Step 6: Get Funding....

Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.

What kind of loan?

There are thousands of loans available out there from a variety of lenders, but in general, the mortgage you choose will likely be determined by at least several key factors:

How much down?

Loans with 5 percent down or less are now widely available -- in fact, loans from major lenders with no money down have appeared in recent years.
If you place less than 20 percent down, lenders will want the mortgage guaranteed by an outside third party such as the Veterans Administration (VA), the Federal Housing Administration (FHA) or a private mortgage insurer (PMI, or private mortgage insurance, is required by lender to protect against any mortgage defaults). More than 2.5 million VA, FHA and PMI loans are generated each year.

How's your credit?

The best rates and terms are only available to those with solid credit. To get the best loans, make a point of paying credit cards, installment payments, rent and mortgage bills in full and on time.

Are you a first-time buyer?

It might seem that "first-time buyer" means someone who has never owned property before, but under most state programs, the term refers to those who have not owned property within the past three years. State-backed first-timer programs often feature smaller downpayments and below-market interest rates. For details, speak with your local REALTOR®.

How do you get a loan?

To obtain a loan you must complete a written loan application and provide supporting documentation. Specific documents include recent pay stubs, rental checks and tax returns for the past two or three years if you are self-employed. During the prequalification procedure, the loan officer will describe the type of paperwork required.

Where do you get a loan?

Mortgage financing can be obtained from mortgage bankers, mortgage brokers, savings and loan associations, mutual savings banks, commercial banks, credit unions, and insurance companies. A growing number of REALTORS® can also arrange financing.

Step 5: Choose a home.....

There's no doubt that choosing a home is a big decision and you want to do it right. As a buyer, here's what actually happens.

A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices: accept the seller's offer and create a contract; reject it and not make an offer; or suggest different terms and make a counter-offer. If you choose this last option, the seller may accept, reject or make a counter-offer. No aspect of the homebuying process is more complex, personal or variable than bargaining between buyers and sellers.

This is the point where the value of an experienced REALTOR® is clearly evident because he or she knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating realty transactions.

Can you really afford it?

Remember Step 2 - the preapproval process? Getting preapproved means you have a very good idea of how much you can borrow, what loan programs will most likely work best in your situation and how much home you can afford.

How reliable is a preapproval?

While preapproval is not a loan commitment, it's still necessary for lenders to check such items as appraisals and the latest credit reports. Despite fluctuating interest rates, preapproval nonetheless provides a reasoned, careful analysis of what you can afford. After all, loan officers are routinely paid only when loans are originated. It doesn't make much sense for loan officers to suggest high loan limits that later can't be delivered.

Step 4: Look at homes.....

Some 6 million new and existing homes are sold each year. There's no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.

The housing market is complicated because the stock of homes for sale is always in flux. If it were possible to have a complete list of every home for sale at this very moment in a given community, such a list would become obsolete within seconds as new homes become available and properties now for sale are put under contract. In effect, buyers are looking at a moving target in a marketplace that is never static. Because of this, it is important to know as much as possible about the choices in preferred markets, and the way to do that is by working closely with a local REALTOR® who has a good "lay of the land."

What are you looking for?

A home is more than just a collection of bedrooms and bathrooms. Several properties -- each with four bedrooms, three baths, and the same price -- may well represent radically different designs, commuting distances, lot sizes, tax costs, interior dimensions, and exterior finishes. Each of us is different and so it's important to list the features and benefits you want in a home. Consider such things as pricing, location, size, amenities (extras such as a pool or extra-large kitchen) and design (one floor or two, colonial or modern, etc.).

Next, it's important to consider your priorities. If you can't get a home at your price with all the features you want, then what features are most important? For instance, would you trade fewer bedrooms for a larger kitchen? A longer commute for a bigger lot and lower cost?

Lastly, consider your needs in several years. If you'll need a larger home, maybe now is the time to buy a bigger house rather than moving or expanding in the future. If you expect your income to increase, perhaps you should consider a more expensive home financed with a loan program where monthly payments increase in the future.Where should you look?All neighborhoods and communities have a special nature that gives them identity and value. One community may be well known for historic homes while another offers both suburban living as well as easy access to downtown office areas.

From all of us to all of you.....

We wish you all a very Merry Christmas (yes, I said it) and a prosperous and healthy new year.

We'll see you on Wednesday. Hope you get something good! =-)

Step 3: Get Preapproved.....

Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers in 1999 financed their purchase, which means that virtually all buyers -- especially first-time purchasers -- required a loan. The real issue with real estate financing is not getting a loan (virtually anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that's right for you -- the mortgage with the lowest cost and best terms. REALTORS® routinely suggest that consumers start the mortgage process well before bidding on a home. Many lenders (the sources of money) and programs, for example, are available in the finance section of Homestore.com as well as through recommendations from local REALTORS®. By meeting with lenders -- either online or face to face -- and looking at loan options, you will find which programs best meet your needs and how much you can afford. REALTORS® also recommend preapprovals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won't be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

What is it?

"Preapproval" means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs. Based on this information, the lender will provide a preapproval letter, which shows your borrowing power. You can visit as many lenders as you like and get several preapprovals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports. Although not a final loan commitment, the preapproval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.

How do you get preapproval?

Real estate financing is available from numerous sources, including lenders in the finance section of Homestore.com, mortgage companies that have worked with local REALTORS® and in some cases, individual REALTORS® themselves. Based on his or her experience, the REALTOR® may suggest one or more lenders with a history of offering competitive programs and delivering promised rates and terms. The loan officer will carefully review your financial situation, including your credit report and other information. The lender will then suggest programs which most-closely meet your needs. For instance, a first-time buyer may qualify for state-backed mortgage programs with little money down and low interest rates, while a repeat purchaser (someone who has bought a home before) with more equity (money invested in the home) might want to get a 15-year loan and the lower overall interest costs it represents. Typically, first-time buyers opt for the traditional 30-year loan, with either a floating interest rate or a fixed rate of interest over the life of the loan.

Buyer's Guid Step 2

Step 2 : Get a REALTOR®

More than 2 million people in the United States have earned real estate licenses. However, real estate is a tough business with a steep dropout rate, and the result is that only a small percentage of those with licenses actively help buyers and sellers. The National Association of REALTORS® (NAR) includes 750,000 brokers and salespeople, individuals bound together with a strong Code of Ethics, extensive training opportunities and a wealth of community information. NAR members are routinely active in PTAs, local government committees and a variety of neighborhood organizations. Being actively involved in community affairs provides REALTORS® with a better understanding of the area in which they are selling. Why?

Buying and selling real estate is a complex matter. At first it might seem that by checking local picture books or online sites you could quickly find the right home at the right price. But a basic rule in real estate is that all properties are unique. No two properties -- even two identical models on the same street -- are precisely and exactly alike. Homes differ and so do contract terms, financing options, inspection requirements and closing costs. Also, no two transactions are alike. In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.

How do you choose?

In every community you're likely to find a number of realty brokerages. Because there is heated competition, local REALTORS® must fight hard to succeed in your community. The best place to find a local REALTOR® is from REALTOR.com's® extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other REALTORS®, recommendations from neighbors and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable. In many cases buyers will interview several REALTORS® before selecting one professional with whom to work. These interviews represent a good opportunity to consider such issues as training, experience, representation and professional certifications.

What should you expect? (Working with a REALTOR®)

Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state. Once hired for the job, the REALTOR® will provide you with information detailing current market conditions, financing options and negotiating issues that might apply to a given situation. Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace REALTORS® will keep you updated and alert you to each step in the transaction process.

A guide for buyers....

I am beginning a series called "A Guide For Buyers" which will walk you step-by-step through the buying process. A Guide for Sellers will follow.

Step 1 : Are You Ready?

One of the keys to making the homebuying process easier and more understandable is planning. In doing so, you'll be able to anticipate requests from lenders, lawyers and a host of other professionals. Furthermore, planning will help you discover valuable shortcuts in the homebuying process.

Do You Know What You Want?

Whether you are a first-time homebuyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy. Are you planning to move to a new community due to a lifestyle change or is buying an option and not a requirement? What would you like in terms of real estate that you do not now have? Do you have a purchasing timeframe? Whatever your answers, the more you know about the real estate marketplace, the more likely you are to effectively define your goals. As an interesting exercise, it can be worthwhile to look at the questions above and to then discuss them in detail when meeting with local REALTORS®.

