Mistakes Home Buyers Make as the Tampa Bay Real Estate Market Recovers

Tampa Bay Florida home buyers have had an unusual advantage over sellers since the real estate bust crushed the price of homes in 2007-2008. While the housing industry still has a ways to go to fully recover, there are signs beginning to emerge that as the inventory of unsold short-sale and bank-owned properties dwindles, sellers are beginning to have a little more leverageover buyers.

Some prospective home buyers don’t seem to have realized that the Tampa real estate market is changing and recovering. Those people seem to think that all home sellers (including owners of short sale and bank-owned properties) are "desperate." But owners of homes in good condition in attractive neighborhoods are not nearly as desperate (or not desperate at all) as those prospective home buyers would like to believe. "At this point, prospective buyers," says Cheryl Stimac, a Tampa Bay real estate broker at Red Shoe Realty, Inc., “need to start being more realistic in the offers they make."

Here's are some common mistakes made by buyers that too frequently result in the buyer not getting the short sale or bank-owned home they fell in love with:

• Failing to communicate honestly with your Realtor about your willingness (or lack of willingness) to wait for approval:
  One of the biggest problems Realtors face these days is prospective buyers who want to tour many bank-owned and short sale homes, find the one they want, and then walk away before their offer is accepted by the bank.
  
  No Realtor wants to show one home after another to a prospective buyer who is just too impatient to be buying a short sale or bank-owned property. If you need a quick approval of your offer, a short sale or bank-owned home is not the way for you to buy a home.
  
  Although it is possible to receive an approval from a bank within 3 to 4 weeks, many banks take 6 to 8 week (sometimes more) to approve or reject an offer. As a buyer, you should be prepared to wait as much as 12 to 15 weeks, but be prepared to close quickly when the approval is finally given. Demanding a bank approval within 30 days will likely get your offer rejected.
  
  
• Taking too long to “sleep on it”:
  A prospective buyer may feel their Realtor is being "pushy" when he or she suggests making an offer immediately after finding the home the buyer falls in love with. Taking too long to "think about it" now that the real estate market is starting to recover can mean someone else gets the home you wanted.
  
  According to the National Association of Realtors, the number of homes listed for sale has fallen by more than a third since the peak in July 2007. Inventories of Tampa Bay homes for sale may swell a bit later this year as more bank-owned homes hit the market, but homes priced reasonably in attractive neighborhoods will still be "under contract" within a week or two. Some newly listed homes are back to being sold at the first open house showing.
  
  
• Making a low-ball offer:
  Even at the bottom of the market, banks had a pretty good idea of the value of the homes they were selling and not only didn't accept "low-ball" offers; they didn't even make counteroffers on ridiculously low offers. Can buyers offer something less than the asking price? Of course, but don't make offers 15% to 20% below the asking price on a short sale or bank-owned property.
  
  And remember, the bank may set a price (called the reserve price) on a home being sold or auctioned off and will keep the home in their inventory rather than sell it below that reserve price. Banks do want to sell their short sale and bank-owned homes, but you are very unlikely to be able to "steal a home." It just doesn't happen. It's that simple.
  
  It's also a good idea to ask your Realtor to contact the bank or the listing agent to see if there are outstanding offers already on the home. That will provide you with a good idea of whether it is worth the time to make the offer you were considering making.
  
  
• Making too many contingency demands in your offer:
  Typical Tampa area real estate contracts include stipulations such as the buyer qualifying for a mortgage, and the right to a termite inspection and a professional inspection.
  
  But, some buyers also insist on an unnecessarily lengthy inspection periods of 30 days or more instead of the ususal 10. They may also demand the seller pay virtually all closing costs, sometimes on top of a low-ball price offer, demand that a bank respond to their offer within 30 days, or a silliness like making the contract contingent upon a family member touring the property and approving of it.
  
  If the prospective buyer is adult enough to buy a home, he or she ought to be mature enough to make the decision without "waiting for Mommy or Daddy to say OK."
  
• Expecting a bank-owned or short sale home to be in perfect condition:
  As a general rule, bank-owned and short sale properties are not in pristine condition, seldom even close to it. The home may have been unoccupied for a considerable period of time or the persons living in the home as the process dragged on had little incentive to keep it is pristine condition.
  
