Articles

As we see some market recovery among Coral Gables homes for sale, the scales become a little more balanced between buyers and sellers. However, if you're a buyer moving out of the area, local conditions here aren't relevant. You need to investigate whether it's still a strong buyer’s market in the area where you are relocating.

If long listing times and price reductions are prevalent, then you have the luxury of exercising some of the following options when you search and eventually make an offer. First of all, you needn't jump at the first suitable Coral Gables home you find, because inventory will be high and price reductions open to discussion.

When you finally decide to make an offer on one of the available Coral Gables homes for sale, play the time card to your advantage, asking for a speedy seller response, perhaps within 24 hours. Pressure to accept is one thing, but do allow a reasonable amount of time for inspections, repairs, etc. Speaking of which, don't be shy about stipulating major repairs in your offer, and the inclusion of a "home warranty" policy for the first year.

Offer below asking price, but don't lowball and insult the seller. You can always reject their counteroffer in a strong buyer’s market, as long as you can accept the risk and move on to the next property. Have your real estate representative assemble a good selection of suitable homes for sale in Coral Gables, and take one step at a time!

Mike Morgan
Team Morgan, Coldwell Banker

Whether you want to buy or sell a home in Miami, Palmetto Bay, Pinecrest, Dadeland Walk, South Miami, Coral Gables or Cutler Bay, you can depend on the Morgan team of realtors to assist you every step of the way during your real estate transaction.

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Buy, Sell, Win, Win

Buyers and sellers of Palmetto, Pinecrest properties - the time for hesitation is over for both of you. Palmetto Bay and Pinecrest home sales are rising; inventories are shrinking. And even though home values fell dramatically in the last few years, the good news is that houses are now more affordable than they have been at any time during the last twenty years.

If you want to buy any of the available Palmetto, Pinecrest properties for sale, now is the time to make your move, literally. As the market recovers, the scales are still tipped in your favor. There are still many "distressed properties" (foreclosures and short sales) on the market, and other homeowners are entering the selling field as improving conditions increase their confidence.

You can still expect competition for lower end, entry-level homes, but demand is softer in the middle to upper end property market, so you could be in a stronger bargaining position in those two tiers.

If you're a seller, don't be alarmed by the good news for buyers. Buyer confidence and strength makes it more likely that you'll enjoy a sale. Don't try to compete against short sales and foreclosures when you're pricing, though, because that's a tough game to win.

Just complete any needed repairs, get your home into great showing condition, and emphasize your home's strengths and features. We're in an interesting transitional phase where both buyers and sellers of Palmetto, Pinecrest properties can be winners with the right attitude and representation.

Mike Morgan
Team Morgan

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Why it Makes Good Sense to Hold an Open House

There is much debate among real estate professionals about the value of holding an Open House. Some insist these events help get the house sold. Others argue it's an outdated practice in the digital age of virtual tours. However, it's been estimated that nearly half of all buyers who visit open houses first learned about them on the Internet.

With all the time and money that a real estate agent puts into marketing your home, an Open House puts those very targeted buyers inside your home and in front of your representative. One of the best aspects of the Open House is the feedback that visitors provide, feedback that can suggest you change your approach or make needed improvements.

Aside from interest generated by the Web, the signs your real estate agent places in front of Palmetto Bay and Pinecrest homes for sale may also attract curious passersby. While they may not be making a purchase themselves, they may very well know someone who is. An Open House also helps to create a sense of urgency among those who visit, particularly when they see that other buyers are showing interest.

Obviously, a successful Open House exposes your property to a broad base of buyers, but even if only three people visit and one makes an offer, it was clearly worth it. Not all Palmetto Bay and Pinecrest homes for sale are ideal candidates for this type of marketing, so ask your agent about the possibilities.

Mike Morgan
Team Morgan

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Selling Your Home Yourself? Proceed with Caution

Many sellers in Miami, Palmetto Bay and Dadeland Walk are tempted to list For Sale By Owner (FSBO) because they feel home prices are down and they don't want to lose one more penny by paying a real estate commission. But with fewer than ten percent of all home sales falling into the FSBO category, it's a challenging strategy.

When selling your home yourself, you'll have to safeguard against prospects that have not been screened and qualified by a professional. When someone calls to request a showing, note their caller ID and keep a log of visitors. Stash away prescription medications and valuables before showings, and afterwards check that all your windows and doors are locked.

