Short Sales...What are they?

One of most recent developments I have seen lately is with "short sales." Mortgage companies have finally gotten wise to the fact that foreclosure doesn't typically result in a good outcome for either the owner or the company. With the recent glut of mortgages in trouble as well as the continued high number of homes for sale in the Bradenton real estate market, we have seen many more "short sales" coming up on the local MLS.

Basically a short sale is a sale in which the bank is not going to receive a full payoff on the loan when it is sold. Since so many home owners are now upside down in their loan payoff to home values, it is a good option for those who qualify. Basically in order to qualify for such a sale a home owner needs the following situation:

1. Home value is lower than mortgage payoff.
2. Home owner is unable to continue paying mortgage due to employment issues or other financial hardships.

The short sale is usually preferred by lenders to a foreclosure. If you can have an owner turn over a property in relatively good condition to a new owner it saves the bank a lot of time and expense. The short sale will come up on credit reports, but at this point it doesn't appear that it will affect your credit as much as an actual foreclosure would.

If you believe that you would qualify for a short sale, I would recommend calling your mortgage company about this potential option as well as speaking with a Realtor about the process. Any sales contracts would need to be approved by the bank, including commission amounts and final sales price.

Refreshing Vacation and Bradenton Real Estate Update

I have just returned from a quick family vacation to Ontario, Canada. While there we were able to enjoy a family reunion in Richmond Hill and spend a week at the family cottage in Parry Sound. The weather was perfect...highs in the mid to upper 70's and sunny weather for the most part. The fish were sparse, but we did manage to catch a few large mouth bass. My kids learned to water ski this year which was quite exciting (and nail biting) to watch. I even took a couple of spins on the skis for old times sake, of course ending in various airborne dismounts. We returned in time for one of our famous Florida thunderstorms and a temperature of around 90 degrees. Regardless, it is always a pleasure to drive over the Sunshine Skyway and see the familiar sights of Manatee County.

I am now back feeling refreshed and relaxed. The market here in Bradenton, Florida remains down. Just before we left for vacation, the latest news came in that the median price in Manatee County had fallen another $30,000. This didn't come as a surprise to agents who are active in the market. The current amount of homes on the market remains very high and I have been seeing a lot of homes marked "short sale" or "pre-foreclosure" which means these owners are having to sell under duress. This means the prices are well under current market value in order to achieve a quick sale ( I will address short sales in the next few days since they are so common now). These sales, although necessary, further drop the values of the homes around them due to the fact that other owners need to also drop their prices if they want to compete.

Have a great day... Deb

Mold Remediation

What happens when mold is found on a property inspection?

I recently had this problem on one of the listings I had under contract. The inspection report found a large amount of mold growing inside the A/C handler and around the unit in the garage as well as in the ducts. The Seller and Buyer had to agree on what type of remediation was to be done. There are general companies such as Serv-Pro, or there are experts on the matter called Industrial Hygenists. The general companies are unable to test the types of mold or to give exact levels of mold left in a home after remediation, which may leave some buyers concerned that the problem is not totally fixed.

Since the Seller's were unable to financially afford an industrial hygenist, they hired a local company to handle the basic mitigation. They were told the basic process is the same, but the professional would come in and do tests to make sure it wasn't a toxic type of mold and then the final tests when the mitigation is done.

The mitigation basically involved the following:

1. Basic Visual Inspection
2. Removal of Drywall Contaminated with Mold
3. Cleaning of the Air Conditioning System

Luckily, the problem turned out to be not as big as initally suspected and the total of the work done, including the A/C work came out to be less than $1,000.00

I would suggest that anyone who is concerned about mold issues contact a mold mitigation expert in the state you reside in.

New Home Bargains in Bradenton!

If you are thinking this might be a good year to find a brand new home-You're absolutely right!



Why should you consider purchasing a new home when the market is still in adjustment? There are plenty of spectacular deals out there for a buyer who is ready to purchase now...low prices, help with downpayments and pre-paids, free extras, the list goes on and on.

