Realogy CEO on the Outlook for Housing Market

Richard A. Smith, president and CEO of Realogy, appeared on Lou Dobbs Tonight on Tuesday, March 29 to discuss the outlook of the housing market.

What is your outlook?

Should I Stay or Should I Go - Part 3

By Guest Contributor Shane Howell, Sales Associate, Coldwell Banker Residential Real Estate, Coral Springs office

If your situation is one in which continuing to make the payments is becoming financially detrimental, you do not want to stay in the home, or the home does not suit your needs - you must understand you do have choices.....Let’s go thru a few more situations...

Owner Issue # 3: We’re retiring, we have no mortgage, we want to downsize, we want to wait for the market to comeback so we have more to spend:

My Response: Never hold up your life desires waiting on a market, especially when you have the means to just move on. We as sellers need to get over what our neighbors sold their houses for in 2010, 2009, 2008, 2007, 2006 - heck even what the neighbor got in January of 2011. By definition, every one of those sellers got a better price than you will. We are in a painfully depreciating market that will not just simply reverse course because you are now thinking of selling. What you need to do is sell today and make a great deal for yourself on a buy, to make yourself feel better. Do not hold off your life of fun in the sun for the extra stress of maintaining a bigger home while you watch it drop in price.

In each of the 3 stated examples, being held hostage by your home valuation is painful and confusing.

The Clash said it best though in regards to the trouble, “If stay there will be Double.”

Do you have any questions for me about the market or your current situation?

Higher Rent Looks Good for Housing Market

You basically have two decisions when it comes to living somewhere...you rent or own. In an article written by Rick Newman of U.S. News & World Report, he makes a good and vaild point on the sign to housing recovery. He says, "It's not usually welcoming news when the landlord hikes your rent. But for the housing market, rising rents may be one of the most hopeful signs in years."

He continues to comment that the markets for rented and purchased homes usually move in opposite directions. When the housing market is hot and more people are buying homes, rents tend to stay low or go down, because there are fewer renters. But when high interest rates or other factors cool the housing market, more people rent. Since it takes awhile for builders to add more units, the supply-demand mismatch drives rents up.

Research firm REIS estimates that nationwide, rents will rise an average of 3.4 percent in 2011, which is more than inflation or incomes are likely to rise. In cities like San Jose, Calif., Washington, D.C., Seattle, and New York, rents will go up by more than average. And in a few select neighborhoods, rent increases could exceed 10 percent.

And if rents are going up by more than inflation or incomes, renters will start to think about buying, which is just what the dilapidated housing market needs.

Many renters are the future home buyers of America, just as they always have been. Victor Calanog, chief economist at REIS, points out that about 65 percent of the roughly 1.1 million new jobs created over the last year have gone to young workers between the ages of 20 and 34. More than two-thirds of people in that age group are renters. So the rental boom is being driven by up-and-comers with fresh disposable income and more optimism than older workers facing an underfunded retirement or truncated career that has left them desperate to downsize.

As apartment costs go up, younger renters are likely to react the same way their parents did: by looking around for a better deal. And buying will look pretty attractive. Falling prices and low interest rates have driven affordability to the best levels since 1970, when the National Association of Realtors started tracking it. All the old reasons for buying instead of renting still exist: getting into a good school district once you have kids, enjoying a neighborhood that seems less transient than an apartment building, and doing whatever you want with your home instead of begging the landlord for permission. Plus, renters don't have to worry about selling an existing home that may be worth less than the mortgage.

Canalog also says it won't happen overnight, and a meaningful pickup in home sales will still require easier lending by banks, lower unemployment, and more confident consumers willing to commit to a big purchase. But rising rents are an important first step. So when the landlord comes calling, negotiate hard, but remember that he might be showing the way to a place you can call your own.

Do you rent or own? If you rent, is buying in your future, tell us why?

Should I Stay or Should I Go - Part 2

By Guest Contributor Shane Howell, Sales Associate, Coldwell Banker Residential Real Estate's Coral Springs office

If your situation is one in which continuing to make the payments is becoming financially detrimental, you do not want to stay in the home, or the does not suit your needs you must understand you do have choices.....Let’s go thru a few situations...

Owner Issue # 2: I’m underwater on my mortgage, the payments are difficult, the house doesn’t even suit our lifestyle anymore. I’m a solid working citizen and my credit is very good. If I sell, I am guaranteeing bad credit for myself.

My Response: Your situation is like millions of other situations going on with American families everywhere. Do not feel bad and do not be held hostage. Because I am firmly in the camp that housing prices will not be rising with any significance for many years to come, by definition your situation will stay this way concurrently. Of course if there is more income derived from employment etc., the stress and burden could be eased. In this economy we all know that can not be counted on. I suggest doing a short sale to stop the bleeding right here. If you risk staying in the home and risk being able to keep up the payments you admit to being difficult to make you are in danger of defaulting on a payment to any creditor down the road producing bad credit naturally.

