Rob Rahter

Me again!

Rob Rahter — Fri, 23 Jul 2010 11:50:00 GMT

Well, it's been awhile since my last post but what a summer it has been! Very busy out there and lots of good deals. People are always asking ... "how's the market?" And my response is always the same, "Why do you ask?" For buyers - either investors or end-users - the market is GREAT! For many sellers, well, maybe not so great. While inventory, especially in the under $300,000 mark has been drastically reduced, prices are back down to 2003 levels in most areas. That's tough to swallow for those who bought their home anytime between 2004 and now. And everyone else seems to be kicking themselves for not selling in 2006! But the beauty with real estate is the market WILL recover. People still need homes and people still have jobs. Hot areas are still hot and homes in Grade A school zones are still in demand. I hope to hear from you soon!

Rob Becomes a Member of The Institute for Luxury Home Marketing!

Rob Rahter — Sun, 25 Apr 2010 03:19:00 GMT

The Institute for Luxury Home Marketing is the source for training, certification, and networking opportunities for real estate agents working in the luxury residential market.

Our Members Set the Benchmark for Luxury Home Marketing.

The Institute for Luxury Home Marketing exists to help buyers and sellers of luxury homes and estates find real estate professionals who specialize in the luxury home market and have completed extensive training to build additional competencies.

Members of The Institute actively seek out the latest information in marketing strategies, stay on top of changing market conditions, and know how to handle the special needs of an elite clientele and their exceptional properties.

Recognized as the mark of accomplishment in luxury markets around the world, The Institute's Certified Luxury Home Marketing Specialist (CLHMS) designation assures affluent buyers and sellers that the agents who have earned it have the knowledge, experience, competence, and confidence they require.

Members of The Institute who hold the CLHMS designation have documented performance in the TOP 10% of their markets, and have successfully demonstrated their expertise in the luxury home and estate market.

LUXURY HOMES by KELLER WILLIAMS comes to Windermere/SW Orlando!!!

Rob Rahter — Thu, 04 Mar 2010 02:01:00 GMT

I am very pleased to announce a new standard of excellence in real estate! Introducing Luxury Homes by Keller Williams – an exclusive division comprised of experienced and specially trained agents who excel in the local luxury home market. This elite network of luxury consultants is hand selected and production-qualified to maintain only the highest levels of service. As a top producing agent at Keller Williams Classic Realty, I am honored to unveil this new division to Southwest Orlando. Luxury Homes by Keller Williams is truly unmatched in the industry. We offer our clients the feel and attention to detail normally associated with “boutique brokerages” but with the backing of one of the biggest names in real estate. That distinction gives us market leverage, financial strength, top-notch continuing training, and a tremendous networking and referral system. And at Keller Williams, exceeding our customers’ expectations is part of our culture. We were recently recognized by J.D. Power & Associates for delivering the highest satisfaction for home buyers among full service real estate firms two years in a row! And while other real estate companies are shrinking, we’re growing – already the 3rd largest in the United States and quickly on track to become the new industry leader. In addition to the Luxury Homes by Keller Williams advantage, I am one of only a select few ‘Featured Homes’ agents on Realtor.com–and perhaps the only agent to own that top position in both Windermere and Dr. Phillips. That exclusive positioning gives me the highest profile possible on the world’s #1 real estate search site – which is why my listings are viewed an average of 500% more than other agents’! Now that’s exposure! In addition, my preferred internet positioning will post your home prominently on The Wall Street Journal, Trulia, Google, Yahoo, Homefinder.com, Zillow.com, aol.com and many other top real estate websites. I invite you to learn more - click on the LUXURY HOMES icon on the upper right corner of my home page on this website!

Pendings Outnumber New Listings!!

Rob Rahter — Tue, 20 Oct 2009 18:11:00 GMT

Call it another good sign the housing market has turned a corner. I noticed today, for the first time in a long time, that the number of pending sales are outnumbering the number of new listings in the areas of Windermere, Dr Phillips, and even MetroWest. A good sign indeed! It’s not a big spread but certainly a nice indication that the local market has truly bottomed out.

Short Sales Getting Tougher

Rob Rahter — Tue, 13 Oct 2009 01:52:00 GMT

Banks are backing away from short sales, forcing sellers to pay extra at closing or demanding a promissory note for the amount due. One-third of borrowers owe more on their mortgages than their properties are worth, according First American CoreLogic. When their situations were really tough, most banks preferred short sales because they were their best opportunity to get the most money back. But with an improving economy, and because the losses on many of these properties have already been written off the books, banks are increasingly reluctant to negotiate a short sale. Today, banks demand 9.5 weeks to respond to a short-sale request compared to 4.5 weeks a year ago, according to research firm Campbell Communications. The banks’ reluctance is frequently stymieing sales and frustrating real estate practitioners. “It drives me up a wall,” says Robert G. Hertzog of Summit Home Consultants in Phoenix. “(The bank is) holding my client hostage.” Source: BusinessWeek, Christopher Palmeri (10/09/2009)

Three Great 'Signs of the Times' in Real Estate!

