Archive for June, 2008
Can Financing Give Your Home More “Sales Appeal”?
June 30th, 2008 categories: Selling Real Estate in Coconut Grove
Authored by our Guest Contributor, James Venney:
As your Realtor will tell you, there are specific steps you need to take to give your home more “sales appeal”. Some of the more important issues are re-landscaping to improve curb appeal, de-cluttering both the interior and exterior of the home, painting and addressing any items of deferred maintenance. In addition to these items, there are things we can do with creative financing that will dramatically enhance the salability of your home without you having to hold seller financing. A perfect example is the seller paid buy down. This involves the seller giving a credit at closing to the buyer to pay for an interest rate buy down on the buyer’s new mortgage.
Let’s take a look at how attractive this can be for the buyer and as an effective marketing tool for your home…..
As illustrated in this flyer (sellers-buydown.JPG) by offering sellers buy down of just 2% of the purchase price ($10,000 in this case or 2.5% of the loan amount) we lower the buyer’s monthly payment by $416.67! More importantly we lower the monthly income needed to qualify for the mortgage by almost $1,000 thus dramatically expanding the pool of potential buyers for your home. To think of it another way, the seller in this example would have to lower the price of his home by more than $80,000 to generate the same monthly payment for the buyer.
But wait….there’s more….as illustrated in this cost analysis (sellers-advantage-cost-analysis_page_1.JPG) as a result of the lower interest rate the buyer has saved $25,000 over just the first 5 years. What if the buyer were to invest the $416.67 in monthly savings into a side fund earning a conservative 6% rate of return…in the first 5 years that account would grow to $29,094 and in 24.25 years the buyer would reach the “Freedom Point” which is the point where the balance of the investment account is greater than the remaining balance of the mortgage!
Of course, the buyer could have also applied the $416.67 towards reducing the principle balance of the mortgage each month. However, smart borrowers know that in most cases no form of making additional payments towards the principle balance is the fastest way to pay off your mortgage but that is a topic for another post (hint….think compound interest).
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Coconut Grove Sellers: Another Warning About Short Sales
June 28th, 2008 categories: Selling Real Estate in Coconut Grove
Short sales are extremely difficult real estate transactions….the bank is very slow to respond to inquiries, you can wait months and months for the deal to close, the buyers are asked to sign questionable documents, the list goes on and on.
But there is one more thing to worry about……….the tax implications of your short sale.
Did you know that if your home is a short sale, the IRS will ask you to pay taxes on the amount of money that you were “forgiven”? The IRS counts that as income and you are required to pay taxes on it!
My fellow EWM Associate Maggie Dokic over at “The Blog That Ate Miami” wrote an excellent post regarding this topic. Read more here.
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Coconut Grove Real Estate: What does $300,000 get you?
June 28th, 2008 categories: Buying Real Estate in Coconut Grove
After a quick MLS search, these are all properties available in Coconut Grove for $300,000. Check out the 4 Bedroom, 2 Bath available on Franklin Avenue for $299,000!
Single Family Homes On The Market for $300,000 in Coconut Grove
- West Grove | 3840 Charles Terrace | 2 Bedroom, 1 Bath | 943 Square Feet | Bank Owned Property | Asking Price: $300,000
- West Grove | 3050 Shipping Avenue | 3 Bedroom, 2 Bath | 2,040 Square Feet | 6,250 Square Foot Lot| Asking Price: $299,000
Townhouses and Condos On The Market for $300,000 in Coconut Grove
- Center Grove Townhouse| 2650 Bird Avenue | 2 Bedroom, 2.5 Bath | 1,046 Square Feet | 2 Story Townhome with Fenced Yard | 2 Parking Spaces | Generator Included | Asking Price: $300,000 | Pictures Below
- Center Grove Townhouse | 3130 Bird Avenue | 2 Bedroom, 2.5 Bath | 1,100 Square Feet | 2 Story Townhome with Carport | Stainless Appliances | Marble in Kitchen and Baths | Asking Price: $299,000 | Pictures Below
- Center Grove Townhouse | 2620 Bird Avenue | Short Sale Townhouse | 2 Bedroom, 2 Bath | New Roof | 2 Balconies | Walk-In Closet | Asking Price: $300,000 | Pictures Below
- Center Coconut Grove Condo | 2629 South Bayshore Drive | Harbour Hill Condominums | Penthouse Unit | Stainless Appliances, Marble Floor, Granite Counters | 2 Bedroom, 2 Bath | 790 Square Foot | Asking Price: $300,000
- Center Grove Condo | The Grove Club | 2699 Tigertail Avenue, #13 | 1 Bedroom, 1.5 Bath | 1,058 Square Feet | Reduced $60,000 since last year | Underground Parking | Stainless Appliances and Marble Floors | Asking Price: $299,000 | Pictures Below
- Center Grove Condo | The Mutiny | 2951 South Bayshore Drive | 1 Bedroom, 1 Bath | 740 Square Feet | Investors may enter this into the rental pool | Asking Price: $299,000 | Pictures Below
- Center Grove Condo | The Mayfair | 2801 Florida Avenue | 1 Bedroom, 1 Bath | 691 Square Feet | Polished concrete floors | Mosaic tile Baths | Rounded Edges | Large Balcony | Asking Price: $299,000 | Pictures Below
- Center Grove Townhouse | 3406 Franklin Avenue | 4 Bedroom, 2 Bath | 1,322 Square Feet | Short Sale | Large Backyard | Gated | Asking Price: $299,000 | Pictures Below
If you would like to see any of these properties, feel free to give me a call at 305.342.1623. I’d be happy to assist you.
