Jacksonville FL Real Estate Update

So, I open my paper this morning (well, not exactly -- I visited the online site of the local paper) and was greeted with the following headline: 

Blacks Likely to Pay More for Loans

Blacks and Hispanics are more than 30 percent more likely to receive higher-rate subprime loans than whites, study shows.

Not that this is 'new' news for those of us who tend to stay on top of anything and everything real estate related but I did wonder if there was some sort of new twist on the whole theme so I read the story. Certainly if you stopped after only reading the headline, you would think its just a fact - if you are black or hispanic get ready to pay through the nose for a mortgage. But, that's not what the story was saying per se. In fact, it went on to present where the data came from, how it was determined and what it may and may not mean. It was a pretty fair, objective story. But you wouldn't have known that from the headline.

Now, my objective is not to judge the study, minorities and lending, or even our role as REALTORS in the whole lending process. I'm not qualified to pass judgment there, but I do have an opinion of "news stories" in general. I take what I read with a grain of salt - even when reading my own material (LOL). Two things prompted my interest in this topic:

1. Something that was written in another blog yesterday (I don't remember who wrote it but I do remember agreeing with her). The writer was discussing how the media often paints an unfair picture of us (agents) and what we do. Granted, we have enough unethical folks among us to simplify their task but the fact of the matter is that the vast majority of us are conscientious, hard-working, well educated professionals who are genuinely looking out for the best interests of our clients.

2. I was interviewed by a "journalist" a few weeks ago regarding the increases in homeowners insurance rates in Florida. The "journalist" obviously had an agenda (which I won't go into now) and my answers weren't supporting his agenda. It was almost humorous to watch as he tried to shape my opinion and ellicit a quote that would support his story. He became frustrated with me, began raising his voice and suddenly said that I would soon learn my opinion was wrong and hung up.

Well, I wasn't shocked when his story appeared in the paper a couple of days later without my comments. He called others and got quotes that supported his agenda and wrote the story as if it were gospel.

There is little or nothing we can do to cmbat individual misrepresentations but, I believe it is up to us to, not only live and work in a professional manner at all times, but to also continually accept a role as educators. There seems to be a bit of a move on the part of NAR to help in this regard. I've heard some recent radio ads talking about our role in the community as small business owners and what that means to the community. I hope they (the NAR) plan to expand on this campaign in the future by going into greater depth as to "all" we do - the public needs to know that we don't get paid to simply unlock homes so they can look around and then fill out a few forms so they can purchase them. In fact, that is such a miniscule part of our job that it hardly shows up on the chart... but I'll guaranty you that is all the vast majority know of what we do.

As people in a fast-moving society, we are greatly influenced in our thinking by bits and pieces of info that we pick up here and there. I'm sure more people will stop at the headline of the above mentioned story than will read it in its entirety. It is definitely up to us to fully explain what we do. When our customers know what it is that we are doing for them, they are perfectly comfortable paying us for it. I hope you will join me in making it a part of your daily routine to educate as you work. The more the public knows, the easier our jobs will be.

Mr. Bernanke testified before the Senate this morning and said, "we must take account of the possible future effects of previous actions--that is, of policy effects still in the pipeline. The extent and timing of any additional firming that may be needed to address inflation risks will depend on the evolution of the outlook of both inflation and economic growth."

So... he makes this statement right on the heels of a report that showed that housing starts slowed a staggering 5% in June indicating that the economy really is slowing down. That's not a bad thing, friends... it means the need for continued rate hikes may well be over. Now all you buyers who were concerned (unnecessarily) about increasing rates can start shopping again.

Happy House Hunting! 

Well, it seems to be the same pretty much everywhere - it's definitely true in J-ville, FLA... It's a buyer's market. So it's time for you guys (buyers) to step up to the plate and do your thing.

