"Should 5% appear too small"

"Be thankful I don't take it all"

Forgive my digression, my wife and I went to a “Classic Concert” featuring Beatle music and brought back all kind of memories. If you get a chance go see this show it is great.

You have heard me talk about Space Talk which is a forum that all our agents get a chance to speak about current happenings or ask for help. Recently we have had an influx of agents speaking about simultaneous closings which involves an investor buying a short sale and reselling the property instantly to another buyer at a profit to the investor. The second buyer was found while the short sale process was ongoing. These agents are screaming fraud which is totally ludicrous since these very same agents were buying pre-construction properties not that long ago and selling the same day at a nice profit.

The only way to recover this market is that there are people who have some money and want to make more money; hence you invest for a return on your money.

At the present time there are 58 short sales in Merritt Island alone, some of these are very good deals if you can get them at list price. The short sales are priced from $69,900 to $950,000; one of these is a 2 story pool home on Sykes Creek with almost 3000 sq ft. This home was purchased for $815,000 and is now on the market for $659,000.

The deals are there and there are buyers who sold at the right time and haven’t owned in the last 3 years which makes them eligible for the 1st time home buyer $8000 tax credit so it may be time to jump back in the game.

Jim Bagwell

"Money can't buy me love"

photo courtesy of Don Hoover since my camera failed.


But it can buy a great property in Brevard County especially if you are a 1st time home buyer. If you haven’t owned a home in the last 3 years you can qualify as a 1st time home buyer. With this in place you can get an $8000 tax credit and this time it is not a loan, at tax time this credit can go toward your refund or reduce tax payment. One of the best parts of this deal is you can use this credit as a bridge loan for down payment and repay at tax time with your credit.

When you add this to the fact that the 1st quarter of 2009 had the biggest drop in property values since the downturn began and puts us at 2002 prices, it is a great time for the buyer and especially the 1st time home buyer. The last 2 months has seen a slight uptick in property value so we may be finally leveling out in prices.

If you are a 1st time buyer and are considering buying a home then you should go to a lender now and get a pre-approval and be ready to go when you find a home. It is now possible to buy a $150,000 home and have a monthly payment of around $1000 including taxes and insurance so now you can say it could be cheaper to own than rent. With a price of $150,000 the choices are endless and you can pick the home will fit your needs.

Now usually we specialize in waterfront homes but it is indeed an exciting time for 1st time home buyers so we have expanded our market. Sunset lakes is a nice gated community in North Merritt Island and there are numerous short sales starting at $162,500 now remember don’t be in a hurry if you are dealing with a short sale. There is a canal front home in Merritt Island priced at $178,200, this home has been stripped by the owner in preparation of renovation but it has now been foreclosed. This would be an excellent opportunity to use the FHA 203B loan and get renovation costs built in the mortgage.

Give us a call today!

Jim Bagwell
Broker

"You gotta stop and look around"

"19th nervous breakdown" the everloving Stones

It has been awhile since I have posted and for that I apologize.

We have seen a very dramatic increase of activity in all markets but especially in single family homes. Condos are still a challenge but can still be obtained with diligence in financing.

The best advice I can give you is to really contemplate on what you want in a property and what price you can live with and then obtain a good buyer’s agent. A lot of buyers still think they can get a better deal if they work through the listing agent. This couldn’t be further from the truth, in Florida we are assumed to transaction brokers which means if we know what the seller will take for the property we are not allowed to share this information. However if you have a buyer’s agent they can still function as a single agent for you the buyer and any information gathered can be shared with the client. One exception of this is that if it is the agent’s listing then the agent has to convert to a transaction broker which is after all very fair.

Another misconception is this will cost the buyer to have a agent, typically the commission is paid by the seller and disbursed at closing. The upside is you have an agent working for you to find a property that you would desire, a automatic search can be built to notify you of anything in your price range with the amenities you desire emailed to you everyday until you hit upon the property. You may encounter a situation where your agent can find a “for sale by owner” and then they may ask you to pay commission, you could still very well win in that the property may be priced less than market value.

The opportunities are endless with canal homes now below 300K and the list goes on and on. We are still making a lot of short sale offers and they can be a great deal, keep in mind you have to patient to make it work, let your agent work for you.

Hope this helps and remember to hydrate!

