What's Your Credit Score?

Now, more than any other time, you need to have a great credit score. Not only does good credit affect whether you qualify for a home mortgage, it impacts what you pay for insurance, whether you get that job you've applied for or whether you need to put down a deposit for utilities.

It will also affect the interest you pay for your mortgage, credit cards and car payment.

The Thomson Team at Exit Island and Beach Realty are offering a free service to our clients that will enable them to improve their credit score. Whether they are trying to buy their first home or trying to obtain the best interest rate, this service will help them acheive their goals.

The best part, we are offering this exclusively to our clients absolutely FREE!

For more information or a confidential discussion regarding this service, call The Thomson Team at 321-360-8051 or email sherylthomson@hotmail.com.

2009 Taxable Vaues Decline in Brevard County

Let's not dwell on this point, but Jim Ford, C.F.A., the Property Appraiser for Brevard County just released the preliminary tax roll for 2009.

The county wide market value is $59.2 billion for 2009 which is a decrease of $9.3 billion from 2008. Of course much of this is attributable to the declining real estate market and in particular the decline of new construction. In 2007, new construction added 1.8 billion to the tax rolls and in 2009 just 444 million. Wow, that's the lowest since 1999!

I would offer that the silver lining in this cloud is a reduction in property taxes, but chances are, if there is a reduction, it will be minor.

Condos in Celebration, FL are being Sold at Auction

This is a great opportunity to purchase a luxury condo at rock bottom prices in popular Celebration, FL. 10 units are being sold at absolute auction and opening bids start at $95,000! Original list prices started at $271,000 and went as high as $402,000. This what they mean by paying pennies on the dollar.

Celebration is a planned community close to Disney and all the attractions and a quick drive to Orlando International Airport. If you frequent the Orlando area, consider purchasing one of these condos instead of paying hotel fares. A great investment that will continue to build equity and a vacation getaway for the whole family.

For more information on this auction (coming soon) contact me at sherylthomson@hotmail.com or respond to this post.

Business is Great! Thank you for asking.

A lot of people are surprised when they ask me "How's the Real Estate Business?" and I say great! They often respond by saying they have heard that there are still a lot of short sales and foreclosures. And of course they are right! But that is why business is so much better this year than it has been for the last two years.

Most buyers put their real estate purchases on hold in 2007 and 2008 anticipating dropping prices, and that proved to be a very smart decision. These same buyers have now recognized that we are bottoming out this year and now is the time to buy!

Not only have prices bottomed out, many are artificially low due to the tremendous volume of foreclosures and distress sales (this is a local phenomenon and doesn't affect every neighborhood). So the chance to build equity has increased even more.

Another unexpected bonus is the $8,000.00 tax credit for buyers who have not owned a home in three years. The government sweetened that deal by telling buyers who qualified for the credit that they don't even have to pay it back if they stay in the home for three years! Wow!

The icing on the cake is that interest rates have remained at near record lows making home ownership possible for buyers who never thought they could afford a home.

So yes, business is great, pass the word!

Short Sales and the Second Mortgage Dilemma

I have recently encountered a new twist in short sales and second mortgages. Although it is often difficult to get approval from a second mortgage holder, now it appears they are insisting that the owner sign a promissory note to pay back the second (or a portion of the balance). Especially if you took out a second mortgage or equity line to purchase or finance items such as cars, vacations, furniture etc.

Now you may be infuriated that your short sale will not go through if you do not sign the promissory note, but on the other hand, most promissory notes are 0%interest over many years, making the payments fairly affordable.

If you do not agree to sign the note, chances are you will lose the home to foreclosure and both the first and second will probably try to collect the deficiency after foreclosure.

As always, before you make any decision you should consult an attorney or accountant to determine the best course of action for you.

$8,000 Tax Credit Expires Sooner Than You Think!

First time homebuyers are running out of time to take advantage of the $8,000.00 tax credit the government is offering. (This means all of you who have not owned a home in three years)

And if you stay in your home for three years, you don't even have to pay it back!

This once in a lifetime offer expires on December 1, 2009, which means you MUST CLOSE ON YOUR NEW HOME by November 30, 2009!