Sure the market has been a little whacky the past few years and home values (er, prices) have escalated at a meteoric rate. The amusing thing is that while that was going on, buyers were going crazy trying to outbid each other before the "For Sale" sign was solidly in the ground and now that prices have stabilized, buyers are getting cold feet. I suppose it's just the nature of the beast. People get caught up in the fervor of the moment and leave reason behind.

We saw people paying far more than one might have thought reasonable because they "wanted to take advantage of the rising market". Huh?! Sure, that makes sense for the investor hoping to flip for a quick profit but what's that got to do with the typical family of 4.2 (or 3.8 or whatever it is today) that plans on staying in their home for at least 5 years or more? Little to nothing if you look at the market historically. Now, there has been and still is debate on the whole "bubble" thing but I don't know anyone even vaguely familiar with real estate that thought the booming market would continue forever. Right? Sure, it was just a matter of "when" would it level off. But even still, real estate will continue to appreciate if history continues to repeat itself.

So, here we are half way through 2006; the market is "normal" again and I'm hearing people say they're scared to buy. Again... huh?! Okay, that makes sense if you are talking about 'flipping', but there's even still a market for that - you just have to know how and where again. BUT, for the person(s) who currently renting but has the ability to purchase... now's your time, baby! The world is your oyster. Go grab your pearl! Quit throwing money away on rent.

Seriously, if you are a buyer today YOU ARE IN THE DRIVER'S SEAT. Go shopping and make some offers - especially if you're in the market for a condo - there are literally thousands available in all parts of town. Go name your price (within reason) and you'll find a honey - guaranteed!

Oh, what's that you say? The interest rates are high right now? Oh, forgive me; I was around in the 80's so these rates still look darned low to me. Guess that's one advantage of age. LOL

Happy shopping, buyers. Give us a call and we'll do the work for you!

Yesterday, I received a rather ugly reminder; A reminder regarding the importance of regular home maintenance. As I was mapping out my day, making sure all the little ‘fires’ from the day before had been extinguished and that I had my ducks in a row for ‘today’, I heard Susan call out one of those phrases with the power to send a chill up my spine: “Tim, we have a plumbing issue!”  Groan…  

Now, I’m actually pretty handy around the house and generally handle most all maintenance items at home and on our rental properties (when time permits) but plumbing is NOT something I enjoy and plumbing problems don’t appreciate being placed on the back burner… nope, when water is pouring out onto the floor at about 100 gallons per second, someone’s gotta do something and do it fast!

Without going into all the boring details, plumbing issues (for me) always require at least 3 trips to the hardware store and more than one complaint that “I’m getting to old for this kind of stuff” but, unable to get a plumber on short notice I opted to handle the problem myself. (Hopefully I will complete the job today.) 

Now back to the premise of this little rant – home maintenance. More often than not, we find sellers that have not kept up with all the maintenance issues. Not because they didn’t care but just because other things in life took precedence and, as long as nothing goes noticeably wrong… well, “out of sight, out of mind”.  So now it’s time to sell and the seller thinks, “I’ve lived with these little problems why can’t the buyer do the same?” The issue isn’t whether the “can” live with them, but are they willing to “buy” your problems? And the answer is no – at least not at the price you probably want for it and with dozens of other homes just like yours that are in good condition they won’t even consider it at a reduced price. They’ll just move on to the next, better maintained home, on the list because they don’t want to buy “problems”. 

The bottom line is, if you’re trying to sell your home and your agent is telling you that you need to take care of certain maintenance issues, listen to them. They really do know what they’re talking about and they are trying to help you get the most profit from you sale possible. The maintenance issue may only cost you a few hundred dollars but buyers invariably magnify their cost many times over. In their eyes, that $200 repair is going to be a $2000 repair and they wonder what other issues are present that they don’t see. Make the repairs and make your life easier.  

Okay, so now I'm heading back to the hardware store… the good news is, this is my third trip so I must be almost done. J

BORROW ONLY THE AMOUNT YOU NEED AND CAN AFFORD TO REPAY - Just because you qualify for a certain amount of money doesn't mean you can afford to pay it back. Determine exactly how much money you need, borrow only that amount and find out exactly how much you will have to repay every month. Make sure you'll have enough money left over to pay your other bills.

