Is Now the Time to Buy or Is Now the Time to Sell?

We are in a buyer’s market.  The market is now a seller’s market.  Now is the time to buy.  Now is the time to sell.  Interest rates are low.  Interest rates are soaring.  CONFUSED???  With all the mixed messages out there, many consumers are confused as to what they should do.  This week’s blog post will explain what type market we are currently in and what current interest rates mean to people trying to buy homes in St. Augustine and northeast Florida.

For the past several years the St. Augustine real estate market, just like the rest of the country, has been a market favorable to buyers.  Average prices of homes dropped drastically, interest rates were low, and there was a lot of inventory.  There was also an influx on new construction communities will nice incentive packages.  Over the past several months real estate around the country but especially real estate in St. Augustine has begun to change.  We have now entered a seller’s market.  The inventory levels have dropped drastically.  In some neighborhoods there are no houses for sale at all.  Due to the low inventory, list prices are on the rise.  Sellers also do not have to make as many concessions during closings (i.e. paying closing costs)

Last week interest rates also took a major jump.  This is being caused by changing monetary policies by The Fed, stating they will no longer be printing more money.  The stock market has also been climbing causing people to remove their money from mortgage bonds and place it in the stock market so they can get a better return on investment.  Due to the Dow Jones drop yesterday interest rates have stabilized today.  Current interest rates as of today are the following:
               FHA        4.25%
               VA          4.25%
               Conv       4.75%
               FB          4.25%

So what does this mean to you, the consumers?  If you are wanting to buy a home in St. Augustine or any of the surrounding areas, you need to begin the process now.  With interest rates on the rise you will qualify for less than you did a month ago.  If interest rates continue to rise you will qualify for less tomorrow than you do today.  If you are wanting to sell your home in St. Augustine or any of the surrounding areas now is the time to do it.  Inventory levels are dramatically reduced from just a few months ago and the market will yield you more money than in previous months.  Whether you’re wanting to buy or sell TEAM JOHNSON can help you.  We have a 5 member team each with our own specialties.  We will work hard to achieve a sale.  Give us a call today at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com 

Team Johnson Gives Back

TEAM JOHNSON is the number one producer in our office.  We sold more homes in St. Augustine than anyone else in our office for 2011 and 2012.  Part of our success is, unlike most real estate teams, we are not 5 real estate agents all doing the same job.  Each of our 5 team members have their own areas of expertise when it comes to buying and selling real estate.  3 members of our team took last weekend off from selling homes in St. Augustine and donated their time, talents, and expertise to a charity organization centered on children. 

Cheers for Peers (CFP) is a non-profit professional musical theater program.  Their mission statement is to present quality theater for family audiences and school assemblies in the St. Augustine area.  CFP’s program offers students a unique and amazing opportunity to learn in a professionally structured environment.  CFP provides children of all backgrounds an opportunity to experience quality theater productions.  Their singing, acting and dancing skills are developed in a disciplined classroom atmosphere. The students then test these skills through performance.  The audience applause strengthens their self-confidence and positively reinforces their hard work.  CFP's mission is to produce high quality musical productions, nurture imaginations & creative thinking skills, build theatre audiences of the future and create a memorable family experience.

Gene Johnson is the leader of TEAM JOHNSON.  He has an extensive background in accounting and business management in addition to being a top real estate agent in St. Augustine.  He used that business knowledge to manage the front of the house.   He collected the ticket money and helped this non-profit entity with very little resources stay in budget and even raise some funds for the continuation of the program.

Libby Johnson is the TEAM JOHNSON REALTOR handling buying and selling homes in the St. Augustine area.  She also has over 20 years experience teaching the arts to children of all ages.  She was the main teacher for these children, some of them having never even seen a stage let alone act, dance, and sing on one.  Due to casting changes she even donned the apparel of the teacher “Ms. Grouchstick” and the “Witch” in the musical. 

