Imagine you have a pre-approved mortgage for the buyer, a 20% down payment, contract and two parties that want to get the deal done at the set upon price-- what could possibly go wrong?
Well, the appraisal may not come back as hoped. Generally, lenders will finance only 80% of the appraised value. If the agreed upon price is $220,000 and the home appraises for $200,000, then we might have a problem.
The buyer would have to come up with another $20,000 more cash in the above example, the sellers would have to reduce the asking price by $20,000, or there would need to be some combination.
If the sellers stick to their price and the buyers cannot supply extra cash or refuse to come up with the extra money, the deal could die.
A lesson leared for both buyers and sellers.
My buyers and sellers know the market and are versed on the home. We know if the home is priced too high, the appraisal may not allow the deal to happen.
I only target those homes that make sense-- I leave the others to stagnate on the market. Either they will become realistic and come back to me or they will most likely be left on the market. Mis-priced homes and unrealistic expectations does not allow either party to acheive their respective goals.
For more information, please feel free to contact me. For free home searches and market data, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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, December 21, 2011
Prediction For US Housing Market In 2012: Homes For Sale: Homes For Rent
There are about 6 million US homeowners who are delinquent 30 days or more, according to LPS Applied Analytics. A recent survey showed almost half of all homes sold in the US were distressed properties. We have seen prices decrease during the past year.
Given all of this evidence leads me to believe we will not see an improvement in US home prices during 2012. In addition to inventory levels, the combination of persistent high unemployment, uncertainty related to upcoming elections, the sluggish US economy, stricter mortgage lending standards, and the economic concerns in Europe will all lead to more stagnation (at best) for US home prices, in my view.
Please reference prior posts on why it may be a good time to purchase a home, despite all I mentioned above.
Those who have time to wait, might want to do so prior to buying.
Sellers on the other hand, should be realistic as to the current circumstances and aggressively market and price their homes in order to have a chance at a successful sale.
Please feel free to contact me for more information. For free home searches and market data, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
Given all of this evidence leads me to believe we will not see an improvement in US home prices during 2012. In addition to inventory levels, the combination of persistent high unemployment, uncertainty related to upcoming elections, the sluggish US economy, stricter mortgage lending standards, and the economic concerns in Europe will all lead to more stagnation (at best) for US home prices, in my view.
Please reference prior posts on why it may be a good time to purchase a home, despite all I mentioned above.
Those who have time to wait, might want to do so prior to buying.
Sellers on the other hand, should be realistic as to the current circumstances and aggressively market and price their homes in order to have a chance at a successful sale.
Please feel free to contact me for more information. For free home searches and market data, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
Foreclosure and Short Sales Price Differential: Homes For Sale: Homes For Rent
Foreclosures and short sales combined for almost half of all US homes sales in November 2011, according to a survey by Campbell/Inside Mortgage Finance company. The number was 46% to be exact.
We have posted data on sales discounts for distressed properties: here is some of the latest data.
The average short sale sold for about 19.3% less than those sold by conventional home sales in the US. For more informaiton about short-sales, please see prior entries.
The average forclosed home that was deemed to be "move-in" condition was 26.6% below a conventional home sale in the US.
The average price for a damaged foreclosed home was 62% less than the conventional home sale in the US.
There is plenty of distressed property in the current inventory. I would not be surprised if 2012 was another year of large amounts of distressed property sales.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
We have posted data on sales discounts for distressed properties: here is some of the latest data.
The average short sale sold for about 19.3% less than those sold by conventional home sales in the US. For more informaiton about short-sales, please see prior entries.
The average forclosed home that was deemed to be "move-in" condition was 26.6% below a conventional home sale in the US.
The average price for a damaged foreclosed home was 62% less than the conventional home sale in the US.
There is plenty of distressed property in the current inventory. I would not be surprised if 2012 was another year of large amounts of distressed property sales.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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, December 10, 2011
Home Vacancy And Home Ownership Rates: Homes For Sale: Homes For Rent
The US Census Bureau put out some interesting housing data recently. I will comment on two areas: home vacancy rates and home ownership.
Vacancy Rates
The number of vacant homes increased 44% during the decade of the 2000s. Home vacancies were about 15 million in 2010, up from around 10.4 million in 2000.
The 15 million vacant homes represents about 11.4% of all the housing units in the country. These units represent almost the total amount of new homes built during the decade; the US increased the number of housing units by 16 million in the 10-year period, according to the US Cencus Bureau.
During the past decade, Florida's home vacancies increased 62%, Arizona 61%, Georgia 63% and Nevada 120%. As a percentage of total homes in the market, the top three states were: Florida had about 17.5% vacant, Vermont was at about 21% and Maine was highest at about 23%.
Home Ownership Rates
Home ownership saw the biggest drop since the Great Depression in the US. Home ownership was 65.1% in April 2010, which was about 1.1% below the rate in the year 2000. The biggest decade drop was 4.2% in the 1930s.
The real story is home ownership dropped almost as low as the great depression at about 4%. The percentage decline was about a 4% drop in the six year period from 2004 to 2010; this compares to the 1.1% drop for the decade 2000-2010 (as referenced above). Home ownership was almost 70% in 2004, according to the US Census Bureau, and fell quickly in the last 6 years of the decade ending 2010.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
Vacancy Rates
The number of vacant homes increased 44% during the decade of the 2000s. Home vacancies were about 15 million in 2010, up from around 10.4 million in 2000.