We are finding that the stigma of bad credit is not that big of a deal anymore. We just came thru the Great Recession. You need to take advantage of the environment we are in. Banks are doing short sales (taking less at closing than is owed to them) for people. We are finding that if the short sale is the only blemish on your report the hit might last for only 2 years. Your home equity will take way longer for that to come back. In the meantime and in between time you can rent a great home in your town, pay less on a monthly basis, and have your credit recover well before the housing market will. If you desire at that time you can buy a new home with a new mortgage a possibly even better prices....

Part 3 will be posted tomorrow.

“Should I Stay or Should I Go” Part 1

By Guest Contributor Shane Howell, Sales Associate, Coldwell Banker Residential Real Estate's Coral Springs office

“Should I stay or should I go now? Should I stay or should I go now? If I go there will be trouble.... And if I stay it will be double..... So you got to let me knoooooooow... SHOULD I STAY OR SHOULD I GO?”

The Clash - Should I Stay or Should I Go?

The title of this blog post is a question plaguing millions of homeowners. Should they stay in their current residence or should they sell it and move? The reason this is such a tough decision for owners lies in their purchase price and date, and the complexity of the problem.

Over 50% of mortgages are underwater in South Florida. We are down from the peak of about 58% in terms of housing prices. When you add those two phenomenas together you have a very big mess as it pertains to home equity and people’s psyches.

When we homeowners are underwater with our mortgages or if the value of our home has dropped to a point where we are losing money, we feel trapped. We feel there are no choices or way out of the current situation. As The Clash wrote in the lyrics of their song - “If I go there will be trouble, and if I stay it will be double”....

Ok, so you are underwater or you made a bad investment. If your situation is such that you are financially fit enough to stay in the home, want to stay in the home & the home still suits your needs - then just stay put. Because the laws of supply and demand coupled with how Americans view homes and purchasing them now, by definition it will keep prices at best, at these current levels for the next period of time. You need to live somewhere and if the home is not a burden in anyway pay no attention to the housing market....

If your situation is one in which continuing to make the payments is becoming financially detrimental, you do not want to stay in the home, or the does not suit your needs you must understand you do have choices.....Let’s go thru a few situations...

Owner Issue # 1: I have equity in the home at current fair market value, but if I sell I will “lose” money.

My Response: You already lost the money. The house does not need to be sold for you to feel the effects of house price depreciation. Any loan you want based on your home value will be at current fair market value. Being that we are in a depreciating market, you are in danger of losing the equity left in your home if you do not sell now. That might well put you underwater on your mortgage, making your options even more painful and difficult. There is not one investor who has not lost money on a deal at some point. Usually there are plenty of small losses for good investors. It is the smart investors who cut their losses before they get too big and unmanageable. SELL WHEN YOU CAN, NOT WHEN YOU HAVE TO!

Part 2 will be posted tomorrow.

Generation X to Lead Housing Recovery?

According to National Association of Homebuilders, young families and adults ages 31 to 45 (32% of the population) are most likely going to lead the home buying recovery.

The Gen Xers are said to have strong opinions about what features they want, including:

• A large lot in a suburban development
• An open floor plan
• A separate tub and shower
• Extra storage space

In addition, 70% of Generation X buyers said that they pay $5,000 more for a “green” home, and they expected newer homes to already have these green technology features. They are also willing to pay for upgrades like dark wood cabinets and a fireplace.

If you are a Gen X buyer, what features are important to you?

Miami Beach – You Should SoBe Here!

While it’s true that Miami Beach enjoys a well-earned reputation as one of the most enticing vacation spots in the world, the city and the immediate surrounding area are home to a large permanent, year-round population. People from all walks of life find the lifestyle, cultural amenities and cosmopolitan environment here just as appealing as do the millions of visitors and vacationers who flock here every year.

Business professionals, entrepreneurs, food service and hospitality employees, entertainers and a host of other people enjoy the never-ending sunshine, ocean access and vibrant social scene found here all year long. If you have never visited or have only spent a short vacation stay in Miami Beach, here are a few facts you may not know:

• Median age: 39
• Population: 88,065
• Demographics: 53 percent Hispanic, 41 percent white, 4 percent black, 2 percent other. About 19 percent of the households are Jewish.
• Medium household income: $27,322
• History: The city was incorporated in 1915.
• Design: The Art Deco Historic District in South Beach – the largest collection of Art Deco architecture in the world – is on the National Register of Historic Places.
• Total housing units: 46,194 (14 percent have children under the age of 18)
• Geography: Miami Beach is located on a barrier island between Biscayne Bay and the Atlantic Ocean. The Bay separates Miami Beach from Downtown Miami. The city covers 19 square miles.
• Neighborhoods: The city is made up of 15 distinct neighborhoods, including South Beach, South Pointe, Bay Shore, Venetian Islands, La Gorce, Normandy Isles, North Shore and Nautilus, among others.
• Fun winter fact: Miami Beach is one of the few U.S. cities that has never recorded snow or snow flurries in recorded weather history. This item alone could account for a large number of northern transplants!
• Play: The island of Miami Beach is home to 10 parks and recreational centers, including the Scott Rakow Youth Center ice rink.
• Gay rights: In 2009, Miami Beach passed a revised Human Rights Ordinance that strengthens enforcement of already existing human rights laws and adds protections for transgendered people, making Miami Beach’s human rights laws the most progressive in the state. Miami Beach residents have been able to register as domestic partners since 2004.
• The Arts: Each December, the city hosts Art Basel Miami Beach, the sister art show to the Art Basel event held each June in Basel, Switzerland. It combines an international selection of top galleries with a program of special exhibitions, parties and crossover events featuring music, film, architecture and design.
• On Camera: Miami Beach has been the backdrop of numerous TV shows and movies, most notably The Jackie Gleason Show, The Bellboy, Goldfinger, Miami Vice, Scarface , The Birdcage and Bad Boys.
• Stormy city?: Although Miami Beach has been indirectly affected by some large storms in it’s history, the city has only been directly hit by a major hurricane once in recorded weather history – Hurricane Cleo in 1964.