There are also legal considerations for your listing and hopefully, your eventual sales contract. Be sure your real estate listing complies with the Fair Housing Act, which prohibits discrimination against buyers. If you're unfamiliar with escrow and title insurance, hire a real estate attorney to draft, review and record all documents.

This economy makes securing a loan difficult, so it's wise to require a loan pre-approval letter from buyers before accepting any offers on your Palmetto Bay or Dadeland Walk home. If you really want to get attention, sweeten the pot by offering a two to three percent commission to any agent who brings buyers to you. FSBO is not the easiest route, and many impatient and frustrated sellers end up hiring a real estate agent to make the sale happen.

Mike Morgan
Team Morgan

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The Buyer's Blueprint: Determining Your Offer to Purchase

Have you been house hunting lately in Coral Gables? Once you find a home you love and are ready to make the commitment, consider the “Offer to Purchase” as your blueprint for executing a successful transaction. Your real estate representative will present your offer to the seller's agent, and the ball will be rolling.

The most critical elements of your purchase agreement include your proposed offer price, what property will be included in the sale, inspection and financing contingencies, provisions for the disclosure and repair of any defects, requested seller concessions, your deposit or "earnest money" amount, and finally the expiry date of your offer.

Your real estate agent will draft this document with you, explaining all of your options and what will happen once the offer is presented. Once the seller reviews your purchase agreement, the seller may accept, reject or counter your offer. Any changes that the seller or the buyer make to the agreement will be initialed, and the Offer To Purchase will not become binding until all parties have signed the document.

If you don't want to pay full price, but also don't want to risk rejection of a low offer, propose other terms that will reduce your bottom line. These terms include offering to make a quick closing or buying a house "as is" in Coral Gables. Your agent will explain your options and help you present an offer that is most likely to be accepted.

Mike Morgan
Team Morgan

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Preventing Inspection Delays

No matter how much you prepare, real estate closings in Palmetto Bay & Miami just seem to take longer these days, often up to sixty days from the date of the initial offer. A recent survey of REALTORS® reveals that ten to fourteen percent of pending home sales don't get to closing, while another twenty percent experience unplanned delays before being finalized.

Delays fall into three major categories: financing, title research, and inspections. Getting estimates and negotiating repairs can really hold up a real estate transaction, but there are ways to speed up the process.

One option is for sellers to procure a pre-listing inspection and make repairs before the first potential buyer sets foot in the home. However, this can be a costly expense for sellers, especially when buyers will almost certainly hire their own inspector after making an offer, and there can often be great differences between two inspection reports.

A better alternative is for the listing agent to walk through the home with the sellers, noting the age and the condition of major components of the home and securing estimates for potential repairs. Sellers may not have to fix the problems, but having an idea of the cost of repairs will help them price the home fairly, as well as reduce the time necessary for buyers to negotiate the costs. This is an excellent preventative and proactive step towards a successful real estate closing.

Mike Morgan
Team Morgan

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How to Know if the Asking Price is the Right Price for You

As you search and tour Pinecrest homes for sale that appeal to you, how can you be sure that the asking prices are in line with current values? Begin by asking your real estate agent to collect comparables and prepare a Comparative Market Analysis (CMA). This report indicates market trends by showing whether similar homes in the Pinecrest area are selling for above or below the asking price of the home(s) you've selected.

Using the comparables that your agent researched, you'll be able to figure the average cost per square foot for the area, and determine if the Pinecrest home you want compares favorably with those figures. Total the square footage of several homes and divide by the number of homes to get an average. Total the "sold" prices of each home and divide by the number of homes to get an average selling price.

Now, divide that average selling price by the average square footage to produce the average price per square foot for Pinecrest homes for sale in the area. When you multiply that average price per square foot by the square footage of the home you want, you'll discover how your choice compares, and then you'll know if you're looking at a fair price.

Other factors like the seller's motivation or urgency may also affect your offer, so talk to your real estate agent about that CMA and take the next step!

Mike Morgan
Team Morgan

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Miami Short Sales: A Better Alternative

Are you looking for homes for sale in Miami? Palmetto Bay is a vibrant community to live in, but like many other areas of South Florida, you can also find a number of foreclosed homes for sale here.

