On the Florida ballot in 2010 is Amendment 4 to the Florida constitution requiring voters to approve all local comprehensive land use plan changes. The “vote on everything” amendment has been written by some of the states most extreme special interest groups. The group has tried and failed three times to place their amendment on the ballot and have finally found enough signatures to qualify.
Being passed off as an advocate for “Hometown Democracy,” “Amendment 4” to the status quo is more appropriate. In fact, this amendment would have required an average of over 10,599 additional local votes per year in Florida, and had Amendment 4 been in place in 2006, the voters of Carrabelle - a small Franklin County town - would have seen 617 separate questions in a single ballot!
For more information on this issue refer to: www.florida2010.org.
Tuesday, November 24, 2009
Tuesday, November 17, 2009
Location, Location, Location?
There have been three key words that have surrounded the world of real estate since its beginning. They have defined good investment decisions, home buying decisions, and become a rule of thumb for everyone from first time homebuyers to billionaire tycoons. Location, Location, Location has been the keystone for every real estate purchase. Now, with the tides changing to a slower marketplace in a down economy these words have also begun to evolve. In our current residential marketplace in Central Florida those words have become Price, Price, Price.
We have seen time and time again, great homes, in great locations sit vacant for months and months. On the flip side, we have seen subpar homes, in mediocre neighborhoods receive three and four offers the first day on the market. This has become a trend that is carrying across all price ranges in all neighborhoods. There are a few reasons for this trend. First, buyers are more educated now than they ever have been in the past. The internet has allowed buyers to search through all the available homes on the market without ever leaving their couch. By the time they get out and begin physically looking at properties they are so aware of what it is they are looking for that they are much quicker to write an offer. The key to getting these offers is to have it priced at a point where they are willing to schedule a physical showing. Secondly, investors are a pocket of buyers that have not previously been competing with residential home buyers. Investors can smell value before it hits the MLS and are prepared to write an offer, sometimes, sight unseen.
With all this being said, if you are attempting to sell a home you need to be aware of the circumstances. Pricing for a quick sale does not mean a cheap sale. Well educated buyers are willing to pay market value for a home. Often times sellers price a home with “negotiating room” which leads to them losing much of their buyers market and ultimately taking less for their property due to a lack of demand. Weary sellers can’t negotiate well and never will. Get the most out of your sale by competitively pricing your home.
Keep the new rule of thumb in mind. PRICE, PRICE, PRICE!
We have seen time and time again, great homes, in great locations sit vacant for months and months. On the flip side, we have seen subpar homes, in mediocre neighborhoods receive three and four offers the first day on the market. This has become a trend that is carrying across all price ranges in all neighborhoods. There are a few reasons for this trend. First, buyers are more educated now than they ever have been in the past. The internet has allowed buyers to search through all the available homes on the market without ever leaving their couch. By the time they get out and begin physically looking at properties they are so aware of what it is they are looking for that they are much quicker to write an offer. The key to getting these offers is to have it priced at a point where they are willing to schedule a physical showing. Secondly, investors are a pocket of buyers that have not previously been competing with residential home buyers. Investors can smell value before it hits the MLS and are prepared to write an offer, sometimes, sight unseen.
With all this being said, if you are attempting to sell a home you need to be aware of the circumstances. Pricing for a quick sale does not mean a cheap sale. Well educated buyers are willing to pay market value for a home. Often times sellers price a home with “negotiating room” which leads to them losing much of their buyers market and ultimately taking less for their property due to a lack of demand. Weary sellers can’t negotiate well and never will. Get the most out of your sale by competitively pricing your home.
Keep the new rule of thumb in mind. PRICE, PRICE, PRICE!
Thursday, November 5, 2009
Tax Credit Passes House and Senate
"WASHINGTON – Nov. 5, 2009 – The $8,000, first-time homebuyer tax credit has not yet been extended beyond its Nov. 30 end date, but it’s very close to gaining a longer life.
The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.
Until the president signs the bill, however, it is not law.
In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.
Florida downpayment assistance
After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a downpayment and closing costs assistance program relating to the federal tax credit –automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund."
The extension was added as an amendment to an existing bill, HR 3548, that extends unemployment benefits. The U.S. Senate passed that bill on Wednesday and, after debate, the U.S. House passed HR 3548 this afternoon. It now needs only President Obama’s signature to become law, and the White House has indicated it will sign it, perhaps as early as tomorrow.
