So how do you feel about Realtor listings that are missing key parts of data?

I wanted to post something and ask my friends on Google+ what they thought about Realtors who post listings that are supposedly investor properties, but the amount of rents or the number of units appear to be missing. Investors are a funny breed, some like to look at cash flow as their basis, others look at MAO=ARV*.7-repairs, where MAO is the maximum allowable offer = after repair value * .7 (realtor costs, time value of money, what ifs) minus repairs. Then there are some looking for the CAP rate on the property, this is simply found taking the rents divided by the sale price.

Now if you are trying to sell an investor property and you know it is investor property because its a duplex or quad-plex or has 6 buildings each with a duplex inside, you would think that showing the details on the number of bedrooms, the number of baths, the amount of rent would all be important. My fellow Realtors, get off your lazy butts and figure this out, why do I have to call you out? (I wish Realtor.com allowed me to put a question mark or highlight next to each listing in the MLS).

I want to sell your properties, I have a cash buyer from South Florida and he wants to buy properties. Don't make this hard, make it easier on us all. Add the rents for the property, if there are no renters, find out the rents using rentometer dot com. This is NOT rocket science. Ask property managers in the area. Find out from other investors the criteria they use, as investors like to buy with confidence, and for pete's sake (sorry Pete), know what the heck you are talking about! My investor asked the listing Realtor questions about how to access the attics in the 6 properties, she said she had no idea. She did not know which buildings' AC units are using R-410 as refrigerant. Basic stuff about the property, there are sooooooooooooooooo many bad Realtors out here in the world. We need to get rid of many of them.

Till then, fill out the Investment properties so the other Realtors who want to sell property can do so without having to look around for data in an hunt. Easter is still months away, no need to repeat the Easter Egg hunt yet.

#LizBobeck

Are the Ultra-High End homes next to hit the foreclosure system?

I found this from a friend in the real estate business. Hence the reason you see the references from Houston. But the cities referenced, with Houston, are or were some of the hardest hit during the recession and had some of the largest inventory of distressed properties. So if you are on the hunt for the Ultra-High End properties in Jacksonville, call me to see if there some available in Historic +Avondale +Riverside +Sanmarco +Springfield +Ortega.


Looking for eight bedrooms, 13 bathrooms and 23,000-square feet in Houston?

For a cool $6.3 million you may be able to take it off the bank’s hands since it repossessed a house fitting this description in April.

According to RealtyTrac, foreclosures on ultra-high-end homes — those with a value over $5 million — are up 61% over last year, defying the trend in the overall market that has seen foreclosure activity down 23% through October.

Panoramic ocean views, stunning architecture and landscaping — even putting greens — are some of the hallmarks of these luxury properties.

And although they account for a tiny part of the market — less than 200 total in 2013 so far — they can cost a foreclosing lender a sizable amount.

However, as Emmett Laffey, CEO of Laffey Fine Home International in New York City, said, “Any foreclosure properties in this kind of ultra-luxury market get purchased very quickly since there is one thing all super-rich buyers want — an outstanding deal on a real estate transaction, and in most cases foreclosures of this magnitude come with several million dollars of built-in value.”

According to RealtyTrac the top market for foreclosures in the $5 million-plus range is in the Miami/Fort Lauderdale area, followed by Los Angeles.

Rounding out the top five list are Atlanta, Ga.; Orlando, Fla.; and the New York City/Northern New Jersey area. Although Los Angeles made the top-five list, foreclosure activity in California as a whole is down compared to last year.

#LizBobeck

Early 2014 Prediction Home values will stabilize, mortgages will be easier to get next year

I thought this was an interesting article, especially since we have a few more weeks to go before we get into 2014.  I believe that mortgages will be easier to get, I think that we have a great local economy with low unemployment and Real Estate seems to be leading the way in leading +Jacksonville out of the past recession. So what do you think?

Zillow is making four “bold” predictions for 2014:

1. Home values will increase by 3 percent;
2. Mortgage rates will crack 5 percent; 
3. Borrowers will have easier access to a mortgage; 
4. Home ownership rate will drop to its lowest level in 20 years.

Zillow Chief Economist Stan Humphries says that the more modest home value growth he predicts for 2014 reflects a more mature, stable market that will exist a year from now. “(In 2014), home value gains will slow down significantly because of higher mortgage rates, more expensive home prices, and more supply created by fewer underwater homeowners and more new construction,” Humphries said in a statement.

As the housing market resets toward more sustainable, realistic lending standards and home value appreciation expectations, Humphries expects home ownership to drop to below 65 percent, a level it hasn't seen since the mid-1990s.

Even though Zillow predicts mortgage rates will rise to above 5 percent by the end of 2014, the competition for fewer borrowers will force lenders to ease their standards, said Erin Lantz, Zillow’s director of mortgages. Home affordability will remain high, too, in many markets despite the rate increase, she said.

Based on projections for unemployment rates, population growth and the home values, Zillow predicts the following metros will have the hottest housing markets in 2014 (in order): Salt Lake City; Seattle; Austin, Texas; San Jose, Calif.; Miami; Raleigh, N.C.; Jacksonville, Fla.; San Diego; Portland, Ore.; and Boston.

