Bobby Freeman

Everyday now more and more people our using the "F" word thinking it is the only way to get a real property deal. I'm talking about "Foreclosures".

Many buyers contact us and only want a current list of all foreclosed properties here in Brevard County Florida. I usually then ask why only foreclosed properties?

They reply that is the only way of getting a great deal in today's real estate market. Their mentality is if it says "Foreclosure" it is a good deal. Yes, there are great deals out there but there are also deals just as good from original owners.

The bank has lost a lot of time and money having to go through the foreclosure process. There a many fees such as court costs and attorney fees, not to mention the money and time the lender has lost with the owner not making payments.

So once the bank becomes the new owner the property is then listed on MLS. Most banks do price their properties under market value in hopes of a quick sale. Sometimes there is even a bidding war between buyers. There are some bank properties that are sitting because they are asking too much.

On the flip side a knowledgeable buyer's agent can locate great property deals that are not foreclosures. Here's a look at recent one:

921 Spanish Cay in Merritt Island. This house was listed for $319,900 and sold for $337,000. Property had 8 offers, 3 of them being my buyers.

So as you can see there have been many great property deals out there and there are more to be had. It is very important to have an experienced team on your side such as RE/MAX Elite's McCoy-Freeman Group. Just let us know your property criteria and let us show you how to accomplish you real estate goals.

"The British Are Coming!"

4/18/2008 at 4:55 PM - Condos For Sale / Rent

It's been 233 years since Paul Revere's famous "Midnight Ride" from Boston to Concord. He warned the colonists and Minutemen, “The British are coming.” Minutemen were citizen soldiers in the American colonies who were ready to fight the British troops at a "minute's" notice during the years before the American Revolution.

We'll, I'm here to warn all sellers of Cocoa Beach property: "The British are coming! The British are coming!" Get your homes ready to sell in a minute's notice!

Much has changed since 1775. There are no Minutemen here ready to fight, just anxious sellers ready to negotiate and welcome British guests. Locally, the only mention of Minutemen is Minutemen Causeway in downtown Cocoa Beach. It runs east and west with many luxury waterfront homes, a championship golf course, "A" rated schools, wonderful dining and, of course, the beach.

These overseas buyers are bringing cash and good credit instead of muskets and canons. They are using our weak dollar against their high euro to purchase investment property at great prices. We also have lenders who are experienced with overseas property transactions and are available to answer your questions.

So, yes the British are coming but so are the Canadians and many others! If you need information on the home buying process in Florida, contact the professionals of the McCoy-Freeman Group with RE/MAX Elite. Call toll free at 877-611-7873 or send us an email. We are available 7 days a week to answer, show and advise you on any property on Florida's Space Coast.

Jumping The Fence

4/18/2008 at 4:53 PM - Investments

Pending, contingent and closed sales continue to rise and inventory is at its lowest level since May 2006. As of 3/23/08, there are 42 contingent condo contracts in Cocoa Beach and Cape Canaveral.

The McCoy-Freeman Group which consists of myself, Bobby Freeman, my wife Nikki and mother-in-law Jennifer McCoy, represent 10 out of the 42 or an incredible 23% market share of all pending sales in the Cocoa Beach area condo market.

Our effective international and local marketing campaigns combined with superb market knowledge continue to attract new buyers and sellers daily. Not to mention even more buyers are "jumping the fence" to get the deals while they last.

The majority of our buyers are from areas such as England, Canada, Alaska, South Florida, Finland. A few of these clients indicated to us they were visiting other areas of Florida to decide where to buy beach side property. With everything Cocoa Beach has to offer, the choice was simple.

Here are just a few examples...

1. Property pricing is lower here than in many other barrier island beach towns.
2. Excellent views of all NASA rocket launches plus the Space Shuttle lands here as well. Anyone ever felt the sonic booms made when the Shuttle reenters the atmosphere?
3. Sandy beaches, sunny warm weather, friendly people.
4. Just 45 minutes from Orlando International Airport and 30 minutes to Melbourne International Airport.
5. One hour drive to most Orlando area attractions such as Walt Disney World, Sea World and Universal Studios.
6. Ever wanted to learn how to surf? Cocoa Beach offers one of the best locations for beginners.
7. Port Canaveral, the 2nd busiest port in the U.S., serves fun cruise ships and gambling cruises, excellent restaurants, and first-class fishing. Not to mention Disney's two newest and biggest cruise ships to be coming soon!