Shalynn Johnson is the TEAM JOHNSON member that handles all the marketing.  Her marketing efforts ensure that TEAM JOHNSON, as well as our listings, are marketed to the world!  She also has over 20 years experience in the performing arts.  Unlike Libby, Shalynn chose to stay behind the scenes of this musical.  She set up the theater’s sound and light system.  When show time came she used her extensive technical background to run the light board and the sound board.

All together these three members of TEAM JOHNSON donated hundreds of hours of knowledge and expertise to this program.  Gene, Libby, and Shalynn had fun meeting the children and their parents who were involved in this program and the shows were great, rewarding, and fun too!  For more information on this charity organization please call TEAM JOHNSON at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Obtaining Homeowners Insurance in Florida During Hurricane Season

June is here and Floridians know what that means, hurricane season is upon us.  Hurricane season for the Atlantic runs from June 1^st through November 30^th.  Throughout that time there may only be a few tropical depressions swirling around or there could be back to back storms headed towards the U.S.  This could create a problem for people looking to buy or sell a house during this six month span.  Do not panic though.  Ironically, this six month span is also the busiest time of the year for real estate transactions.  This week’s blog will have tips for ensuring a smooth transaction during hurricane season.

If you are planning to finance your home it is important to remember that any mortgage lender will require that the buyers provide proof of homeowner’s insurance coverage on the day of the closing.  Failure to do so will result in the lending company’s refusal to release the funds and the closing will at best postponed or outright cancelled.

As a storm develops insurance companies will suspend issuing homeowners insurance policies until the storm passes, even if the area is not in the direct path of the storm.  It does not take a direct hit by a storm to cause damage.  The Florida Realtors®/Florida Bar Contract for Sale and Purchase contains within it a clause that extends the closing date for a period of time in this event; however, it could impact other areas such as interest rates, points and closing costs, homeowner’s insurances rates, etc. It is important to know.

There is a very simple way to avoid this happening.  Start shopping as early as possible for homeowner’s insurance.  These types of storms can pop up out of no where.  A great time to start would be as soon as you have an executed contract on the property.  Narrow down your choices and as soon as you feel good about your loan being approved or you have been informed by your lender; go ahead and have your insurance company "bind" your policy.  You will be required to write a check at the time of application and the policy will become effective on the date of closing.  If the sale falls through for whatever reason or you are delayed you can always cancel the coverage and request a refund from the insurance company for any unused premiums.  Make sure you talk to your local insurance agent before signing anything.

TEAM JOHNSON can help navigate you through a successful sale even in the middle of hurricane season.  Each of the members on our team have been long time Florida residents for a minimum of 20 years.  We have seen some of the worst seasons for the state of Florida including the record setting 2004 where we had 4 hurricanes (Charlie, Frances, Ivan, and Jeanne).  Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Staging Your Home-Making Your Home Attractive to Buyers

          

You have decided to sell your home.  Great!  Many home owners spend hundreds, if not thousands of dollars preparing their home for sale.  I get asked by sellers all the time if they should change the carpet in this room, or paint this room.  Your home has just one chance to make a great impression with each potential buyer.  And it can!  The whole idea is to present a clean, spacious, clutter-free home-the kind of place you’d like to buy.  This week’s blog post is about how to stage your home so that it is attractive to potential buyers.  Accomplish a little every day, and before long your home will be ready to make the impression that can make the sale

YOUR HOME’S CURB APPEAL.

This is the first time a potential buyer will see your home.  We have seen buyers pull up to a house and not even want to go inside because of the impression they receive from the exterior.  Be sure your lawn is mowed and edged.  Make sure any trees and shrubs are trimmed and gardens are free of weeds.    Be sure your walkways and driveway are free of branches, litter, toys, etc.  Try to remove all rust, mildew, moss, etc. stains from walls and oil stains from driveway.  Shine all brass hardware on front door, outside lighting fixtures, etc. and be sure to have working light bulbs.  Clean all outdoor furniture and remove any furniture that is unsightly.  For some decoration add a brand new doormat in front of the front door.  This will help keep dirt from tracking into the house and will bring an aesthetic appeal to the exterior of the house.  Also consider a seasonal door decoration.

