Key West Property for sale-Articles:Robert Severin-Your Key West Real Estate agent

Real Estate Articles for Buyers and Sellers

Tips To Help You Get Your Credit Under Control!-added 1-18-2012

With unemployment so high and costs of living continuing to rise, it is unsurprising that the average credit score is lower than it has been in some time. Thankfully, these hints will give you some valuable insight into how you can proceed to build better credit ratings.

When you create a new credit source, your score decreases. As tempting as it can be, do not a new credit card. As soon as you open a new credit line, your credit score drops.

It is easy to get a mortgage for a house if your credit score is good. If you wish to have an even higher credit score, make sure that you pay your house mortgage off on time. Owning a valuable asset like a house will improve your financial stability and make you appear more creditworthy. This will be beneficial when you apply for loans.

Find and challenge errors on your credit report using the dispute process offered by each credit reporting agency. A dispute letter should be sent to any of the agencies that are reporting the error. Be sure to include supporting documents. Make sure that you send the letter via recorded delivery, so that you can prove that the credit agency receives it.

If you are serious about repairing your credit score, you must be willing to pay the monthly minimum allowable amount on all of your current credit accounts. Anytime a payment is late, it is reported to the credit bureaus and this looks very bad on your report. Paying something every month helps prove that you are creditworthy.

Do everything you can to avoid filing bankruptcy. It can adversely affect your credit for up to 10 years. Bankruptcy may sound great because your debt goes away but there are consequences. Filing for bankruptcy will make it very difficult for you to qualify for credit in the future.

When you receive your credit card statement, go over it carefully. You are looking to see that every charge is correct and determining whether or not you are being charged for an item you didn't buy. You need to be sure that everything is correct on the statements.

If you ever need to get a loan for any reason, your credit score will affect your future. If you are buried under a mountain of debt and have poor credit as a result, you can crawl out of that hole using the following tips.
7.Raise Your Credit Rating By Using Credit Repair

Has your poor credit been holding you back from getting the things you need? This economy has caused an unprecedented epidemic of bad credit. Fortunately, bad credit can be repaired, and these tips are an excellent place to start.

Make a definite plan to pay past due and collection accounts. These accounts will still appear on the credit report, but will be showed as paid. This shows future creditors that you made good on your debt.

Learn more about debt consolidation to see if it is a useful tool in your quest to repay your debt and rebuild your credit. Consolidating debt is often a great way to get all of your debt under control and repair your credit score. With a consolidation loan all accounts balances are combined resulting in one loan payment instead of several. You want to be sure that consolidation is right for you, and how it works, to be sure it would benefit you most.

One of easiest ways to keep your credit score high is to simply pay your monthly bills on time. Sign up for payment reminders to make sure you remember to make payments. There are several options that you can choose from. You can establish them through your online banking account, where reminders will be sent to you through email, or you can have debtors send a text to you reminding you there is a payment due.

If you feel frustrated over your credit score and discouraged about your finances, read on and use these tips to help you recover. By applying these tips, you can improve your credit score.

Ideas To Help Sell Your Property-added 12-14-11

It may seem like it is you against the world sometimes, when it comes to dealing with selling real estate. With the vast amount of information available online, it can be nearly overwhelming at first. This article will provide helpful information for you to get started on the right path.

When you are selling items such as furniture and appliances along with your home, it is very important that you make the items attractive to buyers. If the item is not cleaned, or it is beat up, you will not get much for it. Make sure that you take the time to prepare the item as much as possible, before you invite viewers.

When you are selling a property and you want to get the most profit for your investment, concentrate on repairs. You should repair any permanent fixture on or in the property. The real estate market can be a highly competitive market and only those properties in the best shape will sell for the biggest profit.

Make the home more inviting as you show your home to potential buyers. Light a candle or two, set out a plate of cookies and it will be easier for them to feel welcome as they tour your home. If you have vibrant colors on the walls, consider a quick paint job prior to showing it, in order to make it easier for a buyer to picture himself living in the space.

Trying to sell real estate? Staging is an important tool that can help you sell your property quickly. Buyers are more likely to be impressed by a home that they can see themselves living in. Try to make things look as simple as possible by removing unnecessary items and taking down personal collections or pictures.

One way to obtain a more accurate assessment of what your property is worth is to carefully collect and analyze information about comparable properties on your street, in your neighborhood, and within the zip code. Compare stats like the age of the property, square footage, building materials, lawn size, and overall condition.

In summary, you want to do all that you can, to learn about selling real estate. There is a lot of information available, but we have provided some of the most important tips. Hopefully, we have provided you with enough information, to not only give you a solid background, but also, to further spark your interest for becoming an expert in it.

How to Make Your Home More Marketable added 11-22-11

If you are trying to sell your home, there are a variety of ideas you can use to increase your chances of finding a buyer. Read through the article, and choose which ones would be best suited to your home situation.

Keep in mind that homes with modern touches generally sell faster than those with a completely outdated appearance. Because of this, you want to find the rooms that could most benefit from an update and work on improving their looks.