Do You Have The Money?

Homes and financing are closely intertwined. (Financing is the difference between the purchase price and the downpayment, commonly referred to as debt or the mortgage.) The good news is that over the years new and innovative loan programs have evolved which require a 5 percent downpayment or less. In fact, a number of programs now allow purchasers to buy real estate with nothing down. In addition to a down payment, purchasers also need cash for closing costs (the final costs associated with closing the loan). Several newly emerging loan programs not only allow the purchase of a home with no money down, but also underwrite closing costs. Not everyone, however, elects to purchase with little or no money down. Less money down means higher monthly mortgage payments, so most homebuyers choose to buy with some cash up front. As to closing costs, in markets where buyers have leverage, it may be possible to negotiate an offer for a home that requires the owner to pay some or all of your settlement expenses. Speak with local REALTORS® for details.

Is Your Financial House in Order?

Those great loans with little or nothing down are not available to everyone: You need good credit. For at least one year prior to purchasing a home, you should assure that every credit card bill, rent check, car payment and other debt is paid in full and on time.

Where is everyone.......

I know it's been a few days since I last posted, but where are all my readers?

Have you deserted me? You used to send emails telling me things like "good post" or "I totally agree".

Are you breaking up with me?

But can you cook on it.......

One of the first things buyers change in their new homes is the appliances - followed by a close second flooring. Many older homes haven't been updated in years, and you may find yourself as the new property owner deciding if that avocado wall range is really worth keeping.

With the technological advances in appliance manufacturing, there are several choices available to the consumer these days. Besides the color or finish of the appliance, there are so many features to choose from that the average home owner could become confused.

I'm no appliance salesman, nor do I get a kickback from Lowe's or Home Depot. But I have bought appliances in the past and I can share a few of my criteria with you.

When choosing a refrigerator, make sure you measure the space in the kitchen BEFORE having it delivered. There's nothing worse than trying to slide your new refrigerator in place only to find that the unit is 3/4 of an inch taller than the cabinet under which it goes. I have employed soap to lubricate the top of the refrigerator and slide it into place.

Ranges offer convection and conventional cooking features these days. It pays to research both and decide which will work best for you. Do you cook large meals on the spur of the moment? Don't want to spend endless hours in the kitchen? Convection ovens are the way to go. I have to be honest here, I don't know anything about convection ovens and don't even know if this is the proper criteria. So, you caught me. Big deal.

Dishwashers I know. I hate to empty the dishwasher. And I hate dishwashers that offer the silverware tray attached to the door of the unit. It is inconvenient. Sure when I saw it in the store I thought it was a good idea - but quickly changed my mind when silverware falls to the bottom of the dishwasher, or the sliding drawers don't close properly because a fork is impeding its progress.

As for microwaves - plain is best. I personally have never cooked a meal in a microwave, but I do remember the microwave craze of the late 70s when microwave cookbooks and cooks were in abundance. It was a novelty. But now we know they are glorified coffee warmers and should be treated as such. The fewer bells and whistles on the microwave, the less there is to break.

I know this probably wasn't very helpful, but sometimes "fluff" content is better than none.

Have a great Monday. You deserve it.

Stop the bleeding....

Experts agree; this market is the perfect time for buyers to get a home they couldn't normally afford for many reasons. Mortgage rates are still historically low, with the Fed expected to lower the rate yet again by December 18. The median price of homes has decreased making larger homes with more amenities affordable.

And yet, things are still moving slowly. Who do we blame?

Well, point two fingers. One at the sellers and one at the Realtors.

I've said time and time again that this is NOT the market to make a killing or huge profit on the sale of your property. Sellers should expect that if they need to sell now, the home should be priced according to comparable sales within the past 6 months. You may not walk away from the closing table with much more than you owe the mortgage company, but if you need to sell, you'll be pleased not to BRING money to the closing table.

Realtors should also approach each listing as an opportunity to help the seller; not help their own bank account. Price the home sensibly. Don't price a home with the intention of submitting several price reductions in the near future.

Buyers are seeing all the "Price Reduction" signs and falling list prices and they are holding on to see where the bottom is. As long as prices continue to decrease, the buyer believes they are going to go even lower - and so they wait for the best possible deal.

To Sellers and Realtors: Be FIRM on your price. Buyer incentives still work in this market but you have to get creative. Instead of a $3000 credit toward closing costs, how about advertising two round-trip tickets to Paris? Sounds better, doesn't it?

Sensibility is the key to selling a home in this market. I'm optimistic.

All roads lead to.....

[Tarpon Avenue c. 1894]

Tarpon Springs has undergone a major face life over the past year. While inconvenient for many drivers and business owners (myself included), it has dramatically changed and improved the appearance of the city.

I was commenting to someone the other day that having grown up in Tarpon, you get used to the look and feel of the city. Then, when you see the improvements you can't believe how "ugly" the city was before.

The two major roads in Tarpon Springs, Pinellas Avenue and Tarpon Avenue have been repaved and planter medians put in place. New turn lanes and turn signals now exist at heavily travelled intersections, new sidewalks have been created with brick pavers and many overhead power lines have been buried. There are still some projects to be completed, such as landscaping in the medians and sidewalks.

All of these have given the city a cleaner and quainter look and feel. Now the appearance of the city, matches its character.

I want to thank all those involved in working so hard to make our city beautiful. If you haven't visited Tarpon Springs for a while, or ever, come on over!

If he bites the mailman..........

So many fortunate homeowners also own something else very precious to them - a pet. And while a home is for sale and strangers are tramping in and out, this is a very stressful time for these babies. How can you ensure not only the safety of your pet, but that of the potential buyers?

First, talk with your agent in detail about showings. What will be done with the pet during a showing and is this something your agent can handle? Is your agent comfortable with pets and more importantly, is your pet comfortable with your agent. Chances are, if your dog doesn't like him.....well, you know the rest.

A quick personal experience - I had listed a home in which lived two delightful Parakeets. An agent with another company called to set up a showing of the home. Since I had the key and the owners didn't want a lockbox, I had to meet the agent at the home. I wasn't aware that the Parakeets were allowed to roam free during the day, but having owned birds in the past, I wasn't put out. The other agent arrived with her client and proceeded to show the home. Suddenly, one of the Parakeets took flight and landed directly in the agent's hair. She screamed like she was being murdered. I walked over, calmly removed the bird and set him safely in his cage.

Needless to say, you don't want this to happen when someone is showing your home. Not everyone is comfortable with pets. That's why it's important to have a plan for your babies when the home is being shown. Also, make sure your agent spends some quality time with the pets so they are familiar with at least one person. You can request that your agent be present during each showing to ease the stress of the pet slightly.

Remember it's your pet's home too, but they have no idea what is going on. They could become protective of their territory in ways that would embarrass you. Not that our pets would EVER do that!!

Your home has never looked better......

Many think the holidays are a terrible time to try to sell a home. People are wrapped up in the shopping season, family visitors and spending money elsewhere, right? Right and wrong.

The holidays are the perfect time to show your home. A home decorated for the holidays adds an emotional aspect to the showing for the buyer. They can picture their own families enjoying special times in the family room, holiday dinners in the dining room or friends gathered for holiday parties around the pool (after all, we are in Florida).

I've written contracts for purchase on Christmas Eve, believe it or not! You are also pretty well ensured that people looking at homes during the holiday season are serious buyers; people who are ready to move and may want to be in a new home by Christmas or New Years.

Holiday scents and sounds bring back joyous memories for most of us, and put us in that one-time-a-year mood that could lead to the sale of your home. Think about that!

Happy Thanksgiving......

All of us at Landmark Real Estate Specialists wish you a very happy and healthy Thanksgiving. This is a time to reflect on the things in our lives for which we are grateful and so I thought I would share a few of my own gratitudes with you:

-I am grateful and thankful for my continued good health and that of my friends and family.

-I am grateful and thankful for the many clients who have placed their trust in me.

-I am grateful and thankful for the beautiful weather we have been enjoying.

-I am grateful and thankful that I live in paradise.

-I am grateful and thankful that you have taken the time to read this blog and that you continue to visit often.

