Don’t Trust Zillow’s Home Values

Can you rely on Zestimates? Sellers like to think that they should price their homes according to this number, but these valuations are usually inaccurate.

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Today I wanted to talk about the famous Zillow Zestimate. Are Zestimates accurate? I would argue that they almost never are.

Many homeowners tend to think of Zillow as the holy grail for home values, but did you know that Zillow’s CEO himself, Spencer Rascoff, can attest to the inaccuracies of the Zestimate? On February 29th of this year, he sold his home for $1,050,000. The Zestimate on his home from his own company was $1,750,000 — more than 40% off from his sale price!

Zestimates are almost never accurate.

Why is the Zestimate so inaccurate? A Zestimate uses a computer-generated algorithm that pulls in data to give you an estimate on the value of your house. This algorithm, however, cannot account for the intangible and local characteristics of your home. For example, Zillow does not factor in any upgrades you’ve made to your home, its layout, or its proximity to surrounding neighborhoods that may impact its value. The Zestimate is a good conversation-starter for home values, but it is far from the final word on your home’s actual market value.

What should you do in order to get an accurate assessment of your home’s value? The best way to determine a property’s value is to talk to an experienced professional agent who will do the research, find comparable sales, physically assess the property, and then analyze the data.

When you're selling your home, pricing it properly and understanding the true market value from the beginning are two of the most important things you can do.

If you have questions about pricing your home properly for the market or would like an accurate assessment of your home’s value in today’s market, give me a call or send me an email. I’d be happy to help you!

5 Questions to Ask Before Listing

If you want to sell your property, there are five questions you should ask yourself before you make the decision to put it on the market. These questions will help you focus on your motivations and how you plan to achieve your goal:

1. Why are you selling now? What is driving you to sell? Do you have a strong reason to sell?

2. Should you sell now or wait? Are you selling in the market or against the market? Timing is everything in a real estate transaction.

Timing is everything in real estate.

3. Who is your competition? You need to take stock of the competition not only on your block but in your neighborhood and your city as well. Here in South Florida, trends change quickly. What’s happening now won’t be in the news for months, so it’s important to work with a knowledgeable Realtor who can keep you informed about what’s going on in the current market.

4. On a scale of one to 10, where would you place your home? If it’s anything less than a 10, ask yourself what would bring your home up to a 10. Sometimes it’s worth it to make those repairs to bring your home up to a 10, sometimes it’s not.

5. Have you considered any alternative other than selling your home yourself? In 2015, 92% of sellers hired a Realtor to help them sell. In our capitalist system, nothing lasts this long unless the value is more than the cost. This is the case with Realtors. Their expertise is very valuable.

I want to leave you with this thought. If I can make you as much money as possible in the least amount of time with as little inconvenience as possible, would you let me handle a sale for you? If you would, give me a call or send me an email so I can talk to you more about what I can do to help you. I look forward to hearing from you soon.

How to Request an Emergency Extension to Stop Your Foreclosure Sale

Follow these steps to request an emergency extension to stop your foreclosure sale:

1. Go to the Miami-Dade courthouse located at 73 W Flagler St., Miami, Florida 33130. After going in and walking through the security checkpoint, turn left. There you will see a small door where you will need to enter to then request the emergency foreclosure form. You will also want to take a picture of the sample of the form filled out that they have on the wall. This is so you have a reference when filling out the form.
2. Go to the courthouse library located on the third floor and request the emergency motion to stop the foreclosure sale form. Since this form will cost you $2 and they don’t accept debit/credit cards, it’s a good idea to bring with you $10 to $15 in single bills.
3. After filling out the form, go down to the first floor and request two copies to be made when you’re turning it in. They’ll make the copies for you there and seal the documents.
4. Request the date of the motion to be 96 hours after the day you are requesting it and at least 48 hours before the foreclosure sale.
5. Fax, email, or mail the form to the lawyers on your bank’s staff. Do not let that day pass without sending the form to them and receiving the confirmation.
6. Sign in on the bailiff sign-in list the day of the motion. When you go to the motion, get there early and sign in. If you don’t sign in, they will not call your name and you’ll have to reschedule.

