Distressed Sellers are now Boomerang Buyers

It seems we always have a new catch phrase or industry jargon ….. short sales, REOs, buyer’s market…… and now it’s Boomerang Buyers.  You are going to start hearing more about this buying group and I’m hoping to share a bit of insight with you too.

CNN Money is reporting that 4.8 million borrowers have lost their homes to foreclosures and 2.2 million to short sales since the bubble burst.  Many are now starting to bounce back.

I was one of the first agents in our area to work short sales – I closed my first listed short sale in 2007.  We had no training of it then, very little talk of it, and I bonded with a negotiator in Countrywide who worked with me until the merger with Bank of America.  My training was boots on the ground with short sales!  From that time, Lisa and I have helped many people with short sales to avoid foreclosures.

We started to do a bit of homework on our market’s history.  Our local market consists heavily of residential and 2^nd homes/investment properties.  It appears from the numbers that 2011 was the bottom with our single family homes and condos.  However 2009 appears to be bottom for our homes along Hwy 30a – a luxury 2^nd home market.

The boomerang buyer fits in to the equation in that these buyers represent those former homeowners who lost their homes to foreclosure or short sale.  The heaviest years for these sale types were 2009-2012.  The borrowers who dealt with either of these in the earlier years are now possibly in position to purchase again.  We are seeing many lenders and volume home builders now setting up programs to help these individuals in credit repair.

A foreclosure is going to set a person back further in the recovery years than a short sale will.  It is apparently taking 3-7 years to recover however we are seeing some who sold their property as a short sale buy again within 2 years.

I was in a closing last week where the buyers were purchasing a $249,000 home in Niceville, FL.  The average home in Niceville is about $260,000 and it is a Seller’s Market.  Homes move quick and homes for rent are hard to find. In comparison to this home it would rent for about $2000 per month.  This couple purchasing with taxes and insurance will be paying $1300 per month.  A considerable difference to renting.

Even though the bottom was probably in 2011, we have remained stable to those 2011 numbers with modest increases in some areas.  We have been faced with a loss of value of 10 years back!  These prices may not ever, and we pray not, return to the 2005 appreciation increase levels but at some point we will begin to steadily and properly gain appreciation.

We have so many buyers in the market currently – those who want to live here due to our incredible schools & beaches, military transfers, smart investors, and ….. the 2009 & 2010 distressed sellers who are now 2013 & 2014 potential buyers!   AND just like a boomerang – they are back!

by: Robbie Fenn & Lisa Norton

Lisa Norton & Robbie Fenn In Washington DC lobbying for property owners and attending a Real Estate Conference

Realtors, Broker Associates, and Sales Managers for Coldwell Banker United, Realtors.  Both have been named Destin and Ft Walton Beach Realtor of the Year – 2 years each. If you would like more information on the market give Robbie & Lisa a call at 850-897-5366

Seller Confidence in Real Estate is Returning

Seller confidence is evident across the country and evident right here on the Emerald Coast.….

From Navarre through 30A to just above I-10 – about a 90 mile stretch of beaches and 30 miles north you will find 2630 homes for sale and of these of only 328 are distressed (short sales or foreclosures).  In this same stretch, we have 1347 Condos to choose from and only 73 are distressed.

Let’s take Niceville, Destin/Miramar Beach homes and condos, and 30a homes to demonstrate what I’m speaking of.  These 4 markets mirror in some areas, and not in others but all equal in one thing…..demand in March that is starting a month over month

The Emerald Coast!!!

carry over.  This is always my favorite evaluation to monitor.

 Niceville Homes:  There’s currently less than 6 months of inventory – remaining consistent as a Seller’s Market!  The average sale price has risen.  Of the 45 homes sold, 21 obtained VA loans, 13 were conventional loans, and 6 paid cash.  The 6 who paid cash got on average an extra 7% off the list price.  The average home sold at 2.3% off list for the month.  Only 4 sales were distressed properties.

Destin/SanDestin Homes: March ended with only 7 months of inventory – so close to being a balanced market. The average sale price has risen overall.  Of the 66 homes sold 17 were distressed, 8 obtained VA loans, 31 were conventional loans, and 23 paid cash.  The 6 who paid cash bought on average of $782,000.  The average home sold at 6.5% off list for the month.

 30a Homes: 8 months of inventory ended March. The average sale price has a pattern of varying between 700K-950K.  Of the 61 homes sold 6 were distressed, 35 were conventional loans, and 17 paid cash.  The 17 who paid cash bought on average of $828,000.  The average home sold at 7% off list for the month.