Rob Rahter — Tue, 25 Aug 2009 02:05:00 GMT

Check this out:

- Mortgage rates for Aug. 2009 are at 5.25 percent, down from 6.5 percent the same time last year.

- Affordability remains favorable with the median mortgage payments requiring just 16 percent of the average income.

- Home sales are up 17 percent from July 2009, boosting the median home price for June up 3.6 percent to $181,000.

Click here to watch THIS MONTH IN REAL ESTATE:

http://www.youtube.com/watch?v=6O-UFD5q-HI

What are you Waiting For?

Rob Rahter — Tue, 28 Jul 2009 17:20:00 GMT

Have you heard? The market is stabilizing – and we’re seeing evidence of it across the board. The Standard & Poor’s/Case-Shiller home price index of 20 major cities shows the first monthly increase in almost three years. In Orlando, home sales are up 43% compared to June last year. Sales are up so much our inventory is down to just over 8 months – a 6 month supply is considered by economists to be a balance between buyers and sellers. True, bank owned and short sales are still pushing the numbers up - 46% last month were distressed sales – but those are homes that are no longer available and homes that have helped neighborhoods set a bottom for prices. And those of us who watch the market daily see a sizable difference in the number of homes available. Neighborhoods that just recently had multiple listings are down considerably. Take Summerport in Windermere for example. I remember just a short while ago when the number of homes for sale was closer to 60. It’s now down to 27 … and a whopping 42 homes pending!! That’s just single family homes – does not include townhomes. In Clermont, take Lost Lake: right now there are 8 homes on the market and 7 homes that are sale pending. That’s a very tell-tale sign that the inventory is evaporating … and remember back to Economics 101: what happens to prices when supply drops?

Time to Zag!

Rob Rahter — Wed, 08 Jul 2009 12:25:00 GMT

Thanks to Realtytrac for this:

BARGAIN HUNTERS SEE BOTTOM

Ask a group of real estate millionaires how they made their money and most will recite some version of this axiom: “When everyone zigs, you zag.” In today’s downward real estate market the axiom simply translates into buying property when most others are not — and that’s exactly what Tommy Barone and his clients are doing.

Vultures Flock to Florida

Barone, a real estate agent with Condo Vultures Realty in Bal Harbour, Fla., said bargain hunters from around country and the world are flocking to Florida to buy condominiums that have suffered steep price declines amid the housing glut. He believes the South Florida condominium market — where about 23,000 condo units are currently for sale — has reached the bottom and is poised to take off soon. “Snowbirds from Canada, New York, Ohio and the Midwest already know the deals are here,” said Barone, who’s working with several foreclosure investors in condo deals in numerous South Florida developments. “We are starting to get calls, and the buyers are beginning to descend on South Florida.” Frank Marrero, one of Barone’s real estate investor clients from New Jersey, is among those swooping into distressed residential waters, responding to the deep price cuts in South Florida. Marrero, a foreclosure “bottom feeder,” has purchased 10 foreclosure properties in the last eight months — two in Miami and eight in Naples, Fla. Propelled by low-cost foreclosure sales and accelerating price drops, Marrero is snapping up deeply discounted properties in Florida’s hardest hit coastal communities. “I look for sellers that are bleeding,” said Marrero, a banker by trade who is buying and holding his newly purchased foreclosure properties. “Once I find them, then I wait until the owners start hemorrhaging red ink. That’s when I buy.” He said he looks for properties that have “value” and “good quality,” favoring bank-owned distressed properties. As a banker, Marrero knows how the lenders think, giving him an advantage at the negotiating table. “I team up with people like Tommy and look for good deals,” he said. “In January, for example, I bought a condo in downtown Miami. The seller wanted $400,000. They were bleeding, but they weren’t ready to discount. Many of these sellers are trying to recoup their deposit. So we waited. They started hemorrhaging money. Then we came in and bought it for $340,000 — a 15 percent discount.” Peter Zalewski, founder of Condo Vultures, said: “No one knows where the bottom of the market is, but we do know that sellers have shaved an average of 22 percent off their original pricing in coastal South Florida.” Prices have declined, but the housing market still has a ways to go before it begins to stabilize significantly, said Zalewski. Zalewski, Barone, Marrero and other real estate experts said that Florida is a microcosm of what’s happening nationwide, where once-hot real estate markets have suddenly cooled and bargain hunters are stalking the deals.