One of the best rooms to modernize is the bathroom. Replacing the current plumbing and electrical fixtures in your bathroom can quickly give a contemporary appearance of elegance. Even simple and inexpensive touches like new towel racks can increase the appearance of the room.

Another room to consider in your redecoration is the kitchen. The remodel you choose to do in this room can be as simple as adding some new wallpaper and cabinet knobs. On the other hand, you may choose to completely remodel your kitchen with all new appliances and counters. Either way, make certain to maintain a uniform look throughout the room.

You may wish to update other appliances besides the ones in the kitchen. Many potential buyers would appreciate a new washer and dryer in the laundry room. Another excellent choice would be to replace the existing hot water heater with a new model. Very popular choices today are the hot water heaters that heat water only as it is used. This type of hot water heater makes an excellent selling point, because it greatly reduces the amount of electricity used year round.

If you have the space, consider adding a room to the home. The increased space could be used as a selling point for either a spare bedroom or office space. Make certain that the new room blends into the current design.

Another fantastic idea when remodeling is to replace the carpets with hardwood flooring. Hardwood floors are incredibly attractive and sought after by those with allergies. Hardwood floors do not hold dirt and pet dander the way carpeting does. You should be certain to keep it well polished when showing the house.

Utilize these suggestions in the remodel of your home to increase the likelihood of finding a buyer when you put the house on the market. Decide which options work best with your budget and which will have the greatest impact on the overall appearance of the property.

Advantages of Owning a Vacation Home added 10-26-11

Many people vacation in south Florida, only to return home to their winter doldrums. But vacationing in Key West can become a yearly or semi-annual get away by owning your own place. While Key West homes for sale are nearly always available, getting a good deal can be elusive.

Key West is located in the island chains known collectively as the “Florida Keys”. It is in Monroe County and is the southern most tip of the continental United States, just 90 miles from Cuba. Only 2 miles in width and 4 miles in length, Key West boasts some of the most valuable land in the United States.

This means Key West real estate is ideal for a vacation home or an investment property. If you have ever thought about owning a property in Key West, you can find distinct advantages.

Tax Relief

Use the home for 21 days a year, it is considered a residence by the IRS. You can deduct your mortgage interest and property taxes. Moreover, if you rent the home, you can use the rental income to maintain the property while away. There are other tax and monetary benefits to owning a vacation home an accountant or attorney can fill you in on.

Use

When you own a property in Key West, you don’t have to worry about the availability or cost of accommodations. Owning a vacation home means you are not at the mercy of the hotels. What’s more, a vacation home is pet friendly and you won’t have to put on a bath robe to get ice.

Family Nest Egg

Vacation property doesn’t disappear into thin air when you die. It is there for your children and grandchildren to enjoy. Most of all, it can provide a nest egg for your loved ones.

Investment Potential

Key West real estate is nearly immune to the national housing market. The primary reason is density and limited space. Because Key West does not have a huge land mass, real property largely remains stable despite the national economy. You can enjoy a new revenue stream in rental while building equity.

If you want to take advantage of owning a vacation property, look for Key West homes for sale on the Internet and contact a local real estate broker. You just might find the gem you are dreaming of on one of the most beautiful spots on earth!

For helping buying Key West Homes for sale Contact Robert Severin

Reasons to think about investing in a oceanfront Home added 9-27-11

Looking for a tropical get- away that doesn't require a passport? Evaluate the Florida Keys. Extending from close to twelve to fifteen miles to the south of Miami to lower than one hundred miles from Cuba, the Florida Florida Keys provide a multicultural lifestyle and vacation experience to match every spending budget.

Can you really afford a holiday home in the Keys?

As a consequence of price drops within the last few years, The Keys are now one of the better bargains in any Vacation Destination resort region. Mortgage rates are reduced, making financing a property in the Florida Keys a better deal than ever. The opportunity to rent out your Keys house really makes an desirable investment possible.

Purchasing waterfreont property within the Keys has never been much better. It provides the services of the local communityñ restaurants, sight-seeing opportunities, commuter routes, security ñ and the beauty of interacting with nature. The proper residence on the water really can contribute to your mortgage payments.

Waterfront property also is likely to appreciate in value in the long run because of its lasting popularity. Owning a home and then making use of it as a rental is a terrific way to build up value.

For expert advice on Key West property for sale contact Robert Severin

Income tax Write offs The 1st Time Buyer Should Expect-added 7-21-11

Whenever anyone buys his / her very first new house, there's wonderful anticipations of an brand-new tax discount. This particular hope is available pertaining to either unmarried people as well as married people while they stroll in to the " new world " associated with itemized write offs. You can forget will we have to complete a brief tax documents, we have to now use federal form "schedule A" to obtain the income tax offerings which other people already have guaranteed. Exactly what is in store with regard to a very first time buyer? Exactly what tax advantages actually really exist and just how will the 1st time buyer attempt obtaining the advantages? And this is what all of us came to go over and we'll definitely not relax until finally a strong comprehension of first-time real estate property is actually arrived at.