Top Five Reasons to Buy that new home now:

1. We won't know that the market has corrected and home prices have started rising again until after the fact. Wouldn't you rather purchase a home when the market is still down, versus when prices have started to climb and builders aren't as motivated to help you?


2. Interest rates are still very low and this makes owning a home more affordable, particularly if you are looking at long term fixed rate mortgages.


3. Wouldn't it be grand to be able to start out with a home that has everything you want!
4. New appliances, new paint, the best in hurricane design all for around the same price as a home that has been around for a few years.
5. Lower insurance prices due to the superior construction and new materials.

Advantages of Having an Experienced Realtor Help You Find a Home:

• No cost to you! You may even find Realtors willing to give you a portion of the commission back.
• Familiarity with the market-you want to make sure you are buying in the right place!Will help you decide which options you need, which you can do without, and which ones will help you or hurt you when it comes time to sell again. Keep in mind all those upgrades the builder is trying to sell you are their main profit centers.Negotiating with the builder ... let your Realtor help you to get a better deal!
• Walking you through the process, one step at a time. The new home construction process can be fraught with problems, delays, and inspections. Don't try to go it alone.

Where to start looking: I would suggest calling a Realtor who is active in the new home community and who has special training in helping buyers find the right new home. Personally, I am a Certified New Home Specialist (CNHS), meaning that I understand the building process, have basic knowledge of blue prints, time lines, etc. I am also an Accredited Buyer's Representative (ABR) which helps me give you top notch service. All this knowledge was acquired in order to help you-not the builder. Feel free to call me directly at 941-920-9215 or drop me an email with any questions or needs!

December Update on the Bradenton Real Estate Market

As 2006 draws to a close, I thought it was a good idea to take another look at how our Bradenton real estate market is doing. In short, we have a long way to go before we come to the end of the housing correction that started towards the end of 2005.

The most optimistic report I have seen recently predicts a 4.8% drop in real estate prices for 2007 (Fortune Magazine, see link at the end of this paragraph). That is compared to the 14-15% decline I have seen other reports predicting. Most of the reports point to around the third quarter of 2007 as the time the market will hit bottom and then start leveling out. http://money.cnn.com/popups/2006/fortune/invguide_realestate/2.html

This is not a doom and gloom scenario, merely, one that reflects the adjustment our market is making after being inflated by too many investors purchasing too many properties. There are certain factors that are in our favor, such as good interest rates, good employment rates and other good economic indicators that tend to tell us that this will blow over without too much fanfare.

What does this mean for sellers? If you absolutely must sell your home quickly, you will need to drastically drop your price to get it sold...probably back down to 2004 levels. If you don't have to sell right now, I would suggest holding off for at least another year, until some of the excess homes on the market have cleared. The homes that are selling now are not selling at market value, they are selling well below market value (in other words, only the real bargains are selling).

What does this mean for buyers? If you are ready to buy now, this is a great time as there are plenty of homes to choose from and many motivated sellers who are willing to negotiate a good price. The problem lies in finding those owners who are truly motivated, versus those who would like to sell but "aren't going to just give it away." So, the key is to find a good Realtor who specializes in helping Buyers find the right homes. At a minimum, you will want to find a Realtor who is an Accredited Buyers Representative (ABR).


Here are the final stats for single family homes in Bradenton for the past month:

• 4,244 active listings (this does not include unrepresented sellers and developers)
• 171 homes sold within the last month
• Average sales price was $371,439
• Average sales to list percentage was 95%
• Average days on the market = 83
• Absorption Rate = 24 months (number of months it would take to get rid of excess inventory at the current rate)

Final stats for the condo market in Bradenton for the last month:

• 2,031 active listings
• 52 condos sold in the last 30 days
• Average sales price was $252,463
• Average days on the market = 102 days
• Average sales to list percentage was 90%
• Absorption rate = 39 months

Please keep in mind that the activity during the holiday season tends to decrease. I will do another update towards the end of January which will hopefully see the numbers of listings decrease and the amount of sales increase, giving us a better absorption rate. In a healthy market, the absorption rate will be around 3-5 months.

