Why use a Realtor

If you are buying, a Realtor will show you available homes matching your criteria. A Realtor can help you determine the right price of a property. A Realtor can serve as an emotional protection (buffer) between you and the buyer/seller. A Realtor is the difference between your property being "For Sale" and being "SOLD". A Realtor is the difference between receiving the highest price possible for your property and receiving too low a price. A Realtor will sell your house (on the average) at 16% higher than it would have had you done it on your own according to NAR statistics. A Realtor will save you days on the market. A Realtor makes sure you have a legally binding contract and complete the proper disclosures so you are treated fairly and you do not get sued. A Realtor is an excellent negotiator and makes sure you do not get eaten up in fees that reduce your bottom line. A Realtor has excelent relationships with lenders and can help qualify buyers. A Realtor will manage the hundreds of phone calls involved in selling and/or buying a property. A Realtor will develop a marketing plan to sell your property. A Realtor will spend money and effort in the sale of your home before he/she gets paid. A realtor will show you the flaws you don't see in your home so you can fix them rather than have no offers come in. A Realtor follows up during the transaction process to ensure the deal gets to closing. A Realtor represents your best interests. A Realtor will schedule all of your appointments. A Realtor is a real estate professional. A Realtor can reach a lot of buyers due to his/her targeted marketing methods and realtionships in the industry.
If you are still not convinced of the value of a Realtor, see what the National Association of Realtors has to say...click

Business Travel Tips

It's that wondreful time of the year, when we get to spend time with our families and take that well deserved vacation. While some of you may be able to get completely unplugged while you are away, some of you may need to bring you laptop or PDA along for the ride. For those of you that simply cannot leave technology behind, here are a few tips to ensure that your information remains safe while you check your e-mails, fine-tune that business proposal or just browse around the web either at the airport, your hotel room or an internet café.

Security Software: this may seem like common sense, but do not forget to update your anti-virus before you travel. Make sure your computer is password protected. Even a basic password can help protect your information if your device is lost or stolen.
While most wireless networks have some level of security, the more protection you have on your device, the better.

Keep it Simple: Take only what you need. Sometimes security can get very complicated at the airport and you may have to check you laptop. An alterante idea is to make sure that the hotel or the place that you are visiting has public computers and internet access. You can log onto your home or office computer using a remote server and a third party vendor, such as gotomypc.

Protect Yourself: Back up your data in case your laptop is stolen. Copy your essential files in a flash drive.
Hotspots: Software programs called packet sniffers can allow people to look at wireless transactions and capture the information being transmitted between the laptop and wireless access point. To avoid having someone hack into your system, turn off your bluetooth device and make sure your soft firewall is turned on.
Beware of Public Computers: Just as you need to protect your privacy on your own hardware, take extra precautions if you use a public computer. Remove all traces of your work by deleting any documents you have viewed, clear the browser cache and the history file, and empty the computer's recycling bin before you walk away. There is also a risk that a password-capturing program may have been loaded onto the computer. If you check your e-mail using hotmail, yahoo etc make sure you log out or sign out before you leave the computer.

If you leave your laptop at the hotel room or in any way unattended, use a cable lock, and be sure to lock your computer bag in the trunk rather than leaving it in the front or back seat. Taping your business card to the laptop helps ensure your computer can be easily returned to you in the case that it is lost.

Great Tools for real estate professionals

Rentometer great tool to find out the average rental in a community Google Readear Great tool to keep track of all of your friends blogs or companies you like to keep track of what the writh Edit pad EditPad Lite is a general-purpose text editor, designed to be small and compact, yet offer all the functionality you expect from a basic text editor. EditPad Lite works with Windows NT4, 98, 2000, ME and XP. Printer Anywhere print documents and photos on other people's printers as easily as on the local one connected to your machine.

Plan for 2007

Right About Real Estate - Plan for 2007

Florida – Emergency Insurance Assessment

Due to the unprecedented hurricane seasons of 2004 and 2005, the Florida Hurricane Catastrophe Fund has exhausted nearly all reserves accumulated since 1993. To rebuild its hurricane emergency funds, the state of Florida has issued an Emergency Order requiring all licensed property and casualty insurance companies, including mortgage guaranty insurers, to collect from Florida policy holders a special assessment of 1% of direct written premiums as of January 1, 2007. Depending on when their systems are updated, the special assessment may appear as ‘Surcharge' and will be included in the total amount due.

