I have heard so much about this wind mitigation and then I sat at a closing and my client said that he had this FREE inspection done and it saved him over 30% on his insurance policy.  That did it for me.

I contacted Skye Tec(1-850-321-1706) and scheduled my home inspection.  They were at the house for 25 minutes, did a complete report and told me to submit it to the insurance company.

Windstorm damage is a very large portion of property damage and is very costly to insurance companies. The roof deck attachment is a major component to what is  causing  the damage. The loss of roof deck panels during storms is truly what has caused extensive damage to property.

In March 2007, Florida Financial Services Commission passed a rule requiring insurance providers to supply specific information on the value of individual wind mitigation measures based on age of the home, location of the property, construction methods and materials.  This rule should provided data for homeowners that will let them decide the cost and benefit of implementing wind mitigation measures.

Florida's property insurance companies were among the first to offer incentives for wind mitigation techniques. Florida's statutes have required insurance providers to offer incentives for wind mitigation practices which are shown to reduce property loss caused by wind storms.  For further details please refer to http://www.floridadisaster.org/mitdb/.

It is great to have a program to assist us in reducing on going costs of home owners insurance policies.

The drop in the interest rates should truly cause a motivator in our market place.  The prices in the Ocala, FL real estate market have been droppingcontinuously for the last eighteen months thus creating a great time to invest in a home, whether it is a resale or a new home.  The sellers are offering great deals to the buyers and those who are actively making offers are truly pleased with what is the outcome.  The title companies, banks and mortgage brokershave truly seen in upswing in activity in just the last week.

Appraisers are reporting that the current sale prices are reflecting the prices of the late 2004 home prices which bring us back to where they were priorto the fast climbing market of 2005.  We have a strong supply of inventory which should  make it easy to find a property to meet all buyers needs aroundthe Ocala area, including retirement communities and The Villages.

I strongly encourage today’s Buyers and Sellers to review the credentials of your Real Estate professional and mortgage counselor.  Experience will be worth its weight in gold as to the kind of transaction the Buyer and Seller will be involved in and the outcome.  Many inexperienced licensees stepped into the marketplace during the fast paced market and are unable to provide the knowledge and expertise to the consumer.

It has been proven in our economic society to buy on the low, hold for a while and then evaluate your investment. Now is the time many Buyers and Sellers have been waiting for.

Atten: Home Buyers:

More Attractive Home Financing Options

This program has many flexible features not found in conventional and FHA loans.  It is aimed specifically at rural areas.  All counties in Florida EXCEPT Broward, Monroe and Pinellas are totally eligible or mostly eligible for this loan.  To see if a property is eligible, simply type in the property address at http://eligibility.sc.egov.usda.gov/

Advantages

• No down payment required
• No Mortgage Insurance
• No cash reserves required
• No seller contribution limit
• No Prepayment Penalty
• Loan up to 102%* of appraised value allowed…not the lesser of the Sale Price or Appraisal
• Loan amount can include closing costs and pre paids up to appraised value
• No stated maximum loan amount; maximum loan based on repayment ability
• No First Time Homebuyer Requirement
• New and existing homes OK
• Fully amortized 30-year fixed rate loan
• No minimum credit score required…common sense underwriting allowed
• No minimum cash contribution required from borrower
• No limit on CLTV (combined loan to value) when soft second financing such as SHIP or HOME is used for closing costs and pre paids
• No limitation on source of funds for closing costs.  No seasoning requirement
• 100% gifted closing cost or down payment assistance permitted
• Non traditional credit may substitute for lack of traditional credit history
• No derogatory credit explanations required when credit score is 620 or above
• Qualifying ratios of 29%/41%....[29% PITI (principal, interest, taxes and insurance) to Income and 41% Total Debt to Income - however standard ratios may be exceeded with documented compensating factors]
• Automatic ratios waiver of 31%/43% for homes built after January 2000
• Conventional type loan packaging with only 1 extra form required
• Competitive rates (set by underwriting lenders) with attractive fee income

*Appraisal may be exceeded by amount of Guarantee Fee

Abbreviations:
SHIP – State Housing Initiatives Partnership: a state funded housing program
HOME- Federal Affordable Housing Program

Maximum Adjusted Gross Housing Income:

NOTE:  The GROSS income limits can be much higher than the ADJUSTED income limits shown in this table

 

If the projected dependable income exceeds the limits, certain adjustments can be made, such as childcare expenses for children age 12 years or younger and paid to someone outside of the family and one $480.00 annual deduction can also be taken for anyone under 18 or a student who is not one of the applicants.  Other deductions are also available – please see your loan specialist

Attention Home Buyers: 

FHA has revised its repair standards for appraisals of existing homes.  They have shifted away from an emphasis on the repair of minor property deficiencies to focus on repairs that go beyond normal wear and tear, cosmetics and minor defects.

