We found Key West to be the closest thing to the Caribbean without leaving the US. The weather was great (although very hot in August), lots of history, pirate stories,haunted locations,great museums & art galleries, reasonably-priced restaurants,ent...
Thursday, February 24, 2011
Top 10 Beaches--Key West
Top 10 Beaches: Key West The Beach
There is always something or someone to check out while hanging on the beach in Key West.
Saturday, February 19, 2011
Key West Buyers Information
How can you find a builder?
Stepping into relationships with new home builders is similar to entering into every other method of trading. If you are building your new home from scratch, you and your builder will be in this relationship for months, and you'll spend a lot of time working together.
Builders, like other people involved in buying, selling or developing homes, possess a strong presence on the web nowadays. Visit sites like www.homesandland.com to discover listings of builders in your town and links to their own personal Sites. There, you can observe the kind of homes where the builder specializes.
You can also ask around. Family and friends may have heard the a professional builder who helped them build their ideal home.
The National Association of Homebuilders, or your neighborhood home builders association, is also ready to refer you to definitely a builder who'll construct your new home
Stepping into relationships with new home builders is similar to entering into every other method of trading. If you are building your new home from scratch, you and your builder will be in this relationship for months, and you'll spend a lot of time working together.
Builders, like other people involved in buying, selling or developing homes, possess a strong presence on the web nowadays. Visit sites like www.homesandland.com to discover listings of builders in your town and links to their own personal Sites. There, you can observe the kind of homes where the builder specializes.
You can also ask around. Family and friends may have heard the a professional builder who helped them build their ideal home.
The National Association of Homebuilders, or your neighborhood home builders association, is also ready to refer you to definitely a builder who'll construct your new home
Saturday, February 12, 2011
Mistakes to avoid when buying waterfront property
FIVE TOP MISTAKES IN BUYING WATERFRONT PROPERTY
1. Not Understanding the importance of controlling Depth.
When buying waterfront property, both the actual value of the property and it’s usefulness as to boating are governed by controlling depth.
What is controlling depth?
It is the depth at which your boat can safely get to open water at average low tide. Another way to look at it is boating draft.
For example, most sailboats have at minimum a 4 foot draft—meaning they need at least 4ft of water to safely navigate without running aground.
So-If you own a sailboat or are ever considering the purchase of one, the waterfront property you buy has to have at least 4 feet of controlling depth.
How does this affect value?
People that own 50 ft boats and larger sailboats, that require 4 to 5 foot draft, will find that neighborhoods have controlling depths of 4-5 feet or more are typically more expensive as to real estate prices.
To Consider.
Even if you don’t own a boat, you may want to buy one in the future or will possibly have friends coming to visit that do have a larger boat. So first and foremost take Controlling depth into consideration.
2. Not knowing what types of Boats are allowed.
Generally there is no problem with pleasure craft, however jet skis and commercial fishing boats can be a problem based on neighborhood (subdivision) restrictions (if any)
For example: Many boating communities frown upon Jet Skis due to the noise. If you plan on using jet skis or having friends that use them, look into any restrictions.
The same thing goes for commercial boats.
3. Not paying attention to Flood Zones.
What type of Flood zone is the home you are buying?
For example flood insurance for a home in a VE will be triple that of a home in an AE zone. So one of the first things to find out is the Flood zone and then check with a local insurance company as to costs.
4. Using outside of the area lenders.
If you are buying waterfront property in Florida and are considering a lender in Colorado, you can have a problem. Why?
Because lenders outside of the state can place prohibitive restrictions on a property.
For example, some lenders will feel that any waterfront home bought in Florida needs to be constructed of Concrete block as opposed to wood frame, due to potential hurricane damage.
Be sure to talk to Local (at least State) lenders, as they will be familiar with the area.
5. Not determining area (county or subdivision) rental Laws.
If you are considering using your waterfront home as a rental, look into the area or subdivision zoning laws as to rental periods allowed.
For example-can you only rent monthly-every 6 months or are weekly rentals allowed. Whatever the law, it will make a big difference in both ease of renting and your potential income.
These are just some of the most important issues to seriously look into. As your Agent, I will help guide you through all of this.
1. Not Understanding the importance of controlling Depth.
When buying waterfront property, both the actual value of the property and it’s usefulness as to boating are governed by controlling depth.
What is controlling depth?
It is the depth at which your boat can safely get to open water at average low tide. Another way to look at it is boating draft.
For example, most sailboats have at minimum a 4 foot draft—meaning they need at least 4ft of water to safely navigate without running aground.
So-If you own a sailboat or are ever considering the purchase of one, the waterfront property you buy has to have at least 4 feet of controlling depth.
How does this affect value?
People that own 50 ft boats and larger sailboats, that require 4 to 5 foot draft, will find that neighborhoods have controlling depths of 4-5 feet or more are typically more expensive as to real estate prices.
To Consider.
Even if you don’t own a boat, you may want to buy one in the future or will possibly have friends coming to visit that do have a larger boat. So first and foremost take Controlling depth into consideration.
2. Not knowing what types of Boats are allowed.
Generally there is no problem with pleasure craft, however jet skis and commercial fishing boats can be a problem based on neighborhood (subdivision) restrictions (if any)
For example: Many boating communities frown upon Jet Skis due to the noise. If you plan on using jet skis or having friends that use them, look into any restrictions.
The same thing goes for commercial boats.
3. Not paying attention to Flood Zones.
What type of Flood zone is the home you are buying?
For example flood insurance for a home in a VE will be triple that of a home in an AE zone. So one of the first things to find out is the Flood zone and then check with a local insurance company as to costs.
4. Using outside of the area lenders.
If you are buying waterfront property in Florida and are considering a lender in Colorado, you can have a problem. Why?