Enjoy your weekend. We'll be back on Monday with great information.

Landlords can avoid large tax bills.......

Anyone who has owned investment real estate, whether a student rental, a small apartment building, an office building or a strip retail center, knows that two of the most demanding aspects of being a landlord deal with tenants and maintaining property.

For many, being a real estate investor appears a Catch-22: You want out, but to get out you must give away all or most of what you have worked for. One of the best strategies for freeing yourself of landlord hassles, while deferring taxes, is 1031 Exchanging into an Absolute-Net-Leased property in which the tenant maintains the building.

1031 Exchange. The IRS Code allows you to exchange one real estate investment asset for another while deferring the gain and depreciation recapture on the sale of the first property. With 15 percent federal capital gains tax, plus state taxes (4.63 percent in Colorado), plus the recapture of depreciation at your ordinary income tax rate, the potential for deferring taxes is huge ... particularly if you have held the property for many years.

On the sale of an investment property that has been held long enough to generate significant appreciation while a significant amount of depreciation has been taken, it is not unusual for 30 to 40 percent of the proceeds from the sale to be paid in taxes if the seller does not 1031 exchange into another property.

The IRS Code says properties eligible for a tax-deferred exchange must be like-kind.
For real estate held for investment, that gives you a lot of latitude. An apartment building you own in California can be exchanged for an office building in Colorado. Raw land can be exchanged for a fully-developed building. Your 100 percent ownership in the building you are selling can be divided into two or three properties to create diversification. As long as the exchange is done properly the options for tax-deferred investments are limitless.

Replacement Property. Locating and securing your 1031 replacement property must be done swiftly, skillfully and knowledgeably. The replacement property must be identified in-writing within 45 days of the sale of your relinquished property, and then the closing on the purchase of the second property must occur within 180 days of the sale of the relinquished property. The process of selecting your replacement property should begin as soon as you know you have a solid buyer for your replacement property. You do not want to wait until day 44 to begin looking, or you are likely to come up empty handed.

If you are looking to let go of the hassles associated with being a landlord, then you should focus search on Absolute-Net-Leased properties.

Such properties can be purchased as fractional interests (also known as Tenant-In-Common (TIC) interests) or as 'whole' properties. TIC interests are available in large retail centers, multi-family housing, luxury private student housing and office buildings. Generally, you will need a minimum of $150,000 in cash and meet certain accreditation requirements in order to buy into a TIC.

'Whole' Absolute-Net-Leased properties are often the separately-owned pad sites of larger retail centers. It could be the real estate for a Jack-in-the-Box, a Big-O Tire Store, Blockbuster Video or a Starbucks. One of the classic Absolute-Net-Leased properties for the larger buyer is the real estate for a Walgreens pharmacy. In general, you will need $500,000 or more in cash to purchase a quality 'whole' Absolute-Net-Leased property.

Where to find Expertise. The 1031 Exchange is the ideal tool to move from a management-intensive property into an Absolute Net-Leased property. While you do not personally need to have all the answers, you need to know where to find them. Two essential members of your team are, (1) an investment real estate broker who can provide you with and help you evaluate various TIC and 'whole' replacement property options, and (2) a top-notch Exchange Qualified Intermediary, QI for short. With the right expertise, you can preserve your hard-earned equity, establish a predictable and reliable cash-flow, and free yourself from getting the call when the toilet is not working.

Deed and Free Speech Restrictions.......

While a "Deed Restricted" community is desirable for many potential homebuyers, there are some sticky points you should consider before agreeing to all the covenants and restrictions. We discovered the following report from RealtyTimes.com.

Homeowners who live in a common interest development and are subject to CC&Rs and rules adopted by the HOA (Homeowner Association) are still American citizens (assuming they were to begin with). They don't give up their rights of free speech, do they? They can say whatever they want, wherever they want, however they want, right? Well, maybe not.

Both residents of common interest developments, HOA directors, and their management companies will want to pay special attention to a recent ruling by the New Jersey Supreme Court. While, technically, the ruling only applies within the state of New Jersey, it is liable to have considerable influence elsewhere.

The case (Committee for a Better Twin Rivers v. Twin Rivers Homeowners Association) arose out of a dispute between certain residents of the Twin Rivers development and the governing homeowners association. These residents (the Committee) brought a lawsuit against the HOA claiming that it had failed to allow them to freely express their views. One count of the complaint "sought to invalidate the Association's policy relating to the posting of signs. The Association's sign policy provided that residents may post a sign in any window of their residence and outside in the flower beds so long as the sign was not more than three feet from the residence." Only one sign per lawn and per window were permitted. No signs were permitted on utility poles or natural features (e.g. trees) within the community. The stated purpose of the sign rules was, among other things, "to preserve the aesthetic value of the common areas."

Other complaints related to the association's alleged restrictive use of the development's community room, and to access restrictions to the community newsletter.
A trial court noted that "the Association asserted considerable influence on the lives of the [development] residents," but it observed that much of the impact "was a function of the contractual relationship that residents entered into when they elected to purchase property [there]." It found that the rules with respect to signs were reasonable and enforceable.
An appellate court then reversed the trial court, holding that "the Association was subject to state constitutional standards with respect to its internal rules and regulations." That is, it held that the residents' free speech rights had been unduly curtailed. Then the Association appealed.

The New Jersey Supreme court reversed the ruling of the appellate court. In the words of one analyst, "It framed the issue as to whether the case before it presented one of those limited circumstances where, in the setting of a private community, the Association's rule and regulations were limited by the constitutional rights of the association's members." It pointed out that "private property itself remains protected under due process standards from untoward interference with … regulations upon its reasonable use." In this case, even though private residences were involved, it found that the rules and regulations were for private purposes, and that government interference was not warranted.

It held that the restrictions of the rules were minor and reasonable. Moreover, the court said, the residents had "other means of expression." They could "walk through the neighborhood, ring the doorbells of their neighbors, and advance their views."

Key to the ruling was the fact that the court did not find the association to be a "state actor," and that, therefore, it could not be held accountable to constitutional restrictions that might apply to a state agency.

The New Jersey court also noted that there are plenty of provisions in the state codes that protect residents from arbitrary actions by an HOA, and that void unreasonable provisions of HOA rules or CC&Rs.

The ruling in the Twin Rivers case is yet another one from courts around the country that demonstrate that courts are not going to intervene and overturn reasonable rules that govern those who have contractually committed to follow them.

Affordable Historic housing....

Historic preservationists and affordable housing advocates are often at odds when it comes to developing strategies to preserve older housing while providing affordable housing opportunities for working families.

In fact, there is a prevailing myth that the cost of historic preservation actually prices many working families out of many urban neighborhoods.The U.S. Department of Housing and Urban Development and the Advisory Council on Historic Preservation have announced a blueprint that seeks to challenge this myth and employ historic preservation as a tool to preserve historic homes and keep them affordable in the process.HUD and the ACHP held a symposium of national experts on affordable housing and historic preservation policies and unveiled a policy road map to potentially offer a promise of affordable housing in urban neighborhoods.“Historic preservation and affordable housing are not two separate worlds,” said HUD Deputy Secretary Roy A. Bernardi. “Historic preservation can be a powerful tool to fuel the preservation of affordable housing too.”

In 2004, HUD published “Preserving America,” a how-to guide designed to help local communities utilize federal assistance to promote historic preservation by stimulating “heritage tourism,” economic development and job growth. Panelists provided their comments on new guidelines from various viewpoints and perspectives. The speakers represented economic development, HUD community development grantees, state historic preservation offices, and the banking and development sectors.

This week’s symposium kicks off a national dialogue that will include other federal agencies, state organizations, public interest groups, and the private sector as part of HUD’s America’s Affordable Communities Initiative (AACI). The initiative works with over a hundred state and local governments to cut red tape and reduce regulatory barriers.

Thank you.......

This past Saturday evening, two of our agents, Louise Eckhouse and Kathy Kavouklis Dobies sponsored a fundraiser for the Tarpon Springs Garden Faeiries at Louise's beautiful bayou home.

The home of Louise and Tod Eckhouse has been completely renovated, expanded and modernized and the result is a showplace that is both a mix of historical significance and modern convenience. The fundraiser took place both inside the home and in the beautiful surrounding grounds with the picturesque scenery of Spring Bayou in the background.

