I wrote this article in July of 2006. In light of where we are at today I'd say my concerns were valid.

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No money? No problem.

Negotiated a deal on one of my listings yesterday. The Buyer is purchasing using 100% financing with the Seller paying closing costs. My market is affordable housing with the majority of homes priced from $190s to $250s and it seems like most of the Buyers lately have been purchasing with no money down.

Now don't get me wrong I am in favor of home ownership for everyone but I fear a lot of the Buyers are going to have financial difficulties in the near future. With high insurance costs, property taxes and mortgage payments I am seeing payments of close to $2,000 per month for a starter home. That's a pretty big nut to crack every month, in my area, where most families are regular working class people and don't have any reserve funds if they should encounter a financial setback.

Also, a good number of these purchases are being made with ARMs with the Buyers basing their ability to pay on future raises at work or a part time job that they may or may not be getting. In my opinion Mortgage Brokers and Realtors are being overly aggressive in selling these folks on the advantages of home ownership without really taking the time to counsel the Buyers on the true costs involved. And since they don't have to come up with any money at closing they are sitting ducks for Mortgage Brokers who are charging them sometimes outrageous fees for doing these types of loans.

So my challenge to REALTORS(R) who are dealing with first time Home buyers, with a little or no money down, is to really take the time to explain the pros and cons of purchasing a home. If the Buyers are fully informed and are wanting to move forward then help them to negotiate fees or guide them to the myriad of programs available that can help them with financial assistance. Placing a Buyer in a home he can't afford can damage them for years. It can cause bankruptcies, divorces and even illnesses. So let's "Protect the public" it's what REALTORS(R) are supposed to do.

Hi folks. If you are looking to purchase single family homes, that will cash flow, the time is right. The homes below would rent in the $600 to $650 per month range. With 20% to 30% down each would have a positive cash flow of approximately $100 to $150 per month. There are currently 65 properties on the market in Poinciana Florida for $75,000 or less. Most of these are 3 bedroom 2 bath homes with about 1200 sq ft. 

Check it out: 

3 bedrooms 2 baths with 1088 sq ft of living area built in 2000. Last sold in August of 2005 for $163,500. It is currently back owned and is being offered by First Service Realty, Inc at $44,900!!!

3 bedrooms 2 baths with 1750 sq ft of living area built in 2006. Last sold in February of 2006, brand new, for $198,300. It is currently bank owned and is being offered by First Service Realty, Inc at $63,500.

4 bedrooms 2 baths with 1410 sq ft of living area and a pool built in 1986. Last sold in December 2006 for $182,000. It is currently bank owned and is being offered by Goodwin Realty & Associates at $64,900.

***These properties are not listed by Tutas Towne Realty, Inc but are a sampling of available homes per the Mid-Florida Regional Multiple Listing Service.

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Folks are you looking for your own little piece of Florida paradise? If so this could be the one. Immaculate 3 bedroom pool home on a half acre lot. Extensive landscaping. Extended driveway and separate detached garage/work shop. Very private subdivision. Privacy abounds in this very small and private subdivision near Cherry Pocket. More than 1/2 acre of lush landscaping. Solar heated in ground pool.

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Hi folks. Many times over the years I have heard from Sellers wondering why their home hasn't sold. The usual comment is "it's priced right". Well is it really? My experience has been that any property will sell if the price is right. What is the "Right Price" in today's market? Is it "Market Value" based on the last 6 months of sales? Is it based on homes that have sold in the last 30 days? Is it the "Appraised Value"?

The "Right Price" is the price that will sell your home in 60 to 90 days. But what is this magical number and how do we arrive it? Well in my market (Poinciana, Fl) the right price is 10% to 15% below recent comparable sales. When Realtors are searching the MLS they may have 100-200 homes that meet their Buyer's parameters. My Seller's property, in order to sell, needs to be in the top 5 (preferably #1) properties on the list (by price) and it needs to have a competitive or better co-broke.

If you can achieve this positioning you should be able to get the property sold in a short period of time. Seller's need to know this. It is very important when pricing a house to look at the whole picture that includes active, pending, withdrawn, expired and recently sold listings. I know this is Real Estate 101 but I have met with many Seller's recently whose listings have expired and they have never even seen a "Market Analysis". When asked how they arrived at the listing price they say "this is what we told him/her we wanted." They used a little known technique to price their property it goes something like this:

Down payment for house I want to buy + moving expenses + credit card debt + closing costs + Realtor commission + current mortgage balance="Market Value".

Now I know this may be the new math but folks it won't get your house sold. When hiring a REALTOR(R) it is important that that REALTOR(R) provides you with a detail analysis of current market conditions and counsels you on what it will take to sell your property. They need to be 100% honest about pricing. It may not be what you want to hear but it must be what you need to hear. Then and only then can you make an informed decision on how to list your house at the "Right Price".  Make sense?

Here are a few photos I took while driving around Poinciana Florida today. If it's true that a picture paints a thousand words then I guess these pretty much sum up what's going on with the Poinciana Real Estate Market.

IT'S A JUNGLE OUT THERE!!!

MOVED ON WITH NO FORWARDING ADDRESS!

TRYING TO MOVE ON!!

NEED I SAY MORE?

MORE INFO FROM BROKER BRYANT... THE SOURCE FOR POINCIANA REAL ESTATE

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