Palm Coast Unplugged

RAGE Against Bank Stupidity and Cold Blood!

2012-01-23T14:20:00.000-05:00

Right now, it's hard to
love the banks...

Banks are an easy target. And like any easy target, they get hammered unmercifully. They're like many politicians, in that you listen to their party line... compare it to what they said last month or last year... and you are forced to conclude that they tell lies for a living!

As a Real Estate Broker and Sales Agent for the past 25 years, I've seen the good, bad, and ugly... in up and down markets... in several states. To say that this real estate market crash we've been in for the past 5 years is all the bank's fault, would be a stretch. Yet to say they are a major contributor, is spot on.

So here's the purpose of today's post... My partner has been helping a customer to sell her house as a "short sale" with a well-known bank. It's been a maddening process, consuming over a year of showings, offers, counters, rejections, and fickle buyers walking away. Then, as it seemed at least, the stars and planets aligned. A cash buyer at the bank's requested price... An approval from the bank's "negotiator"... and then... and then... THE BANK DISAPPROVED THE SELLER'S REQUEST FOR A SHORT SALE! And this, after a year of stringing everyone along!

Single Mom...
of modest means...

Here's the rub - They denied this single mother's short sale because she has a job... and got a small raise this past year! A single Mom of modest means... living in their personal residence... Denied!

Oh, and did I tell you that last year, I closed several short sale properties for Millionaires... on investment properties... because of hardship? Hardship like this: My salary has been decreased by 30% in this economy! (Translation: From $400,000 per year way down to $280,000 per year) These folks were relieved of their mortgages and did not receive deficiency judgements at all! Man, does it pay to be able to afford a good attorney!

From Perth Amboy to Flagler - A New Beginning

2012-01-06T17:10:00.002-05:00

Economic Development = Political Hot Potato.

Let's face it, being a Realtor or a business owner or a Director of Economic Development, from 2000 to 2005, was a sweet gig. Houses were flying off the shelf, restaurants were packed and Flagler County, FL was the fastest growing county in the country for two years in a row! Heck, if things hadn't changed, a Palm Coast "starter home" would be $1,000,000 now and Flagler County would now be "skyscraper worthy."

But things did change... in a way that no one could have imagined. Not since the depression of the 1930's, have we experienced such sustained economic frustration. As a Realtor, there is a very personal, reverential humility, as I sit in the home of a friend who is hurting. A typical scenario sees a couple who both had good jobs when I sold them their first home in Palm Coast, for $275,000. Now, six years later, one or both have lost those jobs... or their hours or salary have been seriously curtailed. They have missed a couple of mortgage payments... other bills are getting tougher to pay... credit cards are maxed out...

and they are in some eerie composite of denial, shock, and anger. Their home is now valued at $145,000 and they owe $225,000. They have gotten their first "Foreclosure Notice" from the bank and they are feeling the first pangs of panic. "Frank, what are we going to do?" "Can we do a loan modification?" "What is the difference between a Foreclosure and a Short Sale?" And most important, "Can you help us?"

Counties and cities around the country are feeling the pinch of decreased tax revenue and familiar businesses, which once served us with a smile, disappear in the night. All the construction vehicles, which once annoyed us on our roads, are gone... along with the jobs that rode them. Politicians and their constituents know that something has to be done... but what?

Flagler County, along with Palm Coast, Flagler Beach, Bunnell, Beverly Beach, and Marineland, to include the resort area in The Hammock and the agricultural areas of the Western County, are making it a top priority. Enterprise Flagler did so much in such a positive way... and now the torch has been passed to the newly formed Economic Opportunity Advisory Council (EOAC), a nine member board, chaired by County Commissioner, Barbara Revels. And to be sure, it's not a group which intends to stand alone against the wind. But, rather, intends to embrace the interests of all the players and groups in the county. It's just fine that Palm Coast has its own effort. Why not... it's a big town and can do what it likes to further its agenda. Everyone working together as a team - Chambers of Commerce, tourism groups, business incubators, training facilities and schools, arts organizations, professional and service groups like the Board of Realtors and Rotary, developers, business owners, and political entities - will be the key to success in bringing jobs and revenue here.

And now, a Director for this EOAC has been recommended to the Commissioners, by the nine council members. Helga van Eckert, from Perth Amboy, NJ has been offered the reigns. Assuming she agrees to terms and is approved by the Commission on 1/17/12, she should be on the ground here by the end of February, hopefully sooner. She is impressive, unassuming, business crisp, and has done a heck of a job in her economic development tenure in Perth Amboy. She has a friendly, cordial demeanor and strikes me as one who has the ability to bring groups with diverse personal agendas to the same table. Another factor which impressed me was that she made no attempt at wild promises or sugar plumb visions. She made it clear that establishing a plan, based upon challenging, yet achievable goals, was the first order of business... Communicating realistic expectations to the public and all the players will be the jumping off point. Welcome to Flagler County, Helga... Time to roll up our sleeves.

Economic Revival Afoot For 2012?

2011-12-30T13:59:00.000-05:00

Willis (Sears)
and Trump Towers

Chicago! City "where the fog comes on little cat feet..." "Hog Butcher for the World, Tool Maker, Stacker of Wheat, Player with Railroads and the Nation's Freight Handler; Stormy, Husky, Brawling, City of the Big Shoulders!" Maybe I wouldn't have admitted it back then, but when I was a kid, I had a "favorite poet," and it was Carl Sandburg... and he nailed Chicago with his rugged, yet beautiful prose.

Today, I'm here to enjoy New Years with family and to take them all to a local hill for their first taste of skiing. Come on, Chicago, we're here from Florida... Give us some big time "lake effect" snow!

Skating at Millennium Park

So I pick up the Chicago Journal yesterday and a business page header reads: "Real Estate Revival Revs Up!" New condos being built and older condos and apartments being re-furbished into new, modern condos! Music to my ears! From a Supply & Demand perspective, that is a huge indicator that the bottom has been found. A bit of a contrast to my experience in Palm Coast, Flagler Beach, and Flagler County, FL, where last month I sold a gorgeous Yacht Harbor Village condo on the Intracoastal Waterway, on a bank short sale, for $145,000 to a cash investor. Oh, did I mention that the seller, a mortgage banker friend of mine from Virginia, paid $640,000 for it in 2007? And then there was the Ocean Hammock - Hammock Beach lot I also sold last month for $65,000... that the seller paid $510,000 for in 2005. Ouch! However, and it's really a BIG however... There is movement... Things are selling... Investors are back!

As I read the papers and the blogs here... and watch the business & financial news on local TV, I'm psyched to see lots of signs of revival and strong economic development efforts. Why? because when large, Northern, urban regions start to rev up... it begins the spill-over to smaller markets. Also, if we compare the 4Q2010 to the 4Q2011 in Flagler County, FL, our real estate sales numbers were up nearly 30% and prices were down nearly 10%. Again, the view from Econ 101, says this is good stuff... very good stuff!

Flagler Economic Development Dilemma

2011-12-22T16:10:00.002-05:00

Flagler Economic Opportunity
Advisory Council

There is a lot of chatter in Flagler County now, regarding "Economic Development," especially in light of the recently disbanded Enterprise Flagler private-public venture. The newly established Economic Opportunity Advisory Council (EOAC), and its soon-to-be hired Executive Director, will surely be scrutinized, analyzed, and editorialized, till the cows come home (the closing phrase rendered in deference to Flagler's rich agricultural history).

So, the first conversation overheard goes like this: "Why are we making all the fuss about growth? Flagler County is plenty big enough now." "We moved here from New Jersey to get away from all the traffic, noise, crime, and crowding... Now Palm Coast wants to become like Newark!" "When we moved here, Flagler Beach was empty on the 4th of July and Belle Terre was like a rural road. Now they're even talking about making the Matanzas overpass an interchange!" "And another thing... why are my taxes so high? And don't get me started about the schools... My kids are grown and gone... the young people should be paying for this."

You probably guessed where the second is going: "Hmmmph! My property values keep going down." "Why doesn't the county pay more attention to fixing the roads, building sidewalks, and replenishing the eroded sand at the beach? With the exorbitant salaries we pay these politicians, you'd think they'd take a voluntary pay cut to help out!" "A Carrabba's in Palm Coast would be nice... and a Texas Roadhouse... and a PF Chang's - like in Orlando at the Mall of the Millennium... and a regional mall... and it would be nice if they'd just finish building out Town Center. Then we could lure more large, well paying, green businesses to Flagler. And maybe a Nordstoms in the old Bealls and a Ritz Carlton at the beach?"

When these two folks (above) talk across the fence, they probably don't agree on many things. Therein lies
"The Dilemma." We want to have all of the benefits that growth brings, without... ummmmm... growth!
It's all those sticky issues like, "Who's gonna pay for this?" and "Jobs would be nice, but I don't want commercial development near my home... (Think NIMBY)" Because this has been in the news lately, the editorial commentary (and I use that term very loosely) has been none too complimentary (almost comical, really). Check The Palm Coast Observer, www.FlaglerLive.com, and the Daytona Beach News-Journal. Various and many brave "Anonymous" souls have much to say on the Economic Development topic, such as the well-thought-out: "These 8 bozos don't have a clue what they are doing!" Which, by the way, was penned after the very first meeting, in which the members were being introduced to the county and to one another! I'm thinking that takes a lot of insight!

The truth is that every municipality and county in the country has some form of "Economic Development" effort in place. And they are all dealing with the global economic downturn. To put it in nautical terms, if a boat is taking on water, it's wise to assign some crew members to bail. A good friend of mine "up North" was hired last year to be the executive director of such a group. I asked him to summarize the first year's effort, and he said: "A fishbowl... Expectations much higher than can be reasonably met... With a budget too small to make many waves. I'm the new coach and they want the Super Bowl now!"

We all want things to be wonderful in Flagler, but we aren't ready for a General Motors Assembly Plant or a Microsoft Regional Headquarters. We have an amazing quality of life here and it's our strong suit. We also have a well organized political environment. Yes, they squabble some. And, yes, Palm Coast is the elephant in the room. But for the most part it works as well as most. It's important to consider that "economic development" is not just "jobs;" it's also "revenue generation." Like a great football program, "wins" come from a fine coach, staff, offense, defense, special teams... boosters, and fans. To get the jobs and the revenue, we need to work on refining our current terrific quality of life. Companies will come here, not so much because we have a "50,000 square foot industrial building with utilities, roads, and rail access" ready for them to occupy... But because management knows Flagler County is a great place to live!
In order to be successful, this effort needs to define "who" and "what" Flagler County is... and what it wants to become. And like good parents encouraging their children, it's OK for Palm Coast, Bunnell, Flagler Beach, Marineland, Beverly Beach, The Hammock resort areas, and the agricultural Western County to be what they want to be... as long as the family gets along and encourages one another. In all the Goal Setting models I've ever seen, the scenario starts with: "Make sure your goals are challenging (lest they not inspire)... and achievable (lest they go undone)." I'm hoping Flagler's new effort keeps this at the forefront.

Helping Buyers in Confusing Times

2011-12-02T14:55:00.001-05:00

(These are helpful hints, from agents around the country, as culled from a recent piece in Trulia.com. They make sense right here in Palm Coast, FL, as well.)

1) Give them the Facts

Facts and numbers are an agent’s best resource when it comes to buyer counseling. Know your market - Cold! Know all the differences among "normal sales, short sales, and foreclosures." There are significant nuances that can be game changers. Don't get caught short, without knowing everything a buyer needs to know, to make a good buying decision!

A top NJ agent says “Very often the amount [buyers would] pay for rent is more than forecasted depreciation [for homes].” It’s important that agent point out these facts.

Garret says, “Recent comps, a “cost of waiting” analysis for first time buyers, and news articles” can be helpful as well.

Recent data shows that in many areas buying outweighs renting by large margins. To show consumers how your area shapes up, check out Trulia’s Quarterly Rent vs. Buy Interactive Index or the U.S. Census Burea’s American Community Survey Brief.

2) Explain the Tax Advantages and Fiscal Benefits

“The financial and tax benefits of owning a home vs. renting are very clear,” according to the National Association of Realtors Field Guide to the Social Benefits of Homeownership.

Real estate taxes, mortgage interest, and certain home improvements can all mean significant savings (and potential refunds) for homeowners. Agents can help their potential clients understand these benefits.

To get up to speed on the basics, check out NAR’s Guide or check out this free quick guide from the American Institute of CPA’s on the Tax Advantages of Home Ownership.

3) Show them Interest Rate History

To help her clients take advantage of today’s opportunities, an agent in Colorado Springs, CO, says, “I talk to [buyers] about the record low mortgage rates”.

To make your own custom snapshots of long term interest rates, check out the interactive Historical Treasury Ratepublished by the U.S. Treasury.

4) Ask the Real Question

Serious buyers make serious moves. “It all boils down to their motivation,” says an agent in Illinois.

“One of the best questions I learned is ‘If I find you a perfect house within the next 2 to 3 days is there anything that would stop you from buying it?’” he says.

His question is an important one for agents to consider. Understanding the level and reasoning behind a potential buyer’s motivation can be valuable in helping clients make the best real estate decision.

At the end of the day, the decision to make the leap into home ownerships rests in the client’s hands. A smart agent’s job is to make sure prospective owners have the right information to make their assessment and understand the unique opportunities today’s markets presents.

Leadership, Please!

