The September 2010 Case-Schiller Index showed the slowest year-over-year growth for any month in the year. Property values rose only 0.6% for September 2010 over September 2009.
The two biggest factors seem to be over-supply of homes and the economy (i.e., almost 10% unemployment). The CEO of homebuilder D.R. Horton recently said he expects sales to remain weak in 2011. He said the company would adjust price points to demand (editors note: seems to be indicating price reductions).
Here's some information from Case-Shiller Index of interest:
============================================================
1-mo 3-mo 1-yr 2-yrs 3-yrs
earlier earlier earlier earlier earlier
============================================================
US Composite-20 -0.71% -0.34% 0.59% -8.75% -24.63%
New York -0.34% 1.01% -0.13% -8.91% -15.41%
Miami -1.24% -0.87% -2.71% -18.51% -41.65%
Boston -1.31% -0.98% 0.42% -2.92% -8.46%
Chicago -1.53% -0.11% -5.58% -15.61% -24.12%
The indications seem to be for continued pricing pressure in the near-term. As we stated earlier, we still believe there is potential for another 5% to 10% slide in home prices during the next 12 months in the South Florida real estate market.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Tuesday, November 30, 2010
Monday, November 29, 2010
October 2010 Real Estate Sales Information for Florida (Condo and Single Family Homes)
Is the Florida real estate market beginning to show signs of a bottom?
The October 2010 year-to-date unit price per unit sold for single family homes was up 7% over the previous year, according to housing data recently released by the Florida Realtors. In addition, condominium unit sales were reported to be up 33% over the previous year during year-to-date October 2010.
However, when looking at a year-over-year comparison of October 2010 housing results in Florida, the market does not seem to be trending in the same direction.
The statewide existing median condo sales price of $82,400 in October 2010 was 22% below October 2009; unit sales were also down 5% during the same timeframe. The median existing single family home price fell 3% to $136,600 in October 2010, versus October 2009; the number of units sold decreased 21% on a year-over-year basis in October 2010.
What does this all mean-- I think we are still looking at an uncertain housing market in Florida. Buyers still seem to be anxious about the economy and sellers are somewhat hamstrung by the declining home prices.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
The October 2010 year-to-date unit price per unit sold for single family homes was up 7% over the previous year, according to housing data recently released by the Florida Realtors. In addition, condominium unit sales were reported to be up 33% over the previous year during year-to-date October 2010.
However, when looking at a year-over-year comparison of October 2010 housing results in Florida, the market does not seem to be trending in the same direction.
The statewide existing median condo sales price of $82,400 in October 2010 was 22% below October 2009; unit sales were also down 5% during the same timeframe. The median existing single family home price fell 3% to $136,600 in October 2010, versus October 2009; the number of units sold decreased 21% on a year-over-year basis in October 2010.
What does this all mean-- I think we are still looking at an uncertain housing market in Florida. Buyers still seem to be anxious about the economy and sellers are somewhat hamstrung by the declining home prices.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Wednesday, November 24, 2010
US: Jumbo Mortgage Loans Up; To Increase Sales Of Luxury / Country Club / Waterfront Real Estate In Delray Beach / Boca Raton, Florida?
Lenders wrote $18 billion in jumbo mortgages during 2Q 2010, which is up 20% sequentially. Some analysts feel this reflects a confidence the stability of the US real estate market on the higher end of the market. Jumbo loans are usually more than $417,000; as such, these mortgages tend to be for homes in the higher-end of the market.
These jumbo loans are considered more risky because they are not guaranteed by FHA, Fannie Mae or Freddie Mac because the amount is above the conforming limits set by these government-backed agencies. Could this mean the higher-end real estate market is set for a rebound in price?
Working with both buyers and sellers in the country club and luxury housing market in South Florida, I can attest to the fact that there are worries on both sides of the equation. The result is gridlock as there is in many other segments of the real estate market.
As a Realtor who specializes in luxury, waterfront and country club communities, I believe the higher-end market segment is beginning to show signs of increased movement. The recent increase in the amount of jumbo loans underwritten is another sign things are moving in a positive direction.
Those who want to sell their homes have more potential buyers due to the increase in loan activity. On the other side of the coin, those who would like to upgrade into, or upgrade within, the luxury market now have more financial flexibility at their disposal to do so.
With the apparent mitigation of lenders' anxiety in writing the riskier jumbo mortgages, I think it will give buyers and sellers more confidence in the upper-market housing segment. As a result, I expect to see more activity in the next year.
If you are buying or selling in a luxury home or country club community or looking for waterfront homes in South Florida, please feel free to contact me.
I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
These jumbo loans are considered more risky because they are not guaranteed by FHA, Fannie Mae or Freddie Mac because the amount is above the conforming limits set by these government-backed agencies. Could this mean the higher-end real estate market is set for a rebound in price?
Working with both buyers and sellers in the country club and luxury housing market in South Florida, I can attest to the fact that there are worries on both sides of the equation. The result is gridlock as there is in many other segments of the real estate market.
As a Realtor who specializes in luxury, waterfront and country club communities, I believe the higher-end market segment is beginning to show signs of increased movement. The recent increase in the amount of jumbo loans underwritten is another sign things are moving in a positive direction.