This assessment will apply to both new and renewal premiums on insured loans (including hazard, flood and MI) secured by properties located in Florida. The initial assessment period is for one year; however, Florida has the option to renew it. The assessment will appear as follows:

The insurance commitment and certificates for loans on properties located in Florida will include the 1% assessment effective January 1, 2007. Bills for premiums that are due and payable January 1, 2007 will include the 1% assessment.
The special assessment is required for all Florida loans that close on or after January 1, 2007. If the insurance commitment/certificate is issued prior to January 1st, and the loan closes after that date, the 1% assessment will be required in addition to the total amount due as shown. The following condition will be hard-coded in the UW Portal and used by the underwriters for Florida loans underwritten prior to January 1st:

Effective 1/1/07 a 1% surcharge applies for all hazard, flood and MI insurance policies. If a loan does not close prior to 1/1/07 updated policies will be required and the loan must be satisfactorily re-underwritten.

For additional information, please refer to the website for Florida's Office of Insurance Regulation at http://www.floir.com/hurricanes/fhcf.htm.

Homestead:much more than just a tax break

The most commonly known benefit to claiming your primary residence in Florida as Homestead is a tax benefit. By claiming your property as Homestead, you have two tax benefits: the first one is that you are exempt from paying property taxes on the first $25,000 of the assessed value of the residence.The second one is that your annual property taxes are capped at a maximum increase of 3% per year (may vary in each county). In order to qualify for Homestead exemption in 2007, you must occupy the residency prior to December 31st, 2006 and apply prior to March 1st, 2007 (if you are planning on purchasing a home soon, make an effort to close prior to December 31st so you can qualify for the tax break). You can apply for Homestead by visiting any of the property appraiser's offices or on-line at your county's property appraiser's website. You will need the following documents to qualify:
1. Proof of Ownership: Recorded Warranty Deed, Co-op Propriety Lease, Notice of Proposed Taxes or Tax Receipt.
2. Proof of Permanent Florida Residence (preferably dated prior to January 1 of the tax year for which you are filing): Florida's Driver's License or Florida I.D. Card, Florida Voter's Registration; or Recorded Declaration of Domicile.

And the sometimes overlooked benefit of claiming your Florida residence as Homestead is that of asset protection. The Florida Constitution exempts homestead property from levy and execution by judgment creditors with unlimited monetary protection. However, Homestead is not protected against tax liens, mortgages, homeowner association assessments, or from mechanics liens associated with labor or materials to repair or improve the homestead property.

Miami "The Sunshine State"

To your right, the Freedom Tower, where the first Cuban immigrants arrived to become American citizens. Do I sound like a tour guide? Well, that may be because eight years ago I had the opportunity to work as a tour guide in Miami, a city where great shopping and white sand beaches are the main attraction. But working as a tour guide, I learned that Miami has a lot more to offer, so allow me to give you a few recommendations of places to visit next time you fly down to the Sunshine State.
Let's start our tour in Downtown Miami. Take a boat tour from Bayside to see up close the homes of the rich and famous. Since real estate is our business, hop on the Downtown monorail (free ride) and watch from up high the old and new construction in contrast.
Continue your tour through Coconut Grove, one of Miami's oldest cities. Watch on your left Miami's first airport , where PanAm used to be the only airline. After being one of the most poor areas of Miami, Coconut Grove became one of the most expensive pieces of real estate thanks to the 1930's mafia. Adjacent to Coconut Grove is one of the cities with most charm: Coral Gables. Banyan trees give shade to streets with spanish names and houses built of coral. On Sundays, The Biltmore Hotel, where Al Capone used to stay, offers one of the cities best brunches with buffet tables wrapping around the pool.
Just drive a little further and you'll be in "LA CALLE OCHO" (8th St with a flavor of Cuba). Stop for a Cuban coffee (cortadito) to give your day a jolt and watch the Cuban culture at its best with folks playing chess and smoking cigars. Finish up your tour in South Beach (notice I say finish the tour, not the day). South Beach doesn't sleep and neither will you. Spend all day lying on the beach or just watching people go by (you can spend all day watching people go by and don't get bored). When the sun sets, have dinner at one of Lincoln Rd's amazing restaurants and then it's off to Salsa! Dance all night at any of Miami's great clubs (Level and Bash are great choices). If you like salsa (and even if you don't it is still a scene to watch), don't miss Mango's on Ocean Dr. On Sundays, Nikki's Beach is the place to see and be seen. This Miami's hot spot is right on the sand, perfect after a day of sun and fun.
And at last, my favorite place: The Everglades, wich means "The Never ending river of grass". While most people think it is a swamp the Everglades is one of the world's slowest moving rivers(it moves one mile per day). Take an air boat ride through the river's sawgrass and watch the most exotic birds fly by and maybe spot a few alligators.
And ok, I know you can't miss the opportunity of being in Florida and not going shopping, so just for kicks, the most popular malls are the Aventura Mall in NE Miami-Dade, Sawgrass (an outlet mall in SW Broward), and the Dolphin Mall in NW Miami-Dade.

Are you involved in mortgage fraud and don't even know it?

Right About Real Estate Podcast - Are you involved in mortgage fraud and don't even know it?