2011-11-08T12:34:00.001-05:00

As I follow the economic and political news, I see the Tea Party and I see the Occupy Wall Street factions... as the "outside edges" of our playing field. I see the Left scream "Tax those rich fat cats!" As the Right declares an "all out fight against Socialism" in our government.

I see a very predictable current administration, as well as a numbing "sameness" in the current GOP candidates. It's a frustrating and tiresome, constant stream of blah, blah, blah from both sidelines in this game. I suppose, on some level, that's OK, as it provides us with our coveted system of checks and balances.

Ah, but what I'm waiting for, or rather for whom I'm waiting... is a Game Changer! Not an order taker, but a sales professional. Not a play caller, but a Coach. Not a manager, but a real, honest to God, Leader. I'm looking for a Lincoln, Churchill, Jefferson, Kennedy, or Reagan. I'm looking for a God fearing leader, who is not ashamed... or deterred by public opinion, regarding his or her relationship with our Creator. I'm looking for that man or woman who can look us in the eye, assure us that it's going to be OK, take us by the hand... and LEAD us out of this mess and into something better than we've ever known before.

Someone who can instill the desire to serve, rather than the desire to work the system. Someone who can speak clearly, without assessing blame. Someone who can speak truth, without fear of reprisal. Someone who knows how to both apologize and to forgive. And please forgive me here for taking off my rose colored glasses... But someone who knows that in a world filled with evil and ill intent towards the US, that a powerful, efficient, effective, well equipped and trained military... is absolutely essential, without compromise. Human nature will not be changing anytime soon. I fantasize ideas such as "give peace a chance," yet I'm not sure how that plays in terrorist cells around the world. Like it or not, the free world needs us to be strong and adaptable to the current chaotic global situation...

I am reminded of the Colonel in Viet Nam... I was a green Lieutenant and a Platoon Leader with the 196th Infantry Brigade. We were on a lonely and foreboding hilltop, deep in the boonies, and our battalion was told to "dig in." The Colonel came by to check our progress and I asked him, "Sir, just how dug in do you want us to get?" In his wisdom (the man went on to become a 4 Star General and Commander of US Forces in Europe) he said, "Lieutenant, dig in like you'll be here for the rest of this war... but be ready to move out on a moment's notice!" I got it. That was leadership... Strong, yet flexible. And so it gets said, it's easier to lead when the going is smooth. Like this Colonel, we need a leader who can take decisive action, under extreme circumstances. His leadership saved a lot of bacon...

The rules of the world have changed since our heyday in the 25 years after WWII. We need a leader who can get off the status quo... adapt to the changes, as needed... and most importantly, create the changes required to assure our success for the coming generations.

Bank Short Sale Policy? ROFL!

2011-10-18T16:48:00.000-04:00

BANKS REALLY CARE ABOUT YOU!

WHAT? THEY REALLY DO!

BANK SHORT SALE POLICY? NOT!
""Market Value" is a perfect example of the lack of order... and one of the wild aspects of the short sale process. There's no set percentage of market value a bank is willing to accept. Each property, location, bank, and negotiator combination is different; and when you add in investors and Private Mortgage Insurance carriers to the mix, you have even more chaos to consider." (excerpted from a Trulia newsletter article, by by Sarah Stelmok)

And this is just the tip of the Titanic sinking sized iceberg. In the background, I want you to imagine the words and melody of, "Nobody Knows The Trouble I See..." We here in Flagler County, Florida are awash in a sea of short sales. You'd think that by now, after five full years of dealing with this beast, the banks would have the deal down. If you live in Palm Coast, Flagler Beach, or Bunnell (Zip Codes 32137, 32164, 32136, 32110), chances are good that there's a short sale on the market on your street. Whether you're in the Western County, Seminole Woods, or Hammock Beach - it doesn't matter. No economic sector is immune, as we have $45,000 short sales and $1,500,000 short sales.

Here's my beef: It doesn't matter if it's Wells Fargo, Bank of America, Sun Trust, etc. There is no discernible policy... EACH DEAL IS DIFFERENT. Honestly, it seems as if they make it up as they go. I will say that the smaller and more local the bank is - the better their policy! When (and "if") they ever get it together, the short sale disaster will be over in less than two years.

Flagler Economic Advisory Council

2011-10-10T15:23:00.000-04:00

(Posted on: October 4, 2011
on www.flaglercounty.org)

County Seeking Volunteers For Economic Opportunity Council

(Now that "Enterprise Flagler" is in the history books...)

A crucial part of Flagler County’s new plan for economic development is an eight member board of volunteers to guide a staff of professionals working on economic development in the county.
Volunteers with a background in business and two at large members will meet monthly to help create the next step in economic development for Flagler County. The Flagler County Commission is seeking six individuals with background in one of the following areas: Finance (investment banking or angel investment); agriculture; marketing; real estate (industrial park developer, general contractor, commercial realtor) and high tech business.
Interested individuals are asked to complete an application on line at www.FlaglerCounty.org, under advisory board vacancies. The application and supplemental information can be sent via email, fax or regular mail to Christie Mayer at (cmayer@flaglercounty.org) or call (386) 313-4094.

"2011-2012 Jobs Program"

2011-09-27T12:03:00.003-04:00

Seen Any Factories Lately?

There are few times, like major presidential election years, to see what makes the good old USA tick! All the rage right now is the President's "Jobs Program." Now we don't have to agree with the content, to agree with the concept. We are hurting and we need some leadership on the Jobs Front! It's so much more than, "Let's fix our old roads and bridges..."

Seen Any Farms Lately?

I grew up in a factory town in the economic heyday years, following WWII. Endicott, NY, was home to both the largest IBM manufacturing facility, as well as Endicott-Johnson Shoes. We also had General Electric, Link Aviation, Ansco Film, and a host of others. Everyone who wanted a job, with decent pay and benefits, could get one.

And then I blinked... WE DON'T MAKE ANYTHING ANYMORE! Chances are 95% + that the computer you are using to read this, the TV upon which you watched the morning news, the car you drove to work, the cell phone you used to check on your kids, the clothes you are wearing, and the orange juice you had for breakfast... are from Taiwan, Japan, Germany, India, China, and Argentina.

When times get really tough - "survival time tough," people get wildly creative, regarding the basics of "Food, Clothing, and Shelter"... which, by the way, includes the subsets of tools, transportation, and the items we need to make a living. In other words, we need to start making and growing our own stuff again!

Seen Any Home Construction Lately?

Note to politicians: You want a "Jobs Program?" BRING BACK THE FACTORIES AND THE FARMS! We used to be the envy of the world in this regard. Is everybody now dead who knew how to do this? Focus on breeding our own facilities - and allowing an economic climate for competition and growth - is where our efforts should reside. We may live in a high tech, green conscious world, but every job can't be in computer chips and solar panels. We need to make stuff and grow stuff, in order to equalize the balance of trade. It really is the key element of our economic future. Bill Clinton said it best: "It's the economy, stupid!"

You CAN Sell Your House in Today's Market!!!

2011-08-25T15:38:00.002-04:00

I'm meeting with a lot of would be sellers of real estate... who are running scared, in light of today's economic climate. (Note: They are the polar opposite of those sellers who think it's still 2005, but that's another story for another day...)

The truth is, however, that as of today, 08/25/2011, we have sold and closed 1,814 houses, condos, lots, and commercial buildings so far this year... in our small Flagler County, FL Realtor MLS/Multiple Listing Service (mostly in Zip Codes 32137, 32164, 32136, 32110) - One Thousand - Eight Hundred - Fourteen! That's a lot of closings in an economy that's supposedly in the doldrums! Now what's really different from 2005 is that 53% of these are distressed sales - those that are corporate or bank owned or short sales. In that segment, the overriding factor is "price." Many (if not most) of these are in some form of dis-repair. It's not a lot of fun to show dirty, overgrown houses with bugs and mold in 98 degree heat with no lights or A/C! If you're in a bad way and walking away from your home, it's unlikely that you'll cut the grass, paint, or look out for the bank's best interest...

So let's focus on the 47% "normal" market segment. You want to leave retirement paradise in Florida to be closer to your daughter and grandchildren in Endicott, NY. Here's where you really can make a difference. Although price is more important than ever, "location, location, location" and "condition, condition, condition" are huge players and will separate you from the pack! Many times, just a few hundred dollars will be enough to get a home "market ready," however, sometimes it can be a more significant need. And believe me, it's way more than painting and cleaning I'm talking about. I am amazed that someone would put a $500,000 - $1,000,000 waterfront home on the market... and not detail it! So often, we hear, "If it's meant to sell, it will sell." Or, "There's a buyer for every house." There's more, but you get my meaning. If you wanted to sell a used car, you'd detail it before a buyer came to look at it, right? I'll tell someone, "If you'll follow my advice and put $5,000 - $10,000 into market preparation, you'll be way ahead of the game." And their response is always, "Will we get all our money back?"

The answer to that loaded question is, "Maybe." HOWEVER, if the effort causes your home to sell (at whatever the market will bear), while your competition sits "For Sale" - isn't it worth it? Here is what I'm saying: Don't shotgun your effort at market prep... be more like a laser. Give a lot of thought to a real plan of action. I mean, if you went the extra mile and put $10,000 of market preparation into a $500,000 house, you just might put real distance between you and the competition... You may even create a dynamic that could cause it to sell near, at, or over asking price!

And what you need to do, may be quite different than what you might expect!

Here is the "Three Legged Stool" for your Home Sale success:

Call me and I will come to your home and help you with the prep plan. I have a dozen or more focused suggestions that will make your home outshine the others.
Listen to price advice that can be backed up with hard data... It's fair to say that the stainless steel nails you used on your garage shelves project are not worth $20,000. Look in the mirror and practice saying, "I will not say that we "don't want to give our house away"..."
Allow me to prepare a "success oriented" marketing plan for you. Once you've done steps 1 & 2, we'll want to let the buyers know about it!

(You can reach me in Palm Coast / Flagler Beach, FL at 386-931-1987)

The Economics of Attitude

2011-08-05T11:51:00.004-04:00

This is my actual Econ 101
"Equilibrium" chart
from my notes in college:-)

Well, the DOW took a huge plunge yesterday (8/4/11) and the related article in today's Daytona Beach News Journal screamed: "Markets Gripped By Fear."

It then went on to explain how "desperate traders" were trying to find safe havens for their money, as news of economic woes swept through Italy and Spain.
Gold spiked at an all-time high... Unemployment figures were disheartening... GDP numbers were less than we hoped for... More manufacturing jobs went to China and Malaysia. O! M! G! "Run, Chicken Licken, the sky is falling!" Surely, the world is coming to an end!

Economics, I believe, is nothing more than our reaction to a set of circumstances. It has been said that, "Nothing is, that our thinking does not make it so." The life expectancy of a trader on the floor of the New York Stock Exchange can't be very long, because they say that stress can kill you. Back during the Vietnam War, we Lieutenants used to take sick pride in the legend that: "A Platoon Leader's life expectancy in combat is only 15 seconds!" It must be the same sort of thing for traders on a bad market day!

Now I'm not a preacher, but I sure appreciate what the Bible has to say about everyday life issues. On the topic of "worry," the evangelist Matthew wrote:

"Can any one of you by worrying add a single hour to your life?"
and "Therefore do not worry about tomorrow, for tomorrow will worry about itself. Each day has enough trouble of its own."

Terrific advice, I'd say. But maybe they were blessed 2,000 years ago, by not being overwhelmed by Facebook, Twitter, Text Messages, FOX & MSNBC and constant/instant Cable coverage of the minute details of life? I wonder if Matthew had his own QR Code?

NEWS FLASH: The media makes great sport of whipping breezes into tornadoes. News reporter: "Do you believe that today's market losses will PLUNGE THE ENTIRE WORLD INTO AN ENDLESS DEPRESSION... AND POSSIBLY WORLD WAR III?... WELL, DO YOU!!!???"

The modern day evangelist, Yogi Berra, would say,

"Hey, 90% of economics is half mental!"

I say this: "The measure of an economy is not what happens to it, but rather how we react to what happens!" Or, as my brother used to say, "S--t Happens. So what. Now what?"

Rent With Option To Buy

2011-08-04T10:56:00.002-04:00

Through the past 25 years of my real estate career, the term has come up many times: "Rent With Option To Buy." Almost always from a prospective tenant customer, who had no idea what it really meant, yet sensed it would be a cool thing to ask about, because it was mentioned around the water cooler at the office.

In a nutshell, renting with an option is a deal struck between a tenant and the landlord, which could lead to the tenant buying the home in the future. It can be a great thing for a renter, who is having current difficulty with a divorce, job change, credit score, etc., but has a favorable future. Usually, a non-refundable deposit is made to secure the deal. If the tenant does not follow through, the landlord keeps the money. Also, the deal can be crafted to put a portion of the monthly rent toward the future down payment.

Let's say there is such a deal here in Flagler County, Florida. We have many rental properties in Palm Coast zip codes 32137 and 32164... also in Flagler Beach zip code 32136. If a home has a current market value of $250,000 and rents for $1,500/month, one scenario could look like this:

Purchase agreement is entered into for $265,000, to close in two years on 08/04/2013.
Tenant/Buyer gives a $15,000, non-refundable deposit to the landlord.
Monthly rent is set at $2,000 and $500 of that goes toward the purchase price. That's $12,000 over the 2 years of the lease.
At closing, the $15,000 deposit and The $12,000 accumulated funds, reduce the purchase price of $265,000 to $238,000.
If the tenant does not qualify for a mortgage at that time, or does not follow through, those monies are the seller's. On the other hand, if it goes, the tenant stays in the house and enjoys the benefits of the forced discipline of the process.

