Amendment 1, regarding property taxes here in Florida has passed to the delight of its supporters.
While it may not be the total relief we were looking for, it's a start on the road to recovery and relief for people who may have been stuck in homes. The portability of the Save-Our-Homes cap alone, in my opinion, could spark some interest in the real estate market.
David Denslow, research economist at the University of Florida, predicted a "little kick-up" from tax reform. Based on the experience of Proposition 13, California's own experiment with tax reform, portability modestly improved housing sales. But California limited the benefit to people ages 55 or older. Florida imposes no such age restrictions.
"If they had a $300,000 house that declined in price to $250,000, this may kick it up to $260,000," Denslow said of the potential Florida impact.
Denslow, with a team of other economists, wrote a study last year that addressed the issue of "lock-in" -- people forced to stay in existing homes because of the tax advantages.
The phenomenon seems real. The study said a Pinellas County home with $100,000 in accrued tax-assessment savings was 8.4 percent less likely to sell. In Hillsborough County, such a home was 6.3 percent less likely to sell.
Florida State University economist David MacPherson, an Amendment 1 critic, said the people most likely to benefit from property tax portability -- those with long tenure in their homes -- are least likely to sell.
So, pros or cons, it's SOMETHING. And I choose to take it as a positive step toward recovery.
Thursday, January 31, 2008
Tuesday, January 29, 2008
Won't you give me three steps - give me three steps, Mister.....
3 steps to take before buying a home
A little time spent shoring up your credit, crafting your budget and organizing financial documents will go far in smoothing the way to a home purchase. Ideally, you can start working on your home-buying project before you even start shopping for homes. Keep in mind that most buyers take eight weeks to actually shop for a home, according to a survey by the National Association of Realtors. Your financial prep work should start well ahead of those eight weeks.
"My advice is to start to talk to your local Realtor six months ahead of time," says Pat Vredevoogd Combs, a practicing residential broker in Grand Rapids, Mich., and president of the National Association of Realtors. "Most have a good handle on mortgage people in the area. And, there are a lot of really cool mortgage programs out there for first-time buyers."
3 steps to take before applying
1.
Get your credit in shape.
2.
Organize your documents.
3.
Check your budget.
For example, Combs says some local governments will offer interest rate or down payment subsidies to buyers who agree to buy a home in certain areas. And governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities.
A hospital trying to recruit and retain nurses, for example, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed with the hospital for several years, says Combs.
Before you begin your house hunting, there are three important steps to take to make sure you are eligible for the best interest rates and to make the mortgage application process a breeze.
1. Get your credit in shape: Order your credit reportsOne of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law. While there are many sites on the Web offering "free" credit reports, many of those offers require that you sign up for a free trial of a credit-monitoring service that will cost money if you fail to cancel during the free trial period. The official site where you can get free, no-strings-attached credit reports annually from the Equifax, Experian and TransUnion credit bureaus is www.annualcreditreport.com. You can receive one free credit report from each of these three agencies every year.
David Reed, an Austin, Texas, mortgage banker and author of "Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You," says you should review each of those reports for errors. There could be mistaken entries noting late payments or account information that belongs to someone else. Common names sometimes get mixed up on credit reports, as do "Juniors" and "Seniors" in the same family.
"I see that a lot," says Reed.
If you spot an error, you should write to that specific creditor and request a correction. Bankrate has a work sheet to help you request and track corrections on each of your credit reports.
How's your credit?
While paying down your credit card balances will improve your financial picture, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.
"Don't assume you should just get rid of it," says Combs.
If you already own a home and have an existing home equity line of credit, or HELOC, Combs recommends that you not get rid of it in preparation for a new home purchase. "I think you ought to leave it alone. Sometimes buyers are going to need it; they can use it as an easy bridge loan (to cover the down payment temporarily until you sell the old home) so they don't have to go through the trouble of getting one."
2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements. Having those documents handy will also help you put together a realistic budget and help you figure out what you really can afford to pay as a down payment and toward subsequent monthly payments for mortgage principal and interest, plus property taxes and insurance.
Documents to gather:
•
Tax returns for the past two years.
•
W-2 income statements.
•
Two most recent pay stubs.
•
Most recent credit-card statements.
•
Most recent bank and investment account statements.
•
Divorce decrees and child support documents.
•
Your budget.