Are you involved in mortgage fraud and don't even know it?

So it's inevitable: The market is changing.

Remember those days when a listing would only remain on the market for a few days? Remember the multiple offers, the cash deals and the appraisals below purchase price that didn't make a difference because buyers had to pay the difference if they wanted to buy a home?

Well, those days are gone, but with a shift in market conditions, and sellers asking lower prices for their properties than their neighbors who sold last month, there is phenomenom taking place that has mortgage fraud written all over it.

Let's say I am a buyer looking to purchase a home. I find the perfect 3 bedroom home in the neighborhood of my choice and the owners are asking $455,000 for it. I know there are comparable homes in the area selling for $485,000 - $495,000, so this home will probably appraise for about $490,000; I offer the owners $425,000 for the home and they accept. I haven't even closed and I already have $65,000 equity in my property! Up to this point, everything is great, until I remember that my neighbor's nephew who just bought a house walked out of closing with all of his equity in his pocket, and so I decide to write the offer to the sellers instead of for $425,000, for $490,000 and include and addendum, which I will obvioulsy not send to the bank so they don't start asking questions, that states that the sellers will credit the buyer with $65,000 at closing. No harm done, right? the sellers will still get their $425,000 and I will get the equity that is mine anyways...

If this sound so great and so harmless, why is it wrong? For starters, inflating prices in this manner keeps an unrealistic sense that property values are still on he rise and doesn't allow the market to have a much needed correction. But more importantly, this practice is considered mortgage fraud and it has devastating consequences for the banking industry, buyers, sellers and realtors.

from what I have heard and read, there are a few rings in the South Florida area operating in the following manner: A buyer purchases several properties this way in a three month period (most times with stolen identities). Let's say he buys 12 to 15 homes during this period of time and cashes out over a million dollars in equity. After the third month, he fleas to the Cayman Islands and by the time the properties start forclosing, he is long gone, leaving behind an investigation that will come back to haunt those less fortunate than the buyer, who didn't go to the Cayman Islands, like the seller, the mortgage broker, the realtors...

So you can imagine what I've done in the past few months, everytime I get an offer like this on one of my listings (I've gotten four so far)... I advise the seller to tell the buyer: "the seller will either accept the lower price (the offer minus the equity) and the you can get a HELOC the day after you close, or you do it the way you propose, but we include the clause in the contract and not in an addendum (this way there is no risk of the bank not finding out) and the contract is not contingent upon the property appraising for the higher amount, but you are forced to purchase so long as it appraises for the lower amount."

This is no fairy tale, so three out of the four times I've done this, the buyers have said no thanks and gone to buy a different property. It is terible for the seller and it is terrible for me since we don't make the money, but you know what, my license is worth a lot more that a few thousand dollars I would have made in commission and so is my freedom, as this is punishable with prison time. As for the sellers, I have been lucky enough that they've appreciated their freedom more than they did the sale and I have found buyers for their homes shortly after. Should the seller have told me "forget it, we are taking the offer", this would have been a much tougher decision, since I would have probably had to resign as their Realtor and forget about getting paid.

I am sure if you live in an area that was fast appreciating last year and it is now slowing down you've seen this phenomenom, so I am really looking forward for your comments stories about situations like this one.

To Blog or not to Blog!!!

Lets start with what is a Blog? A typical blog combines text, images, and links to other blogs, web pages, and other media related to its topic. Most blogs are primarily textual although some focus on photographs (photoblog), videos (vlog), or audio (podcasting), and are part of a wider network of social media.
Why to start a blog? for many years people have kept online journals displayed on a website. In 1999 after a slow start, blogging rapidly gained in popularity. Blogging combined the personal web page with tools to make linking to other pages easier — specifically permalinks, blogrolls and TrackBacks. This, together with weblog search engines enabled bloggers to track the threads that connected them to others with similar interests.
How to start a blog? they are several webistes that offer the capability to host a blog for free some of them are:
Blogger
wordpress
You just have to click on "create" and the program will walk you through the set up, step by step, once you set it up, you can start posting.
Some tips for creating a successful blog are:
1)You should update your blog as often as you can
2)Remember to use phrases that are relevant for your customers or the people that you are interested in reading your blog so that search engines conect you to the right readers.
3)Register your site to blog directories.
4)Advertise it in your business cards,website, e.t.c.
Know you are ready to go BLOGGING!!!!

5 things you should do before selling

Avoid having the sale of your home fall through because of things that are well in your control.
In most standard contracts, it is specified that a Buyer has the right to inspect the property for damage or malfunction of appliances, plumbing, electric system, A/C unit, termites, roof condition and pretty much anything they deem appropriate within a certain amount of days from the date both parties sign a contract. Should they find anything that is not functional, they have the right to cancel the contract with no penalty.
To avoid having a buyer conduct an inspection and find things that may surprise you, it may be a good idea to consider the following 5 points:

1. Have a "pre-inspection". Prior to putting your home on the market, call a home inspector and have them provide you with a report including all necessary repairs.