The 15 million vacant homes represents about 11.4% of all the housing units in the country. These units represent almost the total amount of new homes built during the decade; the US increased the number of housing units by 16 million in the 10-year period, according to the US Cencus Bureau.
During the past decade, Florida's home vacancies increased 62%, Arizona 61%, Georgia 63% and Nevada 120%. As a percentage of total homes in the market, the top three states were: Florida had about 17.5% vacant, Vermont was at about 21% and Maine was highest at about 23%.
Home Ownership Rates
Home ownership saw the biggest drop since the Great Depression in the US. Home ownership was 65.1% in April 2010, which was about 1.1% below the rate in the year 2000. The biggest decade drop was 4.2% in the 1930s.
The real story is home ownership dropped almost as low as the great depression at about 4%. The percentage decline was about a 4% drop in the six year period from 2004 to 2010; this compares to the 1.1% drop for the decade 2000-2010 (as referenced above). Home ownership was almost 70% in 2004, according to the US Census Bureau, and fell quickly in the last 6 years of the decade ending 2010.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
Thursday, December 8, 2011
Case-Shiller Index: September 2011: Slight Downward Trend Continues: Homes For Sale: Homes For Rent
The September 2011 Case-Shiller Index on housing showed a similar trend of slight price reductions. The nation experienced a home price decline of about 3.5% year-over-year in September and about 0.5% sequentially.
The South Florida market saw a 4.0% year-over-year decrease in September 2011 and a 0.7% drop on a sequential basis.
Most tend to agree an improved job market is needed in order to get some positive movement on home prices in the US.
Washington, DC area continues to outperform the rest of the country. The federal government is one area where spending has continued and that is where home prices are on the rise. I think this is more than just a coincidence. The rest of the country needs to experience private sector job growth in order to get things moving again, in my view.
Other areas of interest:
September 2011 September/August August/July
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 154.39 -0.8% -0.1% -1.2%
Chicago 118.49 -0.8% 1.4% -5.0%
Miami 139.83 -0.7% -0.3% -4.0%
Minneapolis 114.65 -0.9% 0.3% -7.4%
New York 169.92 0.1% 0.5% -2.6%
Tampa 127.37 -1.5% 0.0% -6.7%
Composite-10 155.73 -0.4% 0.2% -3.3%
Composite-20 141.97 -0.6% 0.1% -3.6%
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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 South Florida market saw a 4.0% year-over-year decrease in September 2011 and a 0.7% drop on a sequential basis.
Most tend to agree an improved job market is needed in order to get some positive movement on home prices in the US.
Washington, DC area continues to outperform the rest of the country. The federal government is one area where spending has continued and that is where home prices are on the rise. I think this is more than just a coincidence. The rest of the country needs to experience private sector job growth in order to get things moving again, in my view.
Other areas of interest:
September 2011 September/August August/July
Metropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Boston 154.39 -0.8% -0.1% -1.2%
Chicago 118.49 -0.8% 1.4% -5.0%
Miami 139.83 -0.7% -0.3% -4.0%
Minneapolis 114.65 -0.9% 0.3% -7.4%
New York 169.92 0.1% 0.5% -2.6%
Tampa 127.37 -1.5% 0.0% -6.7%
Composite-10 155.73 -0.4% 0.2% -3.3%
Composite-20 141.97 -0.6% 0.1% -3.6%
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
Delray Beach, Florida: Country Club: Addison Reserve: Homes For Sale: Homes For Rent
The Addison Reserve Country Club in Delray Beach, Florida recently renovated its club to the tune of $18 million.
In order to fund the $18 million upgrade, club members paid $18,000 each. The clubhouse is now 70,000 square feet as members added 20,000 square feet to the existing clubhouse of 50,000 square feet.
Among the changes is new restaurants, a tapas bar, lounges, a wine room and upgraded HDTVs (10 in total). The five restaurants are based on themes that include a seafood and steakhouse, a bar / lounge, an Italian restaurant. The club also welcomes chefs Daniel Boulud and Zach Bell, which helps to upgrade the stature of the restaurants.
Addison Reserve is a luxury community with 718 homes, which range in price from $400,000 to $3 million. The membership dues are $115,000 for golf members to join and $85,000 for sports members to sign up. The annual dues are $20,000 for golf and $15,000 for sports.
For more information on Addison Reserve you can go to their Web-site or contact me directly. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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
In order to fund the $18 million upgrade, club members paid $18,000 each. The clubhouse is now 70,000 square feet as members added 20,000 square feet to the existing clubhouse of 50,000 square feet.
Among the changes is new restaurants, a tapas bar, lounges, a wine room and upgraded HDTVs (10 in total). The five restaurants are based on themes that include a seafood and steakhouse, a bar / lounge, an Italian restaurant. The club also welcomes chefs Daniel Boulud and Zach Bell, which helps to upgrade the stature of the restaurants.
Addison Reserve is a luxury community with 718 homes, which range in price from $400,000 to $3 million. The membership dues are $115,000 for golf members to join and $85,000 for sports members to sign up. The annual dues are $20,000 for golf and $15,000 for sports.
For more information on Addison Reserve you can go to their Web-site or contact me directly. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at www.langrealty.com/agents/michael-friedman
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
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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