The actual Settlement deal
Prior to moving to a brand new property, the actual expected closing time has to occur. Will there be tax write offs within the agreement document? Right now there definitely might be. In case points are paid out to acquire funding, these kind of factors are usually tax allowable and can include points paid through the owner. There has to be sufficient funds paid out from the purchaser on closing to pay for the quantity of points paid to obtain an existing tax discount. Whenever owner compensated factors tend to be used as being a tax break, the value basis of the property has to be decreased because of the owner paid out points.

As an example, in case a new house will be bought for $400,000, plus the owner pays off one point or $4,000, the purchaser may subtract this specific sum however , it will decrease the properties price schedule to $396,000. The deduction of points in the year of closing is actually exclusive for the acquisition of any primary dwelling. Every other acquisition of real estate property will require the amortization of points to be spread out across the lifetime of the financial loan.
Real estate property taxation compensated during closing will also be tax deductible.

This is actually the sum on-page one of the closing settlement document which pays back taxation's compensated from the owner prior to his / her departing the home and property. Income taxes put into escrow (usually displayed on page two of the settlement sheet) usually are not currently allowable as final closing costs yet will probably be allowable whenever paid through escrow. The rest of the things within the settlement deal usually are not presently allowable and may end up being capitalized as price of the property.

Staging your Home to Sell! added 6-20-11

With this condensed housing marketplace you need to have the property you've got on the market jump out. One method to get this to happen is simply by employing a firm that will skillfully stage your property as though somebody still lives there. This will help to give potential customers to visualize exactly what the property may be like totally appointed. This kind of program is ideal for empty properties owned or operated through financial institutions, building contractors, as well as a homeowner, which has previously moved away from their property that can really use the benefit of this kind of program.

For most of us it really is difficult to be aware of the possibilities of any property while it is found vacant. Just about all they will observe is a bunch of vacant living space rather than visualizing a future residence. For this reason the services associated with setting up a property can easily improve the likelihood of selling the empty residence.

The initial step would be to speak with a property staging organization concerning the options. You may then determine exactly what type of internal furnishings is going to ideally fit the home. From then on, you might work out the length of time you'll maintain the property staged for. Typically you will probably pay a fee every month almost as if you're leasing the furnishings for a really low price. This procedure will probably put in place only enough furnishings to assist a prospective homebuyer's creativity and it should certainly not muddle the inside of your property.

The organization should have seasoned home design employees, which have expertise in creating properties that look great inside. They should know the way they ought to deal with the inside of the home to offer it that ideal, comfortable sense.

Should you be using a real estate professional in promoting your property, they can assist you to stage your property and also work together with the actual staging organization through supplying the inside of the actual home which is on the market. Typically the real estate agent knows what sort of market will probably see the property showcased that can present great understanding towards the property staging organization.

Real estate property businesses, building contractors, as well as financial institutions can certainly all figure out packages along with deals with a property staging business to get all their properties staged. This approach will certainly present the owner that this kind of product sales strategy does indeed do the job. Most of the people would certainly concur that they would certainly rather avoid seeing an empty property in comparison to visiting a property, which appears to continue to have somebody residing there. If you wish to improve the possibility of selling real estate and wish to require more cash from your selling you'll want to consider property staging.

Things to consider when buying any waterfront vacation home. added 5-25-11

First off, congratulations at looking to the Keys for a possible vacation home. The good news about the Keys from an investment angle are:

There is only so much waterfront or Coastal property available.

The Keys have strict environmental laws that affect building permits. This means there are only so many homes and always will be a limited number of homes here. One big reason for this is there is just ONE Highway in and out of the Keys. (US1) If there is an emergency, people need to have the ability to leave quickly and so for this reason alone, the Keys will never be California. The other main environmental consideration is the water quality. The Keys main attraction are water sports and Monroe County is going to make sure that our waters are clean and usable.

To consider when purchasing any waterfront vacation home and how the Keys measure up:

Is there a view?
Views really do matter. An unobstructed Ocean view adds as much as 60% to the value of a home per the Journal of Real Estate Finance and Economics. Proximity to Golf courses or a park can add as much as 20% to a homes value. This is per an article by a much published author named Soren Anderson, a writer from Manchester College.

Consider the recreational activities…
The What and the When.
For example in a Ski resort area, your options are limited due to weather considerations and the total amount of activities available is definitely less.
*In the Keys, about the only thing you cannot do year round are mountain climbing and white water rafting.

