The numbers are in and they're NOT, I repeat NOT as dreary as expected, given the turmoil in our markets. October may be worse...only time can tell. Simply put, only 6% of all homes in the Tampa Bay area sold, and if they did sell, it was at 84% of the original listing price!
TAMPA BAY AREA (tri-county) Homes Condos Total Units
Total Units Available: 26,462 11,639 38,101
Total Units Pending: 2,259 574 2,833
Total Units Sold: 1,791 463 2,254
Absorption rate: 6.76% 3.98% 5.92%
Avg Days on Market 103 days112 days 105 days
Months of Inventory 14.8 mons25.1 mons 16.9 mons
Sold vs List Price % 93% 93% 93%
Sold vs Original List Price % 84% 85% 84%
PINELLAS COUNTY Homes Condos Total Units
Total Units Available: 9,066 6,638 15,704
Total Units Pending: 737 298 1,035
Total Units Sold: 565 229 794
Absorption rate: 6.23% 3.45% 5.06%
Avg Days on Market 92 days 113 days 98 days
Months of Inventory 16.0 mons 29.0 mons 19.8 mons
Sold vs List Price % 90% 92% 91%
Sold vs Original List Price % 82% 85% 83%
N. BEACHES (476-478, 374, 375) Homes Condos Total Units
Total Units Available: 227 862 1,089
Total Units Pending: 15 37 52
Total Units Sold: 10 28 38
Absorption rate: 4.41% 3.25% 3.49%
Avg Days on Market 148 days 116 days 124 days
Months of Inventory 22.7 mons 30.8 mons 28.7 mons
Sold vs List Price % 82% 92% 88%
Sold vs Original List Price % 74% 88% 82%
Tuesday, October 21, 2008
Monday, October 06, 2008
I was recently contacted by a homeowner in a condo complex in Florida with a question that is probably all to common...
"If I feel that the Monthly Maintenance Fee is too high (based on what it was when I moved in and the minimal Common Area assets we maintain) and if I only continue to pay the old MMF amount, what will happen?"
Speaking generally, we must assume that these annual increases are calculated correctly and applied per the condo bylaws and rules. If not, that's a whole 'nother story!
In my experience, a homeowner in a condo community is obligated to pay the full assessment as approved by the Board of Directors, even if they disagree. Should one only pay a partial amount (for example the old MMF amount), the difference will become a late payment and/or deficient amount. At that point, any future MMF payment would first be credited to the late amount and then applied to the current month. As you see, after 6 months, this could be a large deficit.
PLEASE understand: an association, at least in Florida, can and will foreclose on an owner for late fees owed and take possession of the property!
Consider the following story:
By MICHAEL SASSO The Tampa Tribune
Published: June 2, 2008
NEW PORT RICHEY, FL - Tired of the nagging letters from your neighborhood homeowners association, the threats of liens on your home?
Before you ignore the homeowners association, consider the fate of Gregory Green.
More than three years ago, Green's body seemed to be falling apart. Overweight, he suffered two blood clots in his lung, then he needed surgery for a back injury, then he was diagnosed with diabetes. On his doctor's advice, he left his job at an Alzheimer's care center in Tampa and began collecting disability benefits, which were about half his previous salary and put a strain on his family's finances, Green says.
By 2005, the family of five had fallen behind on dues to the homeowners association of The Glen at River Ridge, which represents about 150 homes in a west Pasco County subdivision.
The result: In September, the homeowners association foreclosed on the house for owing $580.
"These are neighbors," Green said of the board of directors of the homeowners association. "Neighbors are supposed to be compassionate."
The Greens' story isn't the norm for homeowners association disputes, but foreclosures that end with the sale of a debtor's home have become surprisingly common in the Bay area and throughout Pasco County, Florida, according to two lawyers who represent hundreds of homeowners and condo associations between them, Bob Tankel of Dunedin and Ron Cotterill of Tampa. Tankel estimates such cases have increased tenfold in the past four years, based on his firm's caseload.
