Condo Conversions are Hot!

Condo conversions or condominium conversions is the process of entitling an apartment or income property owned under one title and converting it  from sole ownership of the entire property into individually sold units as condominiums.  In the past two years many condo conversion developers have moved to backward conversions, stopping sales of condominiums and starting to rent these new homes as apartments again.

2009 Real Estate Year of Opportunities

This is the year of opportunities.  Buy low… sell high.  There are great buys in Miami, Florida and through out the US.  Builders and investors are selling their inventory at 50% off prices.  First time home buyers get a $8,000 tax credit from uncle sam if they buy and close this year.  I think we have hit bottom and landed and 2010 we will see prices starting to go up again.

Trends Toward Environmental Awareness Continue in Real Estate Industry

According to the “The Real Deal,” Cushman & Wakefield, a privately owned commercial real estate firm, has become the first real estate services firm in the U.S. to sign an agreement with the Environmental Protection Agency. The deal  outlines practices  that are designed to increase energy efficiency, promote water conservation, and lower waste and carbon footprints. The Cushman & Wakefield firm, which has been around since 1917, sets a precedent for other major firms to follow if they hope to truly claim “environmental friendliness” in their practices. It’s just another step towards the real estate industry’s movement towards “green building” and “environmental responsibility.”

The incoming presidential administration has made it clear that it will put forth green initiatives that will potentially help the environment and boost the economy. Within those initiatives there’s the issue of energy and renewable sources. Knowing that there is a possibility for real estate incentives to build homes that are “energy efficient,” developers are beginning to look at wind, solar, biofuel, and other energy sources to use as part of their home building process. This not only will be lucrative to the developers, but to the buyers as well, as there are more long-term savings in renewable energy than in fossil fuels.

In the mean time, the trend continues to be down a “green path” and the real estate industry is clearly beginning to adapt to this modern-day societal shift on environmental and energy-related issues. 2009 is a new year and only time will tell if the trend is effective and long-lasting. It would not be surprising to see more real estate firms and developers agreeing to deals like the Cushman & Wakefield agreement throughout this year. Many efforts will be taken to try and rejuvinate the ailing housing market and restore the real estate industry to solid standing.

South Florida Foreclosures are Hot!!!!!

Thousands of beach front, waterfront and garden style condominiums are currently in foreclosure in south Florida (Miami, Ft. Myers, Ft. Lauderdale, Naples, and West Palm Beach.  We represent builders that have left over inventory New Construction and Condo Conversions available for sale as bulk.  Prices start at $50,000 a unit.  If you are looking for Vulture Style real estate opportunities consider South Florida.

For more information on available inventory contact:

Alejandro Fernandez, MBA – CEO / Broker

1-888-815-1155

Florida Forclosures and the Holiday Season

With the holiday season quickly approaching, families are beginning to worry about more than just the gifts they will be buying for their loved ones. Many homeowners have now carried the burden of wondering if they will have a home for the holidays or if they will lose it to foreclosure. According to the Miami Herald, housing advocates are questioning whether lenders are living up to their promises of stopping foreclosures for the holidays or not. Despite the talks of a temporary moratorium to stop foreclosure, there are almost 950 set to foreclose in Miami for the month of December. Homeowners are becoming desperate for the moratoriums to become enacted while banks continue to talk with the state.

There is potential good news for homeowners and banks as the state of Florida recently recieved foreclosure assistance funds through the Housing and Economic Recovery Act (The Real Deal). A total of $11.5 million in funds have been provided and Gov. Charlie Christ looks forward to use that money for foreclosure prevention counseling and legal assistance. Hopefully, this federal assistance will help hold up the banks/lenders from foreclosing on homes, at least in the month of December, and keep families at home enjoying the holidays. Only time will tell what the final verdict will be on the foreclosure issue in Florida.

Going Green & What it Means to the Real-Estate Industry

With the rise in environmental awareness across all aspects of society, real estate has entered the realm of eco-friendly practices and “green” initiatives. Now that more people are realizing the effects of waste, pollution, and other factors on the environment, they have become fond of products and services that are “green certified.” It is the idea that one is both helping out the environment and establishing a more sustainable lifestyle that sways so many individuals towards becoming environmentally responsible. 

For the real estate industry, this means that more developers and homebuilders need to engage in environmentally-friendly building when it comes to all types of residences. Organizations, like the U.S. Green Building Council, are leading the way in creating a housing industry that keeps nature in mind when building homes for people. With LEED Certification, houses can be built based on standards that are in line with environmental organizations. While some argue that the initial cost of “green building” can be costly, approximately 2.5% than regular building, others argue that the resulting water savings and energy efficiency make it “economically worthwhile” (New York Times).

As more studies surface on the subject of “green building,” homeowners and developers will come to see the benefits and sacrifices that come along with buying/building “green” homes. We can expect more information to be released through mass media and more awareness to be created throughout large regions of the US. It would be no surprise if the housing industry progressively adapts to this trend and begins to satisfy the latest consumer demand: eco-friendly lifestyles.

References: http://greeninc.blogs.nytimes.com/2008/11/20/debating-the-green-building-premium/

Can Google Predict the Real Estate Market?

Can we find out what consumers are interested in by what they are searching for?

Google Trends (http://www.google.com/trends) allows the user to compare the volume of searches between a time period and region. Although, it may not be all that scientific I believe there is a lot we can learn.