Boating access and controlling depth
Is there direct boating access on the property? If so, how large a boat can you have behind the home? This is determined by what we in the Keys call controlling draft or depth. For example: If a boat is under 30ft in most cases 3 ft draft is OK. Draft means...what is the lowest water depth you have to go through to get to open or deep water.If you have a sailboat or 50 ft boat you will need deeper draft such as 5ft.
Now ..obviously if you have a 50 ft sailboat behind your home, the canals or waterways have to provide you with turn-around room.
If the access is deep draft, then expect prices to go up. If there is no water access at the home or the draft is for kayaks only, in most cases expect a drop in price.
If there is no direct water access...how far is the nearest boat ramp or is there a boat slip available? If so, is it included and what is the draft out of the boat slip.
So the boating issue has a very direct effect on pricing here. Neighborhoods with bigger canals and deep draft boating are generally home to the Million dollar and plus homes.

Nearby Medical and shopping options
These are very important considerations. If there is an accident, how far away is a hospital?
In the Upper Keys we have Baptist hospital in Tavernier which is an excellent option.
If you need groceries or restaurants, what is nearby?
Oftentimes vacation properties can be secluded and don’t offer easy access to the above. At first being remote can seem as desirable, but in the end it can grow old quickly.
This also affects home values by the way. If you can have the vacation feel and recreation, yet have amenities nearby, the prices go up.
On thing about the upper Keys is that Miami and South Beach are just about an hour away and World famous Key West, 2 hours.

How much room do you need?
If you own a home with nearby recreation and sightseeing, expect people to come out of the woodwork. Everyone will be your friend. Larger homes, with more bedrooms, a 3/2 and up always rent better. So if you can, get a home with extra space.

Type of Construction or is it built to last.
The age of the home will determine the building code that it was built to. In the Keys newer homes have to be built to strict specs as to wind handling characteristics.
Also, look for low maintenance homes.

The Florida Keys certainly are a vacation destination location area added 5-14-11

Destination Resort Areas

Some glowing examples of actual destination resorts would be the Florida Keys, specifically Key West, Nassau and ski holiday spots such as Telluride and Aspen. What makes the Florida Keys a recognized vacation resort location is the fact it provides tourists a year round desired destination. Even Though the truth is that Nassau, like Key West are cruise spots, Key West and also to a lesser extent, the rest of the Keys have extraordinary sightseeing all year long.

This is actually the key advantage that Florida Keys vacation resort properties take pleasure in, more than skiing vacation resort properties in Co, Ca or Utah. The Keys have various seasons so far as tourists are concerned but the services can be enjoyed all climates and seasons. The Keys summer months takes over and goes until labor day.

One massive difference is that even in the off season, there are still lots of tourists experiencing the Keys way of life. Cruise ships generally make port all year round in Key West, probably to a more significant extent than even Nassau.

Key West. America's Caribbean added 4-28-11

If youíre planning on a wise investment in Key West real-estate, you may be on to something which few in the USA discover An increasing number of purchasers are coming to realize Key West, besides being a great place to go on holiday can also be a terrific destination to live. Key West is a great place and is very accessible by land, air or ocean. Being the southern -most location in the us provides this island gem a few strengths over most of the contiguous states:

1. Weather

2. Environment

3. Island ambience with incredible choices

4. Inspiring creative atmosphere

5. Water sports while in the crystal clear gulf

While the real-estate crisis has hit the US. difficult, costs in Key West, whilst lower, have a benefit over most of the country. The rental marketplace for getaway properties in Key West is strong plus a vacation home can invariably be booked out ( dependant on local ordinances) on a weekly, month-to-month and in season basis. This alone offers extra assistance for costs in addition to a safety net towards further cost erosion. Because of this, investing in Key West property has brought a lesser number of downsides than investment in other regions of the united states.

Irrespective of your likes and dislikes, be it a holiday in Key West or a good investment possibility, Key West by itself makes it an ideal choice. And coming to the Keys using a ìvacationî to scope out opportunity is one heck of a enjoyable way to do market research.

Investing in Key West-3-28-11 by Robert Severin

If you’re thinking about an investment in Key West real estate, you may be onto something that few in the U.S., save a few Floridians appreciate and really understand. Key West is a vacation paradise, but at the same time, it’s also a terrific place for a second or even a primary residence. What makes Key West special: location, location, location! Being the southern-most city in the United States gives this island gem a few advantages over the rest of the contiguous states:

• Weather
• Scenery
• A funky, yet upscale ambiance
• A laid back, almost artsy lifestyle
• Water sports in the crystal clear gulf

While the real estate crisis has hit the U.S. hard, prices in Key West, while lower, still have an advantage over the rest of the country. The rental market for vacation properties in Key West is robust and a vacation home can always be rented out (depending upon local ordinances) on a weekly, monthly and seasonal basis. This alone provides additional support for prices as well as a safety net against further price erosion. For this reason, investing in Key West real estate has had fewer downsides than investment in other regions of the U.S.

Whether you’re interested in living full time in the Florida Keys or just interested in Key West as an investment, the beauty and weather are weather makes it a winner. And coming to the Keys on a “vacation” to scope out opportunity is one heck of a relaxing way to do market research! For More information Contact me.