Because lenders outside of the state can place prohibitive restrictions on a property.
For example, some lenders will feel that any waterfront home bought in Florida needs to be constructed of Concrete block as opposed to wood frame, due to potential hurricane damage.
Be sure to talk to Local (at least State) lenders, as they will be familiar with the area.
5. Not determining area (county or subdivision) rental Laws.
If you are considering using your waterfront home as a rental, look into the area or subdivision zoning laws as to rental periods allowed.
For example-can you only rent monthly-every 6 months or are weekly rentals allowed. Whatever the law, it will make a big difference in both ease of renting and your potential income.
These are just some of the most important issues to seriously look into. As your Agent, I will help guide you through all of this.
Buying a Keys Fixer Upper
Distressed, Depressed Florida Vacation Properties with Potential Nick Schklair
Buying a home, whether for investment or actually planning to live there is challenging in today’s real estate market. And with current economic conditions, you may be hesitant to take the plunge, always thinking in the back of your mind, “Maybe the price will drop further!” Well, sometimes it does and sometimes it doesn’t. One general way to guard against the unthinkable price drop is by purchasing a home that has already taken a deep plunge due to its condition. Maybe the prospective investment home could be described as “shabby” and maybe there area few “rocks” under the surface, yet to be discovered by a hapless investor. At the same time, such properties may also present a real estate investor with tangible opportunities and many of these can be found down in Florida.
The Florida Market is Depressed...but Depression Sometime Spells Opportunity
While depressed values in Florida may be true, there are still attractive opportunities to be found. Among the most promising are homes and condos located in desirable vacation areas, especially in parts of Florida, like Vero Beach and the Florida Keys. We’re considering homes and condominiums that might be defined as ‘distressed properties’. Many of these could be near the beaches or waterfront areas and normally could be rented out on the weekly or monthly basis during most of the year, if they were in presentable condition.
Florida vacation properties will always be in demand by tourist regardless of the economy:
• In a weak real estate or economy, people will still take vacations, but rather than drop thousands for lavish destinations in Europe or elsewhere, Florida is still a great vacation destination.
• In a strong economy, many will still opt for Florida as a fill in or second vacation. It’s easy to get to Florida from anywhere in the U.S. and airfares to and from are typically reasonable
The Florida Vacation Connection
The areas we’re considering are located mostly on the east coast of Florida, such as Vero Beach and the Keys. Although parts of the west coast are also desirable and quite obviously this approach will certainly work there, as well. Single family homes or condos near the beach or the shore front areas will command high prices, but in today’s real estate markets, what is high anymore? This investment strategy is intriguing, but there are a few factors that must be considered.
Averting a Home Purchase Disaster
Obviously, there are dangers inherent in purchasing distressed properties. Sometimes the previous home owners never maintained the properties very well and sometimes they’ve moved out because of foreclosure and actually vandalized their own homes, rendering them unlivable. Other times, a home is just so old that modernization is absolutely mandatory. There are many reasons why a home is in substandard condition. Should this deter you from making a purchase? No, not if appropriate precautions are taken prior to finalizing on the purchase. And the price can be adjusted downward, if possible.
Also, keep in mind that real estate in Florida vacation areas will always be in relatively high demand because of its income generating potential. Unlike typical residential locales, the land in vacation areas will always have a high value relative to other areas in the sunshine state Even if a home must be practically rebuilt, this renovation will further enhance the value of the investment. Caution is the name of the game and making sure that the price is consistent with your minimum income generation expectation is your ultimate goal.
However, there are fundamental issues that must be explored and answered to your satisfaction in order to avoid a catastrophic mistake, prior to finalizing on this type of real estate transaction.
1. Question the neighbors as to what type of person the previous home owner was. If your sense after speaking with the neighbors was that the previous occupant was erratic and possibly negligent about maintaining his home, you might avoid the purchase or at least you’ll be on guard.
2. Always, always, always check out the zoning. If short term rentals are prohibited, don’t expect to obtain a zoning variance. The property, under these circumstances, can not typically generate enough revenue to justify the purchase.
3. Always use an expert home inspector that has been recommended. He should be able to sort out and identify major problems from minor problems. Once problems are identified, then they must be quantified and whether you perform the renovation yourself or use outside contractors, the cost of repair and renovation must be realistic. You should factor in a 10%-20% cost over run in determining your cost basis, to account for unforeseen circumstances.
4. If the home you’re considering purchasing is a VA repossession, attractive price and mortgage opportunities are available, including obtaining financing directly through the VA. The VA however doesn’t guarantee home condition and therefore inspection is still mandatory.
5. An alternative approach might be to use the FHA HUD program section 203(k) which will assist you in rehabbing a property. The only limitations are with condos for investment which is prohibited under HUD regulations.
6. Whenever possible, consider an investment vacation home in an area where the property you’re considering is one of the lesser expensive properties in a more expensive area. This will offer some upward potential, as opposed to buying a more expensive property in a lower priced area.
7. Now, once you have established realistic and conservative costs, you will need to run a rate of return analysis to see if your potential weekly/monthly rentals can afford you the ability to purchase the home and enjoy a positive or at least break even cash flow after all relevant costs, realistic expenses and revenues are taken into consideration.
Assuming that the number work, you can begin the price negotiation process. Also keep in mind that if the property is now salable and economic conditions have substantially improved, you can always sell and cash out your investment for a profit. Of course, having a vacation property in a sought after location gives you a place to go and relax from the stresses of life.