It is as easy as inputting a keyword and Google Trends will graph its popularity as a search term for you since 2004. It’ll also break down its use by geographic location.

Here are a couple of examples:
Track the Elections? click here
Track the Flu? click here

So how accurate can it predict the real estate market? Based on Google’s results there seems to be a spike of people searching for the keyword “Real Estate” right at the end of the year. What does this mean? Well we can only assume that most people have some free time during the holidays and have some time to search for that house they will be looking for and maybe purchasing the next year.

We are currently in that lowest point on the search for “Real Estate”….will the trend spike this year? We can only wait and see, but it just might be the right time to do some extra marketing for your property.

The Direction of the Housing Industry – Up or Down?

With the constant news of the housing industry on every media outlet, homeowners and real-estate brokers continue to wonder when the market will stabilize. According to the Miami Herald, the mortgage rates and housing prices have fallen once again. Mortgage rates dropped for a third consecutive week – a direct result of the progressively weakening economy and its influence on the financial markets. As for housing prices, the median cost of a home dropped almost 17% from last year’s median cost. This was significantly higher than the nationwide median, which dropped only 9%. The culmination of these issues leads to more insecurity and worry on the part of those involved with the housing industry.

Here are links to some of the home prices throughout Florida:

• Single-Family Homes: http://media.miamiherald.com/smedia/2008/11/18/12/REL08Q3T.source.prod_affiliate.56.pdf
• Condos: http://media.miamiherald.com/smedia/2008/11/18/12/REL08Q3CT.source.prod_affiliate.56.pdf

While these issues are not a good sign of the direction of the market, it can be said that potential home buyers with solid financial security are experiencing the best time to purchase homes right now. Homes are reaching “rock bottom prices” and are leaving brokers and banks with the incentive to provide great deals to prospective homeowners. Many experts claim that stabilizing the housing industry is important to revitalizing the American financial markets. If this approach to fixing the economy becomes a trend, the incoming presidential administration may place their funding and support behind this problem before any other issue is dealt with.

Do Real Estate Auctions Work in this Market?

 

real estate auctions

Has the Home auction trend started?  Todays buyers are looking for the best deal and now that they can get it. 

Auction is the new “buzz” word in the real estate industry as market conditions require more intense marketing and specific timelines in order to sell properties quicker.  For Developers this can be a great alternative to turning a lot of inventory in a short period of time.  If you have tried the conventional methods of real estate sales and home inventory remains on the market, consider an auction.

Cayon Development sold 23 homes, at $123,990 each, for a total of over $2.85 Million in sales. Creative Mindworks provided consulting and marketing services to Canyon Development through a division of the company, known as Disposition Trust, LLC. This division assists builders, developers, banks, and other institutions in selling and marketing their real estate assets using the most effective strategies that maximize revenues in expedient fashion. 

 

Current Market Value
A real estate auction is the purest way to determine the current market value of your home. Once a competitive bidding environment has been created, buyers will bid up to what they are willing to pay. Auctions are attractive to buyers because they are always looking for the “deal”. However, competitive bidding will drive the price up. Sellers look to the Auction method when they are highly motivated to sell, wish to sell quickly because of circumstances or wish to liquidate to re-enter the market as buyers. Whenever a quick sale is desired, auctions should be considered.

Cost Considerations
Auction does not necessarily mean losing money. Consider what it cost to hold the property, (mortgage, maintenance, taxes and insurance) for say six (6) months vs. auctioning your home for slightly less right now. Consider the selling cost to sell it the conventional way, using a real estate brokerage (typically a 6% commission, repair costs, your closing cost and, in a buyer’s market as we are in today, the seller would most likely pay the buyer’s closing cost also). With auction, you may not pay any commission. More than likely, you, as the seller, will pay the expense of marketing your property and your selling cost would consist of only your closing costs.

No Contingencies
Auctioned properties are generally sold, “as is,” and without any contingencies, such as inspections which can result in repairs the seller would be expected to pay for. “As is” does not mean you do not have to disclose all things known about the property to the buyer. In fact, the buyer should get inspections and/or appraisals before the auction in order to know what he/she is buying, “as-is.” Since there are no contingencies, including the buyer’s ability to get financing, usually auctions close within 30 days with cash or financing already in place. Auctions bring “ready” buyers

The Current State of Real-Estate Foreclosure

The current housing market in the US faces serious issues with the continued growth in foreclosure rates across the nation. The foreclosure crisis has steadily increased over the last year, reaching rates that are more than 70% greater than the previous year’s state. It has become a major focus in the private sector as well as the public sector, with reators looking for solutions and the government attempting to bring assistance to the crisis.

The Federal Depertment of Treasury originally stated that it would use part of the $700 Billion bailout plan to purchase troubled assets from banks across the country. Now, Treasury Secretary, Henry Paulson, has stated that such an endeavor would take too long and allow the current situation to worsen. As an alternative, the Treasury wants to buy stakes in the banks in order to promote regular lending practices and prevent a credit crunch in the housing market.

Florida is currently preparing to recieve over $160 million in federal grant aid to stimulate the housing market. This should help stunt the recent spike in foreclosures in counties, like Miami-Dade and Broward, where rates ranged from a 9% increase (Broward) to a 159% increase (Miami-Dade). With Florida having two cities in the nation’s top foreclosure list, in Miami and Orlando, there is hope that this aid will help aleviate the recent struggles felt throughout the state.