Allison Stewart BROKER/ASSOC/REALTOR ®St. Cloud Florida

Let me pull a rabbit out of my hat

Is your deal on solid footings? Or is the foundation crumbling down? Sometimes we think is the deal is standing on solid ground, only to discover underwriters have us in a sink hole. PUTTING YOUR FOOT DOWN ON A PILE OF EMPTY PROMISES MAKES A THUD NOT A STATEMENT.

All loan commitments have conditions but how many times do Realtors actually get a copy of them? Not often enough or sometimes not at all. ASK FOR THEM.

Borrowers and their Agents will both need a copy of the Conditions of Loan Approval since we have been told that "All loans have them"

Everyone is aware of the scrutiny lenders are under as a result of the Housing Crisis. However, Buyers are willing and trying to buy homes. You've all heard grumbling about the HVCC, which affects Conventional Loans. FHA/VA financing if you ask most lenders is easier in comparison to obtain. But not necessarily.

THE COST OF BORROWING MONEY

Loan Officers like Realtors® work on a commission basis.

Loan Applicants will pay a fee to borrow money. In addition, they will also pay for

1) Appraisal

2) Survey

3) Title Insurance

4) Inspections

a) Home Inspections

b) Four Point Inspections

c) Termite Inspections

d )Structural Inspections (if needed)

e) Re-Inspections

f) Second Appraisals

g) Repairs (in As-Is)

h) Antacids

i) Aspirin

j) Unlimited cell phone minutes

Multiple re-inspections can be expected if something comes up which may cause a lender to have "concerns". The borrower will have to pay for these a second or third time. The Realtor usually ends up arranging them.

WATCH FOR SUBJECTIVE TERMS

"Satisfactory Inspection"

sat⋅is⋅fac⋅to⋅ry according to Dictionary.com is defined as follows:

   /ˌsætɪsˈfæktəri, -ˈfæktri/ Show Spelled Pronunciation [sat-is-fak-tuh-ree, -fak-tree] Show IPA Use Satisfactory in a Sentence See web results for Satisfactory See images of Satisfactory -adjective

Synonyms:
1. competent, adequate, suitable, passable.

Satisfaction is Subjective

Apparently the word Subjective is of equal importance

sub⋅jec⋅tive

   /səbˈdʒɛktɪv/ Show Spelled Pronunciation [suhb-jek-tiv] Show IPA Use subjective in a Sentence See web results for subjective See images of subjective -adjective

DOCUMENT DOCUMENT DOCUMENT-

LET ME PULL A RABBIT OUT OF MY HAT... In the end, it will be the REALTOR® who will have to pull a rabbit out of their hat in obtaining experts to dispute last minute lender objections.

SO PULL UP YOUR SLEEVES

These requests can and usually do come late on a Friday afternoon at the end of the business day just before the loan is supposed to fund for closing.

YOUR CUSTOMERS DEPEND ON YOU TO OVERCOME LAST MINUTE OBSTACLES TO CLOSE.

Even when your bag may appear empty..what you pull out of it can surprise you!

HAVE YOU PULLED A HAT TRICK LATELY?

ST.CLOUD FLORIDA'S HOME MARKET AND WEATHER ARE BOTH HOT. The weather maybe cooling down in other parts of the United States and Europe, but here in St. Cloud, Florida not only is the weather at all time highs so are the home sales.

Market Conditions in the St. Cloud Florida area are favorable. The number of sales are rising, and prices are still favorable for buyer looking to cash in on the current economic climate. Increases in Eurpoean home buyers is up again as well. Buying long distance is not only possible, it is easy and more common than you may think.

LONG DISTANCE BUYERS SELECTING THE RIGHT REALTOR®

The majority of buyers I have been working with are Long Distance Buyers. Why are they choosing to work with me? It could be they found me on the Internet, it might be that they read my bio and know I was educated at the United Nations International School, or perhaps they have selected me, because they know I am an area expert and working with long distance buyers looking the in the St. Cloud, Florida area.