2. Put yourself in a potential buyer's shoes and think which ones of those needed repairs, would scare you the most. Consider making some if not all of the repairs suggested by the inspector before buyers become concerned and cancel a contract. The items that usually scare buyers the most are those regarding the roof, termite infestation, plumbing and electric systems and A/C units.

3. If you decide not to repair some of the items listed on the inspector's report, then get estimates from a reliable repairperson on items that will need to be repaired or replaced. In this way, buyers will have a better sense of how much these needed repairs will affect their costs. You may also want to consider getting estimates on cosmetic repairs or replacements not included in the inspector's report, such as worn carpeting.

4. Gather together all the warranties and guarantees you may have for the appliances, termite treatments, roof repairs and other items that will remain with the house.

5. Fill out a disclosure form provided by your sales associate. Take the time to be sure that you don't forget problems, however minor, that might create liability for you after the sale.

TECH TOYS FOR YOUR HOME

If having the latest technology in your home is important to you and your family, then keep an eye out for these 10 cool features and products:

1. Automated lighting controls, window coverings, audio systems... From a remote control, you can do anything from turning on and off the lights of one room or the entire house, control the temperature and start your favorite movie.
2. High-tech toilets Brondell Inc has developed the most high tech of all toilets. The Swash 400 and Swash 600 promise to make your bathroom experience more comfortable and clean with features that include heated seat, gentle-closing seat and lid, push-button controls to adjust water pressure and temperature, a self-cleaning spray arm that moves forward or back to adjust to the anatomy of male and female users, a wireless remote control and a blow-dryer designed to eliminate the need for traditional toilet paper.
3. Home Theater Motion Simulator Chair Connect the D-Box Chair to your home entertainment system through a specialized controller that receives special effects codes from hundreds of DVDs and videos. As the movie plays, the chair moves in response to the signals. So if you're watching Jaws, you will actually experience the boat rocking.
4. The unbreakable window The Window Factory has come up with a window that features reinforced framing with break-resistant glass similar to the glass used in automotive windshields. The windows are said to be tough enough to stand up to baseball bats, crowbars and bowling balls. A unique secondary deadbolt lock secured to the frame makes the windows burglar-resistant as well.
5. Anti- microbial countertops This Silestone counter tops with Microban anti-microbial protection are resistant to germs, bacteria, mold and mildew and continue to clean long after you've cleaned them.
6. Pneumatic Vacuum Elevator The first residential elevator that runs merely by the forces of gravity. It is the pumps or turbines of the vacuum that pull you up to the next floor, and the slow release of air pressure that floats you down. This self supporting vacuum elevator can operate up to 35 feet, or three stops, with no pits or hoist ways required. Since a pit is not needed, the vacuum elevator appeals to any existing home that can accommodate a 3 foot diameter ring. it can be installed in one day and no excavation or infrastructure is required.
7. Automatic lawn mower Hate mowing the lawn? No problem. With the Robomower you will never have to do it again. The Robomower is suitable for mowing an area up to a one-acre lot size. Simply schedule a weekly program and forget about mowing for the entire season! The RL1000 will automatically depart at the times you have pre-set, cut your lawn and return to the charging station at the end of each operation. It will then recharge and wait for the next scheduled operation. A buzzer is heard five minutes prior to automatic departure, warning people to clear the mowing area.
8. Garbage-o-way™ Forget the garbage bin in your kitchen and send the odors outside. Built into the kitchen wall there is a hole with a flap cover through which all garbage is disposed into a cylindrical container housed outdoors which is fitted with a hydraulic press to compress the rubbish and keep odors contained. The cylindrical container is mounted on wheels to be easily moved for collection.
9. Biometric Door Lock Always forgetting your keys? Let your fingerprints open the door. The Biometric Door Lock allows you to open your door three different ways--fingerprint, pass code or emergency key. This secure locking system can be programmed with up to 78 different prints. Adding and deleting fingerprints is a snap. No need to drill new holes in the door, this Biometric Door Lock installs easily into the existing holes on your door. Powered by four AA batteries, it can be operated for up to a year without changing the batteries.
10. Car stacker Not enough space in your garage? then stack your cars with the Car-Lift. It can be used in existing garages with heights starting at 9-foot 6-inches and for garages in the planning stage, there are belowground lifts that can place up to two cars below ground. Access to any car is as simple as pushing a button.

Should you rely on the internet to search for a home?

