The Lake Mary / Heathrow Florida Real Estate Blog

In Tallahasse Florida the Florida Legislature buzz is  focusing on the the new real estate tax reform.  Many of the homeowners who own a home in Florida these changes may directly affect your 2008 tax bill.

Growth is a two-edged sword, and our Florida State congress has been trying to come up with a solution to the property tax crisis.  This crisis was created by the massive appreciation we homeowners have benefited from the last few years.

The proposed changes come in two chapters.  The first is referred to as House Joint Resoluton 1B, or HJR1B for short. Though HJR1B is worthy of notation, the real debate falls under Representative Cannon’s “Property Tax: Constitutional Relief and Reform” or HJR3B.  This article will be the focus of the remainder of this article.  The changes, if the amendment is passed on January 29, 2008 are as follows:

Owners of property in the state of Florida will have the ability to choose how their property will be taxed.  They can stay with the current “Save Our Homes” exemption or replace it with the new “Super Exemption.”  Here is how the Super Exemption will work:

Level 1 :  Homesteaded property will receive an exemption of 75% of the first $200,000 in value of the home.  The minimum exemption is $50,000 per homestead.

Level 3 :  In addition to Level 1, homstead property will obtain another 15 percent exempton for the nex $300,000 in value.

Should the constitutional amendment receive voter approval, homestead property owners will continue to receive the benefits under the present Save Our Homes cap unless the owner elects the “super sized” homestead exemption.   A convenient tax reform analysis feature has been placed on the Web site (scpafl.org).  This resource calculates and compares the benefits of the Save Or Homes cap and the “super-sized” exemption for one year and over time.

I also point out several important points 1)  If approved, the relief provided by the constitutional amendment goes into affect for 2008: and 2) the amendment requires 60percent voter approval in order become law.

Karen Arbutine Re/Max Central

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Are you thinking about listing your home for sale?  Are you wondering exactly what buyers want in a home when they purchase a home?  Here is a list of a poll conducted by the National Association of Realtors on September of 2007.  This the what the panel of buyers “must have” when purchasing a home.

Very Important Home Features - Percentage of buyers desiring key features

FEATURE  INTERIOR                                           2007

Walk in Closet in Master Bedroom                         53%

Cable/Satellite TV-ready                                         46%

Separate Showers in Main Bath                              36%
Hardwood Flooring                                                    28%

Granite Countertops                                                  23%

Whirlpool Bath                                                            13%

Sitting Area in Master Bedroom                               12%

FEATURE EXTERIOR                                              2007

Oversized Garage                                                        57%

Fencing                                                                          36%

Patio                                                                               36%

Porch                                                                              32%

NEIGHBORHOOD FEATURES                                2007

Sidewalks                                                                        26%

Near Shopping                                                                25%

Near Park                                                                        14%

Near Public transit                                                         10%

Near Schools                                                                    20%

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On the second Thursday evening every month, the city of Lake Mary and Shaw Construction will be presenting a FREE movie to be shown at Central Park, off Lake Mary Boulevard and Fourth Street (near the gazebo and Delano The Everyday Cafe’).

The next two movies are scheduled for Thursday, October 11th. For more information, contact Kristin Shaw at 407 619-4246.

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Rotary Club of Lake Mary

Rotary Club of Lake Mary invites you to join them every Thursday morning from 7:30-8:30 at the Lake Mary Marriott by the Courtyard. Enjoy a buffet breakfast, a special guest speaker, and get an update on all the exciting things that the club is involved in. Guest admission is free. For more details log onto the site at www.rotary-lakemary.org

The Lake Mary Woman’s Club

GFWC Lake Mary Woman’s Club meets the third Wednesday of every month at 10:00 a.m. at the Sanford Garden Club, 200 Fairmont Drive, Sanford. New members are welcome. You may contact Kathy Harris at 407 797-5169 for information.

Seminole Spokes

Seminole Spokes is a ladies social and charitable club that welcomes newcomers and existing residents to the area. Last year, the organization raised nearly $18,000 for local charities. Monthly luncheon meetings will be held each month beginning in September. For more information, email seminolespokes@yahoo.com

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ORLANDO, Fla. — Adjustments are what we saw in Florida’s housing sector as mortage rates stabilized and the inventory of homes available for sale remained at higher levels in the Orlando market.  Throughout the state, the existing-home median price rose 13 percent to $249,700 last month; a year ago, it was $221,100, according to the Florida Association of Realtors (FAR). According to FAR a total of 16,392 existing single-family homes sold statwide last month, a decrease of 31 erecnt from the 23,844 homes that sold during the privious August sales.

The statwide median slaes price in 2001 was $127,100, which is an increase of about 96.4 percent over the five year period.   This is a sharp growth for  real estate in the past years, typically single family homes appreciate the rate of 6%-7% per year.

The median sales price for existing single-family homes nationally was $217,300 in April up 7.7 percent from a year earlier according to NAR.

A majority of the U.S. is experiencing a period of equilibrium in the housing markt.  This is healthy for the long-term sector according to NAR housing industry analysts.  Overall sales remain historically strong providing a solid foundation for the overall economy.

