"All the young dudes"

"carry the news" David Bowie & Mott the Hoople

The pic is of the old fisherman's wharf, back in the day it was a cool place to take the kids because while you were waiting for your dinner the kids could go out on the dock and feed the catfish. It is now scheduled to be a condo clubhouse.

We were discussing in our last week's sales meeting the state of the market. In the month of October there were 596 single family homes sold in Brevard County. Of these 224 were under $100,000 and 245 between 100K and 200K, that leaves 127 over 200K. So it is not hard to figure out that the number of sales are up but the prices are well down.

Merritt Island

There is a complex of condos on S. Tropical,Sunset Bay, which is on the Indian River with pool and exercise room. There are several on the market but the one that grabbed my attention is a 1 bedroom 1 bath, foreclosure priced at $23,800.

A home off Newfound harbor, 3 bedrooms 1 bath built in 1960 and priced at $67,000.

A home in a golf course community with 3 bedrooms 2 baths and pool, priced at $238,000.

Newspaper

There was a article in today's paper that had a consensus of Realtors that thought the prices would go up in 2010, if they are right then it could be the time to buy.

Thanks
Jim Bagwell

Mr. Taxman

"The Beatles"

First time home buyer tax credit.

I am sure most of you know that the 1st time home buyers credit has been extended with additional benefits.

For the 1st time buyer, which means you haven’t owned a principal residence in the prior 3 years. The tax credit remains at $8000 and time frame was extended to May 1, 2010, you have to have a signed contract by this time and have until the end of June to close the transaction. The income level for these buyers is now $125,000 annually and for married couples $225,000.

Current home owners

To me this is exciting news, for current home owners who want to buy a new principal residence, you will get up to $6500 in tax credit. You have to have lived in your current home for 5 consecutive years of the last 8 years. Income levels are the same as 1st time home buyers. This means over 70% of all home owners qualify for this program.

Purchase price of properties is now up to $800,000.

This is a real tax credit and can be used to pay income tax due or added to your refund.

This whole thing is a very good thing for home buyers because of the lowered prices of all kinds of properties now on the market.

Jim Bagwell

"You got to serve somebody"

"It may be the devil or it may be the lord" Bob Dylan

I am sure most people were brought up similar to me to believe that a person’s word is their bond. Especially when a contract is signed to acknowledge this agreement that is the reason that foreclosures and short sales were so distasteful for all of us.

I have since had an epiphany that has really changed my attitude. We have helped many sellers and buyers with short sales and foreclosures and in each situation it was the right thing for both parties. There are so many people out there who are burning through savings and 401K’s to pay for homes and investments which are now valued as much as 50% less than when purchased. Now intelligently speaking this is not the best thing to do for your family or yourself, it is our pride that is forcing us to keep it going. Truth is it will be years before the prices are back to a point to sell at a break even or profit from a sale.

The lenders themselves are the main culprit behind our dilemma. For a few years the banks made huge profits and rolled along, now some have filed bankruptcies’ and others have been bailed out by the government. To pay us back for our generosity some of the bigger banks are now going to charge a fee to their clients that are never late and do not write bad checks, why because they don’t make enough money on the good clients. That is why I now feel that the majority of people, investors included should not have a moments worry over a default.

Some properties to consider:

At the top end, short sale direct Newfound Harbor home priced at $799,000. This home was built in 1979 and features 3709 sq ft, 5 bedrooms and 3 ½ baths, pool screened, 3 car garage, tennis court,2 boat lifts and a tiki bar. All of this sits on 1.22 acre on beautiful Newfound Harbor.

At the lower end a 1600 sq ft home on the canal with 3 bedrooms 2 baths updated in 2005. Priced at $179,900.

These are both short sales!

Jim Bagwell

For the serious fisherman

Interesting how intelligent buyers are today, agents who do not recognize the facts are doomed to fail. A client was in my office the other day showing me the Wall Street Journal and the map of troubled real estate markets across the nation, now of course almost the entire coastline of Florida was in black which indicates trouble. For the good news, there was one white little square which was central Brevard County. I believe we can thank waterfront property for this anomaly. Basically there are very few areas which have the varied type of waterfront homes we have in Brevard.

The number of good buys are too numerous to focus on a few. With the exception of resale oceanfront condos of which the inventory is actually down, you can almost always find a home suited to your desires within your price range.