We all know that the internet has changed the real estate industry and the way in which home buyers search for homes. Searching the internet before roaming the streets can save you precious time, but using the wrong sources will only confuse you.
When searching for homes on the internet, make sure your source has real-time connection with the MLS. The MLS shows the data that Realtors input in a real-time basis, thus providing the most reliable information. A lot of internet sources are not constantly connected to the MLS and do not update their records constantly, making the data you pull out outdated. In an ever-changing real estate market, outdated information means wrong information. To pull out the most updated, straight-from-the-MLS information, visit the HOME SEARCH section of our website.

 

Agents Wanted

Homeowners Cautiously Optimistic About Florida's Real Estate Market

RISMEDIA, July 7, 2006—A new survey finds that 58 percent of Florida homeowners think the value of their homes in their community will continue to rise over the next 12 months, despite indications that the state's unprecedented five-year housing boom is waning. The annual survey, commissioned by Florida-based Attorneys' Title Insurance Fund's Consumer Education Campaign, polled more than 1,000 homeowners throughout the state between May and June 2006. Detailed results can be found at www.fundhomeinfo.com. The survey also suggests that despite affordability continuing to be the biggest obstacle to purchasing a home (71 percent), homeowners are cautious about the state's housing market: across Florida homeowner's views are split about whether now is a good or bad time to buy Florida real estate (42 percent for both). Hurricanes were still on the mind of homeowners, however, with nearly half of all respondents (47 percent) saying they were concerned about being hit by a storm. Sixteen percent of homeowners cite the impact of a housing bubble as their biggest concern, even fewer cite rising mortgage interest rates (13 percent), depreciating home values (5 percent), or becoming the victim of real estate fraud (1 percent) as their biggest real estate concern in Florida. "As the Florida real estate market continues to soften it is reassuring to see Florida homeowners generally optimistic about the next 12 months," said Charles J. Kovaleski, president and CEO of Attorneys' Title Insurance Fund. "Surprisingly, the survey illustrates that Florida homeowners do not rank being the victim of real estate fraud as a higher concern, especially since Florida was recently named the top state in the nation for mortgage fraud. However, we are pleased to see that homeowners are increasingly turning to real estate attorneys to protect their real estate interests, which is significant given that understanding real estate laws is cited as most the confusing part of the home-buying process." Summary of key findings: Obstacles to homeownership Seventy-one percent of Floridians cite "affordability" as the biggest obstacle to homeownership in the state, as compared to the complexity of the real estate process, assembling a qualified real estate team, and the loan process. This is an 18 percent increase when compared to results from a similar survey conducted in 2005. -- Homeowners in Ft. Myers-Naples and Miami-Dade (both 83 percent) are even more likely to say "affordability" is a big obstacle. -- With nearly a 30 percent increase from 2005, the Tampa area saw the biggest increase in percent stating "affordability" as the biggest obstacle to homeownership compared to other regions of the state. Plans for buying a home in Florida Floridians are split in their views about whether now is a good or a bad time to buy Florida real estate (each 42 percent), but residents in select regions like Orlando (43 percent), Sarasota County (53 percent) and West Palm Beach (49 percent) are slightly more likely to believe that now is a good time to buy a home than regions such as Broward County (39 percent), Miami-Dade (34 percent) and Tampa (42 percent). The majority of homeowners in Florida (78 percent) are not planning on purchasing a house or condo in the next two years. Most confusing part of purchasing a home Among Florida homeowners, 41 percent find understanding real estate laws as the most confusing part of purchasing a home. In fact, one third of owners of Florida real estate find understanding real estate law extremely or very confusing. Other aspects of the process of buying Florida real estate that are seen as confusing by a sizeable percentage of Florida homeowners include understanding the closing process/paperwork involved (24 percent say extremely/very confusing). How real estate attorneys help the most In ranking the value real estate attorneys provide, Florida homeowners consider real estate attorneys most valuable in preventing legal problems (37 percent), followed by reviewing a contract (28 percent), protecting the home buyer's interest (23 percent) and lastly, issuing title insurance (3 percent). About half of owners of Florida real estate have consulted with a real estate attorney in the past (48 percent). Residents in South Florida consult real estate attorneys more frequently, compared to residents in other parts of the state. For example, 67 percent of residents in Miami-Dade County, 61 percent in Broward and 60 percent of residents in West Palm Beach say that they have consulted real estate attorneys, compared to 37 percent of residents in Tampa and 44 percent in Orlando.