There was soothing piano music, fantastic food, wine tasting sponsored by our local winery and stimulating conversation.

We want to thank Louise and Kathy for a memorable evening and for supporting a worthy cause.

Nothing is impossible.......

On Oct. 9, 1903, the New York Times wrote:

"The flying machine which will really fly might be evolved by the combined and continuous efforts of mathematicians and mechanicians in from one million to ten million years."

On the same day, on Kill Devil Hill, N.C., in his diary, a bicycle mechanic named Orville Wright wrote:

"We unpacked rest of goods for new machine."

Maybe the media doesn't know EVERYTHING!

Help is available......

I posted a few weeks ago about "Short Sales" and how we can help people who are facing foreclosure due to varying circumstances.

The response has been astounding. I have received several inquiries about this service and have obtained a few listings as a result.

It is not uncommon for people who were able to get adjustable rate mortgages to fall behind once the initial rate period expires. I have heard the same stories again and again; many people can't afford to live in the houses they purchased 3-5 years ago and need help.

A Short Sale will bruise your credit, but it won't destroy it. You may be able to purchase a home again in as little as two years. The key is to act quickly and hire a professional who has experience in these types of transactions. Some of the people I have spoken with have reported that they've talked to other "professionals" who agree to help them for an up-front fee. If anyone tells you this, you are talking to the wrong person.

You will not pay us a dime to handle the transaction. You'll gain peace of mind knowing that your stress will be alleviated, and you'll come out on the other side with hope.

We truly believe in helping, and we're ready.

Have a great Tuesday.

It's Friday already......

I haven't posted since Monday? Where has this week gone?

It goes to show how busy we've become and I'm not going to complain.

Statistics show that home values in Tarpon Springs have remained steady, despite the downward spiral of other markets. The reason? Florida is a destination state, and Tarpon Springs is the perfect location in Pinellas County. I've spoken to several people over the past few days that are in LOVE with Tarpon Springs and I can't blame them.

So your house is on the market in Tarpon Springs and you're wondering why you haven't seen an increase in activity? Be patient a little longer. The snowbirds are returning by the flock and they are ready to invest in Florida.

We should be seeing increased activity from now through next April, which is when the experts predict the ebb and flow of the real estate market to even out.

Good things are coming. Do you have the best real estate professional on your side? If it's not us, then you probably don't.

Have a great weekend!

Rants....again.......

Happy Monday!

I hope you enjoyed a great weekend and you've been refreshed to start a new week.

I spent some time this weekend looking at all of the "Active" listings in Tarpon Springs on the MLS. I've said it before and I'll say it again; if you, as the seller, are not aware of how your property is being marketed to buyers and other agents, you need to contact your real estate professional today and become informed.

I can't tell you how many million-dollar plus homes are listed on the MLS with ONE picture. It costs no more to put 12 pictures on MLS as it does 1, and no matter what the price of the property if your agent has posted only 1 picture on MLS, you are being short-changed. Your property is not being marketed to its fullest potential. And in this type of market, your agent should be working doubly hard to get the word out about your home.

One picture! And do you know there were at least 2 properties where the one picture was taken from the car of the agent! They couldn't even get out of the CAR to take the picture! This tells me that the client isn't very important to him/her and that he/she doesn't feel that the client's business has to be earned.

Remember your agent is working for YOU. Tell your agent if you feel your property isn't being marketed properly and try to work as a team.

Have a successful and happy Monday!

Would you like that in Euros........

With the decrease in worth of the dollar overseas, it has become apparent that foreign property investors are on the forefront of calling America a second home.

We have already seen an increase in buyers from other nations, specifically in Florida. While this has always been the case, with more purchasing power in the form of Euro currency, foreign nationals are increasing our sales numbers in this state by leaps and bounds. Many of these buyers are gambling that properties purchased now will translate into huge dividends in the near future.

If your home is on the market currently, you should be asking your agent if he or she provides for any international marketing. Do they speak another language? Do they have contacts in countries which represent the largest pool of buyers in the United States? The answer should be a resounding "yes".

This is truly a global village and we should be extending a welcome to our international friends.

Have a great Thursday!

Renewals WAY down.........

Time gets away from me lately. But I'm not complaining, because that means I'm busy!

I wanted to pass on some information regarding the renewal of licensed real estate agents in the state of Florida. Renewals for licenses are either due in March or September. The September statistics show that out of a potential 86,000 (approximately) renewals possible, only approximately 22,000 actually renewed their licenses.

As I and others predicted, the agents who got into the industry to make easy money during the hot market have found it hard to generate business in this correcting market. This is good news for those of us who have committed ourselves to real estate and to hard work.

We'll see more and more agents dropping out for the promise of a regular paycheck and stability, but those of us remaining in the industry know our determination and the support of our clients will bring about fruition.

We're here to help and we're not going anywhere!

Property Tax info........

From the Florida Association of Realtors:

With the removal of Amendment 1 from the ballot on January 29th, the Governor and Legislature are working to get a new proposal ready for the ballot during the Special Session that has been prolonged through October 22nd. The phase-out of Save Our Homes and the Super-Homestead Exemption portion of that amendment appear dead.Proposals, ideas, and press conferences are at a breakneck pace on the property tax issue this week. The Governor has outlined a plan and is personally asking Legislators to vote for it during special session next week. You can read his proposal in bill form here: Gov Crist language. His proposed constitutional amendment, which he wants the voters to see on January 29th, 2008, would:

- Double the homestead exemption to $50,000 (though school board taxes would stay exempt at $25,000) that would increase with CPI each year

- Offer a blanket 25% homestead exemption for owners of homestead properties who have never owned homestead property in Florida- Allow unlimited statewide portability of Save Our Homes exemption to homesteaders (excluding the school board tax portion) by allowing the full amount to be carried to the next homestead if buying up; if buying down the new assessed value would be equal to the old homestead's assessed value to market value ratio

- Exempt the first $25K of the tangible personal property taxes paid by businesses and mobile home owners- Apply an across-the-board revenue cap on local governments, including property taxes (already in law), and collection of almost all fees and taxes - including impact fees, local business taxes, utility fees, and licenses. This will provide additional protection across the board for all property owners.

- Equals $6.3 billion in savings over 5 years statewide

That is how the plan is laid out now, but again - much is subject to change over the next few days. Governor Crist seems open to exempting a higher portion of a homestead property value, and he's mentioned the third tier, from $50K - $75K. This issue was specifically mentioned as an alternative in discussions between John Sebree and top aides to Governor Crist today.

The Senate plan will be unveiled later this week, but through our meetings with top legislators and staff we've learned that it will likely:

- Offer statewide portability of a limited amount of Save Our Homes savings, and have it limited over time. EXAMPLE: John Smith ports $200,000 in savings value to his next homestead, but every year his assessed value will rise by 8% (no matter what), and eventually (after 12-15 years) raising his assessed value to his purchase price. At that point, his assessed value reverts back to the Save Our Homes value of 3%. The Senate claims that this is a federal constitutionally-sound method of providing portability.

- Offer a 50% homestead exemption to owners of homestead properties who have never owned homestead property in Florida, and have that phase out over 5 years OR offer a larger homestead exemption of $50,000 that phases out over 5 years (and leaves them with a $25,000 exemption). This may ONLY apply to homes bought at or below median home price in the area.- Exempt the first $25K of the tangible personal property taxes paid by businesses and mobile home owners- Allow for assessment changes for working waterfront properties

- A non-homestead and commercial assessment cap (similar to Save Our Homes) at 8 or 10 percent maximum per year

Again, we will know more specifics in the coming days, but we're fairly confident that this will be the crux of the Senate proposal.The House plan will be unveiled later this week as well, but we've learned the following today:

the House Republicans want more dollar savings ($3 billion), and while not completely agreeing with all concepts the Governor has laid out, want the following to be included as well:

- Total elimination of property taxes for low income seniors

- Targeted relief for affordable housing

- Targeting relief for working waterfront properties

- Additional property tax relief for property owners making energy efficient improvements to homestead and non-homestead owners

- Eliminate the "presumption of correctness" of local property appraisers, and make the Miami-Dade Property Appraiser an elected - rather than appointed - position

Both the House and Governor insist that this is not the end of tax reform in any case, but the Senate is sending messages that they want to end most property tax reform talk until 2009 if a ballot proposal in January passes. There is also some concern around Tallahassee that the House may throw up their hands and not be able to come to any agreement with the Senate on a ballot property tax reform measure. Several FAR lobbyists are having lunch with Speaker Rubio tomorrow, and we'll know more details on the House position after that meeting.