Yes! Now You CAN Use the $8,000 As A Down Payment!!

Rob Rahter — Tue, 30 Jun 2009 18:01:00 GMT

This is what many of us have been waiting for! Check out this article in the June 30th Orlando Sentinel:

Florida offers help to some with home down payment

By Mary Shanklin

Sentinel Staff Writer

June 30, 2009

Starting Wednesday, Florida hopes to stoke its real-estate market by becoming one of the few states to offer $8,000 in down-payment assistance to qualified homebuyers so they can benefit upfront from a new federal tax credit.

The state Legislature set aside $30 million to create the Florida Homebuyer Opportunity Program, aimed at first-time buyers and others who have not owned a home for at least the past three years. To qualify, an individual cannot earn more than $75,000 a year, while couples can't earn more than $150,000.

"Here in Florida, rather than qualified buyers waiting to get the tax credit on the tail end of the process, in the form of a credit after they have filed the tax returns, it will allow them to get it upfront and let them use it for down-payment assistance and fees," said David Hart, vice president of legislative and government affairs for the Florida Home Builders Association. He estimated that about five states are taking a similar approach.

The state's program takes effect Wednesday, though the money isn't expected to be available until later in July or August. The funds are being distributed through local government and nonprofit agencies that already provide down-payment help through the State Housing Initiatives Partnership, known as SHIP. Qualified homebuyers are entitled to $8,000 or 10percent of the property's purchase price, whichever is less.

18 months to repay

Buyers who receive a down payment must file for the tax credit on their federal tax return next year and then repay the agency that lent them the assistance, according to the program, which was proposed by state Sen. Mike Fasano, R-New Port Richey. The program gives buyers who qualify and get funds 18 months in which to repay the state, which allows them plenty of time to realize the benefits of the tax credit, part of the federal government's massive stimulus package, the American Recovery and Reinvestment Act of 2009.

The state program is intended to boost Florida's slumping housing market. While the number of existing-home sales locally and statewide have been up for months now compared with a year ago, prices continue to be down 30 percent or more year-over-year depending on the market, according to the Florida Association of Realtors.

To receive the state's down-payment assistance, the buyer must close on a property by the end of November. Housing agencies are still working out the details of how to distribute the funds, and state officials caution that four or five months is a relatively short time in which to qualify, find a home, obtain a mortgage, close on the property — and use the money. Qualified buyers who do not take advantage of the state program may still take the federal tax credit, which is currently set to expire in December.

Some local homebuilders are hopeful the state's decision to convert the tax credit into upfront money will help spur the slumping market. George Glance, who oversees operations for KB Home in Central Florida, said that, while historically low interest rates and falling home prices are enticing many first-time buyers into the market, many of them struggle to come up with a down payment.

"Allowing the federal tax credit to be used toward a down payment would be a great advantage to a first-time homebuyer trying to obtain the dream of homeownership," Glance said.

One consumer advocate considers the state program flawed, however, because of the way the state is distributing the money. Walter Dartland, director of the Consumer Federation of the Southeast, said he fears some Florida cities and counties will run out of cash before the end of November, even as others wind up with excess funds that won't get used.

Will it be used?

"Each county or municipality gets a share of the money. In smaller counties, no one is going to buy any houses — there're so many for sale," Dartland said. "The concern I have is that it won't be used. If there's any money left on deck, it won't stimulate anything."

He proposed that the money all come from a single, statewide pot. But state officials said they must abide by rules set by the Legislature, which call for the funds to be distributed through local housing agencies.

Time to Sell! Yes, NOW!

Rob Rahter — Sat, 27 Jun 2009 13:45:00 GMT

Thinking about selling your house? Then list it now! There are several reasons why- I’m going to give you three- with the biggest being the usual one: school starts soon and that brings an end to the traditionally busy selling season. Many buyers have a goal of being in their new house by the start of school. To time that correctly, sellers need to subtract a minimum 60 days from the first day of class. In Orange County, that’s August 24. (Typical time from contract to close is 30 days, and the other 30 days is best-case scenario to sell.) That puts the magical ‘cut off’ date to sell by the start of school in Orange County … as June 24^th! You’re already too late! And this year, here’s the second reason why you need to list sooner than later: December 1^st. As of this writing, homes must close by December 1^st to be eligible for the $8,000 first-time buyer tax credit. Whether you’re selling a home that would be an option for a first-timer or you are selling a home that would be considered a “trade up” home, don’t underestimate the impact that wave has on the lower-end priced homes in the market. Maybe the December 1^st deadline will be extended – but as of right now – that has not happened. The third reason why you should list now: interest rates. Have you noticed? They’re going up! And most industry watchers do not think they’re going to be coming down anytime soon. Yes, the ‘glory days’ may soon be a memory.

