This article began by writing about how to save money in these tight economic times, And, I realized that pinching pennies and being a millionaire are interrelated topics.

I have known people that lived through the Great Depression. They remember it well. These people learned to pinch pennies. And many have become people of wealth, that live modestly.

When I write this list, I reminds me of things my grandparents used to do.

They bring their styrofoam coffee cups home from fast food restaurants to use and reuse them.

They wear the same pair of shoes for years.

They don't wear a different outfit everyday..

They drive a modest car, with no car payment. 

They shop with coupons. 

They shop for items on sale.

They color their own hair.

They cut their own lawns.

They clean their own homes.

They don't eat lunch out everyday.

They don't buy drive through coffee.

Their habits can be closely followed.   And they have a nest egg to show for it.

It often surprises me how careless some people are with their money.  They have no regard for it. 

Yesterday, I went through the drive through at a fast food chain restaurant. My bill totaled $3.37. When I got to the window I handed the cashier $3.50.  She looked at me and said, "You don't need your change back, do you?" Was this something new? I wasn't sure that I heard her correctly."Excuse me?"  She repeated, "You didn't want your change back, did you?" "Yes, I would like my change back!"  13 cents a day is the equivalent of $47.00 at the end of a year!

Often times when my family and I are cleaning a rental house after a tenant moves out we find money on the floor.  And, over the years I have found that the tenants that had a difficult time paying their rents are the houses with the most money left on the floor,  Interesting correlation?  Maybe so, but not really. In some houses we have picked up as much as $10.00 in change on the floor! 

Kennedy Space Center has begun the countdown clock to the shuttle Endeavour liftoff on November 14, 2008 at 7:55 PM. This is one a just a few manned, night launches. There will be 7 astronauts on board. It will be a 15 day mission to the International Space Station. If the mission is a success, if will double the number of astronauts the station will ba able to hold in the future.

If you have never had the opportunity to see one of these it is well worth it.  It is a once in a lifetime opportunity. Living here in Melbourne Florida, I am able to stand in my driveway and see the breathtaking views of the liftoffs.

NASA is carefully watching the weather report as they are indicating that a front is in the forecast that could bring in inclement weather.  This mission has previously been scrubbed.

Here is a link to read the full story.

Don't we always hear the old saying that... Hindsight is 20/20?

Hindsight allows us the experience of seeing things crystal clearly, since they've already happened! We can always look back at what happened in the past.

Simple concept, right?

Why isn't our vision as clear in predicting or seeing the future?  

Simple again, because it hasn't happened yet. And, often times we fear the unknown.

But, doesn't looking back into the past, often help us to SEE things in the future? I mean, if we really want to, that is. 

For some, maybe they don't want to see what is going to happen.

I know that we are living in complicated times today. And, I know that we are in the process of many changes to our economic structure.

But essentially, to a certain extent,  doesn't history repeat itself? 

Isn't the economy cyclical?

Isn't the real estate market cyclical?

So, doesn't that mean that if we follow the economic cycles of the past and apply them to the future, we should have somewhat of an idea of which way the economy could or may be headed?

Isn't it true that what must go up, must come down?

And what goes up fast, must come down fast, too?  Right?

It doesn't seem to be that complicated a concept.

So, FINALLY, you're probably thinking...to the point of my post...

How many times have you said, or have you heard someone else say,

"I COULD HAVE BOUGHT THAT HOUSE (or piece of property) 20 YEARS AGO FOR 'X' AMOUNT OF DOLLARS.  AND, TODAY IT'S WORTH 5 TIMES THAT AMOUNT!  IF ONLY I'D BOUGHT IT BACK THEN! "

Not trying to be a smartie here, but if I had a dime for everytime I heard that... I'd be RICH!

HMMMM... the grass always seems greener in the past, somehow.  Because, it is no longer unknown to us!

But, the bottom line is that "NOW IS THEN, IN 20 YEARS, YOU WILL BE SAYING THE SAME THING!"

We are always fearful of the unknown, of the future, because we don't know where it will take us. 

But, the reality of it is, people will always need a place to call home, a roof over their head...that will never change!

Don't miss opportunities available to you today, because you are afraid of what the future may bring.  There will always be ups and down in your life, in the economy, in the markets.

Don't let fear paralyze you into inactivity. Some people are comfortable in their uncomfortableness. Don't let that be you! Don't look back in 20 years, and say "I could have bought that piece of property 20 years ago for dirt cheap!"

There are great opportunities in the real estate market today. 

Rates are at an all time low and there are so many properties to choose from...

Now is the time to buy Melbourne Florida Real Estate!