If you are thinking about relocating to the Miami Beach area, you owe it to yourself to learn as much as you can about the housing options available here. Right now, prices on single family homes and condominium residences are extremely favorable, and recent sales are showing impressive growth. According to the latest numbers released by the Miami Association of Realtors® and the Southeast Florida Multiple Listing Service, February 2011 existing single family home sales in Miami-Dade County increased 21% over February of last year, while existing condominium sales jumped 58% over the same period.

Don’t let the opportunity to live the good life on Miami Beach pass you by. Contact one of our local area real estate experts and let us help you find the perfect property to match your needs.

Sources: U.S Census, City of Miami Beach and University of Miami.

Florida credit scores fall

According to Creditkarma.com, the credit scores of Florida consumers fell in February, as reported in the South Florida Business Journal.

The average Florida credit score in February was 656 – ranking the state 32nd in the nation. That’s down from 662 in the same month last year. That should not be a surprise, as the state has suffered from high unemployment and foreclosures.

Massachusetts residents had the best credit scores, with an average of 684. Mississippi residents had the worst scores, averaging 631.

Looking at categories of debt, Florida consumers got deeper in the hole in two areas, but reduced their burden with two other types of loans, CreditKarma.com reported.

Florida residents’ student loan debt averaged $27,967 in February, up from $26,997 a year ago. Auto debt increased to $15,277 from $14,803 over that time.

Yet, Florida consumers reduced their average mortgage debt to $164,670 in February from $173,798 a year prior. Their average credit card debt was $7,234, down from $8,303.

Florida’s Still Growing by Double Digits

Over 2.8 million new residents relocated to Florida in the last decade, increasing the statewide total to 18.8 million residents, according to census data released March 17. The state’s 17.6% population growth – for the seventh straight decade of double-digit gains – far outpaced the national 9.7% growth rate in the last decade. The census statistics also reveal almost 1.7 million new homes were constructed over the past decade, for a total of 8.9 million.

How has the population increase affected the housing and job markets in your community?

Couple Wipes Out $70,000 in Debt

We all wonder how we can just save a little more and spend a little less. A couple in Maine managed to erase $70,000 in debt and also put some money in the bank.

As one begins to manage their finances and plan for important life decision like putting a down payment on a home or lowering a mortgage payment. We all wonder how we can do this a little better and smarter. Maybe we can take some tips from this couple who was paying off their debt and saving, so they could get ready to start a family.

Here's how they did it as explained in an article from Yahoo.com:

How did you do it? We traded in the new Honda Civic that we had bought two months before for a used Jeep Cherokee, and we sold our other car. We canceled our cable and got a cheaper cell-phone plan, and we budgeted only for necessities and $25 a month each for spending money. We found better deals on homeowners and auto insurance.

Surely a strict budget can't account for everything. We took on extra work to bring in more income. In my job as project manager for a video-on-demand company, I was paid $40 more a day to work on-site with cable companies. So I traveled a lot and worked 70 hours a week. My husband, who is a performing artist, was doing Web and graphic design on the side. We made $140,000 in 2006 and lived on about $40,000 of our post-tax income.

Did you get any help? I read every personal-finance book I could find. And I called personal-finance radio host Dave Ramsey during his show for advice. I had enough money in my bank account to pay off our last loan — we owed about $23,000. But I was due to have a baby in December, and I didn't want to part with that money. He suggested we keep the savings in case we needed it for medical bills.

Have you saved and paid lately? Do you have any tips or advice for someone wanting to?

Florida foreclosures at a 46-month low

According to RealtyTrac, Florida’s foreclosure activity hit a 46-month low in February, with 13 percent fewer properties receiving a foreclosure filing than the month prior and 65 percent fewer than a year ago, reports the South Florida Business Journal.

February’s activity was 71 percent less than the state’s peak of 64,588 foreclosure filings in April 2009.

Despite this improvement, the 18,760 properties in Florida with a February foreclosure filing was still the nation’s second highest.

But, foreclosure declines seen in Florida and across the nation likely have to do with the fallout from last year's allegations over robo-signing and document fraud, which still have many lenders carefully inspecting paperwork and procedures.

