If you want to get a great deal on a home, you must buy from a motivated seller. How do you find a motivated seller? Often, sellers that are going through a job relocation, a divorce, or some other life change are motivated. These sellers are likely to give away equity. And unlike a foreclosure, you get a property disclosure which will give you a history of any home repairs. Also, the seller warrants their statements about the condition of the property. These properties are often in better condition than a foreclosure because the sellers are keeping the properties in “marketing” condition. Your Realtor can help you locate motivated sellers and distressed properties.
Homes that are in the process of selling before foreclosure are often sold as “short sales”. A “Short sale” means that the bank or lender accepts less than the current mortgage balance for the property. Usually, before a lender will agree to a short sale, the seller must be in default (that is they must be behind in their payments, or have stopped making payments altogether.) In these situations, the seller is said to be “over-encumbered” and owing more than the home is worth. A short sale might bring the price in line with market value, but not below market value.
Speed is not a virtue of a mortgage company when they are dealing with short sales. These days, the bank mortgage representative has a stack of files with home sellers that are in the same situation. They are in no hurry to give you an answer as your contract is not on top of the pile. If you are patient, a purchase of a short sale can put you in a positive equity position but don’t make an offer on a short sale property if you need to move into a home quickly.
I have bought and sold many investment properties. My motto is “good deals do not come perfect”. You may not get the perfect floor plan. You may have to paint the interior. You will have to fix things and you will need to clean the carpet and chemically treat the “green” swimming pool. In the end, you will come out with a beautiful home and a strong equity position. This is the typical condition of a pre-foreclosure or newly foreclosured home. Neither the owner nor the bank wants to put money into a property that they are taking a loss on. It is on this type of home where you can get the strongest equity position.
When you buy the reduced price home for your primary residence, you will be able to make improvements and get a return on your hard work. Remember, the tax rules are now written that if a home is your primary home, in most cases, profit when you sell is not taxable. To maximize your profit, buy with the intent to stay in the home for a minimum of 3 to 5 years. This will allow time for the market to improve and for your investment to increase in value.
If buying homes that need work does not appeal to you, in our current market new home builders and sellers of existing homes are giving some wonderful deals. Many are paying all closing costs, and making changes to the home as requested by the buyers. To get a good deal, it is wise to buy when others do not want to. This is the kind of market where you will have them greatest power.
Monday, November 12, 2007
Friday, October 5, 2007
What happened to expected property insurance reductions
According to an article in the WCTV Tallahassee Headlines, only about half of the insurance companies doing business in Florida have complied with a new rate filing law to date. Insurers are supposed to pass property insurance savings on to consumers from the state's assumption of $15 billion in risk. So far, the results are mixed at best.
“We’ve seen some increases and we’ve seen some decreases ... on their original filings from March,” said an Office of Insurance Regulation spokesman.
The most upsetting has been the request by Allstate Insurance for an average 42% hike with another 28% hike for a subsidiary. These filings come at the same time the state has issued subpoenas to insurance companies to find out why rates have not decreased as expected.
When asked about the insurance company filings to date, Gov. Crist said it looks like a violation of law when they ask for increases and don’t pass on the saving they’re supposed to under the reforms the legislature put through in the special session.
The good news for policy holders is that any property insurance rate increases won't take effect until they are approved and the governor says that it is doubtful.
Some of these rate increase requests are being driven by insurance ratings services who are also under investigation for possible collusion in insurance rate setting.
Need information about Tampa Bay real estate, call upon Cheryl Stimac of Red Shoe Realty.
“We’ve seen some increases and we’ve seen some decreases ... on their original filings from March,” said an Office of Insurance Regulation spokesman.
The most upsetting has been the request by Allstate Insurance for an average 42% hike with another 28% hike for a subsidiary. These filings come at the same time the state has issued subpoenas to insurance companies to find out why rates have not decreased as expected.
When asked about the insurance company filings to date, Gov. Crist said it looks like a violation of law when they ask for increases and don’t pass on the saving they’re supposed to under the reforms the legislature put through in the special session.
The good news for policy holders is that any property insurance rate increases won't take effect until they are approved and the governor says that it is doubtful.
Some of these rate increase requests are being driven by insurance ratings services who are also under investigation for possible collusion in insurance rate setting.
Need information about Tampa Bay real estate, call upon Cheryl Stimac of Red Shoe Realty.
