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.