Pinellas County Real Estate Q & A

2010-09-20T23:06:00.000-04:00

When will the Tampa Real Estate market stabilize?

I get this question so often. I can’t blame sellers for wanting to staunch the blood loss nor buyers looking to hit that bottom just right. I’ll cut right to the chase…it’s simple supply and demand, just like I learned in high school economics (Thanks, Mr. Cole!)

Our supply, or should I say oversupply, of homes for sale contrasts very tepid demand for these homes. Thus, more people are fighting over less buyers. Ok, but when will we stabilize? When will our “demand” return to more robust levels?
Everyone pontificates on that fact, including myself. I clearly remember the “Sharp V” bounce back being touted by the Realtors Association about 2 years ago. I was naïve and bought into it…now I’m a bit more jaded and see the glass as half-empty.

It seems as if it’s so easy to pull something out of harmony and into chaos than it is to restore it to that harmonic point. The Gulf oil leak, Middle East, and our current real estate market are great examples…we screw it up and struggle to bring it back to “normal”. (I bet I am the first person to correlate the Middle East crisis with our real estate market ;-)

Here are a few things that I believe are bringing our market to our knees (my opinion only!):

1) It becomes as cheap to own as it is to rent. Time Magazine is now touting the end of homeownership as a valuable commodity. Rents are so cheap now, why not lease a home. Until rents get back in line with owning, we will not see stabilization.

2) UNEMPLOYMENT. This is the big white elephant in the room no one is mentioning. Tampa just clocked in at 12.6% unemployment…many claim this number to be higher due to the people who have run out of unemployment and have given up. So let’s say 15%. The 12.6% number is a point above the Florida state average. How could we expect home prices to stabilize when over 1/10 of our population does not generate income?? How many people out of work have used up their savings trying to stay in their home and now must abandon it or short sell it? Until unemployment gets below 8-9%, we’ll continue to falter.

3) CONSUMER CONFIDENCE. This is the latest report on Florida’s consumer confidence measure http://www.bebr.ufl.edu/files/cci_08_2010.pdf : “Consumer confidence is entrenched at a relatively low level,” said Chris McCarty the Survey Director. “With the exception of a jump in April due almost entirely to the housing and appliance rebate programs, consumer confidence has been stuck in the upper 60s to low 70s for the past year. While the mix among the five components has changed, overall consumers’ attitudes reflect other economic indicators that don’t show a clear path out of recovery or back to another recession. We are in economic doldrums.” If we are not confident in our perceptions of our personal finances and the state of the economy, we will take less risk and choose to hold off on major financial transactions.

4) MORTGAGE INFLEXIBILITY. Those banks loved that bailout money but they sure didn’t turn around and lend it out, did they? They made it even harder for people to get a share of it in the form of a mortgage or equity line. Until we see a substantial loosening of mortgage standards – NOT like back in the heyday of mortgage fraud – we will be unable to get buyers of slightly higher risk in homes. By risk, I mean higher debt ratios and/or lower credit scores.

5) UNSTABLE SALARIES. If you are in the corporate world, you may have already experienced this. A client just related a story about a new corporation winning a government contract by being lowest bidder. The new company told the old contract employees to take a substantial 25% - 50% paycut if they wanted to stay on. Hmmm, that won’t help buoy our aging market when salaries are being reduced, people are being threatened with termination, and companies are taking back what they had given employees years ago. Multiple rounds of layoffs are commonplace at big firms as they trim their budgets…not only do the laid-off workers get hurt, but what do you think Mary in Accounting is thinking as her friends get escorted off the property? Yeah, let’s hold off on that new home.

6) FORECLOSURES & SHORT SALES. Yeah, this is obvious. Do you know foreclosures in Tampa are normally priced 20%-30% below market, sell in 5-10 days, and quite often go ABOVE list price due to the multiple bids received? That is not helpful for an area that has a higher-than-average foreclosure rate, such as new home communities, condo conversions, and other typically investment-driven complexes.

Heck, there’s probably more but I’m tired y’all. Tomorrow is another day in paradise!

2010-09-12T13:33:00.003-04:00

TRICKS OF THE TRADE!

The following info is pertinent to Florida only. For purposes of illustration, I am using Pinellas County.

"HOW DO I FIND HOA INFORMATION, AND WHO IS THE PROPERTY MANAGEMENT COMPANY?"

Here are a few tricks to help with this mystery-

1) ASK THE SELLER....Although they might not know offhand, there’s a chance they have received correspondence from them OR know a Board member. Some communities have a web presence that only residents know about.

2) Go to www.sunbiz.org:

• In the Left column select “LOOK UP A BUSINESS NAME”
• Choose the first link “INQUIRE BY NAME”
• Type in the name of your Subdivision in question, it doesn't have to be complete (ex. Try WESTLAKE VILLAGE)
• Scan the search results for something that looks like a community association (WESTLAKE VILLAGE CIVIC ASSOCIATION, INC.)
• Now click on the link, this will tell you who is the President, VP, Sec, etc. of the association.
• 411 the President, and ask them if they are self managed and who the best point of contact is. VOILA!

3) Finding a MANAGEMENT COMPANY is a little more tricky. Often, simply GOOGLING "HOA (enter name) MANAGEMENT COMPANY" will get you the info you need.

4) Another trick is to go to the Clerk's website (www.pinellasclerk.org):
• On left side halfway down select “Recording and Official Records”
• Choose ”Search Official Records”
• Type in the name of the HOA to search
• Select a LIEN that was recently filed.

Usually, an attorney does this for them, but read the Lien itself - it will show the name of the MANAGEMENT COMPANY in the body of the Lien.

2010-08-22T14:02:00.003-04:00

With mortgage rates at 4.42%, which is the LOWEST EVER since rates have been tracked, have you thought about re-financing. It's a tough decision that would normally be an easy one.

There are a few Pro's to re-financing:

1) Lower payment due to lower interest rate
2) Locking in an ULTRA-low interest rate good for 15, 20, or 30 yrs.
3) Converting monthly payment savings into HARD, IN-THE-BANK savings OR
4) Paying off bills with the monthly payment savings
5) Avoiding a balloon payment if you have a balloon mortgage

Some Con's you should consider:

1) Payments are pushed out 15, 20, or 30 years, setting back full satisfaction of the mortgage
2) Your principal portion of monthly payment shrinks
3) You may have to pay PMI (Mortgage Insurance) if you dont have at least 80%-85% loan-to-value ratio (LTV)
4) If you have a pre-payment penalty built into your current loan (tsk, tsk...yuou should have read the fine print)
5) If re-fi'ing with an ARM, you are losing longterm stability of your interest rate.
6) If you are paying points at the time of re-finance, compare actual upfront cost to annual savings...you may find it will take 5-10 years to break even on your savings.

Please do your due diligence if considering a re-fi! It's good for most but not for ALL!

2010-08-15T09:30:00.009-04:00

July stats are in and our market continues to sputter as it tries to get it's legs. My personal opinion is we are in a POST-Homebuyer Tax credit depression coupled with the severe mortgage and appraisal issues we are constantly dealing with.

The number of Homes Sold in July plunged 32% compared to June. On the other hand, the amount of new homes for sale only increased 2.4% (a stable supply will stabilize home prices) and Pending Sales showed a 14% increase over June's numbers. That should translate into a good August!

2010-08-08T22:10:00.000-04:00

Short Sales – just GOOGLE it!

For most realtors, short sales are a substantial part of our business. After 4 years in a decreasing marketplace, more people find themselves upside down on their mortgage EVERY day. While they certainly have their downsides, helping sellers in a financial quagmire unload a very negative asset is rewarding.

While I have a SFR designation (Short Sale & Foreclosure Resource) and have attended numerous training events offered by our local realtor Board and other entities, there is NO substitute for getting your hands dirty and working the phones for a short sale. I learn new things just about every short sale I close.

I took a listing recently that has THREE mortgages. It’s a first for me. Obviously, 1 mortgage is normally fairly straightforward and 2 mortgages requires some more advance planning and technique. But 3 mortgages??? Now I’m in the majors, baby!

After the fear subsided, I realized I had no choice but to dive right in. The very first thing I did was send in the authorization letters. My second action was to hop online and Google “short sale 3rd mortgage” and also the bank holding the note.
Now, we all know 2nd & 3rd lienholders THEORETICALLY have no “leverage” but they actually wield quite a lot of power, which catch many by surprise. They have the power to withhold approval, meaning you have a dead deal. They have the power to release the lien, allowing the sale, but NOT release the seller from the obligations of the note. They have the power to require a large payoff at closing, which is basically a ransom demand.

If one has never dealt with a particular bank in a particular lien position, then Google is a great place to start. The amount of info-sharing via customers and realtors is great. For instance, I learned that this particular 3rd mortgage has a separate number for submitting authorization letters (which I knew beforehand) and it behooves realtors to follow up for a contact in their Executive Client Relations division, where they will be assigned a neogitator. Unfortunately, I also learned that under no circumstances will they release the deficient amount owed on the equity line – at least that is what people claim. A follow-up call to the lender confirmed that.

Information is power these days. I have already alerted the sellers in order to set their expectations. I know the bank’s negotiation position beforehand. I also know how they have responded to other borrowers.

So if you’re wondering how your bank responds to short sales, just Google it. You’ll be glad you did.

2010-08-01T14:38:00.002-04:00

Mortgage tips for Buyers.

Preventing the last minute collapse of your mortgage file doesn't take much...just knowing how the game is played. A new rule (Fannie) called Loan Quality Initiative went into effect on July 1, 2010 that requires lenders, Before Closing, to check credit to make sure borrowers have not incurred any new debts. If borrowers incur More debt, and it affects the underwriting ratios by more than 2%, the loan will have to be re-underwritten prior to closing. Here's some Old School Advice that's still relevant!

Don’t – allow multiple credit checks

Don’t - apply for new credit within 45 days of signing a contract

Don’t – “Shop” for new credit before closing (Furniture, cars, etc)

Don’t – Go on a spending spree (using your credit limits) to buy things for your new home.

Do – File tax returns and/or extensions

Do – Explain or document all inquiries on your credit report

Do – Disclose all Debt – even if it did not show up on your credit report

Do – Work with a knowledgeable lender who can help you navigate the ever-changing mortgage industry.

2010-07-25T13:45:00.002-04:00

Hi. We need to talk.

Please, have a seat. No, you should really sit down.

It's been a rough couple of years, with the market zigging and zagging...ok, mostly "zagging".

I can see the serious money you put in your home...the granite counters, crown moulding, remodeled pool, outdoor kitchen...you've done a wonderful job!

You're probably asking yourself, "Is he going to give me bad news?"

Unfortunately, I am. I don't want to, but it's my job.

Your home's value has fallen - hard. But your not alone...according to the county, my own home's value has fallen 23% from 2009 - 2010. A little excessive, but I won't argue...I want my taxes lowered.

Just so we're clear, Pinellas County has released it's 2010 real estate values in advance of mailing all countywide homeowners their real estate TRIM (TRuth In Millage) notice. The numbers are "preliminary" but I doubt they'll change much.

Also, we're NOT talking true value numbers...we don't use the tax records for that. We would use comparable properties sold w/i the last 3-6 months.

However, for tax purposes, the County is saying our homes' values took a nosedive. Your first thought is probably "Whew" followed closely by "What does that mean for me?"

Well, you MAY be paying lower taxes, as long as the taxing authority doesn't raise your millage rate. GOTCHA!

If you're selling, you BETTER believe buyers are looking at this info. I try to counsel my clients that it should not be relied upon solely for valuation purposes.

If you're curious, go to WWW.PCPAO.ORG and click on "Search our Database" on the lefthand side. Select you method of entry (I used address) and get out the tissues...

Just keep in mind that historically Real Estate has DOUBLED every 7-10 years so we're in a trough now. Our population is increasing (read: demand) and with so few new homes being built, our supply is stable. There will be a stabilization and turnaround, but no one can say when.

Hey, it looks grim but it will get better. As we all know, nothing stays the same forwever...

2010-07-18T23:10:00.002-04:00

Welcome to the NEW normal. Our inventory has leveled out at approximately 27,000 units. About 11% - 12% of AVAILABLE properties are selling each month - that means just 1 in 10 will close!

2010-07-14T21:32:00.003-04:00

I was thinking about what to blog while cleaning my pool today and !voila! it came to me - pools. They are a MUST HAVE for many buyers and a HEADACHE for some sellers. The number of pools in Florida has been reported to be WELL OVER 1,000,000... unfortunately, we also lead the nation in drowning deaths as a result.

That said, maintaining a pool can be daunting for new owners. Lucky for me, my wife was a Certified Pool Operator (CPO) in VA and ran many commercial pools. She was always the one to let me know what I was screwing up and how to remedy.

Your husband/wife/significant other not a CPO? We can fix that - we have many local pool supply companies that will test your water for free. Of course, they hope you buy the chemicals their tests say you need. When we had our pool resurfaced, a condition of our warranty was that we had to have the water tested EVERY month. This I do at a local pool supply co.

I'm not going to go over the basics of pool chemistry, as I do not claim to be a pool expert. I have become comfortable with my own pool and spend just about 5-10 minutes PER WEEK cleaning it. BUT EVERY POOL IS DIFFERENT!

The purpose of this blog article was to bring to light something I found out today. During my monthly water test, I was told I had low "Total Alkalinity" and low "Calcium Hardness" due to the 8" of rain we have received. That reminded me I had to drain the pool TWICE this last week.

I googled my pool's "condition" and here's what I found:

The total alkalinity (TA) is a measure of how much of the alkaline substances there are in the water. In the swimming pool water, we are concerned with bicarbonate alkalinity, which should be between 80 ppm and 120 ppm.

When the total alkalinity (TA) is within this range, it prevents rapid pH changes and "stabilises" the pH level.

If the TA is too low, Marbelite and plaster walls will become etched, metals corrode, the pool's walls and floor can stain, the water can turn green, eyes burn and we can have pH bounce (pH rapidly going up and down, seemingly at random).

