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.