Those who want to sell their homes have more potential buyers due to the increase in loan activity. On the other side of the coin, those who would like to upgrade into, or upgrade within, the luxury market now have more financial flexibility at their disposal to do so.
With the apparent mitigation of lenders' anxiety in writing the riskier jumbo mortgages, I think it will give buyers and sellers more confidence in the upper-market housing segment. As a result, I expect to see more activity in the next year.
If you are buying or selling in a luxury home or country club community or looking for waterfront homes in South Florida, please feel free to contact me.
I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sunday, November 21, 2010
Predictions On Foreclosure and Short Sale Real Estate In Boca Raton, Florida
Executives at major US banks and real estate experts recently testified before the US Senate Banking Committee in Washington, DC about problems with the foreclosure process. Much of the recent problems stem from the litigation regarding the irregularities of the foreclosure process; prior pieces have discussed the issue in detail.
The Congressional Oversight Panel recently released a report predicting the potential problems in the foreclosure process could be significant. Greater disrputions than we've already experienced in the US housing market has been predicted as a possibility.
The current problem of lenders having to prove they own the mortgage loans is predicted to lead to a drop in foreclosure sales. The theory is the banks would favor short sales during this period of difficulty in actually foreclosing on homes.
Experts believe the delay in foreclosures will mean less price competition in the short-term and long-term a record high amount of bank foreclosures by mid-2011. The theory is that after the ligitation mess is worked out, the delayed foreclosures, and those that were in limbo because of the litigation, will all be worked out at the same time. Should that happen, one might expect to see US home prices fall yet again, as a new wave of lower-priced inventory enters the market.
As a Certified Distressed Property Expert (CDPE) and a Realtor, I can help both buyers and sellers navigate the ever changing distressed property landscape.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
The Congressional Oversight Panel recently released a report predicting the potential problems in the foreclosure process could be significant. Greater disrputions than we've already experienced in the US housing market has been predicted as a possibility.
The current problem of lenders having to prove they own the mortgage loans is predicted to lead to a drop in foreclosure sales. The theory is the banks would favor short sales during this period of difficulty in actually foreclosing on homes.
Experts believe the delay in foreclosures will mean less price competition in the short-term and long-term a record high amount of bank foreclosures by mid-2011. The theory is that after the ligitation mess is worked out, the delayed foreclosures, and those that were in limbo because of the litigation, will all be worked out at the same time. Should that happen, one might expect to see US home prices fall yet again, as a new wave of lower-priced inventory enters the market.
As a Certified Distressed Property Expert (CDPE) and a Realtor, I can help both buyers and sellers navigate the ever changing distressed property landscape.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Friday, November 12, 2010
Moody's: Strong Job Growth Predicted For Florida In 2011; Will This Be A Catalyst For The Florida Housing Market?
Moody's Economy.com, an economic consulting firm, predicts strong job growth for the state of Florida during 2011. Moody's predicts Florida will experience the strongest increase in jobs during 2011 when compared with all the states in the US.
The company predicts a 3% increase in jobs in 2011 over 2010. The construction industry is expected to account for the largest part of the increase in jobs; the estimate is for a 27% increase in positions in the field. Others areas of growth for Florida jobs is predicted to be in the following industries: mining, leisure and hospitality, education and health services; ranging in growth levels of 5% to 3%.
The large percentage of unemployed workers and the continued loss of jobs in the state is among the biggest reasons for the large amount of distressed properties in the state of Florida, in our view. Should more jobs be created in the state, we think this would atleast help provide a floor for housing prices. The reason is simple, less distressed properties on the market for sale and more money available to purchase homes.
However, given the current state of the economy, it is still not clear that jobs will rebound as robustly as Moody's predicts. However, it is a good sign for our prediction of a housing bottom during the next 12-to-18 months.
Markets tend to run in advance of actual results. The housing market should be no different. So, if Moody's is indeed correct in their assessment of job growth in the state of Florida, those buyers "on the fence" should start to act now.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
The company predicts a 3% increase in jobs in 2011 over 2010. The construction industry is expected to account for the largest part of the increase in jobs; the estimate is for a 27% increase in positions in the field. Others areas of growth for Florida jobs is predicted to be in the following industries: mining, leisure and hospitality, education and health services; ranging in growth levels of 5% to 3%.
The large percentage of unemployed workers and the continued loss of jobs in the state is among the biggest reasons for the large amount of distressed properties in the state of Florida, in our view. Should more jobs be created in the state, we think this would atleast help provide a floor for housing prices. The reason is simple, less distressed properties on the market for sale and more money available to purchase homes.
However, given the current state of the economy, it is still not clear that jobs will rebound as robustly as Moody's predicts. However, it is a good sign for our prediction of a housing bottom during the next 12-to-18 months.
Markets tend to run in advance of actual results. The housing market should be no different. So, if Moody's is indeed correct in their assessment of job growth in the state of Florida, those buyers "on the fence" should start to act now.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Wednesday, November 10, 2010
South Florida 3Q 2010 Real Estate Picture, According To Zillow
As we expected, the prices of homes in the South Florida market continued to decline during 3Q 2010; this according to real estate firm Zillow.
