MLS MONTHLY REPORT NOV ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 18,307 9,278 27585

Total Units Pending: 2,407 954 3,361

Total Units Sold: 2,030 632 2,662

Absorption rate: 11.09% 6.81% 9.65%

Avg Days on Market 88 days 111 days 93 days

Months of Inventory 9.0 mons 14.7 mons 10.4 mons

Sold vs List Price % 94% 92% 94%

Sold vs Original List Price % 75% 79% 76%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 6,681 5,519 12,200

Total Units Pending: 801 448 1249

Total Units Sold: 679 320 999

Absorption rate: 10.16% 5.80% 8.19%

Avg Days on Market 80 days 117 days 92 days

Months of Inventory 9.8 mons 17.2 mons 12.2 mons

Sold vs List Price % 93% 91% 93%

Sold vs Original List Price % 84% 75% 81%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 590 1411 2,001

Total Units Pending: 38 87 125

Total Units Sold: 34 72 106

Absorption rate: 4.07% 5.10% 5.30%

Avg Days on Market 111 days 123 days 119 days

Months of Inventory 17.4 mons 19.6 mons 18.9 mons

Sold vs List Price % 93% 92% 92%

Sold vs Original List Price % 79% 83% 81%

I am pleased to announce that I have just earned the National Association of Realtor "SFR" designation - the Short Sale and Foreclosure Resource designation. With such a large contingent of my business being short sales and bank-owned foreclosures, I felt my clients would be best-represented by a realtor who is certified in such areas.

I take pride in handling my short sales with dogged determination and efficiency. To date, I have closed 10+ short sales with excellent results for my sellers. The key to Short sale success is constant communication with all parties involved. It keeps the banks moving forward, the buyers engaged, and the sellers optimistic.

Here are a couple terms that may be new to you:

1. Convenient foreclosure: This occurs when the seller already has a second dwelling to move to and will allow their over-mortgaged property to be taken back by the lender, regardless of their monetary assets.
2. Strategic foreclosure: An occurence where a homeowner will acquire a 2nd home BEFORE their 1st home goes into foreclosure with the express intent of allowing the 1st home to be taken back by the bank.

The bottom line: this massively-depreciated real estate market has affected just about everyone I know and I have re-committed myself to assisting embattled owners as best I can.

If you have any questions about the short sale process, just let me know. I don't profess to know EVERY thing about the sale process, as each bank is different. However, there are general rules that most banks adhere to and I'm always willing to share my knowledge to help a client.

I recently had a client with an existing VA loan receive a notice in the mail concerning refinancing their loans with a company called Mortgage Investors Corporation. The company claimed they could save them thousands of dollars with an easy re-finance – all they needed to do was listen to a 15 minute in-home presentation. Following a hard pitch session at the owners home that lasted 4-5 hours, my clients were asked (and consented) to give the MIC rep a "good faith deposit" of $1000. HUGE RED FLAG!

IF YOU RECEIVE ONE OF THESE NOTICES, PLEASE READ THE FINE PRINT AND DO YOUR OWN RESEARCH!

Initial investigation finds that homeowners will have their loan converted to a HYBRID loan, which has a fixed rate for approximately 38 months and then slowly rises over the next 5-7 years, with a cap of 8% (this was told to my clients). This is in addition to fees and other costs put on the back end of the loan.

I am not saying what MIC is doing is illegal or fraudulent. Basically, they are taking a loan guaranteed by the government (VA loan) and modifying the terms for the homeowner. It’s a win-win for MIC…should the owner default, the government will cover the loan. Should the seller not default, they will have had upfront savings but back-end costs and possibly an interest rate much higher than their original rate. There are risks with this hybrid loan and homeowners contemplating this refinance would be well-advised to work the numbers thoroughly.

My local Better Business Bureau (http://www.bbb.org/west-florida/business-reviews/mortgage-bankers/mortgage-investors-corporation-in-saint-petersburg-fl-52003613) has recorded 114 consumer complaints against MIC.

Please remember, nothing is free. If it sounds too good to be true, it probably is. CAVEAT EMPTOR!

So I think I'm Mr. Smarty Pants when I convey all of my wonderful mortgage knowledge about exiating programs and loans available to clients, family, & friends. Oh yeah, I tell them confidently, the only 100% mortgage program available to buyers right now is Veterans Administration (VA) loans. Those loans are GUARANTEED by the VA and other lenders offer them to VA-qualified buyers.

But back up a minute...is it really the ONLY 100% mortgage loan available to buyers at the present time. I ate way too much on Turkey Day so I have no room to eat "crow", but I was wrong (and my wife tells me I can never accept being wrong ;-)...

I'll give you 5 seconds to guess ANOTHER 100% mortgage being offered to EVERY buyer right this minute...1...2...ok, you give up, right? Check this out - USDA loans.

Yes, you read that right - the same people that certify beef. Let's cut to meat (excuse the pun) of this article. In short, the Federal Gov't has set up two 100% loan programs for lower-income buyers of RURAL property - a "direct" and a "guaranteed" program. It's the coolest thing since sliced bread - all you have to do is find a home in their desginated "rural" area and you are on your way...

Here's the info straight from their site, http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=pageLoad&requestInfo=GuaranteedProgramInfo&NavKey=loan@21

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Approved lenders under the Single Family Housing Guaranteed Loan program include:

1. Any State housing agency;
2. Lenders approved by:
HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
3. the U.S. Veterans Administration as a qualified mortgagee;
4. Fannie Mae for participation in family mortgage loans;
5. Freddie Mac for participation in family mortgage loans;
6. Any FCS (Farm Credit System) institution with direct lending authority;
7. Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.

Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.

BUYERS AND SELLERS!

If you have a closing this week, Ida may have just put a damper on your plans.

Although it has been a quiet hurricane season for Floridians, there is a staanding rule that insurers will NOT bind homeowners insurance when a tropical system moves within a certain proximity to our area. Without insurance, mortgage companies will NOT underwrite their loan, which ultimately means buyers can't pay for the house at closing time.

Our standard Florida Association of Realtor contracts have a stipulation that covers rare instances like this and I urge buyers, sellers, and realtors to review the contract language. It's non-jeopardy for all parties, which is good.

The only problem I forsee is if a seller is consummating a short sale and the short sale deadling is the closing date this week. Hopefully the Loss Mitigation/Short Sale closer will be understanding, but that is not always the case.

Let's talk about a topic near and dear to my heart - short sales. Yes, this "dance with the devil" as I like to call them is full of twists and turns, highs and lows, yes's and no's...some may liken it to marriage ;-)

I digress. Short sales have become a common occurrence, with some areas seeing just a few and other places seeing 30%, 50%, and even 75% of homes in a short sale status. To recap for those not paying attention, short sales are when the home's fair market value is EXCEEDED by the mortgaged amount, leading to a deficiency or "short" on the mortgage. To head off these homes going back to banks as foreclosures, banks will accept less than what is owed while sometimes sticking the owner with the difference...and sometimes not.

That is what we will discuss today:

the relationship between a 1099C and a deficiency judgment!

A deficiency judgment (DJ) CAN be pursued on the amount of the mortgage "forgiven" by the lender. EXAMPLE: Joe has a $150k mortgage and short sells it, with bank approval, to Jan for $100k. That leaves a $50,000 DEFICIENT AMOUNT.

In foreclosure or a short sale, lenders are allowed to, but rarely do, pursue deficiency judgments against the former owners. The reasons lenders normally DON'T file for deficiency judgments are:

1) Practically impossible to collect as most owners foreclosed on don't have much money
2) Cost of litigation to achieve the deficiency judgment is costly
3) DJ's can be discharged in bankruptcy as unsecured debts.

Banks will routinely issue 1099c's instead. When issuing a 1099C (cancellation of debt), banks take the paper loss and pass it on to the former owner as "income" in the eyes of the IRS. Pls consult an accountant for what to do with a 1099c.

If you are issued a 1099C, one would think that the deficient amount is history and a DJ is out of the question, as the debt is being transferred as "income" to the homeowner. A reasonable assumption. However, according to Carolyn Secor, a Clearwater-based attorney who specializes in foreclosure defense and bankruptcy, the 2 are apples and oranges. A DJ is a civil litigation action and a 1099C is simply an IRS function. The 2, when held at arms length, are not truly related. HENCE, ONE CANNOT ASSUME THAT THE ISSUANCE OF A 1099C WILL PREVENT A DJ.

Short sale sellers will find the language in their approval letter. Banks will state they are releasing the lien so the sale will go through but ALSO accepting the proceeds as payment in full. Some banks go as far as telling you how it will be recorded with the credit bureaus. Unless you see the above language, or "satisfaction of mortgage", or something similar, do NOT assume you are being released from the note (mortgage).

Unfortunately, sellers are taking a chance when they are told they will receive a 1099C at the end of the year AND they don't see any written language releasing them from the obligations of the note. And sometimes that's all the sellers get. Only that seller can determine whether its worth completing the short sale and dealing with future ramifications.

