Why Do You Want To Buy A Home?

Home with heartsIf you are in the market to buy a home of your own, you need to ask yourself one question: WHY?

It seems like a simple enough question yet it is not. Experts are predicting that, in many markets, prices will continue to soften. That has caused many buyers to stay on the fence of indecision hoping to buy at the optimum time. If the reason you are buying is to do a quick ‘flip’ of the property to make money, waiting most definitely makes sense.

What if the reason you are moving isn’t about finances however. Does it still make sense to delay? That depends on why you are buying. What if your purchase is more about improving the quality of life for you and your family? Or moving into a school district where your child’s talents will be maximized? Or being closer to friends and family? There is a cost to delaying any of these decisions.

We realize everyone wants to make a sound financial decision no matter the actual reason for moving. Delaying in a hope to ‘time’ the market might not make sense however. Forbes.com addressed this issue in an article by John E. Girouard last week:

“Trying to time the housing bottom is as much folly as trying to time stocks or any other investment vehicle. In fact, it’s greater folly because if housing prices do fall further, it’s likely to be because mortgage rates are rising, which would mean that over the long term that slightly lower price you may have paid could end up costing more in carrying costs than you saved.”

He went on to say:

“My answer to those who ask whether now’s the time to buy a house is that the American Dream is and always was alive and well. It has nothing to do with the direction of housing prices but everything to do with your financial situation, income stability, ability to shoulder the costs, and if the home you have your eye on is your version of the American Dream—a home you love that you hope to live in for an extended period.”

Bottom Line

Don’t make buying a home solely a financial decision. Is the real reason you want your own home more important than money? Only you know the answer.

Source: The KCM Crew

Is Your Home Winter Proof?

To all of those contemplating a move to Florida but still living in the North…Is your home winter proof?  Here are some great tips on how to winterize your home before those cold winter months set in.

Is Your Home Winter Proof

Protect Your Home from Cold Weather Threats

By: Gwen Moran
Published: September 24, 2009

The right tools and pre-winter maintenance will ensure that your home and your family are safe and from cold-weather threats.

First, understand the threats

Blizzards. Storms with heavy winds and large amounts of snow accumulation can cause roof or other structural damage and leave you isolated.

Ice storms and ice dams. Ice storms coat structures, trees, power lines, cars, roads—and virtually everything else—with ice. As the ice melts, large chunks can fall and cause injury to anyone below. When ice melts during the day and then re-freezes at night, ice dams, which block water from flowing in the gutter, may form. This condition can force water back under the roof line and cause leaks.

Sleet or freezing rain. Combinations of snow and freezing rain may cause slippery conditions and coat roads, sidewalks, and driveways with ice when temperatures drop.

Protect yourself

The Federal Emergency Management Agency recommends that home owners have shovels on hand, as well as melting agents, such as rock salt. Some of the new, more environmentally friendly deicers include calcium magnesium acetate and sand to improve traction. Be sure to stock up early in the season, as these agents tend to be in short supply during periods before a well-publicized storm.

FEMA also advises you have enough fuel to maintain heat in your home, as well as a backup heating source: firewood if the home has a working fireplace, or a generator to power heaters in case of power failure. However, use caution as these can represent fire hazards when not used correctly. Be sure to follow directions explicitly and keep a fire extinguisher. Some generators and fireplaces also require proper ventilation, according to the Institute for Business and Home Safety, so follow directions carefully and keep them away from curtains or other flammable items.

Stock up on extra blankets, warm clothing, and enough food and water to sustain your family in case of a few days of isolation. And a transistor radio with fresh batteries can help keep you updated on news and information in case of a power outage.

Protect your home

Before winter, there are some precautions you can take to protect your home from the ravages of cold weather storms:

Winterize your home. Check shutters, siding, and other exterior materials to ensure they’re secure, says retired contractor and home improvement expert and writer John Wilder of Jacksonville, Fla. High winds, ice, and moisture from winter storms can easily strip off such outside elements if they’re loose.

Be sure that gutters are clear of debris and that walkways are even and don’t represent tripping hazards that can be exacerbated with snow or ice. Caulk drafty windows and apply weather stripping to doors—both inexpensive strategies that can keep heat in your home. Air sealing can help you save about $350 in energy costs or one-third of your average annual heating and cooling costs. The average annual home energy bill is about $2,200, according to Energy Star, of which about $1,000 represents heating and cooling. An assortment of air sealing materials and tools, including silicone foam, caulk, aluminum flashing for flues, and additional insulation, will run roughly $100-$350.

