Tampa Bay Real Estate Agents and Pinellas Realtors® like us that are producing results in this market understand how the rules of the game have changed for 2012 and why savvy home sellers and their agents are SO darned fussy about mortgage pre-approval letters lately.  If you will be in the market for a home soon, this may want to make you cover yours ears, but it’s critical information to know.

Why Tampa Bay Real Estate Agents Are So Fussy – Part A

Beware that today even buyers with top credit scores and ample savings have to undergo a LOT of scrutiny to get a mortgage.  We often joke that it doesn’t matter if  you’re Donald Trump, you ARE going to have issues come up during underwriting, and so smart home buyers should get their ducks in a row before starting to look for homes – even online.  Trust us, even people with 780 credit scores routinely get last-minute questions and requests for documentation from underwriters.  In fact, more often than not, the better off your are financially the more complicated it can be.  Huh?!   Let’s make sense of it ….

Tampa Real estate agents and home Sellers are rightfully fussy about your loan pre-approval – and here’s why you should be, too.  Whether you’re just beginning your home hunt or perhaps just submitted an offer on a home with your pre-approval letter in hand, you might be getting what seems like a million questions from your agent or the seller’s agent about your choice of lender or pre-approval letter.  I’m rock solid financially, why don’t they just back off and stay out of my personal business, already?!?

Well, the reality is that many of these so-called approval letters aren’t worth the paper they are written on!

How in the world can that happen?  Can a mortgage broker or bank really issue a pre-approval letter and tell me everything’s great and it’s really a big fat lie?  Very easily.  In their haste to lock in a customer quickly, most lenders today still will tell you what you want to hear without obtaining the necessary documentation from you.  Either they don’t want to scare you off at first meeting by prying to much or don’t want to invest the time with you to collect it – often times before you’ve even found a house or professional Tampa Realtors® like us to assist in that process.

So, the actual letter itself gets issued, you feel good, but is essentially worthless at this stage of the game- whether it’s a “Pre-Qualification” letter OR a “Pre-Approval” Letter.   The key thing to know is that it’s the Pre-Approval letter you’re after, and if you didn’t have to submit ALL of your financial documents and sign a formal credit application in order to get that letter, then it’s not worth the paper it’s written on.  And here’s the clincher – you may have been quoted an interest rate and terms, but NO lender can truly quote rates and terms without pulling your tri-merged credit report, personally verifying your employment history and reviewing ALL of your supporting documentation to ensure you’ll truly qualify!

A savvy lender is going to know what underwriters are looking for and will take the time to review all of your documentation.  Then, they’ll invariably have MORE questions, and might need more documentation to back up the potential red flags the underwriter WILL find.

They’ll be scrutinizing ALL of your banking account deposits and withdrawls, your retirement accounts, your other assets including real estate, your 401K, your tax returns, your marital status and any recent changes, child support payments, credit card account statements, your debt to income ratio and your credit history, and a few other things possibly, too.

Is This a Fun Process?  No!  Yet it’s nothing to be scared of and at the end of the day you’ll be glad you faced it head on BEFORE home hunting.

Feel free to start your Tampa Bay home search here or give us a call at 727-366-0325 if we can assist or refer you to some terrific Tampa Bay lenders.  And stay tuned for Part B of “Why Tampa Bay Real Estate Agents are SO Fussy – Part 2″ where we’ll detail the differences a pre-qualification and a pre-approval and how to get a Pre-Approval that’s worth the paper it’s written on and save yourself a LOT of grief!

If you need to find a Pinellas Realtor to sell your home, there are over 5,000 to choose from.  The majority of those agents aren’t working in the business full time – or at all.  About half of those left are Pinellas Realtors that don’t regularly list and sell homes (they prefer the ease of working with buyers).   So, of those left that do represent home owners, how do you find a Tampa Bay listing agent that you can trust to get your property sold?  How does one find that agent that actually does something differently than the herd to market your home? 