Are you FHA-Approved????

That's an important question all condo, townhome, and villa owners should be asking.

Why? Great question.

The government has a program run through the Federal Housing Administration that will allow qualified borrowers access to mortgages of UP TO 96.5% of the home's value (notice I did not say contract price, as an FHA appraisal will supercede a contract price). The borrower has to come up with the other 3.5% down payment, as well as closing costs. Closing costs can be paid by the seller on behalf of the buyers.

This is a terrific program that gets buyers with meager savings and blemished (but not sub-prime) credit into homes. Think first-time homebuyers, newlyweds, single parents, lower-income, etc. Truly a great program that encourages home ownership among a class that doesn't qualify for conventional loans.

Ok, so that's FHA in a nutshell. How does that help you, the condo/TH/villa owner? Well, since the 100% loans have gone the way of the dodo bird (non-existent) it is one of the most popular loan programs in the market today, aside from VA loans. This means more and more buyers are qualifying under this program. THE FLY IN THE OINTMENT IS THAT THE COMPLEX HAS TO BE APPROVED BY THE FHA FOR FHA LOANS.

It's an involved process with forms, documentation, and some elbow grease. Some complexs, due to their restrictions, will never qualify. However, it's well worth it for enterprising residents to ensure they have explored getting approved for FHA loans.

How can you tell if you're already approved? Luckily, FHA has a continuously updated website to check. It's: https://entp.hud.gov/idapp/html/condlook.cfm

Most likely your complex will not be approved, but it's normally for lack of trying. Once approved, it's something you want to SCREAM from the rooftops and let all buyers know. Ask you Association if they have ever tried to get approval. If they have not, volunteer to be a liaison and get them approved. Visit HUD.gov for more info.

FHA is a gift to buyers AND SELLERS so do your best to take advantage of it today.

The Perils of Being Your Own Realtor!

We are the generation of DIY'ers...national brands have been built on empowering consumers and telling them they can do it themselves. Millions of dollars are spent assuring people they have the know-how and background to tackle any project, from fixing an electric socket (ZAPPPP!) to changing out an engine - yes, one of my college buddies actually attempted that (unsuccessfully by the way).

So when it comes to selling your own home, you can do that, too. Right? Well, the answer is not so clear cut. Most people know the majority of homes are sold via realtors and brokerages. However, a small share of homes are sold By Owner and those owners don't have any real estate sales background. The advent of the internet age has made this a distinct possibility, an easier mountain to climb so to speak. But there are pitfalls in this approach that will take you longer to sell and possibly decrease your net profit. Here are a couple of danger areas to avoid:

The Overly Proud Owner: I had this experience 2 weeks ago. Sellers bragged to my buyers that they were "Professional Homeowners". By the time we were done, my buyers were so detailed-to-death and tired of saying "oh, wow, that is a terrific shade of blue" that we high-tailed it out. But Mr. Professional Homeowner was on our heels and followed us to our cars, still bragging about his home. I finally had to start my car and drive away to get him to stop.

Is a proud owner extolling the virtues and upgrades of their home a bad thing? Not necessarily. But the fact that he was over-priced by about 10% scared the buyers away - the odds are so slim that someone so impressed with their own home would consider a below-list price offer.

The Uninformed Homeseller: I come across this alot with people representing themselves. Lawyers commonly say the quickest way to lose a legal case is to represent yourself. Harsh, but probably true. Well, one quick way to a lawsuit (if things go south) is by representing yourself in a home sale if you're not up-to-date on the latest and greatest "gotchas".

Example 1: You own a home built in 1977. Using a pre-printed contract from the internet, you lock up a buyer and close in 30 days. After closing, a lawyer for the buyer calls asking for the full contract and addenda. Unfortunately, you had n ot realized that FEDERAL LAW requires a pre-1978 home to have a Lead-based Paint Disclosure signed by all parties.

Example 2: You are selling your mothers home and want to move it quick. In 2002, it had a settlement issue that was repaired and the home was remodeled in and out. Since know other problems have cropped up, you put a sign in the yard and 5 months later you slide the keys to the new buyers. A month later, you get a call from a lawyer representing the buyer. They are looking for the Sellers Disclosures which state the home had a repaired settlement issue. The new buyers were putting in a pool and the workers discovered the pier-and-grout system that stabilizes the home. You thought you mentioned it to them in passing and that they were ok with it, but with no WRITTEN disclosures, you're in hot water.

The Oops, I Can't Advertise That? Homeseller: This is a big one. You are selling your home and putting an ad in the paper. Knowing your home is perfect for single people, you mention in the ad that the home has a terrific location for single owners or owners without children while also being perfect for Christians, as there are 3 churches in walking distance. Ooops. You just violated the Civil Rights Act of 1968, aka the Fair Housing Act, which protects people with children from being discriminated against while also disallowing religious discrimination.

Ok, so I dramatize a bit for illustrative purposes. But the point is that real estate transactions can be unintentional minefields, for lack of a better term. As GI Joe once put it, "knowing is half the battle".

One result of our over-supply of homes for sale is that many homesellers have turned into landlords, for good or for bad. Tightened mortgage regulations and economic hardships have increased the pool of available renters so there's a good chance a seller looking to rent their property will successfully rent it out.

Many sellers continue to market and sell their property with the permission of the tenant. Normally, tenants receive discounted rent or a lower deposit in exchange for keeping the property in showing condition and being flexible with showing appointments.

What happens when the property actually goes under contract while tenants are on property??? In Florida, the existing lease must be honored in accordance with the terms specified within the lease. So if the tenancy continues 6 months after the closing date, the new owners shall assume landlording duties and responsibilities as outlined in Ch 83 of the Florida Statutes. Many leases, especially for homes for sale, specify rights and responsibilities as it pertains to the sale and disposition of the property while being rented. Normally it requires 30 - 60 days notice to the tenant which allows them to line up other housing.

Many tenants living in a home that's also for sale, when given sufficient notice of such sale, are very cooperative. Don't forget that after the initial showing, a home that's under contract will need to have additional inspections, appraisals, and possible followup showings in accordance with the sales contract. That will require an understanding tenant and the best way to achieve that is for a Landlord to be understanding and protective of the tenant's privacy.

But what happens if there is no lease in place (a month to month for example) when a home goes under contract? Well, the law references the previous lease with respect to cancellation of an unwritten lease:

83.57 Termination of tenancy without specific term.--A tenancy without a specific duration, as defined in s. 83.46(2) or (3), may be terminated by either party giving written notice in the manner provided in s. 83.56(4), as follows:

(1) When the tenancy is from year to year, by giving not less than 60 days' notice prior to the end of any annual period;

(2) When the tenancy is from quarter to quarter, by giving not less than 30 days' notice prior to the end of any quarterly period;

(3) When the tenancy is from month to month, by giving not less than 15 days' notice prior to the end of any monthly period; and

(4) When the tenancy is from week to week, by giving not less than 7 days' notice prior to the end of any weekly period.

Basically Florida law only requires a MINIMUM of 15 days notice for a tenant on a month to month unwritten lease. That's really not much time, so I would recommend a minimum of 30 days.

Florida law also gives the landlord (or their agent) the ability to access the property to further the sale of that property. All access is conditioned upon "Reasonable Notice" to the tenant.

83.53 Landlord's access to dwelling unit.--

(1) The tenant shall not unreasonably withhold consent to the landlord to enter the dwelling unit from time to time in order to inspect the premises; make necessary or agreed repairs, decorations, alterations, or improvements; supply agreed services; or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers, or contractors.

(2) The landlord may enter the dwelling unit at any time for the protection or preservation of the premises. The landlord may enter the dwelling unit upon reasonable notice to the tenant and at a reasonable time for the purpose of repair of the premises. "Reasonable notice" for the purpose of repair is notice given at least 12 hours prior to the entry, and reasonable time for the purpose of repair shall be between the hours of 7:30 a.m. and 8:00 p.m. The landlord may enter the dwelling unit when necessary for the further purposes set forth in subsection (1) under any of the following circumstances:

(a) With the consent of the tenant;
(b) In case of emergency;
(c) When the tenant unreasonably withholds consent; or
(d) If the tenant is absent from the premises for a period of time equal to one-half the time for periodic rental payments. If the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises.
(3) The landlord shall not abuse the right of access nor use it to harass the tenant.

Selling a property with a tenant can be an involved, sensitive situation that requires the utmost in care and compassion. When in doubt, one almost always gets more "flies" with honey rather than vinegar!

Recently, I have had 2 mind-numbing experiences with permits. Yep, the bane of a homeowner's existence. Permits issued by a municipality are actually a good thing as they provide:

1. Uniformity of building codes
2. conformity to building codes
3. an acceptable level of safety in construction
4. a way to track improvements to a property

I have come to learn that in Florida, title searches conducted by title companies do not examine public records for any open permits that have not received final inspections. Basically, they are not a lien and property can be transferred with open permits. That moves the onus to both Buyers and Sellers to ensure their property has no open permits.

