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Archive for the 'The Real Estate Process-How Does this work?' Category
Cheap Money! Get Yours NOW!
This offer ends soon ( you must make a loan application by May 31st, 2010) so act quickly!
Jacksonville, FL based Gibraltar Mortgage, an affiliate of Wells Fargo Mortgage, recently announced a program where they will buy down the interest rate of your FHA or VA 30 Year Fixed mortgage by 1% for the first year for FREE.
FHA loans are available to all buyers purchasing a primary residence assuming they don’t currently have an FHA loan. Loan limits for the surrounding areas is $387,500.
VA loans are for current or former members of the military, national guard or reserves. There are qualifying parameters based on the veteran’s participation. The VA loan limits for Duval, Clay and Saint Johns County are based off conforming loan limits of $417,000 pursuant to the veteran’s remaining eligibility.
Thanks for reading. We write primarily about the state of real estate in Avondale, Ortega and Riverside. We’d love to have you subscribe so you can hear about the latest news for the area — new listings, recent sales, price reductions, mortgage news and more!
The Importance of Communication in a Real Estate Relationship
Do you ever see a friend in the grocery store that you’ve been meaning to call and just haven’t gotten around to it? You feel TERRIBLE and want that friend to know that you REALLY have been thinking about them. You’ve MEANT to call almost every day but by the time you remember to call, the day is almost over and it just didn’t happen.
Unfortunately, the life of a realtor is often the same. We mean to call each and every one of our buyers and sellers every day. The truth is that we DO think about you all the time. Almost every day we say, we REALLY need to call (….). But in the interim, life happens. Busy with getting a new listing photographed, negotiating a offer on a listing, attending an inspection, creating a flyer for your open house on Sunday, researching what the proper price of the house you want might be, searching through active listings for what we’re going to show you or calling to schedule showing appointments keep us from sittting down to check in and just say hello.
The realtor is the middle man. It’s through us that you learn “what’s going on”. How did the showing go? What did the buyer think of my house? Do you think I’ll get an offer? Have you seen anything new on the market? What do you think we should offer on this house that we love? We’ve received an offer way below our asking price — should we make a counter-offer or just not respond? Have you heard anything from the bank on our short sale offer?
Despite knowing that the MOST important thing we can do is STAY IN TOUCH, it’s one thing that can be the most difficult to do. Please know that even if you don’t hear from us, we ARE thinking of you nearly every minute of every day — REALLY. And…..if we don’t call you — CALL US! We love to hear from you. Thanks!
Thanks for reading! If you like what you see, please subscribe so that our posts will be sent directly to your inbox. We write primarily about the state of real estate in Avondale, Ortega and Riverside.
Pick(s) of the Week – Best Bungalow Buys!
3316 Knight Street
The first Tuesday of every month, realtors in Jacksonville’s neighborhoods of Avondale, Ortega and Riverside go look at LOTS of open houses — it’s called Neighborhood Caravan. I set out to pick a “favorite” from the caravan and write a blog about it, but after reviewing the list, I decided to write about two houses that have been on the market for a long time instead. Why? Because I think they are great deals!
The first house is at 3316 Knight Street. I suppose the reason it hasn’t sold is that it’s only got two bedrooms. But…it’s been nicely renovated with new roof, ac, appliances, kitchen, bathrooms and wood floors. It’s on a great low traffic street in Avondale, it’s got an open floorplan, two full bathrooms (which is a big plus in the Avondale bungalow market) and a very large backyard which would allow the addition of a third bedroom if one ever wanted to do that. It’s got 2br/2ba, 1568 SF and the lot is 60 x 120. Priced at $274,900, it’s at $175 per square foot. If you’re interested, please give me a call.
3914 Baltic Street
The second house is at 3914 Baltic Street in Ortega and I must say I’m surprised at why this house has not sold. I can’t say I’m a fan of the green interior paint colors the owner has selected but can this possibly be the reason people won’t buy it? It’s got a lot of space (1,900 sf), 3br’s and 2ba’s in the front part of the house and a large master suite with bath in the back part of the house. It’s got nice curb appeal and is in a great location. The lot is large at 100 x 125. Priced at only $278,900, it’s only $146 per square foot. Interested? Call me and we can go take a look.
