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

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

Seller-paid closing costs:

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

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

One word: perception.

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

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

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

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

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

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

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

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.

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.

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

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):

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.

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.

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!

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.

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!

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.

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.

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

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%

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.

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%

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.

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.