Melbourne Real Estate News, Brevard County Florida by Sandy Shores Melbourne FL Realtor

I take pictures as I enjoy sharing them with others. If you would like to use one of my photos, please ask, I am usually happy to oblige, however I would like to receive mention of having taken the picture.

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

This week a client was referred to me that wants to buy a house. 

During our initial phone conversation, one of the first things I always ask is whether they have a lender and are pre approved for a loan. 

He indicated that he did have a lender, that he found online. (Uh-oh).  And, that he was preapproved. The Brevard County Real Estate market is considered a distressed market.  It is so important for a buyer to have a local lender and a local appraiser that understands our market.  

My next question was whether or not he had received a Good Faith Estimate from the lender.  He had not. (Uh-oh #2). Every buyer should be provided with a Good Faith Estimate when being Preapproved for a loan.  This gives the buyer an estimate of his closing expenses and prepaid expenses.  It will also provide an estimate of his monthly mortgage payment amount and his anticipated interest rate.

The buyer gave me his lender's long distance and toll free phone numbers (uh-oh #3) as I always talk to the lender at the beginning of a transaction, before we head out to look at any houses.

I called to get more info from his lender. I called 3 times in 2 days (uh-oh#4) with no response.  His voice message said, "I will return your call in the order in which it was received."  (uh-oh #5).

I have to know what type of loan he will be financing the house with, so I know what type of home he can buy. I finally found that this buyer is purchasing with an FHA mortgage, with a 3 1/2% down payment. So, he won't be able to purchase a home that requires extensive repairs. The roof has to be "newer" and so does the air conditioning system.  There typically can't be broken windows. The house must have heat and a stove and it typically cannot be in some phase of remodeling.  If this buyer was getting a conventional loan with 20% down he would be able to look at completely different properties, as there would not be many restrictions on what he could buy.  In paying cash, a buyer could purchase any home he wants.

When I was talked to the lender, I received the Good Faith Estimate (as did the buyer).  My teeth nearly fell out of my mouth, when I looked at the figures. (uh-oh #6). The fees were some of the highest I had ever seen. The interest rate was too high, the estimate was full of unnecessary junk fees.  I couldn't believe my eyes!

I recommended this buyer get additional estimates from LOCAL lenders to compare fees.  I know that he can do much better than what he was quoted. 

In this market, as Patricia Kennedy pointed out, in a recent post she wrote, not only is it important to come in with a strong offer to purchase a house, but, listing agents also look at the pre approval letter with the lender info to determine whether they will accept the offer.

If a buyer winds up in a multiple offer situation, which many buyers here in the under $125K price range do, the best offer is going to be choosen based on which one has the best chance of getting to closing. Here in our market the listing agent often times wants a local, reputable lender, that knows the market, that has a processing center right here in town. They know if they tell us, upfront, that they can do the deal, then they can do it. They want the smoothest transaction possible, that won't get snagged or delayed. They don't want any surprises.

In our market, a nameless faceless lender, with exorbinant fees and a long distance or toll free number, that doesn't return phone calls, from somewhere across the country, is not going to help your offer along, to get you the house that you want to buy. 

If your offer is accepted, will they be able to get you to closing?

All lenders are NOT alike. And, all online lenders are NOT alike.

Get a couple of estimates and talk to a couple of lenders.

Be sure you do your homework BEFORE you head out the door to look at houses. 

FOOTNOTE: I later found out, after the buyer talked to a local lender, that he is self employed. The buyer indicated that he had not discussed his employment situation, nor the fact that he had recently opened a new business during his interview with the online lender. So, now, I am waiting to hear whether this buyer will be able to buy a house at all!

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

It seems almost impossible that Fall is already here.

But, I love the Fall, when the air is crisp and clean and the leaves begin to change color and drop from the trees. Being in Florida we feel less humidity. The cool air starts creeping in.

But, I can't help but wonder, where did the time go? 

Summer was here and gone in a blink.

I was in the store yesterday and the shelves are bulging with Halloween and Christmas items - oh my goodness - not already. Christmas, not so fast!  I'm not ready yet!

I wake up on Monday morning and when I fall into bed, it's Friday night already.  The weeks just fly. I suppose it has nothing to do with having two very active teenage daughters, rental properties and two businesses.

I have always been told that the older you get, the quicker that times goes.  I can't imagine it moving any faster than it does.

So time, please slow down, I want to stop and remember to smell the roses.

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

I take pictures as I enjoy sharing them with others. If you would like to use one of my photos, please ask, I am usually happy to oblige, however I would like to receive mention of having taken the picture.

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

I was listening to the radio earlier today about the power of suggestion. 

The host was talking about test case studies done on individuals with sugar pills.  They indicated that groups of people were told they would be given a pill that would cure a specific ailment.  Different pills were given for different illnesses. Some were given an actual prescription medicine, while others were given a sugar pill, a placebo.  