If you feel you have been victimized, get help immediately. Contact your local BBB to report the individuals and companies with whom you worked.

Whatever your real estate needs and/or questions, don't hesitate to contact us. We are happy to assist you in every way possible. (And we know some excellent Loan Originators we can put you in contact with too.)

http://www.BestHomesInJacksonville.com

or simply www.BHIJ.com

Well, today I'll finish up with the last two TIPS for consumers on avoiding predatory lending practices. As mentioned at the beginning of this series, most lenders are ethical and strive to match the best available loan with the individual borrower.  However, there are some who just want to pad their own pockets with no regard whatsoever for the consumer.

We believe it is a vital part of our job as REALTORS to look out for our customers each step of the transaction, and that certainly includes the "money" portion. Now, on to Tip #7:

READ CAREFULLY BEFORE YOU SIGN - Don't sign any document you haven't read or one that has blank spaces to be filled in after you sign. Don't be pressured into signing any loan papers that you do not understand. If you need an explanation of any terms or conditions, talk to someone you trust, such as an attorney. Get copies of everything you sign.

DON'T BE AFRAID TO ASK QUESTIONS - You have a legal right to know the total cost of the loan, the annual percentage rate (APR), the amount of the monthly payment and how long you have to pay back the loan. If you are unsure of any terms of the loan, ask. If you don't get a straight answer, go elsewhere for your financing needs.

UNDERSTAND THE TERMS OF YOUR LOAN - Some loans may sound very attractive because the monthly payment is small. Ask about balloon payments at the end of the loan period. Make sure you know (and understand) the dollar amount of each monthly payment and ask if the monthly payment can change at anytime during the repayment process. If so, find out when it will change and by how much. (Ask about prepayment penalties too.)

NEVER ACT IMMEDIATELY - Be prepared to say no to lenders who ask for upfront fees allegedly to cover a first loan payment and other expenses as part of the application. Never, never ever, pay a lender cash for any fees, and always make the check payable to the lender, not to the individual loan officer. Again, most loan officers and lending agencies are above board in all they do... but, as in any industry, there are predators lurking.

Jacksonville is consistently rated as one of the top "Hottest Cities in America" for business expansions and relocations by site consultants in an annual poll for Expansion Management Magazine. In fact, Jacksonville has been in the top 10 for eight straight years and is the only city to be ranked #1 three times.

In a previous article we discussed how affordable housing is in Jacksonville compared to other top destination cities. But it's not just about the money -- it's the lifestyle!

First, water. Almost everyone wants to live on or near water. You might say that waterfront property acquisition is one of the few investments that can be described as a true no-brainer. After all, they just ain't making any more of it. And Jacksonville has been blessed with an abundance of it from the uncrowded miles of white-sand beaches to the Intracoastal Waterway, to the mighty St. Johns River... you just can't drive far in the Greater Jacksonville Area without running into or crossing over a body of water.

Second, we have miles and miles of natural beauty. It's everywhere. Traveling north on A1A from Mayport at sunset, gaze across the vast golden marshes. Let your mind drift away as you explore the Black Creek/Ravines Conservation. Head over to the Jax Beach Pier and scan the horizon for a pod of Northern right whales, schools of manta rays or dozens of dolphins playfully skimming the waves. Plus, the Jacksonville skyline is one of the most beautiful in the Southeast. It is best viewed from one of the River Taxis that routinely run between the south and north banks of the river downtown.

And third, livability. The Jacksonville area boasts most of the same cultural and recreational perks found in the 'better known' Florida cities such as Palm Beach, Naples or Sarasota. But we have something they don't - Jacksonville is on a prestigious list of the Top 5 most livable large cities in America.

So, what are you waiting for, come on down (up or over) and let us show you why we're so excited about selling real estate in Jacksonville, Florida! We'll find you the perfect home or vacation home. Call us today!