And if you’re waiting for the value of your current house to come back to where it was a couple of years ago – big mistake. The value of the house you are going to buy is going to go up too – and if that new house is bigger and in a better area than your current home, which home do you think will appreciate faster? Let’s say that house appreciates $50,000 in the same time yours appreciates $10,000 or $20,000. Don’t make the same mistake twice. One school of thought I heard is … anyone who thinks they’ll be looking to trade up to a larger home anytime in the next 5 years, needs to be doing it now! And appreciation is the reason why.

The Word On The Street

Rob Rahter — Mon, 08 Jun 2009 01:43:00 GMT

I was listening to a colleague on the radio yesterday talk about the local real estate market and what he is seeing “out there” – from trends in what clients are saying to frustrations everyone in our business is experiencing with short sales. And I have to admit, everything he said I thought was dead on. We’re all seeing the bottom of the market – meaning homes priced under $300,000 – really seems to have hit its bottom (at least in the Southwest Orlando neighborhoods.) The bank-owned deals are being snapped up quickly and the quality distressed properties really are selling at a quick pace. Sure there are some out there that still haven’t sold but the homes that are priced correctly are indeed selling. The problem for first-time buyers – and yes, the $8,000 tax credit is doing its job and getting those ‘fence sitters’ to make their move – is that it pits first-time buyers with seasoned “cash” investors. It’s like putting the minnows in the same pool as the sharks! The investors are out for blood and know a good deal when they see it. Many times though that “good deal” is a first-timers’ dream home! It puts them at an unfair advantage when it comes to an investor who often puts in cash offers OVER the asking price – against a first-time buyer who is trying to come in below asking. While it is true that money is made in real estate when you buy – not sell – a good house will sell quickly and an investor knows an extra $10,000 in the real estate world is money well spent if the house is the right on the money. The National Association of Home Builders estimates that the tax credit will stimulate 160,000 home sales nationwide — 101,000 of which will be by first-time buyers. Fifty-nine thousand homeowners will then be able to buy another house because a first-time buyer purchased theirs. As for what’s next – we’re hearing another 700,000 homes will hit the national market in the next ‘wave’ of foreclosures … and those homes will likely be the more expensive homes. That of course will erode the higher price points and bring home values in the higher end of the markets down even more – but we think the bottom is very well established at this point. One of the big concerns most of us on the street have is with interest rates. They’ve already been creeping up and with a Democratic-controlled Congress most expect the rates to keep heading north. Which means these historic conditions really will be gone sooner than you may think.

Can I Use My $8,000 Tax Credit for My Down Payment?

Rob Rahter — Fri, 05 Jun 2009 11:05:00 GMT

Lots of people have been waiting to learn whether they can use their $8,000 First-time Tax Credit upfront. Well now we know the answer: yes and no. Yes you can use it up front but no it cannot substitute a down payment. Read more:

____________________________

WASHINGTON — The Obama administration has put out the official word: Starting soon, first-time homebuyers nationwide will be able to turn their $8,000 federal tax credits into cash for use at closing if they use Federal Housing Administration mortgage financing.

But in its final guidelines to lenders and homebuyers issued May 29, the Department of Housing and Urban Development clarified that purchasers obtaining FHA loans through private lenders will have to invest at least some of their own funds in the form of a minimum 3.5 percent down payment.

In other words, you'll need equity in the house to participate. This won't be a zero-down plan, with one exception: If you obtain your FHA loan through one of the state housing agency "tax credit monetization" programs, you'll be allowed to pay for your entire down payment with the help of a bridge loan provided by the agency. Those bridge loans generally are low-interest or no-interest short-term second liens secured by the property, and convert into second mortgages if they are not paid off with the proceeds of the tax credit.

For FHA lender-supplied cash advances, you'll be able to use the $8,000 credit — or whatever size credit you qualify to receive — for settlement fees, escrow charges, higher down payments or to "buy down" your interest rate to cut monthly payments.

How will this all work in practical terms? How do you apply? Here's a quick guide:

To start, you'll need to qualify as a first-time purchaser under the generous definition permitted by Congress — that is, you cannot have owned a principal residence during the previous three years, and your household gross income cannot exceed $95,000 for single taxpayers or $170,000 for married couples filing jointly.