So how do you find any open permits? The easiest Sway is to contact the city or county building department and asked for a property card printout. It should show any additions or improvements that have had a permit pulled. It will NOT show any record of unpermitted additions or improvements.

Let's say there is an open permit, for example, on a window replacement. What should a buyer do? First, determine with the municipality if the permit is in fact still open, i.e. no final inspection. The easiest method to resolve that is to contact the contractor who installed it and have them call for the final inspection. If the homeowner did it, then the homeowner calls in the final inspection. That should do it.

If the contractor is out of business, then the homeowner MUST close the permit by requesting the final inspection on the contractor's behalf.

Addition permits can be trickier to finalize but they can be done. If a permit was never pulled on an addition, that may be quite costly and intensive for the seller. If the buyer goes through with the purchase and assumes responsibility for the home, the municipality may REQUIRE the new owner to rectify the permit issue, which may include larger fees, penalties, and invasive inspections.

So do yourself a favor and check for permits!

Rich is on vacation this week and his posts will return next week!

August stats are in and they aren't half bad. We have not fropped through 28,000 units yet, which I would have liked to see. I still believe our "healthy" Tampa Bay area levels are around 15,000 - 18,000 homes for sale. So we are slightly less than double our normal inventory, which is still applying downward pressure to prices.

I am amazed that some of average sale prices are up to 25% LOWER than their original listing price and around 85% - 90% of the current list price.

However, there are buyers out there. Recently wrote an offer for a client for a small bank-owned forclosure that was on the market for just 3 days. Wouldn't you know the realtor had 10+ offers in under 72 hours of listing the property! Normal retail homes in average condition will find their values similiar to what they were in 2002 & 2003...you can't change it and the new privacy fence or low flow toilets will not add extra value to the home.

MLS MONTHLY REPORT August ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 19,009 8,999 28008

Total Units Pending: 3,252 988 4,240

Total Units Sold: 2,031 578 2,609

Absorption rate: 10.68% 6.42% 9.32%

Avg Days on Market 96 days 103 days 98 days

Months of Inventory 9.4 mons 15.6 mons 10.7 mons

Sold vs List Price % 93% 91% 93%

Sold vs Original List Price % 83% 80% 82%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 6,927 5,442 12,369

Total Units Pending: 1073 459 1532

Total Units Sold: 653 297 950

Absorption rate: 9.42% 5.46% 7.68%

Avg Days on Market 86 days 110 days 94 days

Months of Inventory 10.6 mons 18.3 mons 13.0 mons

Sold vs List Price % 91% 90% 91%

Sold vs Original List Price % 78% 79% 78%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 588 1511 2,099

Total Units Pending: 55 103 158

Total Units Sold: 36 80 116

Absorption rate: 6.12% 5.29% 5.53%

Avg Days on Market 130 days 124 days 126 days

Months of Inventory 16.3 mons 18.9 mons 18.1 mons

Sold vs List Price % 83% 88% 85%

Sold vs Original List Price % 72% 78% 75%

Foreclosures seems to rule the real estate headlines these days, and rightly so. The banks who offered mortgages to anyone with a pulse (and even some WITHOUT!) fostered an anything-goes atmosphere of real estate speculation, which culminated in the miserable situation we now find ourselves in - empty, desolate homes dot our landscape, falling more into disrepair every day. If you're unlucky enough to have one of these abandoned foreclosures in close proximity to your home, you need to understand that the immediate future can change the valuation of your home for years to come. I offer this example:

Your neighbors move out overnight, leaving a seemingly nice home empty. Day after day, you drive by the home, watching the lawn wither, the weeds grow, and imagining the dank, humid air inside the non-ventilated home. But you continue driving, hoping the bank sells it soon. The reality is that it takes the bank 12 - 18 months to take ownership of the property. When they do, the home looks so bad that it fetches only 75% of what a normally maintained home in your neighborhood would get. To make matters worse, the new owner (investor) wants to rent it immediately for positive cash flow and the new tenants are less than desirable. The home's condition continues to spiral and before you know it, the neighbors start moving out. You can see where this leads....but there's hope IF you decide it's worth your time!

After the home has been abandoned, don't wait. Time is NOT on your side. Get together with your neighbors (like you've been saying you always wanted to do) and devise a schedule to keep the lawn mowed, the weeds pulled, the shrubs trimmed, and even the pool somewhat clean (which will be hard if there is no electric). Plan on sharing maintenance on the property for at least a year or more! However, with 4 - 8 immediate neighbors, it's easy to share the duties. Here are some of the benefits of maintaining a foreclosure property:

1. You will bond with your neighbors. Even if you meet every 2nd saturday to give the property a crewcut, you will get to know your neighbors in a way you probably never imagined. You'll find them just as concerned and just as ready to pitch in as you.
2. The foreclosure home will always be presentable. This is important for your home's value, the prospective buyers of the foreclosure, and even an EXCELLENT way to deter crime and vandalism, which is common with foreclosed homes.
3. You won't have to worry about rodents and other critters. A lawn that has not been mowed in months is a havens for rats, snakes (sometimes poisonous), and other animals, some which may prey on your pets. Keeping the foreclosure house's yard "beat Back" ensures this will not be a problem for you or your neighbors.
4. Keep chemicals in the pool. This may cost you some money (maybe $20 monthly) but the effects will be great. A pool left unchecked will turn black in a week and become a breeding ground for mosquitoes and other pests. These bugs will invariably drift around neighboring properties, increasing chances of transmitting diseases such as malaria (unlikely), West Nile virus, encephalitus, and other not-so-nice ailments.
5. You will keep your home's value up! Previous studies have indicated that for every foreclosure within 1/4 mile from your home, your property value will decline 1%. Now this was before the foreclosure flood, but it's not entirely unrealistic. While your property value may decrease because of the FORECLOSURE itself, I believe a well-maintained foreclosure home will almost always sell for more money than a foreclosure home in complete disrepair, which will affect you LESS!
6. Call your county code enformcement. They may not be able to do anything right away AND they are somewhat overwhelmed right now, but the county is an excellent means to ensure the property is somewhat maintained. The county can dispatch lawn maint crews to spruce up the home and then tack it onto a lien which must be paid BEFORE the home is sold. However, I would not depend on the county.

Ok, now there are some issues to consider before forming your neighborhood QRF (quick reation to foreclosure) force. First, ensure the property is actually abandoned. Piles of mail, old newspaper, and a vacant home are good indicators. Also, there is some liability with going on a property you don't own to perform maintenance, so you should seek county or legal guidance. If you get hurt, you will most likely have little recourse so don't undertake this without proper risk assessment. Also, do NOT break into the home...do what you can to secure it (boards over windows, lock doors, etc).

Extraordinary times call for extraordinary measures and the only one who can change the bleak foreclosure landscape in your neighborhood is YOU!.

Having quite a few listings stretching from 1 BR condos to 5 BR SFHs, I have gathered a few simple ideas to help sellers better PRESENT their homes and POSITION them to seller quicker and for more money!!! These things can be done ideally before your listing appointment with your realtor, but if it's after the fact, that's ok, too. Your realtor will probably want to reschedule photos and video for when the home is presented perfectly.

1. Trim bushes and low-hanging trees! Overgrown shrubbery and trees are a TRIPLE-whammy: 1) Buyers can't see alot of the house enough to fall in love with it 2) It will make your home look smaller than it is 3) Buyers will wonder what other home maintenance has been let go.
2. Keep your lawn manicured! I know this is hard in our water-conscious world, but having a lawn doesn't require as much water as one would think (except in a drought and buyers understand). Water in the early morning, pre-dawn hours and do this just 1 - 2 times per week to supplement regular rainfall. Keep the lawn mowed AND EDGED so it presents as nice as possible.
3. Keep that pool BLUE! Ok, it takes a little money to keep your pool in swimming condition, but for the $25 - $50 per month, you could realize $1000's in extra profit. A green/brown/black pool is SUCH a turnoff...the home could be beautiful, but the pool might turn off buyers completely.
4. Windows need to be cleaned and have screens! Dust/wash the inside and WASH the dirt off the outside. A clean window lets in more light which makes the house show better and who really wants to see the doggy drool on the glass????
5. Change your A/C filters regularly. Changing your A/C filters will accomplish a few things: 1) Will allow cleaner air to circulate the home 2) will remove some odors which is rule 1 of selling homes 3) will allow more cool air to circulate, which will keep your home cooler (rather than struggling to maintain a temperature).
6. Spring for the color! Don't hesitate to spend $100 and buy some beautiful flowering perennials. They will add some "pop" to your home's exterior and the Buyers will fall in love with it!
7. Clean your gutters! My personal favorite is the weeds that grow in seller's gutters. Seeing that, you know they haven't touched them in MONTHS, if not years! You may not think it a big deal, but it falls in line with the trimming - full, overflowing gutters can lead to major water intrusion issues. Let the Buyers know you worked hard to keep your home in tip top shape by keeping those gutters clean.
8. Pressure wash. Discolored, moldy walking surfaces leading to someone's house will set expectations in a Buyer's mind that MAY not be reversible. Hire a local person (or rent a machine from an equipment rental place) and you'll be glad you did.