Buying a home, whether for investment or actually planning to live there is challenging in today’s real estate market. And with current economic conditions, you may be hesitant to take the plunge, always thinking in the back of your mind, “Maybe the price will drop further!” Well, sometimes it does and sometimes it doesn’t. One general way to guard against the unthinkable price drop is by purchasing a home that has already taken a deep plunge due to its condition. Maybe the prospective investment home could be described as “shabby” and maybe there area few “rocks” under the surface, yet to be discovered by a hapless investor. At the same time, such properties may also present a real estate investor with tangible opportunities and many of these can be found down in Florida.
The Florida Market is Depressed...but Depression Sometime Spells Opportunity
While depressed values in Florida may be true, there are still attractive opportunities to be found. Among the most promising are homes and condos located in desirable vacation areas, especially in parts of Florida, like Vero Beach and the Florida Keys. We’re considering homes and condominiums that might be defined as ‘distressed properties’. Many of these could be near the beaches or waterfront areas and normally could be rented out on the weekly or monthly basis during most of the year, if they were in presentable condition.
Florida vacation properties will always be in demand by tourist regardless of the economy:
• In a weak real estate or economy, people will still take vacations, but rather than drop thousands for lavish destinations in Europe or elsewhere, Florida is still a great vacation destination.
• In a strong economy, many will still opt for Florida as a fill in or second vacation. It’s easy to get to Florida from anywhere in the U.S. and airfares to and from are typically reasonable
The Florida Vacation Connection
The areas we’re considering are located mostly on the east coast of Florida, such as Vero Beach and the Keys. Although parts of the west coast are also desirable and quite obviously this approach will certainly work there, as well. Single family homes or condos near the beach or the shore front areas will command high prices, but in today’s real estate markets, what is high anymore? This investment strategy is intriguing, but there are a few factors that must be considered.
Averting a Home Purchase Disaster
Obviously, there are dangers inherent in purchasing distressed properties. Sometimes the previous home owners never maintained the properties very well and sometimes they’ve moved out because of foreclosure and actually vandalized their own homes, rendering them unlivable. Other times, a home is just so old that modernization is absolutely mandatory. There are many reasons why a home is in substandard condition. Should this deter you from making a purchase? No, not if appropriate precautions are taken prior to finalizing on the purchase. And the price can be adjusted downward, if possible.
Also, keep in mind that real estate in Florida vacation areas will always be in relatively high demand because of its income generating potential. Unlike typical residential locales, the land in vacation areas will always have a high value relative to other areas in the sunshine state Even if a home must be practically rebuilt, this renovation will further enhance the value of the investment. Caution is the name of the game and making sure that the price is consistent with your minimum income generation expectation is your ultimate goal.
However, there are fundamental issues that must be explored and answered to your satisfaction in order to avoid a catastrophic mistake, prior to finalizing on this type of real estate transaction.
1. Question the neighbors as to what type of person the previous home owner was. If your sense after speaking with the neighbors was that the previous occupant was erratic and possibly negligent about maintaining his home, you might avoid the purchase or at least you’ll be on guard.
2. Always, always, always check out the zoning. If short term rentals are prohibited, don’t expect to obtain a zoning variance. The property, under these circumstances, can not typically generate enough revenue to justify the purchase.
3. Always use an expert home inspector that has been recommended. He should be able to sort out and identify major problems from minor problems. Once problems are identified, then they must be quantified and whether you perform the renovation yourself or use outside contractors, the cost of repair and renovation must be realistic. You should factor in a 10%-20% cost over run in determining your cost basis, to account for unforeseen circumstances.
4. If the home you’re considering purchasing is a VA repossession, attractive price and mortgage opportunities are available, including obtaining financing directly through the VA. The VA however doesn’t guarantee home condition and therefore inspection is still mandatory.
5. An alternative approach might be to use the FHA HUD program section 203(k) which will assist you in rehabbing a property. The only limitations are with condos for investment which is prohibited under HUD regulations.
6. Whenever possible, consider an investment vacation home in an area where the property you’re considering is one of the lesser expensive properties in a more expensive area. This will offer some upward potential, as opposed to buying a more expensive property in a lower priced area.
7. Now, once you have established realistic and conservative costs, you will need to run a rate of return analysis to see if your potential weekly/monthly rentals can afford you the ability to purchase the home and enjoy a positive or at least break even cash flow after all relevant costs, realistic expenses and revenues are taken into consideration.
Assuming that the number work, you can begin the price negotiation process. Also keep in mind that if the property is now salable and economic conditions have substantially improved, you can always sell and cash out your investment for a profit. Of course, having a vacation property in a sought after location gives you a place to go and relax from the stresses of life.
Friday, February 04, 2011
Key West Real Estate-health benefits of living here
Why a Lifestyle Change Can Benefit Your Health
There appears to be a consensus that an urban life style is stressful, expensive and perhaps unhealthy. Cities like New York or Chicago may provide certain economic opportunities, but the question is, at what cost? Most sense that the pace of life in these cities is too challenging and if other living opportunities arise, many are opting for a different (more relaxing) life style. For instance the populations of New York, Philadelphia, Chicago and most other larger urban centers has declined over the period from 1950 through 2000, despite the fact that general population within the U.S. has increased.
How Healthy is City Life?
There may be many reasons for this decline, but chief among them are stress, cost, noise and air pollution. All of these factors have taken a toll on not only the total population count, but the overall well being of the city dweller, as well. A recent book, entitled Unhealthy Places by Kevin Fitzpatrick and Mark LaGory zeroes in on the ecology, sociology and general unhealthiness of urban life. Certainly, virtually anyone with a daily newspaper or seeing the evening news can see the number of deaths attributed to crime or traffic.
While these statistics may actually indicate a decrease, the general perception however, is that living or working in large city is either dangerous or unhealthy. Economic factors also play a role in the population decline. Many city dwellers in years past have fled the large urban centers for the “safety” and relative security of the suburbs. However, urban sprawl has also assailed the safe harbor of the suburbanite and many in suburban areas bordering the city are seeing their taxes and crime spiking upward.