 Destin/SanDestin Condos: March ended with only 9.5 months of inventory.  The average sale price has risen overall.  Of the 89 condos sold 12 were distressed, 22 were conventional loans, and 55 paid cash – that’s incredible!  The average condo sold at 8% off list for the month.

The average sale in condos for March was $331,000.  I am proud to announce that the largest sale of the month was $1,350,000 – and not only did Coldwell Banker United list this fabulous condo, but Coldwell Banker United SOLD it!!!

The trend of Seller Confidence is evident across the country and 2 great articles for you to reference can be found at Seller Confidence Brightens and March 2013 Real Estate Data.

If you are ready to put your property on the market or know someone who is, then please give Robbie & Lisa a call today.  If you are looking to purchase property or know someone who is, give us a call today.

We look forward to hearing from you soon!

Robbie Fenn & Lisa Norton      Broker Associates/Sales Managers Coldwell Banker United, Realtors  850-897-4563

Let us open the door to your successful real estate experience!

Multiple Offers….Cash Is King! Let’s discuss the Destin Florida Area Market!

Multiple Offers ……. Cash is King

Let’s discuss offers on the Emerald Coast!

Crystal Beach in Destin

Those seem to be the two themes for February.  Multiple offers have been with us again for a bit  since the bust of the market but I wanted to share some local market insight as to possibly why.

Let’s take Niceville, Navarre, Ft Walton Beach, Destin/Miramar Beach homes to demonstrate what I’m speaking of.  These 4 market areas mirror in some areas, and not in others but all equal in one thing…..demand in February that appears to be carrying over to March.  I am anxious to do this evaluation again next month.

Niceville year-to-year comparison:  There’s less than 6 months of inventory – that’s a Seller’s Market!  There are about 70 less homes to choose from than last year – Inventory is dropping with less to choose from….. Multiple offers come in to play!  The average sale price has risen.  Of the 37 homes sold, 19 obtained VA loans, 8 were conventional loans, and 5 paid cash.  The 5 who paid cash got on average an extra 5% off the list price.  Cash prevailed!  With only 1 short sale and 2 foreclosures of the 37 that closed…..Cash was easy to be King!

Ft Walton Beach and Navarre year-to-year comparison:  Combined we closed 122 homes – 33 were conventional loans, 30 were cash, and 47 were VA loans.  Cash had a slight advantage on getting a better percent off of list price so it prevailed as King!  I think the reason we saw the cash sales only having a modest edge is because these are the markets that saw higher closings in distressed properties – 24 closings were foreclosed properties and 19 were short sales.

Individually….

Navarre dropped to a Balanced market – which is about 6 months of inventory, their prices inched up a bit, and there are about 150 less homes to choose from…..demand is created which results in multiple offers.

Ft Walton Beach showed only 4 months of inventory!  Now that’s a Seller’s Market!  Their inventory has dropped also with 90 less homes to choose from….again demand is created which results in multiple offers.

Destin/Miramar Beach including SanDestin Resort year-to-year comparison:   we closed 46 homes in February – equal to last year BUT our average price sold increased by almost $30,000.   Of those sold, 25 were conventional loans and 12 were cash.  Cash was King!  Those 12 sales got on average 15% off list price!!! At this point there are only 56 homes priced under $300,000 which has always been a magic point for Destin…… demand is created which results in multiple offers.

Boat traveling into the Harbor from the East Pass

The $300,000 and under price point allows families to move to Destin who otherwise couldn’t afford to, and it’s an appealing arena for investors.

Of the 46 homes closed only 2 were foreclosed properties and 1 was a short sale.    This could be why cash prevailed so heavily.  Our inventory year to year has dropped by about 100 homes, and with steady sales, our months of inventory to sell has dropped as well.

These are only a few of the market segments but a good idea of the trend we are seeing.  We are not just telling you that we are in multiple offer situations to pressure you….it’s the reality of our market currently.  For a listing agent, it can become a juggling act with the Seller’s asking for the Buyer’s at the table to give their highest and best offer.

It’s our job to provide as much information as possible for you to make your decision on what and how to offer.   Review the statistics on the following pages and let me know what questions you may have or if you would like properties specific to your needs/desires emailed to you.

It’s a great time to buy – interest rates are low and our prices still resemble many years back and stable.  If you are ready to buy or sell – please give us a call – 850-496-2150 or 850-621-4525.