If the TA is too high, the pH is difficult to adjust, the water becomes cloudy, the pool constantly needs acid (according to your test kit) and the chlorine loses its efficiency as a disinfectant.

It is recommended that you test the TA regularly, but in practice it changes very little in a well-maintained pool.

As for the calcium hardness, I have seen it pull calcium from the pool surface when it is too low:

Low calcium hardness

Low calcium hardness results in corrosive water. The plaster surfaces or tile grouting softens and erodes, metal equipment and accessories oxidize and rust quickly, and the water becomes aggressive. This can lead to staining of the pool's surfaces as well as an eventual need for resurfacing.

Increase low calcium hardness

The calcium hardness level can simply be increased through the addition of calcium chloride or any commercial calcium increaser (which contains CaCl).

Alternatively, in swimming pools that suffer constantly of low hardness due to the quality of the fill water, calcium hypochlorite could be the chlorine of choice. This chlorine adds calcium to the pool water with each addition keeping the level up. Care must be taken to test Conditioner a couple of times a year as this chlorine (65% - 70% CHC) does not contain conditioner in its formulation.

High calcium hardness

High calcium hardness results in scale formation on the pool surfaces as well as scaling in the pipes, plumbing and filter. In extreme cases the water becomes dull and cloudy with the calcium precipitating out into the water rather than onto a surface. High calcium levels will also irritate swimmers, causing sore eyes in particular.

So if you have a pool and have rec'd a bit of rain, make sure you test your pool water. If anything, I hope this post saves you some frustration down the road...

2010-07-09T06:46:00.000-04:00

Rich Cornelius www.RichCornelius.com | Coldwell Banker | (727) 417-8814

1492 Byram Dr, Clearwater, FL

LARGE 2/2.5/2 w/ EASY 3rd BR - BOAT/RV/JET SKI PARKING, TOO!

2BR/2+1BA Single Family House

offered at $148,500

Year Built	1968
Sq Footage	1,747
Bedrooms	2
Bathrooms	2 full, 1 partial
Floors	1
Parking	2 Car garage
Lot Size	.27 acres
HOA/Maint	$0 per month

DESCRIPTION

GREAT 2/2.5/2 WITH EASY 3 BR…MUST SEE! PARK YOUR BOAT, TRAILER OR RV IN DOUBLE-GATED HUGE BACKYARD! CLOSING COST ASSISTANCE AVAILABLE! ONLY $85/sf! Features of this awesome home are: NO FLOOD INSURANCE REQD, no rear neighbors, gorgeous curb appeal, double door front entry into foyer, LARGE living room, formal dining room, lite-n-brite kitchen w/ eating space, lovely tiled Florida room, and EASY 3RD BR where office is now. Updates include: Barrel tile roof (’99), Carrier A/C system (’03), NuAir windows throughout (’02), attic insulation (’07), metal gutters (’00), carpets (’05), Garage Door (’99), and GE Dishwasher and stove/oven (’02). Whirlpool washer & GE Dryer STAY! Additional features incl: vertical blinds, HUGE kitchen pantry, ceiling fans, pull down attic access inside, and MONTHLY ELECTRIC BILLS WELL UNDER $100 (copies available). Located in well-cared for, established neighborhood close to Dunedin MS, Dunedin Elem, and King’s Highway. If you sleep ON it, you may not sleep IN it! See this home today!

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Tile floor
- Family room	- Bonus/Rec room	- Dining room
- Breakfast nook	- Dishwasher	- Refrigerator
- Stove/Oven	- Microwave	- Attic
- Washer	- Dryer	- Laundry area - garage
- Balcony, Deck, or Patio	- Yard

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5	Photo 6

Contact info:

Rich Cornelius www.RichCornelius.com

Coldwell Banker

(727) 417-8814

For sale by agent/broker

Equal Opportunity Housing

Posted: Jul 3, 2010, 3:28am PDT

2010-06-29T14:46:00.000-04:00

This is amazing...

All Rates But 1-Year ARM Hit Record Lows In Freddie Mac Weekly Survey
For Immediate Release

June 24, 2010
Contact: corprel@freddiemac.com
or (703) 903-3933

McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.69 percent with an average 0.7 point for the week ending June 24, 2010, down from last week when it averaged 4.75 percent. Last year at this time, the 30-year FRM averaged 5.42 percent.

The 15-year FRM this week averaged 4.13 percent with an average 0.6 point, down from last week when it averaged 4.20 percent. A year ago at this time, the 15-year FRM averaged 4.87 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.84 percent this week, with an average 0.7 point, down from last week when it averaged 3.89 percent. A year ago, the 5-year ARM averaged 4.99 percent.

The 1-year Treasury-indexed ARM averaged 3.77 percent this week with an average 0.7 point, down from last week when it averaged 3.82 percent. At this time last year, the 1-year ARM averaged 4.93 percent. This is the lowest the 1-year ARM has been since the week ending May 6, 2004 when it averaged 3.76 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed mortgages in September 1991 and 5-year hybrid ARMs in January 2005. The record low for traditional 1-year ARMs of 3.36 percent occurred during the week of March 25, 2004.

“Both new and existing home sales showed unexpected declines in May. Existing sales fell 2.2 percent, compared to the market consensus forecast of a 6.0 percent gain, based on figures published by the National Association of Realtors® . Sales of new homes fell 32.7 percent to an annualized rate of 300,000 units, which was the largest monthly drop and slowest pace since records began in 1963, according to the Census Bureau .”

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

http://www.freddiemac.com/pmms/release.html?week=25&year=2010

2010-06-22T15:20:00.002-04:00

MAY Tampa Bay real estate stats

Stats were strong, as anticipated. The fly in the ointment is the staggering dropoff of Pending Sales, which would most likely sell in June. New home sales are again at a record low, which eventually forces the sales of existing homes.

There has been talk of extending the tac credit CLOSING deadline to September, but nothing substantial that I have seen as of yet that would indicate this is a reality. There will be alot of buyers who will miss the deadline and subsequently the tax credit money.

2010-06-15T20:48:00.001-04:00

I received the following anecdote from a great realtor in Orlando, FL, - Albert Stimer.

"With short sales on the rise, mortgage fraud scams involving these transactions may be following the same trend.

In fact, two former Connecticut real estate agents, Sergio Natera and Anna McElaney, recently pled guilty to bank fraud stemming from their involvement in a short sale mortgage fraud scheme. According to court documents, Natera and McElaney worked together to defraud various banks, including Regions Bank, Wells Fargo, and other financial institutions by means of “materially false and fraudulent pretenses, representations, and promises.”

In the case of Regions Bank, Natera and McElaney deceived the bank into agreeing to a short sale on a property for which it held two mortgages on. McElaney, who was the listing agent for the property, received an offer to purchase the property for a price of $132,500. However, she and Natera subsequently directed communications to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management, LLC, an entity Natera controlled.

The bank agreed to the short sale of the property for the lower price and released its mortgages on the property. Shortly thereafter, Natera, through BOS Asset Management, sold the property for $132,500 to the initial bidder. He and McElaney then retained the difference in the two sale prices. Natera and McElaney used this scheme in various other short sale transactions and have been charged with bank fraud, conspiracy to commit bank fraud, and aiding and abetting. They both await sentencing in August.

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) warned of the potential risk of short sale fraud in its recent quarterly report to Congress. In the report, SIGTARP said revisions to the Home Affordable Foreclosure Alternatives (HAFA) program under the Home Affordable Modification Program (HAMP) present an increased prospect of potential fraud.

As part of the new initiatives, Treasury announced that additional incentive payments will be paid to borrowers and servicers who participate in short sale provisions. This also increases the incentives for those participating in criminal short sale scams, and it appears that the program may lack necessary antifraud protections, SIGTARP said.

The report cited “flopping” – which is exactly what Natera and McElaney have been accused of – as one prevalent short sale scheme. SIGTARP explained that this scam centers on home values that are fraudulently deflated for the purpose of decreasing the cost of the short sale to a “straw purchaser.” The property is then quickly resold for its true market value, leaving the difference in the “crook’s pocket,” the report said.

SIGTARP said the HAFA program permits home valuation, the key vulnerability point for a flopping scheme, without a true appraisal, allowing estimates from brokers or other “independent” provider at the discretion of the servicer, subject to its contractual agreement with the investor.

To combat this risk, SIGTARP recommended that Treasury adopt a uniform appraisal process across all HAMP and HAMP-related short sale programs consistent with the Federal Housing Administration’s procedures."

Albert Stimer
Lic. Real Estate Broker
Lic. Mortgage Broker
Short Sale Specialist.
Towns Realty

2010-06-02T08:42:00.003-04:00

Dear Appraiser, My Seller is not your enemy….

AN OPEN LETTER TO THE 2 APPRAISERS WHO SHOULD HAVE THEIR LICENSE REVOKED

First, I want to say to all the competent and professional appraisers I have had the pleasure of meeting and chatting with: You are a complement to your profession and we, as realtors, appreciate the hard work you put into your occupation.

Now, to the 2 appraisers who sent in mistake-riddled appraisals on a recent deal and NEARLY prevented my seller from selling, SHAME ON YOU! It’s not about you, it’s not about me, or the other realtor, or the mortgage co, etc. It’s about the Seller and the Buyer. Period. Their dreams, their goals, their aspirations…and yet you trample them without a moment’s thought (or so your appraisal made it seem).

I know you have taken a lot of heat over the market taking a dive. But that’s water under the bridge. It’s up to us to bring this market back and that’s only going to happen when good buyers and good sellers can complete a transaction.

When we met at the property, I brought both of you a brief synopsis of comparable properties and a quick opinion of value. Obviously, I knew (and expected) you would both do your own research but thought you would come close to my opinion. What happened??? Having lived in the neighborhood for 6 years and sold numerous homes in here, I am well aware of current values. In fact, 4 of the 6 comps you used in your appraisal were MY LISTINGS, yet you never called me for additional details on the homes. Ultimately, you made quite a few mistakes on the appraisal that required me to write a written appeal asking for corrections – but it was too late at that point.

Putting your incompetence aside, you wouldn't know that my seller lost his wife of 30 years about 18 months ago. He is battling cancer himself and his house was just too big and filled with too many memories of his soul mate. Not that you knew (but maybe deduced from public records), he was also bringing $50,000+ to the closing table to get the deal done. Ultimately, the home appraised as it should have – on the THIRD APPRAISAL - after 2 wildly inaccurate appraisals blew apart 2 different contracts. When you fail to complete your due diligence and sign off on that error-riddled appraisal, you are affecting people’s lives immeasureably.

If you are from across the Bay and unfamiliar with our area, why wouldn’t you take assistance from a “neighborhood expert”? Your terse response to my comps, “I’m not allowed to speak with you” is not quite accurate. Other appraisers have told me the law does allow you to consult with experts in the area to arrive at a reasonable fair market value. Just because a bank orders the appraisal from you doesn’t mean you automatically know our area…

In the end, it all worked out. The Buyer and Seller closed the deal for quite a bit more than your appraisals came in at. When you’re doing future appraisals, please consider speaking with the listing agent and enlisting their knowledge to help you accurately produce an appraisal. If you aren’t sure of a home’s features or have questions about the comps, PLEASE ASK…we are on your team and will get you whatever information you need.

To those 2 appraisers (I use that label loosely), please re-assign the appraisal if you see me listed as contact for the appraisal. I don’t want to work with you in the future. I want to work with professionals who show a willingness to understand our market and will complete an accurate appraisal of fair market value.

2010-05-25T11:33:00.000-04:00

Reports are coming in that our home sales in the Tampa area were UP 27% to get in under the deadline for the Homebuyer Tax Credit. Average sale prices were also reported to be UP 1% in April as well.

MLS MONTHLY REPORT APR ‘10

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

Total Units Available:      17,611                  8,627                      26,238

Total Units Pending:    4,292                   1534                        5,826

Total Units Sold:               2,401 ,                  963                         3,364

Absorption rate:                13.63%              11.16%                  12.82%

Avg Days on Market        90 days             100 days    93 days

Months of Inventory    7.3 mons             9.0 mons                7.8 mons

Sold vs List Price %               94%               93%                          94%

Sold vs Original List Price % 84%               85%                           84%

PINELLAS COUNTY          Homes              Condos               Total Units

Total Units Available: 6,382                 5,355                    11,737

Total Units Pending:                  1380                    770                       2150

Total Units Sold: 851                    556                       1407

Absorption rate:                    13.33%    10.38%                 11.99%

Avg Days on Market             84 days              100 days                 90 days

Months of Inventory              7.5 mons              9.6 mons    8.3 mons

Sold vs List Price % 92%                      93 %                    93%

Sold vs Original List Price %      86% 85%                     86%

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

Total Units Available:                570                      1419                    1,989

Total Units Pending:                    73                        171                       244

Total Units Sold: 43    113                      156

Absorption rate:    7.54%                  7.96% 7.84%

Avg Days on Market             107 days              113 days              112 days

Months of Inventory            13.3 mons               12.6 mons         12.8 mons

Sold vs List Price %                 90% 92%                      91%

Sold vs Original List Price %    84 %                    85%                      85%

2010-05-16T14:44:00.000-04:00

I ran into a conundrum recently that I had not experienced before. Our business is a good part “ethics” and also “best practices”, which sometimes change with the times.

I had a buyer client recently who came to me as a referral. The husband and wife (not material to the story) wanted to look at urban condos as they were are planning on settling in the area. I picked out a half dozen nicely-priced, top-end properties in their price range in different areas as they are somewhat familiar with the area, but not intimately so.

During my buyer pre-interview, where I ask questions of the Buyer that will help me understand their motives and goals better, I found out they were looking to retire in 3-6 months and had a property to sell in another state. Not a problem – it’s actually quite common for Florida buyers.

Halfway through our showings, we viewed a unit where the owner was home. Buyers asked the right questions and seller had the right answers. They had a lot in common and we spent about 30 minutes exploring the home – the buyers really liked it. As we were leaving, the buyers casually mentioned they would be retiring in the next 1-2 YEARS and are not looking to buy right now. I cringed immediately, out of surprise and a little embarrassment. 1-2 YEARS? I had been told 3-6 months?!? I could tell the seller was taken aback, as was I.