Our local paper over the weekend wrote that Sep marked the 4th month in a row that the number of resale homes in Brevard dropped however we were still above the 2007 & 2008 figures. The Wall Street Journal reported over the weekend that Home sales in Sep rose to a 2 year high and the inventory dropped to a 7.8 month worth which is the lowest in 2 ½ years. All of this equates to the fact that a buyer today can expect to pay 2002 price for a home today.

Pick of the day!

For the serious fisherman or woman, This home is located on a point of the east side of Merritt Island which means that you can go straight to the locks at the port and be offshore in the quickest time in all of Merritt Island. Home has 3 bedrooms 2 ½ baths and sits on .36 acre with great views of open water. Home also has a pool and spa with a 3 car garage and R/V boat space. Priced at $900,000.

Jim Bagwell
Broker

Brevard County Property Values

In the Real Estate section of our local paper there was an article saying how much the activity has picked up in Brevard County. This is true and in my opinion is due to the pricing of properties. A lot of home owners are seeing what the foreclosure process is doing to their property value and are pricing accordingly.

As of 6/29/09 in our MLS there are 533 bank or corporation owned properties. Some of the corporation owned properties are owned by the developer but most are owned by Freddie Mac, Fannie Mae or VA. There are also 1345 short sales in Brevard. So you see we have to work on getting these properties sold to really get the property values back to a positive posture.

Some of these properties are very interesting to be in foreclosure.

A 727 sq ft condo in Titusville priced at $9,900. This is not in good shape and not a very good location but for a rental property definitely possible.

A 3901 sq ft home on Merritt Island with pool and on the water with a short trip to open water, 4 bedrooms and 4 baths and priced at $719,900.

A 4 bedroom 3 bath ocean front penthouse in Satellite Beach with 3690 sq ft priced at $649,900. This is a good buy for this complex.

Short sale possibility

Remember that short sales can be frustrating but can be worth the wait!

A 3014 sq ft single family home with 3 bedrooms 2 baths and 2 ½ baths; this property is on the ocean on .35 acre. The HOA fees are $1647 per quarter but include structural insurance and lawn service. The only drawback to me is the location which is almost to Sebastian Inlet but for a 2nd getaway with great golf, fishing and surfing then this would be fantastic property.

Thanks

Jim Bagwell

Chinese drywall

I am sure most of you have heard of Chinese drywall, this drywall was shipped during the time period of 2002 to 2008. Testing of the affects is not as yet complete but there are things that we are sure about what this drywall causes in the property.

The drywall manufactured in China emits a sulfuric gas that will turn copper pipes black and can damage A/C coils. Some residents in the affected homes have complained of respiratory problems and dizziness. The health issues are not proved as yet but the FDA is working on the test right now.

Most of this drywall was used in Florida but the class action suit will be heard in New Orleans and contain cases from 3 states including Florida.

Now most people think that if your home wasn’t built in this time period you are safe but when you think of all the remodels and repair of water damage that have been completed in this time period then the possibility is still there in older homes.

We have already put an addendum in place that addresses this issue so if you are buying a property ask your agent to use it. To be safe ask for a complete seller’s property disclosure and ask your home inspector to check for the possibility of the presence of the drywall.

Seemingly good buy!

I have not been inside this home but it appears to be a good buy. Not a short sale or foreclosure, the home has 2115 sq ft with screened pool and is on a canal. Priced at $319,000 located in Diana Shores in central Merritt Island.

Just cover your bases in all transactions.

Jim Bagwell

Your own worst enemy

I have become very frustrated with agents who are still in the booming market frame of mind in a still down market.

Back in the day it was extremely rare to make an offer on a property and get an acceptance without a counter. There are still agents who feel they must have a counter when they get any offer on one of their listings. The fact of the matter is a lot of times the 1st offer will be your best offer and sometimes your only offer. Now what are they trying to do, maybe to say to their seller that they have worth but a lot of times they are hurting the very people they are hired to help.

The key to it all is to perform a very thorough market analysis and be very honest with your seller on what to expect. When you as an agent give your seller false hope on what their property is worth today you are contributing to the down market.

Always remember that as a seller or a buyer it is your call on what to offer and what to accept. Your agent is bound to follow your instructions; the agent is paid for their knowledge of the market and their skill of negotiation and to protect your interests always without fail. You should ask for your agent’s input but it is still your call.

Jim Bagwell