3. Craft a budget: How much house can you afford?
There is a difference between the maximum payment a borrower can qualify for -- which can sometimes be surprisingly high -- and the amount you can comfortably afford, says Combs.
"Each person has to know the difference in his own mind," she says. "If you're just getting by with your current rent payment, and the lender says you can qualify for more, give it some thought."
However, first-time buyers, in particular, often don't know how the tax-deductibility of mortgage interest and property taxes can help offset a mortgage payment that is higher than their rent. A good real estate agent can help you figure out the bottom line.
Keep it steady
Once you're closing in on your purchase, and especially after you've applied for a mortgage, do your best not to change your financial picture. "When you sit at the closing table, you will be asked to sign a document that says your credit is the same as it was when you originally applied for the loan," says Combs.
If at all possible, put off job changes. Lenders like to see a steady history of employment and frown on job changes while your application is pending, unless the new job is in the same field and at the same or greater pay.
A little time spent shoring up your credit, crafting your budget and organizing financial documents will go far in smoothing the way to a home purchase. Ideally, you can start working on your home-buying project before you even start shopping for homes. Keep in mind that most buyers take eight weeks to actually shop for a home, according to a survey by the National Association of Realtors. Your financial prep work should start well ahead of those eight weeks.
"My advice is to start to talk to your local Realtor six months ahead of time," says Pat Vredevoogd Combs, a practicing residential broker in Grand Rapids, Mich., and president of the National Association of Realtors. "Most have a good handle on mortgage people in the area. And, there are a lot of really cool mortgage programs out there for first-time buyers."
3 steps to take before applying
1.
Get your credit in shape.
2.
Organize your documents.
3.
Check your budget.
For example, Combs says some local governments will offer interest rate or down payment subsidies to buyers who agree to buy a home in certain areas. And governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities.
A hospital trying to recruit and retain nurses, for example, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed with the hospital for several years, says Combs.
Before you begin your house hunting, there are three important steps to take to make sure you are eligible for the best interest rates and to make the mortgage application process a breeze.
1. Get your credit in shape: Order your credit reportsOne of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law. While there are many sites on the Web offering "free" credit reports, many of those offers require that you sign up for a free trial of a credit-monitoring service that will cost money if you fail to cancel during the free trial period. The official site where you can get free, no-strings-attached credit reports annually from the Equifax, Experian and TransUnion credit bureaus is www.annualcreditreport.com. You can receive one free credit report from each of these three agencies every year.
David Reed, an Austin, Texas, mortgage banker and author of "Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You," says you should review each of those reports for errors. There could be mistaken entries noting late payments or account information that belongs to someone else. Common names sometimes get mixed up on credit reports, as do "Juniors" and "Seniors" in the same family.
"I see that a lot," says Reed.
If you spot an error, you should write to that specific creditor and request a correction. Bankrate has a work sheet to help you request and track corrections on each of your credit reports.
How's your credit?
While paying down your credit card balances will improve your financial picture, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.
"Don't assume you should just get rid of it," says Combs.
If you already own a home and have an existing home equity line of credit, or HELOC, Combs recommends that you not get rid of it in preparation for a new home purchase. "I think you ought to leave it alone. Sometimes buyers are going to need it; they can use it as an easy bridge loan (to cover the down payment temporarily until you sell the old home) so they don't have to go through the trouble of getting one."
2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements. Having those documents handy will also help you put together a realistic budget and help you figure out what you really can afford to pay as a down payment and toward subsequent monthly payments for mortgage principal and interest, plus property taxes and insurance.
Documents to gather:
•
Tax returns for the past two years.
•
W-2 income statements.
•
Two most recent pay stubs.
•
Most recent credit-card statements.
•
Most recent bank and investment account statements.
•
Divorce decrees and child support documents.
•
Your budget.
3. Craft a budget: How much house can you afford?
There is a difference between the maximum payment a borrower can qualify for -- which can sometimes be surprisingly high -- and the amount you can comfortably afford, says Combs.
"Each person has to know the difference in his own mind," she says. "If you're just getting by with your current rent payment, and the lender says you can qualify for more, give it some thought."
However, first-time buyers, in particular, often don't know how the tax-deductibility of mortgage interest and property taxes can help offset a mortgage payment that is higher than their rent. A good real estate agent can help you figure out the bottom line.