2/4/2011

The Keys: Get there Before the Next Boom by Robert Severin

The real estate market throughout Florida as in many other area of the country, looks like a dangerous place with the potential that prices may continue to fall…with the possible exception of the Florida Keys. Yes, it is true that during the incredibly oversold market commencing in 2003 and on, prices within Florida spiked only to come tumbling down during 2007 which continues to this day. This was the inevitable consequence of bad lending decisions coupled with buyers lacking the wherewithal to carry the home. This happened virtually everywhere else in the country.
The Florida Keys are Exceptional and an Exception
One of the main strengths of that market protecting the Keys from some of the dangers in the current real estate market is the fact that the vacation rental market environment is a life preserver to the real estate investor, despite the fact that many have chosen to reside there on a permanent basis. In other words, many of the properties whether condos or homes, are still attractive vacation destinations. As long as a property can be rented, the investment is self sustaining. The Keys can always be rented, depending upon the area, on a weekly or monthly basis. This makes them more attractive for investment purposes than the typical home purchased by the home owner as a primary residence anywhere else in the country. In other words, the Florida Keys real estate market was never in a "bust" situation.
The facts bear this out. According to Standard and Poors.com, aggregate real estate prices throughout the U.S., comparing 2000 with 2010 were only 2.6% greater in 2010 than during 2000. While actual sales price in the Florida Keys were 52.1% higher in 2010 than in 2000 ($274,995 vs. $418,209)! Certainly there were declines in Keys real estate prices on a comparative basis during the last half of the decade. This only serves to point up the fact that Keys real estate is very high priced and even when it had declined, prices remain at levels significantly above 2000.
Moreover, this data includes all Keys "residential" real estate, which also takes in vacation rental property, such as homes or condos that are rented out. If that data were available for comparison, it is highly likely that the historical prices would even have exceeded 52%. However, it is important to point out that certain other areas such as New York City and Washington, DC also fared very well over the decade because of explosive Wall Street wealth and the growth of the federal government which affected real estate in the greater Washington DC area.
Short Term Rentals are Key
Despite the overall weakening in the economy and the unsteadiness in the real estate market, vacation rentals in the Keys are strong and this will of course, maintain housing prices within the Florida Keys. However, to the joy of potential real estate investors, the current market rating for buyers is now resting at 1.0 indicating that it's an excellent market in which to purchase. Certainly, if one's intentions are to make a property a business investment and pursue the short term (1 week to 1 month) rental route, the investment will pay for itself in the short term. In fact, the shorter the duration of rentals, the higher the rent and thus, the better ROI the investor enjoys.
There are other advantages that work for the investor. If the property is set up as a business and incorporated, many of the normal housing expenses incurred can be deducted as a business expense. This has the result of decreasing an investor's personal income and taxes, overall. Also, an investor is permitted to make trips to the property for "business purposes" which also permit the investor to use the house or condo and mix business with pleasure, with all expenses being tax deductible.
The longer term real estate outlook for the Florida Keys is exceptional. Because Monroe County has a moratorium on building and because of obvious geographic reasons, the amount of homes and condominiums is finite and for all intents and purposes, capped. Therefore, the market will dictate that the only place for prices to head is up. Even if a recovery is slow, the fact that a property can maintain itself through short term rentals makes the Florida Keys an incredible year round vacation/business destination investment.

1-20-2011

How to Set Up a Vacation Home as a Rental

One of the best real estate deals nowadays is to own rental property. Is that really possible? Yes, however, it must be a certain type of property. The property should be a vacation property able to support short term

rentals throughout the year. In order to be effective at turning a second home into a vacation home, there are a series of considerations and steps that you will need to be aware of and undertake. These will be described in more detail below.

Legal Considerations
Most of what is stated below will deal with Florida and local laws. However, most vacation homes in other states will have similar rules that are applicable. The author’s previous experience has been with short term rentals, for the most part.

Florida basically permits an individual or corporation to rent a dwelling, whether a condominium or home. In some cases, the local county where the property is located, will insist on an inspection of the property, however for the most part, this isn’t the case. In the case of condominiums, often the condo association will handle some of those issues.

The major interest the state and county has is whether or not the owner of the property is collecting and paying sales tax on the rentals and remitting it on a regular basis. One other consideration: before trying to rent your property out, make sure that the local ordinances support short term rentals. One further consideration is that it might be advisable to set the property up as a corporation for both tax and legal protections. Consult an accountant or attorney for advice in this regard.

Sales Tax
Sales tax on short term rentals are applicable to hotel rooms, rental homes and condominiums for stays of less than 180 days. With declining local tax revenues throughout the country, states like Florida, are now more vigilant in their efforts to collect sales occupancy taxes. In Florida, sales taxes on short term stays are especially important because the “occupancy” sales tax is typically double the regular sales tax rate.

For instance, if a county has a sales tax rate of 6% or so, one expects that the occupancy sales tax would be approximately 12%. Obviously on a week long stay with rentals of $900 or so, the sales tax collected for the state would be approximately $90. This will add up over the course of a year and is an extremely attractive source of revenue for the state. Therefore, a prospective owner must collect and pay the taxes or face strong legal action by the state.