The Tides in Hollywood, FL

If you need more information please contact:
Yael Warman yael@rightabouthomes.com
or visit our website http://www.rightabouthomes.com/



Thank you

Foreigners are big buyers for the Sunshine State

Foreigners, mainly Europeans and Latin Americans, accounted for an estimated 15 percent of home sales in Florida between May 2004 and May 2005, according to a report conducted for the Florida Association of Realtors (FAR) by the National Association of Realtors (NAR). These buyers flock to the Sunshine State for its warm climate and reasonably priced properties; and the weak dollar, direct international flights, and political and financial instability in their home nations also plays a role. The most popular markets among foreigners are Miami-Fort Lauderdale, Orlando, and Naples-Fort Myers, accounting for 30.4 percent, 22.7 percent, and 13.7 percent of foreign purchases, respectively, reports NAR. The statewide median single-family home price was $196,200 during the year-to-year period, but the "Profile of International Home Buyers in Florida" report reveals that the median price for foreign buyers was 52.4 percent greater at $299,000 over the same 12 months. Excerpts obtained from: Inman News Features (05/17/06) Roberts Jr., Glenn © Copyright 2006 INFORMATION, INC. Bethesda, MD (301) 215-4688

Tip to improve your credit score

It's important to find out what happens to the personal information you provide to companies, marketers, and government agencies. These organizations may use your information simply to process your order; they may use it to tell you about products, services, or promotions; or they may share your information with others. More organizations are offering people choices about how their personal information is used. For example, many let you "opt-out" of having your information shared with others or used for promotional purposes The national credit bureaus offer a toll-free number that enables consumers to opt-out of all pre-approved credit offers with just one phone call. Call 1-888-5-OPTOUT (1-888-567-8688) for more information. Right About Real Estate

Tips for Rookie Realtors

The following marketing tips/strategies can help increase new agents’ sales–when applied consistently and with committed follow-up. • Pick your farm and work it well–walk the neighborhood, send mailers, let everyone know this is your neighborhood. • Never miss a chance to introduce yourself and your business. • Strike up conversations about what you do in the line at the bank, the store, the doctor’s office–anywhere people congregate. • Offer to hold open houses for agents in your office. • Offer to cover floor time for agents in your office. • Attend MLS meetings to network and pitch listings. • Develop a mailing campaign and follow up on the campaign. • Call expired listings and FSBOs every day. • Participate in your office’s and MLS caravans each week. • Create a Web site or invest in one and post listings and an e-mail marketing newsletter (an excellent way to capture the relocation market). • Use flyer services to distribute flyers to agents at other offices. • Use marketing tools that boost exposure, such as car magnets, REALTOR® clothing and apparel, real estate jewelry, brief cases, pens/pins, etc. • Carry business cards with you everywhere. • Create listing presentations that sparkle (replete with your photo and logo).Since referrals and repeat business are the most important aspect of marketing, make sure you treat your prospects and principals like the gold that they are.

Four of 10 Existing Homes in 2005 Were Second Homes

Right About Real Estate Four of 10 Existing Homes in 2005 Were Second Homes The National Association of Realtors (NAR) released a report stating that roughly 40% of existing homes bought last year were purchased as second homes. As rates continued at historic lows throughout 2005, almost 28% of homes were bought as an investment, while another 12% were vacation homes. The NAR reported the typical second home investor was a 49-year-old making $81,000 that paid a median price of $183,000 - up 24% from the previous year. While analysts expect investment purchases to taper off, vacation homes for baby boomers are expected to remain strong for years. Americans snapping up second homes — as investments or vacation properties — accounted for four out of every 10 sales of existing homes last year, a record that helped drive the real estate market to new highs, according to a report being released today by the National Association of Realtors. Nearly 28% of homes bought last year were for investment purposes, and an additional 12% were vacation homes, the figures show. Most of the buyers were baby boomers in their top earning years, looking toward retirement and hoping to build wealth or find a more desirable place to live. "Baby boomers are such a powerful economic force," said Dave Jenks, co-author of The Millionaire Real Estate Investor. "They're using their wealth to go buy second homes." The typical investment buyer last year was 49 years old with annual income of $81,400. He or she paid $183,500 for the median-priced investment home, up 24% from 2004. "Real estate, over the past five years, has outperformed virtually every other investment vehicle," said Ron Peltier, president and chief executive of HomeServices of America, the country's second-largest residential brokerage firm. "A lot of people have just speculated in real estate." The trend really started after 1997, when Congress changed the tax code, allowing most homeowners to duck capital gains taxes when they sold their homes. The exemption is $500,000 for married couples, $250,000 for singles, if it was their primary residence for two of the past five years. Under the old system, the only way to avoid the tax was to "roll" the gains into another home of equal or greater value. Americans bought bigger and costlier homes. But now, they can downsize and use the equity built up in their homes to buy second homes. "That's what spurred all this on in the beginning," says David Lereah, the NAR's chief economist. "It's like all the stars are aligned. The tax situations helped, but at the same time, baby boomers were entering their peak earning years. That's why we just boomed in second homes." He thinks the trend crested in 2005. With rising interest rates, tighter lending standards and slower price appreciation, Lereah expects second-home sales to drop this year to 30% of all existing-home sales, and maybe into the 20% range. "What's going to be leaving the market right now are the speculative investors who came into the market and were trying to flip homes," he said. "They were buying one, two, three or four properties at a time, and that was distorting the numbers." Sales of vacation homes, though, are expected to stay strong for years, because the youngest baby boomers are only 42 this year. The typical vacation home buyer last year was 52 years old, earning $82,800 a year, and purchased a property that was about 200 miles from the primary residence. The median price was $204,100, up 7.4%. More than three-fourths of the buyers had no interest in renting their property. About 20% said it would one day be their retirement home. Joe Klein and his wife bought their first vacation home last year on Lake Wabedo in Minnesota, three hours from their primary residence. He says he might like to retire there but might have to persuade his wife. "It's something that we could hand down to the kids," says Klein, 42, a program manager for a medical company. "But secondly, I see it as an investment. If we had to, we could sell it to help pay for their college."