Watch your roof. Consider roof heating cables to prevent ice dams on roofs and in gutters, Wilder recommends. They emit a low level of electric-powered heat and prevent ice from blocking gutters and downspouts. These cables can also help melt snow as it falls and help prevent it from accumulating on your roof, where its weight may cause damage.

The cable costs approximately $50-$100 for a 65 to 100 ft. package and can be purchased online or at home improvement retailers. Well-ventilated attics, which release warm air and melt ice, can reduce the risk of ice dams as well, according to the Institute.

Winterize pipes. Be sure your pipes, especially those exposed or in unheated areas like crawl spaces, are wrapped in insulation to prevent freezing and bursting. Also, learn where your water shut-off valves are so you can turn off the water supply in case of a leak. Six feet of insulation can cost anywhere from $7 to $17; it’s available at most home improvement stores.

Trim tree branches. Branches that overhang roofs or areas where you park your car—or which are simply overgrown—represent a risk to structures, vehicles, and people. Keep trees trimmed and remove those that are weak or sickly to prevent them from falling on or near your home. Tree trimming and removal pricing varies greatly, and you may have additional restrictions if you live in an historic community or if the trees are close to power lines.

Check with your municipality about any regulations and contact your local Chamber of Commerce, municipal offices, or contractor rating sites like MerchantCircle.com or AngiesList.com to get the names of reputable pros. Tree trimming and removal can be dangerous, so don’t attempt it on your own unless you’re experienced.

By keeping your home in good repair and stocking up on the supplies you’ll need before the rush for rock salt and shovels begins, you’ll be as ready as possible to tough out the storm.

Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

13,780 Homes Sold Yesterday

Homes Sold YesterdayTo all those who have declared the real estate market dead, we want you to know that over 13,780 houses sold yesterday, 13,780 will sell today and 13,780 will sell tomorrow.

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales had increased 7.7% over the month before and 18.6% over the year before. According to the report, annualized sales now stand at 5.03 million. Divide that number by 365 (days in a year) and we can see that, on average, well over 13,000 homes sell every day.

We realize that these numbers are below the record for homes sold in 2006. We also know that we may never see those numbers again (and that is probably a good thing). But to say that the current real estate market is dead or that houses are not selling is totally inaccurate. We have over 13,000 pieces of evidence to prove that.

Source: The KCM Crew on September 26, 2011

How To Make An Offer That Will Be Accepted

How To Make An Offer That Will Be AcceptedIf you are a buyer submitting an offer on a home in today’s market, there are a few things you should know. My friends at The KCM Crew have done a great job outlining several tips. To this I would add:

Ask your Realtor to produce a comparative market analysis. This will provide you with the average sales price of homes in the area that have recently sold and compare to the home you plan to purchase. This will help you make a reasonable offer.

The binder amount you put down with the offer should be appropriate for the offer price. Ask your Realtor for advice on the amount that will place your offer in a strong position. This will be extremely important if multiple offers are received.

Getting pre-approval from your mortgage company is a must. Knowing the loan amount you qualify for will help you focus on homes that are in your price range and save you alot of time. Being pre-approved may also strengthen your offer position. If you have not found a mortgage company to work with, just ask your Realtor. They will be glad to provide you with a list of mortgage companies in the area. Read more …

Selling? Waiting Until the Spring Makes No Sense

Selling?  Waiting Until the Spring Makes No SenseLate last year, banks were warned that they needed to guarantee that the paperwork necessary to start a foreclosure process on a family was both accurate and complete. Since then, the banks have slowed down the foreclosure process while they re-examined their procedures. They are now confident that all the required documentation is in order. We are currently waiting on a settlement between the banks and the state attorneys general which will establish what penalties will be assessed.

Once this settlement is reached, the banks will again move forward on many homes which are currently stalled at some stage in the foreclosure process.

How many homes are we talking about?

There are millions of homes in this category. Calculated Risk quantified the situation:

“There are a large number of seriously delinquent mortgage loans in limbo waiting for this settlement. According to LPS, at the end of August there were about 1.87 million loans seriously delinquent and another 2.15 million loans in the foreclosure process. This is only down slightly from a year ago when 4.4 million loans were seriously delinquent or in-foreclosure. Once the settlement is reached, the pace of foreclosures will pick up sharply.  The pace will “pick up sharply”.