Licensing – Any type of business activity must be licensed in the county where the business activity occurs. This is an occupational license. The fee for one may be anywhere from $75 and up. Sometimes in the case of a condominium, the condo association’s license is all that is required. Second, you may have to apply for a state license for your rental property. This will of course, entail another fee. This is renewable every year. In certain case, the state may insist upon an inspection of the property before granting a license.

Rental contracts – In line with the above, it’s important to have a well written, short term rental contract that protects you as the property owner. It is worth one’s time, expense and avoidance of future problems to have an attorney craft such a document

Safety Considerations - Most of the safety precaution are common sense, but it’s important that the property conform to the letter of the law. Additionally, there are some safety considerations that will be applicable. A short term rental home must have a fire extinguisher and a working dead bolt lock for all entry doors. Typically, the home must also have a fire alarm and an emergency light that automatically illuminates, if power is lost. The home must be easily accessible or easy to exit in cases of an emergency. If the home is a condominium on an upper floor and there is a balcony attached to the property, there must also be a restraining fence to prevent someone from accidentally falling.

Billing/Payment – Renting out a vacation property is a bit different from most other types of rental arrangements and business activities.
• It is such a short term transaction that it is important for the owner to obtain all payments well in advance of the rental period. If someone decides to rent your property and fails to pay in a timely manner and then cancels right before they were due to arrive, you’ll not usually be able to replace the rental.

• If they pay by check and the check doesn’t clear and the renter has already left, you might have a difficult time forcing him to make good on the rental and is certainly not worth the hassle. Therefore, insist on payment either by check (long in advance of the rental) or Paypal. Even funds transfer is open to abuse. Although in some cases, if the renter is arriving from another country, you may not have a choice.

Insurance – It is always vital to carry good insurance to protect against damage, weather disasters and liability in the case of accident.

Rental Season Profitability - In most case, if a vacation rental can accommodate virtually all seasons, such as the Keys, Tampa Bay area or South Florida, the total yearly rentals generated will be significantly greater on average, than properties that may only be rentable within a single season, such as a ski area or more northern lake properties. Typically, properties that have a year round rental attraction can usually show a profit within the first few years of ownership. This may be a major consideration when you are planning to purchase such a property.

Rentals Policy – When you are setting up a rental property, you will need to decide if you are interested in longer term seasonal versus shorter term vacation rentals. Most that wish to rent their property should avoid the spring break situation, for obvious reasons. Longer term rentals, one to three months, tend to be less profitable because rents will always be lower than a short term weekly rental. Also, short term renters usually spend minimal time at a property, while longer term renters will normally consider your second home to be their second home when they rent. The advantage is that because weekly renters are spending more time outside there will almost always be less wear and tear on the inside of your property.

Furniture, Equipment & Flooring – In order to make a vacation property attractive, the furniture should be of a reasonably high quality to accommodate years of rental abuse. In the case of sofas, the material should be treated with a stain resistance compound. Further, the appliances should be relatively new and modern and not prone to break down or malfunction. In most cases, avoid whenever possible, carpeting. It is a magnet for dirt and stains. Instead, install a good ceramic or porcelain tile which is worth the expense to avoid future headaches. Wood floors are attractive, but expensive and will require more maintenance.

Maintenance and Repairs – Typically, the short term renter pays for the exit cleaning. Therefore, it will be of paramount importance to locate cleaning people to come in and change the linens and perform the basic cleaning after guests have departed. In line with the above, a potential vacation home owner will need to have a working relationship with local maintenance people that can unblock a sink, repair damage or fix any appliances, when necessary.

1/4/2011

Great deals on Foreclosed Homes, But Buyer Beware! by Robert Severin
In Real Estate