“Foreclosure activity dropped to a 36-month low in February, as allegations of improper foreclosure processing continued to dog the mortgage servicing industry and disrupt court dockets,” RealtyTrac CEO James J. Saccacio said. “While a small part of February’s decrease can be attributed to it being a short month and bad weather, the bottom line is that the industry is in the midst of a major overhaul that has severely restricted its capacity to process foreclosures. We expect to see the numbers bounce back, but that will likely take several months. And monthly volume may never return to its peak in March 2010 of more than 367,000 properties receiving foreclosure filings.”

Late last year, Bank of America Corp., JPMorgan Chase & Co. and Ally Financial temporarily halted some foreclosures while they investigated their practices. But, they have since restarted foreclosures.

Americans Still Believe in Homeownership

Homeownership is still considered an integral part of the American Dream by the vast majority of Americans, according to the Allstate-National Journal Heartland Monitor Poll released March 18.

Owning your own home — ranked second only to raising a family — was ranked one of the most critical parts of the American Dream, according to survey respondents. While only 35% of respondents expect their financial situation to improve this year, nearly 90% said they would buy their homes again, even among those whose property values declined. 70% would also advise a friend to buy a home as a long-term asset. 75% said it’s still possible to achieve the American Dream, which the poll defined as the ability to advance as far as their talents will take them and live better than their parents did.

Have you noticed a change in property values and stability in your neighborhood or community as a result of homeownership rates?

Plantation Groundbreaking For Green Home

Contributed by Dori Longhini, Manager, Coldwell Banker Residential Real Estate, Plantation Lakeside office

On March 3, 2011, I attended the groundbreaking ceremony to celebrate the first prototype Green Dream Home in our area, located at 480 NW 78 Ave., Plantation, FL.

The Mayor of Plantation, Rae Carole Armstrong was there along with the builder and her contracting partners to dig the first few shovels of dirt getting this project on its way.

The builder is Lisa Synalovski, who founded the company with a dream of constructing sustainable green homes for families that would be healthier to live in and cause less damage to the environment than traditional construction.

Lisa has spoken at the Plantation Lakeside office sales meeting regarding protecting the environment with this type of construction and her passion for her work is highly contagious.

Her entire team of subcontractors share her passion for green, sustainable construction. They utilize best practices relating to their area of expertise throughout the project, which ensures compliance with certified green standards.

They are striving to build an exceptional dwelling incorporating sustainable building practices to protect our environment.

We are excited to watch this home progress from the ground up and will keep you postedon it’s progress.

Cash-in refinancing could help homeowners save

Thinking of cashing out some equity when you refinance your mortgage? Sure, that used to be what millions of homeowners did when they needed extra money. But now get ready for the post-boom, post-crash trend that's really hot: Cash-in refis -- the complete opposite of cash-outs.

"It almost sounds un-American," jokes Frank Nothaft, chief economist for mortgage giant Freddie Mac. After all, Americans have grown accustomed over much of the past two decades to tapping into their equity -- pulling out a chunk of cash and adding to their debt load -- when they refinanced their mortgages. "Almost nobody thought of putting money back in," he says.

Cash-outs hit their highest level of popularity during the wild appreciation streaks in the early and middle years of the past decade. In mid-2006, just before home values began deflating across the country, the rate of cash-outs hit 88 percent, according to Freddie Mac, which monitors refinancings quarterly.

This meant that nearly nine out of 10 refinancers whose loan files were sampled by Freddie Mac increased the size of their mortgage balance by at least 5 percent. It was the heyday of the pile-on-more-debt mind-set -- cash me out, I can't lose on my real estate -- that came crumbling down in 2007 and 2008, when home equity holdings shrank drastically and painfully.

Read the full Washington Post article by Kenneth Harney

Picky first-time buyers losing out on great housing deals

Kenneth R. Harney, Washington Post writer, questions if first-time homebuyers are being picky, picky, picky!

Are today's first-time home buyers passing up great deals because they insist on flawless "move-in ready" houses requiring little or no changes - even at the starter-home price levels at which shoppers traditionally have been willing to factor fix-ups and renovations into their offers?

Or are they simply reflecting market realities? They see record inventories of houses sitting unsold, and they may not have the money, time or inclination to do fix-ups after making the purchase.

Large numbers of real estate agents consider this a significant and perplexing issue, one that's having a negative effect on the housing recovery. New research suggests that they may be on to something. A survey by Coldwell Banker Real Estate of 300 first-time buyers found that a startling 87 percent said that "finding a move-in ready home is important" to them.

A posting about fussy buyers on the 203,000-member "Active Rain" online real estate network in late February drew strong support from agents nationwide. Holly Kirby Weatherwax, an agent based in Reston, who wrote the original blog post, said in an interview that some shoppers are so picky that they walk out of well-priced houses solely because of relatively minor imperfections such as:

• The kitchen appliances are by different manufacturers.
• There are no granite countertops - even though the house is a modest-priced starter home.
• A carpet needs to be replaced, or the color doesn't match their furniture.
• Wall colors are "wrong," such as white, when for today's tastes, they should be a warmer hue.