   In the mornings I wake up, grab my cup of tea and check my office messages, my home messages, my voice mail, my fax machine, my text messages, my e mail and my instant messages. I check for comments on the 3 blogs that I write.  

And I wonder, HOW DID WE GET HERE?

  Now, I’m probably dating myself here, but as a kid we didn’t have computers. We didn’t have cell phones, or CD’s or DVD’s or portable DVD players, or I pods, or I phones, or all the new fangled gadgets we have today.

I remember old fashioned, plug in the wall cord telephones, and no answering machines. If you weren't home when the phone rang, then you just weren't home!

We had 8 track and cassette tapes that we played in our tape and cassette players.  I used to collect 33 rpm and 45 rpm records to play on our record players. (I still have some up in my attic.) I do remember as I got older getting a big bulky walkman that I could use outside.  I thought it was really cool.

   “Wow, Mom, how did you survive without a cell phone and computer?” my younger daughter, Sam asked.  “That must have been terrible!”

Hmmm. "No, actually we didn’t know the difference.  Back then it was a more peaceful, quieter time," I responded. 

“So, without cell phones and computers that means you didn’t have voice mail, or text messaging, or instant messaging or e mail?”

I smiled, “that’s right.”

“Oh, my gosh, how did you keep in touch with your friends?” she was baffled. 

That’s funny, I thought, I don’t ever remember it being a problem. “I actually got to see my friends. I saw them in school everyday, and then we played outside after school, unlike you guys do today.”

“Oh, I would hate growing in your day,” Sam responded, as she walked away with a perplexed look on her face.  I just smiled.   

     I love what I do for a living, but sometimes,  just for a split second, I long for the simpler times… then I am snapped back into reality by the sound of my cell phone ringing and my email notification indicator beeping. Sorry, I’ve got to run…

I know that times are tough, and the prognosis is that they are expected to get tougher in the coming weeks and months ahead, before they get better. 

None of us really knows what the future will hold for any of us.

We have just heard that Bernanke has dropped the Fed funds rate  down to 1.5%.  Will that bring confidence to the market? 

We have heard that banks and lenders have tightened their guidelines on lending money for mortgages.  How tight will it get? Will it be harder for buyers to get loans or are we just bringing some "normalcy" back to our mixed up markets?

We have seen many creative marketing tools being used to help sellers move their homes more quickly off the market. 

So, is it time for owner/seller financing to make a comeback? 

Or has it already come back in some areas of the country?

A large number of homeowners are not in a position to offer favorable financing options to potential buyers in the market. Many are going into foreclosure or short sale.

But, owners that purchased more than 5 years ago and own their homes free and clear may be excellent candidates to offer a buyer a low rate, owner financed loan. Essentially the owner agrees to hold a purchase money private mortgage on the home.  The buyer makes their mortgage payment to the owner, instead of an outside lender.

Ten years ago, I purchased several rental houses with seller financing here in Brevard County Florida.  The sellers and I were able to work out favorable terms for both parties.  I paid those loan payments every month for years, until interest rates dropped and I refinanced the loans for lower interest rates, and paid those seller financed loans off.

Considerations of owner/seller financing for a seller*: 

The owner may be able to sell the home more quickly, than a home that requires a new first mortgage from a lender or a bank. 

Often qualifying is easier for a buyer on owner financed homes.  It depends on the seller's criteria.

The owner typically gets a sizeable down payment upon the sale of the property.

If the house is an investment property, then capital gains can be deferred on the home.  The owner must only pay gains yearly on the amount they receive, as they receive it. They don't have to pay gains in one lump sum in the year of the sale* (please check with your accountant). 

The seller receives monthly principal and interest payments.  Thus, they may net more for the home over a period of time, because the buyer is paying interest on his principal loan amount.

Typically, the interest rate on an owner financed property is a bit higher than lender rates, because of the favorable terms of the loan and no closing costs to the buyer, and the riskiness of the loan.

REMEMBER:

There is a certain amount of risk involved in holding a private mortgage for a buyer.  Owner financing will not allow a seller to completely walk away from a property at closing.  The seller will still have a long term relationship with the buyer. If the buyer does not pay the mortgage, property insurance or the taxes, the seller may be forced to foreclose.

Considerations of owner financing for a buyer*:

Often times easier qualifying than going to an outside lender.

Typically, no closing costs, that are otherwise required by a lender.

May be able to purchase a home that a lender with tight restrictions would not have lent you money on.

REMEMBER:

Owner financed homes may require a more substantial down payment than a lender financed property.

*Please be advised, I am not an accountant.  Owner/seller financing is not for everyone.  Please discuss your indivdual situation with an accountant to determine what the best course of action for you is.

So, will we see a comeback on seller financed homes? 