About an hour later, I received the phone call I was dreading. It was Mr. Seller. His first question, which I had already contemplated, was, “Why did you waste my time with a buyer who isn’t ready to buy?”

After informing him I was as flabbergasted as he was and that the timeframe quoted to him differed greatly from the timeframe I was told, I apologized profusely for taking up his time.

Upon ending our conversation, I mulled over the “ethics” (maybe not the best word for this situation) and “best practices” of showing buyers properties. Normally, realtors show properties to buyers who are ready to buy. But what about nurturing those inquisitive buyers who are making the transition?

Do we flat out tell them we can’t show property unless they are ready to write an offer? Hard to keep clientele that way, as my goal is to meet my clients’ needs.

Do we only show them vacant properties so as not to inconvenience sellers? Hardly a way to accurately see available inventory.

Do we tell the sellers/listing realtors up front that the buyers are not looking to buy immediately but want to see their home? They could only see it as a waste of their time.

Do we not worry about it, as sellers are marketing their home with the expectation of selling to someone? That’s not fair to sellers.

HOW do we nurture buyers who aren’t ready to write quite yet but want to see what’s available in a particular area and see price/value trends in that area?

My conclusion is that there is no correct answer. It’s one of those sticky situations that doesn’t come up often.

Being a realtor is often about making judgment calls, as there are many “gray” areas in our business. Ultimately, we represent our client(s) and should act in their best interest. Maybe that’s the answer…

2010-04-28T23:58:00.002-04:00

It's rewarding for everyone to receive kudos for the job they do. I wanted to share a quick note I received that illustrates a Realtor's importance...our knowledge extends past getting a property from contract to closing.

Rich,

Dick and I, want to thank you for recommending Dan Butts, Insurance Co.

Citizens Ins. sold (or transferred) our policy to Homeowners Choice Prop. and
Causality and we received our copy of the policy on Friday. I took the time to
read it and told Dick that I thought we had a real problem, so I phoned them
yesterday to ask questions about our coverage and the woman was rude and could
not quote a price on changes we wanted to make. She said it could be $300, $500
or even $1000.00 difference in price and we could not make changes until the
policy was renewed next year. What a nightmare that was, knowing that we could
possibly not have adequate coverage with our hurricane deductible at 5%.

So, I called today and Sandy was so nice and after faxing copies of our declarations
to her on the homeowners and flood insurance she called back with all the answers.
Basically, if I had not read the policy and taken the time to check into it, she said that if we had any damage from that storm Sunday, that we would not be covered. She went over everything with us and is taking care of all of it for us to see that we have the coverage we need with very minimal increase in our premiums. She told us to contact JNR Inspections to come out and inspect our home which they are doing this Thursday.

Sandy is going to cancel our policy with Homeowners Choice and take one out with Citizens and we do not have to wait until renewal. I believe she was surprised at what coverage we actually had which was not much and recommended what we should have.

The whole scenario is that it could have been disastrous to us had you not referred us to them. I feel comfortable knowing that we will have the coverage we need to protect us given just about any situation. Sandy was very polite and courteous and is going to take care of it and set it all up for us.

We cannot thank you enough Rich, for you help in this matter. Makes me wonder just how many people out there have that coverage and is not aware.

Again, Thank You,

Dick & Carrol

2010-04-26T16:45:00.004-04:00

Excruciating...frustrating...nails-on-chalkboard...

That may very well describe every realtors job these days. If a realtor is not experiencing these emotions, I claim they are not really working!

I always like to say that I will take real-life situations and store them away as a teaching "moment". I had one occur recently that has thrown me (and my clients) for a loop and really caused some heartache.

Long story short, Buyer contracted to purchase a beautiful pond-front home that has recently been remodeled. Seller got it at foreclosure, did some very nice things, and put it on the market. All well and good...

...that is, until today. I get a call from the title company closing the deal who proceeds to inform me/wreck my day that the home has an OPEN mortgage on it. Huh? Apparently, only 1 mortgage was foreclosed on and the other mortgage remained open and in force. Ugh.

The delicious topping on this was that the mortgage that was foreclosed on was riddled with errors relating to the legal property description...those, too, must be corrected.

This is an excellent illustration of CAVEAT EMPTOR, or Buyer Beware. Some people believe that when a property is purchased at county auction due to foreclosure, the property is free and clear. It's not. IRS liens MAY stay with a property until satisfied or negotiated. If the 2nd mortgage is foreclosed on and a buyer outbids the 2nd, then the Buyer takes title SUBJECT TO the 1st mortgage. Utility liens normally stay on past foreclosure.

One MUST due a quick and dirty title search, at the very least, before purchasing a property at auction. That is the only way to know the true picture. This is not true, however, if the property is bank-owned. Normally the proper channels have been followed and title is clear of defects.

Will let you know how this turns out...

2010-04-14T23:46:00.003-04:00

We're making progress now!

All sectors of Tampa Bay real estate (non-commercial) have shown dramatic increases in sales volume. Inland, both Single Family Home and Condo sales increased anywhere from 3 - 5 percentage points compared to last month.

The beach, which has been practically on life support, DOUBLED in sales volume!

Are we out of the woods - hardly. Is the forest "thinning"? Seems to be.

Below are the numbers for March for the TB area:

MLS MONTHLY REPORT MAR ‘10

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

Total Units Available: 17,931 8,948 26,879

Total Units Pending: 3,728 1393 5,121

Total Units Sold: 2,263 916 3,179

Absorption rate: 12.62% 10.24% 11.83%

Avg Days on Market 93 days 107 days 97 days

Months of Inventory 7.9 mons9.8 mons 8.5 mons

Sold vs List Price % 93% 93% 93%

Sold vs Original List Price % 75% 86% 77%

PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 6,483 5,489 11,972

Total Units Pending: 1213 696 1909

Total Units Sold: 763 503 1266

Absorption rate: 11.77% 9.16% 10.57%

Avg Days on Market 80 days 102 days 89 days

Months of Inventory 8.5 mons 10.9 mons 9.5 mons

Sold vs List Price % 91% 93% 92%

Sold vs Original List Price % 78% 87% 82%

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

Total Units Available: 600 1428 2,028

Total Units Pending: 69 136 205

Total Units Sold: 37 104 141

Absorption rate: 6.17% 7.28% 6.95%

Avg Days on Market 95 days 87 days 89 days

Months of Inventory 16.2 mons 13.7 mons 14.4 mons

Sold vs List Price % 85% 93% 91%

Sold vs Original List Price % 76% 89% 85%

2010-03-29T22:51:00.002-04:00

This article is for the condo buyers out there...yes, people are still buying condos, some by the boatload. With the condominium market feeling some of the hardest hits this market has to offer, prices make them ripe for the picking.

However, buyers need to do their due diligence. Increased foreclosures have lead to a deficiency in the condo fee revenue taken in by condo associations. This adversely affects the appearance of the complex, the maintenance of the complex, and the operations of the condo complex. A decrease in the amount of operating funds MAY also lead to increased fees for unit owners OR a special assessment to make up the shortfall. Only in dire situations does the Association declare bankruptcy or dissolve, which can be catastrophic for owners.

Florida state law allows Buyers 3 business days (on existing condos) to review the following:

1. Condo rules, regs, and governing documents
2. Articles of Incorporation
3. Condo Questionnaire, aka Q & A
4. LATEST YEAR END FINANCIALS

With respect to #4, this is the most important info a buyer can receive. However, it can also be outdated and misleading. Imagine a scenario where a buyer is purchasing a condo in December 2010. By law, they must be given the latest year-end financials, that being 2009. If the Association has experienced a rash of non-payment of dues or foreclosures resulting in unpaid monthly fees, the full story may not be in those 2009 financials. So how do you get the full story?

1. If the complex has a website, explore it thoroughly. Some allow visitors to examine their docs and financials. Most likely, those documents will be reserved for residents, but there is a chance you can see them.

2. Ask for the approved financial statement from latest month available. It should include a balance sheet with year-to-date and budgeted amounts as well as a Profit and Loss statement. Some complexes mail to owners so the seller may be able to provide.

3. Ask for Board meeting minutes going back 6-12 months. This will give you insight into any financial issues cropping up OR whether a special assessment is coming down the pike.

4. Speak with a Board member. As a President of a large HOA with a $350,000 annual budget, I am always willing to discuss our finances with potential residents. After all, they will stake in the financial viability of our association. Board members are more in tune with finances and maintenance issues which may lead to increased fees or special assessments.

5. Speak with a resident. Living in a small community, unit owners are normally in tune with the latest news - and many are willing to share that info, especially to new buyers. However, use caution - rumors and false info can sometimes be propagated by residents as the truth. Verify all info.

6. Speak with the condo management company if they have one. Call the company and find out who is in charge of your particular complex or building. Remember, they are super-busy and normally stressed so BE COURTEOUS. If you have a lot of questions, offer to email them to the manager.

2010-03-22T06:51:00.002-04:00

If you're a Buyer today, you've probably heard of an FHA loan.

Administrated by the Dept of Housing and Urban Development, the Federal Housing Administration, generally known as "FHA", provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. (www.fha.gov)

In order to get an FHA loan, the property must be approved. If your shopping for condos or TH's, you will need to ensure the complex has been "FHA-approved". The approval process involves examines the complex's governing documents and other related documentation to ensure it meets HUD guidelines. In the past, units in complexes that were NOT approved were able to receive "spot approval". That option has faded as the popularity of FHA loans, which loan Buyers up to 3.5%, has soared.

So how do you go about finding an FHA-approved condo?

Visit https://entp.hud.gov/idapp/html/condlook.cfm

Looking at Largo, FL, as an example, you will find the following complexes approved for FHA loans:

1. Via Verde
2. Brittany's Place
3. Lafayette Square
4. Autumn Chase
5. Shadow Lakes
6. Whispering Palms

It's a very small list but very valuable - units in these complexes can get quick 96.5% financing.

In the coming months, FHA loans will be overhauled to lower their overall risk. For Buyers with credit scores "on the bubble" or who barely meet qualifying guidelines should move quickly to utilize an FHA loan before more rigorous standards are adopted.

2010-03-15T23:30:00.002-04:00

Ok, so you're realtor just called. That beautiful 3/2/1 Mediterranean-styled TH just went under contract, even though you only saw it this morning. Seems the seller signed right after your showing...and you just missed the opportunity of a lifetime, right?

Wrong.

If you have a savvy realtor, he or she should be advising you to MAKE A BACKUP OFFER!

"Oh, not a backup offer," you say, " they take up too much time and you might never get the property."

Um, hello...isn't that the definition of all short sales????

Let me enlighten you, without charge, to one of the little short sale secrets in our business...the FIRST buyer RARELY gets the home...it's normally the SECOND but most likely the THIRD buyer who puts an offer in that gets it.

Now this may be hard to believe, but let me illustrate w/ Buyer A, B, & C.

Buyer A is hitting the streets hard...they know everything out there, are waving their mortgage pre-approval letter at anyone who will notice, and have written about 4 offers that have gotten nowhere. I just listed that beautiful 3/2/1 Med-styled TH at a competitive price that I can justify (the key!). Buyer A comes screaming in 3 days after it hits the market and write an offer on the hood of their agent's car (yeah, that used to happen). The seller executes the offer and then....

...they wait...

...and wait...

...and wait some more.

Days pass, then a couple weeks, and now a month. They get an update every once and a while - the bank this or the bank that. No negotiator, no BPO done yet. So they wait some more...

In the meantime, Buyer A keeps hoping (and shopping).

Buyer B comes along after about 5 weeks of my listing being on the market and they love it, too. Perfect for their first home. I tell the agent there's an offer in place but NO BACKUPS. Buyer B thinks about it, thinks some more, but just can't get the motivation to put in that backup. After all, backup's never work out.

About 7 weeks into it, we get the BPO done and a negotiator assigned. Buyer A gets a momentary blur of excitement. And then waits some more. Oh, a new TH just came on the market for $10k and it's NOT a short sale...hmmm.

At about Week 8, Buyer C comes through. They are savvy, know about the contract in place, have asked how long the 1st contract has been in place, and that there are no backups. They put in a backup BUT decide to keep shopping. Now they have reserved a spot and all they have to do is serve written notice if they want to cancel...done deal.

About this time, Buyer B (or D, E, F, etc) comes back...but it's too late. You can be a 2nd backup, which still isnt bad, but your odds are much less). Buyer A has emotionally moved on...they pull their contract. Buyer C slides right into 1st place, the bank negotiator substitutes their name into the deal, and 2 - 4 weeks later, I email them the approval letter.

This happens ALL DAY LONG. So don't be an "B"...if you can't be an "A" then be a "C" and cash in on everyone else's time and waiting!

2010-03-07T21:01:00.003-05:00

Taking a step back and looking at the big picture, why are all these banks PROACTIVELY committing resources to allow borrowers to renege on millions and millions of dollars of legal mortgages? These lenders literally employee 1000's of people for the sole purpose of assisting borrowers with "getting out" of mortgages where they might owe tens and perhaps HUNDREDS of thousands of dollars.

The sole reason: there are 100,000's of homes fitting this description and this tidal wave will swamp our real estate landscape should it go unaddressed.

So why not just ramp up their REO departments to handle this "flood" of foreclosed homes? Actually, there are a couple of reasons...

1) Lending standards and "book" balances. Per lending regulations, however LOOSE they mayy be to some, lenders can only have a maximum amount of bank-owned property on their books at anyone time, otherwise they become restricted in the amount of money they can loan. By doing a short sale, they circumvent this restriction as they never take ownership of the property and can continue loaning money to make money.

2) Actual cost. Sure, the foreclosure process "punishes" the homeowner by ripping their home from them in a most publicly humiliating way, branding them with a scarlet "F". But when the smoke clears, the bank is now the brand new owner of a home it doesn't care a bit about BUT had to invest in to get it back only to sell it. From foreclosure legal fees to appraisal costs to rehab costs to satisfying municipal liens to insurance and tax costs to REO closing costs, these are all ADDITIONAL expenditures a lender must make in order to take the home back and then divest it from their books.

