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Determining Market Value

The Market Value Of Your Home Is Determined In Several Ways:

1. Nine Things That DO NOT Affect The Value Of Your Property:

a. What you paid for your property.

b. Your remodeling costs.

c. The amount of cash you need to buy another home.

d. What you want for your property.

e. What I say your property is worth.

f. What other agents say your property is worth.

g. What an appraiser says your property is worth.

h. What the tax assessor says your property is worth.

i. What your property might have been worth before.

2. Four Rules On Pricing:

a. Never own the price you put on your property.

b. Value is a moment in time based on what else a buyer can buy the day the buyer is

looking at your property.

c. Prices are not forever. Values are fluid. They go up and down depending on what other sellers do.

d. Agents and sellers set prices but buyers determine value.

3. The more days your house is on the market, the less a buyer wants it.

4. “Comparable Sales” are of little value in a rising market.

NEW HOMEOWNERS
Credit: Equal to 10 percent of the home’s purchase price, up to $8,000
 
Who Qualifies?
 •Those who haven’t owned property in the last three years
 •Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
 •Must be at least 18 years of age to claim credit
 •Purchase price must be $800,000 or less

Deadlines:
 •Have until April 30, 2010, to enter into a contract for a home purchase
 •Have until June 30, 2010, to close on the purchase

CURRENT HOMEOWNERS
Credit: Equal to 10 percent of the home’s purchase price, up to $6,500
 
Who Qualifies?
 •Those who have owned and lived in their principal residence for at least five consecutive years during the past eight years
 •Those with income up to $225,000 for couples or $125,000 for individuals (credit phases out for people who make more than these amounts)
 •Must be at least 18 years of age to claim credit
 •Purchase price must be $800,000 or less

Deadlines:
 •Have until April 30, 2010, to enter into contract for a home purchase
 •Have until June 30, 2010, to close on the purchase
 •In addition, buyers have another year to take advantage of the higher loan limit for mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac set at 125 percent of local median home sales prices, up to a maximum of $729,750 in high-cost housing markets. The limit in normal markets will remain $271,050 for FHA and $417,000 for Fannie Mae and Freddie Mac.
 
PLEASE NOTE: The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation. Purchaser must attach documentation of purchase to tax return.

Please remember to advise consumers to consult with a tax professional for individual eligibility and implications of the Homebuyer Tax Credit.

New rules could speed short sales of distressed homes

WASHINGTON – Jan. 12, 2010 – The federal government is setting guidelines for short sales of homes, giving lenders a 10-day limit to respond to offers, freeing borrowers from debt and providing financial incentives to lenders.

The new rules seek to address the many criticisms of short sales and figure to play a significant role in South Florida, where distressed properties dominate the market as the housing slump meanders into a fifth year.

“The cloud could be lifted,” said Domenic Faro of the Fort Lauderdale Real Estate firm. “This could bring us back to some normalcy.”

In a short sale, the homeowner unloads the property for less than what’s owed on the mortgage, and the lender forgives the difference. Nearly half of all single-family mortgage holders in Palm Beach, Broward and Miami-Dade counties are “under water,” meaning they owe more than their homes are worth, according to third-quarter data from Zillow.com, a Seattle-based real estate firm.

While short sales are considered the perfect solution for “underwater” homeowners on the verge of foreclosure, the deals often drag on as lenders take weeks or months to respond to offers. Frustrated buyers walk away during the delays. In some cases, lenders insist that borrowers share in the financial loss, holding up the transactions even longer.

To speed up the process, the U.S. Treasury is calling for lenders to respond to short sale offers within 10 business days. Sellers are eligible for $1,500 moving allowances, and they will not be on the hook for repayment of any debt.

Also, lenders will get $1,000 to cover administrative and processing costs, while investors owning the mortgages will receive a maximum $1,000 for allowing up to $3,000 in short sale proceeds to be distributed to less senior lenders. Loan servicers participating in the Obama Administration’s Home Affordable Modification Program are required to follow the guidelines.

The rules do not specifically apply to loans guaranteed by Fannie Mae or Freddie Mac, which represent about half of all U.S. mortgage debt. The two government-run mortgage companies are working to finalize their own guidelines.

The Treasury plan, which must be implemented by lenders no later than April, is meant to help sellers like Dawn Sclafani, who has been waiting since October for her lender to approve a short sale offer on her Margate home. A buyer has offered $155,000, and she owes $233,000.

Sclafani, a 50-year-old psychologist, said she’s eager for the bank to approve the deal so she can put the experience behind her.

“I want to move on ... but I can’t until somebody gives me permission to,” she said. “I’ve heard that this is a horrendous process. The banks are just not very cooperative. I do believe these new rules will help.”

U.S. Rep Ron Klein, D-Boca Raton, agrees, saying the guidelines are meant to make short sales “a more usable tool.” Klein points out the rules provide standardized paperwork for all short sales and give buyers and sellers a more reasonable time frame for whether or not the sales will happen.