GENERAL INTERIOR TIPS

Off-white or light beige is the number one choice of wall color for today’s buyers.  It is softer than stark white and it suggests cleanliness, makes the rooms seem larger, and provides an excellent backdrop for most home furnishings and color schemes.  Shampoo carpeting and steam clean grout lines on tile floors.  Wash all windows and dust/vacuum all blinds, ceiling fans, window dressings, and window sills.  Begin packing/throwing away extra items that you will not need until after you move.  The less cluttered you can make your house look the better.

ROOM SPECIFIC TIPS

Make your living room cozy and inviting and be sure any damaged or worn furnishings are not present.  For the dining room set the table for a formal dinner to help viewers imagine entertaining guests and be sure all china is dust free.  In the kitchen unclutter all counter spaces and appliances, clean and organize inside cabinets and appliances, and be sure all areas sparkle.  Be sure the bathroom lighting and fixtures are in working order and everything is spotless.  For the bedrooms, make sure everything in neat, orderly, and spacious looking.

All of the above can seem overwhelming if you try to accomplish it in one day.  Take each area step-by-step.  For a check list of everything mentioned above plus a few other tips, call TEAM JOHNSON.  We have 20 years experience buying and selling homes in the northeast Florida market.   Each of our team members have a wealth of knowledge and their own specialized area.  We are members of 3 local MLS boards and can show you any property as far south as Palm Coast, as far west as Palatka, as far north as Jacksonville and everywhere  in between.  Put the power of a team behind you.  

Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

Multiple Offer Situations: Which Is the Best Offer?

You have placed your home on the market and now you have multiple offers.  Congratulations!  Now what do you do?  The first step is to notify all parties that you are now in a multiple offer situation and all parties need to submit their highest, best, and final offers.  Once you have received them all, now it’s time to choose one, but which one?  How do you know which is the best offer?  This seems like an easy question to answer-the highest offer is the best.  This is not always true.  This week’s blog will give you some tips on picking the best offer.

ASKING FOR CLOSING COST CONCESSIONS

It is very common, even for REALTORS®, to look directly at the sales price and no further.  Before deciding on an offer, the reviewer needs to look at the closing costs section of the contract.  If the buyer is asking for closing cost assistance it is in fact lowering the offer price.  I hear it all the time from agents as well.  “I’ve made a full price offer.”  What they don’t see is that the buyer is asking for 3% closing cost assistance from the seller.  If the offer price is $100,000 with 3% closing cost assistance, the seller would have to contribute $3,000 to the sale.  This makes the offer in reality is $97,000 not $100,000

CASH OFFER VS. FINANCED OFFER

When an offer is made with cash there are several advantages.  One advantage is there is no financing contingency period.  Financing contingencies can last from 30 to 60 days.  This is time the property is off the market and not being actively marketed for sale.  If the financing falls apart after this deadline, the contract is dead, the buyer gets their deposit back, and the seller gets to start all over again.  With a cash offer, you don’t have to worry about this time period and can close a lot sooner.


Another advantage of a cash offer is you don’t have to worry about the property appraising.  When dealing with financed offers it is important to remember banks loan money based on two things:  the agreed sales price, or the appraised value, whichever is lower.  If a bidding war drives the asking price up, the house will still have to appraise at the higher price if the offer is made with financing.  If the appraisal comes in at a lower than agreed upon price, the seller has two options:  void the contract and start over or lower the contract price to the appraised value.  With a cash offer there is no appraisal and you can close much sooner.