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New Construction in Coconut Grove – What Will It Cost You?
June 27th, 2008 categories: Buying Real Estate in Coconut Grove
There are currently 15 new construction homes in Coconut Grove that range from $1,394,000 to $2,450,000. The average price per square foot for new construction here is $404.00. Now is a great time to buy new construction because builders are more negotiable than ever as their carrying costs continue to increase.
These new construction homes are of particular interest:
1. Architectural Masterpiece: 3005 Washington Street, Coconut Grove | Price Per Square Foot is $385.00 | Open Floor Plan | Guest Quarters | Free Form Pool | 4,932 Square Feet | Library | Wet Bar | 3 Bedroom, 3 Bath Main and 1 Bedroom, 1 Bath Guest | Asking Price: $1,900,000 | See Pictures Below
2. Lowest price per square foot: 1866 Tigertail Avenue, Coconut Grove | Price Per Square Foot $341.00 | 5 Bedrooms, 5 Baths | 4,677 Square Foot | Asking Price: $1,595,000 | See Pictures Below
3. LEEDS Certified: 3861 Kumquat Avenue, Coconut Grove | Price Per Square Foot is $439.00 | Featuring Hurri-Green Construction | Reinforced Concrete Roof | Low E-Glass | Solar Panels | Tankless Water Heaters | 6 Bedroom, 7.5 Bath | 5,000 Square Feet | Construction Completes in 2009 | Asking Price: $2,199,000 | See Pictures Below
Scroll through the available new construction homes in Coconut Grove here.
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Read This Before Buying a Foreclosure….It Could Make You Sick
June 26th, 2008 categories: Buying Real Estate in Coconut Grove
Imagine this…..you have just purchased and moved into a home that was in foreclosure. Within days of living there, you start to have breathing problems, skin rashes, memory loss, abdominal pain or fatigue (just to name a few).
The possible culprit? MOLD!
Why would a foreclosed home or condo be more likely to have mold?
Because many times the properties have been vacant for a long period of time with no air conditioning and the windows and doors have all been sealed up. Combine this with the fact that we have high humidity in South Florida, and you have the perfect breeding ground for mold to grow.
How can you protect yourself? Do your due diligence during the inspection period. Have a respected mold company come out and test the home for mold. Sellers (including banks) release themselves from any liability if there is mold found in the home after the contract is signed. Therefore, it is your responsibility to find out if there is mold in the house. If the test comes back positive, you can usually renegotiate the terms of the contract to include mold remediation.
CBS 4 did a story on this if you’d like to read more about mold in foreclosure properties, click here.
You may also be interested in these articles:
A Coconut Grove Foreclosure Story
Too Good To Be True When It Comes To Free Foreclosure Websites
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Coconut Grove Real Estate Statistics
June 25th, 2008 categories: Coconut Grove Market Conditions
Well the Coconut Grove Real Estate Statistics are in for the month of May, and as I studied them over my breakfast this morning I have to be honest that I have nothing profound to say except that the market is not getting terribly worse. As you can see from the chart below, Coconut Grove seems to be hovering around the same numbers.
Over the past 12 months we have seen an average of 15 single family homes sold, and 15 homes placed under contract per month in Coconut Grove. For the month of May there were 11 homes sold and 19 pended in Coconut Grove. Price per square foot for single family homes has been approximately $350.00 over the past year and in May it was $349.00. Another interesting number is the “Average Days On The Market”. Over the past year it has taken an average of 130 days to sell a home in Coconut Grove, and for the homes sold in May the number was 145 days.
On the townhouse and condo front, there has been an average of 20 sold per month, and 25 under contract per month over the past year. In May there were 14 sold and 19 pended. Average Price Per Square Foot for condos and townhouses in Coconut Grove was at an all time low of $308.00 for the month of May. Over the past year it has taken an average of 120 days to sell a condo or townhouse in Coconut Grove and in May the number of days was 129.
Coconut Grove Real Estate Statistics through May
Single Family Homes (click to view larger image)
Townhouses and Condos (click to view larger image)
Other Articles You May Be Interested In:
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Coconut Grove Real Estate Market Update
June 24th, 2008 categories: Coconut Grove Real Estate, What is selling in Coconut Grove?