Wow, what a busy week! I had an epiphany this morning when I was contacted by a client concerning a permit issue on their home. I simply went to PinellasCounty.org, found the building dept, called them, and had a list of permits emailed to me w/i 10 mins. Issue resolved. However, I realized that an non-local buyer or seller may have no idea where to start looking for answers to common questions. Here's a few numbers you shoud keep handy:

Pinellas County (www.PinellasCounty.org):

• Building Dept & Zoning 727-464-3888
• Permitting 727-464-3621
• Court Clerk 727-464-6171 (great for finding recorded Rules & Restrictions)
• Property Appraiser 727-464-3207 or www.pcpao.org
• Tax Collector 727-464-7777 or www.taxcollect.com (registering your vehicle)
• Pinellas Co Water 727-464-4000

Electric Co:

• Progress Energy 727-443-2641
• FP & L 800-226-3545
• Tampa Electric 813-223-0800

Cable Co:

• Brighthouse 727-329-5020
• Verizon FIOS 800-VERIZON
• Knology www.knology.com

Well, the summer rush has come to an end. Much like the peak we saw in 2006, we may have just experienced another peak (I believe future trends will bear this out) in our 2009 home buying trend. Our market has been having meaningful month over month gains, especially in our monthly ABSORPTION RATE, but that has come to an end with July's numbers. Absorption rates for each category - Tampa Bay area, Pinellas County, and the Beaches - all decreased in July compared to June's rates. I believe this to be a seasonal decrease and not indicative of a steeper market decline.

What did continue to go down was our inventory - YEAH! When our inventory gets back to pre-runup levels - less than 20,000 units and closer to 15,000 units - we will see home prices stabilize. Unfortunately, we are still at 28,000+ units. at our current rate of sale, there will be no price stabilization until AT LEAST Summer 2010...more likely END of 2010. It's not the best news, but it is the light at the end of the tunnel.

The Beaches continue to be extremely soft, compared with Tampa Bay and Pinellas County as a whole.

MLS MONTHLY REPORT July ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 19,354 9,261 28615

Total Units Pending: 3,243 973 4,216

Total Units Sold: 2,274 662 2936

Absorption rate: 11.75% 7.15% 10.3%

Avg Days on Market 101 days 106 days 102 days

Months of Inventory 8.5 mons 14.0 mons 9.7 mons

Sold vs List Price % 94% 91% 93%

Sold vs Original List Price % 82% 80% 81%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 7,039 5,599 12,638

Total Units Pending: 1029 457 1486

Total Units Sold: 733 354 1087

Absorption rate: 10.4% 6.32% 8.6%

Avg Days on Market 85 days 110 days 93 days

Months of Inventory 9.6 mons 15.8 mons 11.6 mons

Sold vs List Price % 93% 89% 92%

Sold vs Original List Price % 85% 79% 83%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 599 1535 2,134

Total Units Pending: 52 99 151

Total Units Sold: 32 86 118

Absorption rate: 5.34% 5.6% 5.53%

Avg Days on Market 115 days 151 days 141 days

Months of Inventory 18.7 mons 17.8 mons 18.1 mons

Sold vs List Price % 88% 90% 89%

Sold vs Original List Price % 81% 77% 78%

The Pinellas County Property Appraiser's office has just updated their database with preliminary values for 2009. Not surprisingly, values have gone way down across the board.

Many tax-paying homeowners w/ the Homestead Exemption believe their taxes should go down because their assessed values went down. The little hook in the Homestead law allows the TAX-assessed value to increase a maximum of 3% IF it's less than the Assessed value. So your taxes may actually rise!

The Property appraisers website can be accessed at www.pcpao.org. Click on "Search Our Database" and enter in your property information.

What to Know when Buying Waterfront

So you're ready to move to the water. Waterfront homes in the Tampa Area range from less than $100k to the millions. The most common denominator of all these homes is that they utilize a seawall to protect their land from water incursion and erosion. Whether you're a seasoned home buyer or a novice waterfront speculator, you should be well-versed in the aspects of waterfront land vs. land-locked parcels.

1. Taking a macro approach, the neighborhood where you buy can make or break your home purchase. Some communities lie high above mean sea level such as Largo's The Bluffs. Some areas of St. Petersburg are much lower and may have intermittent flooding with heavy rain or above-average tides. A good way to find out if flooding is a problem in your prospective neighborhood is to google the neighborhood name or go to the local hometown paper's website and search their archives.
2. Are insurance companies writing insurance where you want to live. On North Carolina's hurricane battered Outer Banks, there are some home that are perched periously close to the Atlantic and are thus uninsurable. I can't think of any areas in Tampa Bay that have experienced this phenomenon, but it's a question you owe yourself. Being so close to the open water, will you need a wind policy? Obviously you will need flood insurance - have you gotten a quote from an insurance broker? The FEMA flood maps were re-drawn recently.
3. Watertightness/Salt erosion is a constant concern for aterfront homeowners. I have heard home inspectors say that the effective life of equipment outdoors near the water is essentially cut in half due to the salt air corroding metal! Windows and doors should be airtight with no gaps for leakage. Potential homeowners should know they will face increased maintenance costs with the following: A/C systems, water heaters in garages, pool heaters, well pumps, patio furniture, grills, etc.
4. On a micro perspective, the elevation of your home on the water is obviously very important. You may say "Duh" but what is the normal tide height for the lot where you're buying. Driving around this beautiful area, I have seen the water LAPPING over the top of a perfectly good drywall when the sun was shining and the wind was low. Imagine how it will be if a squall drives water inland with heavy winds at high tide? Chance favors a prepared mind!
5. Let's talk about the important asset between your home and the water - the seawall. How much is a sea wall. Actually, the answer depends on your locality. Seawalls can be built for less money in Pasco and Hernando than Pinellas. The rule of thumb price to replace a seawall is $300 PER LINEAR FOOT, but this can change based on the type of seawall installed. Seawalls are constructed from differing materials including, Precast concrete T & G sheetpile panels, Interlocking, corrugated Vinyl, or Aluminum sheetpile, and heavy pressure treated timber structures, to name a few. A seawall should be inspected by a certified inspector or contractor and cracks don't necessarily mean you need a new one. I can wax on and on about seawall caps, tiebacks, holes, erosion, etc but I'll save that for another blog.
6. What about the dock??? No dock, no problem, right? Not necessarily. You might have to start the permitting process from scratch, which includes, city, county, and state applications. If you are able to secure the documentation to go ahead, prepare to spend between $15k and $35k for a new dock. Less for a bare bones model and more for a dock with water, electric, davits, extra width, add'l platform to clean from, etc. Don't just think about your needs - a 3000 sf home will look odd with a small dock that fits only a 15' center console.
7. Ok, so how's the water? You don't know? Better find out. Talk to the neighbors about any recent dredging or plans to do so. Currents can deposit silt in certain places and you don't want that to be in back of your home. If you're at the back of a canal, there is a possibility of experiencing more debris collecting in your area. How shallow does the water get during low tide. If it's too low, you'll need to plan your departure and arrival accordingly.

There is so much to consider when buying waterfront so educate yourself. You've worked hard to make it a reality and you deserve the best waterfront home out there! Happy sunsets!

June stats are in and the numbers are much better than we have seen in a while. Some bright spots are:

• Inventory fell below 30,000 properties for sale for the first time in YEARS
• The sales rate for homes and condos in the tri-county TampaBay area was over 10% for the first time in years!
• Months of Inventory (existing) dropped below 10 months for homes & condos in the Tampa area!

Some negatives to counter the good news:

• Average Days on market is still over 3 months
• Most properties are selling between 20%-25% BELOW initial list price.
• The beach market is extremely soft - just 5 out of every 100 homes and condos on the market sold in June. Average days on market is 144 days.