REPAIRS

When reviewing an offer check for repair requirements and/or allowances in the contract.  Even a cash offer could have a stipulation in the offer stating the seller must perform repairs.  “As-is” contracts are the only exception.  As “as-is” contract is just that, the buyer will buy the property exactly how it sits with no repairs done by the seller.  Financed offers will sometimes be submitted without an call for repairs or allowances; BUT it is not only up to the buyer and seller.  The buyer’s lender will have requirements that the seller MUST perform before closing.

THE PROCESS OF ELIMINATING DOWN

When presented with multiple offers there is a process to eliminating some of them.  Each situation is different but this is a system Team Johnson advises to our sellers:
1. Throw out any and all offers that have conditions (home inspections, contingency of selling a home or refinancing another property, etc)
2. The next stage is to  throw out all offers that are at asking price or below
3. The next step is to eliminate any VA & FHA financed offers.  These types of loans take longer than the average, and sellers must pay for some of the buyer’s fees.
4. The last step is that of the offers remaining the all cash offers take priority.
In a bidding war, the highest offer is not necessarily the best offer for the home seller, unless it is an all cash offer with verifiable proof of funds, a quick close of escrow of 7 to 10 days or less and a hefty cash deposit.

Sellers are always looking to sell: A) at the highest possible price, b) with the least amount of inconvenience and c) in the quickest amount of time possible. If you are a home buyer and find yourself competing with other buyers for the same house, remembering some of these points ought to help you present your best offer. If you are a home seller and you find yourself receiving multiple offers for the purchase of your house, these points will be a good guide to assist you.  OR you can hire a team of professional and experienced contract negotiators!  TEAM JOHNSON is always here to help buyers and sellers through this type of process.  Give us a call 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com

I Want to Buy a House But I Have Bad Credit

This is a problem many people today are facing.  Just because you have filed for bankruptcy, have bad credit, or have gone through a foreclosure doesn’t mean your dreams of homeownership are gone.  This week’s blog contains steps for you to take in order to repair your credit so that you can buy a home.  Team Johnson can help you every step of the way.  We work with a network of people including mortgage brokers and attorneys that are only too happy to help.

Pull Your Credit Score

As the saying goes, forewarned is forearmed.  You need to know where you currently stand.  Any mortgage firm or lending institution can pull your credit score with your permission.  Or, you can pull it yourself by going to www.annualcreditreport.com.  Check the report for accuracy and report any errors to the credit agency.

Work Towards Fixing the Problems

Before trying to settle a debt, check the statute of limitations.  Collectors only have a certain amount of time to collect their debt.  The following link breaks down the law into states. http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml 
If the debt is still with the original creditor call that company.  Tell them the situation and see if they can offer you a deal.  If you can avoid having your account charged off, do, but do not get pressured into a deal where other debts will go past due because you are not helping your credit.
Once a debt has been charged off the damage has already been done.  It has already impacted your credit.  The company has also already written off your debt and it is not impacting their stocks anymore.  They sell the debt for pennies on the dollar to a debt collection agency.  Do not let these companies bully you.  Also, do not get sucked into debt consolidation companies.  These companies often charge outrageous fees just to make calls you can do yourself.   They sometimes pay themselves first and do not guarantee they actually get you released from the creditor.  Debt collection agencies will offer a large lump sum payment or payment options.  If you make payments to a collection agency, little things like extra interest or handling fees could keep your balance from ever going down. In some cases, making a payment restarts the statute of limitations. Wait until you have one lump sum. Remember, the older the collection, the more eager they will be to settle. If they are hounding you, send a cease and desist letter or there are apps that you can download to block an incoming call.

Use Credit to Repair Credit

If you have a credit card be sure you pay it off on time.  Never carry large balances.  If you have large balances pay more than the minimum even if it is just $5.00 more and be sure to keep the card active.  This looks good on your report.  If you don't have a credit card, try to get a "secured" credit card offered by your bank wherein the amount you deposit into the account is the amount of credit you are allowed.