The Effects of a Rise in Stress
This is particularly true of the suburbs surrounding cities like New York or Boston with state income and real estate taxes continuing to rise. With a continuing increase in stress factors, it has been pointed out that many other bad lifestyle choices contribute to a decline in overall health. According to Science Daily.com, “When people are under chronic stress, they tend to smoke, drink, use drugs and overeat to help cope with stress. These behaviors trigger a biological cascade that helps prevent depression, but they also contribute to a host of physical problems that eventually contribute to early death.”
A Change in Location Venue Will Help
How best to address these problems? Many are solving the problem by simply moving away from it entirely, mostly to the southern states. Whether they can find useful work or simply retire is certainly a factor. However, with population growth within the southern states continuously rising, various industries will undoubtedly provide employment for many. This movement away from urban centers to the south has been occurring over the last several years. As indicated below from 1990 through 2000, the populations of the southern states rose substantially compared with New York and Massachusetts:
• Florida increase: 3,044,452 a change of +23.5%
• Georgia increase: 1,708,237 a change of +26.4%
• North Carolina increase: 1,420,676 a change of +21.4%
• South Carolina increase: 525,309 a change of +15.1%
• New York increase: 986,002 a change of +5.5%
• Massachusetts increase: 332,672 a change of +5.5%
Notice that the two northern states listed have the highest overall state taxes. With declines in tax revenues which are tied to the weak economy, these states have imposed even more taxes! So many more northern state dwellers are fleeing southward. Most who have moved southward feel that the move overall was worth it for both health and economic reasons.
Florida’s Decline in Real Estate Values
Florida has been hard hit on the real estate front by the recession, but the state may soon have a modest bump in housing prices, despite the recent declines. Many from the north are attracted to Florida for several obvious reasons: no income state taxes, relatively low real estate taxes and the aforementioned decline in real estate values. While it is upsetting to Florida residents, the price drop makes Florida an ever more attractive place to live and work.
If one is searching for vacation and/or home value, locations like Vero Beach and particularly, the Florida Keys offer an excellent place to live, work or retire. Vero Beach located on the Florida’s east coast, has easy access to Orlando, South Florida and the Panhandle. The Florida Keys, on the other hand, possesses a special charm rooted in a history with a perpetual vacation mind set featuring excellent fishing, diving and boating. Both are good choices depending upon one’s taste and budget.
For more information about relocation to these areas, go to http://www.flarren.com. and also http://www.keywestpropertyforsale.com
There appears to be a consensus that an urban life style is stressful, expensive and perhaps unhealthy. Cities like New York or Chicago may provide certain economic opportunities, but the question is, at what cost? Most sense that the pace of life in these cities is too challenging and if other living opportunities arise, many are opting for a different (more relaxing) life style. For instance the populations of New York, Philadelphia, Chicago and most other larger urban centers has declined over the period from 1950 through 2000, despite the fact that general population within the U.S. has increased.
How Healthy is City Life?
There may be many reasons for this decline, but chief among them are stress, cost, noise and air pollution. All of these factors have taken a toll on not only the total population count, but the overall well being of the city dweller, as well. A recent book, entitled Unhealthy Places by Kevin Fitzpatrick and Mark LaGory zeroes in on the ecology, sociology and general unhealthiness of urban life. Certainly, virtually anyone with a daily newspaper or seeing the evening news can see the number of deaths attributed to crime or traffic.
While these statistics may actually indicate a decrease, the general perception however, is that living or working in large city is either dangerous or unhealthy. Economic factors also play a role in the population decline. Many city dwellers in years past have fled the large urban centers for the “safety” and relative security of the suburbs. However, urban sprawl has also assailed the safe harbor of the suburbanite and many in suburban areas bordering the city are seeing their taxes and crime spiking upward.
The Effects of a Rise in Stress
This is particularly true of the suburbs surrounding cities like New York or Boston with state income and real estate taxes continuing to rise. With a continuing increase in stress factors, it has been pointed out that many other bad lifestyle choices contribute to a decline in overall health. According to Science Daily.com, “When people are under chronic stress, they tend to smoke, drink, use drugs and overeat to help cope with stress. These behaviors trigger a biological cascade that helps prevent depression, but they also contribute to a host of physical problems that eventually contribute to early death.”
A Change in Location Venue Will Help
How best to address these problems? Many are solving the problem by simply moving away from it entirely, mostly to the southern states. Whether they can find useful work or simply retire is certainly a factor. However, with population growth within the southern states continuously rising, various industries will undoubtedly provide employment for many. This movement away from urban centers to the south has been occurring over the last several years. As indicated below from 1990 through 2000, the populations of the southern states rose substantially compared with New York and Massachusetts:
• Florida increase: 3,044,452 a change of +23.5%
• Georgia increase: 1,708,237 a change of +26.4%
• North Carolina increase: 1,420,676 a change of +21.4%
• South Carolina increase: 525,309 a change of +15.1%
• New York increase: 986,002 a change of +5.5%
• Massachusetts increase: 332,672 a change of +5.5%
Notice that the two northern states listed have the highest overall state taxes. With declines in tax revenues which are tied to the weak economy, these states have imposed even more taxes! So many more northern state dwellers are fleeing southward. Most who have moved southward feel that the move overall was worth it for both health and economic reasons.
Florida’s Decline in Real Estate Values
Florida has been hard hit on the real estate front by the recession, but the state may soon have a modest bump in housing prices, despite the recent declines. Many from the north are attracted to Florida for several obvious reasons: no income state taxes, relatively low real estate taxes and the aforementioned decline in real estate values. While it is upsetting to Florida residents, the price drop makes Florida an ever more attractive place to live and work.