Wishing you a safe and happy end to the holiday season!

Will Updating My Bradenton Home Help It Sell?

The answer to this question is yes, but how much money are you willing to invest and how much more would you have to receive on the sale to make it worthwhile?

I believe you need to ask yourself the following questions before making a decision (running the idea by a Realtor is also a good idea so you will have an unbiased point of view):

1. How much money do I have to update my home? A lot of Sellers like the idea of doing improvements, but don't want to go into debt to do it. If you are cash poor I would suggest working on low cost alternatives (see below), versus large scale remodeling or replacements.
2. How much is my home worth compared to other homes around me? Unfortunately, it is very easy to get carried away with making improvements to your home and end up with a home that is worth quite a bit more than the surrounding homes. The values of the surrounding homes will then pull down the value of your home. Conversely, if your home is the least expensive home in the neighborhood, you can probably do quite well by investing in some quality upgrades.
3. If you are thinking of doing it yourself, will you be able to do a professional quality job? The idea of doing it yourself is great, the reality is often quite different. If you won't be able to finish the project quickly, it is better to hire a professional. If you aren't sure of the quality you'll be able to have after the project is done, it is better to hire a professional. Buyers can usually spot work that was done by someone who isn't an expert on a project. This can actually cause the offering price to go down!

If you are on a strict budget, I would recommend that you focus on making the home appealing to buyers when they walk in. This would include things like a fresh coat of neutral, updated paint inside and outside the home. Pay particular attention to the front door and entry area. Even something as subtle as a nice planter, a brass kick plate and a door that's free of scratches will make a great first impression. Remove all wall paper from the home, as it is often a big turnoff to most buyers. If you have old wood grain cabinets that date the home, paint over them! Hiring an interior designer is a good way to start, so you can focus on the most important aspects and wait on the rest (this is why we provide a one hour designer consultation to all of our sellers when they first list).

If you have a little more money to invest, I would suggest considering what the return on your investment will be. The Association of Realtors just published it's yearly report on what projects are likely to bring the greatest returns. Just go to: http://www.realtor.org/rmomag.NSF/pages/2006CostvsValue?OpenDocument . The top three returns on your investment in the Southeast are as follows: fiber cement siding (93%), vinyl siding (90%), mid scale bathroom remodel and vinyl windows tied (87%).

Some items, aren't a matter of how much return on your investment you will reap, but if your house will be able to sell without them. Some items like an unsound roof or an inadequate air conditioner will cause buyers to shy away from making an offer on your home. At the very least, most offers would come in at a lower price because the buyers are planning on having to cover these expenses in the near future. Items like these, are better to be replaced before your home goes on the market, making them a non-issue. If you can't afford to replace these items right now, offering a credit for the replacement would be the next best thing.

Final thoughts: Given the current buyer's market, I would be wary of making high cost improvements to your home. You are more likely to do better by pricing your home correctly. Right now, price is the most important factor in the buying process. Buyers have a large number of homes to choose from, so they tend to visit the homes with the most reasonable price for the square feet and area. You want to be in this category, otherwise, no matter how nice you have made your home, it won't sell simply because no one is interested in seeing it to begin with.

Bradenton Home Inspections & Radon

The general consensus from most people I speak with about radon in Manatee County is that we don't have a problem with it .... and for the most part that is correct. Even the EPA states that Manatee County overall has low levels of radon present on average ( a "predicted average indoor radon screening level less than 2 pCi/L" based on the EPA maps) and is not an issue for most homes and condos around the Bradenton area.