USING TECHNOLOGY TO BUY HOMES IN ST. CLOUD, FLORIDA

Finding the perfect home Long Distance is really not that difficult. It makes no difference if you are across the country or across the globe. Thanks to technology. We have photos and video tours as well as virtual tours which make the process of selecting very simple. We are able to zoom in on specific area and buyers can actually see the communities the home is located in from a "Bird's eye view " or aerial view.

Once you have selected the home you wish to Purchase, which meets your needs of location, price and amenties, arranging to get the paperwork to you can also be done electronically.

WHAT MAKES A CONTRACT VALID?

Purchase agreements used here in Florida are prepared by Attorney's in conjunction with the Florida Realtor's Association. They specifically address issues which may arise in wiriting and are clear and easy to understand.

CAN I HAVE A LAWYER REVIEW MY OFFER BEFORE I SIGN?

YES! Absolutely. You will need a Real Estate Attorney.

A Purchase agreement will have your name, the address of the property, and parcel number as well as a street address and the county in which the property is located for example in St. Cloud Florida it is Osceola County.

It will state the amount, the deposit (which is typcially held by Title Companies) financing, or balance due at closing, and time for acceptance and a closing date. (Closing is when the property will transfer to you)

If there is a Homeowners Association, there will also be an attached document making you aware of that fact, and indicating the amount of dues which are to paid and in what time frame. Annual, or monthly.

You will initial each page of the purchase agreement to validate that you have read it. You will sign the offer and date the offer, and it will be submitted to the seller for a review. The seller has 3 options.

1) Accept your offer and will sign and date it

2) Reject your offer .

3) Counter Offer. They are negotiating what they want with you.

TITLE WORK

All property changing hands in Florida must have a marketable title. a Title search checks for debts owed against the property, and also a history of the property which dates back as far as 30 years. It must be free of all liens and able to be transfered at the time of closing. Taxes are pro-rated, and buyers will receive in advance a copy of all the costs involved in the purchase of the property.

WIRE TRANSFERS

INTERNATIONAL BUYERS MUST BE PREPARED FOR TIME DELAYS IN TRANSFERING FUNDS.

PLEASE ALLOW 1-2 DAYS FOR THE FUNDS TO CLEAR THE ROUTING CHANNELS WHEN MAKING AN INTERNATIONAL PURCHASE OF A HOME IN FLORIDA OR ANYWHERE IN THE UNITED STATES.

REALTORS® ARE LICENSED BY THE STATE IN WHICH THEY ARE WORKING. THEY HAVE HAD BACKGROUND CHECKS AND ABIDE BY A SET OF STANDARDS OF PRACTICE WHICH PROTECTS YOU THE BUYER.

HELPFUL LINKS-

St. Cloud, Florida

OSCEOLA COUNTY SCHOOLS

St. Cloud Florida Library

PARKS AND RECREATION In ST. CLOUD FLORIDA

BUYING A HOUSE ISN'T EASY THESE DAYS neither is selling one. Think the process is frustrating in the beginning stages, it can be a frenzy in the final stages before closing. Lender financed loans certainly have their fair share of obstacles to overcome. Like revised appraisal practices which have an impact on your ability to buy or sell.

STRESS CAUSING FACTORS

TIMING: also called BEAT THE BANK

Short sale properties have a drop dead date once the lender agrees to release their lien against the house and take less than is owed.

These properties often are in the throws of foreclosure.]

These drop dead closing dates and of late specific times (the money must be received by) can be very stressful to buyers who rely on wire transfers which can be delayed in processing.

Or who are traveling considerable distances to come and close in person.

SOLUTION: WIRE THE FUNDS AHEAD OF YOUR ARRIVAL AND ASK FOR THE PAPERWORK TO BE SENT IN ADVANCE. IF YOU ARE DELAYED AT AN AIRPORT, MOST HAVE A BUSINESS CENTER YOU CAN FAX YOUR SIGNED COPIES OF CLOSING DOCS FROM.

FINANCING:

Congratulations Your loan has been APPROVED, except for a few small last minute details.... this call generally comes at 5PM on Friday.

OH Boy, get out your tennis shoes this usually means the race to finish has begun.

We need to get a few things fixed....

Having a list of reliable home repairs specialists, termite treatment companies, electricians, and local appliance stores who deliver can be a tremendous help.

"As-Is"

Homes sold "As-Is" May need some repair. The seller is NOT going to make them.