Until the president signs the bill, however, it is not law.
In addition to extending the tax credit for first-time homebuyers under the current rules, the bill adds a smaller tax credit for move-up homebuyers who have lived in the house for five of the past seven years. The bill also increases the income limits of homebuyers from $75,000 (single) to $125,000; and from $150,000 (married) to $225,000.
Florida downpayment assistance
After the president signs the bill and extends the tax credit, the Florida Homebuyer Opportunity Program – a downpayment and closing costs assistance program relating to the federal tax credit –automatically gets extended too. The state still has about $28 million available for homebuyers. The money is essentially a loan to first-time buyers; they receive it upfront, use it for a downpayment or other costs, and pay it back once they get their federal refund."
Tuesday, October 6, 2009
Money in the toilets...
WASHINGTON – Oct. 6, 2009 – More than 80 percent of new single-family homes have at least two bathrooms, which occupy an average of 300 square feet of floor space, or 12 percent of the total area, according to a study by the National Association of Home Builders.
The home builders’ study reports a major return on value for extra bathrooms: “When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home’s value, and one additional bath adds about 19 percent.”
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A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a homebuyer at least 100 percent of the outlay when the property is sold, the homebuyer study concludes.
http://www.floridarealtors.org/
The home builders’ study reports a major return on value for extra bathrooms: “When the number of bathrooms is approximately equal to the number of bedrooms, an additional half-bath adds about 10 percent to the home’s value, and one additional bath adds about 19 percent.”
A mid-range bathroom remodel, which costs $10,500 on average nationwide, repays a homebuyer at least 100 percent of the outlay when the property is sold, the homebuyer study concludes.Monday, September 21, 2009
2009 First-Time Home Buyer Tax Credit Facts
Who is Eligible
• The $8,000 tax credit is available for first-time home buyers only.
• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
• All U.S. citizens who file taxes are eligible to participate in the program.
Payback Provisions
• The tax credit is a true credit. It does not have to be repaid.
• The only repayment requirement is if the home owner sold the home within three years after the purchase.
Income Limits
• Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000.
• For married couples filing a joint return, the income limit doubles to $150,000.
• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
• Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
• The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.
Effective Dates for the Tax Credit
• First-time home buyers would receive an $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.
Tax Credit is Refundable
• A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference.
• For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment from the government.
• If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000 ($1,000 plus $8,000 from the home buyer tax credit).
• Buyers can take the tax credit on their 2008 or 2009 income tax return.
Types of Homes that Qualify for the Tax Credit
• All homes, whether single-family, townhomes or condominium apartments will qualify, provided that the home will be used as a principal residence and the buyer has not owned a principal residence in the prior three years. This also includes newly-constructed homes.
For more details on the tax credit, go to www.federalhousingtaxcredit.com
• The $8,000 tax credit is available for first-time home buyers only.
• The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit is a true credit. It does not have to be repaid.
• The only repayment requirement is if the home owner sold the home within three years after the purchase.
Income Limits
• Home buyers who file as single or head-of-household taxpayers can claim the full $8,000 credit if their modified adjusted gross income (MAGI) is less than $75,000.
• For married couples filing a joint return, the income limit doubles to $150,000.
• Single or head-of-household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first-time home buyer tax credit.
• Married couples who earn between $150,000 and $170,000 are eligible to receive a partial first-time home buyer tax credit.
• The credit is not available for single taxpayers whose MAGI is greater than $95,000 and married couples with a MAGI that exceeds $170,000.
Effective Dates for the Tax Credit
• First-time home buyers would receive an $8,000 tax credit for the purchase of any home on or after January 1, 2009 and before December 1, 2009. To qualify, you must actually close on the sale of the home during this period.
Tax Credit is Refundable
• A refundable credit means that if you pay less than $8,000 in federal income taxes, then the government will write you a check for the difference.
• For example, if you owe $5,000 in federal income taxes, you would pay nothing to the IRS and receive a $3,000 payment from the government.
• If you are due to receive a $1,000 tax refund from the government, your refund would grow to $9,000 ($1,000 plus $8,000 from the home buyer tax credit).
• Buyers can take the tax credit on their 2008 or 2009 income tax return.