Due to recent government incentives, short sales in Miami are becoming the darling of the distressed-property marketplace. A short sale keeps owners out of foreclosure, because the lenders allow the homeowners to sell their house for less than they owe.

Banks have really sped up the process, hiring large numbers to serve the short sale specialty. In early 2010, one of the very largest banks had more than doubled the number of short sales it approved, sometimes as quickly as 24 days. Compare that to last year, when home short sales stalled indefinitely or took more than six months to complete.

The biggest roadblock to approval was often a second mortgage held by the seller. Since the primary lender must be paid first, the second lien holder could be left with nothing, and they would basically kill the sale. But now the Home Affordable Foreclosure Alternatives (HAFA) program provides money to primary lenders who share the proceeds with the second lien holders. HAFA also provides up to $6,000 to those secondary lenders if they release their claim.

Home short sales keep borrowers out of foreclosure and reduce the impact on their credit. While foreclosure can shave 200 points off your credit score, the penalty for a short sale is only half of that. Hopefully, a boom in short sales will also bring us closer to ending the ongoing foreclosure crisis. That will be welcome news for individuals with homes for sale in Miami / Palmetto Bay.

Mike Morgan
Team Morgan

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Look Before You Leap When Buying a Home Foreclosure

My recent column about the three types of home foreclosures may have piqued your interest about making such a purchase. But before you buy one of the foreclosure homes for sale in Miami / Palmetto Bay, read on to learn a few of the common mistakes to avoid when you’re ready to make an offer.

First, don't get caught up in a bidding frenzy. Banks may “under price” their offering, hoping to generate multiple bids and sell quickly. Don't get overexcited - there's another foreclosure to bid on tomorrow!

Second, don't underestimate your repair costs. Carefully read the inspection report, and factor in an additional 10-20 percent of the purchase price for unexpected repairs.

Third, don't ignore the "comparables" for similar homes for sale in Miami / Palmetto Bay. If there are abundant foreclosures in the neighborhood, be sure that you have the latest home prices to compare against, and keep your offer at or below those figures.

Fourth, if you're buying for the short-term because you may relocate or upgrade in a few years, don't go house hunting in a neighborhood full of foreclosures. These properties may continue to decline in value, meaning you may have to sell at a loss in the near future. Protect your investment by purchasing the only foreclosed home in a better neighborhood.

Finally, do secure loan pre-approval, because you'll need to move quickly once you've found your ideal property. With your real estate agent as your field guide, your hunt should be successful!

Team Morgan
Coldwell Banker Real Estate
“For Every Move You Make"

Whether you want to buy or sell a home in Miami, Palmetto Bay, Pinecrest, Dadeland Walk, South Miami, Coral Gables or Cutler Bay, you can depend on the Morgan team of realtors to assist you every step of the way during your real estate transaction.

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Salvaging Credit and Equity

If you're facing mortgage default and want to avoid foreclosure on your Palmetto Bay/Pinecrest home, you're probably looking at a short sale. This is an agreement with your lender to sell your home for less than what you still owe. This pricing strategy is challenging, because you have to list high enough to satisfy the lender, but still low enough to attract buyers.

First, complete a short sale application from your lender and get a quote for how much they're willing to accept. Work with a reliable real estate agent to find the sweet spot between what the lender wants and what will excite buyers, and you may be lucky enough to receive multiple offers.

If you're not defaulting, but your Palmetto Bay/Pinecrest home has lost significant value, you're still in a tough situation. If you bought during the peak years, you may have trouble salvaging your equity in today's market. While painful, the best pricing strategy in this case is to ask your agent for a Comparative Market Analysis (CMA) and price your home at fair market value or below. Again, if your price is right, you may encourage multiple offers, resulting in a higher sale price.

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What to Consider When Buying a Foreclosure

Are you thinking of buying one of the available homes for sale in Palmetto Bay and Pinecrest? If you're looking for a bargain and considering buying a foreclosure, you'll first have to decide what kind of foreclosed property to pursue. Florida foreclosed homes for sale come in three categories: Pre-Foreclosure, Sherriff's Auction, and Repossession (or a bank-owned REO).

Pre-foreclosure homes are in the process, but have yet to be auctioned. Your offer will have to be negotiated with the lender as well as the home owner, which makes the deal complicated and slow. Prices also tend to be highest in this category of Florida foreclosure listings.