Billionaires List

Here is a list most people wouldn't mind being on...the annual Forbes list of the world's billionaires. Moscow is the now home of the most billionaires, 79, topping former No. 1 city New York, now with 58. In Florida, Forbes lists 27 billionaires. China and Russia now have more than 100 billionaires apiece, while India added 55 and Brazil 30. Topping the list of Florida's billionaires is Micky Arison of Carnival Cruises with a net worth of $5.9 billion. The world's richest man remains, by far, Carlos Slim of Mexico.

The mega-wealthy who made the Forbes list could qualify to live in this lux pad listed by The Jills of Coldwell Banker Residential Real Estate in Miami. This home is only $60 million and some say LeBron James couldn't even afford it...but I think the people who made the list might find the price tag to be very easy to swing.

What Coldwell Banker listing would you love to buy if you were a billionaire?

Hooray for Hollywood…Florida, That Is

Contributed by Ingrid Carlos, manager, Coldwell Banker Residential Real Estate Hollywood office

Visit us on Facebook: Coldwell Banker Hollywood, FL

With the gorgeous weather, beautiful beaches and a historical downtown that we have to offer, it is no wonder that so many flock to our beautiful city of Hollywood in Florida each year. Hollywood’s population makes it the twelfth largest city in Florida.

Within its 29 square miles, there are 6 miles of beautiful beaches. Hollywood also boasts Florida’s only oceanfront Boardwalk. The Boardwalk is a 2.5 mile brick-lined promenade that lets walkers, joggers and bicyclists enjoy dramatic coastal views along with the nostalgic feel of a main street thoroughfare lined with seaside shops and restaurants.

Named an “All-America City 2007” by the National Civic League, Hollywood’s special appeal has been recognized with numerous other national honors including its selection as one of the country’s “100 Best Communities for Young People."

Just minutes from the beach, is the Downtown District featuring the spectacular 10 acre urban ArtsPark at Young Circle. Listed on the National Register of Historic Places, Downtown Hollywood is the backdrop for year-round festivals, street markets and entertainment.

Some other fun facts about Hollywood, Florida include:

• Hollywood was founded by visionary planner Joseph Wesley Young in the early 1920s and officially incorporated on November 28, 1925
• The city was devastated by the September 18, 1926 hurricane
• Hollywood Memorial Hospital opened in February, 1953
• From a population of about 23 thousand in 1955, Hollywood grew to over 67 thousand by 1965
• In 1958, the Diplomat Hotel opened, providing temporary residence to many celebrities, entertainers, and dignitaries
• The Seminole Indian Reservation, a politically independent entity, is within the corporate limits of the city
• Hollywood is a built-out city
• Hollywood Beach was named one of the "Best Beaches for Families" by Fodor's Travel Guides in 2009
• The movies "Body Heat", “Midnight Cowboy” and 'Marley & Me” shot scenes here, just to name a few

$100 Bathroom Makeover

If you are looking to add a little pizzazz to your old tired bathroom, but money is a concern, here are a couple of quick and inexpensive tips that Bill and Kevin Burnett found in Inman News.

Two really inexpensive things you can do is paint and regrout. You can do the job for around $100 and some elbow grease.

First, the grout.

Some of the things you will need to do are: give the walls a good scrubbing, check the caulking at the joint where the wall meets the tub, regrout with unsanded, bright-white grout, recaulk the wall-tub joint and apply a grout sealer to retard moisture and inhibit staining.

Second, the paint.

The fun part of painting is selecting a color scheme. The rest is work. Since your bath is mostly white, it's a blank canvas. Because the floor tends toward yellow, think about complementing it with pale yellow paint, which tends to warm up a room and provide a calming effect. A lighter shade can create the optical illusion of a larger room.

If you can afford it, consider updating the shower curtain or shower door with a new model. Other nice touches if your budget allows are new mirrors, light fixtures, towel bars and faucet.

Do you have any other quick bathroom suggestions to get it sparkling?

A key to the future: Home ownership

Buyers and renters agree home ownership matters in latest NAR survey

A significant majority of today’s homeowners and renters agree owning a home is a smart long-term decision. According to a survey released by the National Association of Realtors, 95 percent of owners and 72 percent of renters believe over several years it makes more sense to own a home.

The American Attitudes About Home Ownership survey reported a majority of home owners and a strong percentage of renters “agree” or “strongly agree” that owning a home provides a healthy and stable environment for raising a family and that it helps them meet long-term financial goals. In addition, 93 percent of owners surveyed would purchase a home again.

However, owners and renters do not agree on everything. More than half of owners reported feeling very or extremely satisfied with the overall quality of their family life. Only one-third of renters reported the same level of satisfaction. According to Emerald Coast Association of Realtors, homeowners also report higher levels of self-esteem and happiness when compared to renters.

Sixty-three percent of renters reported they are at least somewhat likely to buy a home at some point in the future. Out of that group, young adults (18-29 years old) have the strongest aspirations to own a home.

Do you have a strong desire to own a home? Tell us why?

