It is that time of year that we, "The Pro Team" like to update you about the state of the real estate market here along the gorgeous Alabama and Perdido Key gulf coast. There are many things that we would like to share with you.

The lending atmosphere has definitely tightened up. Fannie Mae and Freddie Mac are having difficulties. They now limit how many loans they will back for any one borrower to only 4. This can change the interest rates for buyers that fit into this category. Almost without exception, lenders in second home markets are requiring 20 % to 30% down payments. Lenders are also becoming much stricter on how they review and accept insurance and condominiums.

There are more foreclosures at this time than in the past several decades. For a purchaser this can be good. There is a one year right of redemption once a property is foreclosed upon but we can help you work through that issue when financing the property.

At this time, we are also seeing a new phenomenon called short sales. This is when the property is mortgaged for more than it is worth in the current market. The current owner does not wish to destroy his credit scores with a foreclosure and negotiates with his lender or lenders to accept a lower offer than is owed on the property. A buyer must have patience and be ready for disappointment should it not come to fruition. The process has been known to take months with the end result never being known until the 11th hour.

The Alabama Legislature has just enacted a bill that changes how the state capital gains are collected. The funds (up to 4% of sales price) will be collected at closing from out of state sellers. The closing company will forward the funds to the state in a timely manner. The most intriguing part of the bill is that it states the purchaser would ultimately be responsible for the funds should they not be collected at closing.

Now the good news, things are looking up. We feel like we can see the light at the end of the tunnel. The numbers of properties for sale are down 10% to 30% (depending upon the type of property) from this time last year. Sellers are being more realistic overall with the pricing of their properties or taking them off the market for now. The overall trend in our market is stabilizing since the bottom fell out in 2006. This is creating a more healthy market for purchasers and sellers alike!

Our advice to owners is still, do not sell unless you have to for financial, physical or emotional reasons. If you must sell, pricing is everything. Our advice to buyers is still, now is the time to buy! Prices are the best they have been in 5 years. Interest rates are still good depending upon your credit scores, loan to value ratio, and type of loan that you are trying to get. So come and buy it!

Please remember that we "The Pro Team" are always here to serve your real estate needs. We are never too busy to handle your referrals with the same professionalism, knowledge and expertise as we have always shown you. Our business is built on maintaining lifelong relationships with the people who know and trust us. Feel free to call or email anytime as we are always here for you.

We wish you a happy, healthy and successful rest of the year.

Sincerely,

"The Pro Team"
Buzz & Dotty Farias
James Calvert
Kandy Hines &
Karen O.