There are a host of considerations, such as "where the market goes." If it screams upward to $300,000, the seller will feel pain... On the other hand, if it falls to $200,000, the buyer will be trying to walk away and cut his losses. Then there are little things like, "If the rent is late, that month's contribution does not count," etc., etc. As always, whether you are the buyer or the seller, it may be a great idea to have an attorney review your lease-option contract... before you sign it... so you go in with your eyes wide open!

Flagler County, FL Waterfront Property

2011-08-02T12:25:00.002-04:00

Waterfront property in Flagler County, Florida is positioned to SELL! Many waterfront homes are now selling for less than the lots they are on sold for in 2005!

"Waterfront" here is defined as "directly on a Salt Water Canal, the Intracoastal Waterway, or the Atlantic Ocean." They are all located in Palm Coast, or Flagler Beach areas in the 32137, 32164, and 32136 zip codes.

They range from a modest 1,276 square foot (under A/C), 3BR/2BA, ranch on a salt water canal (access to the Intracoastal), at $165,000... To a monster 3 story, 6,500 square foot, 4BR/7BA, custom directly on the Atlantic Ocean, at $3, 998,000. Surely something for every taste and wallet...

If you want to be on the water - it's time!

Corruption Hurts The Housing Industry

2011-07-28T13:20:00.003-04:00

Corruption won't go away, unless we figure out a way to legislate human nature. We can, however, limit the negative impact it has on our economy. I'm mostly a "limited government conservative," yet can't quite grasp multi-million dollar "bonuses" for the fat cats at the top of the government housing agencies...
Check this great (2 minute) video:
http://www.colsoncenter.org/twominutewarning/

The Federal Budget Fix - So Obvious!

2011-07-24T16:10:00.001-04:00

The Budget Fix!

(by Frank Zedar on Sunday, July 24, 2011 at 1:06pm)

The Fix:

Cut the banks a sweet deal, so they can hoard cash and not lend it to small businesses, who then cannot hire because they cannot expand. Then levy from those who have it and distribute it to those who don't and then when they spend it, tax it again. Then give that to the banks again in the form of incentives, so they can flood the market with shadow inventory foreclosures and stifle the new growth the government said we had going. Then apologize to the fat cats for messing with them and ask for campaign contributions, so all the awesome politicians can get re-elected... and bend over, so they can do it to us again! Perfect!

Palm Coast, FL Real Estate Heating Up?

2011-06-28T16:09:00.001-04:00

Back in the day (1986-1990 and 2000-2005), when the market was "hot," multiple offers were common. Properties sold for more than the asking price all the time. Sellers were happy! Buyers were happy, because if they paid a lot, it didn't matter. Everyone "knew" (we were all so very wise) that it would keep going up anyway!

Then 2006 happened. Everyone sort of knew what a foreclosure was, but what the heck was a "short sale?" And then when we found out, a lot of us said things like, "I'm not going to do short sales or foreclosures... They're complicated and a lot of work... blah, blah, blah." And then time went by... and the market fell further... and the distressed market became 60% of total sales (which were precious few to begin with).

But guess what? The bottom of the market is now "hot." These things are selling. If you find one that is low and priced correctly, it will fly. Anything under $100,000 that is clean... and not a short sale... is like a diamond. People will fight over them. And, unfortunately, it often brings out the worst in many. Ethics get cloudy. It used to be that if we asked, "Is this unethical?" the answer was, "Probably." Now the answer to that question is often, "Whatever!" I guess it's that old adage, that "desperate times create desperate people."

Remember studying "Supply and Demand" in school? And the concept of "Caveat Emptor" (Let the Buyer Beware)? I'd advise reading up on both if you are jumping into the real estate market - as a buyer or a seller. And shop around for a good Realtor. Ask hard questions about how they handle bank and short sale issues and multiple offer scenarios. Listen well and their answers will tell you a lot about them...

8 Pickcane Lane - $149,000!

2011-05-04T12:42:00.000-04:00

8 Pickcane Lane - $149,000!

Waterfront & Golf in Palm Coast & Flagler Beach, FL

2011-04-30T12:59:00.000-04:00

It's another gorgeous Saturday, here in the Palm Coast, Flagler Beach, and Ormond Beach, Florida area...

I just showed a nice guy from New Jersey (currently living in Central Florida) one of our amazing listings on Oceanshore Blvd (A1A) in Flagler Beach. I got there early, turned on all the lights, and sat on the upper deck porch, being lulled into peacefulness by the waves, the breeze, and the blue-cloudless 82 degree day...

Our potential buyer pulled up in a convertible - good choice for a great day in a beach town. Unless I'm losing my touch, I think he loved it... and what's not to love? 4 Bedrooms, 3 Full Baths, Pool, Lots of Tile, Metal Roof, 2 Car garage (a Big Deal on the beach to protect your Bentley... or whatever), 2 levels, Huge Porches and Ocean and River views, 2,465 feet under air/heat, and on a half acre lot with pristine lawn and landscaping... for $489,000! Are you kidding me? It's crazy, because just the LOT would have been way more in 2005! I'm hoping he calls me back and says his wife and family want to see it...

Here are some Real Estate facts about Flagler County, Florida that should get your attention:

There are lots of Ocean properties, all the way up to $7,700,000 right now, however, there are 27 single family homes today that are either "Oceanfront," or "Ocean View," for between $179,900 and $499,900.
How about over 300 homes on "Saltwater Canal, Intracoastal Waterway, River, or Lake" ... with 100 of them being below $300,000!
Or over 100 homes on our area's beautiful Golf Courses, 31 of which are priced between $105,000 and $299,000!

If you have a "Florida Itch," or more specifically, a "I Want a Great Buy on a Florida Ocean, Water, or Golf Course Property Itch" - We'd love to hear from you!

Frank Zedar or Maritssa Vazquez
Parkside Realty Group, Flagler Beach & Palm Coast, FL
Cell/Text: 386-931-1987
email: frankzedar@gmail.com

"Palm Coast, FL, Housing is Back!"

2011-04-15T11:19:00.001-04:00

For those of you who read this blog, you know I watch the "S&P Case-Shiller Index," as the most perceptive peek at where the real estate and housing markets are trending. In a 3/28/11 CNN-Money piece, these are the snippets that jumped out at me:

If all the noise you're hearing about housing has you totally confused, join the crowd! One day you'll read that owning a home has never been more affordable. The next day you'll see news that housing starts have plunged to nearly their lowest level in half a century... (as headlines announced in March)... After four years of falling prices and surging foreclosures, it's hard to know what to think. Even Robert Shiller and Karl Case can't agree. The two economists, who together created the widely followed S&P/Case-Shiller Home Price indices, are right now offering sharply contrasting views of housing's future. Shiller recently warned that the chances were high for a further double-digit drop in U.S. home prices. But in an interview with Fortune, Case took a far brighter view: "The lack of new home building is a huge help that a lot of people are ignoring," says Case. "People think I'm crazy to be optimistic, but housing is looking like "The Little Engine That Could."

Foreclosure markets: The outlook is brightening

The true disaster areas for housing since the bubble burst have been Sunbelt cities such as Las Vegas, Phoenix, Miami, AND MOST OF FLORIDA -- places that boasted great job and population growth in the mid-2000s, only to suffer a housing crash that swamped them with empty homes and condos and crushed their economies. But people always want to live in those sunny locales, and their job markets are starting to recover, albeit slowly. In foreclosure markets the inventory problem is far greater because it includes not just traditional resale homes but millions of distressed properties. Fortunately those houses are now such a screaming deal that investors, including lots of mom-and-pop buyers, are purchasing them at a rapid pace.

Even with investors jumping in, buying activity in foreclosure markets hasn't yet increased enough to bring inventories down. But, it will soon... Prices will fall a couple of percentage points lower in the distressed markets in the short run. "But that will be overshooting," he says. "It's like an elastic band (Remember The Elasticity of Demand, from Econ 101?) - If prices do drop this year, they will need to bounce back because they'll be far too low compared with rents and replacement cost." Renters will come off the sidelines to purchase homes in the years ahead, precisely the opposite trend of the past few years.

So let's state it simply and forcibly: Housing is back! Think about it. The trend has been down for five and a half years in most of Florida. It's time...

"Ormond Beach & Flagler Beach, FL - Ocean Condos"

2011-04-12T12:24:00.000-04:00

The following will give you a peek at the current condo market in Flagler Beach, FL and Ormond Beach, FL, to include Ormond By The Sea. For purposes of this blog post, I have included ONLY those condos which offer an "Ocean Front or Ocean View" frontage:

(*Financing Note: It's more difficult to obtain financing for condos in these challenging financial times. It's not as tough as Miami, yet not a piece of cake either. Because of high "Rental to Owner Occupant" ratios, as well as condo fee defaults, short sales, etc., "cash is king." FHA loans are very tough and often require 35% down (well above the old 20% norm). Your mortgage professional can guide you, regarding these matters.)

Flagler Beach:

Flagler Beach is a great town in Flagler County and offers a waterfront and beach counterpoint to the "old Florida" County Seat of Bunnell and the newcomer/fastest growing US city of Palm Coast. Because of zoning and city ordinances, high rises are few, limited to one North of the pier and a small handful South of the pier, near the landmark water tower.

There are currently 170 ocean front - ocean view units For Sale.
They range from $99,000 (a 425 square feet, 1BR and the lone unit under $100K) to a high of $2,800,000.
The upper end units tend to be at the Northern Peninsula end of town in exclusive gated, golf course communities. They are often referred to as "Flagler Beach," but are actually a Palm Coast mailing address.
A challenge to investor buyers (and a perceived blessing to some full time residents) is that renting a unit can be a city ordinance violation. One must be in possession of a coveted "Rental License." If your unit is not grandfathered, they are tough to come by... perhaps easier if you are in the city's "Tourist Commercial" area, between 9th Street, North and 9th Street, South.
There are 24 units listed below $200,000.
Past six month statistics:

Sold Prices

Low = $101,000
High = $1,150,000
Avg = $343,000
Median = $273,000

Price Per Square Foot

Low = $90
High = $300
Avg = $177
Median = $169

Days on the Market

Average = 272 days

Ormond Beach - Ormond by the Sea:

Ormond Beach is a great beach town which basically extends South from Flagler Beach and ends at Daytona Beach. For our purposes, we'll say that the "Ormond Beach Peninsula" extends a short way up A1A from Route 40 (Granada Blvd.) and comprises the direct beach front high rise condos. "Ormond by the Sea" condos are low rises and are on the West side of A1A, with access to the beach by way of "dune walkovers."

There are currently 88 condos For Sale.
They range in price from $95,000 to $699,000.
55 of them are under $200,000.
Generally, with the exception of some of the pricier high rises, these units are easier to rent than their Flagler Beach cousins. Most have a rental restriction of a 1 week to a 1 month minimum. How strictly these are enforced, varies from condo to condo.
Past six months statistics:

Ormond by the Sea:

Sold Prices:

Low = $79,000
High = $319,000
Median = $139,000
Average = $150,000

Price Per Square Foot:

High = $150
Average = $108
Median = $108

Days on the Market:

Average = 192

Ormond Beach (North of Rt. 40):

Sold Prices:

Low = $82,000
High = $240,000
Median = $170,00
Average = $165,000

Price Per Square Foot:

Average = $124

Days on the Market:

Average = 385

...So there you have it! What does this mean? You can get a great condo with a great ocean view... or direct ocean front, for under $200,000. Many of these were selling closer to $500K in 2005/2006. Call me if you have questions... or want to go see property for yourself:
Direct: 386-931-1987 or email: frankzedar@gmail.com

"10 Deadly Buyer Mistakes in Real Estate"

2011-03-28T18:18:00.001-04:00

Actually there are a lot more than 10. But you wouldn't read "458 Deadly Mistakes...," would you?

What I'm trying to say is that we Realtors can really, really, really, REALLY help you! It's a chaotic mess right now... a winding path through the real estate jungle. We're like every other profession, in that some of us are not so professional and should have our licenses taken away. Many of us are average and can help you out. Then there are those of us who live this... We eat, drink, and breath real estate. It's in our blood. It's a big part of who we are. By the way, we're the ones you want to call. Then, when the deal is done, you can say, "Wow, there's no way we could have done that on our own!"

Here are 10 Very Basic Mistakes to Consider:

Get pre-qualified by a lender before you ever start looking. Pre-approved is even better.
Make sure you get a home inspection - even if it's an "as-is" transaction.
Don't call "every agent on every sign" you drive by... or call every agent on the Internet. Find one agent you can trust and put it on them.
There's way more to it than a website, an ad in the paper, or an open house.
Narrow your search (PLEASE!) before you start. You will never "get there" if you want to "see everything for sale in town."
Think ahead 3-10 years. Are you ready to start a family, etc?
Due diligence is important. Satisfy yourself on locations, schools, commutes, crime reports, etc.
Think of "total costs." Stay in your budget. Don't buy to the max and then say, "Oh, oh... we have no money for furniture!"
Don't get involved in a "Short Sale" unless you know all about them first. You need lots of patience and even then it might not go.
It's a buyer's market, but don't let that fool you into thinking every house will yield a massive discount from the asking price. It's all about how well the house price/value ratio is addressed... and the seller's motivation.