Mark’s Story:  A Typical Homeowner’s Search for an Agent

We recently received a call from Mark who had a Clearwater townhome for sale For Sale By Owner or “FSBO” for a few months.   He liked reading our testimonials from other happy clients and wanted to discuss listing his home  for sale with us.  He was frustrated and had talked to a couple of other agents before calling us.  They all said they could list his property in the MLS and help find him a buyer – yet – something about the other agents’ presentations did not feel right.  He felt like he was just another guy and his property would be just another listing in the MLS.  He didn’t feel like he would be given the special attention he deserved.

When we met with Mark, we asked him what was most important to him about the sale of his property.  Aside from getting a good feel about us as people, he wanted results and he needed them fast as his employer would be relocating him at the end of this year.   So, we listened to his needs, and shared how we could meet and exceed his expectations.

We then shared with Mark that THE KEY difference between hiring a regular ‘listing agent’ and hiring professionals like us is that we are MARKETING AGENTS who create strategic property marketing plans with the key purpose of getting extreme exposure while defending homeowner equity.    You see, we shared with Mark the truth behind what your standard ‘listing agent’ does:  They take a few pictures of your home, perform the data-entry into the Multiple Listing Service “MLS” online and then let their broker’s feed do the rest automatically without personally having to do much else.  (This automation is called ‘syndication’, and while it’s terrific, it’s by no means the end all when it comes to marketing.  And, don’t get me started, but there are quite a few companies in Tampa Bay that don’t even offer basic syndication, or certainly not extensively and internationally, too).

So, we shared our complete marketing strategy with Mark, the many things we personally do that are extra and beyond what REMAX International (the #1 brand in real estate) does.  And we clearly demonstrated how these tactics are the key extra tools that only Marketing Agents know how to implement – and take the time and expense to implement!   Mark decided having a Marketing Agent was important to him, took action and listed with us.

Tips for Finding a Marketing Agent

Few agents are full-blown Marketing Agents, and many aren’t even familiar with the term or what it entails, let alone what technology and other skills are required to be one.   We predict that someday the tactics of today’s new field of Marketing Agents will become mainstream, but we’re probably years away from that – and by which time the true Marketing Agents will be once again one step of the herd with technology and innovation.  We’ve learned from the brightest and the best out there across the country – so we’re the first to say that we didn’t invent the concept or the techniques we employ to sell homes, yet there aren’t many of us, and we know we have our own special recipe and twist on that just for Tampa Bay.  So please do your homework and find yourself an agent that’s a step ahead AND someone you’re comfortable with…

First, be sure to ask your agent what specific marketing he or she does that’s EXTRA, not just what their company does – and have them differentiate the two!  Ask them to show you examples of each.  If you get that ‘deer in the headlights’ look, run for cover!   While you’re at it, it’s important to ask for proof of how many homes they’ve sold this year, or even their overall ranking within Pinellas County or Tampa Bay.  Ask for references.  Yet, above all else, find yourself a Marketing Agent and not just a listing agent!

The Happy Ending to Mark’s Story .. In 11 Days

We got Mark’s home under contract in exactly eleven days, with all paperwork signed and delivered in twelve days!  Our marketing plan delivered two offers (having two offers almost always drives up one or both offers), and Mark is closing on the sale of his property just before Christmas.   He’s moving on to his new adventures worry-free and doesn’t have the stress of paying for two homes (plus property taxes and insurance) in two states at once.

Mark’s story has a wonderful ending – and if you follow these tips for interviewing agents about their marketing and results- yours can certainly have a happy ending, too.

As Pinellas Realtors, we know that happy endings are what it’s all about!

The Pinellas real estate results are in for 2010 and these Pinellas Realtors are still crunching numbers to make sense of this incredible market.   Admittedly, doing so is about as fun as scrubbing a toilet.  Yet the results are a LOT more exciting than having a tidy bowl. 