When giving the sugar pills they indicated that different pills stimulated different responses in patients. For instance, very small pills, given several times a day were perceived by the test patients as strong, effective pills. However, when the small pills were taken only once or twice a day, they were perceived as ineffective.

Red pills were given to patients who were told that they were stimulants, because of the bright color. 

Blue pills were used as tranquilizers, pills that provide a calming effect.

White, larger pills were called antacids.

Perceptions varied based on the size, shape and the color of the pill, as to whether the unknown placebos/sugar pills given to the patients were considered effective.  I suppose you wouldn't give a patient a bright red pill and tell them that it was a tranquilizer. Maybe that's why the last ibruprofen tablet I took was bright red and bright yellow, to make me think that it would slow down and then stop the pain.  It makes sense.

In studying placebos it's interesting to take note that the mind is a very powerful tool.  The power of suggestion is very strong for many people, as so much of the research has found. 

I couldn't help but make the correlation to the real estate market. Depending on who you talk to, different people will have very different perceptions of the real estate market, based on their knowledge, experience, or lack thereof, what they've heard, who they've talked to and so many other factors.

Some opinions are based strictly on what someone heard on TV or what one person told them.

That's why opinions vary so much on what is really going on in the real estate world.

How many opinions on the real estate market are based on fact and not on emotion?

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

Recently, I was out with a client, looking at condos. We were only looking at a few properties and the client had one day to look. I called for appointments ahead of time. One company had to wait to hear back from their owner, to be sure the owner was home to let us in, as there was no lockbox on the property.

Time was of the essence, so, I contacted the listing agent.  She said she would see what she could do.  She promptly called me back to tell me that the owner had been called out of town, but that the maid was just leaving the property and she would leave the door open for us. 

We looked at a couple of units, and headed over to the property...the door was locked.

This is one of the reasons I don't like it when I hear that the door will be left open. Often people don't remember.  I contacted the agent. She was gracious, apologized and said that she did not have a key for the property, and there was nothing she could do. 

I couldn't help but think of sellers without lockboxes on their homes.  They are missing out on opportunities for their property to be properly marketed. Buyers want to look at a property on their schedule, not on the seller's schedule.

We still have an abundant inventory of homes for sale in our area.  Competition in our market is tough.

I've had my sellers tell me that they don't want a lockbox on their home. And, I understand there are circumstances that a lockbox won't work for every situation. But, the more easily a buyer can get in to see a property, the more chance it has of selling.

They won't make an offer if they can't see the inside.

And often, buyers are not in a position to reschedule to come back another day.  I've had buyers say, 'if I'm making another trip out here tomorrow, it better be worth it.' Sometimes the buyer raises his expectations of the home, because he may feel inconvenienced.

So, to all you serious sellers out there...

...Let's get a lockbox on your home, So we can show it, and Bring you an offer!

Because, if a buyer can't see your home, he can't buy your home!

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

I take pictures as I enjoy sharing them with others. If you would like to use one of my photos, please ask, I am usually happy to oblige, however I would like to receive mention of having taken the picture.

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

According to the Melbourne Association of REALTORS here in Brevard County Florida Real Estate Statistics for August 2009 are as follows:

For single family residential units:

There were 554 new listings.

This is a decrease of 7.82% from August 2008 of 601 new listings.

Year to date in 2009 there have been 4695 new listings.

Year to date in 2008 there were 6237 new listings.

There were 298 sold listings.

This is a 4.40% decrease from August 2008 of 312 sold listings.

Year to date in 2009 there are 2459 listings sold.

Year to date in 2008 there were 2188 listings sold.

The average sale price in August 2009 was $152,161.

This is a decrease from August 2008 of $186,397.

Average days on the market were 127 days.

This is an 8.55% increase from August 2008 of 117 days.

For all properties, including single family residential, condo and townhouse:

There were 869 new listings.

There were 365 sold listings.

Average sales price was $152,161.

Average days on the market = 127

Types of financing used:

106 conventional financing

155 cash

 92 FHA

 26 VA

  2 Exchanges

  1 Owner financing

This article is authored by

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County Real Estate & Investing

I also buy, sell, rent, own and manage Investment Property.

Tonight the Satellite High Scorpions will be playing the Eau Gallie High School Commodores in high school football.

Game time is 7:00 and will be at Satellite's home stadium.

I can't wait to see this game. Growing up, my husband attended Satellite High School and I attended Eau Gallie High. 

This year our daughters are at Satellite High.  I am rooting for the Scorpions. 

But, I still wish Eau Gallie luck in the game.

Last weekend Satellite traveled to Celebration Florida to play the Celebration Storm. 

Satellite won 44-0. 

This was a great way for the Scorps to start their  season.

All military personnel will get in FREE in honor of September 11th!