  If you want a "move in ready" home that needs no work of any kind, a bank-owned or short sale is unlikely to be the right avenue for you to use to find the home you want
  

I would be more than happy to show you Tampa Bay homes and condos and to answer your questions if you'll complete my brief Request for Tampa Bay real estate information form. You may also E-Mail Me. For more immediate action, call me at 813-263-6806. I'd be delighted to hear from you.

Introducing South Tampa and its Two “Island Communities”

    South Tampa encompasses the southernmost portions of the city of Tampa, Florida. Some folks describe it as everything south of Hillsborough Avenue down to MacDill Air Force base. Others think of South Tampa as being just that which is south of Kennedy Boulevard. In fact, the folks most proud of their South Tampa roots comment that everything north of Kennedy Boulevard should be identified as part of “South Georgia.”

    South Tampa consists of many individual neighborhoods each with its own attributes and attractions. There is a wide variety of home styles and prices from Old Florida bungalows, villas and town homes to stately mansions and high-rise condominiums. Many older homes have been beautifully restored. In other cases, one or more small homes have been torn down and replaced by a large elegant executive home. We’ll discover here two of those South Tampa neighborhoods. Harbour Island and Davis Islands, two very different types of South Tampa island communities .

    Harbour Island is the 177 acre island home of a private, gated, master-planned community in South Tampa. The island is linked to downtown Tampa by two bridges. The island overlooks downtown Tampa, the waters of Hillsborough Bay and the entrance to the Hillsborough River. In addition to single family homes, condos and town homes, Harbour Island has a marina, shopping areas, casual and formal restaurants and the Harbour Island Athletic Club and Spa. One of the main attractions of living on Harbour Island is the ability to walk to your job in the Class A office space on the island, itself, or in downtown Tampa.

    The upscale Westin Tampa Harbour Island hotel is on the island. The Bayshore and Hyde Park neighborhoods and the Channelside area where the Florida Aquarium, the Tampa Bay Times Forum arena, home to the Tampa Bay Lightning hockey and Tampa Bay Storm Arena Football teams, an IMAX theater, and much more are all within comfortable walking distances from Harbour Island.

    Harbour Island homes range from the low $200,000s for a 2-bedroom condominium to more than $5.5 million for the most elegant waterside single-family homes.

    In its own way, secluded away from the stress of your day job, Harbour Island offers an upscale island paradise right in the heart of the city of Tampa.

    Davis Islands is a Tampa neighborhood that was originally built upon two small natural islands at the mouth of the Hillsborough River, known as Little Grassy Key and Big Grassy Key. Today there are still techincially two islands divided by a canal; thus the name Davis Island(s). The islands were built from mud dredged from the bottom of Tampa Bay in the 1920s. Davis Islands is named after its original developer, D. P. Davis, who planned to build a resort community with 3 hotels, a 9-hole golf course, and an airport. His plan was to develop the 834 acres with over 11 miles of water frontage and seawalls and 27 miles of winding streets. Many of Davis' dreams were realized, such as the golf course, the airport, a business district, hotels, apartments, canals and parks.

    Davis’s development stalled with the end of the Florida Land Boom in the late 1920’s, but some of the original Mediterranean-style buildings still stand and have been given local and national historic designations. Others including the tennis club, the golf course and the Coleseum are no longer in place. Davis Islands includes the Peter O. Knight Airport and the Davis Island Yacht Club. There is also a municipal yacht basin and a seaplane facility next to the Knight Airport.

    Davis Islands is now a mixed retail and residential area with a wide range of home styles and price points. Its location close to downtown Tampa, its water views, and its boating and general aviation aviation facilities have made it a popular place to call home for those who love boating, sailing and flying. Homes range widely in price from modest homes in the $150,000 to $200,000 range to historically significant and elegant homes priced in the millions. In the retail district of Davis Islands, there are numerous casual and upscale restaurants, cafes, bars, and shops and the entire island is very pet-friendly.

    Professionals, families and retirees who enjoy the lifestyle found only in a “walk-about neighborhood” close to a major city may find Davis Islands a convenient and enjoyable place to find the home they’re looking for.

    You can learn about more Tampa area communities on my Tampa Florida real estate website.

    I would be more than happy to show you homes and condominiums in either of these two very different downtown Tampa neighborhoods. I'd be delighted to answer your questions if you'll complete my brief Request for Tampa Bay Information form or E-Mail Me. For more immediate action, call me at 813-263-6806. I'd be delighted to hear from you.