However, how much would you pay to make sure that you aren't exposing yourself to a toxic gas that could give you lung cancer. There is no odor or other signs of it's presence. Having a radon test could save your life or the lives of your family members. According to the EPA literature, radon kills more people a year in the US than drunk drivers, yet we hear so little about it.

There have been isolated cases of radon found in Manatee County. This includes a large pile of soil in a particular new home builders subdivision that tested very high for radon and is now being examined, turned and will not be usable for construction until the levels of radon have been brought down to a safe level. I am currently working with a buyer who has a contract on a home that tested positive for radon, a nasty last minute surprise that needs to be taken care of before the closing.

Surprisingly the standard FAR contract for the sale of residential real estate (the form most Realtors in Manatee County use) does not include radon in the "warranted items" category. It is instead listed separately as far as items that can be screened for. If found to be over the acceptable level, the owner can choose to mitigate (fix the problem) or just walk away from the deal unless the buyer wants to pursue the sale knowing there is radon present. Of course, if radon was found above acceptable levels, the sellers would be obligated by law to disclose that fact to any potential buyers in the future, even if mitigation was performed.

The newer the home, the more likely that if radon is present, it will build up and become unhealthy for the occupants. The old homes with multiple leaks (drafty windows, flooring, etc) actually have lower risk because they are exchanging air from the outside more frequently (this does not rule out risk though).

So how can you protect yourself from radon? This is what I have learned from speaking with several experts on the matter:

1. The first step is to have your home tested. This must be done by someone certified with the state to do so. Just go to http://www.doh.state.fl.us/environment/community/radon/blstfrms.htm and you will find a list of all the individuals and companies able to perform these tests. It is not cheap, the lowest price I was able to find was $175.00 with most of the companies charging an average of $250.00.
2. When you ask for the test there are two main types, one involves testing pieces that must be sent away to a lab and will basically measure the highest level of radon that was found over the 48 hour period. The other type of test actually will give you a readout of the levels each hour and the results are available almost immediately. From what I have learned it is possibly better to pay a little extra for the test that gives you the hourly readouts, in case there was a sudden radon spike and then low levels the rest of the time.
3. The level that EPA states is safe is 4.0 pCi/L. Anything over this is believed to be a risk for cancer and should be mitigated (fixed so that the air is safe to breathe).
4. There is also a long term test for radon, it must be in place for a minimum of three months. This will give you a more accurate reflection of long term risk, but if you have had a previous "high" reading, I would be hesitant to remain in the home while the test was under way. I have been told that radon levels will vary based on the temperature or other climatic conditions, so the long term test does seem like it would give a better overall picture, particularly if you are already living in the home you are going to test.
5. If your test results comes up high, you will want to contact a company certified in mitigation with the State of Florida. The costs are not exorbitant and the process seems fairly straightforward. The first approach involves cutting access into the foundation of the home and then venting the radon (that would come from below the home) away from the home. The second approach is a whole house ventilation system, that allows a certain amount of fresh air inside, frequently enough that the radon levels are effectively reduced to safe levels. For homes that are quite new, this approach has the added appeal of improving the overall air quality at the same time, since it is also an issue with the "tightness" of today's new homes.

So, if you purchasing a home, condo or other dwelling in Bradenton, I would suggest that you go ahead and order a radon test at the same time. Graham with National Property Inspections was able to handle the testing for me and was very helpful with providing information after the fact. His website related to Bradenton Property Inspections is located at http://www.npiweb.com/gjohnson/index.htm . Feel free to call me with any general questions or concerns related to Bradenton Real Estate.

******Please remember, I am not an expert on radon in any way, shape or form, but thought that this was important information that buyers (and homeowners in general) should have. For detailed answers, please consult one of the individuals or companies listed on the State of Florida site.*****

Helpful Radon Links:

• http://www.epa.gov/radon/zonemap.html (this is the map of the country/states and expected levels)
• http://www.epa.gov/radon/ (general information on radon)
• http://www.epa.gov/radon/pubs/hmbyguid.html (link to a publication on radon that you can download)