Beverly Pindling, president of the Orlando Regional Realtor Association states the single-family existing-home market has eased it pace, but the market is returning to a more normal balance after a long run of of record sales and low inventory. Economists predict that national housing market to be the third-best ever market below 2005 and 2004.  This confirms that Orlando remains a very strong local market.

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Source:  Wayne Archer  (352) 273-0314

Gainesville, Fla — Buyers in Florida for homes, should buy now and not wait.  The price is right as the state’s single-family residential housing market bottoms out, according to a University of Florida study released today.

“If youre thinking of buying a house, there’s probably not much to be gained by holding out at this point,” said Wayne Archer, director of UF’s Bergstrom Center for Real Estate Studies.  “It doesn’t look like prices are going to fall anymore.”

The real estate industry completed a quarterly survey in January which shows that the share of respondents observing drop in single family housing prices has dipped, while a growing number find prices staying even with inflation.

When prices maintain the same level as inflation, then we’re probably in some kind of equilibrium.  We see this as a benchmark which indicates the market is stabilizing.  The exception for this is condominiums, which are overbuilt and prone to naive and speculative investors.

Because of the dominance of single-family housing, the findings have far-reached and potentially optimistic implications for the real estate industry, Archer said.

“You can’t get away from the fact that the single family housing market is the single largest driver of the real estate market”.  “Most brokers and real estate agents are dealing with single family housing.  “Most lending for housing and home furnishings are driven by single family housing, so when it stabilizes, that’s important”.

One possible explanation for the housing market turning the corner is a restricted supply of land for residential development, Archer said. The shortage meant there was less overbuilding than there might otherwise have been, he said.

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A recent poll for best cities to live was released by Moody’s Economy.com.  Studies and results showed that Jacksonville ranked No. 11 and Orlando ranked No. 7 out of 379 metropolitan areas in what the web site calls its “Business Vitality Index.”  This index rated Austin, Texas at the top of the list.

An associate economist Adu Addo, with Moody’s Economy.com researched and compiled the data that went into Orlando’s ranking.  She said each city’s index is bases on available data from 2005 since not all of the 2006 data is available.  The ratings used three main indicators which were Current Economic Conditions, Prospective Economic Conditions and Economic Risk.

We can be proud of the fact that there are 12 Florida cities in the top 50, by far the most of any state.

1.  Austin, Texas

2.  Fort Walton Beach, FL

3.  Corvallis, Ore

4.  Raleigh, N.C.

5.  Fort Lauderdale, FL

6.  Boise City, Id

7.  Orlando, FL

8.  Huntsville, AL

9.  Sioux Falls, S.D

10. Fargo, N.D.

11.Jacksonville, FL

12. Portland, OR

13. Phoenix, AZ

14.  Idaho Falls, ID

15.  Tampa, FL

16.  Fort Collins, CO

17.   Bethesda, MD

18.  Billings, MT

19.  Albuquerque, N.M.

20.  Nashville, TN

21.  Las Vegas, NV

22.  Santa Ana, C.A.

23.  Washington, D.C.

24.   Denver, CO

25.   Atlanta, GA

26.   Dover, Del

27.   Dallas, TX

28.   Naples, FL

29.  Charlotte, N.C.

30.  Fort Worth, TX

31.  Charlottesville, VA

32.  Houston, TX

33.  Bend, OR

34.  Bismarck, N.D.

35.  Tallahassee, FL

36.  Panama City, FL

37.  Fayetteville, AZ

38.  Minneapolis, MN

39.  Salt Lake City, UT

40.  Cape Coral, FL

41.  Columbia, MO

42.  Rapid City, S.D

43.  Missoula, MT

44.  West Palm Beach, FL

45.  Longviw, TX

46.  Port. St. Lucie, FL

47.  Colorado Springs, CO

48.  Logan, UT

49.  Manchester, N.H.

50.  Ocala, FL

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Lower Fed Rate Means Opportunities on the Rise

For the first time in more than four years, the Federal Reserve cut its Fed Funds Rate, which directly impacts millions of American borrowers. And while this important decision has many implications, there’s still some debate among experts about what this means to the economy as a whole.

The Federal Reserve meets again in six weeks, and no one is certain how market volatility and inflation concerns will affect their future policy and decision-making. Bottom line: Take advantage of this opportunity while you still can.

• If you’re looking to capture a lower interest rate for refinancing or buying a home, this could be your best opportunity to do so.
• If you have an Adjustable Rate Mortgage, while this rate cut might help to improve your situation, now is the time to refinance into a fixed-rate loan.
• If you have a Home Equity Line of Credit (HELOC) or credit cards tied to the Prime Rate, the Fed’s cut in the Fed Funds Rate just put a little money in your pocket.

Borrowers waiting for a lower fixed-rate mortgage may be waiting for a long time. The chart below clearly shows how Fed Funds Rate cuts do not translate into cuts in fixed-rate mortgages. In January 2001, the Fed Funds Rate was at 6% and 30-year fixed rates averaged 7.03%. By December 2001, following 4.25% in cuts throughout the year, home loan rates were actually up to 7.07%.