3) Overall cost: The latest figures show that on average, short sales are selling for about 17% BELOW MARKET, which normally reflects buying the property as-is and costs to rehab it after closing. Why would they ever want to sell a property at that much of a discount? Because the going rate for a BANK-OWNED home is about 30% below market. So after spending all that money to take the property back, they take an even LARGER hit selling it themselves.

4) Owner-occupied vs. vacant. You probably know a homeowner who is upside down on a mortgage and may be living payment-free. I'm not addressing that moral dilemma. However, processing a short sale where the owner is still in the property, paying utilities and providing even minima of upkeep is preferential to a VACANT bank-owned home which may have been vandalized BEFORE the foreclosure auction out of spite of AFTER the auction out of mischief. Obviously not all short sales are owner occupied, but all short sales have at least a realtor trying to sell the property, thus keeping tabs on it.

I say all that to say this - when you are buying a short sale, don't think the bank is doing you a favor. Know that you are doing the BANK and borrower a favor.

2010-03-02T09:40:00.001-05:00

By now you have heard...January home sales were waaaayyyy down. By my calculations, sales in ALL sectors - homes, condos, beach, mainland, etc - were down 40%-50%.

What does this portend?? Well, that "V"-shaped recovery is an extended "U". I think is was a typical post-holiday lull complicated by record low temps (man, was it cold showing houses) coupled w/ a slowly declining market. I think we'll see more "normal" (a term I use very loosely) numbers in Feb and beyond.

The bugger in the covers are now the appraisals. Arms length sellers and buyers are watching their dreams evaporate thanks to new mortgage rules that require ZERO communication between sellers, buyers, realtors, mortgage brokers, etc. This rule would have been great 4-5 years ago but there are few who believe they can get away with mortgage fraud these days...which is what these rules aim to eliminate. Now, it's the regular joes like you and me who can't move on with their lives because some appraisers are UNWILLING to correctly value our homes.

2010-02-22T23:32:00.003-05:00

With +/- 25 listings at any given time, ensuring hat my sellers are putting their best foot forward is always a priority with me. Our markets are seeing double and triple the normal amount of inventory, which means your home can get lost in the crowd! Everyone knows Sellers should de-personalize their home, light candles, blah, blah, blah. Ok, those things work, but can you tip the scales in your favor in addition to those tried-and-true selling techniques?

I think you can and I'm going to share some great ideas with you:

1) Map your home for sale with drive/walk times and distances to local restaurants or other places of interest (bike trails, malls, etc), playgrounds, schools, parks, etc. Our culture is becoming more exercise-conscious, walking-friendly, and main street centered.

2) Make a comprehensive list of all your upgrades with the year it was upgraded. Buyers love to see the years when certain items were updated - it gives them a sense of security and ability to forecast potential repair/replace issues. Don't have remodeled/replaced items on your list - - - your list price better reflect that!

3) Make a list of all contractors who normally do work on your home - plumber, electrician, roofer, pest control, etc. Having this issue shows buyers you care for your property and have a team of certified professionals to rely on.

4) This is big - assemble your last year's worth of electric bills...better yet, itemize your monthly utility bills. That's the greatest unknown when buyers are looking and putting that info out there shows you are proud of your home. Are your utility bills large? Consider making changes to you home to mitigate those costs (new insulation, low flow toilets and shower heads, new energy-efficient appliances, etc).

5) Include a copy of the last couple of monthly meeting minutes for your HOA or COA. Unless your community homeowner's association is a warzone, including meeting minutes is a great way to familiarize your potential buyer with your community.

6) ***GOOD TIP*** Ensure you have a copy of you Condo Docs/Deed Restrictions & latest Financials on hand. I always have to tell my buyers that we normally don't see condo/hoa docs until we're under contract. Analytical Buyers HATE that answer. Soothe their fears by having those docs on a personailzed thumb drive or CD.

7) Have warranty info for machanical items summarized on a separate sheet. it will give buyers great piece of mind and they may be a little more "accepting" of flaws in home inspection.

8) This one takes some coordination but can really seal the deal! Let a neighbhor know when your showings are and when the buyers arrive/depart, have that neighbor wave, say good morning, or start casual small talk. This feat req's some coordination and a personable neighbor, but it will instill a sense of belonging in your buyer and allow them to picture themselves living there.

These are just some out-of-the-box ideas - good luck!

2010-02-15T22:48:00.002-05:00

I'm going with an anti-real estate topic this week. I could wax poetically about the appraisal crisis taking place in our communities and how it's crippling our market, but instead I will focus on something lighter and more positive - our fascination with all creatures great and small.

One of those fascinating creatures is the Osprey, a bird of prey found in the Tampa Bay area. Taken for granted by those that live here (I'm guilty) these wonderful birds are awesome to watch. Living primarily on fish, it is not unusual to watch them fly with one dangling from there claws as they make their way bac to the nest.

Now, you can get up close and personal with ospreys in dunedin on the DunedinOspreyCam.com website. It features fun facts about the birds and a 24 hour all weather camera that peers into their nest!

Check it out at DunedinOspreyCam.com

2010-02-08T14:25:00.000-05:00

Military sellers reimbursed for losses

WASHINGTON – Feb. 8, 2010 – Using $555 million in Recovery Act funds, the Department of Defense has expanded a program that can reimburse employees up to 90 percent of the price they paid for a primary residence to avoid a loss when they go to sell. The Department identified Florida as having the most home sellers who qualify for the program.

The Pentagon’s Housing Assistance Program now applies to:

• wounded service members relocating for treatment or medical retirement and survivors of those who have died while deployed

• military personnel and Defense Department civilians affected by the 2005 round of base closings, as a result of the Base Realignment and Closing initiative

• military personnel moving to a new base

Previously, applicants had to demonstrate that the closing of their base contributed to the decline of the area’s real estate market and a resulting loss in sales. That requirement has been waived under the expanded program.

As of Jan. 18, 2010, almost 4,000 eligible applicants for the expanded program have been identified and 429 claims have already been paid for a total $32.8 million, according to the Pentagon.

After Florida, the Defense Department says it also expects applications from California, Virginia and Georgia.

For more details about the program, including eligibility and limitations, download this PDF.

© 2010 Florida Realtors®

2010-02-01T13:44:00.001-05:00

Have you loved your Short Sale Buyer today???

I was recently commiserating with a colleague of mine about the state of the real estate industry and how short sales should be ceremoniously renamed "long" sales 'cause there ain't nothin' short about ‘em!

She shared a short anecdote with me that a seller had become uncooperative because a buyer wanted to do multiple inspections, show the home to visiting family members, etc. My colleague related that the seller had taken the position that the buyer was getting such a good deal on the home that they (the buyer) should just be happy with the deal and leave the seller alone.

I haven't had that occur (yet) and I can understand the seller’s point of view. No one wants to sell their property for less than market value, lose their down payment and any equity they once had, and have to take a small hit on their credit to do so. let's face it...there are hurt feelings involved.

As I ruminated on this story one night, I got to think that the seller should be grateful they have a buyer who's willing to take the home off their hands. Here's why:

1) The buyer has the courage to buy in a depreciating market. If Apple stock showed 4 years of cumulative losses, how eager would you be to throw your money in? Granted it doesn't seem like it can go much lower and in some places has reversed course AND we’re talking about mortar and bricks vs. paper stock, but you get the point. Buyers should be applauded for wading into the market rather than sitting on the sidelines.

2) Buyer’s have the patience to jump through all the hoops a short sale requires. I have counseled too many Buyers not to get their hopes up but inevitably all do at some point in the transaction. Having the saintly patience and perseverance to wait for some behemoth lender in a land far, far away to approve of a deal where they take an immediate loss should be rewarded, if just with the appreciation of the seller. Tom Petty must have been in a short sale deal when he prophetically wrote, “The waiting is the hardest part!”

3) The most import reason a seller should be appreciative of a short sale Buyer is that this Buyer is going to relieve you, Mr. Seller, of tens of thousands and possibly HUNDREDS of thousands of dollars of negative equity. When combined with the government’s non-taxation of that forgiven debt (for primary homes only), you have just witnessed one of the biggest get-out-of-jail-free, please-move-on-with-your life, water-under-the-bridge cards ever thrown a citizen’s way!

The moral of this anecdote is: don’t bite the hand that will get you out of your majorly upside down mortgage. In fact, put the Buyer on your holiday card list! The only thing a short sale Buyer is guilty of is having the ability to purchase a home in a down market…essentially, good timing.

Love your Buyer and they will love you back (and get you out of that mortgage you hate paying!).

2010-01-24T21:23:00.001-05:00

What happens in Vegas will NOT stay in Vegas...

Bank of America To Unload 6,000 Bank Owned Homes in Vegas

19Jan10

Vegas

Bank of America plans to dump 6,000 bank owned homes in Las Vegas in 2010, according to the Las Vegas Review Journal.

A BofA executive told the paper it expects to release about 500 repossessed properties per month this year in the hard-hit region as the foreclosure rate increases.

This is the so-called “shadow inventory,” previously foreclosed homes that were kept off the market in the hopes loan modifications or short sales could be negotiated.

But a large percentage of loan modifications have re-defaulted and short sales have been difficult to process, despite tons of interest from potential buyers.

Steve Hawks, the director of the National Association of Short Sale Professionals, told the paper it’s taking an average of four to six months to complete a short sale, though he sees it dropping to 90 days in 2010.

That’s good news for Bank of America, which is reportedly receiving 40,000 new offers a month on short sales.

Unfortunately, the bank is also expected to be repossess 11,000 – 14,000 homes a month in the early part of this year and 29,000 – 35,000 by November and December.

Hawks said 22 percent of mortgage defaults were strategic, tied to underwater mortgages, adding that banks need to eliminate the hardship letter required for short sales and consider all those who fall behind on payments.

Last spring, Bank of America eased its short sale rules, requiring less of the proceeds from a property’s selling price go towards paying off an associated home equity line of credit or second mortgage.

2010-01-17T17:09:00.000-05:00

Tax deductions for Homeowners make owning LUCRATIVE!

***I will start with my disclaimer – please consult a license CPA for tax advice and guidance***

Even in a down market, owning is oft times better than renting. This rings especially tru come tax season. The following 2009 tax deductions can only be applied to homeowners who owned DURING 2009…if you just bought or plan to buy this year, plan on them for 2010 tax season!

1. Mortgage Interest Deduction. Arguably the MOST POPULAR deduction, this deduction is meant to encourage homeownership by making it more lucrative than renting. Compare a own vs. rent scenario where the monthly payment is $1000. If your mortgage payment is $1000 and $900 of that is interest, you are allowed to REDUCE your GROSS INCOME by $10,800 ($900 x 12 months). There is no deduction for rent payments. Thus, a homeowner who grosses $50,000 per year will have that number reduced to $39,200. If he is in a 20% tax bracket, instead of paying $10,000 they will only pay $7960, a savings of $2140 on your tax bill.

2. Energy Efficiency Deduction. Have you upgraded to a solar water heater, solar panels, hi-efficiency A/C, new insulated garage door, or similar home improvement? You may be eligible for deductions that will lower your gross income OR dollar-for-dollar tax credits. The credit is 30% of the cost of installing such energy savers, up to a top credit of $1,500. Some credits are even more, depending on the project!

3. First-time Homebuyer Tax Credit. While not a tax deduction, this dollar-for-dollar tax credit is claimed on your taxes (which is why I included it in this article!) Put into action by the Obama Administration in 2009 to stimulate/encourage homebuyers and home sales, this max $8000 credit can only be claimed by meeting the following criteria:

• Buyers must NOT have owned within the last 3 years
• The purchase must be completed NO LATER THAN July 1, 2010

4. Real estate taxes paid in the same tax year can be claimed as a deduction.

5. If you used a traditional or Roth IRA for a downpayment on a purchase this year, plan on deducting up to $10,000 of that withdrawal on your taxes.

For more information on these and many other tax deductions related to owning or disposing of real estate, visit Kiplinger’s online at http://www.kiplinger.com/features/archives/2007/01/hometaxopedia.html

2010-01-11T06:48:00.001-05:00

PLEASE TAKE A LOOK AT MY NEW LISTING!

Rich Cornelius www.RichCornelius.com | Coldwell Banker | 727.417.8814

680 Sandy Hook Rd, Palm Harbor, FL

Awesome 4/2/2 in great Palm Harbor neighborhood

4BR/2BA Single Family House

offered at $249,900

Year Built	1979
Sq Footage	2,295
Bedrooms	4
Bathrooms	2 full, 0 partial
Floors	1
Parking	2 Car garage
Lot Size	13,580 sqft
HOA/Maint	$0 per month

DESCRIPTION

2295 SF, 4 BEDROOMS & 2 BATHROOMS, 2 CAR GARAGE w/ SCREENED POOL! Found in the popular Palm Harbor community of Westlake Village, this freshly updated ranch home offers abundant living space, plentiful storage, and a unique design sure to please every buyer. Buyers will love the split plan layout, central kitchen, and multiple living areas. The kitchen has been updated with: solid surface counters, brushed nickel hardware, and BRAND NEW, NEVER USED SS appliances! The 3 guest BR's and hall feature new laminate hardwood floors, paint, floor molding, ceiling fans, and window treatments. HUGE Inside utility room. Set on almost 1/3 of an acre, the home is complete with a fenced backyard, children's playset, and great curb appeal. Shingle roof only 10 yrs old (appr). Westlake Village is a friendly community featuring 30+ acres of parks and woods, Jr. Olympic-sized pool, new playground, 4 tennis courts, volleyball, basketball, Clubhouse & and citrus grove. Walk to the YMCA and A-rated Palm Harbor Univ HS. You won't find many homes for sale in here! HOA is $558 per year for 2010. No flood ins req'd. Non-evac zone.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Fireplace
- Walk-in closet	- Hardwood floor	- Tile floor
- Family room	- Living room	- Office/Den
- Dishwasher	- Refrigerator	- Stove/Oven
- Microwave	- Stainless steel appliances	- Attic
- Laundry area - inside	- Yard	- Swimming pool

COMMUNITY FEATURES

- Clubhouse	- Swimming pool(s)	- Tennis court(s)
- Lake	- Playground

ADDITIONAL PHOTOS

Photo 1	Photo 2
Photo 3	Photo 4
Photo 5	Photo 6

Contact info:

Rich Cornelius www.RichCornelius.com

Coldwell Banker

727.417.8814

For sale by agent/broker

Equal Opportunity Housing

Posted: Dec 29, 2009, 5:54pm PST

2010-01-05T19:46:00.004-05:00

If I told you that you might qualify for a NO-INTEREST, 30 YEAR loan for $20,000, would you believe me? How about 50% of the purchase price???