No fees, please........

With mortgage rates still as low as they are, financing a house is dirt cheap these days, right?

Not if you pay a fortune in closing costs.

As anyone who has shopped around for a mortgage knows, it's extremely difficult to compare one lender's offering to with that of another lender because the up-front fees vary so much and are not guaranteed. Lenders and their venders can, and sometimes do, add or inflate fees in the eleventh hour of a transaction.

The U.S. Department of Housing and Urban Development (HUD) has been working on regulations that promise to simplify the mortgage process and save consumers as much as $1,000 off a typical mortgage transaction. When such rules will be rolled out, if ever, is still anyone's guess.

With no regulation in sight, borrowers should consider these strategies for keeping their closing costs in check.

Get friendly with your current lender.

If you're looking into refinancing, the first call you should make is to your existing lender, who already has critical information about you and your house on file, said Keith Gumbinger, vice president for HSH Associates.

Since you have an existing relationship, a "streamlined" process might be possible. That can save you a lot of extra paperwork and money on everything from application fees to appraisal fees.
Fee-ed Up?Here are just some of the costs of closing on a mortgage.
Application
$272
Appraisal
$310
Credit report
$28
Document preparation
$206
Processing
$288
Recording
$86
Underwriting
$236
*Based on a $100,000 loan. Not every lender surveyed charges all of these fees.
Source: HSH Associates December 2003 survey of lenders

Although fees for title search and title insurance are not determined by the lender, you may also get a break there. If you recently refinanced or took out a loan, you can save as much as 50 percent on title insurance by asking for a reissue rate, which your lender can request on your behalf.

If you're a homeowner shopping for a new house, you should also try giving your existing lender first dibs on the new business. Assuming you've been a good client and your lender originates the kind of mortgage you're interested in, it's possible to get a better-than-market deal, according to Gumbinger.

Get nitpicky about fees...

There are more than a dozen kinds of fees that could show up on your final closing statement, including credit report fees, appraisal fees, document preparation fees, title fees, recording fees and underwriting fees.

All told, fees on a $200,000 mortgage could add up to anywhere from $1,000 to $3,000 – that's not including any "discount" points you pay up front to get the best interest rate. (A "point" is a fee that equals 1 percent of the loan amount.)

Lenders are required to give you a good-faith estimate of your closing costs within three days after you apply for a loan. Some will give you such an estimate even before you apply if you ask for one. Even if it is no guarantee, this written estimate will give you an idea of what kind of fees you can expect to pay, as well as an opportunity to negotiate for a better deal.

"If you're a good credit borrower you can challenge fees if they seem excessive," said Gumbinger, noting that lenders don't control many fees that show up on your statement.
Keep in mind that the good faith estimate doesn't include such out-of-pocket costs as state mortgage taxes, homeowners insurance and property taxes, which you may be expected to pay at the time of closing. In fact, your total tab at closing could be several times more than originally estimated, said Gumbinger.

... but keep the big picture in view

Closing costs are certainly a consideration for both new loans and refinancing. But it's important to not lose sight of what should be your first priority – getting the lowest rate possible.
Indeed, the difference between paying, say, 6 percent and 5.5 percent on a new loan adds up to nearly $23,000 in total interest on a $200,000 30-year loan. If you have to pay a few hundred dollars in closing costs to get that rate, you can rest assured that it is a worthy investment.
It may even be worth it to pay a point or so up front in order to lock in the lowest rates. Let's say that you'll knock your rate down to 5 percent on that $200,000 loan by paying an extra point ($2,000) up front. Considering that you'll cut $62 off your monthly payment and about $22,000 from total interest by going from 6 percent to 5.5 percent, it makes sense as long as you plan to stay in the house long enough to recoup those up front costs.

In fact, if you're short on cash you might even consider rolling the closing costs into your loan, if that is an option. You'll want to consider how much more you'll pay each month as well as in interest over the life of a loan.

If you roll $2,000 in finance costs into a loan with a 5.5 percent rate, for example, you'll pay an extra $11 a month and about $2,000 extra in total interest. In this case you're still better off than if you had not refinanced at all.

Stop Foreclosure..............

We have all heard about the increasing number of foreclosures occurring not only in the nation, but in Florida specifically.

WE CAN HELP YOU STOP FORECLOSURE PROCEEDINGS!

The term "Short Sale" has been tossed around the media as of late, and it's a way for people to stop the foreclosure of their home, and get out of the hole they are in relatively unscathed.

It takes a real estate professional who is skilled at negotiation with the lender, marketing a home properly and who knows the required legal paperwork involved.

WE ARE THOSE PROFESSIONALS.

We are excited to be able to help those people who have found themselves in this unfortunate circumstance. If you are in danger of foreclosure, or you know someone who is ANYWHERE in ANY STATE, contact us immediately. We must work quickly to get the process started.

We have Certified Short Sale Specialists on our team, and we're here to help. Your situation and the issues surrounding it are totally confidential, but you must act quickly to take advantage of the help we are offering.

I wish you a successful and stress-free weekend.

Wednesday musings........

Bear with me.

Today is a great day for you. Today is the day you are going to feel like you're on FIRE, that you can't lose. As the great (I love her) Stevie Nicks says "what I seem to touch these days just turns to gold".

I say this because consumer confidence (or lack thereof) seems to be the problem in the real estate market and I want you to know it's OK. These things happen. But the dark clouds have lifted, and enough people care about this market correction and avoiding a recession that there is plenty of help out there for buyers and sellers. There are tons of competent professionals waiting to assist, to guide and to nurture your decision.

So let's all remember that today is a GREAT day.

Happy Wednesday.

A resounding thud........

I'd like to share with you some of the responses I received from my last posting, but I got ZERO!

So, back to the old format.

Last night's national news reported that existing home sales in Florida were down 12%, and yet again didn't go one step further to explain that existing home sales were UP 33% the preceding two years which was an anomaly. As you know, this type of slanted reporting infuriates me.

The media should focus on the reason people aren't buying in full force and that is a lack of confidence in the economy. It has nothing to do with real estate or the mortgage fraud issues coming into light. It has to do with our current government slashing budgets for needed programs and our own president denying health care coverage to 10 million children!

I was talking to a man yesterday who said he bought a home two years ago a few miles north of Tarpon Springs for $134,000 in a neighborhood where the average home price now is $110,000. He said he really had wanted to live in Tarpon Springs, but couldn't afford the prices at the time. He lamented as I told him of the incredible homes available under $200,000 and even some very nice homes available in the $150,000-$180,000 range. NOW, he will never be able to sell his home for what he paid, or close to it and satisfy his mortgage to move into the area where he truly wanted to live in the first place!

I know this scenario is happening time and time again in this area, but we must realize the true enemies here are the investors who swooped in, drained all the cash they could from the properties they purchased, and now have flooded the market with those properties at inflated prices. I know I keep saying this over and over, but I will keep saying it until everyone realizes it's true.

On another blog I read frequently, one man posted that this problem won't go away until "we stop listening to the LYING Realtors about list prices". You KNOW I had to respond to that. I agree there are some Realtors who will tell the seller what they want to hear, but the realtor working the hardest in this market who is honestly trying to make a living isn't going to price a home so it won't sell. And Realtors don't price homes in the long run, anyway - the market does.

Oh my soapbox is getting worn. I'll have to build a new one.

I see positive things happening and I believe in real estate. All of the houses currently on the market are already sold - the buyers just don't know it yet.

Smile!

Here's your chance.......

I'd like YOU, the reader, to write the next post. Here's how it works:

Reply to this post with a comment or story about your BIGGEST peeve. A peeve about Realtors, Real Estate Companies, mortgage companies or anything. Let's see what commonalities we all share and if I can address them all.

I guess you could say this is a challenge. I've given you tons of information over the past months, now it's time for you to be the voice of the market and talk back to me.

I'm waiting!!!!!!!!!!