What is a Reverse Mortgage

Right About Real Estate Reverse mortgages (also called home equity conversion loans) enable elderly homeowners to tap into their equity without selling their home. The lender pays you money based on the equity you've accrued in your home; you receive a lump sum, a monthly payment or a line of credit. Repayment is not necessary until the borrower sells the property, moves into a retirement community or passes away. When you sell your home or no longer use it as your primary residence, you or your estate must repay the cash you received from the reverse mortgage plus interest and other finance charges to the lender. Most reverse mortgages require you be at least 62 years of age, have a low or zero balance owed against your home and maintain the property as your principal residence. Reverse mortgages are ideal for homeowners who are retired or no longer working and need to supplement their income. Interest rates can be fixed or adjustable and the money is nontaxable and does not interfere with Social Security or Medicare benefits. Your lender cannot take property away if you outlive your loan nor can you be forced to sell your home to pay off your loan even if the loan balance grows to exceed property value.

Job Opportunity

Right About Real Estate You got your real estate license and so, now what?If you want lo learn how things are done in the real world and start making money quickly, you need to work with serious team of Realtors that will coach you and support you. At Right About Real Estate: * We provide our agents with top commissions and have non-sense fees. * We are constantly implementing new systems to make agents' work easier and more efficient. * Our floor-time is virtual, so our agents can receive leads while on the field If you are a Realtor who thinks Real Estate is a serious business, then we need to talk. Call us for a private interview at (954) 362-0980 Ext 2001 or e-mail yael@rightabouthomes.com http://www.rightabouthomes.com/

WINNING BIG

Investors who put their money in real estate last year were huge winners, earning an unprecedented 34 percent on their dollars. The performance of real estate surpassed the stock market worldwide, and government and corporate bonds, according to a study being released today by the Massachusetts Institute of Technology’s Center for Real Estate. "Real estate as an asset class has great potential for the investment industry because there's so much of it out there," says David Geltner, director of MIT's 21-year-old Center for Real Estate. Source: Boston Globe, Thomas C. Palmer Jr. (02/22/06) © Copyright 2006 INFORMATION, INC. Bethesda, MD (301) 215-4688

ANOTHER REASON TO HIRE A PRO

In 2005, 13 percent of home sellers sold their home without a real estate practitioner; however, the average sales price for a home sold by an unrepresented owner was $163,800 compared with $189,000 for a home sold with the help of a real estate practitioner, according to a study conducted by NAR.

What is a 1031 Exchange?

1031 exchanges are specifically structured transactions that join together the sale of an old property and the purchase of a new property for the purpose of deferring taxes. Exchanges are primarily used for buying and selling investment real estate, but they can also be used for personal property that is used in a business. Examples of qualifying property include bare land, rental property, commercial buildings and homes other than your primary residence. A 1031 exchange can defer the capital gain taxes that are due when you sell property that has increased in value or been depreciated for tax purposes. These federal and state capital gain taxes can be costly. Internal Revenue Code Section 1031 can benefit you in several other ways. By deferring taxes, you have increased flexibility, leverage and buying power. Exchanges also allow you to change, diversify or consolidate your investments.

County offers free trees at five parks

If you lost a tree during Hurricane Wilma, you'll have a chance to replace it later this month. There would be seven to 10 species of trees, with a variety of fruit and native shade trees. Each household will be limited to two trees, and each transaction will require proof of residency and a signed affidavit stating the tree will be planted in Broward. Where to go: Trees will be available from 10 a.m. to 3 p.m. weekends at the following parks, beginning Jan. 28. C.B. Smith Park, 900 N. Flamingo Road, Pembroke Pines, 954-437-2650 (no trees Jan. 29) Plantation Heritage Park, 1100 S. Fig Tree Lane, Plantation, 954-791-1025 Rev. Samuel Delevoe Park, 2520 NW Sixth St., Fort Lauderdale, 954-791-1036 Topeekeegee-Yugnee Park, 3300 N. Park Road, Hollywood, 954-985-1980 Tradewinds Park, 3600 W. Sample Road, Coconut Creek, 954-968-3880

3 Tips for a Hard-to-Sell House

Here are three last-ditch suggestions from SmartMoney magazine to move a house when the usual sales techniques haven’t worked.