You should. Because it's a no-brainer, steal of a deal for buyers! It's called the Neighborhood Stabilization Program (NSP) and it's coming to (or already present in) an area near (or around) you. It's a federal fund administrated by HUD and locally administered by municipalities.

So how do one go about getting this awesome benefit? Well, first you, as the buyer, need to meet some income qualifications. Among others, here are a couple:

Maximum debt-to-income ratio is 50%
The Homebuyer Assistance Program is available to families earning less than 120% of the median income for the Tampa Bay area. NSP requires that 25% of all funds be spent on families earning less than 50% of the median income.

So what homes qualify? They have to fall within the NSP areas to be eligible for the money. If you are in Pasco County, for example, you can click on the following site to see if your subject property qualifies:

http://gis1.pascocountyfl.net/nshood/

The beauty of the $20,000 2nd mtg is that buyers can also use it to wrap in closing costs, leaving little money needed to bring to closing.

If you are in the area, visit Tampa Bay Community Development Corp at www.TampaBayCDC.com for more info.

2009-12-22T09:00:00.002-05:00

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%

2009-12-14T23:18:00.003-05:00

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:

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.
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.

2009-12-06T17:46:00.001-05:00

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!

2009-11-28T18:44:00.004-05:00

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.

2009-11-09T09:20:00.004-05:00

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.

2009-11-01T21:49:00.003-05:00

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.

2009-10-26T16:24:00.006-04:00

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.

2009-10-19T19:39:00.003-04:00

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".

2009-10-12T23:23:00.005-04:00

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!

2009-09-30T00:08:00.002-04:00

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:

Uniformity of building codes
conformity to building codes
an acceptable level of safety in construction
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!

2009-09-21T08:24:00.001-04:00

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

2009-09-15T22:13:00.003-04:00

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%

2009-09-08T08:41:00.003-04:00

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:

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.
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.
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.
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.
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!
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!.

2009-09-01T09:58:00.004-04:00

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.

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.
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.
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.
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????
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).
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!
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.
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.

2009-08-26T15:17:00.002-04:00

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

2009-08-17T17:34:00.003-04:00

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%

2009-08-10T09:13:00.005-04:00

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.

2009-08-03T20:27:00.004-04:00

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.

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.
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.
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.
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!
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.
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.
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!

2009-07-28T15:12:00.002-04:00

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%

2009-07-21T22:38:00.003-04:00

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?

Does your home smell like sulphur?
Was your home built between 2004 - 2007?
Are you experiencing costly and recurring A/C repairs?
Are copper water and a/c lines corroding, as well as loose change?
Is your electrical wiring corroding?
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.

2009-07-14T11:15:00.004-04:00

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...

2009-07-07T16:25:00.003-04:00

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:

Mortgage fees
Insurance pre-pays
Property tax pre-pays
Closing fees
Lenders Title Insur
County & State recording fees
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.

2009-06-29T11:23:00.003-04:00

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%

2009-06-22T09:15:00.001-04:00

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.

2009-06-15T11:12:00.002-04:00

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

2009-06-09T15:38:00.004-04:00

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!

2009-06-01T10:50:00.003-04:00

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

2009-05-25T21:40:00.003-04:00

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.

2009-05-17T21:25:00.003-04:00

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%

2009-05-11T06:36:00.004-04:00

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:

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.
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...

2009-05-03T13:11:00.006-04:00

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.

2009-04-27T21:44:00.002-04:00

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...

2009-04-21T19:51:00.001-04:00

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.

2009-04-08T15:37:00.003-04:00

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...

2009-04-06T09:05:00.002-04:00

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.

2009-03-30T08:03:00.003-04:00

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.

Stamps on the mortgage: $.04 per $100 (total mtg amount)
Intangible tax: $.002 per $100 (total mtg amount)
Title co fees: $200 - $500 (includes various endorsements)
Mtg co fees: will depend on your lender (0% - 1% of mtg amount)
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)
Home Inspection: Normally paid out of closing ($200 - $500)
Appraisal: Can be paid at or outside of closing ($300 - $500)
1st Years HO Insurance: If buying a SFH, you will be req'd to purchase your policy at or before closing (dependent on home)
Lender's title insurance policy ($350 - $1000)
Monthly Maint Fees: Will be prorated for the month

Seller-paid closing costs:

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

2009-03-23T18:55:00.002-04:00

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

2009-03-19T07:50:00.003-04:00

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:

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/
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.
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.
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.
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

2009-03-10T09:57:00.000-04:00

The 2-liter tale and how it can help sell your home!

Wow, what a week it has been...buyers making offers, sellers not accepting. I think many sellers have not accepted the reality of their situation. According to Zillow.com, 51% of all US homeowners believe their homes have lost value. That leaves 49% who think their homes are as valuable or have increased in value in the last year! Huh? EVERYONE has seen the value of their home go down.

I heard this example while I was getting my GRI designation, which is Graduate, Realtor Institute. It goes to the core of how we, humans, evaluate value and make decisions based on PERCEIVED value:

Every week you go shopping, you pass those 2 liters of Coke, Pepsi, Dr. Pepper, etc. Invariably, they are $.99. It's a given, like the tides and taxes. You shrug, feel you are paying what is reasonable (based on recent purchases), grab a couple 2 liters of your favorite brand, and move on.

Then one week, the indescribable happens - the price on the same 2 liter goes up 10% and is now $1.09!

What gives? Given the increased cost, you decide to hold off on buying a 2 liter...the family can drink water for a week.

The next week, that same 2 liter is still $1.09 BUT a competitors 2 liter is back down to $.99. Time to switch brands - you grab just 1 2-liter in case you don't like it as much!

The next week, your brand of soda is back down to $.99 PLUS a 10% discount, making it $.89 total. Sensing that you just discovered the best bargain of the year, you throw 10 into your cart and make a beeline for the checkout counter.

Here are the lessons:

1) Value is perceived and humans establish a baseline for such value based on repetition. In real estate, they're called "comparable sales".

2) If the price is above our perceived value, we will change our spending habits AND/OR buy the lower-priced competition, even though we may not like it as much.

3) If the price is below our perceived value, we will make quicker decisions, perhaps spend MORE than we normally would, and alter our spending habits to secure the "deal".

Sellers, you will not get the upperhand in this market. Ask yourself - can I support this price based on comps? When was the last time you checked the comps? If you have been on the market for 90 days and your comps when you listed were older than 90 days, guess what? You are using comps which are 6+ MONTHS OLD and no longer viable.

Do yourself a favor and listen to your realtor. There is a reason why your first bonified offer (not a readily apparent lowball offer) is normally your best offer.

2009-03-02T20:16:00.002-05:00

I found this article fascinating. Before you think you will get a free ride, please consult an attorney.

If you are looking for a local attorney you can trust and who is well-versed and knowledgeable in all aspects of foreclosure and bankruptcy law, I HIGHLY recommend without reservation CAROLYN SECOR, PA. Carolyn has been successfully fighting for her clients well before the housing downturn and she has a wealth of knowledge she can share with you. Her website is www.BankruptcyForTampa.com or you can call her at 727-254-1704...

http://www.floridarealtors.org/NewsAndEvents/n4-030209.cfm

'Show me the mortgage papers’ spreading as foreclosure defense

WASHINGTON – March 2, 2009 – While the Obama administration battles to keep people from losing their homes, one Florida lawyer said she has a better answer to the toxic mortgage epidemic sweeping the country – fight back against the loan servicers and banks that are improperly pressing the foreclosure actions.

“The loan servicers bringing most of the foreclosure actions in the country don’t own the mortgages and have no standing to take away a person’s home,” said the lawyer, April Charney, who has stopped scores of foreclosure actions in Jacksonville, Fla., where she works as a Legal Aid lawyer.

In essence, Charney has forced scores of plaintiffs in foreclosure actions in Jacksonville to admit they don’t have legal ownership of the securitized mortgage they are trying to foreclose upon – stopping the home takeover battle in its tracks.

The strategy has spread virally around the country and now thousands of foreclosure lawsuits are sitting idly – in legal limbo.

“I have one case from 2004 where the bank has not returned to court and where my client now has deposited more money into a trust account than the house is worth,” Charney noted.

Charney has held seminars in Ohio, Oregon, South Carolina and throughout Florida to educate lawyers on how to implement the courtroom defense.

At least one Brooklyn judge, Arthur M. Schack, is already using the strategy himself in the courtroom. He told a reporter recently that he denies more foreclosures than he approves. Last summer, 13 of the 14 foreclosure actions that came before him were denied.

“I want to see the servicing agent’s power of attorney, I want to see all the paperwork before I approve it,” he said. “If the paperwork is garbage, I deny it. If you’re going to take away someone’s home, it should be done properly.”

The legal issue is that banks turn the mortgages into bonds, which are put into trusts, like collateralized debt obligations, or CDOs. The banks “sell” the CDOs the right to collect the revenue stream but, according to Charney, not the equity right to the property.

Charney notes that under the current set-up, the mortgage default hurts everyone – like a neighbor who could be a state worker whose pension fund money is invested with a hedge fund that has invested in a mortgage CDO.

“So far I’ve drafted about 1,500 lawyers into my army,” Charney said in a telephone interview last week. She is scheduled to hold her first New York seminar next month.

“Of course, I’m looking to educate them and have them use the same technique here,” she said. That should be sweet music to homeowners here who are facing a foreclosure action.

Charney said Washington has the resources to allow every mortgage holder the right to modify their mortgage – something that would definitely mute the criticism that the Obama plan rewards failure by allowing those who obtained mortgages they couldn’t afford to cut a deal for a lower monthly payment.

“Look, the same problem that banks are having with securitized mortgages is going to spread to defaults with car loans, credit card accounts and student loans – they are all securitized and the banks and loan servicers starting legal actions to collect on those defaulting loans will face the same issue proving ownership,” said Charney.

As for Obama’s $275 million mortgage plan, Charney said she has a better idea: “The U.S. government has to take over every one of these securitized loans and open up the mortgage modification plan to every American. That’s the only way we are going to get past this horrible thing,” said Charney, who has become, alongside a handful of other consumer advocate legal eagles, quite a cult personality for her pioneering courtroom foreclosure defense strategy.

2009-02-19T06:59:00.003-05:00

Wow, check out my beautiful new Lansbrook waterfront listing. An amazing 6 Br's, 5 Ba's, 3 Car Garage, pool, spa, gameroom, theatre, dock, and so much more!

Lakefront Executive Residence

2009-02-16T10:54:00.004-05:00

January home sale stats (compiled from our Tampa Bay MLS) are attached to this email and, as expected, the numbers are somewhat sobering. However, I expect the next 3 months to be very fruitful for buyers and sellers alike. NOW is the time to ensure your property is priced correctly for the current market. If you haven’t noticed it already, Buyers are out there grabbing flyers and calling off signs.

The brightest spot in the latest numbers is that our available inventory continues to decline, but not as fast as we would like to see. Throughout the tri-county area, just 4.59% of all available properties sold, leaving us with almost 2 years of inventory at current levels. I expect this number to shrink as our buying season progresses. HOWEVER…properties are currently selling at just 72% - 80% of their ORIGINAL LIST PRICE, which means we are over-pricing many of our properties from the outset. The beach continues to be a weaker segment of the home sale market, but that is expected to change as we experience an influx of visitors.

If you have any questions about the info provided, pls call, email, or text me. Below are 2 graphs depicting tri-county property sales (home & condo):

2009-02-11T06:10:00.002-05:00

With home pricing fluctuating wildly, it's always good to know where we've come from (most owners know what their home was worth at the height of the market), know where we are right now, and forecast where we are going. Sellers all too often OVERPRICE their home at the outset thinking they are giving themselves negotiating room and are left emptyhanded 3 -4 months later when they are following the market down in terms of pricing.

Here's a little "foresight" into where your home value was, is, and may be in 2010 and 2011. In the example below, I will use a foreclosure in my neighborhood (to protect the guilty who over-mortgaged themself).

1) First, visit Zillow.com and type in your address. Click on home details, scroll down, and select "5 YEAR GRAPH"...the peak of the housing market was in mid 2007 and the graph will show the highest price. Zillow says the highest value in 2006 for this home was $366,000.

2) Per a St. Pete Times article on December 30, 2008, citing the National Case-Schiller Index, values in Tampa Bay have fallen 30.5% from the peak in July of 2006 (Value #1). That makes the value at the end of 2008 at $254,370 (which is extremely accurate for my neighborhood)

3) An article "Economists: US Home Prices Likely to Fall Another 10 Percent" by Barry Wood, Voice of America, 10/22/2008, forecast an additional 10% value loss for 2009. That puts the homes appr value at $229,000 towards the end of 2009.

4) Research from the University of Michigan on the real estate sector of the US Economy, 11/20/2008, forecasts "Prices will bottom out in late 2009…and then edge up by just 1 percent during 2010." The 2010 value of the example home wwould then be $231,000.

5) If we resume our historical real estate growth, "median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005" according to the National Association of Realtors. Let's assume this is correct, although I see this as highly unlikely given our present circumstances. The value in 2011, at 6.5% annual growth, would be $246,000.

If you are selling and you are able to lower your price, do so. Otherwise, you may be a homeowner until 2011, over 2 years from now.

2009-02-01T14:14:00.002-05:00

The latest on the citizen-initiated 1.35% Property Tax Cap...