The lowest prices are found on properties that are being auctioned, but inspections are usually unavailable for these homes, and the transaction can get very sticky. These foreclosures are often best left to contractors, investors and developers who are well versed in the challenges these properties present.

Finally, if the Palmetto Bay or Pinecrest home does not sell at auction, it is repossessed by the bank and offered as an REO (Real Estate Owned by the bank). Repossessed homes for sale may list at a higher price than the auction price, but you may have the home inspected and avoid any repair surprises, not to mention the fact that you have clear title to the property.

However, repossessed homes in this stage are usually still offered in "as is" condition, so make sure to pay very close attention to the inspection report and as always, consult with your real estate agent before making any offers.

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How to Ensure Smooth Sailing of Your Real Estate Closing

As a home buyer, you want your offer to be accepted and your contract to close on schedule. However, in today's climate, you should expect some negotiation, and submit your offer to buy a Miami home with the following advice in mind.

The financing contingency in your offer will state your loan total and anticipated interest rate and approval date. Strongly consider locking in that rate with the lender, as rates are still very low, and you'll avoid any future fluctuations in the market.

Reserve funds now for your settlement costs at closing. Anticipate anywhere from 2% to 6% of the amount you're financing, plus your down payment (less any earnest money you offered as a deposit), which will be presented in the form of an official (cashier's) check.

If your down payment funds are not in an immediately liquid account, keep things on track by moving the funds into your checking account at least a week before closing, so you're sure that you'll be able to access the money in advance of the closing date.

Finally, try to avoid a closing date at the end of the month or the end of the year, as these are the busiest times for lenders and could cause undue delay in meeting your approval deadline for financing. Speak with your real estate agent about other factors in crafting your offer and successfully closing on schedule.

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3 Tips for Pricing Your Home Under Pressure

Deciding on an asking price for your home in Dadeland Walk or Palmetto Bay is challenging enough these days. But it’s especially so if you need to sell quickly, or your home hasn’t had any offers after being on the market for several months. Here are suggestions for both situations.

If you're facing a deadline due to job relocation or other reasons, then you need to price competitively, even more competitively than expected in today's market. You'll need to list at significantly less than your competition. Think 15% less. That may seem tough to stomach, but it’s better than continuing your monthly loan payments or the hassle of trying to find tenants to rent your Dadeland Walk home.

If your home has been listed for some time, but not generating interest, you'll need to lower your price. Of the three elements that sell a home - price, location, and condition - price is the one you'll have the most control over.

If home values have declined in your neighborhood, the price you originally listed at a few months ago may now be too high and out of line with comparable home listings. Now would be the time to have your Pinecrest real estate agent prepare a new Comparative Market Analysis (CMA) and reevaluate your pricing strategy. If you've got to sell, and sell now, price it like you mean it!

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Home Selling Tips: When it Makes Sense to Hire a Real Estate Agent

Sure, it’s a legitimate question: Can you sell your Coral Gables home without the representation of a professional real estate agent? The legitimate answer is, “Of course you can,” but that begs the next question of whether there’s an advantage to doing so.

One assumes that home sellers want to obtain the highest price possible. Otherwise, the Coral Gables home could simply be auctioned, or sold to the first buyer who offers. Getting the best price depends upon exposure to the widest, most qualified segment of potential buyers.

An ad and a yard sign are not enough to create that exposure. While real estate agents spend untold dollars on advertising and signage, those only attract about 20% of actual buyers, so just one ad and one yard sign will yield even less.

So where does the lion’s share of motivated buyers come from? In a real estate firm, they come from cooperating brokers and agents. It’s logical, since serious buyers seek the assistance of real estate agents who save them time and money by matching their needs against large inventories.

The only buyers attracted to properties “For Sale By Owner” are ones who want to save the same commission that the sellers do! You can choose to represent yourself in this competitive industry, but it may cost you. Remember that a bargain is not measured by what you pay, but by what you get.

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How to Handle a Chore Next Door

While not a very common problem, if you’ve got it, it can have a terrible impact on your Miami listing: The Messy Neighbor. If you live next door to a “neglected” Miami property, you might lose up to 20% of your home’s market value, particularly with home buyers looking for any excuse to reduce their offer.

It’s technically not your problem, but ask not for whom the bell tolls. It’s well worth your time and effort to resolve this situation amicably. Always be respectful, and don’t let your emotions get the best of you.