Getting the deal of a lifetime on a foreclosed home or condominium could be the answer to your prayers. However, sometimes the process is fraught with difficulties…if you try to go it alone. There are problems aplenty when buying a foreclosure and an experienced real estate agent will be very inexpensive insurance policy against making a huge and costly real estate blunder. What we'll be dealing with here is the process of buying bank owned or foreclosed properties, the 'how-tos' with an emphasis on what to avoid and ultimately who should be part of your team.
Foreclosure Sales vs. REOs
Before getting into the process, we'll need to cover some basics. The bank will typically and initially offer the home as a "foreclosure sale" in an auction. The sale assumes that the mortgage is still in place. In a foreclosure sale the price is set at a minimum to include the following: the loan balance, any accrued interest, plus any other associated costs. The successful bidder must have a cashier's check in his possession at the time of the auction. In today's market, this type of sale almost never occurs. If there was enough equity in the property to cover the mortgage and the market was more stable, the owner could have potentially sold his property himself and avoid the obvious negatives associated with this transaction. Nowadays, this scenario is probably unlikely
If the bank resells the property in a REO (Real Estate Owned) sale, as the alternative, the mortgage then ceases to exist and the bank owns the property 100%. This article will consider only the process from an REO perspective which would also include Veteran Administration mortgages, as well. VA mortgage repossessions are handled by real estate agents in much the same way that REOs through a commercial bank are handled.
Basic Buyer Preparations in Purchasing a REO
In all cases, REO repossession is not free of potential issues. In fact, there are often more problems. Obviously, a bank or the VA that is saddled with an inventory of repossessed homes actively tries to get the asset off of their books. However, they certainly strive to not lose additional monies on the transaction. After all, they probably have already lost a significant amount in the repossession process. In many cases there are issues that will need to be addressed upfront with respect to the ultimate contract that will be signed, assuming that your purchase bid is accepted.
Whether you are buying a home in this manner to personally occupy it or it is purchased as an investment, it will require you to perform additional 'due diligence' in order to avoid some of the potential 'got-chas' that are not usually associated with straight real estate purchases. Therefore, the two most important people to help guide you through the procedure will be an experienced real estate realtor and a seasoned real estate attorney. Additionally, you'll need to fully understand the process and the potential problems that can befall you.
Physical Problems with Repossession
Many homes that are repossessed have reached this situation because of family problems, loss of employment, death, etc. In the end, if a short sale or standard foreclosure sale is not possible, as is the case in the current market, the home sold under a REO repossession often is vacant for a period of time and the following problems are often encountered:

1. Vandalism and Break-ins. When a home is left vacant for any period of time, often appliances or anything of value may be stolen or vandalized.
2. Deliberate Vandalism by Previous Owner. When a homeowner is forced out, there is a tendency for those to take out and sell any of the appliances and in many cases, vandalize and destroy the home in retaliation against the mortgage holder for the repossession. However, to prevent the situation from occurring, some mortgage companies are now making a cash payout to the homeowner to prevent that situation from occurring.
3. Wild Life. If a home is left vacant and the lawn and foliage are unattended, various animals may seize this as an opportunity to move in. This might include raccoon, opossum, snakes, rats, mice, etc. After all, nature abhors a vacuum.
4. Maintenance not Performed. Many homeowners under the threat of foreclosure, neglect maintenance because funds are scarce and basic survival may not include painting or other cosmetic improvements. Often important preventive maintenance is not performed, as well.
5. Mold Damage. A home that is sitting vacant for any period of time, particularly in places like Florida or other locales in warm, humid climates are prone to develop mold. If left without proper air conditioning or dehumidification, the walls may develop this fungus and mold, particularly if the home has had water or plumbing leaks. Some mold damage may even occur on the inside of dry wall. Once mold takes hold on a wall, often the only recourse is to replace the entire dry wall.
6. Lead paint. Normally this is not much of a problem in newer homes, but in older homes, it is likely that lead based paints have been used in the interior. If this is the case, it's a safety hazard for a homeowner, his family or even workmen brought in to perform repairs. There are two approaches, cover it completely with paneling or use any one of a number of products designed to bond with the lead paint. In any event, removal or surface repair of lead paint on the interior of a REO home will certainly add cost to the potentials purchase
Professional Home Inspection
Most homebuyers may not be aware of the potential problems attendant in the purchase of a REO home. Therefore, it is almost mandatory that a homebuyer use the services of a reputable, licensed home inspector. Further, use an inspector that has previous experience inspecting REO homes. Money invested at the front end of this transaction, will save both headaches and dollars after the home has been purchased.
Certainly, when and if any of these problems are discovered, they can be used to negotiate allowances in the price of the property. There are however, potential buyers of such properties that look for homes in need of repair. For the most part, they are savvy and well experienced in this type of transaction. For the average homeowner, it's always best to avoid homes that appear to be problematic, upfront.
REO Contractual Issues
After dealing with and allowing for problems with respect to the condition of a property, the next hurtle is working with the bank that now owns the property. When you buy a REO, you start with a standard contract. The bank then attaches a normally non-negotiable "bank addendum" to the standard contract. There is a major 'got-cha' in this: a bank owned contract addendum means, "Everything in the main contract is nullified", if the addendum addresses it. For instance, if the main contract allows you make a final walk through inspection, but the addendum says "As-is," the addendum wins. While addendums typically specify no negotiation, in home purchases as in life, there is always room for negotiation.
The following are a couple of issues that you may need to be aware of:
1. Some standard addendums may be written nationwide and actually ignore local laws. Local statutes supersede these contracts, therefore in some cases, there are points in addendums that are not enforceable. A local attorney can guide you in this.
2. Beware of hidden fees. Sometimes, significant fees, amounting to thousands of dollars may be shifted from the seller to the buyer, as directed in the provisions of a contract addendum.
3. Most addendums typically allow the bank to cancel the contract up to the sale date and sometimes with no penalty to the bank. For instance, if the bank receives a higher offer, they may have the right to break the contract.
4. Be wary of termite provisions. Normally it's the seller's responsibility to pay if there is termite damage. The addendum typically shifts the risk back to the buyer.
5. If the bank is trying to unload a REO property, normally they will not provide financing. However, it never hurts to ask.
6. Always have a title search performed. You would expect that in a bank REO sale this would have been covered, however you can never really be sure. Therefore, make sure that the title is 100% clear through a proper title search. You can perform a preliminary check of title on RealtyTrac.com and then hire a title company to run a full, insured title search before closing on a deal.
A VA REO has some Real Advantages
While most of the homes that are now for sale as REOs are available from banks, VA repossessed homes and to an extent, FHA repossessed homes offer certain benefits to a homeowner over and above conventional banks. They are sold the same way through a local realtor and you as a potential buyer can place a bid on a property. If your bid is highest, you have the right to purchase the home. A VA home REO sale has the following advantages:
• The VA may provide financing (VA Vendee Financing) available to both veterans and non-veterans, alike.
• Under most circumstances, the property can be purchased with no down payment, whether the buyer is a veteran or not.
• The VA pays all closing costs, which may amount to as much as 6% of the purchase price.
• Private Mortgage Insurance (PMI) is not required.
• Instant equity may be developed, as VA property discounts may be as high as 50%.
• There are no mortgage prepayment penalties
Whenever you ultimately submit an offer, if you have found any defects, justify your offer with both photos and inspection reports. No matter what type of REO property and from whom you buy it, you will need to:
1. Work with a good realtor, experienced in this type of transaction.
2. Make sure that you secure the services of a real estate attorney, prior to any payments being made or documents being signed.
3. Use a qualified home inspector.
Certainly, by taking precautions and by assuming the worst about the condition of a property, you can avoid overpaying for a home and underestimating the amount and number of repairs and amount of renovation that will have to be undertaken on your purchase.