Bottom Line

As more foreclosures come to the market at discounted prices, there will be greater downward pressure on all housing values. Waiting for the spring selling season to put your house on the market may not make sense this year. The increase in demand may be overshadowed by an increased supply of distressed properties.

Source: The KCM Crew September 27,2011

Nassau County Receives Global Recognition

Amelia Island MarinaIf you know of anyone that would like more information on why we are ranked so highly in so many reports, please contact me!  I would be pleased to give you a thorough tour of our beautiful area and our exceptional quality of lifestyle.

Best in the World Islands

Amelia Island has been featured as one of the Top 5 Islands In The World for 3 consecutive years.

Where America is Moving

Nassau County ranked 3rd in the Nation by the Conde Nast Traveler’s Reader’s Choice Award.

Best Little Beach Town

Fernandina Beach made the list of Top 10 Best Little Beach Towns in the Nation.

“Low taxes, warm sunshine and deep discounts on real estate.  No wonder IRS data shows the wealthiest among us are
headed south” Report by Jon Burner at Forbes.com June 2010

Best Small Town Getaways

Fernandina Beachranked #1 in the Nation.  Coastal Living Magazine September 2010.

Southern Living Magazine October 2010

Omni Hotels and Resorts Purchases Amelia Island Plantation Resort.

“We are exceptionally pleased to add this extraordinary resort to the Omni portfolio given its great beauty, gracious accommodations and broad range of amenities,” said Mike Deitemeyer, president of Omni Hotels & Resorts. “We believe that the property extends our luxury resort collection and exemplifies our commitment to deliver memorable experiences to our guests”

Who Actually Works on Your Mortgage File?

Who Actually Works on Your Mortgage FileOne thing I have learned is that many customers meet with a loan officer and fill out an application and then they feel like they enter a black hole. They don’t know “what happens next” or “who all these people are”. Today, I thought I might shed some light on the typical roles and responsibilities of the participants. Now not every company has the same job descriptions and workflow procedures, but since we all have to end up in the same place, they are fairly similar.

I will assume your loan officer helped you complete your application and explained all the disclosures, including the Good Faith Estimate and Truth-In-Lending, and they gathered much of your documentation to support your income, assets and credit-worthiness. Further, they ran your credit report and maybe even obtained an approval through an automated underwriting system. Of course they advised you as to loan product options and discussed rate lock choices. For most, the amount of information can be overwhelming. But what happens next?

The Processor

Your file is submitted to the Processing Department. The main function of the Processor is to verify all the information on your application, as well as order the appraisal. They will verify your employment history and income via the mail, the phone and/or confirmation from the IRS. They will source the necessary funds for closing and reserves; they will help dispute and/or explain any credit reporting challenges. They will review the Contract of Sale and the appraisal. Then they will assemble all of the relevant documents and submit them to the Underwriting Department.

The Appraiser

The Appraiser is an independent third party who gathers information about the home and gives their opinion of value. Appraisers weigh many factors- comparable homes that have sold recently in similar locations, homes currently for sale, the condition of the property, the replacement cost, what the home could rent for, etc. The appraiser is supposed to protect the borrower and the lender. No one wants the buyer to pay too much, and the lender needs to make sure their cash investment is satisfactorily secure. The appraiser is not usually an engineer. They do not certify as to the “life expectancy” of the home or its improvements; however, they do often raise issues that should be addressed by a home inspector.

The Underwriter

I have long referred to underwriting as “the speed bump of the mortgage process”. Underwriters are charged with protecting the company from fraud and unsound decision making. While the borrower, the loan officer and the processor are pushing to get a closing, the underwriter says “slow down”. They look at the quality and consistency of the documentation. They add common-sense to the factual analysis of the automated systems. Files are approved, suspended or rejected. (If the LO and Processor did their jobs correctly, rejections are rare.) Most of the time, the underwriter will find some areas that need further clarification or documentation….and so the file goes back to the Processing department.

The processor and LO work with the borrower to satisfy the conditions. The file is then given back to the underwriter for review and hopefully the issuance of a Clear To Close.

The Closing Department

The Closing Department is focused on making sure the lender is covered legally. They review the title report (checking for gaps in the chain of title, certificates of occupancy, real estate tax numbers and payments, as well as judgment, bankruptcy and Patriot Act searches). They prepare the closing documents for the lender and have them executed and delivered for recording.

