Updates

Sarasota Real Estate Market Update

By | October 23, 2012

The Sarasota Association of Realtors just released the sales statistics for the month of September showing that members sold 648 properties in September 2012, up almost 14 percent from last September, when only 570 transactions were closed. The figure was down almost 21 percent from the 819 sales in
August 2012, continuing the historic trends that normally show a sales lull in the early autumn.

The category totals were 500 single family homes and 148 condos sold, compared to last September when only 430 single family and 140 condos were sold. This summer was an exceptional one for local Realtors® who normally have a respite after the spring season. This year, traffic at open houses has been heavy and multiple offers on available properties have become the norm. Part of the reason for this has been the continuing decline in the inventory of available properties on the market.

Click Here to view the full report.

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Sarasota Association of Realtors Reports Home Sales in Second Quarter at Highest Level since 2005

By | July 18, 2012

The market statistics have just been released by the Sarasota Association of Realtors. Here’s what the indications are. With 864 closed sales transactions in June 2012, the Sarasota real estate market achieved the highest level of quarterly sales in seven years, with 2,604 sales from April through June. The 864 closed transactions in June was also the second highest total since September 2005, yet another indication of a market that is achieving sales totals not seen since the 2003-2005 real estate surge.

The totals for June were 603 single family homes and 261 condominiums, for the combined 864 closed transactions. Sales were 18.7 percent higher than in June 2011, when there were 728 closed transactions. The June sales almost reached the April 2012 figure of 886, which was the highest total in seven years. The normal seasonal influx of buyers tends to drop shortly after the Easter holiday, but this year the higher sales appear to be continuing into the summer.

However, pending sales (which represent properties that went under contract during the month) did decrease in June, dropping to 860 after four straight months that topped 1,000. Pending sales are a major indicator of the future market sales totals. Last year the pending sales also retreated, from 841 in May to 754 in June, and this meant the spring surge finally did slow down in July. The current numbers seem to indicate there remains strength in the market dynamics through the middle of the summer.

Click here for the full press release and statistical charts.

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It’s A Great Time To Buy! The Basics of Supply and Demand in Sarasota

By | July 17, 2012

We get asked a lot, “When is the best time to buy a home here in Sarasota?” Well here is the answer… Based on historical data, the best months to typically get a better deal on a home is between July and October. Those are the months when we have the lightest Buyer traffic and when properties tend to sit on the market a little longer than usual. The old supply and demand law kicks in when we have fewer Buyers and more listings. In these times, there will be more Sellers who will be anxious to sell and can be found to make a better deal for the Buyer than if we were in the middle of our busier selling season. Common sense, I know, but an important piece of information. The data from Credit Suisse also shows our prices can typically be lower during those months. Come down to Sarasota and buy during the summer months! –Joe Cleary

Credit Suisse Historical Trends July 2012
(Information and research analysis is from Credit Suisse. Credit Suisse surveys real estate agents across the country each month about trends in buyer traffic levels, home prices, incentives, inventory levels, and the length of time needed to sell a home. In June, Credit Suisse received responses from 900 real estate agents across the country.)

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Three Types Of Lending For Investors

By | February 15, 2012

One of the most important aspects to investing in real estate is how you finance your property. Although all other factors may look favorable, having no or little access to good terms could be a deal breaker. Therefore, before doing anything else, it is important that you begin to line up some potential sources and explore what options are available to you.

There are various ways to start investing in homes, and each source has its own set of strengths and weaknesses. Your exit strategy, the condition of the property and various other factors will play a part in how you may be able to finance each specific investment. So let’s explore 3 of these top sources:

Traditional Financing

If one of your strategies is to buy, hold and rent, then using banks may be a safe bet for some of your investment properties. This is a source that can be considered up front when a property is in considerably good condition. Most banks will not support the financing of a fixer upper until repairs are completed, due to the amount of risk involved.

Therefore, you may need to spend a little extra time searching for those diamonds in the rough. Traditional financing is extremely favorable, because you can usually get some of the best interest rates, terms and closing costs when approved. The process certainly will take longer than using cash buyers or hard money lending for example, but it can be worth the wait.

Hard Money Lenders

For those who will either be flipping a property or would need to conduct significant repairs in order to refinance may want to consider building a relationship with a hard money lender. It is advisable to shop around to at least 2 or 3 in your area when possible to see which terms you find to be most favorable.

These loans will come with much higher interest rates (typically 12% or more), points and some type of balloon payment near the end of the agreement. Hard money may be offered for 6 months to a year while the repairs are made, until the home is ready to be sold or refinanced for better rates.

It is important that investors are prepared to either rent out or lease-to-own their property if perhaps the home is unable to sell on the market quickly enough. Also, newbie investors beware! Flipping houses can be more difficult that it may seem, and you must have a solid plan in place so that you are not forced into a tight financial situation.

Private Lending

Before ever considering this option, it is strongly encouraged that you talk with a local attorney that specializes in SEC policies. Laws can vary on a state by state basis, so it is important that you have a good understand of those guidelines before building any relationships with private lenders.
However, when done correctly this can be a powerful resource available to you, that doesn’t require credit checks or adhering to all the strict guidelines enforced on mortgage companies. Private lenders can be nearly anyone who has access to the necessary funds for your purchase (i.e. your doctor, friends, family, or investor club).

Typically private lenders can receive anywhere from around 9% and up for their investment, which is secured by the property and can be a great investment for them based on today’s rates. Loans can be negotiated on a property by property basis so that each investor only funds the deals that they are comfortable with.

With these 3 examples alone, you may have all that is needed to start funding real estate deals. Therefore, take action now and begin building the relationships and networks of lenders that you will need in order to start investing.