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1. My life is likely to last 10 to 15 years. Any separation from you will be painful.

2. Give me time to understand what you want from me. Do not break my spirit with your temper, though I will always forgive you. Your patience will teach me more effectively.

3. Please have me spayed or neutered.

4. Treat me kindly, my beloved friend, for no heart in all the world is more grateful for your kindness than mine. Don’t be angry with me for long, and don’t lock me up as punishment. After all, you have your job, your friends, your entertainment. I have only you.

5. Speak to me often. Even if I do not understand your words, I understand your voice when it is speaking to me. Your voice is the sweetest sound I ever hear, as you must know by my enthusiasm whenever I hear your footsteps.

6. Take me in when it is cold and wet. I am a domestic animal and am no longer accustomed to the bitter elements. I ask for little more than your gentle hands petting me. Keep my bowl filled with water. Feed me good food so that I may stay well, to romp and play and do you bidding. By yourside, I stand ready, willing and able to share my life with you, for that is what I live for. I will never forget how well you have treated me.

7. Do not hit me. Remember, I have teeth that could easily crush the bones in your hand, but I choose not to bite you.

8. Before you scold me for being lazy or uncooperative, ask yourself if something might be bothering me. Perhaps I am not getting the right food. I have been out in the sun too long, or my heart may be getting weak.

9. Take care of me when I get old. For you will grow old, too.

10. When I am old, or when I no longer enjoy good health, please do not make heroic efforts to keep me going. I am not having fun. Just see to it that my trusting life is taken gently. And be with me on that difficult journey when it is time to say goodbye. Never say, “I can ‘t bear to watch.” Everything is easier for me when you are there. I will leave this earth knowing with my last breath that my fate was always safest in your hand. I love you.

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I realize that lenders are under increased pressure to avoid foreclosure but

there are limits to what they will do.  And - Investors understand the short

sale process is more complicated and the response time is much longer.
However, in recent months - I have had several buyers offer full price on
‘Short
Sale’ listings only to find out weeks later that the lender never even
considered
taking a discount or that the sales price, commission fees, etc… are
impossible.  Since there has been little need for Short Sales in the past 5
years -
many Realtors are understandably inexperienced with the procedure.

To add to the confusion, this process has no set guidelines or guarantees.
But a combined effort by seller and agent to find out as much as possible
about
the lender’s requirements,  who to submit the offer to, an estimated wait
time, etc… may help us get more sales to completion. (and get impossible
price
listings removed from the MLS)  I assume every sale and lender will have
differences but here are some common things we have noted:

Don’t rely on a loan rep’s verbal statements - ask (in writing) for them to
put their response in writing.  This can help cut down on vague stall
tactics
like “just start sending offers - then we will respond.”
Keep in mind, the Private Mortgage Insurer (PMI) is an ally since they don’t

have to pay unless the property forecloses.  On the other hand - the lender
usually won’t take a short sale that is substantially below what they would
net
from auction and PMI.
If there is more than one mortgage - ALL lien holders need to agree to the
sale.
The lender won’t say how low they will go - but you may be able to search
online or drill your preferred loan processors to get a ballpark idea of
the avg
maximum discount a specific lender is accepting.
Most lenders require a short sale “package”  This usually includes:
Homeowner to prove they do not have the means to repay the mortgage.
The lender will ask for paystubs, bank statements, tax returns, employer
verification, and proof of hardship (if applicable) such as pinkslip,
divorce
proceedings, doctor or hospital receipts, proof the seller must move to
another
location, etc….
Proof that the sellers change in ability to pay is the result of something
new - not something the seller concealed from the lender when they
originally
applied for the loan. (concealing could be considered mortgage fraud)
An appraisal or CMA to verify the value of the property has decreased, the
offer price is the maximum price obtainable and the property listing has
exceeded average days on market.
Verification that the seller has met with a HUD approved counselor and that
other options (refinance, loan modifications, etc…) would be fruitless.
Proof of repairs needed with qualified estimates for repair costs.
Preliminary HUD-1 with all estimated costs including required restrictions
on
Realtor commission and title agency fees paid from the sale.

There may be special requirements for submitting offers to the lender and a
few lenders require specific clauses or disclosures be included with the
Purchase Contract.

If the seller’s request is accepted - the lender will give a conditional
approval to allow a short sale.  This ‘approval’ doesn’t usually agree to a
price
- it just confirms the lender will consider lower than mortgage balance
offers.

HUD has (free) Housing counselors to help the homeowner understand the law,
refi or sale options, and organize the qualification process. Best of all -
these counselors will also assist you in negotiations with the lender. The
short
sale process will almost always go smoother (and much quicker) by enlisting
their help.  You can find contact information for HUD approved counselors
located near the seller at:
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&
searchstate=FL
or call 800-569-4287.

Finally, make sure the seller knows upfront that they will probably owe the
IRS on the amount of any forgiven debt or the lender may require them to
sign
for a new loan to pay back the shortfall.  Prepare for the possibility that
even if the lender approves the sale without a loan payback - the lender may
come
up with last hour requirements to pressure the seller into a loan,  the
buyers into paying more cash or the Realtors to forego or reduce their
commissions.

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