Read the full article contributed to The Log by the Emerald Coast Association of Realtors

Mortgage Minute, Income Tax Returns

Contributed by David Caporini, Sr. Mortgage Advisor, Coldwell Banker Home Loans

Tax Return Filing Date Information

Depending upon when the Income Tax Return was filed, the following documentation is required.

Between January 1 and April 18, borrowers who have not yet filed the prior year’s tax return must have the following:

• Previous year’s year-end profit and loss and year-to-date profit and loss
• Previous two years’ tax returns, all schedules, including business returns if applicable.
• Standard documentation e.g., W-2s, written VOE, most recent pay statement, etc.

Between April 18 and October 17, borrowers who have not yet filed the prior year’s tax return must have the following:

• Copy of the filed extension with any tax payments made.
• Year- end profit and loss statement
• Previous two years’ tax returns and all schedules, including business returns if applicable.
• Standard documentation e.g., W-2s, written VOE, most recent pay statement, etc.

After October 17, borrowers must have the following:

• Most recent year’s tax return (a year-end profit and loss statement will not be accepted)
• Current year profit and loss
• Standard documentation e.g., W-2s, written VOE, most recent pay statement, etc.

Transcripts

Frequently, tax return transcripts are not available from the IRS until 6 to 8 weeks after a borrower files returns. When transcripts are required, if the borrower has filed tax returns but the transcript is not yet available for those returns:

• Evidence the transcripts were requested but not available from the IRS
• Transcripts for the previous two years.

In order to use income from the newly-filed returns when the transcript is unavailable, the previous two years’ transcripts should be reviewed for consistency of income. If the borrower is self-employed, the information from the transcripts should be used in conjunction with the income calculation.

A call for clarity at the closing table

A call for clarity at the closing table - Do buyers really know what they are signing?

According to Tom Kelly in an Inman News article, a big piece of the current mortgage mess can be traced to the fact that borrowers were hit with loan presentations that seemed too good to be true. Mortgage money was easy to obtain, and some lenders raced to sign up as many customers as they could and pocket the loan fees. They didn't really care if the borrower could actually afford the loan they were signing.

The prevailing philosophy was that if a borrower - regardless of age, income or nationality - got behind on mortgage payments, home appreciation would bail them out and provide the cushion to refinance the loan. That is no longer the case.

One of the biggest groups hit by the attractive yet misleading loan programs were "last-time buyers." These older consumers were not familiar with the terms or the plethora of loan programs available. These folks had no need, nor interest, in researching new loan terms and conditions because they had no intention of moving. But suddenly something happened - perhaps an accident or injury that required that they leave their family home and purchase a residence that better suited their new needs.

Another vulnerable group was first-time buyers, including many immigrants who were not able to understand the language let alone the real estate and mortgage jargon.

The bottom line is that many borrowers - in all groups - do not clearly understand loan documents and are afraid not to sign. Some have concerns about losing their loan lock; others don't want to appear ignorant in front of a spouse or escrow professional; while still others simply want the process to be over and done.

What do yout think?

Miami New-Condo Sales Rise While Other Markets Fall

According to an article by Marilyn Alva in Investor’s Business Daily, the new-condo boom struck louder in Miami than it did in other markets and fell hardest there when the thunder stopped.

Now the area stands out again. Its new condo market is coming back stronger in sales and pricing, though it's a fraction of its old self.

Thank all-cash buyers from Venezuela, Argentina, Brazil, Canada, Europe and other locales. They see Miami's luxury condos at discounted prices as safe havens for investment money.

Positive sales trends continue.

Of the top eight U.S. metro areas, Miami was the only one in 2010 to show volume gains in attached-home closings, mainly condos, according to data gathered by Hanley Wood Market Intelligence.

The other seven fell 5% to 37% as Miami rose 8%. New York dropped 13%, Los Angeles 20% and San Francisco 37%. Unit sales totaled 4,120 in Miami above L.A.'s 3,935 but that still pales vs. pre-crash years 2005-07, when 20,000 to 30,000 units sold each year.

The Miami metro figures cited by Hanley Wood include Miami-Dade, Broward and Palm Beach counties. Miami-Dade is almost 70% of the total, at 2,842 closings.

Florida's Statewide Open House Event

Save the date! March 26-27

If you're in the market to buy a home, you won't want to miss touring dozens of homes for sale in one weekend. Florida Realtors and Coldwell Banker Residential Real Estate will be hosting open houses as part of the second annual Florida Open House Weekend, March 26-27, 2011.

Sponsored by the 115,000-member Florida Realtors, it’s the largest open house weekend event in the nation.

If you're a serious buyer, this is a great opportunity to tour dozens of homes in one weekend, plus this is a real time saver! Maybe you haven't thought about buying now. Consider the affordable prices and low interest rates, plus great selections. It’s a win-win!

The Florida Open House Weekend coincides with the state’s historically active spring home-selling season and is culmination of Welcome Home Week, March 21-27 – a week-long celebration of the benefits of homeownership.