Sunday, September 30, 2007
Florida foreclosures will impact home sales for a long time
September is the month when we usually enter a seasonally slow real estate market and it normally continues until about January of next year., August numbers show that foreclosure activity rose by 77% over the month of July. We expect continued record increases in the foreclosure rate in October. In total almost 34,000 foreclosures were filed in Florida, or one in every 243 households filed for foreclosure. While some so-called experts predict that the Florida real estate market will recover by the end of 2008, each new monthly report shows we are not on the path to recovery.. certainly at least not yet.
Reports also show that, based upon the number of home buyers that took out adjustable interest rate loans back in 2004 to 2006, many of whom are bow nowing into foreclosure, more and more home buyers will face financial difficulty and be forced into foreclosure. I believe this adjustable rate mortgage crisis will keeping forcing homes into foreclosure for many many months to come, maybe even for a few years. We could be looking at as much as four more years of declining Sarasota home prices, not just one year.
Buyers can get it great deal on a house right now but one ought to understand what is involved. Foreclosure real estate isn't usually that cozy little home in perfect shape you may envision. Read my article on buying foreclosure real estate to get an appreciation of what is involved..
If you find yourself needing to buy or sell real estate anywhere in Tampa Bay or Hillsbough County, Florida, call upon me. I'd be happy to help.
Reports also show that, based upon the number of home buyers that took out adjustable interest rate loans back in 2004 to 2006, many of whom are bow nowing into foreclosure, more and more home buyers will face financial difficulty and be forced into foreclosure. I believe this adjustable rate mortgage crisis will keeping forcing homes into foreclosure for many many months to come, maybe even for a few years. We could be looking at as much as four more years of declining Sarasota home prices, not just one year.
Buyers can get it great deal on a house right now but one ought to understand what is involved. Foreclosure real estate isn't usually that cozy little home in perfect shape you may envision. Read my article on buying foreclosure real estate to get an appreciation of what is involved..
If you find yourself needing to buy or sell real estate anywhere in Tampa Bay or Hillsbough County, Florida, call upon me. I'd be happy to help.
Tuesday, September 18, 2007
New Hillsborough County Tax Exemption Calculator
The Hillsborough County Property Appraiser’s website has a great tool that homeowner’s can use to gauge the benefits (or lack thereof) of the so-called Super Exemption that will be on the ballot come next January.
Should the Super Exemption get the required 60% of the voter’s approval, which is iffy at best at this point, homeowners will have the option to stick with their current "Save Our Homes" exemption, or accept the new "Super Exemption" instead.
The current Save Our Homes program reduces the taxable assessment of your residence by $25,000 and adds a 3% cap on annual assessment increases. The Super Exemption has a much larger exemption off of the assessed value, (75% on the first $200k of assessed value plus 15% on the remaining assessed value.) But it's annual cap will be tied tied to personal income growth which averages about 4% per year in Florida.
So, assuming the "Super Exemption" gets the required 60% or more approval in the January, 2008 voting, which option should you choose ? Confusing isn't it.
The Hillsborough County Appraiser's Office has developed a tool to help Florida residents make the decision. To use that calculator, go to http://www.hcpafl.org/www/search/index.shtml . Input your last name to access your property record, then click on "Super Exemption Calculator".
These exemptions apply only to a Florida resident's primary residence, not to a second home, or investment or commercial property. Remember, also, that if you give up your "Save Our Homes" tax benefit for the "Super Exemption" when the time comes, you will not be allowed to change your mind later on.
For more information on this or any Tampa Bay real estate topic, feel free to call me at 813-263-6806 or visit my website at http://www.tampafloridahomes.net/
Should the Super Exemption get the required 60% of the voter’s approval, which is iffy at best at this point, homeowners will have the option to stick with their current "Save Our Homes" exemption, or accept the new "Super Exemption" instead.
The current Save Our Homes program reduces the taxable assessment of your residence by $25,000 and adds a 3% cap on annual assessment increases. The Super Exemption has a much larger exemption off of the assessed value, (75% on the first $200k of assessed value plus 15% on the remaining assessed value.) But it's annual cap will be tied tied to personal income growth which averages about 4% per year in Florida.
So, assuming the "Super Exemption" gets the required 60% or more approval in the January, 2008 voting, which option should you choose ? Confusing isn't it.
The Hillsborough County Appraiser's Office has developed a tool to help Florida residents make the decision. To use that calculator, go to http://www.hcpafl.org/www/search/index.shtml . Input your last name to access your property record, then click on "Super Exemption Calculator".