Pinellas Realtors Revealing 2010 Statistic Ah-Ha’s

• Pinellas short sales and foreclosures accounted for almost 1/2 of all sales when a year ago they accounted for 1/3 of all sales.
• Total sales volume went up 14% while dollar volume went down 27%.
• Median single family home sales prices dropped 11%. 
• Median condo sales prices dropped 19%.
• The best performing price range in  condos and single family sales is between $100,000 and $140,000. 

What’s the outlook for the Pinellas real estate market?  Foreclosures and short sales will continue to dominate 2011 as banks are expected to begin releasing their shadow intentory reserves 1st and 2nd quarters of this year.

Related Posts:

Pinellas Waterfront Homes for Sale and Surprising Statistics

There are 156 North Pinellas County waterfront homes for sale on the gulf or on canals leading to it with prices from $202,000 to $5.9M (with 1/3 over $1M).   This may be surprising, though these Pinellas Realtors are holding steadfast with their prediction from 2009 that ‘entry level’ Pinellas waterfront homes were holding their own when it comes to price  – and, well, they still are.  

This slice of the Pinellas market is defying the overall market trends!   The Pinellas board doesn’t publish these numbers, sadly, though because we’re water babies we crunch the numbers as a labor of love.  So, check back with us soon as we’ll be looking at other price points for Pinellas waterfront homes.  As for this under $300K category, at the beginning of 2010, the average sales price was $184/sf, down to $174/sf  in April, up to $185/sf in June, up to $190/sf in August, and in September they were holding steady at $181/sf.    Meanwhile, the active inventory is down by 35%.

So, Peach Heads (HA! I just came up with a new name for you all!), if you’ve been waiting for a sign from the heavens to make a move on that entry-level gulf-access home, consider this post as the next best thing to it.

There are plenty of Pinellas Realtors® to choose from.   There are 12,498 homes for sale in Pinellas County on the MLS.  And the Pinellas real estate agent you hire can make or break your dreams.  

Would you take a plane ride with a pilot without formal training?  Or worse, what if he was distracted and Tweeting and texting in the air?  This

Click here to view the embedded video.

Who will you choose to land your plane?  If you don’t hire an agent as a “Single Agent” with a fiduciary responsiblity to you – and only you – well, you might not die because of a crash landing.  Though you’ll likely overpay, undersell – or not even close on that transaction at all. 

Trust me, there are PLENTY of transactions out there today NOT closing for mind boggling reasons.  Hiring the right Realtor® can make our break your dream.

Pinellas County home values have declined.  Sorry Mr. Seller.   On the upside, there are 11,739 homes for sale in the Pinellas MLS.  In May, 1,289 of them sold.  That translates to an 11% absorption rate which is fantastic news for sellers in that homes marketed effectively and priced right ARE selling faster than they have in years.   But (everything after ‘but’ stinks and Sellers you might not like this), if you’ve got a home to sell in Pinellas - take heed as to what buyers REALLY want now:

1. They always want “a great deal”.   Translated:  Value.
2. Value.
3. Value.
4. Everyone’s downsizing.  It’s the new chic.  If you have a house with extra square footage to romp in – buyers see it as a minus.  Gone are the days when extra room was a good thing.   Now it’s an extra added expense in utility bills and upkeep. 
5. Value.
6. Updated kitchens and bathrooms.  If they ALL don’t have modern fresh cabinets, counters and flooring – then our price better reflect that.  It’s the SINGLE difference – aside from price – that gets buyers to write an offer.  
7. Value.
8. Our palatial mansion is going to be up against the small shack next door.  In many ways, the shack next door is more appealing, if it’s clean, well-staged and offers the same basic features.
9. Value.
10. Did I mention that it’s all about value?  In a buyer’s eyes – value is price versus what they get out of a home.   They want home to feel good.  Are there just enough bedrooms for little Johnny, Jack and Jill?  Maybe Johnny and Jack can share a room.  Terrific!  Is the back yard big enough for a game of catch?   Maybe it does’t need to be big enough for that swingset -because the park is only 2 blocks away and who needs one anyway?  In challenging economic times why over-extend?    