Or have sellers in many parts of the country already offering it?

 

So, REALTORS are trying to throw in an added twist. 

REALTORS are opting to hold houses open in the evening, during the week, after people get off work.

How will that work? Will it make a difference? Will attendance increase? Do buyers like them better? 

Is this just another way that REALTORS are catering to the changes in our market? And catering to the needs of their buyers and sellers?

As a REALTOR, many of my listing appointments are scheduled in the evenings at the convenience of sellers.  And, often times I work with buyers on weeknight evenings. My other evenings are spent enjoying my teenage daughters many school functions.

So, are REALTOR open houses effective during weeknight evenings or are they a waste of time?

Does it depend on the type of home being offered for sale? 

So, next time you go out looking for a home, be sure to wear your jamies and bring your flashlight,  your pillow and your toothbrush!

A REALTOR can be a wealth of knowledge to a prospective buyer. 

REALTORS build relationships with customers and often buyers feel as if they can talk to them about anything.

Due to fair housing laws there are many questions that REALTORS cannot answer.

For example REALTORS cannot comment on-

- demographic statistics, such as the cultural make up of a neighborhood.

- sex offenders in a neighborhood.

- crime statistics in a neighborhood.

REALTORS are forbidden from steering a buyer to or away from a specific area.

In our area of Brevard County Florida we have seen such a population boom that our school districts and boundary maps have continually changed over the last several years.  So, when a buyer moves to a specified area, we are uncertain as to whether their home will be included in their school district of choice the following year.  Thus, we have been informed not to discuss school districts.  We refer the buyer to the Brevard Public School System Website, in our area.  The site is full of statistical data on all the schools in our area.

Many counties have their own school system websites. There are even websites available that will tell which addresses are within a given school district. You can find them on my website. 

REALTORS are in a position to refer their customer to the necessary websites to help them find the information that may help them make a decision to suit both their wants and their needs.  One such website is City Data.  It is packed full of statistical data on any given area. Crime stats for an area can be found here, also.

A REALTOR can refer a client to the National Sex Offender Registry Website for sex offenders in an area.

So, the next time a buyer asks a REALTOR a question that they are unable to answer, remember, there is an abundance of excellent information available online today.

I recently read that experts say that a person's primary residence comprises over 50% of their financial wealth. 

Today, that can be a scary prospect.

Everyday, we have been hearing about the troubled times our country is facing.  The government takeover of Fannie Mae and Freddie Mac.  Lehman Brothers, Merrill Lynch and AIG,  what will be next?  Now, the government has come up with a plan to help bail us out.   No one know what lies ahead.

Remember the tech stock market?  All of those companies values were based on overinflated numbers on a sheet of paper.   Those were never true values, except for people that sold during that time and walked away with a pocket full of money. Then the bubble burst. 

Then came the real estate bubble.  Was that any different than the stock market bubble?  I think not.  Weren't the values of homes at the peak of the market in 2005 based strictly on overinflated values on a sheet of paper?  The only owners that truly reaped their wealth were those that cashed in and sold their homes during that peak in the market.  Those that didn't sell gained nothing, except maybe higher tax and insurance bills.

Many of those that bought, got stuck.

So, if it's true that 50% of an owner's financial wealth is found in their primary residence, and our real estate market is going through a time of correction in certain parts of the country, an owners "savings" may be dwindling down to nothing (if they aren't already upside down or going into foreclosure).

These are scary statistics in today's uncertain times.

Visit my website at www.SandyShoresMelbourne.com

I left my umbrella at home today because the weatherman said that there was only a 20% chance of rain

What a great job…being a meteorologist! You get to be wrong 50% of the time.     

As a REALTOR, if I was wrong 50% of the time, I would have been booted out of the business many years ago. If I were wrong 25% of the time, I would be standing on the unemployment line. Big mistakes in real estate could mean a loss of thousands of dollars to a buyer or a seller. These statistics would be unacceptable in a REALTOR'S business. Should I quality that last statement by saying....they would be unacceptable for an agent planning on staying around for any period of time.

I love being a REALTOR. Every single transaction that I do is different from the previous one and will be different from the next one. No two are the same. 

The real estate business requires continuing education as well as a comprehensive understanding of current market conditions.

a buyer that calls us or brings a copy of information on a property from an internet site with an estimate (I prefer to use the word guess-estimate) of what a particular property is valued at.

Sometimes this information proves to be quite a stretch from the true value of a property.

Today, there are a handful of useful real estate websites that provide excellent information to the public.  Often times the information provided can make a REALTOR's job much easier, but...

Often times, it can make a REALTOR's job much more complicated.