The Death of one owner.......

George:
My father co-signed on my mortgage for the purchase of my home 10 years ago. He recently passed away. I want to sell the house now, but his name is still on the deed. What can I do?

First, let me extend my sympathies to you for the loss of your father. Let me also let you know that this is not the first time something like this has happened, so don't panic.

You must locate the deed you were sent approximately 6 weeks after you closed on the house. Since you are in Florida, you should have received a deed. In Florida, mortgage companies do not hold the deed to your property, they place a lien for the mortgage amount against the property.

Once you have located the deed, you must see how the deed was written. For example, it will have your name, your father's name and the type of ownership in which you took the property.

"Mary Smith, a single woman and John Smith, a married man as tenants in common with right of survivorship."

Or some other type of wording. As long as you have taken the property "with right of survivorship" the property reverts to you in name at his death. If it simply says "tenants in common" or "joint tenants", you should check with a reputable Title Agency to find out what your next step should be. Has this property been named in his will? Will the property have to go through probate? These are questions a Title Agency or Real Estate Attorney can answer for you.

It's best to have a death certificate available to send to any agency that requests one, i.e., the mortgage company.

I wish you luck and let me know how I can be of assistance to you.

Property Tax Relief explained.......

WHAT IS THE PROBLEM?



A property tax crisis is engulfing our state and hurting the real estate industry. Property Tax levies have increased an astounding 99% between 2000 and 2007, and citizens are demanding relief. We face a situation in which people are either being taxed out of or locked into their homes.



The Save Our Homes (SOH) amendment created huge inequities among taxpayers. Due in part to SOH, local taxing authorities have increased the burden on non-homestead properties. There are also big problems associated with "Highest and Best Use" assessments on non-homesteaded properties.



The good news: Help is on the way!



WHAT DID THE LEGISLATURE DO DURING THE JUNE SPECIAL SESSION?



1. They enacted a statutory "Roll-Back and Cap" of property tax collections that has already been signed into law by Governor Crist.



2. They voted to place a Constitutional Amendment on the January 29, 2008 statewide ballot that, if approved, would create a new "super homestead exemption" worth up to $195,000 of a home's taxable value.



WHAT IS MEANT BY "ROLL-BACK AND CAP"?



Basically, the new law provides an overall cap limiting what local governments can collect in property tax. The revenue cap requires a local government to collect the same amount of revenue it did in the previous year, adjusted for new construction and statewide personal income and growth.



For the upcoming 2008 Fiscal Year that begins on October 1 this year, all local governments will be required to freeze their tax base at the 2006-2007 level with an allowance for growth going forward.



Additionally, government entities would then cut an additional 3%-9% based on their five-year history of tax increases. School boards are exempt from this provision, and all independent special taxing districts are subject to a 3% cut.



WHAT DOES THIS MEAN FOR PINELLAS COUNTY RESIDENTS?



To meet the requirements of the new "roll-back and cap" law, Pinellas County staff recently proposed lowering property tax rates and reducing spending by 7%. this would be the lowest countywide tax rate since 1987. County Commissioners still must approve the spending plan. Public hearings are scheduled in September.



WHAT IS THE DIFFERENCE BETWEEN AN ASSESSMENT CAP VERSUS A REVENUE CAP?



Save Our Homes (SOH) is an assessment cap on homestead properties only. It reduces the taxable value but does not limit the tax rate. As a result, local governments have kept millage rates artificially high in order to compensate for the taxable value that is "shielded" by SOH. This especially hurts commercial and non-homestead properties that have no assessment limitations. A revenue cap limits the amount of money that local governments can actually collect, thereby keeping pressure on elected officials to keep millage rates down.



DOES THIS LAW BENEFIT NON-HOMESTEAD PROPERTIES?



Yes! The "roll-back and cap" will apply to and protect all classes of properties from big and unpredictable year-to-year property tax increases. This includes vacation homes and commercial and rental properties. In fact, this is the very first guaranteed property tax protection for non-homestead properties in Florida history. Not only does the revenue cap apply equally to all categories of properties, it will also continually push the millage rate down.

UPDATE: The Pinellas County Commissioners met on Monday and approved the millage rate decrease.

Refreshed and renewed......

OK, I'm ready to get back to work. My dog was ready to come back from vacation the minute we got there (he doesn't appreciate being away from his own bed for very long).

The Fed has announced it will be meeting on 9/18, a little sooner than their planned meeting, which indicates another rate decrease is coming. Forecasters say the government rate could be down as low as 4% by early 2008.

This is great news! While Realtors have been saying it all along, others in power positions are noticing that something MUST be done to stimulate the real estate market as it is now affecting other disciplines associated with real estate. For instance, since the numbers of people moving has decreased, many cities are facing tax shortfalls and budget cuts. People are losing jobs in record numbers and the saddest part is, THERE IS NO REASON FOR IT!

Buyers are still a little gun-shy, or waiting for prices to drop even lower. I can say emphatically that in this area, at least, we are at the bottom of the pricing barrel. I don't believe prices will or can come down any further so it's time to get those great bargains!

I hope you all had a great weekend. I did.

Stay tuned..................

Much has happed in the real estate market in the past week and I have lots to share, but.........

We're packing up the dog and heading to Cedar Key for two days with some out of town friends.


Look for tons of information once I return!

See you on Saturday!

Destination: Florida.......

Like it or not, Florida is a destination state. People will always retire or relocate here because of our unparalleled beach front and Florida lifestyle. So, why isn't the housing market showing the desire of the nation to live here? Well, it is - in whispers.

The Feds are expected to lower interest rates again and we could soon see them as low as 4% by the beginning of 2008! If that doesn't shove buyers over the fence, nothing will. That means action is necessary NOW by home sellers.

Discuss what your absolute bottom line price is, and be listed at that price. You can have your agent indicate in the listing that this is a firm price and will not be lowered. Discuss with your agent all of the concessions you are prepared to offer a buyer and offer them up front.

As I've said before, this is no time to test the market or make a "killing" from real estate. It's a time for sensibility and education.

I remain optimistic in these trying times because positivity attracts positivity. My clients know I am working each day to reach their goals in innovative and creative ways. But for those sellers who aren't serious, or those agents trying to make a name for themselves instead of conducting business, I urge you to ask yourself what you really want (be honest).

People will come to Florida, no doubt. Let's give them a reason to make it their home.

Comparable, or not.......

From the mailbag (do they still make those?):

"Our agent has used houses from other towns to produce our comparable market analysis. I don't think this is wise, but nothing has sold in this area for a while. What are your thoughts?"

There are a few basic rules when formulating a Comparable Market Analysis. The comparables should be as similar to the subject as possible including year built, square footage, amenities, and definitely location. Sometimes an exact comparable property may not exist. It may be necessary, for example, to compare a 3 bedroom home built in 1986 with a 4 bedroom subject home built in 1986. The 3 bedroom comparable would have to be adjusted up in price (in the market analysis) to become comparable with the subject.

To answer your question, the comparable is not only based on homes that have sold, but also those that are currently listed. Surely there are homes listed in your town that your agent could use as comparables. It may take quite a bit of adjustment, but can be done. Using a comparable in another town is difficult because of the number of variables that cannot be adjusted or factored into the analysis. We've all heard "location, location, location" but can you put a price tag on the location of one town over another? We can do that with a lot that is on a body of water versus a lot that is land-locked, but not whole towns!

I would ask your agent to get a "Broker's Opinion of Price" which is similar to an appraisal (not called an appraisal) and is generated by the Broker. Or, you can pay for and obtain an appraisal of your home to support your list price.

Good luck and thanks for asking!

Workers unite.........

The origins of Labor Day are rooted in the rights of workers who toiled in untenable conditions and rose up to demand better treatment. Believe it or not, the minds behind Labor Day probably did not envision backyard barbecues, boating expeditions or days at the beach.

Last evening, I continued my yearly expression of gratitude and honor of the holiday by placing American flags in front of each home in my neighborhood. It's an impressive sight to drive down the streets and see all the flags waving.

On this Labor Day in particular I am reminded of the effort I have put forth to remain in a real estate career - especially on the bleakest of days. I'm reminded of all those people who have supported me and my business by being positive and recommending me to friends and family. I'm reminded that the energy I have expended is the daily price I pay for reaping the benefits of a job well done.