The large number of distressed properties and the weak job market continue to cause hardship for homeowners in the market.
Zillow reports the peak for home values in the South Florida market was June 2006. Zillow estimates home values in the market have fallen 53.5% since June 2006 to 3Q 2010. Among the 25 markets followed by Zillow, the South Florida market dropped the most during this time.
Of the single family homes in the South Florida market, Zillow estimates 42% are "underwater", meaning they owe more on the mortgage than the home is worth.
Prices continue to fall in the market in order to keep up with the distressed properties in the area. Zillow reports 21% of homeowners in the South Florida market reduced the listing price on their home during 3Q 2010.
We think the trend will continue in the foreseeable future, meaning home values will not appreciate during the next year. However, we see the market bottoming out during the next 12 months.
In order to track our predictions, we include the following information: According to Zillow, the South Florida median selling price fell as follows:
--Single family home prices were down 7.8% from last year in 3Q 2010, to $221,200;
--Condominium prices were down 14.2% from last year in 3Q 2010, to $109,800.
Another intresting tid bit to track our theory: Esslinger-Wooten-Maxwell Realty estimates short sales and foreclosures (i.e., distressed property) accounted for more than 60% of home sales during 3Q 2010.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
The large number of distressed properties and the weak job market continue to cause hardship for homeowners in the market.
Zillow reports the peak for home values in the South Florida market was June 2006. Zillow estimates home values in the market have fallen 53.5% since June 2006 to 3Q 2010. Among the 25 markets followed by Zillow, the South Florida market dropped the most during this time.
Of the single family homes in the South Florida market, Zillow estimates 42% are "underwater", meaning they owe more on the mortgage than the home is worth.
Prices continue to fall in the market in order to keep up with the distressed properties in the area. Zillow reports 21% of homeowners in the South Florida market reduced the listing price on their home during 3Q 2010.
We think the trend will continue in the foreseeable future, meaning home values will not appreciate during the next year. However, we see the market bottoming out during the next 12 months.
In order to track our predictions, we include the following information: According to Zillow, the South Florida median selling price fell as follows:
--Single family home prices were down 7.8% from last year in 3Q 2010, to $221,200;
--Condominium prices were down 14.2% from last year in 3Q 2010, to $109,800.
Another intresting tid bit to track our theory: Esslinger-Wooten-Maxwell Realty estimates short sales and foreclosures (i.e., distressed property) accounted for more than 60% of home sales during 3Q 2010.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Saturday, November 6, 2010
Real Estate Appraisals: What Sellers and Buyers Should Know
What some sellers and buyers do not understand is that a home appraisal can kill some deals.
Sellers must realize the home should be priced within a reasonable range of the appraised value. The reason is that a buyer may want to purchase the home at a higher price; however, the mortgage company may deny the loan based on the appraised value of the subject property.
Three common issues to be aware of as it relates to home valuation/appraisals:
1) In areas with many foreclosures and short sales, appraisers are sometimes left with little choice but to include them in the comparable analysis. This tends to reduce the appraised value of the subject property. Certain states that have a large number of distressed property sales, such as Florida, should be mindful of this.
2) Lower the credit score and/or the higher debt-to-income level, the greater the scrutiny of the colleral's value (i.e., home valuation). If there is some uncertainty, the extra focus on value could impact whether or not the lender approves the loan at the appraised value.
3) The fluctuations of the market can make some sellers apprehensive about selling at market value as they may start to believe the value will appreciate.
Sometimes sellers tend to want to get as much for the home as they can. And this is reasonable; however, it may wind up killing a deal when a lender is involved. On the other hand, some buyers fall in love with a home and are willing to pay more than fair value. If the buyers have "iffy" credit history or "just enough" to meet the loan-to-value requirements for a loan, they may be denied by their lender.
Please see some of our previous pieces on home and market valuations.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sellers must realize the home should be priced within a reasonable range of the appraised value. The reason is that a buyer may want to purchase the home at a higher price; however, the mortgage company may deny the loan based on the appraised value of the subject property.
Three common issues to be aware of as it relates to home valuation/appraisals:
1) In areas with many foreclosures and short sales, appraisers are sometimes left with little choice but to include them in the comparable analysis. This tends to reduce the appraised value of the subject property. Certain states that have a large number of distressed property sales, such as Florida, should be mindful of this.
2) Lower the credit score and/or the higher debt-to-income level, the greater the scrutiny of the colleral's value (i.e., home valuation). If there is some uncertainty, the extra focus on value could impact whether or not the lender approves the loan at the appraised value.
3) The fluctuations of the market can make some sellers apprehensive about selling at market value as they may start to believe the value will appreciate.
Sometimes sellers tend to want to get as much for the home as they can. And this is reasonable; however, it may wind up killing a deal when a lender is involved. On the other hand, some buyers fall in love with a home and are willing to pay more than fair value. If the buyers have "iffy" credit history or "just enough" to meet the loan-to-value requirements for a loan, they may be denied by their lender.
Please see some of our previous pieces on home and market valuations.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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