The State of Florida made significant gains to round out 2010. Existing home sales rose 5 percent for the year; totaling 170,848 sales compared to 162,873 total sales in 2009. Healthy predictions continue as the National Association of Realtors (NAR) anticipates the sale of existing homes to rise 7.9 percent to 5.3 million in 2011.We enter the busiest time of the year on an upswing. Naples is a beehive of activity, especially as the remainder of the country continues to endure freezing temperatures and snowstorms.According to the Naples Board of Realtors (NABOR) overall closed sales increased by 10 percent from 7,126 sales in 2009 to 7,840 sales in 2010. While the under $300,000 price point has dominated our market for the past three quarters, a significant increase has been detected in the $1 million and above price category.Jobless figures will begin to dwindle as consumers embrace new spending patterns and corporations and investors fuel new ventures.For those of us fortunate to have the ability to purchase luxury goods and real estate, the attraction can be categorized as altruistic. Options for acquiring sound investments abound, and such acquisitions will directly influence the economic climate of the local area. Is there really a better incentive to open up those checkbooks?
Since the housing bubble burst, appraisers have come under intense pressure for failing to account for actual market conditions. Though it is not all doom and gloom as national news is not always in line with the local perspective. What better way to safeguard your future investment than by selecting to work with local industry professionals who not only understand the local market but are privy to the nuances and trends within the markets. Local appraisal companies want to engage sellers at an early point in the process to provide an actual snapshot of market value based on true comparables in their neighborhoods. Should the presence of short sales or foreclosed properties threaten to sabotage the sale or purchase, individuals can at least count on having a robust conversation with the lender or appraiser. Local lenders and appraisers are focused on client’s best interest and are dedicated to keep the community moving forward in these uncertain times. Buying locally is all the rage for a sustainable environment. Applying that same practice to our home buying/selling practices may just save us all some heart ache, and be the key to working intelligently within the ever-changing system.
A deed in lieu of foreclosure is “one of the oldest concepts in real estate”, though it has recently surged back into the limelight given the current climate fostered by the abundance of short sales and foreclosures in our market. Banks have a very clear incentive to find a resolution to their borrowers’ default, as it all boils down to speed. Deeds in lieu allow banks to quickly gain ownership of their borrowers’ properties and in turn are able to resell the property. This type of alternative may not be appropriate for those cases involving serious mortgage default, for instance if you have a substantial amount of equity built up in your home, you may wish to seek a loan modification and then go down the route of a short sale before simply handing over all your hard earned equity to your lender!