If you're home is on the market, work with your sales associate to host an open house during this special event. There is plenty of free advertising going on right now to help raise attention to all of the open houses taking place.

From the Panhandle to Key West, watch for blue balloons, featuring the Realtor “R” in white, denoting those homes that are part of the statewide open house campaign. Don't miss out on this great promotional event!

Florida's existing home, condo sales up in January

According to the latest housing data released by Florida Realtors, Florida’s existing home and existing condo sales rose in January. According to Florida Realtors, existing home sales increased 14 percent last month with a total of 12,151 homes sold statewide compared to 10,702 homes sold in January 2010. As compared to the previous year’s sales figure, January’s statewide sales of existing condos rose 36 percent.

Seventeen of Florida’s metropolitan statistical areas reported increased existing home sales. Read more here.

Have you noticed more sales activity in your neighborhood?

Luxury Properties Activity Increasing

By Guest Contributor Chris Evert, Sales Associate, Coldwell Banker Residential Real Estate, Fort Lauderdale South East office

Fort Lauderdale and surrounding areas have long been known as the playground for the rich and famous. And where people come to play, they often choose to live – even if it is just a part-time winter getaway retreat.

From the sprawling estates homes, the ocean access yacht owner’s homes to luxuriously appointed penthouses soaring high above the shores of the Atlantic, Fort Lauderdale offers a huge variety of residential options for the affluent buyer. Those who can afford to live in these palatial showcase properties are generally very successful entrepreneurs in the world of commerce, famous names in the entertainment business or world class sports personalities.

The Coldwell Banker Residential Real Estate office located on 17th street Causeway in Fort Lauderdale has the most successful luxury real estate salespeople in the entire area. They have been honored in Luxury Homes Magazine, Wall Street Journal, Previews, Florida Luxury Properties, Esplanade showcased in the Boston area, Enormo.com, and New York Times. Since 2005, this luxury sales force has successfully marketed over $1 billion worth of the Fort Lauderdale area’s most breathtaking homes and condominiums. The properties that are selling the buyers see value and great locations. While there are those who still feel that the real estate market has not yet reached its bottom, there are many indicators from several respected sources that there are savvy buyers poised to act once they locate their dream home, and the numbers seem to back them up.

In 2010, there were 24 single family luxury homes, over $68 million in sales sold in Fort Lauderdale thru this great office, while there were 29 luxury condos sold, over $24 million in the same time period with this same great successful luxury real estate sales force.

If you have considered living the life of luxury in Fort Lauderdale, the yachting capital of the world, with their renowned beaches, you now can discover the ultimate home or condominium for what may prove to be an extremely attractive price.

Hello Brazilians!

The international market might be changing. Canadians who were Florida's dominate friends when it came to spending and buying real estate now might be replaced with Brazilians.

According to an article published in the Miami Herald. When all the numbers are tallied for 2010, Miami-Dade expects to have rolled out the welcome mat for more than 500,000 Brazilian visitors who spent more than $1 billion.That would move Brazil into the top spot for international visitors, dethroning Canada, the perennial leader.

What sets the Brazilians apart is there are so many more of them and they’re really big spenders. For one, Brazil is Florida' top trading partner. President Barack Obama will visit Brazil during his first South American trip. Brazilians are also snapping up beachfront luxury properties and downtown Miami condos, investing in everything from real estate to Burger King, and shopping voraciously.

Have you been seeing an uptick in with Brazilian buyers in your market? What do you think about our new friends? Also, fun fact - Brazil will host the next World Cup in Brazil in 2014 and the 2016 Olympics in Rio de Janeiro.

Past Real Estate Trends Continuing Into The Future?

As we begin a new year, it is obvious we are still in a buyer's market. That shouldn't discourage owners from listings their home, but rather inspire them to get creative. It appears that there is no shortage of inventory in any given area across the country which can overwhelm both buyers &sellers. Now is the time to get serious and incorporate additional techniques during the time your property is on the market.

In an ezinearticles.com article, Darren W. Chow, gives a few recommendations that will go a long way all while separating you from the competition:

Paint: Sounds simple and makes a BIG difference. Take one room at a time and really take your time to do it right. Edging trim and evening the multiple coats are essential for a flawless look. Your rooms may not need a brand new coat of paint but take the time to remove smudge marks, nicks & scratches off the walls. If you do choose to totally re-paint...keep it neutral!!! No buyer wants to spend time and money on covering up your blood red accent wall. The idea is to have a potential buyer walk into your home and realize they don't have to account for a future project.

Eliminate Clutter: This concept may be hard for some sellers to swallow. But if you really want to sell you home you have to downsize your personal belongings. A potential buyer will walk into a property for sale and try to envision their life continuing there. It will help the envisioning process if they are not stuck on all the stuff you've accumulated throughout your time in the home. Remove items from tables and keep them simple with a lamp, tissue box and photo. Take some of your family photos off the wall...not all of them but most of them. Clear counters in the kitchen to show a buyer that your house offers plenty of counter space. This may not be easy but it is necessary. If the carpets have stains, remove them, replace them or offer the buyer a credit. This is especially important if you have pets or if you smoke.