Hey, its good to be in the top 10 of something positive, rather than all the negative stuff we saw for the last few years. Our market is indeed hot, there are less than 8,000 houses for sale in Jacksonville. Tight inventory for sure! Call me to discuss your Real Estate needs.

#LizBobeck

A few tax breaks that are expiring at the end of 2013.....

I know we are all looking forward to the holidays in Historic +Avondale +Riverside +Springfield +Sanmarco and +Ortega. But, it would be prudent to at least plan on some of these tax issues NOW, rather than when we have had too much egg nog.....

Dozens of tax laws are set to expire at the end of 2013. Many of these provisions are quite popular and may be extended by Congress. Exactly when or how lawmakers will get around to doing this is unclear.

The situation is complicated by the fact that both the White House and Congress want to enact serious tax reform in 2014. Key members of Congress and the Obama administration have proposed that extending or making permanent some of these expiring provisions be made part of the overall tax reform process instead of being done piecemeal though special tax extension legislation.

The expiring provisions of most importance to the real estate industry include:

Mortgage insurance premiums deduction: Since 2007, qualifying homeowners have been able to deduct premiums for mortgage insurance provided by the Department of Veterans Affairs, the Federal Housing Administration, the Rural Housing Service, and private mortgage insurance. Homeowners whose incomes are not too high can treat such payments the same as mortgage interest payments. Unless the law is extended, no deduction will allowed for amounts paid or accrued after Dec. 31, 2013.

Discharge of indebtedness on principal residence exclusion: Since 2008, homeowners have been allowed to exclude from their taxable income up to $2 million of debt forgiven on their principal residence by a lender in a short sale, mortgage restructuring, or forgiven in a foreclosure.

Unless this provision is extended, the exclusion will not apply to indebtedness discharged after 2013. If this provision does expire, the impact will vary from state to state.

Tax credit for qualified energy efficiency improvements to principal residence: Homeowners have been able to claim a maximum lifetime tax credit of up to $500 for installing energy efficiency improvements in their main homes, including the cost of insulation, windows, doors and roofs. The credit expires at the end of 2013.

Since 2008, homeowners have been allowed to exclude from their taxable income up to $2 million of debt forgiven on their principal residence by a lender in a short sale, mortgage restructuring, or forgiven in a foreclosure."

Section 179 expensing deduction: IRC Section 179 allows small-business owners to deduct the cost of business property in a single year instead of depreciating the cost over several years. Section 179 is subject to an annual dollar limit. During 2010 through 2013, the annual limit was $500,000. The limit is scheduled to go down to $25,000 in 2014.

Bonus depreciation: Since 2007, businesses have been able to take advantage of special “bonus depreciation” rules that permit them to deduct in a single year 50 percent of the cost of qualifying business property. Bonus depreciation will end on Dec. 31, 2013, unless extended by Congress.

Energy-efficient commercial buildings deduction: Since 2006, a special deduction has been available to commercial building owners who upgrade their existing buildings to make them more energy efficient, or design more energy-efficient new structures. A deduction of up to $1.80 per square foot was available for energy upgrades to a building’s interior lighting system, 
heating, cooling, ventilation, and hot water system, or building envelope. This deduction ends in 2013, unless extended.

Credit for construction of new energy-efficient homes: Since 2006, certain contractors have been allowed an efficient-home credit of $1,000 or $2,000 for constructing or manufacturing qualifying energy-efficient homes. Like the other energy efficiency deductions, this is set to expire at the end of 2013.

With all of this, it looks like the government may not be raising taxes, but essentially doing away with deductions, which kinda sorta looks like a tax increase. Hopefully Congress will be able to save some of these for the consumer, especially the energy efficiency programs.

Happy Holidays
#LizBobeck

If video killed the radio star, the web killed the newspaper ad...

Who does not remember the song, "Video killed the radio star?" I do, and I remember when MTV came out and wow, radio changed forever. So much so that the satellite radio companies hired all the old MTV "VJs" to be on their shows after MTV became something other than music television.

Now we are seeing where the vast majority of US Adults, 164 million of us, read newspaper content either online or in print. 34 million of those view the newspapers online or on a mobile device, up 58% year over year. The trend is that as Americans age and get older, we will be viewing the newspaper online. Will we be viewing the advertisements too????

There was a time, not so long ago, when my family and I would sit down on Sunday morning to have breakfast and I would watch my dad read the newspaper from cover to cover. Now, he reads the news on his phone or on his laptop. Newspaper publishers miss my “old” dad, the one who would glance over the open houses every Sunday. However, that dad just doesn't exist anymore. The same goes for so many other moms and dads who read the news every Sunday.

The survival of regional/national publications and death of local publications causes major problem for real estate professionals because many brokerages prefer smaller publications because the major/regional pubs are very costly. We advertise in the local paper, The Resident because our Niche is Historic +Avondale +Riverside +Sanmarco +Springfield and +Ortega.