About the Author
To my Buyers:
As a buyer of property, you will receive personalized, professional assistance in both locating the property that suits you, and in negotiating the deal. Before buying any property, you will be an educated buyer, having learned sales prices and asking prices of comparable properties in the area of your choice, so that you have the necessary information to make an educated decision.

To my Sellers:
As a seller, your property will be marketed locally, nationally, and internationally. Your property will be featured on more than 6 real estate web sites. In addition your home will have a professional photographic and virtual tour for exhibition on the Web.

A full color brochure will also be produced. Target marketing of your property to financially capable prospects.
These are just some of the many marketing tools that will ensure that your property is "SOLD".

Robert Severin is one of the Top Producers in real estate sales, is admired by his fellow realtors, and has earned the respect of buyers and sellers who have come to him, to seek the assistance of an expert in Key West -Florida Keys Real Estate.

FIVE TOP MISTAKES IN BUYING WATERFRONT PROPERTY

1. Not Understanding the importance of controlling Depth.
When buying waterfront property, both the actual value of the property and it’s usefulness as to boating are governed by controlling depth.

What is controlling depth?
It is the depth at which your boat can safely get to open water at average low tide. Another way to look at it is boating draft.

For example, most sailboats have at minimum a 4 foot draft—meaning they need at least 4ft of water to safely navigate without running aground.

So-If you own a sailboat or are ever considering the purchase of one, the waterfront property you buy has to have at least 4 feet of controlling depth.

How does this affect value?
People that own 50 ft boats and larger sailboats, that require 4 to 5 foot draft, will find that neighborhoods have controlling depths of 4-5 feet or more are typically more expensive as to real estate prices.

To Consider.
Even if you don’t own a boat, you may want to buy one in the future or will possibly have friends coming to visit that do have a larger boat. So first and foremost take Controlling depth into consideration.

2. Not knowing what types of Boats are allowed.
Generally there is no problem with pleasure craft, however jet skis and commercial fishing boats can be a problem based on neighborhood (subdivision) restrictions (if any)

For example: Many boating communities frown upon Jet Skis due to the noise. If you plan on using jet skis or having friends that use them, look into any restrictions.
The same thing goes for commercial boats.

3. Not paying attention to Flood Zones.
What type of Flood zone is the home you are buying?
For example flood insurance for a home in a VE will be triple that of a home in an AE zone. So one of the first things to find out is the Flood zone and then check with a local insurance company as to costs.

4. Using outside of the area lenders.
If you are buying waterfront property in Florida and are considering a lender in Colorado, you can have a problem. Why?
Because lenders outside of the state can place prohibitive restrictions on a property.

For example, some lenders will feel that any waterfront home bought in Florida needs to be constructed of Concrete block as opposed to wood frame, due to potential hurricane damage.
Be sure to talk to Local (at least State) lenders, as they will be familiar with the area.

5. Not determining area (county or subdivision) rental Laws.
If you are considering using your waterfront home as a rental, look into the area or subdivision zoning laws as to rental periods allowed.
For example-can you only rent monthly-every 6 months or are weekly rentals allowed. Whatever the law, it will make a big difference in both ease of renting and your potential income.

These are just some of the most important issues to seriously look into. As your Agent, I will help guide you through all of this.

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