Do not let the day pass without notifying your lawyers and receiving confirmation.

If you have any questions about this process or real estate in general, please give me a call or send me an email. I would be happy to help you!

These Credit Mistakes Could Cost You Your Home

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Many times when people are looking for a home, or even after they have made an offer to purchase the home, they are tempted to play with their credit. Do not do this because it can jeopardize the purchase of your home. Here are some common credit mistakes to avoid when waiting to close:

First, it’s important that you do not make inquiries on your credit report. Accept the fact that you’re not an expert. Even a harmless inquiry on your credit can hurt your credit score, cost you points on the interest of the mortgage, and derail your sale.

Next, be sure that you do not establish new credit. Throw all of the credit offers away, even the ones that offer you money back on recent purchases, as these will affect your credit score as well.

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Do not close credit accounts, even if 
they are accounts that you do not 
use or have not been used in a while.

”

Do not close credit accounts, even if they are accounts that you do not use or have not been used in a while. Also, do not increase your credit limits, as having a higher limit will not make you look better in the eyes of the bank.

To add to that, make sure that you do not try to buy a car or make any major purchases at the same time you are purchasing a home. In fact, do not buy anything with a credit card or put anything on layaway. Stores with layaway programs will check your credit history, and when that happens, your credit score will be affected. I know you may be desperate to buy that new washer/dryer or new furniture, but know that these purchases can end up costing you your sale.

Please keep all of this in mind so that you do not end up inadvertently putting the purchase of your home in jeopardy. Be patient and you will get through to the end.

If you’re looking for a strong salesman to help negotiate the sale of your home, or a savvy agent to help you navigate this tough Miami market, please give me a call or send me an email. I’d be more than happy to help you.

Don’t Get Stuck with the Water Bill When Selling Your Home

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Recently, I was at a closing with a client who was selling his investment property. One of the charges on the closing statement was $1,800 for the water bill that the tenant hadn’t paid. During this process, we learned a few things that will help you save money in the future.

First of all, an unpaid water bill is tied to the property, not the account holder. In other words, if you have a renter who doesn’t pay the water bill, that bill will eventually be tied to the property.

Upon the sale of the property, any unpaid water bills are then passed to the owner of the home. So, buyer beware - if you’re buying a rental property (or any property) and there is an unpaid water bill from the former tenant, you will get stuck with the bill and you won’t know about it until it’s time to close on the property.

When my client tried (unsuccessfully) to remove the $1,800 bill, the Miami Department of Water and Sewage told him that there was an additional $2,600 of unpaid water bills. He was advised to look for a leak. The Water and Sewage Department only recognizes two reasons for a high water bill: usage or a leak.

If you have a water leak, you can negotiate some of the bill payment. However, if there is no leak and the high bill is due to usage, you are responsible for the full payment. You may need to “create” a water leak and get a plumber involved if you want to negotiate with the Water Department (which does have a system to verify leaks).

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Put the water bill in your name
 so you have more control
 of the situation.

”

The Water Department will let bills accumulate, and tenants have ways to get out of paying their water bills. To avoid any issues with rental properties, make sure the water bill is in your name and then just pass it along to the tenant. That way, you know if the bill is not being paid, you will have a tighter grip on the situation, and you can terminate the tenancy.

If you have any questions, give me a call or send me an email. I would be happy to help you!

What Are the Hot Price Points in Miami?

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If you listen to the news, real estate is this unstoppable juggernaut that’s doing better than ever. In a sense it is, when compared to the market crash of 2007. However, not all market segments are behaving the same way.

In general, the market is a bit soft for sellers, meaning it’s slightly favoring buyers. Prices aren’t going up quickly, properties are selling for less than asking price, and it’s taking them longer to sell. Some areas in Miami have more homes available in the $300,000 and over range. However, there is one exception to this general market condition.