Thanks for reading. Please join me for my next adventure in the Avondale, Ortega and Riverside real estate markets!
How a Realtor Gets Paid — The Nuts and Bolts
I had a conversation today with someone who is NOT thinking of buying or selling. At some point, we talked about the commission a realtor gets paid and he said “Give me a break! My realtor spent all of 3 hours with me combined in our entire transaction and got a HUGE paycheck”! This perception of the fact that we realtors are all driving around in our Mercedes Benz’s throwing dollar bills out the window deserves a little attention.
Most realtors charge between 6 and 7% commission. The listing realtor (the one whose sign is in your yard) and the selling agent (the one who represents the buyer) each get half (3% each). The average real estate transaction is about $200K which at 6% commission is $12,000 or $6,000 for each realtor.
Out of the $6,000, the realtor must pay the broker a “split”. In most agencies, the realtor gets around 70% and the broker gets 30% which in this scenario $4,200 for the realtor and $1,800 for the broker.
Out of that $4,200, the realtor pays ALL of their own marketing expenses. This includes all ads, photography for our listings (we use and pay for professional photography), postcards, postage for postcards, online advertising (including realtor.com, trulia.com, zillow.com, etc…) and dues including membership in the MLS (multiple listing service) & NEFAR (NorthEast Florida Association of Realtors).
Realtors spend many, many hours on the phone talking with homeowners, prospective buyers and other realtors. They hold open houses, place signs out for open houses (and then pick them back up), attend showings, follow up with showings, call realtors to get feedback, negotiate contracts (once at the beginning of a deal and often a second time after inspections), coordinate the transaction with the closing or title company, the mortgage company, attend inspections, go to closing, buy closing gifts, prospect for new business, develop budgets and marketing strategies, place ads in local publications, etc… The list goes on and on.
Realtors are also condsidered independent contractors which means that we pay both employer and employee taxes AND we pay for our own health insurance. Perhaps even more important than all of the expenses is the fact that a realtor only gets paid if someone buys (or sells). We show lots of houses to people that never buy and not every listing we take sells.
The average realtor is involved in 6-8 transactions per year. So, the next time you think you’re realtor is overpaid, ask how much he/she made last year. I bet you’ll be surprised. Hopefully you can see that with all that’s involved, most realtors are not getting rich. Just like in any profession (superstar athletes, surgeons, businessmen, actors, etc…) there are a few MEGA producers that do make a lot of money — but they’ve served their time of lost holidays, weekends and evenings on their way to the top. 
A final point to consider is that when you bought your house, you didn’t pay ANY commission at all – the seller paid it. So, if you’re getting ready to sell and dreading the thought of paying a commission, try to remember all the times that you got the services of a realtor for free!
There seems to be the perception out there that realtors don’t do much and get paid a lot. I hope after reading this that you’ll see things a little differently. If you’re interested, I copied an article from the internet on the subject — click here to read it.
Thanks for reading — if you’d like more information about houses for sale in Jacksonville (or thinking or selling yours) in the Avondale, Ortega or Riverside neighborhoods of Jacksonville, I’d love to share my local area knowledge with you!
Extra, Extra….Read All About It!
In case you’re wondering who has the latest and greatest news — it’s often a realtor who specializes in your local area market. I often know about a house that’s getting ready to come on the market, a house whose price is getting ready to be reduced or about programs that lenders are getting ready to roll out that could save you a lot of money.
You might say that I have a lot of insider information. So…if you’re the kind of person who likes to know about it before it happens, then give me a call and I’ll be certain that as soon as I know it, you will too!
If you’re a loyal reader of mine (which I hope you are!) then you’ll know that I specialize in the Avondale, Ortega and Riverside neighborhoods of Jacksonville. Please join me for my next adventure in these very special neighborhoods of Jacksonville!