Robbie Fenn and Lisa Norton

Coldwell Banker United, Realtors Sales Managers/Broker Associates

Real Estate Divorce Specialists – the FIRST in the Florida Panhandle

Your Paradise Group is proud to announce that Broker Owner, Robbie Fenn, has earned the Certified Real Estate Divorce Specialist.  Robbie is the first and ONLY specialist in the FloridaPanhandle – and soon to follow is her business partner, Lisa Norton. They join over 130 dedicated professionals within this niche market within the USA and Canada.  In addition to becoming a Certified Real EstateDivorce Specialist, Robbie also holds a certification in Loss Mitigation, in the unfortunate event a Short Sale is needed to be negotiated.

Turbulent economic times often put divorceson the rise.  Realizing this need, and having lived through contentious divorces themselves, Robbie and Lisa pursued this certification to provide greater assurances to divorcing clients.    “This certification gave us a full understanding of the interaction between the Realtor, Certified Financial Divorce Planner and the attorney  and how all work for the parties involved while still remaining sensitive to the situation and emotions” Robbie stated.    “Divorcing couples are going through one ofthe most stressful times in their lives, and they need knowledgeable help.”  Lisa stated.  The training gave this team an advantagethat can now be provided to you.

Divorce can be both an emotional drain and financially devastating, but, the rest of your life is still ahead of you.  Let Robbie and Lisa show you how much closer you can be toa better tomorrow.

Choose Your Paradise Group – the first and only team in the Florida Panhandle trained to handle your needs.

 

There’s a New Show in Town!

Best Friends, Realtors of the Year, and Business Partners – Robbie Fenn and Lisa Norton – have done, and do, so much together and opening their own Real Estate Firm began a new journey for them.

When asked what contributes to their drive both answered that putting their customers needs first is their biggest proponent.  Their focus is completely on the customer from even naming their firm, Your Paradise Group – which translates to, It’s All About You!

Your Paradise Group is a boutique real estate firm.  It is a combination of all women who are focused, full-time Realtors and all have additional specialty training ranging from International Clientele to Resort  Real Estate.  Robbie and Lisa are the Broker Owners of Your Paradise Group.

Robbie and Lisa go even further.  Robbie has been named Destin Realtor of the Year (2 years) and Lisa named Ft Walton Beach Realtor Year.  They are both immediate past Presidents of the Emerald Coast Chapter Women’s Council of Realtors where Lisa was named Realtor Member of the Year and Robbie named Entrepreneur of the Year.  Robbie recently became a National Speaker when she spoke on International Real Estate in Washington DC at the National Women’s Council of Realtors Conference.  The Women’s Council of Realtors is the 12^th largest Women’s professional organization in the nation. They are both actively involved also in their local Realtor Association currently serving elected terms on the Board of the Directors.

Both say that being involved in their industry increases the opportunity for selling their customers property.  People do business with people who they like and know – and it’s no exception in real estate.  Robbie and Lisa have mentored many agents throughout their career and from their honors are valued in their industry.  This in turn directly affects their business in a very positive manner.

Work ethic is where they mirror, but knowledge is where they differ and what a great combination for their buyers and sellers.  Robbie brought a strong Resort, Condominium, Marketing & Investment portfolio, while Lisa’s sturdy ability is in Military buyers, Subdivision Development & Marketing.  Both have aggressive backgrounds in listing properties to put a Sold sign in the yard!  The combination of their knowledge, education, extreme respect for the other, and business principles has made this one of the top teams on the Emerald Coast.

Their latest adventure has been the formation of their own weekly television show on 30A TV, channel 8.  “Life at the Beach” showcases the many outstanding properties Your Paradise Group has been asked to market as well as a look at the Emerald Coast and what it has to offer.

http://30atelevision.com/play.php?vid=1755

 

 

 

As for the future, their goal is to continue the service of making their customers the ultimate focus,  staying politically connected with Tallahassee and DC to continue fighting for property rights, and remaining on the cutting edge of innovation for those they represent.

STABILITY = RECOVERY ….. The Emerald Coast Florida Housing Market …..July 2012

We have seen artificial recoveries in the past, but the consistency of the numbers coupled with the lower days on market, the lower months of inventory, the lower percent of sales price to list price, and fewer short sales and foreclosures are all key indicators of market recovery.

Let’s take a look at June Statistics from the area between Navarre to Panama City and upwards to the State Line – this about 90 miles of beach east to west and about 30 miles north.  The majority of the Emerald Coast, a large stretch of land.  We have a total of 3179 homes on the market.  Of those ONLY 13% are distressed (short sales or foreclosed properties).  In the same stretch we have only 1637 condos on the market with only 6% being distressed.