Curb Appeal: This is a very important detail. Since your home will probably be all over the internet once it is listed for sale, it is extremely important that the outside photo draws attention and enough attention to get your house shown. Flower beds & hanging plants are acceptable as long as they are being well kept. Power wash your home if need be. Remember that a potential buyer sees the outside of your home first so it must attract them in to view the main living space.

Read more

iPad 2 unveiling

Are they? Aren't they...? The hype is here.

Apple is just launched the iPad 2, which has upgraded features to keep up with their tablet competition such as Google and HP. New features include:

• Front and rear facing cameras
• Bigger and louder speakers
• A thinner and lighter version to compete with the Kindle
• A5 chip for more storage and faster speed
• Retina display for sharper images and a less reflective screen
• Check out the NFC chips. With these, you can wireless pay for items at stores that support the system

At Coldwell Banker, "We Never Stop Moving". Watch for real estate iPad apps to come from this industry leader.

Apple sold over 15 million iPads in 2010, do you have one...what do you think? Are you eager to get the new one and what features are you looking forward too?

See 15 iPad's app must-haves

Lets talk tech! Tell us what you think!

Coldwell Banker on ABC's The View

Coldwell Banker Residential Brokerage teamed up with Michael Corbett and the ladies of ABC’s hit show, The View to talk about real estate.

Coldwell Banker Residential Brokerage's Atlanta sales associate, Julie Budden's Johns Creek listing highlighted in the national real estate segment.

The listing at 315 Loch Tay Way was featured on The View with hosts Joy Behar, Whoopi Goldberg, Elisabeth Hasselbeck and Sherri Shepherd on Tuesday, March 1, during a segment with best-selling author and real estate expert Michael Corbett titled “The Best Places in America to Buy a Home.”(click link to see video)

Corbett was on the national show promoting his new book titled “Before You Buy! The Homebuyer’s Handbook for Today’s Market.” The book offers practical explanations and easy-to-understand real estate information for first-time homebuyers and experienced homeowners and what they should expect when buying a home in today’s market.

During the segment, Corbett showed the laides of The View interior and exterior photos of homes for sale across the country and asked them to guess the listing price. When the property at 315 Loch Tay Way was shown, co-host Sherri Shepherd guessed that it was a $2.5 million dollar home and was amazed to find out that it was only a fraction of that at $499,950.

What would you have guessed?

The featured Johns Creek home listed by Julie Budden, sales associate at the company’s Dunwoody office, offers 5-bedrooms, 5-baths, a brand new saltwater pool and outdoor kitchen with built-in stainless grill, a media room, a wine cellar and a terrace level separate entrance perfect for an in-law suite.

Homes from Dallas, Louisville and Buffalo were also featured in the segment.

Neighbors to the north helping boost local home sales

Although this specific news story by Elizabeth Billingsley was done in Lee County, Florida, it could very well have come from any Florida county. The story is especially familiar in South Florida.

Are you seeing more snowbirds in your neighborhood?

Top 10 "green" real estate trends to watch in 2011

Earth Advantage Institute released its annual selection of top 10 green building trends to watch for the next 12 months, according to a recent article by Doug Bardwell, Commercial Real Estate Examiner. They came to these conclusions after polling a wide cross section of the business: builders, developers, architects, real estate brokers, appraisers, lenders, and homeowners.

From top to bottom, here are their top trends to watch:

1. Affordable green - with more readily available components, energy certified homes can now be seen popping up for less than $100,000, a price point once thought unattainable for green homes.
2. Sharing and comparing energy use. Earth Aid seeks to become the Facebook of energy savings, allowing individuals or businesses to share their energy savings accomplishments.
3. Outcome-based energy codes. Under outcome-based energy codes, owners could pursue the retrofit strategy that they decide is most effective for their building and its tenants, but they would be required to achieve a pre-negotiated performance target through mandatory annual reporting.
4. Community purchasing power. Group purchasing can result in additional 15-25 savings.
5. “Grid-aware” appliances fuel convergence of smart grid and smart homes. Expect appliances to start waiting for optimal times to run, decreasing peak usage.
6. Accessory dwelling units. With fewer people moving or building due to financial concerns, many have chosen to stay put in their favorite area and build accessory dwelling units (ADUs). These small independent units, which can be used for offices, studios, or in-law space, are the ideal size for energy savings and sustainable construction.
7. Rethinking of residential heating and cooling. The increasingly popular “Passive House” standard, for example, calls for insulation in walls and ceiling that is so thick that the home is actually heated by everyday activity of the occupants, from cooking to computer use.
8. Residential grey water use. Benefits include reduced water use, reduced strain on septic and stormwater systems, and groundwater replenishment.
9. Small commercial certification. To encourage more small commercial projects to go green, alternative certification programs have sprung up, including Earthcraft Light Commercial and Earth Advantage Commercial, which have found significant appeal through fully subscribed pilot programs.
10. Lifecycle Analysis (LCA). LCA for building materials will allow architects to determine what products are more sustainable and what combination of products can produce the most environmentally friendly results.