Keep it steady
Once you're closing in on your purchase, and especially after you've applied for a mortgage, do your best not to change your financial picture. "When you sit at the closing table, you will be asked to sign a document that says your credit is the same as it was when you originally applied for the loan," says Combs.
If at all possible, put off job changes. Lenders like to see a steady history of employment and frown on job changes while your application is pending, unless the new job is in the same field and at the same or greater pay.
Saturday, January 26, 2008
Open the Floodgates.....
My phone has begun to ring off the hook! Not that it's on a hook and not that it rings. But you get the picture.
Something has broken loose over the past few weeks and buyers are coming out of the woodwork. Perhaps it's the rate cuts provided by the FED. Perhaps it's because the holiday season is over and people are ready to get serious about real estate again.
Whatever the reason, I have a feeling that those buyers who have been sitting on the fence should hop on the bandwagon and start buying. I have another feeling that the market is slowly shifting back to a seller's market. Yes, there are still tons of pre-foreclosure and short sale properties available, but those desirable properties that have lowered their prices to rock bottom are going to be in high demand, and I believe the prices will start to climb again.
I'm no psychic, but it seems like people are clamoring to see a few of my properties and I'm only one agent. Imagine that activity happening for all agents in the area!
It's a good time to buy now.
Something has broken loose over the past few weeks and buyers are coming out of the woodwork. Perhaps it's the rate cuts provided by the FED. Perhaps it's because the holiday season is over and people are ready to get serious about real estate again.
Whatever the reason, I have a feeling that those buyers who have been sitting on the fence should hop on the bandwagon and start buying. I have another feeling that the market is slowly shifting back to a seller's market. Yes, there are still tons of pre-foreclosure and short sale properties available, but those desirable properties that have lowered their prices to rock bottom are going to be in high demand, and I believe the prices will start to climb again.
I'm no psychic, but it seems like people are clamoring to see a few of my properties and I'm only one agent. Imagine that activity happening for all agents in the area!
It's a good time to buy now.
Thursday, January 24, 2008
I'm still alive.....
Thought I fell off the face of the earth, didn't you? No. Just a Hawaiian vacation - and well deserved I think.
Give me a day to recover and I'll be back!
G
Give me a day to recover and I'll be back!
G
Saturday, January 5, 2008
Step 7: Make an offer.....
REALTOR® groups, working with legal counsel, have developed forms that are appropriate for realty transactions in specific communities. Such documents include numerous sale conditions and their wording should be carefully reviewed to assure that they reflect the terms you want to offer. REALTORS® can explain the general contracting process in your community as well as his or her role. While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers -- or additional costs. Terms are extremely important and should be carefully reviewed.
How much?
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer. Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.
How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections. Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
How much?
You sometimes hear that the amount of your offer should be x percent below the seller's asking price or y percent less than you're really willing to pay. In practice, the offer depends on the basic laws of supply and demand: If many buyers are competing for homes, then sellers will likely get full-price offers and sometimes even more. If demand is weak, then offers below the asking price may be in order.
How do you make an offer?
The process of making offers varies around the country. In a typical situation, you will complete an offer that the REALTOR® will present to the owner and the owner's representative. The owner, in turn, may accept the offer, reject it or make a counter-offer. Because counter-offers are common (any change in an offer can be considered a "counter-offer"), it's important for buyers to remain in close contact with REALTORS® during the negotiation process so that any proposed changes can be quickly reviewed.
How many inspections?
A number of inspections are common in residential realty transactions. They include checks for termites, surveys to determine boundaries, appraisals to determine value for lenders, title reviews and structural inspections. Structural inspections are particularly important. During these examinations, an inspector comes to the property to determine if there are material physical defects and whether expensive repairs and replacements are likely to be required in the next few years. Such inspections for a single-family home often require two or three hours, and buyers should attend. This is an opportunity to examine the property's mechanics and structure, ask questions and learn far more about the property than is possible with an informal walk-through.
Tuesday, January 1, 2008
Happy New Year......
We wish you all a prosperous and joyous New Year. I know that 2008 will be a year that will bring great positive change for everyone. We have plenty to look forward to this year.
Get ready to watch us move to the head of the pack this year with some exciting innovations in the business of real estate!
But don't be surprised; we told you we were the best.
Happy New Year!
Get ready to watch us move to the head of the pack this year with some exciting innovations in the business of real estate!
But don't be surprised; we told you we were the best.
Happy New Year!
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