These exemptions apply only to a Florida resident's primary residence, not to a second home, or investment or commercial property. Remember, also, that if you give up your "Save Our Homes" tax benefit for the "Super Exemption" when the time comes, you will not be allowed to change your mind later on.
For more information on this or any Tampa Bay real estate topic, feel free to call me at 813-263-6806 or visit my website at http://www.tampafloridahomes.net/
Friday, September 7, 2007
Tampa Bay A Real Estate "Bounce-Back" Locale
Forbes magazine recently declared Tampa Bay is the #1 place in the country to buy a home right now. Because of Tampa Bay's strong and growing economy and modest housing prices, Forbes calls Tampa-St. Petersburg-Clearwater a prime bounce-back real estate market.
There is currently 20 months worth of homes and condos inventory on the market. Some of those sellers need to sell, and sell now. So, since the Forbes article, the Tampa Bay real estate market has begun to pick up as buyers grab "bottom of the barrel" home prices available right now.
This opportunity will not last for long. It is my belief that we've got a few more months at these bottom level real estate prices before the market starts recovering early in 2008.
If you're interested in Tampa Bay real estate, please contact me at (813) 263-6806 or visit my website today.
There is currently 20 months worth of homes and condos inventory on the market. Some of those sellers need to sell, and sell now. So, since the Forbes article, the Tampa Bay real estate market has begun to pick up as buyers grab "bottom of the barrel" home prices available right now.
This opportunity will not last for long. It is my belief that we've got a few more months at these bottom level real estate prices before the market starts recovering early in 2008.
If you're interested in Tampa Bay real estate, please contact me at (813) 263-6806 or visit my website today.
Thursday, August 30, 2007
Tampa Bay Luxury Homes May Soon Be Bargains for Those with Cash
The subprime mortgage crisis is having an effect on an unexpected sector of the Tampa real estate market - luxury homes and condos.
The drop in high-priced Tampa Bay home sales may be traced, slightly to troublse in the sub-prime mortgage sector, but it's also because fewer investors are willing to buy packaged jumbo mortgage portfolios. In the past, banks catering to the high-end real estate market were able to limit their exposure by packaging up "jumbo" loans (those above Fannie Mae, Freddie Mac and Ginnie Mae limits) and selling them to investors. Such investors are now hard to find.
Banks and mortgage companies that write jumbo loans are having to keep those loans on their own books and they're not happy about it. To compensate for this extra risk, they are charging much higher interest rates on "jumbo" loans. Some jumbo mortgages are now incurring interest rates 3% or more higher than what was charged a few months ago and that is depressing luxury homes and condo sales.
The problem is troublesome in the Tampa Bay Florida real estate market with its large inventory of homes and condos in the $500,000 and up price range for sale.
Soon, luxury home and condos owners who need to sell will start reducing their asking prices substantially if they want to see a "SOLD" sign in their future. As a result, those with cash on hand will be able to purchase a Tampa Bay luxury property at an attractive price.
When you're ready to start looking, contact Cheryl Stimac, Tampa Bay Florida real estate expert.
The drop in high-priced Tampa Bay home sales may be traced, slightly to troublse in the sub-prime mortgage sector, but it's also because fewer investors are willing to buy packaged jumbo mortgage portfolios. In the past, banks catering to the high-end real estate market were able to limit their exposure by packaging up "jumbo" loans (those above Fannie Mae, Freddie Mac and Ginnie Mae limits) and selling them to investors. Such investors are now hard to find.
Banks and mortgage companies that write jumbo loans are having to keep those loans on their own books and they're not happy about it. To compensate for this extra risk, they are charging much higher interest rates on "jumbo" loans. Some jumbo mortgages are now incurring interest rates 3% or more higher than what was charged a few months ago and that is depressing luxury homes and condo sales.
The problem is troublesome in the Tampa Bay Florida real estate market with its large inventory of homes and condos in the $500,000 and up price range for sale.
Soon, luxury home and condos owners who need to sell will start reducing their asking prices substantially if they want to see a "SOLD" sign in their future. As a result, those with cash on hand will be able to purchase a Tampa Bay luxury property at an attractive price.
When you're ready to start looking, contact Cheryl Stimac, Tampa Bay Florida real estate expert.
Saturday, August 25, 2007
Great Time to Buy Tampa real estate.
Sales of residential properties in Tampa Bay are down more than 30% over this same time last year.
That makes this an outstanding Buyer's Market. There's never been a better time to be buying a home or condo in the Tampa Florida real estate market for buyers who are ready to buy now and willing to use an experienced Realtor as their price negotiator.