WPBF.com

Tax Cap Removed From 2010 Ballot

Florida Supereme Court Knocks Tax Cap From Next Year's Ballot.

POSTED: 7:47 am EST February 1, 2009
UPDATED: 9:29 am EST February 1, 2009

TALLAHASSEE, Fla. -- The Florida Supreme Court has knocked a proposal for a property tax cap from the 2010 ballot.

In an opinion posted Friday, five justices said the ballot summary was misleading. Two justices dissented.

The proposal is a citizen initiative that would cap property taxes at 1.35 percent of the highest taxable value of a home, business or other real estate, although voters could approve exceptions.
Petition sponsors said tax cuts ordered by law last year and through another state constitutional amendment passed in January 2008 don't go far enough.

2009-01-24T13:17:00.004-05:00

I discovered this video gem and couldn't help but share it. If only I knew about this gentleman during the run-up.

Essentially, Peter Schiff was seeing into the future as he did the whirlwind of financial talk-shows in 2006 and 2007. Not only was he right, he was EXACTLY RIGHT!

What's so comical are the "EXPERTS" who predicted 10% real estate gains, picked Merrill Lynch and Bear Stearns as best-buy stocks, and prophesied expanded wealth in the financial sectors.

http://www.liveleak.com/view?i=b0a_1232747931

So, in the future, listen to Peter Schiff!

2009-01-14T17:47:00.002-05:00

Despite the tumultuous end of the year, the real estate market in the Bay area finished slightly stronger than anticipated. Home sales ticked up and supply decreased slightly, which is the right formula for stabilization. Condos are still sluggish, with relatively undiminished supply and flat demand.

What is amazing is that Beach homes through out Pinellas County that sold in December closed at 70% of their original list price. That’s a full 1/3 discount. Other property types in and around Pinellas that sold in December averaged 82% - 85% of their original listing prices.

Distressed properties are here to stay and make up appr 1/3 of our sales. 2009 is a peak year for “Pay-Option ARMs” to reset and will cause a secondary wave of foreclosures as owners’ payments double, triple, and quadruple when the loans “re-cast” themselves.

If you absolutely need to sell, do yourself a favor and set your price AGGRESSIVELY. No matter how nice your property is, it is hard to compete with properties being sold at 10% - 25% discounts unless you are VALUE-priced. Below is a graph to showing the AVG PRICE of available vs sold homes in Tampa Bay from OCT 07 – DEC 08…on average, the SOLD PRICE has decreased appr. $5700 PER MONTH!!! Essentially, you are paying “the market” $6000 a month to sell your property.

2009-01-12T09:36:00.003-05:00

COLDWELL BANKER PRESENTS:

"FIRST-TIME HOMEBUYER SEMINAR"

TUESDAY JANUARY 27, 2009 at 630p

1988 Gulf-to-Bay, Clearwater, FL (across from Clearwater HS)

Are you are a first-time homebuyer looking to make your first purchase?

Are you a current renter wondering if now is the time to buy?

Are you new to the area and trying to get your bearings in our market?

If you have answered YES to any of the questions above, then you are cordially invited to attend this INFORMATION-PACKED, 100% hassle-free, 100% no-cost Homebuying seminar which will cover homebuying from A-Z! If you don't know the answers to the following questions, I would highly recommend you attend this seminar and EDUCATE YOURSELF!

1) The maximum FHA loan amount is ____ %?

2) Seller's can contribute ____ % of the purchase price towards Buyer's closing costs and prepaid items?

3) What is the only entity offering 100% mortgage loans?

4) The gov't recently approved grants in the amount of $______ for first-time homebuyers.

5) Mortgage rates, as of last week, were the lowest since 19__, when rate trends were first reported on a weekly basis?

Email,call, or text me and I will save you a seat!

2009-01-05T10:43:00.003-05:00

Homeowners, it's time to take a hard look at what you are spending on utilities! Want to lower your costs and put more money in your pocket??? Here are a few ideas I have incorporated to make my home more energy-efficient (short of adding solar-panels).

1) HOME ENERGY AUDIT. Call Progress Energy RIGHT NOW to schedule your free home energy audit. It costs you NOTHING and take about 1 - 2 hours. At the conclusion, you'll get a report and a rebate for $$$ off new insulation.

2) INSULATION. If your home was built prior to the late 90's, chances are you have R-19 insulation OR LESS!! For less than a couple hundred dollars, you can get R-30 insulation blown in and then use the Progress Energy rebate to reduce that amount. Then, take the allowable deduction on your federal taxes! Just 2-3 months of savings on your power bill will pay for the cost of the insulation and then you're MAKING money!

3) Have your A/C system serviced. You wouldn't run your car without servicing it at some point during the year - why do that to your A/C. Have a pro check the pressures, measure the refrigerant level, and make sure your condensate line is clear of obstructions. You'll extend the life of the system.

4) Drain your water heater. Bet you didn't realize you could do that. If you live in Pinellas, chances are you will have sediment buildup in your water heater. There is a hose bib on the bottom with a valve. Drain the water until it runs clear at least once per year!

5) Turn down the temp on your water heater. Some water heaters are factory-set at 130+ degrees. Turn it down to 120 and you won't realize the difference, except in your bill. Also, install a timer to automatically turn it on and off during hi-use times. Why run a water heater 24 hours a day when you just need hot water for a couple of hours? You'll also extend the life of the water heater.

6) Turn up your refrigerator. The cool part should be appr 37 degrees and the freezer at 0 degrees.

7) Air leaks. Buy caulk and a caulking gun and check all your windows. Chances are you'll see some leaks. Also works well for keeping moisture out of the house.

8) Roof. If you're re-roofing, choose a lighter color OR even better, choose a metal roof. They reflect heat and have a longer life.

2008-12-26T10:14:00.002-05:00

The Housing Finance Authority of Pinellas County announces the return of its popular Making Pinellas Home down-payment program. The program will offer interest-free, deferred payment assistance to help qualified home buyers achieve the dream of home ownership.

Loans of up to $15,000 are available to households with incomes up to 80 percent of area median income. Loans can be used for a down payment and closing costs. The program is available anywhere in Pinellas County.

There are no payments for the first five years and no interest, ever. Homes must be priced at or below $240,158. For more information about the Making Pinellas Home program, or for referral to an approved lender, contact the Housing Finance Authority of Pinellas County at (727) 464-8210 or visit www.pinellascounty.org/ community/hfa.

2008-12-22T07:40:00.002-05:00

Merry Christmas to all...have a great week of fun and relaxation...maybe Santa will bring us some good news in 2009!

2008-12-14T21:22:00.003-05:00

November was bleak, as expected. Overall home & condo sales rates were about a point lower than October’s sales rates. Pending home sales ticked up (as reported by several media outlets) but many of those don’t make it to closing the next month (or at all!). Pricing is still homeseller’s strongest sales tactic – distressed properties in Tampa Bay sold at an AVERAGE PRICE 23% LOWER than non-distressed properties, which is very stiff competition.

Below is a 5 year lookback at our inventory in Tampa Bay – November’s inventory dipped below 38,000 units for sale for the 1st time in AT LEAST 2 YEARS! Our current rate of supply decay from Nov ‘07 to Nov ’08 is 10%...at current rates, barring any major increase in buyers or inventory, it would take 10 YEARS to get back to healthy, sustainable levels, i.e. 12,000 – 14,000 units! I think the turnaround will be quicker, but no sooner than 2010 until we see that “healthier” market.

Expect December to be as slow as November. I am experiencing more showing calls and also taking clients out more often. I also expect a mental shift in homebuyers in the 1st quarter of 2009 as 1) confidence in a new administration 2) low mtg rates 3) low prices and 4) increased job stability encourage homeowners to explore our market.

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

Total Units Available: 26,040 11,446 37,486

Total Units Pending: 1,789 523 2,312

Total Units Sold: 1,406 394 1,800

Absorption rate: 5.40% 3.44% 4.80%

Avg Days on Market 97 days 106 days 99 days

Months of Inventory 18.5 mons 29.1 mons 20.8 mons

Sold vs List Price % 93% 92% 93%

Sold vs Original List Price % 83% 83% 83%

PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 9,089 6,570 15,659

Total Units Pending: 576 270 846

Total Units Sold: 458 204 662

Absorption rate: 5.04% 3.11 % 4.23%

Avg Days on Market 96 days 120 days 103 days

Months of Inventory 19.8 mons 32.2 mons 23.7 mons

Sold vs List Price % 92% 91% 92%

Sold vs Original List Price % 84% 82% 83%

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

Total Units Available: 707 1800 2,507

Total Units Pending: 29 72 101

Total Units Sold: 27 48 75

Absorption rate: 3.82% 2.67% 2.99%

Avg Days on Market 91 days 120 days 110 days

Months of Inventory 26.2 mons 37.5 mons 33.4 mons

Sold vs List Price % 92% 90% 91%

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

2008-12-11T07:54:00.002-05:00

Good day! I apologize for the delayed entries - my 2 month old is keeping my wife and I busy!

It's hard not to get depressed about real estate these days - agents, brokers, oweners, and buyers who have trouble qualifying. Every segment has it's challenges, but there is a silver lining: AFFORDABILITY!

Homes have certainly become more affordable these days and, coupled with the low, low interest rates, it's a recipe for INCREASED HOMEOWNERSHIP - in the future, that is. Our economic recession and job losses will delay this increase, but like the tides, it will come.

Hillsborough County experienced just a slight 6% increase in home sale from Nov 07 to Nov 08. ONE THIRD (1/3) of all those sales were CASH!!! Average home prices dropped 27% over the same 1 year time frame, which greatly increases buying power.

The rub is that our supply of homes in the tri-county Tampa Bay area have decreased MINIMALLY...At one point, we were at 41,000 properties for sale - we are currently down to 37,000 and change. Look for a bottom when supply falls through 20,000 units...until then, it will be a "race to the bottom" for home sellers, as they compete with the HUGE tide of bank-owned foreclosures and distressed properties.

Hang in there, it will get better.

2008-11-17T11:15:00.003-05:00

Real estate continues to take a hit in the Tampa Bay area as we grapple with 3 times the normal amount of inventory and only 6 out of 100 available properties selling in the Tampa metro area.

The beaches, spurred by investors and "flippers", are still in sticker shock as only 3 out 100 available properties sold in October.

The global credit crises may be to blame for the lower than anticipated numbers, but in the end we are still in a supply vs. demand correction. Condos are doing only half as well are SFH, but both types of homeowners are seeing sales prices at appr 80% - 85% of the original sales price...

MLS MONTHLY REPORT October ‘08

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

Total Units Available: 26,431 11,677 38,108

Total Units Pending: 2,074 534 2,608

Total Units Sold: 1,671 446 2,117

Absorption rate: 6.32% 3.82% 5.56%

Avg Days on Market 95 days 107 days 97 days

Months of Inventory 15.8 mons 26.2 mons 18.0 mons

Sold vs List Price % 93% 90% 93%

Sold vs Original List Price % 84% 82% 84%

PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 9,253 6,672 15,925

Total Units Pending: 627 239 866

Total Units Sold: 547 227 774

Absorption rate: 5.91% 3.40 % 4.86%

Avg Days on Market 88 days 110 days 95 days

Months of Inventory 16.9 mons 29.4 mons 20.6 mons

Sold vs List Price % 92% 89% 91%

Sold vs Original List Price % 85% 81% 84%

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

Total Units Available: 700 1785 2,485

Total Units Pending: 26 57 83

Total Units Sold: 20 48 68

Absorption rate: 2.86% 2.69% 2.74%

Avg Days on Market 104 days 125 days 118 days

Months of Inventory 35.0 mons 37.2 mons 29.9 mons

Sold vs List Price % 90% 87% 88%

Sold vs Original List Price % 83% 79% 80%

2008-11-17T11:08:00.003-05:00

THE FOLLOWING CONCERNS ALL HOMEOWNERS AND POTENTIAL HOMEBUYERS IN FLORIDA AND TAMPA BAY!

This was an excellent article in the St. Pete Times. I have been telling my clients this for a while now as it relates to private appraisals for the purchase/sale of a property...appraisers have long ignored a foreclosure sale as a comp, but how can you if the last 3 sales of comparable homes were all bank-owned foreclosure re-sales??? You can't...this change will be bittersweet:

1) Home values will dip even more
2) Homes will continue to become more affordable
3) On average, taxes should go DOWN as a result of the lower values

http://www.tampabay.com/news/localgovernment/article902726.ece

Foreclosures may alter home values
By Will Van Sant, Times Staff Writer
In print: Friday, November 14, 2008

In a sign of how the real estate market has imploded, property appraisers plan to figure in foreclosure sales when they value homes next year.

State Department of Revenue rules advise county property appraisers to ignore foreclosures and other types of "distressed" sales in favor of arms-length deals between willing buyers and sellers.

The belief is that such open market sales are truer indicators of home values. But that's only the case when foreclosure sales are relatively rare, not rampant like they are now, property appraisers are saying.

"The number of foreclosure sales we are dealing with now is so much greater than I have ever seen that I believe they have become part of the market," said Pam Dubov, Pinellas County's property appraiser-elect.

Warren Weathers, Hillsborough County's chief deputy appraiser, said that Dubov is right and that his office also will look at how to gauge the effect of foreclosure sales on values. In Pasco County, Appraiser Mike Wells has already done so for this year's tax roll.

"Some of the Department of Revenue rules are for a normal market," Weathers said, "and this is not a normal market."

Dubov and Weathers have yet to come up with a method for weighing how the inclusion of foreclosure sales will effect homeowners' property tax bills.

It's complex and uncharted territory, they said. Next week, appraisers from across Florida are meeting in St. Petersburg, and Dubov said she plans to raise the issue.

"We have to do some gaming of this and see what it looks like," she said. "I just know we can't do business as usual."

But both she and Weathers agree one likely result is that homeowners in areas with lots of foreclosure sales whose homes are assessed near market value will see their property tax bills drop next year, assuming governments don't raise tax rates.