In many situations, homeowners are losing their properties over a few hundred dollars in delinquent homeowners assessments....
I am not a lawyer nor does Florida State law allow me to dispense legal advice. That said, individual unit homeowners do have the ability to review the annual budget and see where the dollars are going. Owners also have the opportunity to speak to the Board of Directors and voice opposition to the raise in fees. Despite what others may say, unit owners also have a right to all Association financial data such as YTD budgets and balance sheets.
The ultimate option is to sell your stake in the complex, ie your unit.
Before you do that, I will venture that if you were to sit down with Board members and discuss finances, they wil tell you that operating expenses have exploded and many complexes built in the 70's and 80's are finding they must complete substantial repairs to maintain Association assets simply based on age. While it is disagreeable, in most cases I assume it's justified, as the Board members are obligated to pay the fees themselves.
"If I feel that the Monthly Maintenance Fee is too high (based on what it was when I moved in and the minimal Common Area assets we maintain) and if I only continue to pay the old MMF amount, what will happen?"
Speaking generally, we must assume that these annual increases are calculated correctly and applied per the condo bylaws and rules. If not, that's a whole 'nother story!
In my experience, a homeowner in a condo community is obligated to pay the full assessment as approved by the Board of Directors, even if they disagree. Should one only pay a partial amount (for example the old MMF amount), the difference will become a late payment and/or deficient amount. At that point, any future MMF payment would first be credited to the late amount and then applied to the current month. As you see, after 6 months, this could be a large deficit.
PLEASE understand: an association, at least in Florida, can and will foreclose on an owner for late fees owed and take possession of the property!
Consider the following story:
By MICHAEL SASSO The Tampa Tribune
Published: June 2, 2008
NEW PORT RICHEY, FL - Tired of the nagging letters from your neighborhood homeowners association, the threats of liens on your home?
Before you ignore the homeowners association, consider the fate of Gregory Green.
More than three years ago, Green's body seemed to be falling apart. Overweight, he suffered two blood clots in his lung, then he needed surgery for a back injury, then he was diagnosed with diabetes. On his doctor's advice, he left his job at an Alzheimer's care center in Tampa and began collecting disability benefits, which were about half his previous salary and put a strain on his family's finances, Green says.
By 2005, the family of five had fallen behind on dues to the homeowners association of The Glen at River Ridge, which represents about 150 homes in a west Pasco County subdivision.
The result: In September, the homeowners association foreclosed on the house for owing $580.
"These are neighbors," Green said of the board of directors of the homeowners association. "Neighbors are supposed to be compassionate."
The Greens' story isn't the norm for homeowners association disputes, but foreclosures that end with the sale of a debtor's home have become surprisingly common in the Bay area and throughout Pasco County, Florida, according to two lawyers who represent hundreds of homeowners and condo associations between them, Bob Tankel of Dunedin and Ron Cotterill of Tampa. Tankel estimates such cases have increased tenfold in the past four years, based on his firm's caseload.
In many situations, homeowners are losing their properties over a few hundred dollars in delinquent homeowners assessments....
I am not a lawyer nor does Florida State law allow me to dispense legal advice. That said, individual unit homeowners do have the ability to review the annual budget and see where the dollars are going. Owners also have the opportunity to speak to the Board of Directors and voice opposition to the raise in fees. Despite what others may say, unit owners also have a right to all Association financial data such as YTD budgets and balance sheets.
The ultimate option is to sell your stake in the complex, ie your unit.
Before you do that, I will venture that if you were to sit down with Board members and discuss finances, they wil tell you that operating expenses have exploded and many complexes built in the 70's and 80's are finding they must complete substantial repairs to maintain Association assets simply based on age. While it is disagreeable, in most cases I assume it's justified, as the Board members are obligated to pay the fees themselves.
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