Gone are the days of bigger, better and bragging.  ‘Rightsizing’ is in.  Right pricing is critical.  And here’s more of the ugly truth – even if our home for sale has all of those things – and is being marketed with the most aggressive plan out there – if we aren’t getting 7 to 10 showings per WEEK or offers - we aren’t at the right price.

Buyers – what say you?  Is there anything we missed here?  Help our sellers out by sharing what it is that’s important to you!

Buying foreclosure homes for sale in Pinellas County isn’t always what it’s cracked up to be.   As Pinellas Realtors we strive to make the buying experience a ridiculously happy one, yet buying foreclosures can be gut-wrenching.  Watch out for these ….

Top 4 Dangers in Buying Foreclosure Homes for Sale In Pinellas County

1. We might not close.  There’s a new dangerous and unscrupulous trend now where banks aren’t getting clear title (from outstanding liens and deed-in-lieu sign offs from Sellers) before listing Pinellas County homes for sale.  We’ve experienced and also heard about this first-hand from several insiders at several well-known banks and closing attorneys that represent these banks.  In other words, they are sometimes offering properties for sale that have no business being on the market!
2. We might not close on time.  Same explanation as above.  We recently represented a wonderful buyer who HAD to be in her new home by a certain date – and the closing was delayed over THREE weeks.  Trust me, the pain she went through due to the delay – not to mention the stress of not knowing IF we would even close - was unbelievable.   I can’t stress enough why it’s so important to have Pinellas Realtors that will go the extra mile for you.  In this case, it took contacting the CEO at a massive firm – and everybody else there – about 10 times a day – every day - to finally get it done.
3. You’ll ALWAYS have to pay extra fees that are paid for on ‘regular’ and short sale properties.  These include normally paid for by seller title insurance, state doc stamps (taxes) and other title fees.   This is a significant extra expense that can be easily made light of by your buyer’s agent and certainly the selling institution.  Make sure you get an estimate of these costs prior to signing any contract.
4. Almost ZERO contract protection.  The standard FARBAR and FAR contracts have ample protections for buyers regarding inspections, property defects, disclosures, clear title, etc.   However, bank REO contracts can not be altered in ANY way.  We have to take what they dish out – and trust us, they are all in the bank’s favor.  

Absolutely, there are great buys to be had buying foreclosure homes for sale in Pinellas County, yet let the buyer beware.  If you have questions about the process, these Pinellas Realtors would be glad to chat with you.   Feel free to contact us with questions. 

By the way, the truth is that a ‘regular’ sale home can often be a better buy than a foreclosure or a short sale – it just all depends!!   We see it all the time and feel free to ask us why.  We’re here to help.

About 40% of the homes for sale in Pinellas County are being sold for cash.  And half of those sales are to investors.  Pinellas MLS statistics indicate that home sales are up 38.3% over this time last year.  WOW! 

Sand Picture Taken by Accident Somewhere in Florida That Has Absolutely Nothing to Do with this Post!

I just enjoyed a Business Week article by Prashant Gopal.  In it, she (or help me Peach readers is that a “he” name?! – I digress – sorry…) Anyway, SHE OR HE quotes that  Richard C. Davis of the TV show Flip This House as saying

“Everybody made money on the way up.  Then the market turned.  Amateur hour is over.”

It reminded me to remind you that now is when the experienced, serious investors are buying up the homes for sale in Pinellas County.  Because it’s a great time to buy!

Feel free to start your Pinellas MLS search with Realtor access.  Or give us a call at 727-366-0325 and we’ll do it for you!

If you’re looking to finance a Pinellas short sale or Pinellas foreclosure and have 3.5% for a down payment, then an FHA loan is your ticket to home ownership.  The FHA is not a lender, nor do they set interest rates.  The Federal Housing Administration is a federal government agency (a division of the U.S. Department of Housing and Urban Development, or HUD), that offers mortgage insurance on loans originated by their approved lenders.   In a nutshell, it’s insurance that protects the lender in case the borrower defaults.