As you can see, there are many people who are working towards a successful closing. Each of them are trying to make sure the borrower is qualified and informed of what their future holds, and, at the same time, they are trying to protect the lender from making faulty underwriting decisions.

Source: Keeping Current Matters by Dean Hartman September 2010

Big Savings for Buyers: Rates Reach New Record Lows

Big Savings for Buyers: Rates Reach Record LowsFor the second straight week, mortgage rates reached another milestone, with 30 year and 15 year fixed rate mortgages hitting record lows again, Freddie Mac reports in its weekly mortgage market survey.

“Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week,” says Frank Nothaft, Freddie Mac’s chief economist.

For example, home owners who refinanced at today’s 30-year fixed-mortgage rate could trim nearly $1,715 a year in interest payments on a $200,000 loan, Nothaft says.

Here’s a closer look at rates for the week ending Sept. 15.

  • 30 year fixed rate mortgages: averaged 4.09 percent this week, down from last week’s previous record of 4.12 percent. Last year at this time, 30-year rates averaged 4.37 percent.
  • 15 year fixed rate mortgages: averaged 3.30 percent, dropping from last week’s record low of 3.33 percent. Last year at this time, 15-year rates averaged 3.82 percent.
  • 5 year ARMs: averaged 2.99 percent this week, up slightly from last week’s 2.96 percent average. A year ago at this time, the 5-year ARM averaged 3.55 percent.
  • 1 year ARMs: averaged 2.81 percent, down from last week’s 2.84 percent average. A year ago, the 1-year ARM averaged 3.40 percent.
Reprinted from REALTOR® Magazine September 2011 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2011 All rights reserved.

Luxury and Vacation Homes Are Selling

Luxury and Vacation Homes Are Selling

It has been a trying time for most segments of the real estate industry. However, two areas that are showing improvement are the luxury home and vacation home markets. It seems that people in these segments are again beginning to purchase.

Vacation Homes

Last week Market Watch published an article discussing the vacation home market. Dan White, president of Daniel A. White & Associates, a wealth-management firm in the Philadelphia area, was quoted in the article. “A lot of people are worried about the [stock] market today because of the volatility and the fact we could be going into a double-dip recession. They’re looking for other avenues. Real estate, if we’re not at the bottom [in prices], people think we’re pretty darn close.” The article also explained some purchasers are seeing this as an opportunity to buy a vacation/retirement home: “Some baby boomers are seizing an opportunity to get a deal on a vacation home they can enjoy now but that’s also a home that eventually will become their primary residence when they retire.”

Luxury Home

Along with the vacation home market, the luxury market has also made a comeback. HousingWire reported on the luxury market last month: “In the nation’s top 20 markets, million-dollar property sales rose 18% in 2010 with a 21% increase in California, said Laurie Moore-Moore, CEO of The Institute for Luxury Home Marketing, a Dallas-based firm… In Miami, 517 properties sold for $2 million or more during the first seven months of 2011, up nearly 16% from a year earlier.”

Bottom Line

If you are in a position to move-up to the home of your dreams or have been thinking about a vacation home for the family, now might be the time to make the move. Source: The KCM Crew September 12, 2011

Rollin’ for Joplin

Rollin' for Joplin Motorcycle Poker RunI would like to thank everyone who came out to support Amelia Island Rotary’s first Motorcycle Poker Run!  The proceeds from this years run will be donated to the tornado victims of Joplin, MO.

The lowdown...The event got kick-started following the Blessing of the Bikes.  Riders traveled throughout Nassau County, Woodbine and Folkston stopping for good eats, great music and a little poker along the way.  To everyone’s surprise the first pit stop was at a local farm where riders received a tour of the farm and were introduced to all the barnyard animals.  Next stop, Whistlin’ Dixie where the riders enjoyed snacks while listening to the live band.  Along the way, Captain Stan’s Smokehouse and the Red Neck Yacht Club were open for a cool drink.  By now everyone had worked up an appetite, lunch from Sonny’s Real Pit Bar-B-Q really hit the spot!  Last but not least, prizes were awarded as riders reminisced about the ride.

Amelia Island Rotary Motorcycle Poker Run

See what riders said about the Motorcycle Poker Run.  Not too shabby for our first year!

  • “Best organized ride I’ve been on in a long time”
  • “Great route”
  • “Loved the stops”
  • “Great time”
  • “Coming back next year”

We hope to keep Rollin’ along with this event annually to help other disaster victims.  Thank you to all of the club members, volunteers and business sponsors for making this years event a success!  See you again next year!