Big Bank Burnout

With many people still feeling burned by the “too big to fail” bank bail outs, credit unions and smaller community banks have become a very appealing alternative. I had the good fortune to open an account with MIDLFORIDA credit union here in Vero Beach and I have been very impressed with the level of service and the banking products that they offer such as: free checking, free business checking, free debit card rewards, free eStatements, free online banking, free mobile banking (iPhone and android), 7am – 7pm drive-thru and help desk hours, Saturday hours and more. All it takes is opening a $5 savings account to join. And, of course, they offer home loans among their many other loan products.

What a great alternative to the “Big Banks”!!!

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc

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Fischer Lake Island, Sebastian, Florida

This relatively small subdivision is located near the public canoe launch for the Sebastian River, not far off Indian River county road 512. One of its attractive features is a long, beautiful lake and 1/2 acre or larger lots. The lot boundaries actually extend into the lake for the lakefront lots. The Indian River lagoon is only about 5 minutes away and it will take about 15 minutes to get to the beach. There are still lots for sale as of 2/12/2013. One of the more curious restrictions for this subdivision is that homes must be built with a garage that is located on the side of the house. The community has a gate that can be opened with remote control or keypad/intercom box.

Barry Trammell, Realtor                          

Dale Sorensen Real Estate, Inc.

Instant Buyer’s Remorse

This is a term that I have coined myself (borrowed from the phrase “instant karma“) to describe a situation that I have encountered a few times. When a buyer begins to doubt themselves shortly after they have a property under contract I call it “instant buyer’s remorse“. I know that, technically, the buyers have not bought anything yet but I feel this is the best way of describing this phenomenon. Major purchase decisions such as buying a house or a car can be stressful. Some people begin to doubt their decision before everything is finalized and they have fully closed the purchase. Should they have negotiated more aggressively, did they start their opening bid low enough, should they have asked for seller’s concession (or a larger concession), did they ask for needed repairs, etc.,…..It is without a doubt a major decision when purchasing a home but if you do your homework, hire a good agent, have a thorough home inspection and appraisal done (with an appraisal contingency in the contract) you should be in good shape.

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc.

San Sebastian Springs

San Sebastian Springs is a strikingly gourgeous subdivision in Sebastian, Florida. It is one of several communities developed by Henry Fischer. The neighborhood features a tennis court, winding roads, natural trees and foliage, small lakes/ponds, private access (including boat ramp and day dock) to the Sebastian River, spacious homes on 1/2 acre or larger lots and family friendly neighbors . It is right off of Indian River county road 512 about 5 minutes from the Indian River lagoon and about 15 minutes from the beach. The streets have colorful names such as Cross Creek, Blue Island and Fischer Hammock.

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc.

 

The Remorseful Buyer

You have just moved into you new ( maybe just to you) dream home. Or, is it really your dream home? Was something else on the market that you missed? Should you have waited a bit longer? The kitchen is a bit smaller than you originally thought.

These feelings are quite common and are known, to industry insiders, as buyer’s remorse. Doubts and concerns about a major purchase – buying a house is a MAJOR purchase – are perfectly normal. For large majority of people buying a home is buy far the largest purchase that they make in their lifetime. The best cure is to focus on what you love about your new house. Think of all the things that made you want to buy it and be happy!!!

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc

The Final Walk-Through

You are about to head to the closing table, a very exciting moment and likely both an end and a beginning. There are things you need to remember; two forms of ID – drivers licence, SS card, credit card. Make sure you have them with you. Do you have the final amount that you will need for closing? Either cashier check or better yet, just wire the money from your account into the closing agents account. You have it all in order now. Are you forgetting anything? Yes, the final walk-through. You will want to make sure everything is still okay with the house you are about to own. Imagine that the sellers have already moved out and a pipe broke in the middle of the night. There would be extensive water damage and you would own it. If you find that out on the walk-through it would be the seller’s problem. Also, are the sellers moving out-of-state. You will want to be very observant and have a checklist in your final walk-through as I have seen sellers take lightbulbs, under sink water treatment systems, closet shelving and even a hot water heater. In short, do not neglect your final walk-through and look around with an eye for detail.

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc.

Credit Is Tight

We have all heard the phrase in the news over the last 5 years or more, “credit is tight”. What does this mean and how does it affect you when you are buying or selling a home? When credit is tight (not good but much better than “credit is frozen”) underwriting departments are much more likely to scrutinize every document that gets sent to them with regards to a clients loan. Underwriting standards (income/debt ratios, documentation of finances and employement, income verification, etc.,..) can be more difficult, thereby restricting the number of qualified borrowers. All this has a pronounced effect on both the general economy and peoples personal finances.

The keyword is patience. When things become more difficult and you have limited control over the outcome of certain events you have to go with the flow.

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc

Underwriting – One more thing needed!!

With lenders still feeling the pain of the housing collapse, getting a home loan (and closing on a home) can be a trying task for a buyer. It seems as though they always want at least one more thing, which often makes it necessary to ask for contract extensions. Who are these people asking for an ever-growing mountain of paperwork? Why do they want all this paperwork (and your first-born)? Welcome to the lender’s underwriting department. These are the people responsible for making sure the lender does not make a bad loan. When a lender makes a loan they almost always intend on selling it (95% or more are sold). If they do not do their due diligence during the underwriting process they could have a loan that they cannot sell or they could be required to buy the loan back. That is very bad for their business.

Now, if you are intending on buying, or if you are selling (as your buyer willing like be getting a loan) you will know what to expect and know why you are being asked for documents, even up to the day of closing!!!

Knowing what to expect helps reduce the stress of buying or selling a home!!!

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc

Short Sale – BPO

As with many professions, real estate has its share of acronyms and jargon that can confuse the “uninitiated”. One acronym that is important to the short sale process is the BPO. This stands for the Broker’s Price Opinion. What does that mean? The short selling bank wants to know what the value of the property is that they are allowing the borrower to sell in a short sale (remember the bank is not selling the property). They will pay a real estate agent not involved in the transaction – not representing either the seller or the buyer – to give an opinion of value with supporting comparable sales data. In a nut shell, that is the BPO.

I hope you feel just a bit better informed!!!

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc

Shadow Inventory

What is “shadow inventory”? Sounds scary. Isn’t Halloween over? Actually, shadow inventory is slightly scary. It is referring to real estate, namely houses, that are in some state of the foreclosure process, hence, lurking in the shadows and preventing home values from appreciating significantly. There is some comfort in the fact that foreclosure filings are on the decline in most areas but there remains a distinct possibility of a 3 to 5 year time span to clear all this “shadow inventory” off the multiple listing service systems and for the return of a more “normal” real estate market. The good news is that, with all the pent-up buyer demand many cities of the country are experiencing high demand, reduced inventory and price appreciation even with homes still “lurking in the shadows”.

Here in Vero Beach and Sebastian (Indian River county, Florida), where I list and sell real estate, we have had a stable market with reduced inventory and reduced time on the market for most listings. We seem to be poised for a market turnaround.

All in all, even with housing inventory that will be working its way through the court system for the next several years things are looking up for real estate!!

Barry Trammell, Realtor

Dale Sorensen Real Estate, Inc.