Sellers who price realtisically are selling their homes even in this slow market. So, Search the Tampa MLS today for the home or condo of your dreams. You may be able to get it at the lowest price you're going to see in a long time. It may take some serious negotiating because many sellers are clinging to the vain hope that they can still get the high prices of a year or two ago. They won't get those prices and eventually they'll recognize that.
If you keep in touch with that seller with a reasonable offer, given today's market conditions, they may eventually accept your offer. Cheryl Stimac would be happy to act as your Buyer's Agent and help you get that home of your dreams.
That makes this an outstanding Buyer's Market. There's never been a better time to be buying a home or condo in the Tampa Florida real estate market for buyers who are ready to buy now and willing to use an experienced Realtor as their price negotiator.
Sellers who price realtisically are selling their homes even in this slow market. So, Search the Tampa MLS today for the home or condo of your dreams. You may be able to get it at the lowest price you're going to see in a long time. It may take some serious negotiating because many sellers are clinging to the vain hope that they can still get the high prices of a year or two ago. They won't get those prices and eventually they'll recognize that.
If you keep in touch with that seller with a reasonable offer, given today's market conditions, they may eventually accept your offer. Cheryl Stimac would be happy to act as your Buyer's Agent and help you get that home of your dreams.
Tuesday, August 21, 2007
Selling Tampa Real Estate More Quickly
There are really 3 main factors that affect Tampa Bay real estate selling time:
- price
- condition
- terms
Price is the single biggest factor. If the condition of your property is equal to others for sale in your neighborhood, and you're offering comparable terms, it will sell in about the average amount of time your Realtor can suggest. If you want or need it sell it more quickly, you may want to adjust your price down slightly to present "a better value" to prospective buyers.
Terms offered are another factor which can be used to attract buyers. You may offer to pay a portion of the buyer's closing costs, therby reducing the amount of cash a buyer needs and that will attract more first-time buyers. Consider including some major appliances if they are in excellent condition. Again, you'll be assisting first-time buyers. As your Realtor, I can also suggest other "terms" which will attract buyers in your locale or even a whole new group of potential buyers.
Condition of your home alone can prompt a faster buying decision by an anxious buyer, fearing that your home will be "snapped up" because it is so desirable. Consider investing in attractive, popular upgrades and cosmetic improvements. Start with your home's "curb appeal" - fresh paint, a flawless roof and landscaping. Inside, the biggest payoffs are in the kitchen and baths. Think about replacing "tired looking" appliances, faucets, countertops and flooring. Make your tubs and showers sparkle. Here again, I can tell you which improvements offer the best payback.
While Price, Condition and Terms aren't the only factors, they are surely among the most important. Vist my website or call me for advice if a quicker than average sale is your goal
- price
- condition
- terms
Price is the single biggest factor. If the condition of your property is equal to others for sale in your neighborhood, and you're offering comparable terms, it will sell in about the average amount of time your Realtor can suggest. If you want or need it sell it more quickly, you may want to adjust your price down slightly to present "a better value" to prospective buyers.
Terms offered are another factor which can be used to attract buyers. You may offer to pay a portion of the buyer's closing costs, therby reducing the amount of cash a buyer needs and that will attract more first-time buyers. Consider including some major appliances if they are in excellent condition. Again, you'll be assisting first-time buyers. As your Realtor, I can also suggest other "terms" which will attract buyers in your locale or even a whole new group of potential buyers.
Condition of your home alone can prompt a faster buying decision by an anxious buyer, fearing that your home will be "snapped up" because it is so desirable. Consider investing in attractive, popular upgrades and cosmetic improvements. Start with your home's "curb appeal" - fresh paint, a flawless roof and landscaping. Inside, the biggest payoffs are in the kitchen and baths. Think about replacing "tired looking" appliances, faucets, countertops and flooring. Make your tubs and showers sparkle. Here again, I can tell you which improvements offer the best payback.
While Price, Condition and Terms aren't the only factors, they are surely among the most important. Vist my website or call me for advice if a quicker than average sale is your goal
Monday, August 20, 2007
Welcome to Our Tampa Real Estate Blog
Welcome to my blog. I encourage your participation so that this may become a useful communications tool. If you are interested in buying or selling residential or investment real estate property in Hillsborough or Pasco County Florida, I invite you to join in the conversation and to visit our website at tampafloridahomes.net or redshoerealty.com where you'll find lots of useful information about the Tampa Bay locale, its amenities, its communities and its real estate market.
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