I want to thank everyone who has contributed to the success of my career and my company. I want to thank my business partners Bruce Hall, George Arvanitis and Linda Arvanitis without whom this company launch and maintenance would not have been possible.

And I want to thank you for taking enough interest to read my blog if not daily, on occasion. I pledge to work each day to earn your business and respect.

Have a fantastic Labor Day. Relax.

Thoreau I'm not.........

But this Friday brings some existential musings.

As a real estate agent, each morning I wake I must "re-invent" myself. That means I get up each day and say "Today is going to be a good day. Good things are going to happen." And even at the end of the day if nothing good has happened, I have set the tone early in the morning and can reflect in the evening on what I could have done to make the day better. Or I can examine the smaller moments of the day and decide they were indeed good.

My philosophical point is that positivity is a choice which everyone must make for himself. You can roll out of the bed, grumpy that you have to go to work or take the kids to school or blah blah blah. Or you can be happy that today is another day "above ground" and know that the mundane and smaller moments of the day are what make up life. We're here anyway, why not have a good time?

Negativity breeds contempt and resentment and I personally don't have room in my life for those things. So for those agents complaining about the market and how they don't have any business, you have to MAKE things happen for yourself. You have to be thinking about innovative ways to make your phone ring, to get in front of people, to make contacts.

Today, I am going to meet 2 new people and tell at least 5 people about my business. I'm going to make at least one of my clients happy with good news today. And I'm going to have a successful day.

To you, I wish you a successful and joyful day. Don't look for the BIG events - look for the smaller moments.

Peace.

As if we don't do enough......

Today we launch our Nationwide Referral Network.

With an extensive network of real estate professionals around the country, we are able to work with anyone ANYWHERE to fulfill their real estate needs and dreams.

Know someone who wants to move from Chicago to Los Angeles? We can find a qualified and ethical agent to handle the sale of the Chicago home and another agent to find a Los Angeles home.

We've worked hard to build our referral network, and we're happy to provide service to clients regardless of their location.

The best part is, all it takes is a phone call to get us to work. We also offer a convenient online referral form which can be found at our website, http://www.mylandmarkteam.com/. This service is ABSOLUTELY FREE!

We want to be your one stop real estate resource. With your continued support, we'll easily achieve our goals.

Statistically speaking.......

It's time for a few Tarpon Springs real estate market statistics. These numbers are actually encouraging as compared to Pinellas County and the State of Florida in general. They tell me that people still want to move to Florida and this is the area in which they'd like to live.

Currently on the market in Tarpon Springs, there are 314 single family homes, 73 condos, 93 Townhomes and 16 villas.

Properties listed as "Active With Contract" meaning there is an accepted offer in place, but the property is still available should another better offer come along are as follows: Single Family 6, Condo 3, Townhome 1 and Villas 6.

Properties listed as "Pending" which means an offer has been accepted and a closing date is scheduled: Single Family 9, Condo 3, Townhome 7 and villas 0.

The number of properties sold since July 1, 2007 meaning a closing has taken place: Single Family 19, Condo 8, Townhome 6 and villas 2.

For Single Family homes, the average of the number of days on the market is 80.78 of those properties that have sold.

The average sales price of Single Family homes is $281,284 with a high of $455,000 and a low of $150,000.

Compared to Pinellas County with 8,821 Single Family homes currently on the market and 100 average days on the market, our statistics don't look that bad for a city with a population of a little over 23,000. The home sales in Tarpon Springs since July 2007 represent 4% of the total homes sold in Pinellas County.

With many new and attractive mortgage programs for First Responders (Nurses, CNAs, EMTs, Police, Firemen) and those job types representing the largest percentage of Tarpon Springs residents, I am encouraged that this is a destination area for many buyers considering a purchase soon.

I remain positive and upbeat in the face of these statistics. A recent report from the Florida Association of Realtors comments that over 1/3 of all realtors have left the business in pursuit of other careers. Those of us still in the field have re-committed ourselves to working hard for our clients to produce results.

For those of you whom I represent, please know we haven't stopped working for you. In fact, we've doubled our efforts and we know you'll be happy and satisfied in the end. As difficult as it is for many sellers, remember we don't get a paycheck until we sell something so we feel your pain!

We're in it for the long-haul and you can count on us.

In the doghouse......

Landmark Real Estate Specialists is pleased to announce the launch of our new service program called "My Pet's Home". This is a pet-friendly real estate service for buyers and sellers.

When you're a pet owner, your animals mean the world to you and we understand that. We have pets of our own! Owning an animal can create special needs and criteria when searching for or selling a home. For this reason, we've launched our MY PET'S HOME Specialty Services for our clients (two-legged and four or more).

FOR BUYERS
We know this area better than most companies. We know which deed-restricted communities and condominium units welcome pets, the weight restrictions and the breed restrictions. We also offer information on:

Local area Dog Parks
Experienced and competent Veterinarians
Emergency Animal Hospitals
Hurricane Evacuation Zones and shelters accepting pets
Highly experienced Pet Sitters/Walkers

FOR SELLERS

Showing a home where pets live can be stressful for the pets, the potential buyers and the buyer's agent. Special considerations must be made for those times when you can't be home with your pet, but your house must be shown.

We'll take time to get to know your animal so they feel comfortable with us. If necessary, we can spend time with them, comforting and playing with them while your house shows to potential buyers. We'll make sure they are safe, secure and happy when we leave them. You'll have peace of mind knowing your animals aren't upset by strangers in their home and won't accidentally get out to run free in the neighborhood.

Additionally, when you work with us through the MY PET'S HOME program, we will donate a portion of our commission toward homeless pet charities or the pet charity of your choice.

We understand your special needs and we're ready to help. Always on the cutting edge, we are one of the VERY few companies to offer these services and we're happy to offer them ABSOLUTELY FREE!



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Name that tune......

Ever wake up in the morning with a song in your head? It plays over and over - not the entire song; maybe just a verse or two. You find yourself humming the tune or singing the chorus all day.

I woke up this morning with a thought instead. In my head, I keep hearing "the market is back". I believe it, and I conduct my business that way. I believe that there are people with true real estate needs looking right now to buy something. I believe there are people who must sell a home and need true guidance.

Buyers must listen to their inner voices also. If you want certain contingencies in a purchase contract, ask for them! Sellers might think they would like to see their agent do something extra or advertise in a different way - they should speak up!

Just listen to that music playing in your head. It will be a good day.

The FEDs step in...finally.......

Yesterday was a highly volatile but poignant day on Wall Street. With news that the overseas stock markets were plunging before the opening bell in New York, stocks here plummeted in the early morning hours of trading. But the Federal Bank had a plan and it could mean revision and some much needed relief for the housing market.

The FED lowered the discount rate, or the interest rate that banks pay to buy money from the government. This is important because it is a chief index by which mortgage companies and banks measure their own interest rates. This means the banks and mortgage companies are paying less to loan money to borrowers. It's something we've needed for quite a while, but it seems the Federal Reserve chief, Ben Bernenke, has been quite a bit more conservative than our old friend Alan Greenspan. He has adopted a "wait and see" mentality while many have been struggling with foreclosure and an inability to refinance.

So what does this mean in the long haul? It means that consumers trapped in adjustable rate mortgages will finally see the life boat and buyers waiting out the mortgage market are likely to hop on that life boat and purchase. This is not a long-term fix, but certainly a long overdue stimulant that may create a sense of normalcy in the housing market and spark some activity.

While the media remains skeptical at best regarding the housing market, I see this as an opportunity for first-time homebuyers to get a lot of house for a very little bit of money and with a stunning interest rate. While FHA loans have become increasingly popular over the past few months, we will start to see more consumers obtaining conventional mortgages still at historically low interest rates. Banks will also begin to romance the consumers once more to borrow. And with appreciation climbing slowly in this state, the deals are there for the taking.

You may have heard that median prices of homes in Florida have fallen about 30%, but the media does not go one step further in telling you that median prices ROSE 50% in 2004 which was an anomaly. I keep saying we are back to normal and it doesn't seem that too many buyers are listening.