FREE MONEY – Get Some Now!
FREE MONEY
If you are a first time home buyer, I cannot imagine a better time to buy a house! First, there’s the $8,000 tax credit. This expires at the end of November 2009, so you will need to move quickly if you want to take advantage of this fantastic FREE MONEY.
AMAZINGLY LOW INTEREST RATES
Save even more money with government loans ( like FHA loans) because they require very small down payments — only 3.5% of the purchase price and now have interest rates below 4% — yes, you heard me 4%!!! This rate is for a five year adjustable rate that will then increase only 1% per year thereafter. Since national home statistics show that the average person moves every seven years, then you would only be at 6% in your SEVENTH year of ownership.
LOW PRICES
If you’ve had a chance to read any of my Monday morning market memo’s, you’ve seen that there are huge numbers of price reductions each and every week. Sellers are finally realizing that the only way to “move” their properties is to reduce the price(often multiple times). I’ve seen cases many times where sellers take reduction after reduction and nothing happens. Then, when they hit that “magic” number, the market takes notice and offers start flying in.
To see homes in Avondale, Ortega and Riverside $250,000 and below, click here!
So, if you or anyone you know is considering home ownership — it’s time to jump in! Thanks for reading.
The DANGER of Pricing Your Home too High – “Just to See What Happens”
It’s been a soft market, today’s buyers are super savvy and there is loads of data available to the public. Everyone knows what the house down the street sold for and it’s no secret that your house is overpriced in comparison.
There’s a term that realtors use called “trailing the market down” which means that if a person prices a home too high in the beginning, they miss the “prime window” that a new listing has to attract buyers. In a declining market, as we’ve had in the last few years, by the time the seller has agreed to reduce the price, the market has fallen more and, once again, the seller’s (reduced price) is too high. Thus the term, trailing the market down.
If you really want to sell, you must price your house to be competitive with (or below) the other homes listed for sale. Let’s face it, there are a lot to choose from and you’ve got to find a way to make yours stand out. In addition to having a great price, everything has to be in tip top shape. Clean, organized, de-cluttered and nice landscaping are essential. You cannot sell a place that appears to have deferred maintenance ( a realtor’s term for peeling paint, burned out light bulbs, air conditioning grills caked with dust, unsightly clutter and grass that hasn’t been mowed).
If the house is priced too high, buyers know it immediately! They’ve been out there looking and they can sniff out a good deal like a bloodhound! They’re equally good at spotting an overpriced house and will avoid it like the plague. So, do yourself a favor and listen to what we’re telling you. If you overprice your home, you’ll only get in your own way and your house WILL NOT SELL! Trust us….we know.
Thanks for reading. If you like what you see, we’d love for you to subscribe so you’ll get our posts directly to your inbox. If you or anyone you know is thinking of buying or selling in the Jacksonville area, we’d love to have the referrral. Our email address is steilberg@comcast.net or you can give us a call at 904-252-5181. Thanks!
Just Exactly What Is Property Tax Portability?
We all love saving money — right? If you have lived in your home for a long time and it has been declared as your primary residence (homestead), you will love hearing about how much money you can save if you sell that home and move to another one with the property tax portability feature! The savings can be HUGE!
Take a look at your property tax statement that you just received and you’ll see a Market Value figure and an Assessed Value figure. To determine what you would “port” or carry with you, subtract the assessed value from the market value.
For example, if your market value is $500K and your assessed value is $300K, then you can “port” or carry the difference of $200K with you. In order to port the entire $200K the next home you purchase must be of greater value than the home you sell.
An Example:
New Home You Are Buying: $550K
– Accumulated Property Tax Savings: $200K
Property taxes on new home will be calculated based on $350K
In addition, the property taxes on your new homestead will also be capped with the Save Our Homes feature and you will also be eligible to take deductions for homestead.
If you are downsizing to a home that costs less than the one you’ve just sold, you are still eligible to port your accumulated property tax savings but the calculation is done differently and is a bit more complicated. Call me at 904-252-5181 or send me an email at steilberg@comcast.net for an explanation of how this works.
