Parkland Parrot

Calling President Obama! Bring Back Real Estate Homebuyer Tax Credit!

Calling President Barrack Obama & The Federal Government!  We need to keep the real estate market moving in the right direction.  No matter if you are a Republican or Democrat, there is no doubt that the $8,000 first time home buyer tax credit made a positive impact on the real estate market, especially in South Florida.

When all parties in Washington D.C. can FINALLY agree that the tax credit was a success, why can’t we continue the momentum?  CondoVultures.com, a real estate research firm, concluded that approximately 22,000 homes in Dade, Broward, & Palm Beach County are currently under contract and awaiting to close.

As a result, there was a 138 percent increase in pending sales compared to November 2008, with many buyers paying over asking price.  The Parkland Parrot Real Estate Team had over 11 pending contracts in the past two months.  We contribute 80% of the sales due to the first time homebuyer tax credit and low interest rates.

Now that Uncle Sam has stopped writing tax credit checks and interest rates are on the rise, many skeptics believe that sales will decrease in May, June, and July.  People also forget that FHA mortgage guidelines will tighten in the Summer months making it more difficult for buyers to purchase properties.  Will these buyers go back on the fence?  Will mortgage rates reach 7% by 2011?  Unless the President or Congress steps in and reinstates the tax credit, only time will tell!

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland and need to speak with a Parkland Realtor or South Florida Realtor, please give us a call at 954-609-0591 or send a note to the squawk.

7 Essential Real Estate Buyer Tips When Making An Offer

7 Essential Parkland and South Florida Real Estate Buyer Tips When Making An Offer

You FINALLY found the perfect property after looking at what seems to be a plethora of homes from foreclosures, short sales, and regular sales! Your wife is in love with the kitchen and the neighborhood. Your head is now spinning!  What now?  The day has FINALLY come!  What is standing in between you and your families dream home?  Have no fear! Read the 7 essential Parkland and South Florida real estate tips when making an offer on a home:

The Offer:

After finding the perfect home that matches your family’s purchasing criteria, it is now time to put together an offer for the seller.  Here are 7 tips when putting together an offer that will put your best foot forward and have the seller consider your offer:

1. Submit all formal offers in writing and have your agent type the offer, so it looks very professional and can easily be read by all parties.
2. Write a letter introducing yourself to the sellers.  Let them know why you submitted your offer on their home and describe how your family will enjoy the features and benefits.  Also, make sure to discuss your mortgage qualifications showing how qualified you are as a buyer.  As a result of writing this letter, the sellers will consider you as a serious buyer.  Most sellers are personally attached to their homes and will feel more comfortable negotiating and turning the keys over to buyers that will show the same pride of ownership.
3. Provide a copy of your mortgage pre-approval letter.  Make sure that you submit all of your necessary paperwork to your lender, so you are 100% qualified.  Have your lender also provide your mortgage qualifications for the particular property that you are submitting your offer on.  Again, this will show the sellers how serious you are in buying their particular home.
4. Write as strong of an escrow deposit as you can.  The sellers will again know you are serious, if you have already written a strong escrow deposit check to hold the property.  Again, you are positioning yourself as a serious buyer.
5. Put in writing that you will quickly do your home inspection.  I suggest 5-7 days.  Again, you want to know as soon as possible that your new home is in good condition and not waste your’ time.
6. Include recent sales when submitting your offer. This extra ammunition can help the sellers see the comparable sales from the buyers’ prospective than just their real estate agents.
7. Make a strong offer.  I advise our clients not to low ball sellers.  As a result, it will only makes the sellers not want to work with you, and your offer will not be taken seriously.

The Result:

If you apply these 7 strategies, you will be much closer to owning your dream home.  Presentation is everything when making a formal offer to purchase a real estate property in Parkland and South Florida.  Good luck from the Parkland Parrot Real Estate Team here at RE/MAX!

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland and need to speak with a Parkland Realtor or South Florida Realtor, please give us a call at 954-609-0591 or send a note to the squawk.

The Effect Of Increased Mortgage Rates On Parkland Real Estate?

What will the effect of the expected increase in mortgage rates have on the Parkland and South Florida real estate market?

The FED has recently announced that they will no longer be buying Mortgage Backed Securities. Since October of 2008, mortgage rates on 30 year mortgages have decreased by up to 2%, as the FED was buying up these securities. Unfortunately, most experts agree that mortgage rates will start increasing in the coming months.  But, the question is by how much will interest rates increase?

Financial experts at Morgan Stanely strongly believe that rates will go up to approximately 7%, which ironically was the rate before the FED started buying the mortgage backed securities in 2008.  Other experts feel that interest rates will still remain low throughout 2010.

Today, Parkland and South Florida buyers must take into consideration the negative effect on their monthly mortgage payments and housing costs as opposed to home prices.  Below, please find a graph which accurately displays how even if prices do continue to fall, the increase in mortgage rates could significantly increase the cost for a potential homebuyer!

Buyers should be more concerned about their bottom line monthly mortgage payments for 30 year or 15 year mortgages. Many potential buyers get caught up on the price of homes, but in reality, they should be more concerned with how much their monthly housing payments will be during the terms of the mortgage.

To stay updated with all of the current Parkland real estate home information, receive our blog posts directly to your inbox by subscribing to the squawk.

If you are interested in buying or selling a real estate property in Parkland and need to speak with a Parkland Realtor or South Florida Realtor, please give us a call at 954-609-0591 or send a note to the squawk.