If one is searching for vacation and/or home value, locations like Vero Beach and particularly, the Florida Keys offer an excellent place to live, work or retire. Vero Beach located on the Florida’s east coast, has easy access to Orlando, South Florida and the Panhandle. The Florida Keys, on the other hand, possesses a special charm rooted in a history with a perpetual vacation mind set featuring excellent fishing, diving and boating. Both are good choices depending upon one’s taste and budget.
For more information about relocation to these areas, go to http://www.flarren.com. and also http://www.keywestpropertyforsale.com
Great deals on Foreclosed Homes, But Buyer Beware! by Robert Severin
In Real Estate
Getting the deal of a lifetime on a foreclosed home or condominium could be the answer to your prayers. However, sometimes the process is fraught with difficulties…if you try to go it alone. There are problems aplenty when buying a foreclosure and an experienced real estate agent will be very inexpensive insurance policy against making a huge and costly real estate blunder. What we'll be dealing with here is the process of buying bank owned or foreclosed properties, the 'how-tos' with an emphasis on what to avoid and ultimately who should be part of your team.
Foreclosure Sales vs. REOs
Before getting into the process, we'll need to cover some basics. The bank will typically and initially offer the home as a "foreclosure sale" in an auction. The sale assumes that the mortgage is still in place. In a foreclosure sale the price is set at a minimum to include the following: the loan balance, any accrued interest, plus any other associated costs. The successful bidder must have a cashier's check in his possession at the time of the auction. In today's market, this type of sale almost never occurs. If there was enough equity in the property to cover the mortgage and the market was more stable, the owner could have potentially sold his property himself and avoid the obvious negatives associated with this transaction. Nowadays, this scenario is probably unlikely
If the bank resells the property in a REO (Real Estate Owned) sale, as the alternative, the mortgage then ceases to exist and the bank owns the property 100%. This article will consider only the process from an REO perspective which would also include Veteran Administration mortgages, as well. VA mortgage repossessions are handled by real estate agents in much the same way that REOs through a commercial bank are handled.
Basic Buyer Preparations in Purchasing a REO
In all cases, REO repossession is not free of potential issues. In fact, there are often more problems. Obviously, a bank or the VA that is saddled with an inventory of repossessed homes actively tries to get the asset off of their books. However, they certainly strive to not lose additional monies on the transaction. After all, they probably have already lost a significant amount in the repossession process. In many cases there are issues that will need to be addressed upfront with respect to the ultimate contract that will be signed, assuming that your purchase bid is accepted.
Whether you are buying a home in this manner to personally occupy it or it is purchased as an investment, it will require you to perform additional 'due diligence' in order to avoid some of the potential 'got-chas' that are not usually associated with straight real estate purchases. Therefore, the two most important people to help guide you through the procedure will be an experienced real estate realtor and a seasoned real estate attorney. Additionally, you'll need to fully understand the process and the potential problems that can befall you.
Physical Problems with Repossession
Many homes that are repossessed have reached this situation because of family problems, loss of employment, death, etc. In the end, if a short sale or standard foreclosure sale is not possible, as is the case in the current market, the home sold under a REO repossession often is vacant for a period of time and the following problems are often encountered:
1. Vandalism and Break-ins. When a home is left vacant for any period of time, often appliances or anything of value may be stolen or vandalized.
2. Deliberate Vandalism by Previous Owner. When a homeowner is forced out, there is a tendency for those to take out and sell any of the appliances and in many cases, vandalize and destroy the home in retaliation against the mortgage holder for the repossession. However, to prevent the situation from occurring, some mortgage companies are now making a cash payout to the homeowner to prevent that situation from occurring.
3. Wild Life. If a home is left vacant and the lawn and foliage are unattended, various animals may seize this as an opportunity to move in. This might include raccoon, opossum, snakes, rats, mice, etc. After all, nature abhors a vacuum.
4. Maintenance not Performed. Many homeowners under the threat of foreclosure, neglect maintenance because funds are scarce and basic survival may not include painting or other cosmetic improvements. Often important preventive maintenance is not performed, as well.
5. Mold Damage. A home that is sitting vacant for any period of time, particularly in places like Florida or other locales in warm, humid climates are prone to develop mold. If left without proper air conditioning or dehumidification, the walls may develop this fungus and mold, particularly if the home has had water or plumbing leaks. Some mold damage may even occur on the inside of dry wall. Once mold takes hold on a wall, often the only recourse is to replace the entire dry wall.
6. Lead paint. Normally this is not much of a problem in newer homes, but in older homes, it is likely that lead based paints have been used in the interior. If this is the case, it's a safety hazard for a homeowner, his family or even workmen brought in to perform repairs. There are two approaches, cover it completely with paneling or use any one of a number of products designed to bond with the lead paint. In any event, removal or surface repair of lead paint on the interior of a REO home will certainly add cost to the potentials purchase
Professional Home Inspection
Most homebuyers may not be aware of the potential problems attendant in the purchase of a REO home. Therefore, it is almost mandatory that a homebuyer use the services of a reputable, licensed home inspector. Further, use an inspector that has previous experience inspecting REO homes. Money invested at the front end of this transaction, will save both headaches and dollars after the home has been purchased.
Certainly, when and if any of these problems are discovered, they can be used to negotiate allowances in the price of the property. There are however, potential buyers of such properties that look for homes in need of repair. For the most part, they are savvy and well experienced in this type of transaction. For the average homeowner, it's always best to avoid homes that appear to be problematic, upfront.