In Palm Coast, FL (as well as Flagler Beach and all of Flagler County... Southern St. John's and Ormond Beach), call me and we can talk about this. Cell: 386-931-1987.

"Short Sales - MUST READ!"

2011-03-23T16:02:00.002-04:00

Everyone hears about "Short Sales" these days... and probably knows a little bit about them. Sort of like me, in that I know a little bit about cars. Engine? Check! Trunk? Check! Radio Controls? Check! But beyond jumping a battery, changing a fuse, or inflating the tires... I'm not much good. The other day a lady called me about a listing I have in Flagler Beach, FL. I said, "It's a short sale. Do you know anything about how they work?" Her answer was pretty good. "Of course I know how they work," she said, "I went to real estate school!" Now I spent 20 years in the Army and had a little vacation in Viet Nam in 1968-69. Her response was sort of like, "Of course I know what combat is like. I went to Basic Training!"

Suffice it to say that in today's real estate market, Short Sales = Combat:

In the US today, 1 in 7 are not making their mortgage payments and are in default. Closer to 30% have missed at least one payment or are experiencing difficulty.
The US unemployment rate is near 10%. The "real rate" in Palm Coast, FL... Flagler Beach, and Flagler County, FL is "over 20%."
The number of short sales has tripled since 2008. Nearly 60% of single family homes closed in the past 1-2 years in Palm Coast, FL, has been a short sale.
The national S&P "Case-Shiller Index" predicts another 6 - 8,000,000 foreclosures before the end of 2012... and Florida will see more than our fair share of these!

As a CDPE (Certified Distressed Property Expert), we are uniquely equipped and trained to get you through the complex process of a short sale - AND TO HELP YOU AVOID BEING FORECLOSED UPON!!! Now, it's true, any licensed agent can "take your listing." Yet you want to be very careful here. Ask them to explain the process - in detail.

Ask them about:

The ten or more required forms and authorizations needed to get a short sale off the ground.
The five-step pricing strategy that will prove effective for the market... and the bank.
The back door information needed for the file... for when negotiations start with the bank's loss mitigation rep.
The ways to compile and present a professional "short sale package" to the bank.
The way to deal with needed repairs.
The ways to deal with Title issues, IRS & Federal tax liens, and other property related liens not recorded as mortgages.
The ways to reduce their legal fears and effectively handle the question, "Do we need a lawyer?"
The ways to effectively market their short sale listing.
The ways to help them move forward upon completion of their short sale closing.

There's a lot to it. make sure you hire the right agent to maximize your chances for a successful short sale. If you are in need, call me at 386-931-1987. As a CDPE with 25 years experience... and as a Harvard Certified real estate mediator, I can help you...

Buying a Home? 3 Great Questions!

2011-03-21T15:37:00.002-04:00

3 Questions You Must Answer Before Buying a Home

by THE KCM CREW on JANUARY 4, 2011 · 15 COMMENTS

in FOR BUYERS,PRICING

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If you are thinking about purchasing a home right now, you are surely getting a lot of advice. And most of that advice is probably negative. Why buy now with prices still falling? Don’t you realize real estate is no longer a good investment? Don’t you know that people who bought five years ago lost their shirt? We understand the concern your friends and family have. However, let’s look at whether or not now is actually the perfect time to buy a home.

There are three questions you should ask before purchasing in today’s market:

1. Why should I buy if house prices are still depreciating?

We believe that in most parts of the country prices will in fact soften in 2011. Price is the major concern for anyone selling a home. When you are buying, COST should be your primary concern however. Your monthly payment (cost) is definitely impacted by the price of the home you purchase. The other major component is the interest rate. Waiting for prices to bottom out while rates are increasing can wind up costing you more over the life of the mortgage (see chart here).

Over the last seven weeks, rates have increased over 1/2 a point going from 4.17 to 4.86. Looking at the attached chart shows this increase. Waiting for prices to bottom out seems to make perfect sense. Yet, at a time when rates are increasing, it might NOT make sense. Make sure you have a mortgage professional help you with this math before making a decision.

In an article last week CNN Money reported:

“You can kiss those record lows goodbye,” said Greg McBride, chief economist for Bankrate.com.

Keith Gumbinger of HSH Associates, a provider of mortgage information said that the market reached a new plateau.

“I don’t think we’re going back to a 50-year low anytime soon without an economic collapse,” he said. “Rates will probably never revisit those levels.”

2. When will I begin to see appreciation if I buy now?

This is a great question. Macro Markets, LLC is a company that studies housing prices. They started their Home Price Expectation Survey in 2010. They ask 100+ housing industry experts to project housing prices through 2015. The most current survey shows that the experts are predicting prices to soften until 2012. The experts then project prices to rise reaching a cumulative appreciation of over 10% by 2015.

Purchasing a home today makes great sense from a financial standpoint. Think of the old axiom: You want to buy low and sell high. We may be at the low point regarding the COST of a home. But, this decision should not only be a financial one.

That leads us to our third and final question:

3. Why am I buying a home in the first place?

This truly is the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with finances. The Fannie Mae National Housing Survey shows that the four major reasons people buy a home have nothing to do with money:

A good place to raise children and for them to get a good education
A place where you and your family feel safe
More space for you and your family
Control of the space

What non-financial benefits will you and your family derive from owning a home? The answer to that question should be the reason whether you decide to purchase or not.

Bottom Line...

The COST of a home will probably remain relatively unchanged even if prices continue to depreciate. Don’t allow money to get in the way of you making the right decision for you and your family. In the long run, the finances will work in your favor anyway.

"Mortgage Myths in the Short Sale & Foreclosure Economy"

2011-03-16T12:42:00.000-04:00

(This commentary is by Tara-Nicholle Nelson, a Broker in San Francisco, CA. It was written as a real estate research piece for Trulia. It is well done and is accurate. The list of "hard hit states" at the bottom includes Florida. However, at this time, only Lee County qualifies. Obviously, the system is not fully fleshed out, as the Flagler County, FL areas of Palm Coast and Flagler Beach are experiencing short sales at an unprecedented rate - 60% of closings!)

In a mortgage market that changes as quickly as this one, today’s fact is tomorrow’s fiction. For buyers, misinformation can be the difference between qualifying for a home loan or not. Sellers and owners, knowledge is foreclosure-preventing, smart decision-making power! Without further ado, let’s correct some common mortgage misconceptions.

1.       Myth: Buyers with bad credit can’t qualify for home loans. Obviously, mortgage guidelines have tightened up, big time, since the housing bubble burst, and they seem likely to tighten even further over the long-term. But just this moment, they have relaxed a bit. In the last couple of weeks, two of the nation’s largest lenders of FHA loans announced that they’ve dropped the minimum FICO score guideline from 620 (which allows for some credit imperfections) to 580, which is actually a fairly low score.

At a FICO score of 620, buyers can qualify for FHA loans at many lenders with only 3.5 percent down. With a score of 580, the lenders are looking for more like 5 to 10 percent down – they want to see you put more of your own skin in the game, and the higher down payment lowers the risk that you’ll default. However, if your credit has taken a recessionary hit, like that of so many Americans, this might create a glimmer of hope that you’ll be able to take advantage of low prices and interest rates without needing years of credit repair.

2.     Myth: The Mortgage Interest Deduction isn’t long for this world. Homeowners saved over $85 billion in 2008 by deducting their mortgage interest on their income tax returns. A few months ago, the National Commission on Fiscal Responsibility and Reform caused a massive wave of fear to ripple throughout the world of real estate consumers and professionals when they recommended Mortgage Interest Deduction (MID) reform, which would dramatically reduce the size of the deduction.

Fact is, the Commission made a sweeping set of deficit-busting recommendations to Congress, a few of which are likely to be adopted. Fortunately for buyers and sellers, MID reform is not one of them. Very powerful industry groups and economists have been working with Congress to plead the case that MID reform any time in the near future would only handicap the housing recovery. Congress-folk aren’t interested in stopping the stabilization of the real estate market. As such, the MID is nearly universally thought of as safe – even by those who disagree that it should be.

3.       Myth: It’s just a matter of time before loan guidelines loosen up. The US Treasury Department recently recommended the elimination of mortgage industry giants Fannie Mae and Freddie Mac. I won’t get into the eye-glazing details of it here, but the long and the short is that (a) this is highly likely to happen, and (b) it will make mortgage loans much harder and costlier to get, for both buyers and homeowners.   It’s possible that loans are as easy to get as they’re going to get. So don’t expect that if you hold out, zero-down mortgages will come back into vogue anytime soon. Fortunately, Fannie and Freddie aren't likely to disappear for another 5-7 years, so you have a little time to pull your down payment and credit together. If you want to get into the market, the time to get yourself ready is now!

4.       Myth: If you don’t have equity, you can’t refi. Much ado is being made about how stuck so many people are in their bad loans, because they don’t have the equity to refinance their way out of them. If you’re severely upside down (meaning you own much, much more than your home is worth), stuck may be the situation. But there are actually a couple of ways homeowners can refi their underwater home loans. If your loan is held by Fannie or Freddie (which you can find out, here), they will actually refinance it up to 125% of its current value, assuming you otherwise qualify for the loan. That means, if your home is worth $100,000, you could refinance a loan up to $125,000, despite the fact that your home can’t secure the full amount of the loan.

If your loan is not owned by Fannie or Freddie, you might be a candidate for the FHA “Short Refi” program. While most mortgage workout plans are only available to people who are behind on their loans, the Short Refi program is only available to homeowners who are current on their mortgages and need to refinance up to 115 percent of their homes’ value. So, if you owe $250,000 on your home, you can refinance via an FHA Short Refi even if your home’s value is as low as $217,000. If you think you’re a good candidate for a short refi, contact your mortgage broker, stat – there are some in Congress who think that this program is so underutilized (only 245 applications have been submitted since it rolled out in September – no typo!) that its funding should be diverted to other needy programs.

5.       Myth: If you’ve lost your job and can’t make your mortgage payment, you might as well mail your keys in. Until recently, this was essentially true – virtually every loan modification and refinancing opportunity required that your economic hardship be over before you could qualify. And documenting income has always been high on the requirements checklist. But there are some new funds available in the states with the hardest hit housing and job markets, which have been designated specifically for out-of-work homeowners.

The US Treasury Department’s Hardest Hit Fund allocated $7.6 billion to the states listed below – all of which are now using some portion of these funds to offer up to $3,000 per month for up to 36 months in mortgage payment assistance to help unemployed homeowners avoid foreclosure. Contact the state agency listed below if you need this sort of help:

Alabama: http://www.hardesthitalabama.com/
Arizona: https://www.savemyhomeaz.gov/
California: https://www.keepyourhomecalifornia.org/
Florida: https://www.flhardesthithelp.org/
Georgia: http://www.dca.state.ga.us/housing/homeownership/programs/hardesthitfund.asp
Illinois:http://www.ihda.org/
Indiana: http://www.877gethope.org/
Kentucky: http://www.kyhousing.org/
Michigan: http://www.michigan.gov/mshda/buyers/save_the_dream/helping+hardest+hit+homeowners+-+contact+your+mortgage+servicer+for+assistance
Mississippi: http://www.mshomecorp.com/firstpage.htm
Nevada: http://www.nahac.org/
New Jersey: http://www.state.nj.us/dca/hmfa/home/foreclosure/homekeepers.html
North Carolina: http://www.ncforeclosureprevention.gov/
Ohio: http://www.savethedream.ohio.gov/
Oregon: http://www.oregonhomeownerhelp.org/
Rhode Island: http://www.hhfri.org/
South Carolina: http://www.scmortgagehelp.com/
Tennessee: http://www.thda.org/
Washington D.C.: http://www.dchfa.org/

"Home Value Confusion? You Bet!"

2011-03-07T13:12:00.001-05:00

So you want to sell your home in Palm Coast, FL... What pricing strategy will you follow? Hint: It is no longer 2005 and buyers are a tiny bit smarter than they once were! If I come to visit you to discuss putting your home on the market and your opening comment is, "We are NOT going to give our house away!," we will have some significant work to do!

If you like to study the numbers - and I do - you will see an obvious (and predictable) phenomenon in our Flagler County, FL, Association of Realtors MLS (Multiple Listing Service). When the smoke clears away, what we really have is two distinct MLS databases. One is the part of the MLS where people have their head in the sand and are dreaming of 2005. Since we are near Orlando and Disney, we'll call this database Fantasy Land. This is where houses are priced 20% to 100% over the current market and will never sell. This is where you see numbers like "1,785 Days on the Market." Ouch!

The other area is where folks have hired experienced local agents and priced their homes to sell. They have studied the market and transitioned from confusion to clarity! This is what we call Reality Land. Houses will generally sell 2%-10% off list price and get closed within 3-6 months. These sellers know they will have to endure some hurt... may have some equity... and are highly motivated to cut their losses and go on to the next adventure.

In the first 2 months of 2011, cash transactions in Palm Coast and Flagler Beach, FL have outdone mortgaged deals an astonishing three to one! Guess what? These have not been on expensive, overpriced Fantasy Land homes. Distressed property (Short Sales and Bank Owned) sales continue to dominate the market. The leading housing indicator, the Case-Shiller Index (Standard and Poors): www.businessinsider.com/december-case-shiller-2011-2, shows 9 of the 15 shakiest markets to be in Florida through 2012. Also, Mr. Shiller, Yale Economist, says that we may see another 10-25% drop in price before it's all over!