Unless you believe your neighbor is “unhinged,” you should begin with a visit to their home and a positive attitude – no name-calling or finger-pointing. Don’t grab everyone on the block and gang up on your neighbor – you’ll get better results if you go alone or with one other person.

If you find your messy neighbor is unwilling to take care of their maintenance, it may still be in your best interest to do the work yourself or with the help of other neighbors. No, it’s not fair, but if you want a fair sales price, this may be your only option.

As a last resort, you could file a complaint with your property owners association in Pinecrest or Palmetto Bay, or with your city government. You could be referred to a mediator who will help setting your disagreement cordially.

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5 Tips to Ease the Stress of Moving Day

You know that it takes planning and preparation to sell your South Florida home and the same applies to making a purchase. But whether buying or selling homes in Palmetto Bay or Dadeland Walk, you’ll also have to put a lot of thought into Moving Day. Here are five tips to make the process a little easier.

Get three in-home written estimates from professional moving companies. Once you’ve made your choice, start packing!
Start packing well in advance of moving day. When you start early, you’re actually less likely to pack things you no longer need. Sort those items separately as you go, and then have a yard sale or get receipts and deduct your donations.
Use recyclable packing materials. You can save both money and the environment by using what you’ve got on hand. Instead of bubble wrap or paper, use towels, sheets, and other soft items to wrap your breakables and save space.
Label each box by number and room, and keep an inventory of its contents.
Save a couple “load last” boxes for easy access on moving day and your arrival (towels, sheets, toiletries, medications, etc.).

When you do arrive, try not to be overwhelmed by all the piles of boxes. It’s a lot more fun to unpack and rearrange in your new home than it is to load everything up. If you’re properly organized, you can quickly get settled. Just work on one room at a time and be sure to start in the kitchen!

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3 Ways to Raise Your Credit Score, Lower Your Interest Rates

Shopping for new homes in Palmetto Bay? Miami, FL lenders are an increasingly difficult crowd to please, so if you’re looking for the best deal on a mortgage, you need a couple of strategies to improve your credit score. Lenders use that number to determine your risk of default, and it may be the single most important factor in your application.

Scores range anywhere from a very risky 300 to a perfect 850. You’ll need a 750 today to get terms a 700 would have gotten you two years ago. Begin with a $16 investment at myfico.com, where your three reports from Experian, Equifax and TransUnion are averaged into one representative score.

A Zogby poll reports that one third of all people who request a credit report find errors. Your score is only as accurate as your information, so scour your report and correct errors immediately. This could boost your score by as much as 200 points!

The largest percentage of your score is determined by your payment histories, but the second largest factor is your “card utilization rate,” or your total balances compared to your total credit limits. 10% is the ideal number (like $2,500 in charges when you have a $25,000 line of credit).

If you correct errors, have an excellent payment history, and get your debt-to-credit ratio down, you can expect to save thousands with a lower interest rate on the mortgage for your new home in Palmetto Bay, FL.

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What is an Escrow Account?

Shopping for a new home? Whether you’re considering one of the available Palmetto Bay homes for sale or a Dadeland Walk townhome, you will come across the term “escrow account” when you’re ready to make an offer. If you’re unclear what this term means, think of it this way: imagine making a friendly bet and asking a third party to hold the wager money. The “escrow agent” is the neutral party that holds funds in the interest of the mortgage lender and the borrower.

When the terms of the purchase and loan agreements have been met, the money is released. When your application is approved and the loan takes effect, the lender will likely require money for property taxes and homeowner’s insurance also to be held in an escrow account. These funds are added to your monthly mortgage payment and disbursed when the tax and insurance bills are due.

This protects the lender by ensuring a lien isn’t placed against your property for non-payment of taxes, and your home (their collateral) is protected against catastrophe. But escrow also benefits borrowers by spreading the large annual payments for taxes and insurance over twelve months.

For example, if your taxes are $1,600 per year and your insurance is $800, you’re budgeting a reasonable $200 per month instead of making two big payments. Escrow accounts do not earn interest, so if you make a large enough down payment, you may be able to avoid the monthly escrow and pay bills directly. Ask your agent and your lender about the pros and cons before buying a home.