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In general, the market is a 
bit soft for sellers.

”

If you’re looking at homes priced below $250,000, the market is still really hot and it’s hard for buyers to find properties. A big reason for this is because a lot of the homes in this segment are townhomes or condos. Most of these properties don’t qualify for financing unless a buyer can give a 25% down payment in addition to closing costs. That’s pricing a lot of people out and forcing them to instead look at single family homes.

There are a ton of qualified buyers looking for homes in the $250,000 and below range. Any time a single-family home comes on the market below $250,000, it gets multiple offers. Usually in the double digits.

What does this mean for the buyer? Go as fast as you can to a good property when you see it. Don’t try to lowball the seller, either. It won’t work. If you’re a seller, you’re going to have to be competing if you are priced above $250,000, and you need to know the market is shifting for your price segment.

If you have any questions for me or if you’re looking to buy or sell in Miami, I would love to help out. Just give me a call or send me an email.

What Is a Dry Closing in Miami?

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Have you ever heard of a dry closing? Not many people probably have, but it means that there is no funding at the time of closing.

For example, say you’re a buyer, and you close on a Friday but don’t get the keys until Monday. This is a dry closing, and it means that the bank didn’t send all the documentation on time or the wire came through at the incorrect time. All of the paperwork is ready, but the money isn’t there.

Your best option is to find the reason for the delay and when the funds are expected to arrive. Even if you have signed all of the documentation, you cannot get the keys to the home until the money has gone through.

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During a dry closing, you need to 
ask your Realtor what your next 
move should be.

”

My recommendation is to ask the right questions and then assess what you need to move forward. You should always look to your Realtor for tips and tricks on what you should do.

If you have any further questions, please don’t hesitate to contact me!

Be Careful With Quitclaim Deeds

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Quitclaim deeds are most often used to transfer property within a family. For example, when someone gets married and wants to add their spouse to the property, or a couple gets divorced and wants to exclude one person from the property. They can also be used to transfer property from parents to children, or between siblings. Sometimes, they can even be used to avoid having the property involved in a litigation or lawsuit.

However, there are two problems you need to be aware of before using a quitclaim deed.

1. The quitclaim deed only impacts the name and ownership of the property, it does not affect the note of the mortgage. For example, let’s say a couple is going through a divorce. If part of the divorce settlement is that one of the spouses is going to keep the property and both are listed on the mortgage, removing one of the spouses from ownership does not exclude the responsibility of that spouse within the mortgage. They will still be responsible. The only way to be totally free of the mortgage responsibility is to sell or refinance the property.

2. If you are thinking of removing your name from the property in order to not be tangled in litigation, or you bought the home for someone else and want your name removed and their name added, the mortgage also gets in the way. If you are the sole person on the deed and mortgage and you remove your name from the deed and the bank finds out, the only alternative they have is to enact the acceleration clause of the mortgage, which results in a foreclosure. Then, the only thing the bank has to protect their interest with the note is the property itself. It’s the only legal recourse they have, and it’s a very quick foreclosure.

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Consult an attorney before using a 
quitclaim deed.

”

If you’re thinking about doing anything with a quitclaim deed, consult an attorney first so you are on better and safer ground. If you have any questions for me or need any additional information, don’t hesitate to give me a call or send me an email. I would be glad to help out!

How to Tell If Your Miami Home Is in Good Condition

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Today, we’ll discuss how to be objective about the condition of your home. Every seller thinks their property is the best one on the market, so how can you be objective?

First, ask a full-time Realtor about the condition of your property. Realtors work in the market day in and day out. In fact, we view hundreds of properties each week. We understand the trends. We know what buyers are looking for. Most importantly, we can determine how your home stacks up against buyer expectations, and we can tell you which improvements need to be made.