REO Contractual Issues
After dealing with and allowing for problems with respect to the condition of a property, the next hurtle is working with the bank that now owns the property. When you buy a REO, you start with a standard contract. The bank then attaches a normally non-negotiable "bank addendum" to the standard contract. There is a major 'got-cha' in this: a bank owned contract addendum means, "Everything in the main contract is nullified", if the addendum addresses it. For instance, if the main contract allows you make a final walk through inspection, but the addendum says "As-is," the addendum wins. While addendums typically specify no negotiation, in home purchases as in life, there is always room for negotiation.
The following are a couple of issues that you may need to be aware of:
1. Some standard addendums may be written nationwide and actually ignore local laws. Local statutes supersede these contracts, therefore in some cases, there are points in addendums that are not enforceable. A local attorney can guide you in this.
2. Beware of hidden fees. Sometimes, significant fees, amounting to thousands of dollars may be shifted from the seller to the buyer, as directed in the provisions of a contract addendum.
3. Most addendums typically allow the bank to cancel the contract up to the sale date and sometimes with no penalty to the bank. For instance, if the bank receives a higher offer, they may have the right to break the contract.
4. Be wary of termite provisions. Normally it's the seller's responsibility to pay if there is termite damage. The addendum typically shifts the risk back to the buyer.
5. If the bank is trying to unload a REO property, normally they will not provide financing. However, it never hurts to ask.
6. Always have a title search performed. You would expect that in a bank REO sale this would have been covered, however you can never really be sure. Therefore, make sure that the title is 100% clear through a proper title search. You can perform a preliminary check of title on RealtyTrac.com and then hire a title company to run a full, insured title search before closing on a deal.
A VA REO has some Real Advantages
While most of the homes that are now for sale as REOs are available from banks, VA repossessed homes and to an extent, FHA repossessed homes offer certain benefits to a homeowner over and above conventional banks. They are sold the same way through a local realtor and you as a potential buyer can place a bid on a property. If your bid is highest, you have the right to purchase the home. A VA home REO sale has the following advantages:
• The VA may provide financing (VA Vendee Financing) available to both veterans and non-veterans, alike.
• Under most circumstances, the property can be purchased with no down payment, whether the buyer is a veteran or not.
• The VA pays all closing costs, which may amount to as much as 6% of the purchase price.
• Private Mortgage Insurance (PMI) is not required.
• Instant equity may be developed, as VA property discounts may be as high as 50%.
• There are no mortgage prepayment penalties
Whenever you ultimately submit an offer, if you have found any defects, justify your offer with both photos and inspection reports. No matter what type of REO property and from whom you buy it, you will need to:
1. Work with a good realtor, experienced in this type of transaction.
2. Make sure that you secure the services of a real estate attorney, prior to any payments being made or documents being signed.
3. Use a qualified home inspector.
Certainly, by taking precautions and by assuming the worst about the condition of a property, you can avoid overpaying for a home and underestimating the amount and number of repairs and amount of renovation that will have to be undertaken on your purchase.
About the Author
To my Buyers:
As a buyer of property, you will receive personalized, professional assistance in both locating the property that suits you, and in negotiating the deal. Before buying any property, you will be an educated buyer, having learned sales prices and asking prices of comparable properties in the area of your choice, so that you have the necessary information to make an educated decision.
To my Sellers:
As a seller, your property will be marketed locally, nationally, and internationally. Your property will be featured on more than 6 real estate web sites. In addition your home will have a professional photographic and virtual tour for exhibition on the Web.
A full color brochure will also be produced. Target marketing of your property to financially capable prospects.
These are just some of the many marketing tools that will ensure that your property is "SOLD".
Robert Severin is one of the Top Producers in real estate sales, is admired by his fellow realtors, and has earned the respect of buyers and sellers who have come to him, to seek the assistance of an expert in Key West -Florida Keys Real Estate.
Getting the deal of a lifetime on a foreclosed home or condominium could be the answer to your prayers. However, sometimes the process is fraught with difficulties…if you try to go it alone. There are problems aplenty when buying a foreclosure and an experienced real estate agent will be very inexpensive insurance policy against making a huge and costly real estate blunder. What we'll be dealing with here is the process of buying bank owned or foreclosed properties, the 'how-tos' with an emphasis on what to avoid and ultimately who should be part of your team.
Foreclosure Sales vs. REOs
Before getting into the process, we'll need to cover some basics. The bank will typically and initially offer the home as a "foreclosure sale" in an auction. The sale assumes that the mortgage is still in place. In a foreclosure sale the price is set at a minimum to include the following: the loan balance, any accrued interest, plus any other associated costs. The successful bidder must have a cashier's check in his possession at the time of the auction. In today's market, this type of sale almost never occurs. If there was enough equity in the property to cover the mortgage and the market was more stable, the owner could have potentially sold his property himself and avoid the obvious negatives associated with this transaction. Nowadays, this scenario is probably unlikely
If the bank resells the property in a REO (Real Estate Owned) sale, as the alternative, the mortgage then ceases to exist and the bank owns the property 100%. This article will consider only the process from an REO perspective which would also include Veteran Administration mortgages, as well. VA mortgage repossessions are handled by real estate agents in much the same way that REOs through a commercial bank are handled.
Basic Buyer Preparations in Purchasing a REO
In all cases, REO repossession is not free of potential issues. In fact, there are often more problems. Obviously, a bank or the VA that is saddled with an inventory of repossessed homes actively tries to get the asset off of their books. However, they certainly strive to not lose additional monies on the transaction. After all, they probably have already lost a significant amount in the repossession process. In many cases there are issues that will need to be addressed upfront with respect to the ultimate contract that will be signed, assuming that your purchase bid is accepted.
Whether you are buying a home in this manner to personally occupy it or it is purchased as an investment, it will require you to perform additional 'due diligence' in order to avoid some of the potential 'got-chas' that are not usually associated with straight real estate purchases. Therefore, the two most important people to help guide you through the procedure will be an experienced real estate realtor and a seasoned real estate attorney. Additionally, you'll need to fully understand the process and the potential problems that can befall you.