If passing inspection for VA or FHA financing is dependant on appliances being in place-

SOLUTION: Be prepared to buy them.

Buyers should have some funds in cash reserves for things that pop up keeping you from closing on your home. Becareful not to do too much the home is not yet yours.

APPRAISALS:

In case you missed it, there have been radical changes made in apprasial practices. This impacts buyers and sellers of homes equally, but specifically buyers who are not planning to use the home they wish to purchase as their PRIMARY RESIDENCE. They are usually financed through conventional mortgages,

Apprasiers are no longer allowed to ask mortgage officers for comparable properties, nor are they allowed to ask REALTORS®. As a result, these out of area appraisers have little to no knowledge of the area or communities theyare appraising and are often tens of thousands of dollars off in their valuation. Not all communities or homes are the same.

SOLUTION: REQUEST A FIELD REVIEW

If you are willing to dispute the Apprasial and pay for another one to be performed- you may discover the first one was comparing apples to oranges. Do your own homework and learn what has sold and for how much. This can p[ossibiliy help you in the planning of your purchase and satisfactory appraisal later. REALTORS do what is called a CMA which is NOT an appraisal, it is however a snapshot of market conditions in any particular area. Comparable Market Analysis is very helpful when pricing a home for sale or making an offer on one that is for sale. Protection you will not over pay, but pay fair market value.

BUYING OR SELLING A HOME CAN BE VERY STRESSFUL

BUT WITH PROPER PLANNING AND SOME QUICK ACTION TO RESOLVE LAST MINUTE ISSUES...IT IS POSSIBLE TO GET THE DEAL DONE.

TENACITY, DETERMINATION AND PERSERVERANCE CAN AND DO PAY OFF.

FIND SOMEONE YOU TRUST WHO WILL GIVE NOTHING LESS THAN 110%

Allison Stewart, Licensed Real Estate Broker Associate Serving Osceola County, Florida... making dreams come true one home at a time.

The process of buying a home has become slightly more complex in the past year. Granted there are still some straight forward transactions out there. Those are the ones which offer the most appeal and you are able to negotiate directly without long waits and bureaucratic red tape.

Presenting a good clean offer, that is likely to be accepted is a relatively easy process. But who's advice is good advice? Your Realtor®, your banker? Your significant other? Your family or friends? Or a combination of all of them-each with pen in hand making "corrections" along the way or after the fact?

"NO HOUSE FOR YOU" A while back a gentleman was attempting to purchase a rather large home for a rather low price. There were not many that fit his special spacial needs and his budget. After a long diligent search we finally located one that he really liked. We talked at length about the offer he wished to make and one was written up and faxed to him to sign. Simple enough right? Maybe not...

Two days later, the offer is faxed back to his Buyer's Agent, and handwritten in various spaces were alterations to original document. Suddenly we had an offer that had absolutely no possibility of being accepted. The purchase price had been reduced, the Maximum repairs had been added, Replacement costs were set at the maximum allowable limit, and the closing date had been pushed back by 2 months in additiona he asked for a closing cost contribution from the seller.

He had a "friend" who was an out of area Real Estate Broker- looking out for his "best interest".

In the Special Section of Rider's and Addenda, there was a handwritten notation. THIS IS THE BEST OFFER.

It took the listing agent less than fifteen minutes to send the Buyer's Agent the following Email.

"Your offer was far inferior to the many offers we have received on this Property.

Thank you for indicating it was your "best Offer", as such it has been rejected by the seller."

The following day, the house went to pending and was sold in less than 30 days for above asking price.

His friend assured him "there would be others". Unfortunately, in the buyers price range...his friend was mistaken.

The man was horribly disappointed with the outcome.

He never did get a home.

THERE IS A TIME FOR TALKING AND A TIME FOR WRITING

Prior to writing the offer, is the time to talk to your Real Estate Professional. They should explain to you the various aspects of the Purchase Agreement, and discuss with you how to fortify your offer. A good solid offer allows for dialog and a meeting of the minds.

This is best done face to face. In certain circumstances it is not possible to do that (in cases of out of State buyers or sellers) A telephone conference can accomplish the same thing.