Are you in need of referrals? Contact us today to access a list of preferred lenders that we will recommend for your investment business.

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Lakewood Ranch Ranks #9 in Top Selling Master-Planned Communities in the US

By | February 9, 2012

Nothing is so fine as being number nine!

Lakewood Ranch has just been ranked as the ninth best selling master-planned community in the United States!

The California-based John Burns Consulting has ranked Lakewood Ranch in the top 10 selling master-planned communities in the United States, with 391 new home sales in 2011.

Coming in at number 9, Lakewood Ranch outpaced many other well-established and iconic communities such as Stapleton in Denver, Summerlin in Las Vegas and more.

With the new sports campus, new commercial construction this year totaling upwards of $150 million, and new rental projects springing up, Lakewood Ranch has become the premier new-home destination on Florida’s West Coast!

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Mortgage Rates Set Record Lows

By | October 11, 2011

Freddie Mac released its Primary Mortgage Market Survey for the week of September 26-September 30 this morning. They found that mortgage rates set new record lows for the 5th straight week last week.

The average rate on a 30-year fixed-rate mortgage fell from 4.01% to 3.94%. 15-year fixed rates fell from 3.28% to 3.26%, while 5/1 year ARMs dropped six basis points to 2.96%. The one year ARM actually rose from 2.83% to 2.95%.

Although rates have risen slightly since this survey, they are still hovering right around record lows. The prospect of a technical double dip recession in the United States and the threat of a Greek default has caused investors to seek shelter in Treasury bonds and mortgage-backed securities, driving interest rates to record lows.

If you’ve been thinking about purchasing a new home or refinancing your current mortgage, now could be the time to do so. Fairway Funding Group has some of the lowest rates in the mortgage industry, consistently beating the national average. To find out more about our products and low rates, call us today at 941-993-8086.

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Sarasota Real Estate Market Remains Stable

By | September 22, 2011

The Sarasota Association of Realtors reports that “a steady drop in property inventory for sale, combined with a stable sales demand in the Sarasota real estate market, is pointing toward normal, healthy property appreciation in the coming months.”

 

To view the full report with market statistics click here.

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Market Survey Shows Falling Mortgage Rates

By | September 15, 2011

For the second time in as many weeks, the rate on the 30-year fixed rate mortgage, the most common type of mortgage in the United States, has hit record lows according to Freddie Mac’s Primary Mortgage Market Survey.

The average contract rate on a 30-year FRM fell to 4.09%, down from 4.12% the week prior. The average rate on a 15-year fixed rate mortgage fell from 3.33% to 3.30%, while 5/1 ARMs rose slightly, from 2.96% to 2.99%. One-year ARMs dropped from 2.84% to 2.81%.

Mortgage rates have been falling as a result of rallies in the treasury and mortgage-backed securities market. These rallies were spurred by poor economic data in the United States and the possibility of an economic conflagration in Europe prompted by a possible Greek default. The possibility (or maybe even inevitability) of a Greek default would damage the major Euro-banks, which have huge exposure to Greece.

If you’ve been thinking about purchasing a new home or refinancing your current mortgage, now could be the time to do so. Fairway Funding Group has some of the lowest rates in the mortgage industry, consistently beating the national average. To find out more about our products and low rates, call us today at 941-993-8086.

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Ten Tax Tips for Individuals Selling Their Home

By | August 23, 2011

The IRS recently released a publication titled “Ten Tax Tips for Individuals Selling Their Home”.

If you are thinking about selling your home, this is some good information directly from the IRS concerning the gain or loss on the sale, first-time homebuyer credit and change of address.

To view the publication please visit: http://www.irs.gov/newsroom/article/0,,id=243682,00.html

 

 

 

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Foreclosure and Short Sale Alternatives

By | April 27, 2010

There are several options you can pursue when you’re behind on your mortgage and you want to stay in the house. An attorney can help you work through most of these solutions.

Reinstatement – If the reason you’ve missed your payments was temporary and you’re now able to continue paying your mortgage, you may be able to reinstate your mortgage. You’ll probably have to pay all missed fees, late fees, and legal fees due up to the date that you reinstate.

Forebearance If you’d like to reinstate your mortgage but the one-time payment is too high, there is a chance that the lender will allow you to negotiate a repayment plan, or forbearance. The lender will allow you to pay your debt over a specific period of time or will tack the extra debt onto the end of the mortgage.

Rent The PropertyIn some cases a homeowner will have payments low enough to allow him/her to rent the property and pay the excess mortgage payment out-of-pocket.

Refinance – If you have sufficent equity and income, and your credit hasn’t taken too large a hit, you may be able to refinance to a lower rate or better terms – or get enough cash out to cover payments for a while.

Mortgage Modification – In cases where homeowners do have the means to afford their payments, or a payment close to their payment, lenders may qualify the borrower for a mortgage modification.

Short-Refi – The relatively new phenomenon shows just how far some morgage companies are willing to go to avoid foreclosing on properties. This process involves the refinance of a home with reduction in the principal balance and often the interest rate as well. While relatively rare, and attorney can help you negotiate a short-refi.

Deed-in-Lieu – Often called a “friendly foreclosure,” deed-in-lieu occurs when the homeowner gives his deed back to the bank. In exchange for a non-contested repossession the banks will often give up the right to a deficiency judgement; however, in most cases a short sale is more beneficial to the homeowner.  It is still a form of foreclosure and will affect your credit as such.

Bankruptcy – Bankruptcy may allow the homeowner to reorganize his debt and keep his property. An attorney can help you with a bankruptcy.

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