There are many other examples but the best way to enjoy the many amenities of the Cocoa Beach area is to come here yourself. If you are looking for property and need professional service contact the RE/MAX Elite's McCoy-Freeman Group. I will guarantee you will have the best representation available.

We know the Cocoa Beach area market better than anyone and we are available 7 days a week for showings, questions and advice. Give us a call toll free at 877-611-7873 and let us make your real estate purchase as easy as possible.

Also, visit the area's only Condo Super Center web site for detailed information on ocean front condos in the Cocoa Beach area.

How did it all start? Who is to blame? Is the worst over?

4/10/2008 at 11:20 AM - Investments

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Let's reflect and review the key factors relating to the recent real estate collapse.

1. The Federal Reserve began aggressively cutting rates after the September 11, 2001 terrorist attacks in order to avoid a possible economic recession. By mid-2003 the rates reached 1%

2. Mortgage rates fell from 8% in 2000 to 5.5% in mid-2003. Adjustable Rate Mortgages (ARMs) rates fell as well.

3. Housing sales volume and demand rose to successive highs in 2003, 2004 and 2005.

4. Home prices increased as well. For example, a one bedroom in Port Side Villas sold pre-construction in 2004 for $113,900 and then resold on 11/11/05 for $200,000

5. With housing demand on a steep upward trend and a general weakness in the stock market, "easy" wealth gains were common for real estate owners. This demand required additional financing.

6. Chasing after high yields, global capital providers were eager to provide financing because rating agencies such as Moody's, Standard & Poor's and others viewed subprime products as 'safe' alternatives and ranked them as top Triple-A ratings.

7. There was so much liquidity available that even risky borrowers were able to secure financing with little or no income documentation.

8. This caused many "house-flippers" to enter real estate markets expanding demand for housing and driving house prices to even higher levels.

9. Inventories were down and homebuilders couldn't keep up the demand. Everyone was happy while making lots of money and equity from their real estate investments. Many books were bought on how to endlessly profit from real estate.

10. "What goes up must come down." Mortgage rates began to climb in 2005 when the Federal Reserve raised rates and caused housing demand to fall.

11. With demand decreasing and supply increasing, home pricing fell as well. For example, another one bedroom condo in newly built Port Side Villas is currently listed for $105,000.

12. Some "flippers" began walking away from contracts and developers were stuck with excess inventories.

13. Subprime loans and ARMs were resetting to higher interest rates. Refinancing was not possible for most since the value of their houses was lower than the value of their mortgages and many were forced to foreclose or short sale their investments.

14. Lenders began writing down their losses while more homeowners and flippers just walked away from their purchases.

15. Global capital providers stopped funding subprime loans after rating agencies no longer rated those investments as Triple-A quality.

16. The subprime market came to a halt and the global capital providers also stopped funding many other mortgage options including the jumbo loan market.

17. In mid-2007 the Federal Reserve began cutting rates again and is expected to make deeper cuts in the near future.

Yes, there is plenty of blame to go around but I mostly blame the rating agencies whom rated these loans as "Triple-A" quality. If they would have properly assessed the risk in lending hundreds of thousands of dollars to risky-borrowers with little documentation then the global capital would have never reached subprime homebuyers. Flippers are to blame as well but without subprime lending, many would have never been able to enter the market. There would have never been such of a housing boom.

I also blame those who took ARM's instead of fixed rates because they were able to buy more of a house at a lower rate and figured they could refinance at a fixed rate later on. What goes up must come down and what comes down must come up and that's what happened to interest rates.

Will this happen again? NO. The global capital providers will be very careful when lending money to our real estate market. We are going back to careful underwriting standards of verifying buyer's income and thoroughly checking the borrower's ability to repay the loan. If you can't pay, you won't be able to play.

Is the worst over? Hard to say but the facts are that we have an increase in signed sales contracts & mortgage applications. Local inventory is down and demand is increasing. For instance, Cocoa Beach and Cape Canaveral had 46 total closed condo sales this year. Currently there are 40 pending condo sales and that number is going up. Inventory continues to drop every month since last year. Total condo inventory for Space Coast Association of Realtors in January 2007 was 1,678. This past January that number was reduced to 1,317.

Historically real estate has always been a great long-term investment and will continue to be so especially in sunny Florida. If you would like to discuss current market conditions or would like a list of available properties, contact the McCoy-Freeman Group.

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