• Auction it off. The number of residential auction sales is up 8 percent in 2005. It’s faster, although if you don’t get enough bidders, the price can be less than you might have hoped. Setting a starting bid will make sure you don’t get stuck with a ridiculously low price. The National Auction Group will handle the details. It works with local real estate professionals.
  
  
• Spread the word in cyberspace. From well-known sites like Craigslist and eBay to newcomers like HomeToursOnline.net and ChoiceofHomes.com. Practitioners can handle the details for their customers.
  
  
• Throw in a bonus. Encouraging the seller to pay for all allowable closing costs is a tried-and-true approach. But sweetening the pot with things like a car or a vacation to someplace glamorous also can appeal to some buyers.
  
  Source: SmartMoney, Jim Rendon (02/10/06)
  

Do's & Dont's about home improvements

According to the latest Consumer Reports....

Do: The best way to boost the value of your home is to add square footage that will bring your house up to - but not beyond - neighborhood norms. Renovations that merely update styles will only sell your house faster if you sell when the style is, well, in style.

Don't get ahead of the Joneses: Over-improving yields diminishing returns. You'll get the biggest bang for your buck by keeping up with the Joneses, not by going them one better. For example, don't add a swimming pool or a third story if you're the only one on the block to have one.  

Ten Reason to Market Your Home Now!

        Pricing Power - In most markets sellers are able to sell for top dollar as low interest rates and high demand has fueled a rush of buyers into the market place.

1. High Demand - Low inventory in most markets means that the number of buyers competing for each home is higher than it has ever been. This also means that the time it takes to secure an acceptable offer has dropped considerably.
2. Low Interest Rates - Interest Rates have remained at 30 year lows despite the fact the Federal Reserve has hiked rates for the past several quarters. Today's low rates mean more buyers can afford to purchase more amenities and pay higher prices than in the past.
3. Fewer Contingencies - Because many buyers have been able to sell their homes quickly many are able to write offers that are not contingent on the sale of their home.
4. Flexible Financing - Many buyers today are able to enjoy hundreds of different possible loan programs from ARMS, to reverse amortization mortgages, and even no-documentation loans. This flexibility means more buyers can afford to buy homes than ever before.
5. Timing Control - Sellers who need more time to move, find a replacement property, or move into a rental can be more selective in choosing which offer best suits their needs. They can also specify their timing needs in advance.
6. Tax Savings - Sellers who have owned their home for two of the past five years, and lived in their home for two of the past five years may be able to take up to $250,000 as a single person or up to $500,000 as a married couple in tax free gains out of the sale! See www.irs.gov for details.
7. Nationwide Market Expansion - The national housing market is now at record levels. This may mean more out of state buyers than ever before as potential buyers for a sellers home.
8. Home Ownership Rates - The number of American families who own a home is at all time high - 70%! This is good news for sellers - as more, and more families recognize the value and wealth building potential of owning real estate.
9. Discounted Rental Rates - Although home prices have climbed steadily over the last several months, rental rates in most areas of the country have not kept pace. This can be good news for sellers who would like to take their time finding their next home

How do you prepare your home for sale?

Many factors come into play in preparing your property for showing.  Before you start presenting your home to prospective buyers, there are some things you can do to spruce it up, without spending a lot of money.

Buyers decide to visit a home after they’ve driven by it. If they like the outside, they’ll go inside, so to make sure they like the outside, your first concern should be the “curb appeal” of your home. Keep the lawn and landscape nicely manicured. Water regularly. Trim the bushes and plant some flowers. Be sure your front door area has a "Welcome" feeling. A fresh coat of paint on the front door looks great.

Now, let’s move to the inside. Of all the rooms in your house, pay special attention to the kitchen and bathrooms. They should look bright and fresh. It is very important that they are clean and odor free. It may be a good idea to hire a professional cleaning crew every other week while your home is on the market. A fresh coat of paint and replacing door knobs will give your kitchen and bathrooms a fresh new look. If your kitchen is a constants reminder of the 70's, consider painting your appliances and changing the acrylic ceiling panels that have turned yellow with time for brand new ones; this will make your kitchen much brighter.  Keep your kitchen countertops cleared from clutter and fix leaky faucets.

Finally, for every showing make sure you replace all burned out light bulbs, open all drapes and window blinds, put pets in cages or take them to a neighbor, remove RVs or unappealing cars from the driveway, clear dirty dishes from the sink and laundry from the washer/dryer, put some soft music and light a scented candle or bake something (an apple with sprinkled cinnamon smells like home for the holidays)

Right About Real Estate

Right About Real Estate Welcome