Physical Problems with Repossession
Many homes that are repossessed have reached this situation because of family problems, loss of employment, death, etc. In the end, if a short sale or standard foreclosure sale is not possible, as is the case in the current market, the home sold under a REO repossession often is vacant for a period of time and the following problems are often encountered:
1. Vandalism and Break-ins. When a home is left vacant for any period of time, often appliances or anything of value may be stolen or vandalized.
2. Deliberate Vandalism by Previous Owner. When a homeowner is forced out, there is a tendency for those to take out and sell any of the appliances and in many cases, vandalize and destroy the home in retaliation against the mortgage holder for the repossession. However, to prevent the situation from occurring, some mortgage companies are now making a cash payout to the homeowner to prevent that situation from occurring.
3. Wild Life. If a home is left vacant and the lawn and foliage are unattended, various animals may seize this as an opportunity to move in. This might include raccoon, opossum, snakes, rats, mice, etc. After all, nature abhors a vacuum.
4. Maintenance not Performed. Many homeowners under the threat of foreclosure, neglect maintenance because funds are scarce and basic survival may not include painting or other cosmetic improvements. Often important preventive maintenance is not performed, as well.
5. Mold Damage. A home that is sitting vacant for any period of time, particularly in places like Florida or other locales in warm, humid climates are prone to develop mold. If left without proper air conditioning or dehumidification, the walls may develop this fungus and mold, particularly if the home has had water or plumbing leaks. Some mold damage may even occur on the inside of dry wall. Once mold takes hold on a wall, often the only recourse is to replace the entire dry wall.
6. Lead paint. Normally this is not much of a problem in newer homes, but in older homes, it is likely that lead based paints have been used in the interior. If this is the case, it's a safety hazard for a homeowner, his family or even workmen brought in to perform repairs. There are two approaches, cover it completely with paneling or use any one of a number of products designed to bond with the lead paint. In any event, removal or surface repair of lead paint on the interior of a REO home will certainly add cost to the potentials purchase
Professional Home Inspection
Most homebuyers may not be aware of the potential problems attendant in the purchase of a REO home. Therefore, it is almost mandatory that a homebuyer use the services of a reputable, licensed home inspector. Further, use an inspector that has previous experience inspecting REO homes. Money invested at the front end of this transaction, will save both headaches and dollars after the home has been purchased.
Certainly, when and if any of these problems are discovered, they can be used to negotiate allowances in the price of the property. There are however, potential buyers of such properties that look for homes in need of repair. For the most part, they are savvy and well experienced in this type of transaction. For the average homeowner, it's always best to avoid homes that appear to be problematic, upfront.
REO Contractual Issues
After dealing with and allowing for problems with respect to the condition of a property, the next hurtle is working with the bank that now owns the property. When you buy a REO, you start with a standard contract. The bank then attaches a normally non-negotiable "bank addendum" to the standard contract. There is a major 'got-cha' in this: a bank owned contract addendum means, "Everything in the main contract is nullified", if the addendum addresses it. For instance, if the main contract allows you make a final walk through inspection, but the addendum says "As-is," the addendum wins. While addendums typically specify no negotiation, in home purchases as in life, there is always room for negotiation.
The following are a couple of issues that you may need to be aware of:
1. Some standard addendums may be written nationwide and actually ignore local laws. Local statutes supersede these contracts, therefore in some cases, there are points in addendums that are not enforceable. A local attorney can guide you in this.
2. Beware of hidden fees. Sometimes, significant fees, amounting to thousands of dollars may be shifted from the seller to the buyer, as directed in the provisions of a contract addendum.
3. Most addendums typically allow the bank to cancel the contract up to the sale date and sometimes with no penalty to the bank. For instance, if the bank receives a higher offer, they may have the right to break the contract.
4. Be wary of termite provisions. Normally it's the seller's responsibility to pay if there is termite damage. The addendum typically shifts the risk back to the buyer.
5. If the bank is trying to unload a REO property, normally they will not provide financing. However, it never hurts to ask.
6. Always have a title search performed. You would expect that in a bank REO sale this would have been covered, however you can never really be sure. Therefore, make sure that the title is 100% clear through a proper title search. You can perform a preliminary check of title on RealtyTrac.com and then hire a title company to run a full, insured title search before closing on a deal.
A VA REO has some Real Advantages
While most of the homes that are now for sale as REOs are available from banks, VA repossessed homes and to an extent, FHA repossessed homes offer certain benefits to a homeowner over and above conventional banks. They are sold the same way through a local realtor and you as a potential buyer can place a bid on a property. If your bid is highest, you have the right to purchase the home. A VA home REO sale has the following advantages:
• The VA may provide financing (VA Vendee Financing) available to both veterans and non-veterans, alike.
• Under most circumstances, the property can be purchased with no down payment, whether the buyer is a veteran or not.
• The VA pays all closing costs, which may amount to as much as 6% of the purchase price.
• Private Mortgage Insurance (PMI) is not required.
• Instant equity may be developed, as VA property discounts may be as high as 50%.
• There are no mortgage prepayment penalties
Whenever you ultimately submit an offer, if you have found any defects, justify your offer with both photos and inspection reports. No matter what type of REO property and from whom you buy it, you will need to:
1. Work with a good realtor, experienced in this type of transaction.
2. Make sure that you secure the services of a real estate attorney, prior to any payments being made or documents being signed.
3. Use a qualified home inspector.
Certainly, by taking precautions and by assuming the worst about the condition of a property, you can avoid overpaying for a home and underestimating the amount and number of repairs and amount of renovation that will have to be undertaken on your purchase.