The hard numbers are below:

MLS MONTHLY REPORT June ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 19,914 9,568 29482

Total Units Pending: 3,270 963 4,233

Total Units Sold: 2,367 698 3,065

Absorption rate: 11.9% 7.30% 10.4%

Avg Days on Market 105 days 110 days 106 days

Months of Inventory 8.4 mons 13.7 mons 9.6 mons

Sold vs List Price % 93% 90% 93%

Sold vs Original List Price % 74% 79% 75%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 7,266 5,766 13,032

Total Units Pending: 1047 458 1505

Total Units Sold: 802 380 1182

Absorption rate: 11.0% 6.59% 9.07%

Avg Days on Market 97 days 106 days 100 days

Months of Inventory 9.1 mons 15.2 mons 11.0 mons

Sold vs List Price % 92% 88% 91%

Sold vs Original List Price % 79% 81% 80%


N. BEACHES (476-478, 370-375)Homes Condos Total Units

Total Units Available: 645 1600 2,245

Total Units Pending: 51 116 167

Total Units Sold: 34 78 112

Absorption rate: 5.27% 4.88% 4.99%

Avg Days on Market 153 days 141 days 144 days

Months of Inventory 19.0 mons 20.5 mons 20.0 mons

Sold vs List Price % 88% 89% 88%

Sold vs Original List Price % 72% 79% 76%

This is a MILESTONE!





According to Coldwell Banker's proprietary database program, TrendGraphix, the total inventory in the tri-county Tampa Bay area has fallen below 30,000 units for sale! This is the first time since the 2nd Qtr of 2006!






So is this the much-vaunted stabilization economists speak of??? Perhaps. All it tells us is that supply is contracting. Demand is the other half of that equation and despite low home prices, it's stagnant overall.

So have you heard about Chinese Drywall, right? No??? It's the latest litigation item in real estate, but it's also serious. Serious enough to cause health issues. How do you know if ou are a candidate for having Chinese Drywall in your home?

1. Does your home smell like sulphur?
2. Was your home built between 2004 - 2007?
3. Are you experiencing costly and recurring A/C repairs?
4. Are copper water and a/c lines corroding, as well as loose change?
5. Is your electrical wiring corroding?
6. Have you seen "CHINA" stamped on the inside of any of the drywall?

If you have 2 or 3 or more of these, you most likely have defective drywall. Contact the Florida Trade Commission for more details.

If there is anything I never discuss in real estate, it's religion and politics. Taboo, to say the least. I try to see both sides of the conflict and make my mind up from there. I will dip my toe into the politics side and share with you my opinion of the "stimulus" that has be lauded as a cure-all for our ailing economy.

Essentially, it was a 2-aspirin remedy for a severely broken leg.

The main thrust of the stimulus, through the TARP fund (Troubled Asset Relief Program), was to assist banks with clearing the "toxic assets" from their books...a worthy cause. Unlike the Resolution Trust Corp solution to the S & L debacle in the 80's/early 90's, this program "injected" funds directly into the banks to help balance their books and stay liquid.

A secondary result of the TARP funds was to have enabled lenders to continue making loans on good assets...thoroughly vetted home purchases, car loans, etc. I think it's safe to say that it is not happening as intended.

If you are a buyer who is wading throught the thick forect of "loan application" prepare to surrender a blood sample, family medical history, and quite possibly your first-born. All kidding aside, it has become quite a chore to qualify buyers in this marketplace, despite stable job histories, stable cash flow, good credit scores, etc. But that's only half the battle...

...Buyer and Sellers in a transaction can lose bigtime when these lenders take it upon THEMSELVES to determine the market value of the home being purchased. This is happening despite the fact the state-licensed appraisers are completing VERY THOROUGH appriasals on these homes and supplying additional comps, market synopsis, and what not. A little known fact is that some institutional lenders have "Appraisal Review Departments" that vet these certified residential appraisals and advise on what they believe is the true market value.

So not only are these lenders holding Buyers hostage for loans which are supposed to be more forthcoming, they are de facto "re-valuing" our homes and communities to best serve their interests and protect their books. I would better accept it if the lenders came right out and said we don't want to loan tto you because of X...instead they play games with the appraisal and take our transactions to the very day before closing and mark a big REJECTED stamp on them...

Be prepared and vigilant if you are in a transaction depending on a mortgage...

With the increasing costs of basic necessities such as food and health care, as well as car insurance, fuel, clothing, etc. it is not uncommon for Home Buyers to need financial assistance with the closing costs when purchasing a home. Let's face it - not everyone who can afford a home's monthly payment has $7000 - $8000 for closing costs IN ADDITION to the home's down payment.

To go back a step, closing costs are IN ADDITION to the purchase price and include the following, among other items:

1. Mortgage fees
2. Insurance pre-pays
3. Property tax pre-pays
4. Closing fees
5. Lenders Title Insur
6. County & State recording fees
7. Title endorsements

More often than not, closing costs for a home around $250,000 will be appr. $7500. Savvy Buyers (and their realtors) know that in this market, Sellers are willing to bend over backwards to ensure their home gets sold. Somethimes that includes making Seller concessions to pay all or part of the Buyers closing costs.

If the Buyer is getting an FHA loan, the MAX seller's can "contribute" towards the buyer's closing costs and prepaid items is 6%. Purchase prices can be bumped up to allow make the seller feel less "pain" but all too often appraisals come in lower than expected, which brings everyone back to the negotiating table.

If you are getting a conventional loan, many lenders cap the closing cost assistance to 3%, a significant difference. Most of the time, however, buyers getting conventional loans have ample money for downpayment and their closing costs.

For the Seller, I have heard of some instances where Seller Concessions are tax-deductible. You'll want to check with your tax advisor to see if that applies to you. Helping pay a Buyer's closing costs, whether in full or partially, is a win-win for all parties and is becoming a much more common occurence.

If your a seller, don't automatically shun these offers...they may be EXACTLY what you need.

The May numbers are in and the most noticeable trend is our sinking inventory, which is 1 half of the supply demand equation. Inventory is hovering at the 31,000 unit mark, which is the lowest level in at least 2 years. Is the market stabilizing...yes. But like a train coming to a stop, it will take time.

Another notable number is the ABSORPTION RATE for Tampa Bay area homes...almost 10%. we haven't seen double digit absorption rates in about 18 months. In laymans terms, roughly 1 out of every 10 homes listed for sale actually sold in the month of May.

Beach properties are stabilizing, but the Days on Market is HORRENDOUS. Beach condo sellers can expect their average sale time to be 154 day...5 months! By pricing competitively and being open to buyer incentives, you can shave this time way down.

MLS MONTHLY REPORT May ‘09


TAMPA BAY AREA (tri-county) Homes Condos Total Units

Total Units Available: 20,722 10,078 30800

Total Units Pending: 3,240 1053 4,293

Total Units Sold: 2,019 576 2,595

Absorption rate: 9.75% 5.72% 8.43%

Avg Days on Market 105 days 117 days 107 days

Months of Inventory 10.3 mons 17.8 mons 11.9 mons

Sold vs List Price % 93% 90% 93%

Sold vs Original List Price % 82% 80% 82%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 7,472 5,978 13,450

Total Units Pending: 995 543 1538

Total Units Sold: 641 322 963

Absorption rate: 8.58% 5.39% 7.16%

Avg Days on Market 103 days 126 days 111 days

Months of Inventory 11.7 mons 18.6 mons 14.0 mons

Sold vs List Price % 92% 89% 91%

Sold vs Original List Price % 80% 80% 80%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 645 1702 2,347

Total Units Pending: 59 137 196

Total Units Sold: 37 90 127

Absorption rate: 5.74% 5.29% 5.41%

Avg Days on Market 134 days 154 days 148 days

Months of Inventory 17.4 mons 18.9 mons 18.5 mons

Sold vs List Price % 93% 89% 90%

Sold vs Original List Price % 79% 79% 79%

SELLERS: FREQUENTLY ASKED TITLE COMPANY QUESTIONS

What Do I Do Before Closing?

1. Locate your prior title policy and survey, if possible.
2. Gather current loan information for each mortgage or line of credit so title company can order payoff:

a. Lender name & phone number
b. Loan number

3. Cancel homeowner’s insurance only after the closing.
4. Order final reading for all utilities effective the day of closing.
5. Bring your driver’s license or government issued photo ID (Military ID, Passport) and your social security number to closing.
6. If married, and the property you are selling is your residence, your spouse must also sign documents.
7. If you are bringing funds to closing in excess of $500, bring a cashier’s check made payable to Sunbelt Title Agency. (If you need wiring instructions, or want us to wire your proceeds to you after closing, please contact our office.)
8. Bring keys, garage door openers, and any special instructions for new owner to closing.

When and how do I get the escrow money back from my lender?

The lender is required to reimburse the money that is held in escrow within thirty days after it receives the payoff from the title insurance company. Escrow is almost never deducted from the payoff at the time of closing. If there are special circumstances that require this to be done or if you must receive your escrow sooner than normal, you should contact your lender well in advance of the closing to inquire about this possibility.

Why is my payoff so much higher than the balance shown on my last statement?

The primary reason is that the payoff statement includes interest due from the last payment you made up to the date of payoff. Mortgages are paid in arrears, i.e. January’s payment paid for the interest accrued in December. In some cases, if the payment for the month of closing isn’t made before closing, this could mean up to two months of interest will be included in the payoff. If the Per Diem Interest is $25, that could mean an additional $1,500 above the principal balance that is due. In addition, some lenders charge fees to obtain payoff statements.

