Real Estate Matters A newsletter from Carib-Gulf Realty Group         June 2007

WELCOME Welcome to Real Estate Matters . . . . .  a free monthly publication from Carib-Gulf Realty designed to help readers stay abreast of real estate issues such as home buying, purchasing and managing investment properties, mortgage trends, taxation issues, and tips on buying and selling real estate in Florida. You are receiving this because you've expressed an interest in buying or selling real estate recently.  WHO WE ARE   Carib-Gulf Realty is a Licensed Real Estate Brokerage firm providing clients with commercial-investment and residential brokerage, along with management and consulting services. Carib-Gulf Realty has helped our international, institutional and domestic clients with virtually all aspects of their real estate needs. Carib-Gulf Capital is a Florida Licensed Mortgage Brokerage Business that provides residential and commercial mortgages, hard money and other private financing, and provides strategic consulting for our clients. Carib-Gulf Consulting utilizes its more than half-century of experience to provide consulting services within the real estate and financing industries and to the public at large.   NATIONAL MORTGAGE RATE AVERAGES  National average mortgage rates:   30 Year Fixed Conforming Rate 6.875% 6.750% 6.625% 6.500% 6.375% Points 0.000 0.406 0.906 1.406 1.906 APR 7.003% 6.878% 6.753% 6.684% 6.616%   15 Year Fixed Conforming Rate 6.750% 6.625% 6.500% 6.375% 6.250% Points 0.000 0.031 0.531 0.906 1.406 APR 6.878% 6.753% 6.628% 6.559% 6.547% Fixed rate conforming loans "conform" to the limits and criteria set by FNMA and FHLMC, which is currently $417,000 for a single family home in the continental U.S.   5/1 Conforming ARM Rate 6.750% 6.625% 6.500% 6.375% 6.250% Points 0.000 0.281 0.656 0.906 1.156 APR 6.878% 6.753% 6.628% 6.503% 6.378%   7/1 Conforming ARM Rate 6.875% 6.750% 6.625% 6.500% 6.375% Points 0.000 0.281 0.656 0.906 1.156 APR 7.003% 6.878% 6.753% 6.628% 6.503%   3/1 Conforming ARM Rate 6.625% 6.500% 6.375% 6.250% 6.125% Points 0.000 0.156 0.406 0.656 0.906 APR 6.753% 6.628% 6.503% 6.378% 6.253%   10/1 Conforming ARM Rate 7.125% 7.000% 6.875% 6.750% 6.625% Points 0.000 0.031 0.406 0.656 0.781 APR 7.253% 7.128% 7.003% 6.878% 6.753%   1/1 Conforming ARM Rate 6.750% 6.625% 6.500% 6.375% 6.250% Points 0.156 0.156 0.281 0.281 0.406 APR 6.878% 6.753% 6.628% 6.503% 6.378% Adjustable rate conforming loans "conform" to the limits and criteria set by FNMA and FHLMC, which is currently $417,000 for a single family home in the continental U.S. 30 Year Fixed Jumbo Rate 7.000% 6.875% 6.750% 6.625% 6.500% Points 0.000 0.031 0.281 0.656 1.281 APR 7.128% 7.003% 6.878% 6.753% 6.628%   15 Year Jumbo Fixed Rate 6.500% 6.375% 6.250% 6.125% 6.000% Points 0.000 0.281 0.781 1.281 1.656 APR 6.628% 6.503% 6.434% 6.366% 6.297%   USEFUL LINKS   Real estate related web sites . . .   Carib-Gulf Realty sites: www.Carib-Gulf.com www.WaterfrontHomesClearwater.com   www.PinellasHomesOnline.com www.eHomeCharlotte.com   Carib-Gulf Realty Frequently Asked Questions:  www.Carib-Gulf.com/FAQ-link.html   Tampa Bay News and Info: www.TampaBayStart.com   Are you thinking of Selling By Owner? Get Dunedin FSBO Info here: www.DunedinFSBOInfo.com   Thinking of a career in real estate? www.carib-gulf.com/careers-link.htm

RE-EVALUATING VALUE:  WHAT'S THAT PROPERTY REALLY WORTH, ANYWAY?   Does the rock-solid bulwark of property valuation—the CMA—still have a place in this fluid market? You Bet.  A CMA (Comparative Market Analysis, or as some call it, Competitive Market Analysis) is based on past sales, and that data is extrapolated to forecast current value. However, if those sales are recent, say within the last quarter, then the CMA is credible.  The caveat here is  that those sales must reflect the current market conditions in order to be viable. So if a neighborhood’s general property values are trending downward, then the CMA must be adjusted to reflect that value slide.  Conversely, in a neighborhood with stable or rising values, the sales prices of recent sales are probably still valid.   ARE THERE STILL REALLY GOOD DEALS LEFT OUT THERE??    Absolutely.  The speculative residential real estate market has stabilized, of course, and the wildcat market of the last few years has certainly slammed on the brakes.  But does that means there are no good deals left? Nope.  With unsold property inventories higher than they’ve been for years, and with lenders very cautious about making risky loans, there has been downward pressures on sales prices.  Sellers are slowly realizing that the price has to come down—significantly.  For sellers to get their price they must offer attractive terms to buyers, paying closing costs, or carrying some short term paper for instance. For those investors who have good negotiating skills, there exists a unique opportunity to acquire properties in this down turned market.  The investment strategy today is buy and hold.    JUNE SHOWCASE PROPERTY   Every month we'll showcase a different property listed through Carib-Gulf Realty.  Check it out!   Located near the Bay in Dunedin, this 3 bed, 2 bath single family home backs up to the Pinellas Trail.  It needs some TLC, but is in a neighborhood of newly renovated homes in the $380,000 range.  Offered at just $199,900. CONTACT       A. Linn Wyllie REALTOR®, C-CREC, ACRE CERTIFIED AND ACCREDITED REAL ESTATE CONSULTANT Pinellas and Tampa Bay: (727) 725-9800 Toll Free:  (877) 725-9802 2555 Enterprise Road   |   Suite 11-1    |    Clearwater, FL  33763 Email: linnwyllie@carib-gulf.com        Copyright Carib-Gulf Corporation 2007.  All Rights Reserved

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