The Waiting Game

The period between bankruptcy filings is seven years, but the ding to your credit report stays for 10 years.  For better rates with a conforming loan, the wait is four years after filing bankruptcy.  FHA guidelines are two years after a foreclosure, which means you could qualify for as little as 3.5% down.  Hard-money lenders will often make loans six months after filing bankruptcy or a foreclosure, but will a require 20 to 35% down payment. The interest rate will be very high and the loan terms are not as favorable; many will contain prepayment penalties and be adjustable.  Subprime lenders (not to be confused with hard-money lenders) are no longer making 100% financed.  To improve your qualifications for a loan it helps if you can show steady employment for more than 2 years, save a down payment of at least 10%, and do not fall behind more than 30 days on any bills. 

Repairing credit simply takes time.  Remember do not give up.  Team Johnson understands this can be a trying time.  Many people get frustrated, throw their hands in the air, and give up.  Stay the course.  We can help you every step of the way and once we’ve gotten you back on track we can help you find the home you’ve worked so hard for.  Give us a call 904-495-0146 or email teamjohnson@watsonrealtycorp.com

I'm Ready to Buy a Home. Now What?

I think I’m ready to buy a home, now what do I do?  Has this thought gone through your head?  Does the whole process seem overwhelming?  It does not have to be.  If you are prepared and you have the right support behind you buying a home, whether you are a first time home buyer or this will be your 20^th home, does not have to be a daunting task.  Let’s discuss the steps to buying a home.

GET PRE-APPROVED. 

Before you begin your home search, get “pre-approved”.  It is very important to know what you are comfortable with spending when buying a home.  Nothing is more disheartening than to find your perfect home, only to find out that it is not possible for you to buy.  One of the best places to start is with your banking establishment or an institution you have established a relationship with.  Interest rates are very favorable at near record lows.  Shop for the best bank rate and loan cost you can obtain.  Team Johnson will be happy to assist you with this.  We have the contact information for some great people that really take care of our customers. 

Pre Qualifications are better than nothing but a pre-approval will really help you out in the long run.  What is the difference?  A pre-qualification is done by supplying the bank with your overall financial picture.  You tell the loan officer your income, debt, and assets.  The lender then gives you an idea of the mortgage amount you qualify for.  This does not include an analysis of your credit report or an in-depth look.  A Pre-Approval is more in depth.  You will have to supply your lender with the necessary documents to perform an in-depth look at your financial background and current credit score.  The lender will be able to tell you the exact amount you are approved for.  Many sellers will not accept a pre-qualification.  It is best to get the ball rolling as early as possible so go for the pre-approval.

FIGURE OUT YOUR WANTS VS. NEEDS

Make a list of what you need in a home, and number the list in order of importance.  Make another list of what you want in a home, and number that list in order of importance.  Take this list with you on all showings.  It will help you dissect the information about each property.  Also, make a likes and dislikes list for each property and assign an overall “rating” number between 1-5 for each home you see.  Try to limit your final selections to 3-5 properties.  Consider if your final selections will meet your needs for the future.  We can provide a check list for you. 

CALL YOUR REALTOR®

As we have stated in previous blogs, you could drive yourself crazy searching sites like REALTOR.com, Trulia, Zillow, etc looking for a house.  Keep in mind using sites like this doesn’t hurt anything but they are often out dated.  For example, we received a call about one of our properties that someone found online and the property sold 6 months ago.  You don’t want to spend hours searching homes online just to find the one you want, and then it’s under contract or sold.  You also don’t want to compile a huge list of properties you want to see.  It is impossible to show 20 houses.  You will want to narrow your choices to between 3-5 properties at a time.  Your REALTOR can make the showing appointments and show you the home.  If you like what you see, it’s time to write an offer.

TEAM JOHNSON has a team of REALTORS working to find you your perfect home.  We are members of 3 local MLS boards and can show you any property as far south as Palm Coast, as far west as Palatka, as far north as Jacksonville and everywhere  in between.  Give us a call at 904-495-0146 or email us at teamjohnson@watsonrealtycorp.com