They see local publications as a way to stay connected with their local consumers, where regional publications aren’t as hyperlocal with the listings they share in their newspapers. Regardless, so many local real estate agents beg their brokers to continue print media campaigns, not thinking of the return on investment (ROI) print has, just wanting coverage in as many different media as they possibly can. According to the National Association of Realtors, more than 90 percent of homebuyers begin their search online, while only 27 percent stated that they bought a house they saw in the newspaper.

Another major concept to think about in this argument is the functionality behind listing online versus listing in print. National listings solution providers like realtor.com, Trulia and Zillow have theorized major search metrics in optimizing the amount of eyes viewing a particular listing, especially listings where a paid search campaign is in place, whereas those few who still read the locals can easily lose a listing when skimming over the 2-by-4-inch, black-and-white local listing ad below the fold on page 6 of the real estate section.

Also, tracking view is much more possible online than in print. With digital, the listing broker can quantify the amount of consumer engagement by tracking impressions and landing pages, while with print, the only traceable functionality is the “Mention that you saw this ad in the _____ News!” line at the bottom of the page.

I believe there is a place for both, as newspapers begin to restrict  premium content to paying subscribers, so too will social media restrict access to those who are helping to feed the base of the social platforms. They both can co-exist and feed what is the ultimate need of the consume, information on the most expensive solution they will ever purchase.

#LizBobeck

AgentMatch - The Skinny on this great customer solution in a crazy Real Estate world!

What is AgentMatch?

I pulled this data directly from the National Association of Realtors AgentMatch site. AgentMatch is a new system that will allow Buyers and Sellers of Real Estate to SEE the actual results of Real Estate Agents. So now consumers will have more power to see if an agent is brand new or inexperienced or taking listings and sitting on them. After all, results speak louder than anything else, and that is the hope with AgentMatch, to show the numbers and separate the weak agents who bring down the industry. Order takers belong in other industries!

Realtor.com® realized there was something missing in the real-estate world; an easy way for sellers to find experienced and compatible listing agents. AgentMatch uses data, not word-of-mouth. When looking to sell your home, we understand what information matters. Rather than selecting agents by advertising or promotional incentives, we leverage statistics and data from mls's to display agents that are active and recommended.

We then give you lots of rich profile content about these agents to explore if you think they might be a fit…and no gimmicks either, just the phone number and email address if you want to contact them!

How It Works

1. AgentMatch uses your home address to determine all agents in your area.
2. Using these statistics, AgentMatch presents the active selling agents in your area.
3. We provide a view into the details and past recommendations that help you choose the agent that’s right for you.
4. AgentMatch analyzes the following statistics based on your home address:

• Number of homes currently for sale
• The agent's average sold to list price in the past 6 months
• Number of homes the agent sold in the past 6 months
• The agent's average days on market in the past 6 months

Sell for the right price at the right time.

Currently Supported Locations:
- Northern Colorado: Boulder, Fort Collins, Greeley, Longmont, and Loveland/Berthoud
- Las Vegas Valley: Las Vegas, North Las Vegas, Henderson and Boulder City

Jacksonville, FL is probably going to be serviced when all the major cities are added. Looking forward to showing my clients, customers and prospective new clients my abilities and how I have helped people with real estate.

#LizBobeck

Why Home Values Will Continue Higher (For Most)

This article is from my fellow Realtor in Tallahassee, FL, +Joe Manausa, even though it is from Tallahassee, it is still good content as Tally is still located in Florida, last time I checked.


As more areas and price ranges reach market equilibrium, we are seeing home values move higher. If you are wondering if this trend will start to cool for homes for sale in Tallahassee, I would tell you that it is highly unlikely when we consider two key points. Latest Trends Support Continued Growth!

Average home values for all but one month this year have been above the one-year trend line. This suggests that we are in a very strong trend that should continue moving in the same direction. But there is another reason why we suspect average home values in the Tallahassee real estate market will continue to rise.

Home Values Are Still Below Replacement Cost (We see the same thing here in Jacksonville)

The market is always seeking cost … but what does this mean? When the supply of homes greatly exceeds the number of buyers, we say that we are in a buyers market and homes will often sell below what it would cost to replace them. When the supply of homes does not keep pace with demand, then buyers will pay a premium to get a home, often at prices well above what it would cost to replace them. Regardless of the market, home values typically fluctuate at or near the cost of replacement. When values get too far away from replacement cost, the market shifts to move values back in line. Why? Because builders will stop building if they cannot get their cost and profit back on sale. But as soon as they can build a home for profit, they do so.

I hope the trend explaining real estate market cycles helps you understand the overall market. But you need to know that supply and demand are in balance for only certain price points, while some are still dealing with an imbalance between the number of homes for sale versus the number of qualified buyers in the market. Specifically, high end homes are going to continue to fight this imbalance, with the likely result being continued declining values.

It will be interesting to see how higher priced homes and lower priced homes move in the next few months. There will always be fewer buyers for million dollar properties. However, it will be more interesting to see how much higher the lower priced properties will rise, probably to somewhere around the cost to build new.

#LizBobeck