Jim Bagwell

Merritt Island canal homes

Merritt Island Canal homes

We did find one thing that is not exactly shocking but it did narrow our search. There is only one canal home on Merritt Island that is priced under $300,000 and offers 2000 sq ft. That one is a short sale; the water is not that good and it needs work. The home is priced at $249,999.

Now when we reached $300,000 to the mid 300’s we found good sized homes and some are in good shape. If you price your listings by sq ft dollar, this makes perfect sense.

Our listing at 1745 Basin st. has been reduced to $369,000. The best part about this home is that it has been renovated from the studs out to paint including wiring and plumbing. This is a benefit that you will only find in a couple of homes on the canals unless they have been torn down and built new but then of course you will pay a premium at new home prices.

If you would like to see pictures of this home, just email me at walkerbagwell@aol.com and I will email you the link.


Thank you

Jim Bagwell

"We're so sorry uncle Albert"

You got to love the Beatles!


I did receive a negative reply from my last post on contracting out short sales. I can only assume it was from one of my Realtor peers. For the record I am not questioning anyone’s sincerity or ethics in this practice. My point is that the short sale process almost always turns out to be a very personal and emotional transaction for the seller. The most important part of the transaction is the initial meeting between the seller and the listing agent. The listing agent must at that time offer all alternatives to the seller and inform the seller what is expected of them to complete the transaction. Although foreclosure, bankrupts and short sales are much more common than most of us have ever seen, it still is a bitter pill to swallow. There are many of us that have never been in financial situations that we see at the present time and this makes for a very stressful time for everyone. This is the only reason I personally feel that contracting out short sales is not the most efficient method to handle the transaction but if the listing agent is totally uncomfortable or unwilling to put in the hours necessary for this type transaction then definitely find someone to help you and bring them in from the onset of the transaction. I hope this clarifies my position and I apologize if I offended anyone.

We are in the process of showing canal homes in Merritt Island that can be purchased around or under the $300,000 range. I will share our showings on the next post.

Jim Bagwell

"Its been a hard day's night"

Recently I have seen agents advertise to other agents to handle short sales for a fee. Obviously experience is not a prerequisite since I have seen that some of the people offering have never completed a short sale. There are many agents that would never have considered being involved in the process because it is so time intensive with no guarantee of commission. Now that it is evident that there are so many short sales on the market that it is unrealistic to exclude these properties and still serve their buyers, they are coming around to the facts of the market.

With a small company of 18 agents, we are now in negotiation of 12 short sale contracts. This requires a staff and commitment from the entire team to bring these offers to fruition. It seems rather corny but it does bring a bit of satisfaction to get people out of a tight spot and on the other hand get buyers with patience a very good deal in a down market. We have seen more satisfaction from sellers who got the 3000 lb gorilla off their back than we have seen in good times with sellers walking with a couple of 100 grand.

I was looking to show some of my favorite listings that are priced right but the numbers are staggering. If you are looking to live on the water or not on the water then there is a price for you.

If it is a short sale just remember to be patient and keep looking once you have put in an offer on a short sale. Remember if you don’t have approval from the lender you are not committed.

Merritt Island Foreclosure News

The good news is that if you are looking for a deal through a foreclosure or a short sale, the time couldn't get much better!

Florida has now moved into the number 2 position nationwide in the number of foreclosures. The top four states are 1. Nevada 2. Florida 3. Arizona 4. California. These states account for over 25% of the nation’s foreclosed properties. As a result these states will receive the bulk of the 100 billion in foreclosure bail out money, I wish I could shed some light on how this money will be used but I have no clue. Now these numbers don’t include short sales and a lot of these are in the foreclosure process.

I believe you will see the banks move to get to be more cooperative in closing these properties and get them off the books. At least we want to believe this in order to make our lives a little easier. At the present time we have 8 contracts in negotiation for short sales. It involves a whole lot of work especially for the listing agent. In no way do we represent the lender in the short sale process we represent the buyer, seller or both. However the lenders can be the biggest obstacle in this process. Look for an experienced agent!

My favorite properties in the foreclosed world of Brevard County.

An 1800 sq ft home in Viera priced at $169,900. This home has 4 bedrooms and 2 baths with a 2 car garage. Home was built in 1997 and features vaulted ceilings.

A home with over 2500 sq ft located in beautiful Villa De Palmas on a deep water canal that will accommodate up to a 40’ boat. This is a pool home with 4 bedrooms 2 ½ baths. This home was originally listed for $629,000 and is now on the market for $549,000.

Thanks

Jim Bagwell