last few years.  Any agent who has some experience under their belt will tell you that AN offer is better than NO offer; just keep in mind, this is a place to get the negotiations started.
"I have been listening to the media, and they are saying the deals are better than they ever have been in years past, so I think I should come in really low and get a steal of a deal."  Yes, I agree, so let's just take a scenario to illustrate my point...the sellers of the home you have fallen in love with have been reducing the price of their home with the fall of the market, and I show that to you by showing you their price drops over the time the seller has had the home listed.  I, as your agent, have shown you the Current Market Analysis which reveals the sellers have the price very close, or below, it's true SOLD value.  You also note that the home has a long list of upgrades like granite countertops, hardwood flooring, sprinklers, etc., and has been well-maintained, which does not seem to match the other homes you have been looking at in your price range. So now, you tell me, is the 50K under asking price offer a reasonable expectation on our part, as a potential buyer?  I would say no.  If you offer something that low, you should expect the seller to come back really strong on their original price, with the thought you are not a serious buyer.  If you want to come in really low on an offer, one way to shore up the seller's confidence in your offer is to increase your Ernest Money Deposit or EMD, which is usually 1% or $1000, to let's say $5000, which would make the seller think you were more serious and really capable of purchasing their home.  Make sure you have a proof of funds and/or a pre-qualification letter from your lender to show your ability to purchase their home. Keep in mind some of this is a mind game on our par,t and if we can stack the cards in our favor, we should.  This is a wonderful time to buy with interest rates so low and the home prices really low.  It has never been a better time to buy.  Just keep in mind you need all the facts to really get the best deal out there!

Grace and Peace...

  

 

Skip Geiser

(850) 221-6442

www.SkipGeiser.com

SkipGeiser@live.com

The Geiser Team with Main Street Properties