You can also visit other homes for sale in your area. Go to open houses and be frank with the Realtors. When they ask you why you’re visiting, explain that you’re putting your home on the market and you want to see the competition. The Realtor may be interested in getting your listing, and he or she will be more than happy to share more information with you. By being honest, you are respecting the Realtor’s time, and they will be respectful of yours.

Ask a friend to be brutally honest. You need someone willing to tell you the truth. Someone who will look at the kitchen you love so much and tell you that it actually sucks. Someone who will point out exactly what is wrong with your property. You should also choose someone who can tell you what they think without losing the friendship.

Finally, ask potential buyers what they honestly think. If you’re working with a Realtor, they will handle this for you. If you’re selling your home on your own, you need to be prepared and not take the criticism personally. You will need to do this with several buyers because one person’s opinions won’t help sell your home. Some buyers may not be comfortable being critical of your property, so you need to find the ones who will tell you the truth.

If you have any questions about today’s video or if you need a Realtor to come look at your property, just give us a call or send us an email. We would be happy to help you!

How Important Is a Pre-Approval Letter in Miami?

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If you were a seller, would you accept an offer from someone who may not be able to pay for your home? My guess is that you would say, “Absolutely not!” You would be right to say this, and this is why a pre-approval letter is so important.

Before you begin looking for a home or even before you begin looking for a real estate agent, you need to speak with a lender to see if you can actually afford to purchase one. This should always be your first step when you are attempting to buy a home. If you don’t know what kind of home you can afford, then you better speak with a lender.

Not only is speaking with a lender better for determining your buying power, it can also help you to narrow down your home search. I hate to see my clients find a home they like and then discover that they cannot afford it. Don’t make that mistake - speak with a lender before doing anything else!

On the flip side of this, sellers love to see letters of pre-approval. Like I stated before, it proves that you have the funds to buy the home, and this gives the seller peace of mind. Often times, a seller will not even entertain an offer from a buyer who is not pre-approved. If you don’t have a letter of pre-approval, you won’t stand a chance in this market.

If you have any further questions about this market, please don’t hesitate to contact me!

Can You Qualify for a Mortgage While Receiving Disability Payments?

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I had a client bring up a very good question to me the other day. They were applying for a mortgage loan on a home, and they wondered if someone relying on disability payments could use those to purchase a new home.

The short answer is yes, you can use those payments to purchase a home. You won’t be discriminated against, but you do need an award letter from your payment provider. This letter needs to guarantee that you will continue receiving these payments for at least three years.

I recommend that you call a mortgage broker if you are trying to purchase in this way. There are a few more details that they can tell you about. If you need a good lender in Miami, please don’t hesitate to contact me!

Avoid Remodeling When Selling Your Miami Home

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A lot of people in the area are looking to sell their home this spring, and they’ve been asking me lately about how they should go about getting top dollar for their home.

People have been wondering about remodeling their home and whether making some renovations can help them get a better price, but we actually advise against it. Here’s why:

Remodeling may add value to your home, but that doesn’t mean you will get back all the money you put into it. What you really want to do is minor cosmetic work, so you get the negative impressions out of the way. There are easier and cheaper ways to do this than remodeling, we are going to talk about a few of these today.

1. Open up space

Do a major decluttering of your house, and get rid of anything you haven’t used in the last 6 months. Whether you put it in storage, donate it, or throw it away, clear out your home to open up space.

2. Clean

Do a deep clean of your home. This includes scrubbing floors, bathrooms, walls, and putting a fresh coat of paint on areas where you need to impress the buyer.

3. Change the smell of the home

You want the home to smell fresh and clean. Try not to cook with heavy spices or oils in the days leading up to a showing. Lighting candles is a great way to get rid of smells.

You don’t want to start any major remodeling work, because there is no promise the buyer will like what you do. They might have their own ideas for the home. It is better to sell the home in an as-is condition and reflect that in the sale price. You can still sell for top dollar with this method.

If you need specific guidelines or if you have specific questions about what to do to get top dollar for your home, give us a call or send us an email. We would love to hear from you!