Why am I paying for the buyer’s title policy and documentary stamps?

The Title Policy guarantees that clear title can be given on the property. It varies in different counties as to who pays for this, but in this region it is typically paid by the seller. Most contracts executed in the State of Florida require the seller to pay for the documentary stamps on the deed while the buyer pays intangible tax and doc stamps on the new mortgage.

How are title insurance costs calculated?

Title insurance rates are regulated by the State of Florida and therefore cannot vary greatly from company to company. Title insurance companies must also charge for what are known as related services. These services include the Title Search fee and the Closing fee.

The cost varies because it is based on the purchase price. It is a one-time fee and is paid at closing. Although you pay only once, the protection lasts as long as you or your heirs retain an interest in the property.

What is a prior policy and what is its importance now that I am selling or refinancing my property?

The purpose of a prior owner’s policy is to allow the seller to have re-issue credit. This grants the holder of the policy a greatly discounted title insurance rate if the following requirements are met:

· In the case of a sale, the Owner’s Policy must not be more than 3 years
old. Note: For refinancing the property and for vacant land, there is no
restriction regarding the age of the prior policy.
· The credit amount is based on the amount of the prior policy, not the
current sales price. The credit cannot be higher than the sales
price. If the prior sales price is higher than the current sales
price, the credit is based on the current, or lesser, amount.
· The insured names on the prior policy must be the same as those involved in the current transaction.
· The prior policy must be delivered to the title company before the closing.
· The prior policy does not need to be issued by the same title company that is issuing the new title policy.
· Florida law states that only a prior Owner’s Policy may be used in order to receive re-issue credit. A commitment or a Lender’s Policy does not qualify. When you refinance, you only purchase a Lender’s Policy which covers the new lender; your original owner’s policy is still in effect.

BUYERS: FREQUESTLY ASKED QUESTIONS

What Does a Title Company Do?

Orchestrates everything leading to the closing, issues title insurance to the
new owner and the lender, conducts the closing and handles post-closing
requirements.

• Works with Seller’s lender to pay off mortgage(s)
• Works with Buyer’s lender to set up new mortgage
• Conducts the closing
• Disperses funds, records deed and mortgage, sends signed loan documents to lender
• Issues the title insurance policy

What Should I do Before Closing?

• Apply for your loan and provide all necessary documents to lender.
• Make arrangements for Homeowner’s Insurance as soon as possible.
• Have the Utilities placed in your name effective the day of closing.
• If you are using a Power of Attorney, have the title company review the document ahead of time. The Lender and Sunbelt Title must approve it before closing. Bring the Original Power of Attorney document to closing.

What Should I Bring to Closing?

• Your spouse if this will be your primary residence.
• A Cashier’s check made payable to Sunbelt Title Agency if you are required to bring funds to closing. State law will not allow personal checks over $500.00 to be accepted. - or -
Wiring instructions can be obtained from Sunbelt Title.
• Government issued photo ID such as Driver’s License, Passport or Military ID and your Social Security Number or Green Card.
• Original Power of Attorney document, if applicable.

What Happens at Closing?

The Closing is the final step toward owning your new home:

• Buyer signs closing and mortgage papers, brings funds and receives keys to property.
• Seller signs closing papers, gives keys to buyer & collects funds from sale of house.
• Title company disperses funds, pays off seller’s mortgage, records new deed and mortgage.
• In about an hour everyone leaves happy.

What is Title Insurance?

• Unlike other insurance which protects what might happen in the future, title insurance protects you from what has happened in the past by searching public records.
• Provides coverage for losses due to defects in the title that occurred prior to your ownership.
• Protects against things such as unpaid taxes & liens, judgments, fraud & forgery or other issues that might go undetected until after closing. These could affect your ownership and investment.

What does Title Insurance Cost?

• Title Insurance is a one-time fee regulated by the State and is paid at Closing.
• The cost varies because it is based on the purchase price of the property.
• In this region, the seller customarily pays for the owner’s policy which protects new owner. The buyer pays for the policy that covers the lender.
• Example: $100,000 purchase price = $575 for the owner’s policy. The lender’s policy is just $25.
• The protection lasts as long as you or your heirs retain an interest in the property.

What Expenses Should I Expect?

• Closing Fee
• Lender’s Policy
• Endorsements to Lender’s Policy, if applicable
• Recording Fee for the Warranty Deed and Mortgage
• Documentary Stamps on the Mortgage
• Intangible Tax on the Mortgage
• Survey, Termite Inspection, Condo Approval Fee, HOA Dues and Transfer Fee, if applicable
• Home Inspection Fee, usually paid at time of inspection
• First Year Homeowner’s Insurance (and Flood Insurance, if applicable)
• Lender Fees. Appraisal and credit report are usually paid at time of application.
• Recording Fee for the Assignment of Mortgage, if applicable

NEW LISTING!

CLICK HERE FOR LINK TO LISTING!



853 Park Ct in Westlake Village, Palm Harbor, FL 34683

4Br's, 3.5Ba's, 2875 sf on a .3 acre lot! Only $260,000!




NOT A SHORT SALE! Savvy Buyers will see the equity and potential in this large Palm Harbor home priced to sell! This generously-sized 4Br, 3.5 Ba will be someone’s palace…why not make it yours? Situated on a corner parcel in idyllic Westlake Village, this sprawling home features hi ceilings, open living space, 2 woodburning fireplaces, a 2nd Living Room, and formal Dining Room. Well-sized Kitchen offers eating space and plenty of cabinetry. Hi ceilings grace the Family Room and Living Room. 4th BR would make a perfect study or office, complete with own Bathroom. Inside utility, 2 Car garage, whole-house vacuum, and intercom system complete the interior. Outside, you’ll find plenty of gardening for that “green thumb” and a screened pool for those hot summer days. 3 sets of sliding glass doors lead onto pool deck. This home is located just across the street from the park, lake, and walking path. Westlake Village features 30+ acres of parks and woods, Jr. Olympic-sized swimming pool, playground, 4 tennis courts, volleyball, basketball, Clubhouse & a 4 acre orange/grapefruit grove. Walk to the YMCA and A-rated Palm Harbor Univ HS. Estate sale. Sold As-Is.

CLICK BELOW FOR STREAMING VIDEO TOUR!

Well, now is the time buyers begin the transition to our area OR within our area. Invariably, buyers with children are usually very curious about which schools their children will attend and rightly so. In Florida, they have adopted a school "grading" system which assists residents with determining which schools are succeeding and which might be struggling.

Florida schools grades can be found at http://schoolgrades.fldoe.org/

Let's say you have narrowed down where you want to live and beautiful Pinellas county, with it's miles of pristine coastline, numerous county parks, great infrastructure, and lovely residents is where you want to be. However, you have researched schools and found the schools you want your child(ren) to attend. As you look at homes, you wonder "How do I know what schools they will attend?". Well, here's your answer:

https://sap.pinellas.k12.fl.us/PubInfo/

Type in the number and street of the prospective property and you will know what zone you are in. ****This does not guarantee assignment to this school**** You will want to verify with the district exactly what school your children will attend.

Similarly, Pasco County Schools has a website will tell you what schools your home is zoned for:

http://webdb.pasco.k12.fl.us/fmi/iwp/cgi?-db=PascoBoundaries&-loadframes

And finally, Hillsborough County Schools allows parents to view assigned schools at:

http://www.sdhc.k12.fl.us/choice/attendance.asp

I wanted to take a moment and speak to buyer, sellers, and homeowners in general about a subject that makes us cringe…no, not our 401k’s….

…termites. Yes, those creatures that are almost invisible until you find out you have them, and then you think you see them anywhere. Let’s start with some basics…

There are 3 kinds of termites specific to our area:

Subterranean (aka Formosa)
Drywood
Dampwood

For our purposes, we’ll stick to subs and drywoods because they are most relevant to property owners (and those soon to be).

Subterraneans are the most aggressive form of termites in that they can demolish a home in months, thanks in large part to their voracious appetites and large colonies. Subs attack a home from the ground – foundation cracks, wall fissures, pipes, and untreated wood touching the ground are common avenues for subs. They have even been known to build “mud tubes” to protect them from the elements as they travel across non-wood materials.

Drywoods are a very common termite in Florida and if you were to have any infestation, you would want these guys. They come uninvited, eat very slowly, and sometimes move on to greener pastures (read: your neighbor’s home). Drywoods travel via flying…when they swarm Jan-May (depending on temp and rain), pairs travel to new areas to start colonies. With block homes, drywoods typically fly up into the eaves and will get in the attic, which is all wood.

That info is nice to know, but how does that help YOU??? Good question. The first thing I have learned is NOT to fear these little buggers (excuse the pun). Once you understand them and how they exist, they are more of a slightly expensive nuisance than anything else (caught early enough, that is).