Now let’s look at some of the individual areas:

Destin, SanDestin, & Miramar Beach homes: 58 Homes sold in June averaging $379,000.  8 months supply of inventory.  Selling at 6% off list price.  In June, 30 of the homes sold obtained loans, and 16 paid cash.

30A homes: 59 Homes sold in June averaging $755,000.  9 months supply of inventory.  Selling at 10% off list price.  In June, 34 of the homes sold obtained loans, and 20 paid cash.

Navarre & Ft Walton Beach homes: 121 Homes sold in June averaging $224,000.  6 months supply of inventory (Seller’s market indicator!). Selling at 4% off list price.  In June, 75 of the homes sold obtained loans through FHA, VA or Rural Housing, and 18 paid cash.

Niceville homes:  57 Homes sold in June averaging $282,000.  4 months supply of inventory (Seller’s market indicator!).  Selling at 6% off list price.  In June, 33 of the homes sold obtained loans through FHA & VA, and 10 paid cash.

Destin, SanDestin, & Miramar Beach CONDOS: 87 Condos sold in June averaging $347,000.  11 months supply of inventory.  Selling at 9% off list price.  In June, 27 of the condos sold obtained loans, and 51 paid cash.

30A CONDOS:  25 Condos sold in June averaging $641,000.  8 months supply of inventory.  Selling at 10% off list price.  In June, 6 of the condos sold obtained loans, and 15 paid cash.

Navarre Beach and Ft Walton Beach CONDOS:  31 Condos sold in June averaging $209,000.  13 months supply of inventory.  Selling at 9% off list price.  In June, 6 of the condos sold obtained loans, and 20 paid cash.

If you are ready to buy, or sell your property, give Robbie or Lisa a call.  850-496-2150 or 850-621-4525

Life at the Beach in June 2012

Check out the article from the Chicago Daily Herald.  http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=277211

We have repeatedly said this – we are in multiple offer situations and we are only seeing sales averaging about 10% or less off list price.  We work this market daily – we know the values – we can share this with you.  The hot properties that everyone wants have fallen in values to those mirroring about 10 years ago – don’t lose out on a good property by lowballing the offer.

For some exciting news too – there’s just so much excitement lately with Your Paradise Group……  Lisa and I were offered our own radio talk show.  It’s a call in show on real estate.  You can find us on your AM or FM dials – FM 94.3 or AM 1400.  The FM station was formerly 94.5 which is sports and Fox News too.  Change your preset so you don’t miss us to 94.3 – every Wednesday from 2-3.   Our topic this week is on insurance!!!  Everyone wants to know about insurance and we have the top agent from our area as our special guest – Dave Morrow.

If you have a property you are ready to sell or know someone who might – please let us know – we can do live open houses and promote our listings during our hour.  What a great way to market your property!!!

 

We hope you have a wonderful day and also hope to see you at the beach soon!

Realtors Fight for Property Owners!

As the saying goes, if you are in the business of Real Estate, then you are in to Politics!

I traveled to Tallahassee for Great American Realtor Days, Feb 14-15.  This blog updates some of the topics and photos from my trip.  This now 8 year journey is never one for personal gain, but rather combining my voice with the issues that affect Realtors, property owners and ultimately our customers.  There’s much work to be done, and much accomplished this week.

VOTE YES ON Amendment 4 0n the 2012 ballot which will bring much-needed property tax relief to non-homesteaded owners (commercial, vacation/second home and investors) and first time buyers. Voters will have the chance to lower property taxes again.

A Realtor-supported insurance bill that could make Florida more attractive to              private insurance companies advanced in both House and Senate committees. SB 1346/HB 1127 would, among other things, remove the requirement that private insurers front millions of dollars to Citizens Property Insurance Corp. to cover losses after a catastrophic hurricane. According to the Office of Insurance Regulation, this is the No. 1 barrier to attracting new companies to the state.

Sen. Charlie Dean (R-Inverness) and Rep. Chris Dorworth (R-Heathrow) are sponsoring legislation to repeal the mandate that all septic tanks in Florida be inspected.  SB 820 and HB 999 will make on-site wastewater system evaluations optional at the local level. Steps will be taken to preserve our most critical natural resources while protecting private property rights. Florida Realtors opposes time-of-sale inspection requirements and mandating that all systems be improved to meet current performance standards.

We asked our Legislators to avoid sweeping Sadowski Affordable Housing Trust Funds into general revenue.  Every real estate transaction generates money for this fund via documentary stamp taxes.  Allocate every penny collected for its intended purpose – housing – or eliminate the tax altogether.