I know what you are saying, you're saying Sheryl, thats more than 4 months away, I have plenty of time. Well, no you don't. First of all, if you are interested in buying a short sale, you need to be under agreement now or else chances are you will not have approval in time to close in November. Secondly, there are multiple offers on well priced foreclosed homes. We have seen buyers lose out on many deals because they were out bid. It can easily take a couple of months to find the right home. And lastly, it now takes an average of 45 days to get a home closed (providing there are no last minute glitches).

So, now you can see that you really only have a few weeks to find your dream home and take advantage of the $8,000.00 tax credit.

To see all homes in Brevard County go to: http://sthomson.servingbrevard.com

Luxury Homes Languishing

An interesting article written by the Associated Press and published on MSNBC.com discusses the slowdown in the luxury home market. According to the National Association of Realtors there is a 40 month supply of homes priced over $750,000.

I wondered if our inventory of luxury homes in Brevard County shared that same statistic, so I did a little research.

In fact, we have sold 53 luxury homes since January 1, 2009, but still have 463 luxury homes currently on the market. That equates to approximately a 38 month supply with average days on the market 247.

A quick snapshot of the number of luxury homes sold in previous years in Brevard County:
2008 117 luxury homes sold
2007 148 luxury homes sold
2006 220 luxury homes sold
2005 322 luxury homes sold

(all statistics taken solely from the Brevard County, FL MLS)

According to the AP article, a big reason for sluggish high end home sales is the lack of availability of jumbo loans. Fannie Mae and Freddie Mac, the government backed mortgage lenders can not purchase mortgages above $729,500, so jumbo loans must be held in house by lenders. For this reason, lenders who do offer jumbo loans also charge a higher interest rate than a traditional 30 year mortgage.

However, despite the higher interest rate, if you are in the market for a luxury home, since prices have declined so dramatically, you will also pay less in taxes and insurance. And you will be buying at the bottom of the market, so the opportunity to build equity is that much greater.

To view all our luxury homes in Brevard County click on: http://sthomson.servingbrevard.com/

To read the entire AP article click on: http://www.msnbc.msn.com/id/31782625/ns/business-real_estate/ns/business-real_estate/

Another Buyer Walks Away From A Short Sale!

Buyers, I know this is your market, but for heavens sake, if you want a really good deal you have to wait for it! You can't put in a ridiculously low offer on a short sale and expect the lender to jump through hoops to lose tens of thousands of dollars. They really are not that motivated to lose money.

I know, the rationale is that they will end up foreclosing and losing even more money, but short sales are just not that simple. Since most mortgages have been sold and re-sold, then cut up into securities and sold again to many different investors, all investors involved must agree to the short sale. And if and when that happens, it will take a considerable amount of time to complete the process.

So the next time you decide to purchase a short sale, evaluate the market and offer fair market value and then be prepared to wait (yes, 90-120 days is typical). I guarantee, you will be richly rewarded for your patience.

Why Wouldn't You Want Top Dollar When Selling Your Home?

No matter what type of Real Estate market we are in, the most desirable homes always sell fastest and for the most amount of money. And now that we are in a buyer's market it is crucial that your home is in tip top shape. Trust me, buyers are seeing a lot of distressed properties, and when they finally see a fabulous home in move in condition, they are ready to buy!

1. Curb Appeal: Keep your lawn mowed and trim all shrubbery. Put down fresh mulch and plant a few flowers. Power wash your home and put a fresh coat of paint on your front door.
2. Interior: First of all, declutter your home. Have a yard sale and get rid of anything you no longer use. Rent a portable storage box and pack away all those chotchkies and items that you do not use on a regular basis. Arrange all closets so they are neat and orderly.
3. Clean, Clean, Clean: Now that the house is clutter free, its time to clean and I mean everything. Ceiling fans, walls, stove, refrigerator, flooring, windows and bathrooms.
4. Touch up and Repair: Patch and repair any holes in the walls, caulk tubs and sinks, make sure all doors and windows operate properly.
5. Pleasing Aromas: You've heard this before, bake some chocolate chip cookies or bake an apple pie to make your home smell enticing! If these ideas are too laden with calories, then plug in some air fresheners...vanilla or citrus works well.
6. Showing Time: Open the window treatments and turn on the lights. And turn on a little soft music.

It doesn't cost much to get your home in prime condition. A little time and sweat equity will help you achieve top dollar!