I peruse other real estate blogs of note to keep my finger on the pulse of the consumers. I read a posting yesterday saying that sellers should "stop listening to your realtor! your house is overpriced and won't sell." I was forced to respond. I've said time and time again that Realtors (capital R) don't price homes, the market does. And there are still unreasonable sellers out there who believe they can turn back the hands of time and make a killing on the house they purchased just 3 years ago. It's not going to happen. The people selling in this market should only be the people who NEED to sell. But the buyers win because they can get lots more house for less money.

All in all, good news. And as the Presidential primaries approach, things should get even better.

No insurance for you........

For buyers who are in contract to purchase a home or those contemplating a purchase, hurricane season sometimes throws a monkey wrench into your otherwise smooth transaction.

Imagine looking at the state of Florida on a map. Now imagine a large box enclosing the entire state and most of the coastal waters. Whenever there is a "named" storm within that box, the insurance agencies in Florida cease to write new policies. Once the named storm has left the box, the insurance agencies will again begin to write new policies AFTER TWO BUSINESS DAYS HAVE ELAPSED!

Let me tell you how this can play out through a real example. In the Summer of 2004, I recall a day where a named storm had passed two business days prior and another was headed into the "box". I was trying to obtain insurance for a client who had an upcoming closing. On this day, the insurance companies were writing policies for exactly 49 minutes! Try getting through to your insurance agent within that small window of opportunity!

The moral of the story is that especially during hurricane season, bind and purchase your insurance immediately. Don't wait for closing day or close to it or you could find yourself stuck in the box.

Preapproval pitfall.......

One of the most problematic pieces of the property-buying process these days is the financing contingency. Basically, this contingency says to the seller the buyer will buy his house contingent on the purchasers' ability to get a loan to finance it.

The financing contingency paragraph may give 7 to 14 days for the buyer to remove the contingency. If the buyer is successful, then the transaction moves toward closing. If not, the seller could have a null and void contract or he could be looking at a buyer in default.

The financing contingency paragraph (FCP) is very important. It's fraught with deadlines and I've seen a lot of agents get buyers and sellers wrapped around the axle on this one by mistake and cause some to lose money and others file lawsuits. It can be used as a means to hold the buyer to the contract, but it can also be used as a means by which the buyer can get out of a contract.

The FCP involves the buyer, seller and loan officer -- and possibly more parties depending on what type mortgage product you're looking over. If the house being sold is involved in a short-sale or foreclosure, the FCP may need to be accepted by a third party, not just the seller, before the contract is ratified.

In most contracts, the buyer puts up an earnest money deposit -- usually about 1 percent of the sales price of the house, but it could be more or less depending on the customary amount in your area. Nevertheless, if the buyer defaults on the contract (which could happen in various ways), the seller may have a right to keep the earnest money deposit. Again, this could be thousands of dollars.

One way the default could happen is through the FCP. So here are a few steps to keep in mind in removing this contingency and keeping your deposit safe and the transaction on track.
Apply for and get pre-approval for a mortgage before making an offer. This is so important in today's market. Even though you may have been watching home prices drop in the last few months, the price of money has not. It's been getting more expensive. Thus, if you apply for your mortgage before you've even gotten into the contract-writing process, then you'll already know your buying power, the lender will have already looked at the blemishes on your credit and verified your income and assets.

Name it and Claim it. Many contracts I've seen require the buyer to stipulate up front what type of loan will be used to purchase the house. This is so the seller can determine if the buyer is high risk or not and if they have generally good credit. Unless the property is being purchased with all cash, this part of the contract will most likely be filled out. It may stipulate if the loan is a conventional (or conforming) mortgage, or if it's a special type program such as FHA or VA (government-financed programs). Since you have to name the loan type of front -- be sure to carry out step 1 above.

Be honest about your credit history, your income and your assets. If you make $45,000 a year and UP TO $10,000 in bonuses -- that doesn't necessarily add up to a $55,000 income. If the lender writes your letter based on your stated income of $55,000, then only $46,000 can be verified once you've written your contract, then you may not be able to get the preferred lending rate and terms -- ergo, you may not qualify. While you may not be in default, it means you have to start all over again.

If your application starts going south, let the seller's agent know about it as soon as possible. The facts are the facts. If the lender starts letting you know you may not get your loan approved, don't keep it a secret. The seller needs to know so he can decide on whether or not to give the buyer more time or to cut bait and get back on the market.

In essence, get the money part of your home-buying process wrapped up early. If you know what you qualify for in the beginning and you now what credit problems you have, these won't be a surprise on the back side, leaving you with few options and possibly less money.

Foreclosure purchase isn't always smart........

When I work with a buyer exploring a foreclosure purchase, it reiterates how many people look at foreclosure as a rags-to-riches proposition that will leave them with the golden egg-laying goose, but one that doesn't require basic care of the goose -- food, shelter, protection from wolves, etc.

Such was the case of this potential buyer who said she was looking to buy her first home.
"I found one house that the real estate agent said was bank owned, sold as is, a fixer-upper. It is reasonably priced with little information but it foreclosed. The house was dirty and filled with stuff. They said the garbage will be emptied. They were unable to tell me much about utilities and said a home inspector would not be able to check it. The electricity is turned off."
"Are there disclosure laws? What information can I insist on getting if I paid the expenses. What arrangements can be made to check without buying it first? Who is the best person to talk to in these situations? We are looking for a place to live in and fix for a few years then be able to sell. I am unsure if it is worth looking into."

Where do I start?

You will find with most foreclosure properties, also known as REO's (or pre-foreclosures, also known as short-sales), that they are dirty, have a lot of junk inside them, are in disrepair and there's limited information. You may also be stuck with unpaid utility bills. You call the water department or electric company to have your service connected and find you must pay hundreds of dollars in overdue balances in order to restore service to the property. That's right, the balance doesn't follow the homeowner, it follows the property.

Think it through. If you're not making your mortgage payment, then that means you are in financial stress. If you're in financial stress, that means you have only enough money to pay the grocer. If all you have is money for groceries, then you're not going to pay for a cleaning lady, roofer, painter, creditors -- and lastly, the lender. Get the picture?

It's trickle-down economics, but in reverse.

Do you get to inspect a property before you buy it? For some lenders, yes. But it's usually not part of the contingency section, meaning, if you agree to buy the house, you get it in its current condition, no exchanges or substitutions allowed. You get the soiled carpet, busted a/c, vermin infestation, etc. What you get in exchange is a house that is truly under the market as far as pricing is concerned, and you get to add some repairs and sweat-equity to create a healthy financial gain.

While there are state-mandated disclosure laws in most states, you may be waiving those rights in the huge bank-owned addendum, which is an as-is monstrosity. It eliminates nearly every protection a buyer has in a Realtor-written pre-printed contract, except that you get your deposit back if for some reason the seller cannot perform on the contract.

Read the fine print. Read the fine print. Read the fine print.

Since most REO property representatives take a long time to make a decision on their contracts, time is really not of the essence (practically speaking) and you have the time to pour over the contract, addenda and clauses. Do it. Your bank account and future peace of mind may depend on it.

The best person to talk to when looking up these type properties is an agent who has walked that path before and can truly point out the pitfalls and tar pits you need to avoid. Every lender's contract and property is different. They are not written in a manner like the Realtor contracts that are customary and pretty much the same house to house.
You can try to talk with the bank representatives and listing agents, but many times they are non-responsive and not very consumer friendly.

That means you need a buyer agent more than on any other type of transaction when you're talking foreclosure and/or short sale that is being offered online or in the Realtor MLS. Don't make the mistake of trying to go it alone.

Renovation........

George-
Thanks for the blog! I read it every day and I appreciate the information. We are going to be placing our home on the market and want to do some renovation. What areas are the most important?
Katy D. - Austin, TX

When you're ready to spend money on a serious renovation of your home in preparation for sale, think about the home inspection. Do you think it's going to reveal some repairs that you already know about? Definitely make those repairs.

Spend the largest amount of money in the kitchen and bathroom. These are the areas of the home where people feel the most emotion. They want to picture their families gathered in the kitchen on holidays, or preparing a romantic meal. The bathroom is a place of solace and privacy - does it feel that way or is it just functional?

Fresh paint always helps! Inside and out, does your home "pop"? Have the carpets cleaned.

You can almost guarantee that the money you spend in these strategic areas will return to you in the sale price.

Enjoy your Sunday!