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5 Tips for Getting Your Home Ready to Sell

Getting ready to sell your Miami home? Whether it’s a Dadeland Walk townhome or one of the available Palmetto Bay homes for sale, there are several areas to focus on to attract buyers to your door. If you’ve followed the advice given here about sprucing up your home’s exterior, well done! Now let’s focus attention on the next thing potential buyers will see - the front door and the interior. This is the time to do some “spring-cleaning” and show off your South Florida home’s best features.

1. Repaint that front door and touch up around the entry. Make it warm and welcoming with updated light fixtures at the entrance and foyer.

2. Check your windows and doors for energy efficiency. If they’re not airtight, an investment in new windows and insulation will pay off handsomely and impress buyers.

3. Repaint your walls. You can achieve a bright, clean look with light yellow or cream on the walls and contrasting white woodwork.

4. Renew or replace flooring. Buff up your wood floors, clean your area rugs or carpets, and replace any worn carpeting before your first showing.

5. Spruce up your bathrooms. Buyers look carefully at bathrooms, so be sure to remove any spots of mildew, replace caulking, and consider a small investment in a new sink and vanity to really make things sparkle.

The icing on the cake is to offer buyers a “home warranty” on the appliances in your house, allowing them a full year of service on anything that happens to go wrong. Your pride of ownership and their peace of mind should combine to produce a sale!

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How to Sell Your Home for the Right Price

The painful truth: Home sellers who do not price their property competitively are the most likely targets of lowball offers. In soft markets, buyers are more prone to make low offers on listings seen to be priced too high. Florida real estate listings that don’t sell usually require price reductions, which in turn often mean ultimately accepting an offer lower than you could have received by pricing aggressively from Day One.

Since selling your home can be such an emotional and subjective experience, it’s easy to understand why you’d be reluctant to counter an offer below your asking price. But rather than feel insulted, try to see it as the beginning of a dialogue that could ultimately produce a sale.

If you feel any of the terms or conditions of the offer are unacceptable, ask your real estate agent to present a counter-offer. Sometimes home buyers and home sellers don’t really know beforehand what price they’ll accept until they’ve begun the negotiations. For example, a buyer might agree to a higher price than planned if interest rates suddenly drop.

If you’ve received a lower than expected offer, but the buyers have proven their qualifications and commitment by securing loan pre-approval, you have grounds for serious consideration. The process of counter-offering can be swiftly settled or carry on ad nauseam. Be prepared to explore all options and act quickly before letting your negotiations fail.

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Hunting for Real Estate Bargains? Take a Guide Along with You

There are two apparently attractive options for buyers scoping out a deal on homes for sale in Miami. One type is the “short sale,” where sellers have made an agreement with their lender to sell the home for less than they still owe on the mortgage. The second type is the REO (bank-owned) home, which has fallen back into the hands of the lender after the sellers defaulted.

While these properties may be appealingly priced, home buyers need stomach and smarts to take proper advantage. If you’re thinking of buying a short sale, focus only on those with a price pre-approved by the lender. Otherwise, you may be wasting precious time in negotiations that may still ultimately fail.

Also seek out foreclosure homes for sale in Miami that are protected by the Cash For Keys program. This program offers the current (or former) home owners a cash incentive to prevent them from neglecting the property before vacating it. Either way, inspections are crucial, especially if the house has been vacant for some time. Talk to your real estate agent about having the utilities temporarily reconnected for the inspection, so you’re sure all is in working order.

And finally, don’t focus on the asking price alone. Location in a declining neighborhood or extreme maintenance and repair issues will eclipse any perceived value in a low price. Great homes are out there at bargain prices, but let an agent guide you through potential pitfalls.

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How Your Home Can Attract Potential Buyers like Moths to a Flame

Selling your Miami home? No matter what time of the year it is, you better do some “spring cleaning” to get your home ready. It’s essential to take care of the details, both inside and out. Since potential home buyers first see your property from the street, there are steps you can take to pique their interest in seeing more.

Obviously, color makes an impact. Emphasize two or three colors in your flowerbeds and shrubs, and coordinate your blooms with the seasons. Also, make sure your trees and shrubs are properly sized to the house and grounds, and not blocking any of your home’s positive features.

Perfectly maintaining your lawn is critical when you’re listing homes for sale in Miami. A well-manicured lawn powerfully symbolizes your pride of ownership and attention to maintenance. You can reduce the time invested in mowing and watering if you can do some simple landscaping with rocks, ornamental grasses and drought – tolerant plants.