About the Author
To my Buyers:
As a buyer of property, you will receive personalized, professional assistance in both locating the property that suits you, and in negotiating the deal. Before buying any property, you will be an educated buyer, having learned sales prices and asking prices of comparable properties in the area of your choice, so that you have the necessary information to make an educated decision.
To my Sellers:
As a seller, your property will be marketed locally, nationally, and internationally. Your property will be featured on more than 6 real estate web sites. In addition your home will have a professional photographic and virtual tour for exhibition on the Web.
A full color brochure will also be produced. Target marketing of your property to financially capable prospects.
These are just some of the many marketing tools that will ensure that your property is "SOLD".
Robert Severin is one of the Top Producers in real estate sales, is admired by his fellow realtors, and has earned the respect of buyers and sellers who have come to him, to seek the assistance of an expert in Key West -Florida Keys Real Estate.
A World Away – Vacationing in the Florida Keys
The Florida Keys offer many of the same laid back characteristics as the Caribbean, without ever leaving the United States. Amazing sunsets and a free spirited attitude all contribute to the laid back atmosphere of the Keys.
There are many activities to do, like sport fishing, scuba diving and snorkeling, boating, sailing, kayaking and eco-tours. Each island destination has its own special features. These islands are also rich in culture and history with many galleries, restaurants, festivals, music and theater to visit and check out. Of course, just relaxing is always an option throughout the Keys as well.
The Keys span about 120 miles and are connected by bridges and causeways, running south west from Miami. This area has the only living-coral barrier reef in the United Stares and is approximately 5 miles off shore and runs the entire length of the Keys.
The first island in the Florida Keys is Key Largo. Being close to the Everglades National park, there is much wildlife to be seen here. It is a popular destination for kayakers and bird watchers. There are many amazing scuba diving or snorkeling sites in Key Largo as well, with many sunken wrecks in the area. The John Pennekamp Coral Reef State Park is located here and offers scuba and snorkeling tours, glass bottom boat tours and swimming in the Florida Keys National Marine Sanctuary. In 2002, the navy ship, the USS Spiegel Grove was sunk to provide a reef here and a sunken wreck for divers to explore.
The next island in the chain is Islamorada. It is comprised of six islands including Plantation Key, Windley Key, Upper Matecumbe Key, Lower Matecumbe Key and the offshore islands of Indian Key and Lignumvitae Key. This area is well known for its world class sport fishing. There are many fishing tournaments held here each season.
Marathon Key is in the middle of the Florida keys. It is famous for the Seven Mile Bridge, which links it to the Lower Florida Keys. You will find great shopping and many fine restaurants offering fresh seafood. At Crane Point Museum, there is one of the last untouched tropical hardwood hammocks in the Florida Keys.
Big Pine Key is known for its boating tours and for bird watching and fishing. The diving and snorkeling is great here too. It is a quiet region of small resorts, home-style restaurants, vacation homes and untouched natural areas.
The last of the Florida Keys is Key West. There are many festivals, shopping and restaurants. Boat tours provide a great way to view Key West from the water. The snorkeling and diving are renowned here to see a diverse array of marine life. Wrecks and reefs, both artificial and natural coral, are home to hundreds of species of tropical and game fish. Many visitors rent a bicycle or go on walking tours to explore the history and architecture of Old Town Key West.
So if you are into eco-tourism, scuba diving or snorkeling, shopping and dining, or just want to relax in a tropical paradise, the Florida Keys may be the destination for you.
There are many activities to do, like sport fishing, scuba diving and snorkeling, boating, sailing, kayaking and eco-tours. Each island destination has its own special features. These islands are also rich in culture and history with many galleries, restaurants, festivals, music and theater to visit and check out. Of course, just relaxing is always an option throughout the Keys as well.
The Keys span about 120 miles and are connected by bridges and causeways, running south west from Miami. This area has the only living-coral barrier reef in the United Stares and is approximately 5 miles off shore and runs the entire length of the Keys.
The first island in the Florida Keys is Key Largo. Being close to the Everglades National park, there is much wildlife to be seen here. It is a popular destination for kayakers and bird watchers. There are many amazing scuba diving or snorkeling sites in Key Largo as well, with many sunken wrecks in the area. The John Pennekamp Coral Reef State Park is located here and offers scuba and snorkeling tours, glass bottom boat tours and swimming in the Florida Keys National Marine Sanctuary. In 2002, the navy ship, the USS Spiegel Grove was sunk to provide a reef here and a sunken wreck for divers to explore.
The next island in the chain is Islamorada. It is comprised of six islands including Plantation Key, Windley Key, Upper Matecumbe Key, Lower Matecumbe Key and the offshore islands of Indian Key and Lignumvitae Key. This area is well known for its world class sport fishing. There are many fishing tournaments held here each season.
Marathon Key is in the middle of the Florida keys. It is famous for the Seven Mile Bridge, which links it to the Lower Florida Keys. You will find great shopping and many fine restaurants offering fresh seafood. At Crane Point Museum, there is one of the last untouched tropical hardwood hammocks in the Florida Keys.
Big Pine Key is known for its boating tours and for bird watching and fishing. The diving and snorkeling is great here too. It is a quiet region of small resorts, home-style restaurants, vacation homes and untouched natural areas.
The last of the Florida Keys is Key West. There are many festivals, shopping and restaurants. Boat tours provide a great way to view Key West from the water. The snorkeling and diving are renowned here to see a diverse array of marine life. Wrecks and reefs, both artificial and natural coral, are home to hundreds of species of tropical and game fish. Many visitors rent a bicycle or go on walking tours to explore the history and architecture of Old Town Key West.
So if you are into eco-tourism, scuba diving or snorkeling, shopping and dining, or just want to relax in a tropical paradise, the Florida Keys may be the destination for you.
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