In Pasco, Property Appraiser Wells said that in the spring he told his staff to consider foreclosure sales when developing the current tax roll. Wells said he did so after talking with his staff, his attorney and few others. He has yet to hear complaints from the state, or from homeowners who saw their tax bills dip.

"I believe it allowed me to come up with a fairer picture of the market, and what is going on out there," Wells said.

Jim Overton, Duval County property appraiser and president of the Florida Association of Property Appraisers, said he was unaware of Wells' move but isn't surprised others are eager to follow. The issue was discussed recently among appraisers at the national level, he said, and will be taken up by his association in coming months.

According to Dubov, Gov. Charlie Crist's office has asked the Department of Revenue for a review of the matter. Other than to say two or three appraisers have been in contact about the issue, the department declined to discuss what Dubov, Weathers and others plan.

Hernando County Property Appraiser Alvin Mazourek said he also was considering how to incorporate distressed sales into next year's values.

Though some homeowners may see their tax burden lift a bit, the decision by property appraisers to include foreclosure sales in their market analysis could reduce the amount of revenue going to already strapped local governments.

Incoming Pinellas administrator Bob LaSala said that in such a precarious economy it makes sense for appraisers to innovate and change their practices, even if it makes his job tougher.

"I wouldn't begrudge the homeowner who is struggling with a tax bill a solution that might make sense in this broader picture just because I've got constraints as well," LaSala said.

Florida is second only to California in the number of struggling borrowers who have lost their homes to lenders. In Tampa Bay area counties last month, 26 percent of real estate deals involved banks selling off properties reclaimed through foreclosure. Another 9 percent were "short sales," where borrowers behind on mortgages settle with lenders for less than what's owed.

That means in October more than one in three deals were distressed. The figure in September was 28 percent.

By comparison, in September 2007, 6 percent of sales were distressed; in September 2006, just 1 percent.

Peter K. Murphy, a real estate consultant with Home Encounter in Ybor City who provided the data on distressed deals, said that last month banks were selling foreclosed homes for 60 percent of market value.

Will Van Sant can be reached at vansant@sptimes.com or (727) 445-4166.

2008-11-10T15:47:00.001-05:00

Now here is some real help for our real estate market...

OCT 29, 2008 - Realogy Corporation, a global provider of real estate and relocation services, today announced that the Company has approached the U.S. Department of Treasury with a practical solution to help stimulate the housing market and lead to a broader economic recovery. The Company also conducted separate national surveys with its real estate franchisees and U.S. homeowners, the results of which underscore the rationale behind its proposal.

“There are millions of credit-worthy people ready to jump back into the housing market, but they need to be motivated,” said Realogy President and CEO Richard A. Smith. “In our view, the incentive of substantially lower mortgage rates would directly stimulate the housing market — both in sales volume and price — and thus accelerate the overall U.S. economic recovery.”

Realogy’s proposal calls for a short-term government buy-down of mortgage rates to at
least 4.5%, or lower, for a 30-year fixed rate mortgage (down from current rates of
approximately 6.04%1). This homebuyer incentive would apply to the purchase of all new and/or existing homes sold up to $1 million in price. There are a number of ways in which the government ultimately could decide to structure and fund this program, which could be addressed as part of the stimulus packages currently being discussed in Washington.

Realogy is working with a number of other organizations to carry this message forward and encourage greater dialogue around solutions aimed at boosting the economy through a direct stimulus to the housing market.

2008-10-21T13:39:00.003-04:00

The numbers are in and they're NOT, I repeat NOT as dreary as expected, given the turmoil in our markets. October may be worse...only time can tell. Simply put, only 6% of all homes in the Tampa Bay area sold, and if they did sell, it was at 84% of the original listing price!

TAMPA BAY AREA (tri-county) Homes Condos Total Units
Total Units Available: 26,462 11,639 38,101

Total Units Pending: 2,259 574 2,833

Total Units Sold: 1,791 463 2,254

Absorption rate: 6.76% 3.98% 5.92%

Avg Days on Market 103 days112 days 105 days

Months of Inventory 14.8 mons25.1 mons 16.9 mons

Sold vs List Price % 93% 93% 93%

Sold vs Original List Price % 84% 85% 84%

PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 9,066 6,638 15,704

Total Units Pending: 737 298 1,035

Total Units Sold: 565 229 794

Absorption rate: 6.23% 3.45% 5.06%

Avg Days on Market 92 days 113 days 98 days

Months of Inventory 16.0 mons 29.0 mons 19.8 mons

Sold vs List Price % 90% 92% 91%

Sold vs Original List Price % 82% 85% 83%

N. BEACHES (476-478, 374, 375) Homes Condos Total Units
Total Units Available: 227 862 1,089

Total Units Pending: 15 37 52

Total Units Sold: 10 28 38

Absorption rate: 4.41% 3.25% 3.49%

Avg Days on Market 148 days 116 days 124 days

Months of Inventory 22.7 mons 30.8 mons 28.7 mons

Sold vs List Price % 82% 92% 88%

Sold vs Original List Price % 74% 88% 82%

2008-10-06T10:25:00.003-04:00

I was recently contacted by a homeowner in a condo complex in Florida with a question that is probably all to common...

"If I feel that the Monthly Maintenance Fee is too high (based on what it was when I moved in and the minimal Common Area assets we maintain) and if I only continue to pay the old MMF amount, what will happen?"

Speaking generally, we must assume that these annual increases are calculated correctly and applied per the condo bylaws and rules. If not, that's a whole 'nother story!

In my experience, a homeowner in a condo community is obligated to pay the full assessment as approved by the Board of Directors, even if they disagree. Should one only pay a partial amount (for example the old MMF amount), the difference will become a late payment and/or deficient amount. At that point, any future MMF payment would first be credited to the late amount and then applied to the current month. As you see, after 6 months, this could be a large deficit.

PLEASE understand: an association, at least in Florida, can and will foreclose on an owner for late fees owed and take possession of the property!

Consider the following story:

By MICHAEL SASSO The Tampa Tribune

Published: June 2, 2008

NEW PORT RICHEY, FL - Tired of the nagging letters from your neighborhood homeowners association, the threats of liens on your home?

Before you ignore the homeowners association, consider the fate of Gregory Green.

More than three years ago, Green's body seemed to be falling apart. Overweight, he suffered two blood clots in his lung, then he needed surgery for a back injury, then he was diagnosed with diabetes. On his doctor's advice, he left his job at an Alzheimer's care center in Tampa and began collecting disability benefits, which were about half his previous salary and put a strain on his family's finances, Green says.

By 2005, the family of five had fallen behind on dues to the homeowners association of The Glen at River Ridge, which represents about 150 homes in a west Pasco County subdivision.

The result: In September, the homeowners association foreclosed on the house for owing $580.

"These are neighbors," Green said of the board of directors of the homeowners association. "Neighbors are supposed to be compassionate."

The Greens' story isn't the norm for homeowners association disputes, but foreclosures that end with the sale of a debtor's home have become surprisingly common in the Bay area and throughout Pasco County, Florida, according to two lawyers who represent hundreds of homeowners and condo associations between them, Bob Tankel of Dunedin and Ron Cotterill of Tampa. Tankel estimates such cases have increased tenfold in the past four years, based on his firm's caseload.

In many situations, homeowners are losing their properties over a few hundred dollars in delinquent homeowners assessments....

I am not a lawyer nor does Florida State law allow me to dispense legal advice. That said, individual unit homeowners do have the ability to review the annual budget and see where the dollars are going. Owners also have the opportunity to speak to the Board of Directors and voice opposition to the raise in fees. Despite what others may say, unit owners also have a right to all Association financial data such as YTD budgets and balance sheets.

The ultimate option is to sell your stake in the complex, ie your unit.

Before you do that, I will venture that if you were to sit down with Board members and discuss finances, they wil tell you that operating expenses have exploded and many complexes built in the 70's and 80's are finding they must complete substantial repairs to maintain Association assets simply based on age. While it is disagreeable, in most cases I assume it's justified, as the Board members are obligated to pay the fees themselves.

2008-09-29T16:54:00.003-04:00

***CONDO OWNER ALERT***

Since 2004, Florida's Condominium Act has required unit owners to maintain hazard insurance on their units - separate and above the hazard insurance on the common areas paid for by the condo association. It became apparent after the 2004 hurricane season, though, that the law wasn't being enforced when individual condos ravaged by Hurricanes Charlie and Jeanne weren't repaired or rebuilt because the unit owners lacked insurance. HB 601 provides condo associations a way to enforce THESE insurance standards by requiring unit owners to provide proof of insurance every year. If a unit owner fails to provide a certificate of insurance, the association may purchase insurance on the owner's behalf and assess the unit owner for the cost of the insurance.

Unit Owner Insurance: This bill also provides that as to individual unit owner policies, effective January 1, 2009, such policies must: (1) contain a provision stating that the coverage is excess coverage; and (2) include special assessment coverage of not less than $2,000 per occurrence. Individual unit owner policies may not provide rights of subrogation against the association. All improvements or additions to the condominium property that benefit fewer than all of the unit owners shall be insured by the unit owners that benefit from such property, or may be insured by the association at the expense of the unit owners who have the use thereof. Condominium property consisting of free-standing buildings may be insured by the unit owners if the declaration so provides.

2008-09-19T08:23:00.002-04:00

Well, what a difference a week makes...bank failures...institutional brokerages running around like chicken little...gov't bailing out these institutions to the tune of BILLIONS of dollars...hmmm, this sounds eerily familiar. A credo I have adopted in light of our current political situation is "those who do not know history are condemned to repeat it".

This subprime crisis and the resulting gov't rescue is is literally a page out of the 80's and early 90's...the debacle known as the S & L crisis. Here's a quick summary of what happened then (notice the parallels) courtesy of Wikipedia:

"The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S&L crisis) was the failure of 747 savings and loan associations (S&Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around USD$160.1 billion, about $124.6 billion of which was directly paid for by the U.S. government—that is, the U.S. taxpayer, either directly or through charges on their savings and loan accounts—which contributed to the large budget deficits of the early 1990s. The resulting taxpayer bailout ended up being even larger than it would have been because moral hazard and adverse selection incentives compounded the system’s losses.
The concomitant slowdown in the finance industry and the real estate market may have been a contributing cause of the 1990-1991 economic recession. Between 1986 and 1991, the number of new homes constructed per year dropped from 1.8 million to 1 million, the lowest rate since World War II."

How is this going to play out...initial reports suggest the creation of a RTC-type entity to spin off the bad debt and assets, which will, in the end, cost US - the taxpayers!

This may affect our long-term real estate outlook - i am expecting some add'l stabilization sooner than what we are currently forecasting...stay tuned...it will only get more interesting.

2008-09-09T08:41:00.003-04:00

Hurricane Ike may be hundreds of miles away, but local homebuyers have still been stung by it's effects - Insurance underwriting was shutdown yesterday at 11a and as of 845a Tuesday morning, Florida is still on a resticted underwriting status. See below:

"No application for new, or endorsement for increased coverage may be bound, written, or issued, or monies received, regardless of effective date, when a Tropical Storm or Hurricane Watch or Warning has been issued by the National Weather Service for any part of the State of Florida. "

We are under storm restrictions.

Storm Name Start of RestrictionDate and Time End of RestrictionDate and Time

Hurricane Ike 09/07/2008 11:00 AM EST

Hurricane Gustav 08/29/2008 5:00 PM EDT 09/01/2008 11:00 AM EDT

Tropical Storm Fay 08/17/2008 5:00 AM EDT 08/23/2008 11:00 PM EDT

For Tropical Storm Advisories and Information visit the National Hurricane Center.

2008-09-03T15:05:00.002-04:00

FLORIDA'S LANDLORD/TENANT LAW

Questions concerning landlord/tenant rights are one of the top inquiries I receive. Most people living in leased apartments and other rental housing know there are laws dealing with landlord/tenant relationships, but they often don't find out the details until there is a problem.

The following landlord/tenant information is provided to answer many of the questions frequently asked regarding landlord/tenant rental relationships, according to Florida's Landlord/Tenant Law (Chapter 83, Part II).

BEFORE YOU RENT*

When searching for a rental dwelling, be careful when leaving a deposit to hold an apartment for a short period of time in order to shop around for other possible dwellings. If the property manager says the deposit will be returned whether you decide to rent the apartment or not, always get that verbal promise in writing.*

Make sure you have reviewed your rights and obligations as a tenant and the rights and obligations of the landlord, according to Florida's Landlord/Tenant Law (Statute 83, Part II). Just google it.
Although Florida law does not require a written lease, you should request a written lease that clearly states all the terms. Oral leases are subject to misunderstandings and are more difficult to enforce.*
If there is no written lease, the span of your rental payment (weekly, monthly, etc.) determines the length of the agreement.*
Before signing a rental agreement make sure you understand the terms of the contract. If you don't understand, don't sign the lease! There is NO required grace period for canceling leases, so if you sign, you are bound to the agreement.*
Before signing a rental agreement always conduct a preliminary walk-through in the actual premises you intend to rent in order to identify any problems that should be fixed before you rent. Verbal promises made by the landlord to fix the identified problems should be included or attached as a written agreement to the lease and signed by the landlord.*
A damage deposit (security deposit) is one of the most common requirements of landlords. At the time of your pre-rental walk-through with the landlord, you should make note of damaged items or areas, worn rugs, broken fixtures, etc., and give a copy to the landlord. Keep a copy for your files. This may eliminate or minimize disputes later. If you can't do the walk-through before signing the lease, complete one immediately after signing the lease.
Know the difference between a Security Deposit and an Administrative Fee or Processing Fee. Florida Statute Chapter 83 provides for the return of security deposits whereas administrave fees and processing fees are not the same as deposits and are generally not refundable.