We appreciate the difficult decisions facing legislators in this economic climate.  However, funding these state and local housing programs is sound economic policy.  Housing provides jobs for many industry sectors and is the foundation of a strong community.

Realtors across Florida connect communities to Tallahassee.  We’ve traveled the roads, we know the neighborhoods and we know what matters to Floridians who call this wonderful place home!

We understand the challenges facing Florida’s families!  We know there are solutions!  We wantto make Florida attractive once again to businesses, retirees and young families – OUR FUTURE – who seek strong communities, a better quality of life and the American dream of homeownership.

What Happens When the HOA Forecloses?

My business partner, Lisa, and I have run in to two situations where the homeowner’s association (HOA) would not settle for a lesser negotiated amount.   By Florida law, banks and mortgage lenders can’t be held liable for more than 12 months of past-due HOA payments, or 1% of the total mortgage amount, whichever is less. But that’s still a year’s worth of association payments HOAs can pry out of banks on foreclosed homes through a reverse foreclosure.

In one short sale situation, the HOA would have garnered more than 12 months of the 48 months past due.  Even the lender tried to explain this to the HOA manager.  This HOA had not begun any type of foreclosure process and would not have benefitted from the 1^st mortgage foreclosing.  Luckily for the association, the title company sent the Florida law information to the manager and we were able to settle the past due HOA dues and close.

In our two latest situations, that is not the case.  The HOA will not settle for any less than the amount due in full and have already foreclosed on one condominium and positioned to now foreclose on the other.  I asked Vicki Hoover, owner of H&S Title and Escrow to give us an explanation of this process.

Vicki stated that an “HOA Foreclosure is when the homeowners association forecloses on their lien. After the HOA forecloses, the property in essence is owned by them subject to any encumbrances such as the first mortgage.”

Vicki further shares, “This process that the HOA takes to foreclose is the same as any lender would do.  They have a lien already filed in the public records and must take action on this lien before one year if it is a Condominium Lien or it will expire.  An HOA lien is good for 5 years.  A Lis Pen dens would be filed to put all parties involved on notice that a Foreclosure Suit has been started.  The processes required for Foreclosure begin and the Final document filed would be a Final Judgment of Foreclosure stating a date this is to be sold.  Once completed, the judge will sign off on a Certificate of Title. This process takes approximately up to 6 months or longer depending on how backed up the court system is.”

With regard to the mortgage positions, Vicki continues, “The first mortgage holder will take title when they foreclose on their lien, theoretically. As to the 2nd Mortgage, their position would be determined by the Declaration of Covenants and Restrictions if it was junior to the HOA or not.  Most often they are junior to the HOA. If the HOA forecloses properly and includes the 2nd lien holder, serves them notice, etc.  then this lien would be wiped out if the Declaration of Covenants and Restrictions reflects the HOA in superior position to a junior lien holder.”

We have seen this happen now a few times, and while it not the norm, it is an option that the HOA has.  It is my advice to continue paying your HOA dues.  Not only is it beneficial to the other homeowners but also should be done if you are using the common amenities.   At times, this can be the deal breaker when you are trying to short sale a property.

If you need to short sale a property, please give us a call at 850-496-2150 or 850-621-4525.  Vicki Hoover can be reached at 850-650-6621.

Short Sale Sellers NEED to close in 2012

Please call us if you are considering a short sale…..I wouldn’t wait if you are…..read on…..

Short sale sellers need to close in 2012

WASHINGTON – Feb. 3, 2012 – If a bank writes off debt in a short sale, it’s a “taxable event,” and the lender tells the Internal Revenue Service about the deal by submitting a “Form 1099-C, Cancellation of Debt” at the end of the year. Home sellers must ackno…wledge the amount when they fill out their federal taxes. Through Dec. 31, 2012, however, the federal government forgives any tax liability associated with forgiveness of a mortgage loan.

“In general, homeowners believe the government will extend this tax provision,” says San Diego Realtor Joy Bender. “However, as evidenced by the First Time Homebuyer Credit expiration in 2010, you can’t always count on the government to bail you out.”

The government generally considers forgiven debt to be income. If a seller has signed legal loan papers to take out a $200,000 mortgage and the lender accepts $100,000 in a short sale, for example, the seller received the equivalent of $100,000 in free money by government estimates. As a result, the IRS taxes it. For tax year 2012, however, the government still forgives the debt; in 2013, it might not.

The tax amount can be significant. On a debt of $100,000, a short-sale seller in the 25 percent tax bracket could end up owing $25,000 in income taxes.

Since short sales can take months and even fall through, homeowners considering a short sale may want to start the process sooner rather than later.