Types of Homes that Qualify for the Tax Credit
• All homes, whether single-family, townhomes or condominium apartments will qualify, provided that the home will be used as a principal residence and the buyer has not owned a principal residence in the prior three years. This also includes newly-constructed homes.
For more details on the tax credit, go to www.federalhousingtaxcredit.com
Monday, September 14, 2009
Understanding the Appraisal Issue
In today’s market, there are many obstacles you are faced with when buying and selling a home. One of the major topics of the moment is appraisals. Now what would an appraisal have to do with buying or selling a home?
The appraisal is the keystone for lenders to base their lending limits on, aside from the buyer’s personal financial situation. Every purchase contract is going to have a financing clause that states:
There are four options when this situation occurs.
1) The buyer can bring cash over an above the down payment amount and pay the difference, still being able to attain a mortgage on the appraised value.
2) The seller can reduce the purchase price to the appraisal price.
3) They can do a combination of 1 & 2.
4) Or, elect not to proceed with the purchase and sell of the property.
In this situation, if you are the seller your options are limited to reaching an agreement, not selling, or waiting in hopes of a cash buyer that will pay the difference. The main reason is due in fact to FHA rulings stating that FHA appraisals will remain attached to a property for a 6 month period. This means, depending on your circumstance you must be willing to reduce your sell price to appraisal value.
Buyer’s at times end up reaching a better deal because of this little contingency, but many deals are falling apart because neither party has the means to negotiate up or down. Most FHA buyers are only putting 3.5% down for a reason.
The moral of the story is be careful regardless of which side you are on, because going through negotiations, inspections, and planning how you are going to arrange your living room furniture, only to find out that you are paying well over market price for a home is not a comfortable scenario. Stay away from outrageously priced homes with sellers hesitant to negotiate. The well priced homes are out there they just don’t tend to hang around very long.
The appraisal is the keystone for lenders to base their lending limits on, aside from the buyer’s personal financial situation. Every purchase contract is going to have a financing clause that states:
Buyer will apply for new financing at the prevailing interest rate and loan costs based on Buyer’s creditworthiness…the Seller will be entitled to retain the deposits if the transaction does not close by the Closing Date unless (1) the Property appraises below the purchase price and either the parties agree on a new purchase price or Buyer elects not to proceed.
There are four options when this situation occurs.
1) The buyer can bring cash over an above the down payment amount and pay the difference, still being able to attain a mortgage on the appraised value.
2) The seller can reduce the purchase price to the appraisal price.
3) They can do a combination of 1 & 2.
4) Or, elect not to proceed with the purchase and sell of the property.
In this situation, if you are the seller your options are limited to reaching an agreement, not selling, or waiting in hopes of a cash buyer that will pay the difference. The main reason is due in fact to FHA rulings stating that FHA appraisals will remain attached to a property for a 6 month period. This means, depending on your circumstance you must be willing to reduce your sell price to appraisal value.
Buyer’s at times end up reaching a better deal because of this little contingency, but many deals are falling apart because neither party has the means to negotiate up or down. Most FHA buyers are only putting 3.5% down for a reason.
The moral of the story is be careful regardless of which side you are on, because going through negotiations, inspections, and planning how you are going to arrange your living room furniture, only to find out that you are paying well over market price for a home is not a comfortable scenario. Stay away from outrageously priced homes with sellers hesitant to negotiate. The well priced homes are out there they just don’t tend to hang around very long.
Listing Leaders
Coldwell Banker Residential Real Estate’s August Sales and Listings Leaders
Winter Springs, FL, (September 14, 2009) – Anne-Marie Wurzel was named sales leader and Cheryl and Justin Core were named listings leader at Coldwell Banker Residential Real Estate’s Winter Springs office. Anne-Marie Wurzel, Cheryl and Justin Core may be reached at the Winter Springs office at 407-696-8000.
About Coldwell Banker Residential Real EstateColdwell Banker Residential Real Estate (FloridaMoves.com), is the leading real estate brokerage company in Florida, serving the communities of Central Florida, Palm Beach, Southeast Florida, Southwest Florida and Tampa Bay. Coldwell Banker Residential Real Estate is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT, a subsidiary of Realogy Corporation, operates Realogy’s company-owned real estate brokerage offices.
For more information, visit our Web site, www.FloridaMoves.com/WinterSprings
and www.FloridaMovesNews.com
Any house. Any time. Anywhere.
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