Bottom line? If you want to sell, get your price down and take your medicine. Oh... and if you are a buyer... that's a good thing! Pssssst! Don't try to "time the market," as speculation has been the ruin of many in recent times.

Quick Real Estate Stats - January, 2011

2011-01-29T12:22:00.005-05:00


Call Frank Zedar for Accurate Real Estate Information	: 386-931-1987

Quick Stats: (Extracted from Flagler County Association of Realtors MLS)

Statistics (65 listings)
	Low	High	Average	Median	Total
List Price	$52,900	$2,299,000	$204,705	$149,000	$13,305,816
Selling Price	$42,000	$1,800,000	$182,235	$135,170	$11,845,290
Sold/List(%)	66.42%	106.32%	92.61%	93.43%	--
Price/SqFt ($)	$30.43	$294.21	$81.94	$68.10	--
Price/Acre ($)	$0.00	$3,159,905.66	$208,647.00	$0.00	--
Days on Market	29	928	207	148	--

I know that the first month's sales don't tell the whole story, but it is a useful snapshot. We sold 65 homes this month in Palm Coast and Flagler Beach (to include Bunnell, The Hammock, and the more rural areas of Flagler County), from $42,000 to $1,800,000. Granted, there was only one sale over $1M, and the next highest was at $530,000. It's taking about 5 months to get a sale at a Median price of $68/square foot.

SHORT SALES = 50 to 60% of the Market!

   Keep in mind that these stats are all over the map and can vary wildly, by neighborhood.   These sales represent only 5% of available homes, of which there are now 1,263. At this rate, that's 20 months of inventory. About 35% of this inventory (436 homes) are "distressed" listings (foreclosures, short sales, etc.), however 50% of this month's closings were distressed sales. THAT"S GOOD NEWS, because it indicates that the bottom of the market may be starting to clear out.

   Condos are another world. Lots of legal wrangling going on. It's harder to get a mortgage too, because if 15% are behind in condo/association fees, they are dropped from the eligibility list. There are loads of bargains... and Cash is King! As an example, I know of a condo in one of the magnificent Ginn projects that sold for $680,000 in 2007 and today is offered as a $180,000 short sale.

   Don't be fooled into thinking that if it's a "short sale" or bank property, you'll automatically get a better deal. That is surely not so. Everything depends on the seller's motivation... And Joe and Marry Seller may want to get sold and move back to New Jersey for family/personal reasons with greater need than a bank!

The Skinny on "Short Sales"

2011-01-13T16:04:00.001-05:00

What You Need To Know About “Short Sales”:

FACT: If you ever wanted to buy a house... and if you missed the boat (luckily) in the 2000-2005 market rush... NOW IS THE TIME! Yes, qualifying is tougher (thank God) than when they were giving money away, but if you have a decent job and credit, you can get a loan. And money is cheap now at 4.5%. Read this so you know more than the next guy, when folks start talking about "stealing a short sale."

Tax issue: A short sale is where the lender agrees to sale the distressed property for less than the borrower owes on the mortgage. Since the lender accepts the short sale net proceeds as full satisfaction of the mortgage, the borrower is “forgiven” the difference between what was owed on the mortgage and the net proceeds of the short sale. That difference will be considered income by the IRS and taxed accordingly, unless an exception applies.

Under the Mortgage Forgiveness Debt Relief Act (2007), taxpayers who were forgiven part of their mortgage on their primary residence can likely avoid tax liability by including Form 982 with their tax return. See IRS Form 982 instructions for full explanation of qualifying criteria.

Effect on Credit Rating: Contrary to popular belief, the effect of a short sale on the homeowner’s credit is virtually identical to that of a foreclosure—a dip of 200 to 300 points. There is a notable difference, however. The owner who goes through a short sale may qualify to purchase a subsequent home in less time than someone who goes through a foreclosure. The waiting period after a foreclosure is 24 - 72 months, whereas the wait after a short sale is about 24 months. Also, in the case of a short sale, there may be fewer months of non-payment on the mortgage, which will result in less damage to the homeowner’s credit score.

A “deed in lieu (of foreclosure)”… where the borrower merely signs the property back to the bank, brings a credit effect roughly “somewhere in between” a foreclosure and a short sale.

Deficiency Judgment/Future Liability: Where a home is sold for less than what is owed on the mortgage, there is the potential that the borrower will be liable for the deficient amount. In the case of virtually all Florida foreclosures, the lender is entitled to petition for a deficiency judgment if the sale of the home does not cover the balance due on the mortgage. Since foreclosure in Florida is a judicial process, the lender is already obligated to pay attorney fees and court costs. As a result, the lender may choose to request a deficiency judgment unless the discrepancy is relatively minimal.

In the case of a short sale, the matter is not nearly as clear: Whether the lender is entitled to a deficiency judgment may depend upon the terms negotiated with the borrower. In some cases, the lender will waive its right to a deficiency judgment in exchange for the borrower’s cooperation. If the lender does not waive this entitlement, whether it seeks a deficiency judgment or not will be a business decision based on the amount of the deficiency, costs of litigation, etc.

When attempting to purchase a short sale listed property, remember that you are not negotiating with the seller… you are merely a spectator to the seller’s negotiation with the mortgage holder. Not always the bad guy, the bank wants value, as they are owed a just debt.

Frank Zedar, Direct: 386-931-1987

Broker Associate, CDPE (Certified Distressed Property Expert)

ParkSide Realty Group, LLC, Flagler Beach & Palm Coast, Florida

Real Estate Success for 2011

2010-12-28T12:27:00.001-05:00

Since the last Quarter of 2005, our US Economy has been in a wrestling match with itself. The most effective hold has been the "Strangle Hold" being applied by the Real Estate Market. I feel foolish and humbled when I go back and read some of my predictions from 2007-2009, where I figured we must be coming out of this thing... and that recovery surely must be around the next corner. In retrospect, that was frustrated wishful thinking - not prudent, thoughtful analysis. I mean, who knew that we'd be into this thing five full years... and still be unsure where the light is at the end of the proverbial tunnel?

Here are some insights that I believe, as a Real Estate Professional, I must be in tune with, in order to continue to be successful in this "new reality" - and eventually break through as recovery comes:

Ordinary effort will not be rewarded. In a hot market, most everyone can stumble into a few sales. To be a great agent, "good" isn't good enough any longer. We have to commit to an extraordinary selling and/or buying experience for our customers. It's what gives birth to our lifeblood - Referrals from satisfied customers!

It's got to be "Mission Focus," not money focus. Some transactions in our "short sale" world might not ever close. The banks are making decisions with a calculator, not their hearts. We have to know what we can control and, more importantly, what we can't! We have to focus on getting up early and immersing ourselves in the process of doing the right things daily for our customers. We must maintain faith and confidence that this will work most of the time. If we focus on the mission, the money will come.
Effective Communication is critical. The "sales process" has changed forever. Twenty five years ago, my first office broker introduced me to real estate sales with this classic offering: "Here's your desk and here's your phone. Good luck, Frank, you're on your own!" Well, thank God for my twenty years of experience as a US Army Officer. I knew there was more to it than that! Today, I've got to be the master of information. I've got to know my market - cold! I've got to be able to provide a true learning experience for my customers and instill confidence, so that they can feel good when following my advice. If I say, "You are $50,000 over-priced," I've got to be able to back that bold statement up, don't you think? Web sites, blogs, email, texting, smart phone, facebook, twitter... are all just the tip of the iceberg to come. Providing customers and future customers with daily talking points keeps us engaged, until the need for action arises.
Re-read my post on this blog from 11/23/10, "Goal Setting for Realtors, Buyers and Sellers." What it boils down to is that to be effective over the long haul, you've got to be a goal setter, trend setter, and pace setter. Without goals and a plan and schedule to achieve them, we're all in a crowded shipping lane with no rudder.

(Inspiration for this post comes from a terrific trainer, Steve Harney, and his January 2011 Quick Tips)

Real Estate and the US Military

2010-12-17T17:24:00.000-05:00

Well, it's the end of 2010... a "real estate year" I'd like to forget (or at least replace) - You know, like how the professor would let you take a test and have it replace your lowest grade? I feel like I've been in the ring for 5 rounds (2006, '07, '08, '09, '10) with Mike Tyson in his prime. The good news is that I'm still standing... and he's getting tired from punching me:-)

We spent the day Wednesday on board the USS Gettysburg at Mayport Naval Station in Jacksonville. She is a 9,500"+" ton, nearly 600 feet long, 55 foot beam, 33 foot draw Guided Missile Cruiser. A real bruiser of a US warship, with a crew of over 30 officers and 330 sailors (men and women). As a 20 year US Army Veteran, it was great to get a backstage look at the Navy. Talking to the men and women on that ship reinforced the fact that we have good people protecting our interests. The ship's Captain, in his opening remarks, said it well. He referred to our military forces (as well as community law enforcement and fire/rescue personnel), as "those who run TO the emergencies of life, rather than AWAY from them." I liked that and it sums up a boat load of emotion.

It really got me thinking about that part of my life, blended with my second career as a Real Estate Broker. Here's the rub... Many civilians, over their careers, use the build up of home equity as a significant part of their retirement nest egg. Perhaps they bought a starter home when newly married for $100,000 and over the span of 30-40 years "moved away and moved up" maybe 4 times. Then, in their 60's, their current home is worth $600,000 - very plausible in many parts of the country. As a sales agent and broker in Fairfax, Virginia for 15 years, I helped a lot of corporate types, as well as FBI, CIA, Secret Service, etc. and a lot of Government senior executives. When they moved, as a necessity of their job, they got a "relocation benefit package." If the market was in a down cycle, Big Brother picked up the difference! They couldn't lose!

Not so for the military men and women at the Pentagon, Bolling Air Force Base, Fort Belvoir Army Base, Quantico Marine Base, or Norfolk Naval Base. Nope, if they took a chance and bought a home... and got transfer orders in a down market, they basically had two choices: 1. Sell at a loss, or 2. Turn it into a rental property and not be able to buy a home at the new duty station. I know I had myopic vision on this, yet I always wondered why those in harm's way got a lesser deal than those in the less harsh realities?

Anyway, we won't solve that here. And as we cut costs to reduce the national debt, I doubt we ever will. It's Christmas now and our forces are deployed in many places, where hateful, radical elements wish them harm. Thank God for their sacrifice and dedication. I wish for peace like the next guy, but the reality of human nature says it will never happen. It is their selfless duty which makes this a great place to live. In most of the world, home ownership is not possible...

"Flagler County, FL Waterfront Homes - 2010 Recap"

2010-12-02T17:30:00.001-05:00

I know it's only December, but here is a recap of waterfront home sales for the first 11 months and 2 days in Flagler County, FL for 2010. Areas include the Palm Coast, FL zip code 32137 and Flagler Beach, FL zip code 32136. "Waterfront" is defined as "On a Saltwater Canal, the Intracoastal Waterway (ICW), or the Atlantic Ocean." This does not include fresh water canals, golf course ponds, ocean views, marshes, etc. These homes were "on the water."

For all of this year, there were only 109 such sales. In the heyday of 2001-2005, it would not have been a stretch for this number to have sold in just one month!

Here is a statistical summary of these sales:

Sales Prices:

High = $1,000,000 (on the ocean)
Low = $150,000 (on a canal)
Average = $320,000
Mean = $280,000

Average price/square foot = $148

Average Days on the Market = 198

Type of sale:

Total sales = 109
"Normal" = 73 = 67%
Foreclosures = 11 = 10%
Short Sales = 25 = 23%

Number of sales, by month:

Jan = 3
Feb = 4
Mar = 5
Apr = 10
May = 10
Jun = 14
Jul = 13
Aug = 10
Sep = 13
Oct = 16
Nov = 10
Dec = none yet... (Hey, it's only the 2nd!)

All I can say is "Holy Cow, Mama!" A $280K Median... and $320K Average price for a Florida waterfront home?!? If you were here in 2000-2005, you are scratching your head now. At the 2005/early '06 peak, canal LOTs were in the $300Ks! ICW LOTs were $495K-$750K! And Oceanfront LOTs were over $1,000,000! If you want waterfront... GET IT NOW... or be telling your grand kids about how you should have... back when it was cheap!

"Pent Up Housing Demand"

2010-11-29T15:21:00.001-05:00

"Thou shalt not covet... Thou shalt not covet... Thou shalt not covet." There, I feel a little bit better now... but not a lot. "What's my problem," you ask? Well, it seems that the real estate market is showing signs of recovery in the Northern Virginia - Metro Washington, DC area. You know - the market I moved from - to come back to Florida in 2001.

All my buddies in my old Remax and Century 21 offices are struttin' a little bit recently. "The market is brisk again," they say. To be fair, it's not "1995-2005 brisk" to be sure, but brisk, nonetheless. I'm pretty wired up... you know - Facebook, Twitter and an endless stream of websites and blogs, etc. "Three closings this week!" they say. "Thirty buyers through my open house!" they boast. "Our office phones are ringing off the hook and we got two walk-in buyers yesterday!" etc., etc. It's enough to make a grown man cry (especially if said grown man is a Real Estate Broker / Sales Agent... in Florida). However (and it's a BIG however), our time is coming!