Recent Condos and Townhouses to go Pending in Coconut Grove:
2951 South Bayshore Drive PH-7 | The Mutiny (condo/hotel) | Penthouse Unit | Listing Price $528,900 reduced from $545,000 | 2 Bedroom, 2 Bath | 1,090 square feet | Pictures Below
3124 Bird Avenue | Mission Place at the Grove | This unit was corporate owned | Listing Price: $234,000 reduced from $289,000 | 2 Bedroom, 1 Bath | 1,129 square feet | Pictures Below
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A Foreclosure Story in Coconut Grove Part One
June 23rd, 2008 categories: Buying Real Estate in Coconut Grove
This is Part One of a series I am writing that tracks my clients as they purchase a home in foreclosure in Coconut Grove.
I have to admit that 6 months ago I was weary to have any clients of mine make an offer on a foreclosure property. There are so many obstacles and unknowns for the buyers that I used to shy away from bank-owned homes. However, since the foreclosure market in Coconut Grove is picking up steam and there really are some GREAT buys out there, it would be against my clients best interest not to consider them. So on that note….
Some friends of mine were looking to purchase their first home as a married couple. They are currently renting on a month to month basis in Coconut Grove and would really like to stay in the area. After viewing several homes within their price range, we came across a foreclosure property in the Grove that gave them much more for their money than other homes we previewed. There was more land, more bedrooms and all around more space. The downside was that the house was completely uninhabitable on the inside. All major appliances were gone, the toilets had been ripped out from the floor, bathrooms, kitchens and floors all needed replaced. They were looking at approximately $100,000 to $150,000 worth of work.
Since they are in the construction business, they weren’t scared of the challenge.
- We drew up the offer.
- After 9 days the bank presented a counter offer which we accepted.
- We sent the signed accepted agreement, we have not heard back from the bank for 10 days.
Lesson learned: If you make an offer on a foreclosed property, you must be prepared to wait.
And wait, and wait and wait.
Click here to read “A Coconut Grove Foreclosure Story, Part Two”
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Coconut Grove Buyers: What You Need To Know About Mortgage Rates
June 22nd, 2008 categories: Buying Real Estate in Coconut Grove
Authored by our guest contributor James Venney:
Home buyers are often surprised when a “rate quote” from the morning is not honored in the afternoon. Sometimes, the assumption is that the loan officer is just being sneaky.
This couldn’t be less true.
Rate quotes change in the middle of the day because mortgage markets are in constant flux. All day, every day – just like stocks.
And like stocks, a mortgage bond’s morning price will likely “expire” before the day ends.
One way to visualize this is to look at yesterday’s Microsoft stock price:
- At 9:30 A.M. ET, the price was $28.46
- At 9:38 A.M. ET, the price was $28.72
Over the course of 8 minutes, the stock rose by 26 cents and the “9:30 A.M. quote” was no longer available. For example, you couldn’t call your stock broker at 9:38 A.M. and place an order for the 9:30 A.M. price because the price had changed.
Mortgage rates behave the same way.
Throughout 2008, mortgage rates have changed mid-day more frequently than in the past. On more than half the days, morning rate quotes were no longer valid in the afternoon. And, on at least 5 separate occasions, rates changed 4 times in just one day.
It’s not typical, but it does happen.
So, if you’re talking with your loan officer in the morning about a rate quote, be prepared to do all of your shopping in a compacted amount of time, and then be ready to make a decision.
By the time the afternoon rolls around, after all, that rate quote may well be expired.
Authored by: James Venney CMPS, CMA
Phone: (305) 960-2671
Email: james.r.venney@homesvclending.com
James Venney is a licensed mortgage broker and a State Certified Residential Appraiser. Currently, he is the top producing mortgage banker at Home Services Lending which is a joint venture with Warren Buffet’s Berkshire Hathaway and Wells Fargo Bank.
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Townhouse in Coconut Grove
June 22nd, 2008 categories: Townhouses
3055 Virginia Street, Coconut Grove
I have a great townhouse listed in Center Coconut Grove right across from Blanche Park. In case you aren’t familiar with Blanche Park, it has a very popular dog park on one half, and a children’s park on the other. Both parks are wonderful gathering places for the neighborhood.
What makes this townhouse stand out:
- The bedrooms are larger than the typical townhouse in Center Coconut Grove.
- The owners have redone the interior within the last year with wood floors, crown moldings and a new kitchen.
- It has a den/office downstairs in addition to the 2 bedrooms upstairs.
- Its’ price per square foot is $279.00 which is significantly lower than the “average price per square foot” of townhomes in Coconut Grove of $303.00.
- It has 2 side-by-side parking spaces. Many townhouses in Coconut Grove have linear parking spaces where one car must move in order for the other car to get out.
- Extra parking for guests at Blanche Park.
Details:
- 2 Bedrooms/2.5 Bath
- 1,644 square feet interior
- Dogs Allowed
- No Maintenance Fee
- French Doors and Large Windows
- Private, Fenced Terrace
- Asking Price: $459,000
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