Some sites provide information on the "value" of a home in today's market.  Well, unfortunately the information is not always correct.  Often times there is not sufficient data for those sites to "guess-estimate" the value of a home. 

Has the home been updated? Has remodeling been done? Does it have a new kitchen and baths?  Does it have crown moulding, ceramic tile floors, updated windows, immaculate landscaping, updated fixtures...?

Does it have a newer roof and a/c? (A roof and a/c don't always directly add value, however an educated buyer "expects" those things in a home.  These items certainly make a home much more attractive to a buyer, than a home that doesn't have them.) 

There are so many factors that must be considered in looking for the true value of a home in today's market. 

And, I know in my area of Melbourne here in Brevard County Florida  that some of these real estate internet sites are not able to keep up with the quickly changing market. Remember also, the information coming out of these sites, is only as good as the information going in.

So, my advice to buyers and sellers:  when looking for true market value of a property, contact a local realtor to the property in question, and get a comparative market analysis.  Don't take the word of an internet website as the true figure. Use these valuations just as "somewhat" of a guideline to give you a 'ballpark' range of value.

Did you know that over 30% of homeowners in the nation own their home free and clear?

Who are they?

On the other hand, some feel that with interest rates as low as they've been, if they can qualify for a mortgage, then it's best to go ahead and borrow on a simple interest loan, with no mortgage prepayment penalties. 

I think it's a matter of personal preference.

Are you comfortable with a mortgage or without a mortgage?

Have you heard about buyers that are buying and then bailing?  Good idea or not? Illegal or not?

Many around the country are in the same predicament. They bought a house at the peak of the market in 2005 - 2006 and paid an overinflated price for it.  Today, as we all know, many areas of the country are experiencing market corrections.  In some areas that's putting it lightly, I know.  Okay, in many areas the "proverbial real estate bubble" has burst, and owners are losing their shirt -  there, I said it.

Well, these owners know there is no easy way out of this seemingly impossible situation, so what are they doing?  They are going out and buying a second home, at today's lower, more realistic prices.  In order to qualify, they are informing their lender that they are going to be renting out their existing property.  Some even produce a "dummy lease" for their "dummy tenant".  

When they finish with the purchase of their new home at today's lower prices then walk away from the first home, and let it go back to foreclosure.  They are dumping it.

Who cares?  Right? They already have a new property.  What difference does it make to them?

No big deal, OR IS IT?

We have heard that tighter guidelines could keep this from happening in the future.  But, are they?

Isn't this just costing the taxpayers more money? 

Isn't this driving property values down around the country...when homes are coming back on the market as foreclosures? 

Or are we putting buyers in the market that wouldn't have been there otherwise? Or are a large percentage of these owners going to lose their home to foreclosure whether they do this or not?  I know in our area of South Brevard County Florida, foreclosures are driving prices down because banks are becoming more aggressive with properly pricing them to quickly move them off the market.

So, what do you think?

Should owners who paid overinflated prices for their home be able to buy and bail? Or is it fraud?

This morning I was driving across the Eau Gallie Causeway in Melbourne Florida, coming back from a listing appointment on a home in Satellite Beach.  This causeway stretches from Melbourne to Indian Harbour Beach here in Brevard County.

The weather was beautiful! 

I had a million things on my mind, as usual, and I wasn't really taking in the beautiful sights around me. But then, I briefly stopped to take in the beautiful sights.  The Indian River Lagoon was absolutely breathtaking!  It looked like a sheet of glass.

In this busy hustle and bustle world of ours, we often forget to stop and admire the sights around us. 

I think our paths are taken in certain directions, at certain times, so that we MUST momentarily stop and relish the beauty of something around us!

So, the next time you're in a hurry to get from one appointment to the next, remember...

 Stop and Smell the Roses in whatever form they appear to you!

Is there too much personal information available to the public today? Well, try this link http://www.privateeye.com/ on Private Eye.com.

You can type in your name, or a property address or a phone number. 

It will pull up information on a person, or it can serve as a reverse directory by typing in a property address or by typing in a phone number! 

It will provide you with a pretty thorough list of alias' for the person you are researching. 

And this is the part that almost made me fall out of my shoes,  it will provide you with a list of known relatives, acquaintances, and businesses. It will provide names of parents, sisters, grandparents, aunts, uncles and cities and states in which they live!  It can also provide a list of previous owners of a property, previous tenant names if the mailing address you are researching is associated with the rental home. (I did notice there were some slight errors in people's ages.)

I was shocked at all the FREE personal relationship information this site provided!

For a additional fee, you can order a complete report on a person, an address or a phone number. Several different types of reports are available.

Is this too much personal information?  Or could this information be beneficial to landlords for tenant screening?

Should this information be available to all?