Florida, you see, is a "destination State." People really want to come here to Palm Coast and Flagler Beach. We are surrounded by the Beaches of the Atlantic Ocean and the Gulf of Mexico, drenched in Sunshine, and blessed with year around Warmth. You can ride your motorcycle or bike, go fishing, surfing, hiking, walking on the beach, or play golf - in February! And the machine is oiled by the guy "up North" being able to sell his house first, so he can move here.
Simple math: "No sales in NJ/PA/MI = No sales in FL"

Please don't interpret this as me saying, "The recession is over," because it's not. We have a lot of messes to clean up first and we have to put a lot of people in Florida, California, Arizona, Nevada, and Michigan, etc. back to work. Banks have huge "shadow inventories" of foreclosures and short sales to push through the system. We've got to look in the mirror and promise ourselves that we won't be defeated any longer... and that's not "foo foo" talk. Recovery really does start with attitude shifts!

And as the tide starts to turn, hang on to your hat, because we too will then get our share of "brisk" sales, in response to pent up demand. What Does "Pent Up Demand" Mean?

When the demand for a service or product is unusually strong. Pent up demand is used by economists to describe the general public's strong return to consumerism following a period of decreased spending.

Pent up demand is often seen immediately following a recession or depression, where consumers have built their savings or held off on purchases, due to the prevailing uncertain economic climate. Quite often, pent up demand accelerates the economic recovery period immediately following an economic downturn, thanks to a sudden increase in consumer confidence and spending. If you live in Florida, especially Palm Coast or Flagler Beach, make sure you cover all the bases, by crossing your fingers and saying your prayers!

"Goal Setting for Realtors, Buyers, and Sellers"

2010-11-23T16:41:00.002-05:00

My wife and step daughter and I went to a church service Wednesday night. The pastor there is a gifted speaker and always brings biblical truth into modern day relevance. But make no mistake about it - I'm no preacher. So I'll skip the religious and spiritual lessons, epitomized by Paul's words in the gospel, whereby he states that he is "Pressing on toward the GOAL..." and "Forgetting those things which are behind and reaching forward to those things which are ahead!"

Now that was written over 2000 years ago... and it sounds like Paul of the gospels graduated from the Dale Carnegie course! As a Real Estate professional, the past few years have been rough... really rough. And yet the lessons learned from a thousand classes - both as a student and as an instructor - stay in front of my eyes. It's stuff like this that keeps me going and "spitting in the eye of this recession." Not just "surviving," but in the pursuit of "thriving!"

Here is a summary of the life lessons the pastor taught last week:

Winners are Goal Setters!
Without goals, our efforts lack a sense of purpose and urgency!
Goals are the objects of our ambition!
If we keep making progress and chipping away at our goals, we get to say, "I may not be where I ought to be, but I'm sure as heck not where I used to be!"
If you can get the goal on your own, it's likely too easy! Most big, bad, bodacious goals require teamwork and synergy!
Goal setters study worthy role models and emulate them!
Accomplishing a goal requires hard work and focus... if you try to focus on everything, you end up focusing on nothing!
Look forward to the goal... Don't dwell on the past... Learn from it and move on!
Goal accomplishment requires excitement! And you can't be excited with slumped shoulders and pessimistic self talk!
The prize tastes better, when there is pressure to be overcome!
Goal accomplishment requires that we set priorities and schedule our time accordingly!
It helps to write them down and review them often... to see what progress is being made! As sometimes changes are needed. Be flexible!
Goals require a leap of faith. Without this element of risk, it's not much of a goal! (Now, to be fair to the source, the pastor would surely say that faith provides assurance - not risk)
To be a worthy goal, it must be congruent with your moral and ethical standards!
Winners are goal setters, trend setters, and pace setters!
Winners create their future, before it creates them!

Fellow Realtors, this recession will be over when we decide it's over. We have to walk that line, where we understand the challenges of this market, yet we don't allow the negative aspects to dominate our actions!
Sellers, if you really want to sell, you absolutely must get your head out of the sand. Today's market is a Price War and Beauty Contest. Spruce your place up before you list it with me... and let me help you price it to sell... not be in the overpriced 70% that never sell! Get in front of the market, so you don't end up chasing the market down from behind!
Buyers, be specific with your price ceiling, wants, needs, location, etc. If you tell me "Let's see 100 homes and we'll know it when we see it," I'm no good to you. If you don't know the differences among short sales, foreclosures, REOs, etc., Ask! It could take 6-8 months to close a short sale (or get a counter offer... or a flat out "no"), so if you don't have the stomach or patience for it, don't do it. By the way, there are plenty of "normal" sales from motivated sellers, from which to choose! Palm Coast, FL and Flagler Beach, FL are "For Sale" and it's a great time to buy!

"Flagler Beach, FL - Clandestine Paradise!"

2010-11-18T16:35:00.002-05:00

Flagler Beach, Florida, is a Clandestine Paradise! Drive up and down the Atlantic Ocean Coastline and you will know what I mean. St. Augustine is nice, but prices in the beach towns are "ouch!" Go south to Daytona Beach and it's nice too... but mingled with the sights and sounds of wild and wooly biker events twice a year, various Spring Break themes, and Speedway events, etc., it can be a bit "honky tonk" for some tastes. Mind you, however, that some go there specifically for that buzz... For me, I like being near it, yet not in it... I'm just sayin.'

Go farther north and it starts to get "Georgia chilly" and farther south gets "tropical hot & humid," as well as very crowded. Most of the US East Coast shoreline is "stupid developed" with monster condos and hotels blocking views and public access to the ocean. Not so in Flagler Beach! It's a throwback to Old Florida and it's a slower, more sane pace of life. There's plenty to do, with clubs and activities galore... just not in your face. Flagler Beach's proximity to the "city" of Palm Coast and the venues of Flagler County are a big plus, also. Plenty of shopping nearby, yet when you cross over the Intracoastal Waterway bridge and see the little town of Flagler Beach and the sun glistening off the ocean water... you just know it's a special place!

The beaches are clean and not crowded. Even on 4th of July weekend, you can find a spot to park along the beach road (A1A) and go plant your feet in the sand. And talk about "Old Florida," people come to the beach from miles around on Friday and Saturday mornings for the bountiful Farmer's Market. At the market, you have the opportunity to step back in time to simpler days when vendors come from farms and cottage kitchens to sell their wares. The Farmer's Market has become a Flagler Beach institution as folks shop for fresh locally grown produce and homemade delicacies, plus handmade goods such as pottery, baskets and jewelry.

And right now, in November of 2010, Flagler Beach is "FOR SALE."

Prices are crazy low and are down by AT LEAST 50% from what they were in 2005. You can buy a HOUSE... ON or NEAR the OCEAN for what a LOT cost in 2005! Here's a little breakdown:

Detached Houses: There are 113 for sale, between $72K and $998K. 6 sell a month (in an average of 192 days). That's a 20 month supply!
Condos & Townhouses: There are 63 for sale, between $67K and $495K. 2.5 sell per month (in an average time of 250 days). That's a 26 month supply!
Building Lots: There are 108 for sale, between $20K and $949K. 1 sells per month! That's a 108 month supply!

Here's the rub... There are really two MLS's!!! There is the part that is in fantasy land - deep in denial - priced way too high for the market. And there is the part that knows what's going on and wants to sell! Evidence is that 70% of listings never sell. Hint: Priced too high!

Soooo.... Call an experienced LOCAL Realtor (like me) and let me help you figure this out. If you are a Seller, I can help you price it right (provided you are motivated). If you are a Buyer, I can help you sort through the mess an find the motivated Sellers!

"David Letterman Likes Palm Coast, Florida!"

2010-11-03T12:57:00.001-04:00

This is good stuff!

12 years ago, I'd never heard of Palm Coast, Florida, even though I'd lived in Tampa and visited family and friends all over the state for years. Then I came to a wedding in Saint Augustine and stayed at The Topaz in this cool little beach town, called Flagler Beach!

Two years later, I moved to Palm Coast... and I'm still here! Making my living as a Real Estate Broker was amazing, as we (Flagler County) became the "Fastetst Growing County in the US" for a couple of rocket ride years! Things have certainly slowed down, yet it remains a cool place to live.

Click this link below and it will take you to the Palm Coast city website. Under "Announcements," you'll see "David Letterman Likes Palm Coast." Watch the short imbedded video all the way to the end. If you are a Palm Coast, Florida fan - you will love this!
http://www.ci.palm-coast.fl.us/Default.aspx?ArticleID=1014

"Moving is Hard in Post-Retirement Years"

2010-11-01T17:38:00.055-04:00

If you are in your "post-retirement" years... or your parents are, please read and internalize this post. Understanding this may save you untold discomfort in the years to come.

I am a real estate broker in America's primary retirement mecca - Florida! And believe me, I get all the jokes about blue haired drivers, early bird specials, and viagra at the seniors center, etc. Ha ha ha ha ha ha! Those old people sure are funny! And to be sure there is humor there. In addition, however, there is also cultural confusion. This is not an unusual or atypical scenario:

Mom and Pop work all their lives in New Jersey or Ohio or Michigan or some other place on the frozen tundra and dream of coming to Florida. Ahhhhh, Florida... where the kids and the grand kids can come and visit all the time! We'll swim and bike and hike and walk on the beach and life will be grand!
The first year or two the kids come and visit. But then two or three years has gone by and no kids! Where are they? Don't they love us any more? Well, they are busy living THEIR lives... in their peak earning years... kids in school and sports... wanting to take vacations to some place other than Disney World and Gramma and Grampa's house... again.
Then hips and knees get replaced and arthritis kicks in. Triple by-passes and menopausal issues and prostate problems happen. Taking care of the house is no longer easy. The grass needs mowing and cleaning the pool is a chore no longer considered fun.
Mom and Pop miss the kids more than ever and want to be nearer to them. Physical abilities diminish and memory fails more often than it used to. Mom and Pop are becoming less capable... and they are feeling more and more alone as the years drift by.
Cell phones and computers and email and texting... Facebook and Skype, etc., should make it easier, but they become daunting tasks.
Then, God forbid, Pop passes away and Mom is left alone, 2,000 miles away from the family.

Having just been through the sale of a home, as the "listing agent." here in Palm Coast, FL, for an 85 year old couple, has really brought this into focus for me. It caught up to them in spades. Going back to Michigan to an assisted living facility was a massive undertaking. At 85 and quite frail, they could do almost nothing for themselves. Going through 20 years worth of "stuff" proved overwhelming. Only with the help of an also aging brother, a kind and caring neighbor, the arrival of a son a day before closing - and the grace of God - did we make it... (They called me today to tell me they made it to Michigan... and to say "Thank you" for helping them get there!)

If these things resonate with you, address some issues - now, rather than later:

Talk about it. Talk about the above scenario, as a family, and get people's input.
Make sure you have both living and familial wills.
Discuss health and death and burial issues.
Get properties in Trust.

Hire an attorney for this and get the best legal advice possible.
Florida living trusts are all about taking smart and legal planning steps to minimize complexity, cost and grief following death... and peace of mind in the present! Remarkably, thousands of people fail to prepare their estate for legal transfer. Age, ill health or an accident leaves them incapable, incompetent or worse! Result? Their entire estate, along with the unraveling of taxes, creditor obligations and more "defers" to the probate court.
Think of your living trust as a documentary form of "You" ... what you've worked for your entire life, the assets you've created, and your preferences for inheritance are entirely captured by your Florida living trust. You "fund" the trust with your financial and real property assets. You can amend it or determine the trust's day-to-day business ... it's revocable ... up until the time of your death. Thereafter, no change is permitted. Your Florida living trust reverts to an "irrevocable trust", managed by your successor trustee under strict rules until all assets have been legally transferred, taxes paid, and creditors paid.
If you're looking for privacy, and potentially significant cost and time savings to your heirs, without the imposition of court-ordered probate, then examine further the Florida living trust.

(from EZine article on this topic, by Robin J. Derry)

Categorize and organize all the insurance, financial, and other "important papers."
Make sure both spouses have access to and understand all bank accounts, IRA's, investments, property deeds, payment books, bill paying info, passwords, PIN numbers, etc.
Start methodically purging "stuff" from the attic, garage, closets, etc. If it's not needed, sell it or give it it away. Lighten the load!
Talk about retirement homes, assisted living, and "going with the kids" issues.
Establish a relationship with an experienced local real estate broker (Here's where I volunteer), so when the time comes, you're not scrambling to find a good one. Talk to them about their experience and understanding of the nuances required to work with you or your parents. Believe me when I say that we often become like members of the family during these times.
And finally, decide if Florida is your final place of residence. (Like I've been told many times before, "This is where I'm staying until they plant me in the ground!")...
If it is not, then make arrangements for that final move, while you are still young enough to do it - and also to enjoy it!

"Upper End Real Estate in Palm Coast, Florida"

2010-10-26T16:23:00.002-04:00

50-50 Chance... Right?

80% Comes From Only 20%... Really?

When I was a kid, I had no concept of what "Upper End" might mean, other than we'd drive through the "rich people's neighborhoods" to be enthralled by their Christmas lights each year. I mean I truly didn't understand that granite and marble and Italian tile and 30' ceilings and Viking stoves and Swedish dishwashers and walk-in refrigerators and temperature controlled wine rooms were required to get you there. But 15 years of selling real estate in Great Falls and McLean, Virginia - home to Senators, Congressmen, Pro Sports Figures, and Corporate CEOs, opened my eyes.