What this means for you as a buyer:

• Faster approval time as long as other conditions (including safety) are met.
• Less repairs and shorter settlement time with the seller
• You will still be informed of cosmetic and minor defects on the prospective property through the appraisal process
• More options for you as a buyer to shop for a home with FHA lending advantages

For a detailed list of the revisions and requirements for appraisals click here.

For more information about FHA loans and other mortgage options contact:

Carolyn LaRoss
Alarion Bank
(352) 547-1230
Email: Carolyn.LaRoss@alarionbank.com

Sub-prime lending and the mortgage crisis, these terms have become more familiar to most of us through recent news headlines around the nation and the world. With so many different opinions swirling around, how do you separate the sensational stories from the truth?

The truth is that the once popular easy mortgages created to assist those with less than perfect credit are now proving the downfall of the entire industry. It is speculated that over $2 million homes will fall victim to foreclosure due to a sub-prime loan issue. Creating a domino effect, other sectors like the real estate and new development markets are affected. Failed attempts to protect their assets including loan revocation and record numbers of property foreclosures have not been enough to stifle the crash of some of the largest lending firms in the country. 

It is a rarity these days to hear about lenders issuing new loans at all to anyone without near perfect credit. Let’s face it. That is a very low percentage of the population. So what are most people to do? Lenders and brokers alike are already becoming savvy at finding ways to get around the current loan freeze. There are double loans, a two-loan package including a first and second fixed-rate mortgage. The first loan is issued for the maximum amount of $417,000 and the second, with a higher rate of interest, covers the remaining loan balance. Some lenders now offer a super piggy-back loan for creditors with excellent scores, similar to the double loan except the second loan is carried by the bank for an additional $1 million or more. Sometimes a buyer may find that seller is so motivated they are willing to let them borrow the down payment amount in order to close the deal.
 

By now, most of us have read the tragic story of the Pent family of Ocala, Florida waiting with belongings packed to receive the dreaded news that their home was foreclosed on. This struck very close to home for many Marion County residents as we realized that it could happen to any one of us at any time. Through no fault of your own you could find yourself in a situation similar to the one described above. A Mortgage Bankers Association survey reported that during 2005 and 2006 over $700 billion in interest-only ARMs and over $1.10 trillion of traditional adjustable rate and hybrid mortgages. The terms of the majority of these loans include a change from a reasonable introductory fixed rate to a highly inflated changeable rate in the year 2009, spelling more trouble ahead for many homeowners.
 

If you are thinking of selling, did you know we can provide a FREE estimate of your home’s value? Interested in purchasing a home in the Marion County, Ocala, Florida area, just inquire about our new home buyer’s package filled with useful information from the escrow process, to necessary inspections and how to receive the most property value for your money. Visit www.crystalmccall.com to learn more.

Contrary to popular belief, when selling your home its value is determined by one thing and one thing only - what a qualified buyer is willing to pay for it. No more and no less. Sure, many sellers will argue that their home has an insurance replacement value, or an appraised value, or a tax assessed value, but unless your insurance agent, your banker, or your tax assessor is willing to write you a check for the home - guess what? None of that matters. A home without a buyer has no value in the market place. Sure it might have a value to you the seller, and it might have a value to your banker, and to your insurance agent, and to your appraiser. But none of these people are buyers.

So here is the secret to pricing your home to sell - It's not what you think the home is worth that matters, it's what a reasonable buyer will think your home is worth that will ultimately determine if your home will sell.

Now you maybe thinking - Hey wait, if I left it up to a buyer, they would pay me as little as possible for my home. True, they would. But in the real world every buyer knows that you, the seller, have no obligation to sell your home at any price. To purchase your home the buyer will have to make you an offer you can't or won't refuse. One that will motivate you to pack up your Ken and Barbie collection, hire a local mover, and wave good bye to a home full of memories.

But here-in lies the trap that many sellers fall into (myself included), which is the mistaken idea that we can hold out for an inflated price and eventually the market will come to us. Wrong! Buyers are under no obligation to buy any particular home, and no amount of marketing, open houses, websites, or signage will motivate a buyer to purchase an overpriced home. Why? Because they can buy one of your neighbors homes for less! This reveals one of the most important considerations in pricing your home - Price VS Time.

Understanding Price VS Time

The age old dilemma that has faced buyers and sellers since the dawn of private property rights is a simple question: What is more important price or time? Believe it or not this conundrum underlies and controls every sellers decision to sell, and every buyers need to complete a purchase. For sellers this boils down to the need to sell within a set time frame or instead to hold out for the best possible price, and as you might guess, for buyers it's the need to buy within a set time frame or to purchase a home for the lowest possible price.