Monday Morning Market Report – Week Ending 9/27/09
Click here to see graph
Read here to get the latest market statistics on what’s happening in the Avondale, Ortega and Riverside neighborhoods of Jacksonville. See what was newly listed, what sold, what went under contract and what prices were reduced!
As a note, I do daily searches for myself but for my readers, the report will be done on a weekly basis. So…for the week ending 9/27/09, these are the stats. The bar graph illustrates clearly that Closed Sales (11 ) plus Pending Sales (5) FAR outnumber the New Listings. Additionally, there were 12 price reductions (more about that later) which is what we are seeing more and more of as sellers realize that they must slash their prices to get an offer.
New Listings: 6
Closed Sales: 11
Pending Sales: 5
Price Reductions: 12
Closed Sales & Pending Sales FAR OUTNUMBER the new listings!! This is the most important keys to the recovery of the real estate market. In order for the market to stabilize, we’ve got to see the inventory come down which is clearly the picture represented here! Also, note the large number of price reductions. This is another major factor to the stabilization of the market. As sellers finally realize that they must reduce their prices, buyers are standing by ready to pounce and inventory will continue to dwindle.
New listings include everything from an $89,000 condo at Timuquana Village Condominiums to a waterfront single family home on the Ortega River at $2,300,000. The waterfront house is located at 4155 Lakeside Drive and is priced at roughly $400 per square foot.
The closed sales include a house in serious need of repair on Locust Street that sold for only $15,900 to a darling home 1672 Pershing Rd. (MLS # 488296) that had a wonderful new kitchen. It sold for $225,000.
The 5 Pending sales include 2 contingent sales. When a house gets an offer on it and both parties have agreed to the price and terms, the listing agent changes the “status” of the listing in the MLS (multiple listing service) to Active Contingent. This generally means that there is a condition that still needs to be satisfied. Some examples of this could be financing or inspections.
Once the contingencies have been satisfied, the sale will be changed from Active/Contingent to Pending which means that the transaction should be completed soon and the house will change hands from seller to buyer.
This darling new construction house Walsh Street is pending which means it will close soon. I showed this to some buyers and it was very nice. As an interesting note, at least four of the homes that I showed them have either already sold or are under contract!
One last statistic to take note of – price reductions! There were 12 Price Reductions this week. The most notable of those was a $500K price reduction on a gorgeous waterfront home on Richmond Street in Avondale. With over 7,000 SF of living space and over 170 feet of River front, this house is a showplace! The price drop brings the asking price to $4,490,000.
The other significant price drop was a “lot” on Woodward Road that was reduced this week to only $675K (see my earlier post “Run Don’t Walk”! There is a house on the property but the need for renovation is so strong that most would consider this to be lot value.
So…all in all, it was a great week. Tune in Monday, October 5th, for my next Monday Morning Market Memo!
Find Homes for Sale in Jacksonville from your Cellphone!
FREE SERVICE! Okay, this is something really cool! My business partner Caroline Powell and I are proud to offer our customers a new property search tool that works directly from your cellphone.
Simply text the words myhome to 87778 and the application will be downloaded directly to your cellphone.
As you are driving through a neighborhood (anywhere in Jacksonville) and see a cute house for sale, you naturally want to know how much it costs – right? Well, now you can get all the information you need directly from your cellphone!
Imagine that you’re sitting outside a house and notice a for sale sign. You want to know how much this house costs and what it looks like on the inside right now! Easy – whip out your cellphone, click on the Smarter Agent icon and search for the property by address (be sure to include the city and state).
The listing will pop up almost instantly and show you everything you want to know. Pictures, square footage, lot size, and PRICE! How cool is that?
Oh, and by the way, it’s FREE!! No cost to you — a complimentary service from the Powell Steilberg Team!
It will also show you other homes for sale nearby so that you can be sure to see them all. If you decide you like what you see and want to learn more about the house or possibly go have a look, simply press the call to see button and you’ll be patched through directly to us and we’ll schedule an appointment — Easy!
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