THE LANDLORD'S RESPONSIBILITIES*

Florida Statutes, Section 83.51, require a landlord to comply with the requirements of applicable building, housing and health codes. This means:

1. The roof must not leak.
2. The walls must be weather-tight and in good repair.
3. The stairs must be safe for normal use and maintained in good repair.
4. Windows and doors must be weather-tight, water-tight, rodent-proof and kept in sound working condition. Outside doors have to have proper locks.
5. Window panes cannot have cracks and holes. Outside windows must have screens.
6. Inside floors, walls, ceilings must be basically rodent-proof and kept in sound condition and good repair and should be safe.
7. The house or apartment must have hot water that is connected to the kitchen and bathroom sinks, tub or shower.
8. All houses or apartments must have a flushin toilet in good working condition.
9. When cooking and heating equipment are provided by the landlord, they must be safely installed and in good working order.
10. There must be adequate garbage disposal facilities or garbage storage containers.
11. Every habitable room must have at least two separate floor or wall electric outlets and, additionally, every kitchen, bedroom, bathroom and hallway must have a ceiling or wall-type fixture, or an outlet controlled by a wall switch near the entrance to the room.
12. All electrical systems must be in good repair and good working order.

IF THE LANDLORD DOES NOT COMPLY* If your landlord has failed to comply with the previous listed code responsibilities and has ignored your request to undo their unlawful action, contact the appropriate City housing office. * If your landlord fails to do what the law or lease requires, you may be able to withhold a portion of your monthly rent until the property is brought into compliance. You must give written notice to the landlord of your intention to withhold rent and give the landlord time to make repairs in accordance with the procedures as set forth in Florida Statute Chapter 83, Sec. 83.56 (1)(a) or (1)(b). You must allow at least seven days for repairs and your written notice must give detailed information on the items that need to be repaired.

2008-08-19T15:30:00.001-04:00

July’s sales data is very similar to June’s…here are some highlights:

Across all segments, SFH sales are doing much better than condo sales.
Roughly 6.20% of all homes for sale in the tri-county Tampa Bay area sold in July. Simply put, it’s appr 6 out of every 100 properties.
Beach home sales rebounded from their low sales in June to “regular” sales volume in July.
Beach condos are selling (on average) at 79% of original list price!

MLS MONTHLY REPORT JULY ‘08

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

Total Units Available: 26,748 11,918 38,666

Total Units Pending: 2,285 619 2,904

Total Units Sold: 1,885 513 2,398

Absorption rate: 7.05% 4.30% 6.20%

Avg Days on Market 99 days 125 days 104 days

Months of Inventory 14.2 mons 23.2 mons 16.1 mons

Sold vs List Price % 94% 93% 93%

Sold vs Original List Price % 86% 84% 85%

PINELLAS COUNTY Homes Condos Total Units

Total Units Available: 9,163 6,864 16,027

Total Units Pending: 683 328 1,011

Total Units Sold: 574 280 854

Absorption rate: 6.26% 4.08% 5.33%

Avg Days on Market 96 days 143 days 111 days

Months of Inventory 16.0 mons 24.5 mons 18.8 mons

Sold vs List Price % 92% 92% 92%

Sold vs Original List Price % 85% 82% 84%

N. BEACHES (476-478, 374, 375) Homes Condos Total Units

Total Units Available: 246 920 1,166

Total Units Pending: 12 38 50

Total Units Sold: 14 37 51

Absorption rate: 5.69% 4.02% 4.37%

Avg Days on Market 98 days 180 days 158 days

Months of Inventory 17.6 mons 24.9 mons 22.9 mons

Sold vs List Price % 90% 91% 91%

Sold vs Original List Price % 86% 79% 82%

2008-08-05T08:20:00.002-04:00

Here are some quick "tidbits" for you:

The First-Time Home Buyer Tax Credit was just signed into law and it may be confusing for some to understand. The "credit" is actually a NO-INTEREST loan that will be repaid over a period of 15 years (read the fine print). It's a great deal, don't get me wrong, but it's not FREE MONEY ;-( To qualify, a buyers' date of first occupancy must be on or after April 9, 2008 and before July 1, 2009. Visit www.federalhousingtaxcredit.com for more info.
If you have a Citizen's Wind Insurance policy, you may need a new roof w/i the next 6 months. An article in the St. Petersburg Times describes a homeowner with a shingle roof more than 25 years old AND/OR any type of roof more than 50 years old (i.e. concrete tile) may have their policy non-renewed when it expires. Call your insurance agent with any questions.
Hundreds of foreclosed homes will be auctioned off in Tampa on August 13, 2008 and other parts of the state thereafter. Sponsored by Hudson and Marshall, (www.hudsonandmarshall.com), this aution may be a chance for investors to get in on a property with instant equity. If you go, make sure you register and bring the required downpayment in certfied funds (normally 5%-10%). The balance of funds are normally due within 30 days.

2008-07-28T09:08:00.002-04:00

It's all things education this week...Pinellas County schools start August 19, 2008, which is closer than it seems - only 3 weeks away!

Pinellas County also had no schools that received an "F" this past year - and only 7 of the total 125 schools received a "D". In total, approximately 75% of Pinellas County schools received an "A" or "B".

Locally, Pinellas County has moved away from the old "School Choice" format of assigning schools to the "Closer-to-Home" method based on geography and population. THIS IS EXTREMELY IMPORTANT WHEN FAMILIES ARE DECIDING WHERE TO BUY IN PINELLAS COUNTY!

For detailed information on the methods and standards to which schools are assigned/requested, pleae visit http://www.pcsb.org/choice/files/StudentAsssignmentPlan_12_19_07.pdf. This information is too in-depth and detailed to explore in this blog. Suffice to say, schools are assigned on a capacity and geographical basis but there is still an option of "applying" for a different school for various reasons.

The change has to do with the complicated process of the previous 8 years that including applying for 3 different schools and hoping and praying your child was assigned to one of them (preferably the first choice). The end result was disappointment and frustration as some children would be bussed miles to a school farther away than a neighborhood school. District financial pressures also necessitated this change, as "closer-to-home" schools = less bussing requirements. As a soon-to-be-parent, I am in favor of this new assignment plan (i.e. I have not heard of any negatives associated with it).

To see these new assignment maps, go to:

Elem. school map: http://www.pcsb.org/choice/files/08-9%20StuAsgntEL.pdf
Middle school map: http://www.pcsb.org/choice/files/08-9%20StuAsgntMS.pdf
High school map: http://www.pcsb.org/choice/files/08-9%20StuAsgntHS.pdf

2008-07-24T08:15:00.000-04:00

http://www2.tbo.com/content/2008/jul/23/pool-builder-unfinished-projects-files-bankruptcy/

Pool Builder With Unfinished Projects Files For Bankruptcy

By MARK DOUGLAS
News Channel 8
Published: July 23, 2008

Customers Left High And Dry

For a handful of homeowners in Pasco and Hillsborough counties who dreamed of floating in their new pools by now, it's going to be a long, hot summer.

As many as a dozen customers of Tampa-based Capital Pools & Spas Inc. now have to look elsewhere for someone to finish backyard pool construction -- that began as long ago as November -- because the company suddenly closed its doors.

Tampa homeowner Kenny Patel says his two children have been waiting months to make a splash in the pool. "How do I tell my boys?" He asked while looking at tadpoles swimming in the stagnant brown water at the bottom of his unfinished pool. "You can't explain to a 4-year-old."
State records indicate Greg Luce has operated Capital Pools since he took it over from the former owners in 2005.

Luce says he is out of business, out of money and heading for bankruptcy court. "I feel very, very bad for these people, but I basically lost everything, literally everything, Luce said.
Subcontractors such as Largo-based Rush Concrete Inc. first sensed trouble in April when they began sending homeowners letters threatening liens because Capital Pools wasn't paying its bills.

Tampa homeowner Henry Alvarez says he already has paid Luce for his unfinished pool but has received a number of such letters. "I'm getting letters, liens, notice to owners from the shell, the concrete people, the paver people, the electrical people that he [Luce] still owes, Alvarez said.
A Target Eight investigation has uncovered customers in Pasco and Hillsborough counties who say they paid Capital Pools as much as $55,000 for pool construction that is incomplete or never got started.

Karen Taylor says she paid Capital Pools a $2,920 deposit on May 27, but the company never broke ground. She said Luce recently assured her pool construction should begin soon. "He said he was moving offices and I jokingly said, 'You're not going out of business are you?' and he said, 'Of course not, I wouldn't start your project if we were going out of business.' "

Taylor said days after that conversation she found out Luce closed his Linebaugh Avenue offices without leaving a forwarding address.

Luce concedes he still owes his former landlord two months back rent and said he is too embarrassed to return calls from customers that are filling up his voice mail.

Former Pasco and Hillsborough customers are now scrambling to find other ways to finish their pools and deal with unpaid subcontractors.

One homeowner has filed a complaint with consumer authorities and a number of others are in the process of filing complaints with the Florida Department of Business and Professional Regulations, the state agency that licenses Luce as a pool contractor.

Luce said he's working with subcontractors to finish the pools but that won't happen with any money from him.

Luce tells Target Eight he apologizes to everyone he's hurt by shutting down with so many unfinished projects, but has no resources left to finish the pools, pay subcontractors, or offer refunds to his customers. "I have nothing, absolutely nothing," Luce said. "I don't even have a job right now."

2008-07-21T11:15:00.001-04:00

DO NOT DO BUSINESS WITH STEVE'S EXPERT TREE TRIMMING!

I am the first person to recommend a great vendor for all different kinds of home services, such as lawn-mowing, painting, roofing, etc. I have never had such a BAD experience that I have publicly declared that others should exercise EXTREME CAUTION when employing a certain vendor. But that's about to change. (PS...this is not libel as I am recounting my firsthand experience with this vendor)

I solicited a bid from STEVE'S EXPERT TREE TRIMMING for a rental property I manage. Steve Luttman, the proprietor, gave me a competitive quote which we signed off on. Despite the fact he kept calling me to start the job EVEN though I told him I would call him, I continued forward with our agreement. At one point, he started work without my authorization, at which time I promptly asked him to cease and desist. He did, but not before making a massive pile in the front yard. I felt he was trying to force my hand, which I did not appreciate.

When I gave him the green light, they started immediately (good) but delayed their return to finish the job for 5 days (bad). He asked for 50% halfway through the job, which was ok by me. After completing the full cut but before he took the 1st load to the dump, he asked for the balance. Stupid me should have gave him half of the remaining balance, but I made the regretful mistake of paying him in full, trusting that he was an ethical businessman who would not want to sour a future relationship. Plus, he only had 1 more load to take to the dump.Long story short, he never returned for that 1 load.

I had new tenants wondering why there was a heap of debris in their yard, neighbors were giving me dirty looks (I deserved it!), and I ultimately had to haul the rest to the Tarpon Springs dump at a cost of $50 + the 4 hours of my day. He never returned any of my phone calls, but that's what happens when 1 person screws another.

I ABSOLUTELY RECOMMEND STAYING AWAY FROM THIS LYING, UNETHICAL TREE TRIMMER. You will save yourself time, money, grief, and aggravation!!!

2008-07-14T11:44:00.000-04:00

This just in from RISMedia.com, a great real estate news source!

RISMEDIA, July 14, 2008-Amidst the gloom on Wall Street about housing someone forgot to check the stats. The National Association of Realtors® has now reported four straight months of rising housing prices, but it seems no one is listening.

According to NAR statistics, the median home price has fallen from a high of $230,200 in July 2006 to a low in February 2008 at $195,600, a drop of 15%. Since February, however, it has risen steadily every month. By May the index (which will be revised on July 24) had risen to $208,600, up $13,000 and a full 6.6%. Another indicator, the mean home price (otherwise known as the average home price), has also shown strength and has risen from a low of $242,000 also in February of this year to $253,100, a rise of $11,100 or 4.5%. It, too, has risen every month since February of this year.

“I just don’t know where Wall Street’s brains are today,” said David Michonski, CEO of Coldwell Banker Hunt Kennedy in New York City. “Everyone on the Street is wringing their hands over housing when in fact the average American has been out this spring buying homes and pushing the median price higher. This has got to go down as one of Wall Street and Main Street’s biggest disconnects in history.”

In addition, on an annualized basis the volume of home sales has also risen somewhat from a low of 4,890,000 homes in January to 4,990,000 in May.

“Rising prices on expanding volume should not a crisis make on Wall Street,” says Michonski.
So why the crisis?

“They say that there are bulls and bears on Wall Street but there are also pigs. Pigs try not just to profit from a crisis but create one to profit from. Today there are just so many people who have positioned themselves to profit from a crisis that they refuse to admit the reality of what is happening on Main Street. It might hurt their positions.”

Is this the bottom?

“No one can know for sure, but the hard data is clear. The median price has risen four straight months. The average American is out there taking advantage of bargains in their local real estate market. They are not listening to Wall Street but following their own belief that the best time to buy is when no one else is, and they are out there buying. If this keeps up, February may prove to have been the low in prices.”

“It is possible that it will not be Hank Paulson or Ben Bernanke who will pull this country out of a housing recession, but the good common sense of the average American whose affordability to buy a home is at a five year high and is acting on it.”

2008-07-07T13:45:00.003-04:00

I get questioned all the time As for our local real estate market, all the economists are now pushing the expected recovery from late '08 to '09...something I can easily do.

The rates are slowly creeping up (I have heard it will be around 7% start of '09 due to inflationary pressures). Our problem is sky-high SUPPLY and constant low demand. Some economists have predicted that demand will increase when the supply of available NEW homes diminshes...

I have read recently that NEW HOME STARTS are at a 16-18 year LOW, which leads me to believe we are exhausting (slowly) the supply of new homes.

Right now appr 6.2% of available homes in the Tampa Bay area are selling each month. It would take appr 16 - 17 months to deplete the inventory (given no more homes go up for sale). A traditionally healthy market will have a 3 - 6 month supply of homes, so you can see how far we have to go.

Honestly, with the economy experiencing recessionary effects, our high inventory, and the vast number of current and future foreclosures, I don't expect a "bottom" (whatever that may be)until late 2009 and a stabilization in 2010.

That said, there are many GREAT deals...I have noticed the bank-owned properties are carrying the most equity fro new buyers at closing.

Below is a 4 yr "look-back" home supply graph of the tri-county Tampa Bay area...remember, stay educated and these market surprises will become less "surprise" and more "expected".