Buyers or Sellers who are serious about buying a home, or selling one, will want to make well informed decisions on several factors.

Purchase Price

Terms and Conditions (such as a Home Inspection, financing approval and appraisal)

Closing Date and Escrow Deposit Amount as well as where the Escrow will be held until closing.

LETTERS OF PRE-APPROVAL WITH CONDITIONS.

SOME LENDERS HAVE CERTAIN REQUIREMENTS WHICH MUST BE MEANT TO SATISFY THE LOAN COMITMENT THEY CAN BE ATTACHED TO THE OFFER TO PROTECT THE BUYER. By attaching the conditions of the Pre-Approval to the Purchase Agreement, it can become part of the Purchase Agreement. Often these will protect the buyer as well as the Lender.

BE REASONABLE IN YOUR EXPECTATIONS

Negotiations involve a little give and take on both sides. The goal is to reach an agreement that is fair to both parties and ends in a successful transaction.

ITEMS THAT ARE IMPORTANT:

SATISFACTORY HOME INSPECTION

SATISFACTORY TERMITE INSPECTION

SATISFACTORY APPRAISAL

REPAIRS (SHOULD BE NEGOTIABLE)

REALTORS® ARE THERE TO AID AND ASSIST YOU IN HAVING A SUCCESSFUL TRANSACTION.

IT HAS BEEN SAID, THAT HINDSIGHT IS 20/20. What is obsure in the present, becomes clear in the past. How many people will regret in the future the opportunities they missed in the present? We can all recall stories of relatives who purchased their homes for ridiculous amounts of money. The $14,000 bi-level on Long Island for example they bought back in 1971. We sat in utter and complete amazement envious at the time, knowing those opportunities were indeed retrospective. Or are they?

Yes, we live in tumultous times. There is a great deal of uncertainty amidst the promise of change. There are record high job losses, and cause for trepidation among consumers fearful their paychecks could abruptly stop leaving them listless. But, there are a greater number of people who recognize that the current economy is a portal to securing future economic wealth. They are accutely aware that only constant is change.

The one constant that will remain unchanged is the basic need for housing. How much or how little is determined by the economy. But the basic need will never change. In robust times, the desire for larger homes abound. In lean times, the viable alternative is to seek smaller more economically efficient and durable housing. As such the demand for smaller homes continues to rise.

As consumers continue to tighten their belts, they are changing their perspective as well on what type of home will best fit their budget and needs. They are turning in large numbers to smaller, less expensive and more fuel efficient homes as a result of higher costs both in property taxes and fuel costs.

Older homes have now become more popular as a result of these changes of awareness and consumer perspective on spending. In communities like St. Cloud, Florida there are a significant number of older, historic homes dating back to the early 1900's. During the economic boom many were forsaken in favor of larger, better appointed, new homes which were built in abundance between 2005-2007. These homes now have lesser appeal due to the architectual design than they once did.

Vaulted ceilings for example, are least fuel efficient. Many consumers are turning away from them , realizing that as electricity costs continue to rise, so does the heat towards the ceiling and cooling them in sultry Florida heat and humidty is much more costly.

They are also scrutinizing the additional fees in new communities. No only in most cases are there Home Owner Association Fees, there are Community District Development Fees (CDD) which are in fact 20 year bonds put in place by the builders to offset the cost of ammenties such as club houses, community pools, and playgrounds which increase property taxes on homes in these developments.

The City of St. Cloud, Florida

Provides parks, recreational areas, and maintains the lovely lake front.

Homes in the Historic District pay no HOA fees and are provided free wireless Internet networking as well as all the amenties enjoyed by local residents free of charge.

They are a viable alternative to equal cost apartments with a direct benefit to the home owner.

There is an added benefit when looking at older housing. History.

Recently, I sold the first Doctor's home who lived in St. Cloud Florida.

The home had lovely ten foot ceilings, a massive stone fireplace, and a formal dining room complete with butlers pantry.

It also had turn of the century french doors and hardwood floors which were in beautiful condition and a lush tropical garden.

Vintage 1925.

Opportunities are there- if you are look at the possibilities. These homes are at Historically low prices, and very afforable to operate. Have you considered a Historic Home Lately?