Then I came to Palm Coast, FL and Flagler County in 2000. I brought the "Fastest Growing County in the USA" thing with me, as Fairfax and Loudon, Virginia had owned it for a while. Prices started rising and places like Hammock Dunes, Ocean Hammock, and Hammock Beach soared into the $$Millions. Palm Coast's salt water canals and gated communities like Grand Haven took off too. A modest Maronda home for $70,000 in 2000, became $225,000 by the end of 2005. It amazed me that there were no homes under $200,000 for sale in our MLS system! Had our rate of appreciation continued through to the present time, our median price would have gone over $1,000,000. I know it's bad right now, but thank God the inevitable happened when it did. Had we gone even higher, the fall would have been even worse!

So what constitutes the "upper end?" It's quite arbitrary, really. When I bought my first home new from a builder in Tampa, FL for $25,000 in 1971, the upper end was rumored to be $100K. When I left the Pentagon and my 20 year Army career for real estate in Virginia in 1986, the upper end was $300K. by the time I left there in 2000, it was $1,000,000. In Southern California and the Silicon Valley, $1,000,000 got you a quaint starter home!

For my purposes, I call upon the "80-20 Rule" (that's the Pareto Principle for you math junkies). Loosely interpreted (from my MBA days at Georgia Tech) it implies that "80% of effects come from 20% of the causes." This theory came from observations that 80% of the wealth was enjoyed by 20% of the people. So I've always theorized that upper end property is the top 20% (loosely) in a given market. Interestingly, this applies to an amazing array of circumstances. For example, I've managed 5 different real estate offices in my career and, invariably, 80% of the sales are done by 20% of the agents. On most sports teams, 80% of the "impact" or "points" or "tackles," comes from the top 20% on the team.

In Palm Coast and Flagler Beach, FL... and all of Flagler County, FL, we'll say the upper end in the 4th quarter of 2010, starts at $500,000. Of the 1,340 detached homes (not condos or land) for sale today, 187 are priced at or above $500K.

The numbers tell a real story about our market:

Over the past six months, about 15% of the listings for sale are over $500K, but only 2% of the actual closed sales.
In the "normal" range, 3% of homes listed for sale are bank foreclosures and 32% are attempted short sales.
In the "upper end," only 1% are bank listings and only 6% are short sale attempts.
Of the 699 homes sold in the past six months, only 14 are upper end (2% of the total market)... It's such a small %, that it's impossible to make inferences... except that it's not a great time to be for sale at the upper end!
Also, two startling facts, not tied to price:

Over 70% of homes listed never sell (because they are priced too high!)
Of those that do sell, nearly 60% are distressed sales.

What does this all mean?

It's an amazing buyer's market.
Homes are selling, but shoppers are seeking bargains.
The upper end is clogging the funnel, as sellers in this range are more reluctant to face the irrefutable reality of The Law of Supply and Demand... (even though better educated, on average, and probably sat through Economics classes in college)
Since 70% of listings don't sell... to be successful...

It's a Price War
and a Beauty Contest

When choosing a Real Estate Agent, do your homework.

a CLHMS is certified to help you in the upper brackets.
a CDPE is equipped to help you with foreclosures and short sales.

Call me with your questions. My CLHMS and CDPE expertise, coupled with my Harvard certification as a Real Estate Negotiator... and my 25 years of Real Estate Sales experience... could be the formula to help you achieve success!
Frank Zedar
Parkside Realty Group, LLC
386-931-1987
frankzedar@gmail.com

House Hunting - 2010 Style

2010-10-19T14:46:00.000-04:00

Saturday morning - Starbuck's Italian Roast - and the Daytona Beach News-Journal... My eyes catch "Shopping for homes when there's too much to buy!" The author, Ilyce Glink, says there are "Eight things" you can do, as a buyer, to be successful in this market:

Create a wish list.
Create a reality check.
Get pre-approved for your mortgage.
Pick a neighborhood.
Pick a Real Estate Agent (...Like Me!)
Search the Internet to do elimination.
Do "drive-bys" to eliminate more.
Look only "at or below" your qualified price.

Now, I'll add a little to her take on things... I'd combine #1 & #2. Just make one list. You'll know if your list is close to realistic or not. If you can go to $200K here in Palm Coast, FL and you want a pool, we can make that happen. And to think in 2005 there were NO HOUSES OF ANY KIND HERE UNDER $200,000!!! But if you say you want "Direct Oceanfront, 5 bedrooms, pool, granite counters, etc." for under $200K, then you'd be joking, right? Right?

On #3, I'd get more than "pre-approved." I'd get "approved" for a mortgage. Actually make your application and start the process. Then, when I find you your new home, we just need an appraisal.

#4 - Agree. Pick where you want to be. If you want to be in Flagler Beach, then Palm Coast or Bunnell won't do. If you want a salt water canal with Intracoastal access, then that's where we focus.

Let's combine #5, #6, #7. The right agent will make all the difference in the world. Massive experience can really help if things get dicey. Also, you won't get silly statements to try to "sell" you a particular house. In 25 years of doing this, I know that you'll put it on your "no way, Jose" or your "possible" list within 2 minutes. We won't waste time on houses you wouldn't buy. The internet is not a threat to a good agent, it's an efficient tool. And drive-bys are a great way to save boatloads of time. A $99 GPS can save us three days of mind-numbing elimination.

I disagree with her on #8. This quarter, 70% of our listings in Palm Coast, FL don't sell... because they are overpriced. Maybe it's worth making an offer at the right price. Plus, it's just a ridiculous buyer's market and there are bargains to be had. If you qualify for $350,000, I'll ask you if you'd like to see up to $375K (maybe even $400K) if I can prove a price point of $350,000 or less. But you are in charge of that decision.

Choices! Choices! Choices!

Let's meet and talk about what you want! I'll help you get it!

"Real Estate Update - Palm Coast, FL"

2010-10-13T17:07:00.001-04:00

Every Class We Take... Now
Starts With "Short Sale."

I do my best to update you on the main issues affecting real estate here in Flagler County, Florida. This is a "snapshot" of the past 30 days in Palm Coast and Flagler Beach, Florida. Included are zip codes 32164, 32137, and 32136. The numbers this time are pretty much the same as they have been for the past few months. We seem to be in a rut. When we get to the end of 2010 - only 78 days from now - I'll do some trend analysis. I'd like to be able to show how we're coming out of the woods, but know that is wishful thinking at this time.

So here we go: (These numbers are for "Single Family Homes." They do NOT include input for condos or land/lots or commercial transactions)

There are currently 1153 homes "For Sale" in Palm Coast.
They are priced between $45,000 and $2,600,000.
They have been on the market between 1 and an astonishing 1872 days!
40% of the listed homes have been for sale for over 6 months... up to over 5 years!
Hint: We have a serious mis-understanding of The Law of Supply & Demand. My partner (in real estate and in life) Maritssa, ran some stats the other day and found that over 70% of homes listed... never sell! The stark reality is that they are over-priced. For every location and/or condition, there is a price, at which every property will sell. In a market like ours, facing that price can often be a challenge. To "Git er done" today, you need a Price Motivation Level of at least an "8" (on a scale of 1-10).
34% of listings (391 homes) are short sales attempts.
Only 3.7% of our listings (43 homes) are bank owned foreclosures.
Hint: We are caught up in the world of pre-foreclosures... or foreclosure avoidance. But the foreclosures are coming, with over 300,000 notices issued per month for over 18 months in a row!
We have SOLD 111 homes, or 9.6% of available inventory. 9.6% is known as the absorption rate. The implication is that if no new inventory came on the market, we could sell everything in about 10 months. It's a fallacy, however, because 70% of our listings are over-priced and won't sell in the foreseeable future.
These homes sold between $55,000 and $840,000.
67 of these sales were "distressed" sales - short sale or bank owned - almost all short sales. That's an amazing 60% of all closings being distressed!
Flagler Beach is more of the same.

116 homes for sale at this time.
5 sold in the past month.
With a lack of "comparables," appraisers at the beach have to get creative.

Five Year "Down Cycle?"
Come' on, Man!

These "Distressed Sales"
Are Now 60% of our Market!

Hey, Bank of America! Come'on, Man!

2010-10-11T19:55:00.002-04:00

I know it's easy to blame the banks. I mean they're big and rich and cocky and "above the law" and they foreclose on Grandma, etc. But, COME ON, MAN! Right when we might have been making some headway with clearing out the bottom! For the past 60 days here in Palm Coast, Florida, our real estate closings comprised 58% "short sales" and foreclosures, while only 41% of our new inventory was distressed.

Nationally, banks have been issuing over 300,000 foreclosure notices per month for the past 18 months! That's 5,400,000 Grandmas in the street! As swiftly as the banks gave loans for $500,000 houses to families with household income of $35,000... Shhhhhh, you don't have to tell us what you really make... because this is a "No Doc" loan!... They bang the gavel to take it back! What a country!

Now we have a Bank of America (and others) moratorium on foreclosures! They make it seem like an effort at compassion. Hey, America, we CARE! But what it really is... is a way to avoid law suits. Why? Because the bank's paperwork and admin is shoddy beyond shoddy. It seems that some banks are taking houses... and they don't even hold the mortgage note - They can't find it!

A spin-off economic tragedy is that real banks can't make real loans on property, without said property for collateral. Now we have a precedent that shows the system to be in jeopardy. This could hurt commercial development and job creation - at a time when we need it most! When banks don't lend $$, the fair market system grinds to a halt...

This is a story that is unfolding, as we speak. The coming drama should be Bankalicious!

"Real Estate Investment in 2010"

2010-10-01T16:46:00.004-04:00

You, too, can be just like
"The Donald!"

Are you a Real Estate Investor?
Would you like to be?

It used to be that anyone and everyone who bought property of any kind, fancied themselves as an "investor." We were all so smart! So you bought it from the builder for $180K and put it in the MLS for $240K as a "new build." Simultaneous closings and pocket the difference! Usually, "no effort in" is a "too good to be true" scenario. It's just too risky! And that's how that story ended in 2006, when the real estate bubble burst. So many "investors" got caught with their hand in the cookie jar!

So here we are in the 4th Quarter of 2010... precisely 5 full years since we first noticed that "something was awry." We've watched the market tumble here in Palm Coast and Flagler Beach, Florida to de-valuation of 50% or more. Short sales and foreclosures comprise nearly 60% of our closings... Inventory is large and prices are low... Mortgage rates are extremely low. An investor can find under 5% with 25% down.

In other words, It's a great time to invest. If you have some cash and decent credit and are in it for a "hold," not a "flip," then your timing is good.

Here are some of the issues to consider:

Use your head and a calculator, not your heart or your gut. It's not like buying your personal home. Heck, you don't even have to "like" it for it to be a good investment. It's all about your ROI (return on investment) - Challenge your Realtor to demonstrate this to you. (Note: Land is a different beast. Generally it generates no income, yet it does have associated costs of taxes, and maybe even upkeep and HOA fees, etc. With land, it's "buying it cheap and estimating a hold period before a selloff.")

"Timing" the market can be elusive:-)

Avoid overleveraging. Debt can be a good thing, however you don't want to get caught making monthly payments "on your investment." You want to "get payments from your investment!" Accurate input into your Debt Service Coverage Ratio (DSCR) is important (garbage in=garbage out).
- In general, it is calculated by:
- DSCR = (Annual Net Income + other miscellaneous expenses) / (Principal Repayment + Interest payments).
- In a nutshell, DSCR helps to determine if an investment will cost you money or make you money!

Real estate investing is not a get rich quick concept (like the TV ads suggest). We were smart from 1986-1989, but dumb from 1990-1993. Smart from 2001-2005, now maybe dumb from 2005-2010. That is yet TBD! It's about your holding period and commitment. Even factoring in the current mess, real estate has beaten the S&P 500 over the past 30 years. It's a marathon, not a 100 meter dash.
Get good advice from professionals. Not only your Realtor, but also an Attorney and a CPA would be great sources of legal and financial information. Staying on the right side of the Law and the IRS are good things!
Have an investment goal. Just buying a rental house because it was cheap is not a plan. Market shifts, vacancies, tenant damages, chinch bugs/termites, hurricanes, etc., can have a huge impact, as well as expected cash flows and your desired benefit. Your Capitalization rate is calculated as:
- Capitalization Rate = Annual Net Operating Income/Cost or Current Value

Calculating your Return on Investment will tell you if you are on track with your stated goal:

ROI = (Gain from Investment - Cost of Investment) / Cost of Investment.

(Note: Residential investing is not in the same ballpark as commercial investing... different rules and risks, etc. if you want consultation regarding commercial issues, Margaret Sheehan-Jones in our office is a CCIM candidate and head of our commercial department... I can put you together.)

Know your level of tolerance for risk!

"QR Codes - Smartphone Nirvana"

2010-09-29T14:42:00.001-04:00

“QR Codes”

QR Code for www.PalmCoastUnplugged.com

Have You Seen One of These?

This is a “Quick Response” (QR) code. You’re going to be seeing more of these on this Blog, our Facebook Fan Page (Parkside Realty Group, LLC, in Palm Coast and Flagler Beach, FL), Business cards, and our other printed and media marketing materials. You will find they are also now being used in magazines, newspapers and even billboards. In Japan (where they started), they appear on T-shirts and untold other applications… To the tune of over 50,000,000 hits/year - and growing! Quickly!

So what does a “QR code” do?

It’s a cousin of the classic bar code you see on consumer goods when you shop. But this code contains a URL (website link). Basically, it’s a hyperlink on paper – one that your “smart phone” can read & launch. What this means to you is that our Blog and coming website MLS Home Listings will be easier than ever to access on your smart phone! For example, if we run a print ad - say in Homes & Land - we can include our targeted QR Code so those with smart phones can do a quick scan and obtain detailed information on the home you have listed with us in Palm Coast or Flagler Beach, Florida!