The sound of water also turns home buyers on. Even if you don’t have a pond, you can achieve the same effect by installing a small fountain in the front yard, or even running an electric fountain on your porch or deck.

Finally, there are a couple of architectural flourishes that add interest, such as colorful window boxes, a trellis with flowering vines, or even a pretty new mailbox. Contact your real estate agent for a wealth of other home selling tips to attract buyers.

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Thinking about Buying a New Home? There’s a First Time for Everything

First time buyers are… excited to find a good deal, afraid of overextending themselves, confused by all the conflicting reports about real estate. Well, that might describe any or all home buyers right now, but those making their very first purchase may feel elevated levels of all these emotions. It helps to have someone offer you some guidance.

Don’t be afraid to make your move now, regardless of what you’ve been hearing about the Miami real estate market. With affordability so high, you’ll find a flurry of activity out there, so you’re not alone in making the right decision to begin your search for homes for sale in Miami / Palmetto Bay.

Just try not to exercise excessive caution, or you may suffer what has been termed “paralysis by analysis.” Your real estate representative will present you with all facts and figures you need, and help you to interpret the data so that you can make a sound choice.

Now is not the time to vacillate about whether prices or interest rates will still drop. There is nowhere to go now but up. If interest rates rise to 7.5% (still historically low), the home’s price would have to be reduced nearly 20% to offset the difference in monthly payments.

Set aside your uncertainties. Chat with a real estate agent who can help you determine your financial footing, and show you an inventory of well-suited Pinecrest / Palmetto houses for sale that are matched to your particular goals.

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How to Secure Home Repair Financing for Bank Owned Foreclosures

You find a neat “fixer-upper,” then learn that banks won’t lend until the repairs are done, but the repairs can’t be completed until the house is purchased! This Catch-22 scenario can be solved by HUD’s FHA 203k rehab loan, growing in popularity because so many foreclosure purchases are in dire need of repairs.

Under the 203k rehab loan guidelines, you can obtain financing to cover the price of the property, plus money to cover the home remodeling costs, up to a maximum of $35,000! To get the ball rolling, you’ll need funds for the 3.5% required down payment, and then find a suitable property. Your real estate representative will prepare your offer, stating that you’ll be seeking 203(k) financing.

Next you’ll apply to an FHA–approved lender, including a list of each home repair and its cost. Finally, an appraisal is performed to determine the home’s value once the proposed repairs are complete.

Upon approval, you’ll have financed the home purchase plus all your proposed repairs (there’s even a 10% -20% “contingency reserve” included to cover any unforeseen improvements). At closing, the seller receives the purchase price, and the remaining funds go into escrow, to be disbursed to the contractor as work is completed (within six months).

Real estate agents support the FHA 203k loan rehab program because it expands home ownership and revitalizes neighborhoods. But all you need to know is that it will get you into a very affordable home right now.

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What a Relief - Taking Advantage of the Capital Gains Exclusion

This year’s tax filing season is behind us, but if you sell your Miami home this year (or any other, for that matter), you’ll find your home will shelter your taxes as well as your family. Specifically, the Taxpayer Relief Act of 1997 provides a substantial capital gains exemption when you sell.

In general terms, upon selling your home, the IRS allows you to keep capital gains – tax-free – of up to $500,000 (married filing jointly) or $250,000 (single taxpayers). That’s right, no taxes on your gains, if you qualify.

It’s fairly simple to qualify, with the most important requirement being that you’ve lived in the home for two of the last five years. And this is a capital gains exclusion you can claim again and again, theoretically every two years!

There are even provisions if you are forced to sell before you satisfy the two – year requirement, for reasons such as job change, illness, divorce, disaster or others. The capital gains exclusion is simply prorated in these cases.

For example, if you live only one year in your Miami home before being forced to sell early, you can exclude up to one-half of the normal limits from capital gains taxes (up to $250,000 instead of $500,000 for married taxpayers filing jointly). As always, consult your tax professional to discover how to maximize the benefits of home ownership.

Team Morgan
Coldwell Banker Real Estate
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What a Relief - Taking Advantage of the Capital Gains Exclusion

Mike & Lynda MorganRealtor Associates

Mike & Lynda Morgan
Realtor Associates