To get the process rolling, you'll have to write a contract on a house you can afford to buy and apply for a mortgage through an FHA-approved lender. That shouldn't be difficult, since there are more than 12,000 lenders with that designation. Large banks or bank-affiliated mortgage lenders are more likely to be geared up for the program in the near future, according to industry experts. Homebuilders, who have advocated credit monetization programs for months, are likely to be major participants. But get moving on house shopping as soon as possible, since the tax credit program requires all eligible purchases to be closed no later than Nov. 30.

Besides the usual mortgage application information, the lender is likely to require some extra paperwork from you, based on FHA guidelines:

• A filled-out IRS Form 5405, which is your request to the federal government to send you a tax credit check. You can file an amendment to your 2008 return and get the credit within a matter of weeks, or you can file for it on your 2009 taxes. Most buyers are expected to opt for the amended return route. Form 5405 is available for download at www.irs.gov.

• Proof that you have no outstanding civil judgments, liens, unpaid taxes or other obligations that could reduce or eliminate the tax credit you're seeking.

• Confirmation from your employer that you are not subject to wage garnishments, which could also affect the amount of the credit.

To compensate for providing you tax credit money in advance, your lender will be strictly limited on what it can charge. According to FHA guidelines, fees must be "reasonable" and "nominal" — generally no more than 2.5 percent of the expected tax credit. For example, if you're in line to receive the full $8,000 credit, that would mean that the most you could be charged for the cash in advance typically would be $200.

A senior HUD official said the agency wants to keep these fees as low as feasible to avoid abuses or gouging, and will be monitoring transactions to make sure participating lenders are adhering to the guidelines.

Though many lenders are not yet up to speed on the new monetization program, at least some say they are enthusiastic about taking part. Scott Stern, chief executive of Lenders One, a national cooperative of more than 125 mortgage firms and the ninth-highest-volume loan originator in the country, said "100 percent" of his member firms will offer the monetization once they digest the administrative details.

"We think it's a great thing to simulate the economy and get housing moving again," he said.

Bank-owned Properties: READ THIS!

Rob Rahter — Thu, 28 May 2009 17:33:00 GMT

So you've heard that bank-owned deals are just too good to pass up. And in many instances, that is true. But if you've heard that bank-owned homes in our area are selling for 50-cents on the dollar, well that's not really the case. (They may be selling for 50-cents on the dollar from what the previous buyer paid - but not half-the current market value!) Here's the REAL STORY on bank-owned homes in our area. They are selling within 96% of list-price so low-ball offers are generally a waste of time. And if a house has been on the market 14 days or less, many banks will not even look at the offer if it is not full price. The average days on market for a bank-owned house is 28 days so they really are selling, despite what you are hearing. And 51% of bank-owned (REO or real estate-owned properties) are selling for cash - only 20% are being sold to FHA buyers. So investors are still king when it comes to REOs.

Mass auctions of foreclosed homes not as successful as billed

Rob Rahter — Mon, 18 May 2009 11:48:00 GMT

This is a great story on home auctions that appeared in the St. Petersburg Times.... and I can testify from my own experience with auctions, this is EXACTLY right on! Obviously some houses are selling - or the auctions wouldn't be in business - but the overwhelming appearance that a mass number of homes selling at fire-sale prices is quite misleading. Enjoy:

Mass auctions of foreclosed homes not as successful as billed

http://www.tampabay.com/news/business/realestate/article1001159.ece

'Fiat Home Buyers' Shift Market Into High Gear

Rob Rahter — Sat, 09 May 2009 02:46:00 GMT

This week the Italian automaker Fiat agreed to take a 35 percent stake in Chrysler – the struggling automaker forced to seek a federal bailout in order to simply survive. From the New York Times: “The speed and terms of the Chrysler-Fiat talks illustrated the emergency facing Chrysler, which was willing to give away more than a third of the company, essentially free. Yet the deal offers assurance to the Treasury Department and to the auto industry that Chrysler is attractive enough to find a partner.”

“For Fiat, the deal could mark a return to the only global market where it does not compete. Once the largest automobile company in Europe, Fiat has faces a series of challenges there in the last two decades from stronger rivals like Volkswagen, although it has strong global operations, including plants in China and South America.”

So what does this mean for real estate? Consider this same scenario happening just five years ago. The idea of Fiat taking a 35% stake in an American automaker was almost laughable. Now think about the number of home buyers – first time or step-up buyers- who five years ago may have thought their dream home was nothing more than that: a dream. They were the Fiat of home buyers, if you will! But now, given the current market and the $8,000 tax carrot being offered, the Fiats of the world are getting the big break they could have only dreamed of a few short years ago. Talk about shifting the market into high gear! Fiats of the world: seize the moment!