A seller who would like to sell for top dollar should be prepared to potentially wait longer for a buyer willing to pay a premium price. Like trying to sell ice during December, a seller might have to give the stuff away just to get rid of it, but if they wait long enough, say until mid-August when temperatures crest over 100 degrees suddenly that same ice can have real value. On the flip side, a seller who needs to sell quickly, and doesn't have time to wait, should expect to discount their price somewhat because of the limited time they have to expose their home to the market.

What's the difference? Timing!

Buyers are in the same boat. A buyer who has the luxury of shopping for a home over a long period of time can probably wait to find a bargain, while another buyer who must buy a home in the next few weeks will probably be willing to pay a premium. Again it boils down to price vs time. So you might ask yourself what is your highest priority - Selling quickly or selling for a higher price?

To be honest when I pose this question to my own clients they often smile coyly and then answer - I want both! The funny thing is that they aren't kidding! This sticky situation often reminds me of one of my first jobs after graduating high school, which was working graveyard at a local lumber mill. Like clock work every night, the foreman would come by to monitor my production. We called him Perry, which could have been his last name or his first name because he never clarified it. Over the roar of the machinery Perry would cup his hands together and yell "You need to put out more wood!" Finally after an especially tough day, I looked him back in the eye, and yelled back "Do you want quantity or quality?" Throwing his yellow hard hat down on the concrete floor and then kicking it for emphasis he snarled back "I want both!"

Like Perry, most of my clients want their cake with the icing generously slathered on top. Because of this, many homeowners will attempt to put the responsibility of getting both top dollar and fast sale on the back of their hired gun, the real estate agent. The result can be summed up in one word - frustration. Why? Because no matter how much a seller yells, screams, and kicks a real estate agent, they don't do miracles. This is why successful sellers understand that while a real estate agents job is to provide marketing, expert advice, and negotiating services, in the end they don't own the property. They don't make the final decisions on pricing. The seller does, and ultimately the seller's asking price will in large part determine how slowly or quickly the home will sell.

To frame this discussion in a different way, consider what you will do should you arrive luggage in hand at the end of your listing period and the home has not yet sold. At that point are you more likely to give it a little more time or adjust your price? I know - Neither, I'll just fire the agent! To be honest, this is exactly what many sellers' do, they fire their agent and reboot the marketing. Does it work? Sometimes it does, but often these sellers end up three months later in the same slow boat to nowhere. Successful sellers on the other hand take ownership of their pricing decisions by making a clear decision about which is more important to them, selling quickly or selling for top dollar.

Successful sellers have learned that to price their home accurately means they need to think like a buyer, they need to get inside a buyers skin and look at the world through a buyers eyes. For instance, imagine for a minute that you are moving to another area of the country, to a city that you are completely unfamiliar with. If you were faced with buying a home in strange city what would be your first step?

If you're like most buyers you would probably start online by viewing listings at websites like www.realtor.com or www.yahoo.com/realestate to get a general feel for local home prices. Next you might narrow your search down to a specific community or neighborhood by comparing utility costs, school reports, and crime statistics with other online tools like www.homefair.com or www.neigborhoodscout.com. Feeling good about your findings you might then venture out into the real world to begin viewing homes in person.

As a typical internet empowered real estate buyer you will look at an average of nine homes over eight weeks with the assistance of a real estate professional. By the end of your journey, like many buyers, you become so knowledgeable about the market that by the last showing you are able to guess, with reasonable accuracy, each homes listing price before your agent can even tell you.

So what happened here? As a buyer you went from a blank slate, with no impression of the market to having the ability to predict listing prices. A big leap sure, but this description is exactly what most buyers' experience. But this is only the build up, the next step for buyers who have found their dream home is to review a Comparative Market Analysis.

A Comparative Market Analysis is a report that compares a specific home, often called the "subject home" with other homes in a specific neighborhood. This analysis is then used to provide an anticipated sales price or price range for the subject property. Although not formally called an appraisal, the report provides a similar function by giving home buyers and home sellers a clear understanding of the market data that might affect their opinion of value. To learn more about using a CMA to help price your home talk to your local REALTOR®.

About the Author: Jim Remley is a speaker, author, and consultant. He is also an active real estate broker in Southern Oregon where he owns a network of eleven offices. Jim won the Rookie Instructor of the Year award in 2001 from Realty-U, the largest network of real estate educators in the nation. Jim is also the author of a large catalog of products as well as a personal coaching program. His new book, Make Millions Selling Real Estate, is due out from AMACOM books July 2005. To learn more about Jim please visit www.properformer.com or email him at jim@properformer.com.