The FHA was created in 1934 after the Great Depression, and was widely popular until recent years when subprime lenders offered something seemingly better:  artificially low interest rates, no-interest payments and a false dream.  Daily, lender requirements are becoming more and more stringent, and, as a result, FHA loans are once again commonplace and the only vehicle for many to own their Duendin homes.

Advantages of an FHA loan include:

• low 3.5% down payment and closing costs
• gifts from family members, employers or charitable organizations are welcomed
• minimum credit scores are lower than for conventional loans
• lenders will consider payment of rent, utility bills and auto insurance premiums when evaluating the applicant

But Whoa! Hold on, there’s a tiny downside ….

• There’s a 1.75% of the loan amount premium that can be wrapped into the full loan term or paid at closing, regardless of their credit score
• You’ll pay an Annual Mortgage Insurance Premium or MIP.  It’s based on your loan-to value (LTV) ratio, which, if you’re putting 3.5% down, would be .55%.  Example:  $200,000 loan x .0055 = $1,100 divided by 12 months = $92 per month.  Usually this will drop off after five years or when the remaining loan balance is 78% of the value of the property – whichever is longer.
• FHA loans require that a property meet certain minimum appraisal standards.   In other words, if the home needs repairs, it may not qualify for a regular FHA loan.  There are FHA 203K loans that allow for repairs, but that will be the subject of another post!

If you need a referral to a trusted Pinellas Mortgage broker or banker, contact us.   While it’s important to shop for rates and fees, it’s actually equally important to use a representative that can actually get you to the closing table in today’s complex Pinellas real estate market.

The American Recovery and Reinvestment Act of 2009 was the heavily debated economic stimulus package that was signed into law in February of 2009.  The home buyer tax credit is a component of this package and was created to promote home ownership.  The bill originally provided for an $8,000 tax credit available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  

There’s great news, however, if you’re in the market to purchase Pinellas Real Estate!  Buyers may now use the credit upfront as extra down payment money, to lower payments, pay discount points (reducing their interest rates), or to supplement closing costs.

The big “BUT” here is that buyers  CANNOT use the first time home-buyer tax credit toward the 3.5% minimum that is required of FHA insured loans.  The buyer still has to present those down payment funds, yet they can be a gift from a relative. 

The Truth About the Misinformation Currently Being Circulated Amongst the Mis-Informed: 

There’s a lot of misinformation out there saying that the $8,000 can be used for your down payment, but that’s just not the case!  It’s a convoluted mess because HUD originally released this Mortgagee Letter 2009-15, later rescineded it (the details as to why are unclear other than they realized they made a mistake), and now it’s up for public speculation as to what’s going to happen with that aspect of it.  For crying out loud, we reported last October that the FHA had just done away with all seller-funded closing costs - now they want to essentially reverse that?!  For the real facts, keep checking back, or better yet subscribe to The Pinellas Peach and you’ll be notified automatically.

Eligibility for the $8000 tax credit can be found on the IRS website.  It is always wise to consult with a tax advisor and a licensed Realtor to discuss your particular situation. At this time the key components to this upfront monetization of the $8,000 tax credit it that:

• it will only be available for FHA loans
• full documentation of income is essential
• low debt-to-income ratios are mandatory
• the buyer is still responsible for the 3.5% minimum down payment

I’m going out on a limb here, and this will probably tick some of you off, but making sure buyers have the discipline to save 3.5% for a down payment is probably a good indicator as to whether or not they’ll be able to keep up with mortgage payments in the event of an unforseen needed repair, life change, etc.  Otherwise we’re essentially back to 100% financing which is what got us all into this pickle in the first place.  100% financing with a rainy day savings account?!  Fabulous.  Otherwise, maybe it’s not time to take the home ownership plunge just yet.