The 2nd thing to know is that their presence does not signify the end of the world, or your transaction, for that matter. Real Estate contracts have Wood-Destroying Organism (WDO) clauses in them that provide for treatment should termites or wood decay be discovered. Educated Buyers and Sellers know that tenting your average 1500 – 2000 sf Florida ranch will run about $1000 - $1500, normally comes with a multiyear warranty, and can be done before a new buyer moves in. Buyers of SFH should always get a termite inspection – they cost $50 - $75 and can be done concurrent with a regular home inspection. Please know that Florida law has changed with respect to inspectors – inspection reports are considered valid for that day ONLY, as termites can appear as the inspector pulls away in his car.

3rd, ALL homeowners and homebuyers need to know what to look for when viewing a home, in addition to having an inspection completed. Mud tubes on the exterior, “galleries” of eaten-through wood, mustard-colored round pellets (drywood), wings, and debris around windows and doors are all indication of current or past termite infestation. One of the biggest problems with termites is that they eat wood JUST BELOW the surface, sometimes keeping the problem hidden for months and years.

APRIL HOME/CONDO SALES NUMBERS FOR THE TAMPA BAY AREA!

It is my personal belief, given the unemployment rate, plummeting incomes, and the inflation just around the corner, that our market has quite a bit of time ahead of it before it "turns the corner". However, April sales numbers are surprisingly strong, given the last 6 tumultuous months.

However, strong is a relative word. 9 out of every 100 homes sold in April...quite a difference from the meteoric (and now unsustainable) 30 to 40 homes per 100 sold in 2005 - 2006. Single family homes, which make up roughly twice as much of the Tampa Bay market as condos do, registered the strongest performance, most likely owing the the fact that prices have receded to 2002 & 2003 levels.

Beach properties are still weak, but much stronger than recent prior months. Final sales prices for all classes of homes are in the low 80% range...meaning that if you list your home, on average you will sell it at around 80% of it's initial listed value...Sellers, take note!!!

TAMPA BAY AREA (tri-county)Homes Condos Total Units

Total Units Available: 21,748 10,440 32188

Total Units Pending: 3,352 922 4,274

Total Units Sold: 1,942 585 2,527

Absorption rate: 8.93% 5.6% 7.85%

Avg Days on Market 100 days 111 days 103 days

Months of Inventory 11.2 mons 17.8 mons 12.7 mons

Sold vs List Price % 93% 91% 93%

Sold vs Original List Price % 83% 80% 82%


PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 7,675 6,122 13,797

Total Units Pending: 1086 460 1546

Total Units Sold: 645 301 946

Absorption rate: 8.40% 4.92% 6.86%

Avg Days on Market 94 days 120 days 102 days

Months of Inventory 11.9 mons 20.3 mons 14.6 mons

Sold vs List Price % 92% 90% 92%

Sold vs Original List Price % 82% 81% 82%


N. BEACHES (476-478, 370-375) Homes Condos Total Units

Total Units Available: 677 1772 2,449

Total Units Pending: 55 100 155

Total Units Sold: 46 69 115

Absorption rate: 6.79% 3.89% 4.70%

Avg Days on Market 93 days 146 days 125 days

Months of Inventory 14.7 mons 25.7 mons 21.3 mons

Sold vs List Price % 92% 91% 91%

Sold vs Original List Price % 83% 80% 82%

Just what are sellers required to disclose to you, the buyer, as you contemplate purchasing their property? According to the state of Florida, sellers MUST disclose any fact that MATERIALLY AFFECTS the value of the property.

So what does that mean? What about that stuck window in the guest BR? Or the time the pipe backed up and the toilet flooded? Does a seller have to disclose that someone PASSED AWAY in the home?

The answers are YES, YES, and NO!I counsel my sellers to disclose ANYTHING that they think might affect the value of their property in the buyer's eyes. Does that include the stuck window? Yeah, it should. Here's why:

1. Buyers are appreciative of a seller being forthright and honest, no matter how trivial it may seem. Most buyers are understanding of a window that won't open or a toilet flooding or a roof leak that was repaired, etc.
2. There is a good chance a material defect will come out on a home inspection and the Buyer's will find out anyway. In some cases, depending on the way the defect is described to the Buyer by the home inspector, it may cause them to cancel the contract.
   

To go back to the question about disclosing someone's death in the residence, Florida has ruled that home sellers DO NOT have to disclose that fact as it does not MATERIALLY affect the value of the home. It may creep some people out, but that alone does not meet the statutory requirements for disclosure.

In real estate, the age-old adage is: LOCATION, LOCATION, LOCATION.

The new real estate adage that keeps people out of hot water is: DISCLOSE, DISCLOSE, DISCLOSE.

The most efficient and legally accepted way to tell a buyer about anything that materially affects the home's value is through written "Seller's Disclosures". Normally, when a client expresses interest in a certain property, their agent requests the written seller's disclosures before making an offer or just to get better insight on the property. The disclosures can be anywhere from 1 - 5+ pages and will include areas such as land, structure, plumbing, electrical, roof, mold, and other areas.

The NEWEST disclosure is CHINESE DRYWALL. Primarily affecting homes built from 2003 - 2007, this drywall has excess organic material within it and gives off corrosive vapors. Lawsuits are already starting to fly over this issue...

So you wanted a deal and you put an offer in on a short sale, perhaps even against your realtor's advice. 1 month went by, then another, and finally you hear back. The documentation is in order, the bpo was completed, and the Seller is countering your offer price $40,000 HIGHER! Huh? You thought that offer, while low, was enough to snag this home that is on the edge of foreclosure. The banks need people like you to unload these homes, right?

WRONG.

Like any other negotiation, dealing with banks on short sales DEMANDS you know their bottom lines, procedures, and rules of play. The first fallacy is that they NEED YOU. That is incorrect. Every bank has procedures for divesting themselves of bad investments and they stick to them UNLESS it's in their favor to take the shortcut, i.e. your offer. Even if a lender's REO department is flooded with inventory, it does not mean they will accept $.50 on the dollar for that beat-up 3/2 in need of a little TLC. Banks and servicers see only numbers, not rotted wood or broken windows. If the numbers don't work for the bank, then it's a waste of your time.

Which leads us to BPO's (Broker Price Opinions) and appraisals. While we all know the real estate sector is beat down, it doesn't mean that old 3/2 isn't worth a plug nickel. Lender's use appraisals (sometimes multiple appraisals) to arrive at a proper market value for the home, in accordance with their procedures. One lender I deal with automatically takes 5% off the BPO price to account for delays, time, and condition. So do yourself a favor...comp out the property BEFORE making your offer, ask the listing realtor for comps to justify value, and if you lowball, expect a counter (or someone else to slide a higher offer in after the bank counters yours).

If much time has elapsed since the property was last appraised, consider requesting a new appraisal. Guaranteed it will come in lower and closer to market value.

Just remember - the bank doesn't care if it needs new windows, the tile job was done poorly, or the cabinets are older and need freshening up. Heck, they don't even care about the age of the roof, the a/c system(s) or even the paint. Your negotiator is OVERWHELMED, OVERWORKED, and EXHAUSTED...there is very little motivation for them to work outside the framework that is set up. If they can't sell the home via short sale, the file is simply shipped over to their legal dept for foreclosure, then onto the REO dept for re-sale. No agnst, no emotion, etc...just a simple numbers game. So do yourself a favor and offer the RIGHT number so you, too, can be a winner in this market.

As a followup to my last post, I am now firmly of the opinion that Buyers and Sellers will now have to work closely together with understanding, patience, and flexibility if they are to achieve the results each desires. Whether it be re-writing addendums with bank-approved verbiage, extending closing deadlines for additional file approval, or even adjusting sales prices to include closing costs for Buyers, we have entered into an extraordinary time.

Sellers that don't want to play ball can find themselves back with the home they that they had sold. I encourage all sellers to be open-minded and let the other party know you intend to work with them to finish the sale.

As proof that now is an excellent time to buy, clients of mine who closed on Friday received a VERY competitive rate of 4.6% WITH NO POINTS!

Sales are up and if you've been montioring your favorite property for awhile, there's a good chance someone else may have snagged it up. I can attest that there is a ton of JUNK on the market...over-priced, beat-up homes that are perpetual listings and will probably never be "sales".

Is the market stabilizing? No one really knows. This market can't freefall forever and data is indicating a stabilization in certain segments. Get out there and get that home you've been wanting...

BUYERS AND SELLERS BEWARE!

Mortgage companies are putting YOUR escrow monies at risk!

Standard Florida Association of Realtors-approved sales and purchase agreements provide for a certain number of days (agreed by both parties) by which the Buyer will furnish a mortgage committment letter, thereby removing the mortgage contingency from the contract. If the mortgage letter is not supplied within the prerequisite timeframe, then it is automatically removed as a contingency.

