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Congratulations! You have finally made the decision to take the step and buy real estate. Whether this is your first purchase or 15th, for your primary residence, vacation home, or investment real estate, there are steps you need to go through to ensure the process is a smooth one.
- The first step is to get pre-approved by a lender for a loan. This can be directly from a bank you do business with or through a mortgage broker. This is the most important step to take. Once you are pre-approved, you will know how much house or building you can afford or better yet, how much of a house or building you feel comfortable with. The lender or mortgage broker will give you an idea of what your monthly costs will be and will give you a Good Faith Estimate of closing costs to let you know how much money you will need to bring to the closing table to finalize your purchase.
- Know what you are looking for. Once you are pre-approved, decide what your ideal neighborhood, home, or investment property would be. Are schools important or is it more important that you be close to work? Determine what the “must haves” are. These are the specifics of the property or neighborhood that you are not willing to give up but would be willing to sacrifice a “nice, but not necessary” for. This could be an extra bedroom, pool, specific school district, waterfront criteria etc. Knowing what you are looking for both in a neighborhood and home or investment property is extremely important as it will help keep you focused. Once you narrow down your wants, you will realize you don’t have to look at everything on the market, only those specific properties that meet your criteria.
- Work with a Realtor! I know that sounds like something I would say since I am one but, whether you work with me or another Realtor, a knowledgeable Realtor really will be able to make the process easier. This is my career and I specialize in getting the information you need all in one place. Even if you are a master websurfer, I can help you by giving a one-stop shop for answers, resources and information you will need to make your buying decision. I will even create your own website for you so you can surf the MLS instead of having to go to every real estate site on the web.
10220 SW 72 Ave., Pinecrest, FL
North South Tennis Ct, pool, deep acre lot
This house is great for entertaining; it is like having your own country club in your back yard! A North/South tennis court, pool, and large covered patio with electric awning and pass-through to kitchen make this deep acre lot the place to be.
A large kitchen with granite counter tops, spacious living and dining room, and 5 bedrooms provide a wonderful space for relaxing after a day of fun in the sun.
Miami Real Estate – Plenty of Housing Data Due Next Week
The S&P Case-Shiller Home Price Index for December will be out on Tuesday followed by the Commerce Department’s new home sales report on Wednesday and existing home sales report on Friday. These three reports will help give Wall Street, and the rest of the country, an idea of how the overall housing market is doing.
Bloomberg’s Foreclosure Index Up 3.8% From One Year Ago
Source: Bloomberg
Are Recent Improvements in Home Sales and Median Prices Here to Stay?
Both on a national and local South Florida level, home sales have been improving and in some areas median prices have actually been increasing. Although we have been seeing a trend in increasing sales and decreasing inventories in Miami-Dade County, Moody’s Investor Services estimates there will be an additional 8% decrease in home prices in 2010 due to an increased number of foreclosures, short-sales, and deeds in lieu of foreclosure sales that will be coming on the market. Moody’s estimates are based on loans that are currently in some form of modification process but that will not be eligible for permanent modification.
Are You Eligible For a Loan Modification?
The Difference between Cost vs. Price
Sellers and buyers of real estate often fixate on what the price of a property is and in doing so, lose sight of the more important factor, cost. Price is what you get for the property if you are a seller and what you pay for it if you are a buyer. However, what affects both seller and buyer on a monthly basis is the cost. In addition to principal, interest, taxes and insurance costs, there are maintenance costs and maybe association fees.
If you are a seller, consider how much it is costing you to carry that property each month you don’t sell it. Based on the inventory of similar properties in your area vs the number of sales, you can calculate how much it is going to cost you to continue carrying that property for the average number of months it is taking to sell properties in your area. I suggest you cut your sales price and take the loss upfront vs slowly cash out each month.
If you are a buyer, realize that there has never been a better time to buy than right now. You have a large number of options, the interest rates are the lowest they have been in decades and there is the government tax credit that expires at the end of April 2010. If you are waiting for prices to go down lower, consider the cost of owning if the prices go down but the interest rates go up. If prices come down 10% more, but interest rates inch up only 1% your monthly payments are going to be roughly the same.
Small Homes Are Back In Demand
The days of the McMansions have been put on hold for now. What is selling in Miami are the smaller homes on smaller lots in neighborhoods that are close to shopping and transportation. Most of the homes fitting this description are under $500,000 and many are under $300,000 and are therefore perfect for first-time homebuyers.
If you have a home that fits this description, now is a good time to sell since inventories in these price ranges are low and buyers are often bidding above asking. Many of these buyers want to be under contract prior to the end of April in order to qualify for the First Time Homebuyers Tax Credit.
100 Edgewater Drive – Water’s Edge Condominium
This low-rise garden condominium is located on the Coral Gables Waterway. It is ideally situated between Coconut Grove, South Miami, and downtown Coral Gables, making it popular with young professionals, students and retirees alike. The units are spacious and feature ample closet space. Rentals range from $900-$1100 for one bedrooms and $1500-$1800 for two bedrooms. One bedrooms list for sale in the mid to high $100,000 and the two bedrooms are in the $200,000. Low maintenance fees and a stable association are additional benefits. 
Miami Real Estate – Homes Below $300,000 Get Lots of Activity
The real estate market in Miami continues to be driven by properties priced under $300,000. I listed a home this week in this price range and had 8 offers within the first 5 days, all at or above asking. Many of the would be buyers expressed frustration at losing out to cash buyers or having banks stall the process if the property was a short sale or foreclosure. If you are thinking of selling your home and have a home in this price range, chances are if you price it right you will get multiple offers, even above asking!
Miami Real Estate – Miami Not On Forbes’ Latest List
The latest Forbes real estate article, America’s New Housing Crisis Capitals, lists metropolitan areas were prices are still dropping with continued declines expected. Thankfully, none were in Miami-Dade, Broward, Palm Beach or Monroe counties!
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