How do I read a QR code?

You’ll need an “app” for your smart phone to read these little nuggets. Just do a search for “QR readers.” Many are free. Here are a few suggested searches to get you started:

• iPhone QR reader app search
• BlackBerry QR reader app search
• Droid QR reader app search
• iTunes
• BlackBerry App World
• Android Market

Once you install the app, launch it to take a picture of the QR code with your smart phone camera. The app goes to work and reads that image to translate it into a URL. Your smart phone’s browser launches, and the information you want is now on your screen!

3 Reasons You Will Fall in Love with QR Codes:

1. Easily get the information you want. QR codes are designed to take you instantly to the information you need. All it takes is a tap or two on your smart phone. No fumbling with a small keyboard typing in a web address.

2. Surf more... faster. QR codes simplify your smart phone browsing experience so you can instantly get the information you want, and get on with your day.

3. You’ll be one of the “cool” kids. Let’s face it – it’s fun to be on the cutting edge of technology. You’ve got a smart phone…why not use it to simplify your life and have some fun? Who knows, you might even show your high school student something

Have a QR Code Question Not Answered Here?

QR Code for: Facebook Fan Page
for Parkside Realty Group, LLC

For a much more in-depth explanation of QR codes that will satisfy your inner-Geek, just go to: http://www.en.wikipedia.org/wiki/QR_codes. Or, you can ask me and we’ll be happy to answer them for you (or find the answer). For your homework, download your new QR Code app to your smartphone and click this code. It should take you straight to our office Facebook Fan Page! Stay tuned! Much more to come, as I’m just getting started! Take care! (Frank Zedar, Parkside Realty Group, LLC, Cell: 386-931-1987)

(Thanks in order to Michael Russer (aka: Mr. Freakin' Internet) and his Online Dominance webinar on this
subject)

"EXPIRED" Real Estate Listing?

2010-09-28T14:55:00.002-04:00

Don't Be Sad - We Can Help!

If your Real Estate Listing on the MLS has "EXPIRED" from the market, you are probably ready to pull your hair out!

What the heck is going on? Why would my house in a great town in Florida - near the beach - not sell after a full year on the market?

Most real estate agents are a bit wary of contacting recently EXPIRED homeowners. Why? I mean you've done half of our work for us by standing out in a crowd and shouting:

"I WANT TO SELL MY HOUSE! PLEASE HELP ME!"

I think that most of us suffer a bit from remembering better markets - when houses sold quickly for the asking price (or more)... And no matter what you bought or sold - it was a "smart business decision." We were drunk with success. We here in Palm Coast and Flagler Beach, Florida were in "The Fastest Growing County in the USA" from 2003-2005! Our values were skyrocketing and, if unchecked, our median price would have topped $1,000,000 by 2012! And then the house of cards in the US housing market came crashing down. We are working hard to correct things, but it was a huge bubble that burst! We have some serious orienteering to do before we are out of these woods!


Down? Yes! Dead? No!

... So most Realtors don't call you because they sense you are "angry with the real estate process" and probably not liking real estate agents very much right now! It's a Mindset Thing... If an agent - at their core - doesn't believe that you need them or want them, then you probably don't!

If you are now EXPIRED - and you'd rather be SOLD:

Interview and hire a highly motivated, well trained, experienced, aggressive real estate agent.
One who can take charge, who understands the business and who will tell you the truth about the market (not just what they think you want to hear)
Someone who knows how to take an ordinary thing and do it in an extraordinary way...
One who can deliver the "real estate holy grail," when you ask:

Can I trust you? (with the keys to my house and input to critical financial decisions)
Do you actually care about my personal outcome? Do you operate with empathy and compassion and Golden Rule behavior?
Are you competent... Can you get the job done?

Call me today... 30 minutes at your kitchen table could make all the difference!

Frank Zedar

Parkside Realty Group, LLC

Cell: 386-931-1987


There is Still Time...

"For Sale By Owner" Outreach...

2010-09-27T16:36:00.000-04:00

Realtor Drive By Shooting!

Sounds Like a Country Song!

If you are brave enough to be attempting to sell your home on your own...
in the roughest, toughest real estate market since the end of WWII...
you probably did it before and tasted success.

What I would give right now for a taste of the wild rides of 1985-1990... or 2000-2006! Heck, I'd settle for the balanced and calm years of 1993-1999. But this? Who saw this coming? (Oh, right - all the politicians with 20-20 hindsight). I mean come on, man! We here in Palm Coast and Flagler Beach enjoyed being "The Fastest Growing County in the USA" for most of 2003, 2004, and 2005!

Age Has Its Privileges!

FACT: If we had continued that rate of escalation in value (about 25% per year), our median priced home would have jumped from about $230K to over $1,000,000 by 2012! And that for a standard 2,000 sq.ft., 3/2/2 on a normal lot. That great ocean front home in The Hammock or on Flagler Beach, which was $2,000,000 in 2005 would have teetered near a staggering $10,000,000. We would have been a mirror image of Southern California, except with no jobs of that caliber. Absolutely unsustainable! It's almost good news that it happened when it did... because it could have become far worse.

Most real estate agents are a bit wary of "FSBO's." You know why? I'm guessing that you are seen as being "too savvy" or perhaps "too unmotivated." Also probably "anti-real estate agent" and, of course, "anti-commission." It's a mindset thing. If an agent, at their core, doesn't believe you need them, then you probably don't!

If You Are In Trouble,
Don't Let Foreclosure Happen!
I Can Help.

My belief is this:

Truly motivated sellers want a highly motivated, aggressive, experienced, well trained, real estate expert to help in these challenging times. One who can take charge of the situation, who understands the business, and who will tell them the truth about the market... not just what you want to hear!
They want someone who can take an ordinary thing and do it in an extraordinary way.
They want the real estate holy grail:

Can my agent be trusted (with the keys to my house and input to my financial decisions)
Does my agent really care about my personal outcome? Are they empathetic and compassionate and ethically centered?
And finally... Are they competent... Can they get the job done?

Don't Let This Happen To You.
The Market "is what it is."
Make the Most of It!

I believe that a "For Sale By Owner" sign is a call to action... a request to "Apply Within!"

"Code of Ethics for Realtors"

2010-09-24T14:41:00.002-04:00

Ethics: A Standard Higher Than The Law

"Ethics"...

Talk about a hot topic! What does it mean? And by whose definition? And by what moral code?

Politicians Sure Take a Hit!

Personally, I see evidence that we are in a "crisis of ethics" (or, rather, lack thereof). We are, as a nation, in a moral drift away from what made us great. But hey, just because our prison population has increased from 250,000 to over 2,300,000 in a little over 20 years? Yes, I know there's a lot more to it!

I get to teach this topic to the Flagler County, Florida, Association of Realtors. It's humbling, to say the least. Especially knowing how many times I've erred personally. I recount to the class a glaring ethical error I made, as a new sales agent in 1986. It seemed to make "good business sense" to me at the time. Yet, I must have dozed off during that session of my "new agent training!"

I was born the day WWII ended. You could say I'm the first Baby Boomer. My parent's generation defined us then as "hard working, patriotic, and morally centered (with the one glaring disgrace of racial ignorance)." Then my generation, starting about 1968, fueled the national push towards, "If it feels good, do it!" This, as an aside, was Sigmund Freud's take on ethics and morality. How could a guy so smart... be so dumb?

Ethics Continuing Education

As Realtors, we are challenged to behave ethically today in a very tumultuous arena. The bubble has burst. Our homes are worth less than half of their 2005/2006 value. Our neighbors and friends are being foreclosed upon. People are hurting. And surely you recall the saying that, "Desperate times require desperate measures!"

Our Realtor Code of Ethics Manual acquiesces that:

There is no idea which cannot be misapplied.
No faith which cannot be exploited.
No concept which cannot be abused.
And no principle which cannot be perverted.

Well, I guess that about covers our human nature tendencies! In our defense, our manual states: "In the interpretation of this (ethical) obligation, Realtors can take no safer guide than that which has been handed down through the centuries, embodied in The Golden Rule, "Do unto others as you would have them do unto you."

Can I get an "Amen?"

Big Bank Curiosity

2010-09-20T11:01:00.002-04:00

Before I start, I think it's ok - and healthy - for banks to make a profit. I mean they are, after all, the clearing houses for $Money$, the lubricant of our global economy. I'm a politically conservative, business oriented, limited government, free market advocate... and as such, I like to see people working and making money, feeding their families, taking vacations... and keeping their homes!

I'm also in complete understanding of our frail human nature, where pride and greed are at our core... and where qualities such as humility are often thought of as "quaint." It's all about corporate culture and in circles where enormously obscene profits are for the picking, smoky back rooms are heard to say, "Do them, before they do you!" I can't wait to see the new film, "Wall Street: Money Never Sleeps," with Michael Douglas, Shia LaBeouf, and Josh Brolin. Talk about great timing for a film release! It plays on the bursting of the housing bubble and our current economic turmoil like a concert violin. And from a recent critique: "In Money Never Sleeps, greed is a constant high, with everyone chasing the dragon."

So, help me with this. A family buys a house in 2004 for $350,000. They can afford it, as both Mom and Dad have secure jobs and money in the bank. They even put a 20%, $70,000 down payment in the deal and secure a $280,000 mortgage. Almost everything in their monthly payment is interest and escrows for taxes and insurance. By 2009, their balance is $270,000. She loses her $48,000 job at the accounting firm and eventually gets one at Target for minimum wage. He is devastated when he is let go from his marketing position, where he had been earning $75,000 per year. By early 2010, they had missed 5 mortgage payments and were in a panic. They had always paid their bills on time and had great credit! The foreclosure notices started coming and the credit card companies called non-stop. All unfamiliar territory for this family.

To save them from foreclosure, their Real Estate Agent, and experienced CDPE (Certified Distressed Property Expert) at Parkside Realty Group, LLC in Palm Coast, FL, helps them in a complicated "Short Sale" transaction. Their home sells, after several months of negotiation with their bank, at the 2010 "new market value" of $175,000. That's $95,000 shy of the mortgage balance... and 50% less than they paid for the house in 2004. They walk away with nothing, except the knowledge that their Real Estate Agent helped them dodge the foreclosure bullet.

Question: If it cost the bank about $40,000 in admin and carrying costs and professional legal and Realtor fees to do this deal... Why not evaluate the situation and do the same deal for the current owner? You know - keep this family in the house and the kids in the same school, etc. Their new payment would be where they could now afford it (similar to the rent they'd have to pay down the street to the guy who is also upside down on that house).
If it saves the bank $40,000 in the reality of the current situation, am I being naive to think this is a better solution?

Flagler County, FL Condos

2010-09-17T14:39:00.002-04:00

Canopy Walk ICW View

Riverview at Grand Haven

Hammock Beach Club

It's no secret that we are in a challenging real estate market. The papers say for "the past two years." But ask any seasoned broker or agent in Flagler County, FL and you will get a different answer. It was the 4th Quarter of 2005 and "something" was happening... The market had been on fire - ridiculously so - for at least five years. We were on track to be like Southern California, with $1,000,000 median prices! But there was this ominous... palpable feeling that it was all about to unravel. And it did.

It's fair to say that in the five years hence, our median prices have fallen at least 50% for most properties in Palm Coast, Flagler Beach, The Hammock, Bunnell, and all of Flagler County, Florida. It is all too clear, remembering the Gala Grand Openings with fist-sized jumbo shrimp, champagne, helicopter rides, lottery drawings, waiting lists and people falling over each other to write huge deposit checks. We were all such smart "investors!"

And Condos have fallen the hardest. Recall the openings of: Grand Haven's Riverview and River Club, Ginn's Hammock Beach and Yacht Harbor, The Palm Coast Resort, all of the new Hammock Dunes offerings, the Surf Club, European Village, Canopy Walk, Cinnamon Beach, Tidelands. $500,000, $750,000, $1,000,000, $2,000,000, $3,000,000! It was nuts, but it was such fun! Until it ended. It's no fun to be the guy who anted up $775,000 for his water view pad, only to see the unit next door sell as a $295,000 short sale or foreclosure!

Here's the rub with condos. When the economy goes nuclear, so do condos. If the guy next door hits hard times and loses his house, it's a shame, but doesn't directly affect you. But if the condo unit in your building goes down... there's one less contribution per month to the general fund... then the cash reserves go... then the grass gets cut twice a month instead of once a week... then the pool gets a little dirty... then they try an assessment on the good folks who are faithfully paying their condo fees... then the association goes on the mortgage bankers "high risk" list and potential buyers can't get a loan... You see where I'm going here.

Now the good news... There are lots of motivated sellers and condo prices are getting closer to where they need to be to start clearing the inventory. There are deals to be had. Sure, some sellers are still "mad as hell and they aren't gonna' take it any more... and they aren't gonna' give this place away." They are the ones who skipped Economics 101 the day they covered "The Law of Supply and Demand." However, there are plenty who understand the realities of the current (and foreseeable future) market dynamics.

A seasoned, local Real Estate Agent has this one very critical job to do today:

Put Sellers who want to sell... and Buyers who want to buy... together. Then help them remove the emotion and negotiate a deal that offends neither... and satisfies both! If this fits your situation, my background and skills could be what you are looking for. I'm at Parkside Realty Group, LLC and would welcome an opportunity to meet you. Cell: 386-931-1987.