Whether it is active or passive, the removal of the contingency for mortgage qualification puts a Buyers escrow (aka earnest money deposit) in jeopardy.

As a sidenote, many clients ask me how much escrow monies they should put down on a contract. The simple answer is twofold: there is no hard and fast rule in the State of Florida AND whatever sum is agreed upon by both Buyer and Seller. Buyers always want less, Sellers always want more.

I represented the Seller in a recent transaction and the day before closing, the Buyer's lender requested additional comps (comparative market sales) for the subject home. Apparently, their automated valuation program showed it to be a lesser value than the certified residential appraiser's appraisal did. This was a large inconvenience for both parties (and all involved) but moreso a large risk for the Buyer. What if the lender came back and said "Sorry, we cannot approve this loan...not because the appraisal showed less value than the purchase price, but because WE, the lender, don't think it's worth the money we're lending to the Buyer."

Whoa.

The Buyer has now passed the timeframe to cancel based on qualifying for the mortgage, which means their escrow is at risk. Obviously, the Seller is pushing to close asap but they are powerless observers as the lender completes it's due diligence.

The moral of the story is to use caution when dealing with the mortgage contingency clause. Even if all the dominoes line up, the mortgage lender may throw a curveball at the end that RISKS YOUR GOOD FAITH DEPOSIT.

I was reading an article in our daily real estate news bulletin and came across this gem:

"A "secret shoppers" test of 100 IDX-powered broker Web sites found that 33 percent of agents do not respond at all to inquiries about other brokers' listings. For those who did answer queries, the average response time was over 10 hours."

My first thought was I'm not surprised. It's one of the most common complaints I hear..."I called 14 realtors and you're the only one that called/emailed me back.".

Well, this is a well-known secret for every realtor...communication is the key to our success. We are communicators and facilitators of both real estate and INFORMATION. Now mind you, I will never throw stones...have I let an inquiry sit in my email box over the weekend? Yes (I am ashamed). Have I put off returning that one phone call on the home that won't sell? Yes (I am ashamed of that, too).

However, I am successful in real estate because 9.9 out of 10 times, I will respond to inquiries as I receive them whether in the office, on the road, at home during dinner, etc. Why? Because it's my job. My sellers depend on my timely and informative responses to successfully market and sell properties.

Many agents forget that THEY are an extension of their marketing campaigns. They spend $1000's of dollars wooing buyers but drop the ball when the inquiries come in. Heck, most buyers are somewhat reticent to call realtors anyway (which I understand 100% - who wants to be hard-sold when they just need some details on a property?).

I encourage buyers and SELLERS to test me. I think you'll like the results...

I receive a question from my blog this past week that I thought might be important to other readers. The names have been removed to protect the guilty ;-)

QUESTION:

I have recently been in a late fee problem at a trailer park in Dade County. The manager charged me $2 a day after the 15th of the month, and a standard flat fee of $15 for the first 15 days that kicks in when you are 10 days late. Each month that you are late the months begin to run parallel to one another like horses in a race. In other words, while March is late and accruing late fees of $2 a day, so is February. The end result is a cocktail of late fees totalling $150 or thereabouts when I paid everything on April 1st. I think this must be illegal. Can you help me?

MY ANSWER:

Thank you for your email. I can offer advice about what I would do and how I would interpret your lease, but Florida law says I must inform you that I am NOT a lawyer and CANNOT offer legal advice.

That disclaimer aside, can you email me a copy of your lease? From my experience with various contracts and HOA’s, all monies due are applied to the deficient balance first, then towards the rent that is not yet late. In other words, You can’t skip February, skip February’s late fees, and then pay March in full. Any payment you made would be first credited towards February rent and late fees, and then to March rent.

That does have the snowball effect that you mentioned…not only is February late and accruing penalties, but March then goes late because your March rent is applied first to February.

I am not familiar with Dade County, but Pinellas County has a legal hotline for consumers http://www.pinellascounty.org/consumer/. A similiar Dade County office would be able to direct you further.

What are Buyer's closing costs??? With so many out-of-state clients, this is a common question for me. I'll try to sum up general closing costs, which average between 1-2% of the purchase price.

1. Stamps on the mortgage: $.04 per $100 (total mtg amount)
2. Intangible tax: $.002 per $100 (total mtg amount)
3. Title co fees: $200 - $500 (includes various endorsements)
4. Mtg co fees: will depend on your lender (0% - 1% of mtg amount)
5. Escrows: Your lender may require you to escrow future insurance and tax payments...these escrows can be 3, 6, or 9+ months (dependent on mtg)
6. Home Inspection: Normally paid out of closing ($200 - $500)
7. Appraisal: Can be paid at or outside of closing ($300 - $500)
8. 1st Years HO Insurance: If buying a SFH, you will be req'd to purchase your policy at or before closing (dependent on home)
9. Lender's title insurance policy ($350 - $1000)
10. Monthly Maint Fees: Will be prorated for the month

Seller-paid closing costs:

1. Real estate commissions
2. Doc Stamps
3. Owner's title policy
4. Tax amount for time of ownership during that calendar year
5. Monthly Maint fees (prorated)
6. Any back taxes, hoa/condo fees, etc.

I was reading about home sales in the Tampa Bay area and how they were up 25% in February compared to a year earlier - WOW! I am feeling it to...offers are flying and contracts are being written. What has changed?

One word: perception.

Our perception of the economy has changed. When was the last bad jobs report you heard? Did you notice that 4 banks were taken over last week. That's buried in the back page. Gas is staying low, and people are even buying SUV's again?!?

What has changed to cause a 25% increase in sales? Price has decreased quite a bit, but so have buyers 401k's. Cash is still quite plentiful, however tight credit remains.

Could buyers be sensing a bottom? Perhaps. I still believe we are in for a long haul before our economy gets better (or at least evens out for a soft landing). Buyers have not seen these prices since pre-boom 2002 & 2003...it's like the last 6 -7 years never happened!

But they did. Short sales abound, the foreclosure onslaught continues, and there is sure more pain to come. We have a 2+ year inventory of VACANT NEW HOMES...where will thoe prices be 2 years from now? How will that affect our home prices? Only time will tell. But I do know one thing...if you price it correctly, they will come (and buy it)! Good luck

With it being a Buyers Market (Take note, Sellers) I wanted to touch on some aspects of home-buying that may be "Less-Mentioned" or thought about. Although your primary focus is buying right now, statistics show the average home owner will only stay in the home appr 7 years! With such a mobile society and fluid job market, expect to be uprooted (your choice or not) within 7 years and PLAN YOUR PURCHASE ACCORDINGLY...or better said, plan on choosing a home with good RESALE VALUE!

Here a few areas to consider when purchasing knowing this is not you final home:

1. Schools - this point can be belabored, but when it comes to children, parents want their kids in the best schools possible. If choosing between 2 homes, even if you don't have (or expect to have) children, take into consideration school quality before you make your decision. Florida school grades can be found at http://schoolgrades.fldoe.org/
2. Neighboring properties - this can help OR hurt you. I have a friend who bought a home 10+ years ago and now he finds himself surrounded by light manufacturing/industrial properties. If you don't mind bumps and noises in the night, cool. However, this will present an issue when selling. Do your due diligence on surrounding properties before pulling that trigger. The flip side: if my friend decides to sell, he would be well served by investigating a possible zoning change to similar zoning for his area...homes zoned for commercial enterprises are sometimes more valuable than homes left for residential purposes.
3. External Obsolecences - this term refers to external variables the de-value a property. In a local city, a developer built an exclusive gated enclave that just happened to be next to a very small dog kennel. Years later, owners of these McMansions were upset to learn that the kennel, which is hugely popular, asked the municipality for permission to expand their kennels. Suddenly, neighbors were up in arms about the noise and smell from the pre-existing kennel. The issue is not about the kennel or the multi-million dollar homes...the kennel, whether big or small, externally affects the value of that subdivision.
4. To pool or not to pool - this is a completely subjective feature. I have had buyers who absolutely needed a pool, didn't want to see any homes with pools, and didn't care whether it had a pool or not. In general, a pool will only add about $5000 - $10,000 of additional value to the property. Think long and hard before you have a $45,000 pool installed because you will NOT get your investment back when you sell.
5. Roads - this is something very savvy buyers will look into. Throughout the Tampa Bay area, we have seen a HUGE population boom which corresponds with an increase in traffic. Home sitting on a quiet 2 lane, scenic road in 1990 now find themselves watching 1000's of cars drive by on a bustling 4 lane artery in 2008! Sometimes, there is even a road there, but traffic needs dictate one be constructed. So how does a buyer find out if a road will be widened in the near future??? In Pinellas County, we have a Metropolitan Planning Organization (MPO) that issues 20 year forecasts for traffic/road construction: http://www.pinellascounty.org/MPO/LRTP/CFP.pdf