But Klein and others say the government may have to increase the financial incentives. The $3,000 cap on short sale proceeds is not sitting well with second lien holders, who have been demanding more money from sellers, the first lenders and real estate agents in exchange for releasing their claims and allowing the short sales to proceed.

“This is a great program if all these mortgages had only one lien holder,” said Travis Hamel Olsen, chief operating officer for Loan Resolution Corp., an Arizona company that helps lenders complete short sales. “But many of these properties have two liens.”

Meanwhile, some local real estate agents remain skeptical of the guidelines.

Broward County agent Ron Rosen, who urged Klein last summer to push for new regulations, said he thinks “the banks will still play their little games with people and make life difficult for everyone.”

Edward Goldfarb of RE/MAX PowerPro Realty in Davie doubts the Treasury will enforce the new rules. “There’s no teeth to them,” he said.

A spokeswoman for the Treasury says it will hand down “substantial” penalties to lenders that don’t comply. They can include the withholding or reduction of payments and requiring improperly rejected loans to be modified.

Lenders have blamed short sale delays on the complicated nature of the transactions, sheer numbers of deals and on borrowers who don’t submit proper paperwork in a timely manner.

In many cases, the banks are not to blame, said Ward Kellogg, chief executive of Boca Raton-based Paradise Bank. Still, he thinks the guidelines are necessary to force lenders to clear the market of so many distressed properties.

“I think the pressure on (the banks) is a good thing,” Kellogg said.

Copyright © 2010 Sun Sentinel, Fort Lauderdale, Fla., Paul Owers. Distributed by McClatchy-Tribune Information Services.

^]RISMEDIA, December 23, 2009—Existing home sales rose again in November 2009 as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors®.

Existing home sales–including single-family, townhomes, condominiums and co-ops– rose 7.4% to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October, and are 44.1% higher<!--more--> than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million.

Lawrence Yun, NAR chief economist, said the rise was expected. “This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” he said. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

An NAR practitioner survey shows first-time buyers purchased 51% of homes in November, compared with an upwardly revised 50% of transactions in October.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.88% in November from 4.95% in October; the rate was 6.09% in November 2008. Last month’s mortgage interest rate was the second lowest on record after bottoming at 4.81% in April 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said conditions are optimal for buyers in the current market. “Inventories have steadily declined and are closer to balanced levels, which indicate home prices in many areas are either stabilizing or could soon stabilize and return to normal appreciation patterns,” she said. “This means buyers still have good choices but are purchasing near the bottom of the price cycle with historically low mortgage interest rates. Throw a tax credit on top and it really doesn’t get any better for buyers with secure jobs and long-term ownership plans.”

Total housing inventory at the end of November declined 1.3% to 3.52 million existing homes available for sale, which represents a 6.5-month supply at the current sales pace, down from an 7.0-month supply in October.

Raw unsold inventory figures are 15.5% below a year ago. The last time there was a lower supply of homes on the market was April 2006 when it was at a 6.1-month supply.

“Nearly all markets experienced a solid sales gain from one year ago,” Yun said. “The only markets with measurably lower sales were in San Diego, Riverside, and Sacramento, where inventory shortages for lower priced homes are limiting sales.”

For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges.

The national median existing-home price for all housing types was $172,600 in November, which is 4.3% below November 2008. Distressed properties, which accounted for 33% of sales in November, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes in the same area.

Single-family home sales jumped 8.5% to a seasonally adjusted annual rate of 5.77 million in November from a level of 5.32 million in October, and are 42.1% above the pace of 4.06 million in November 2008. The median existing single-family home price was $171,900 in November, down 4.4% from a year ago.

Existing condominium and co-op sales in November were unchanged from a seasonally adjusted annual rate of 770,000 in October, but are 60.1% above the 481,000-unit pace a year ago. The median existing condo price was $178,000 in November, which is 3.1% below November 2008.

Northeast
Regionally, existing home sales in the Northeast rose 6.6% to an annual level of 1.13 million in November, and are 52.7% higher than November 2008. The median price in the Northeast was $223,400, down 13.1% from a year ago.

Midwest
Existing-home sales in the Midwest increased 8.4% in November to a pace of 1.55 million and are 53.5% above a year ago. The median price in the Midwest was $140,800, a decline of 0.4% from November 2008.

South
In the South, existing-home sales rose 4.8% to an annual level of 2.39 million in November and are 44.8% higher than a year ago. The median price in the South was $151,400, down 1.4% from November 2008.

West
Existing-home sales in the West increased 10.6% to an annual rate of 1.46 million in November and are 28.1% above November 2008. The median price in the West was $231,100, which is 4.1% below a year ago.

For more information, visit www.realtor.org ^[2].

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com ^[3].

For more top headlines on RISMedia.com, don’t miss:
Luxury Property Marketers Changing the Game – Blogs and Social Networking Become Essential ^[4]
Get Invited to the Party ^[5]

^[6]  

Article printed from RISMedia: http://rismedia.com

URL to article: http://rismedia.com/2009-12-22/as-buyers-respond-to-tax-credit-u-s-existing-home-sales-jump-7-4-in-november-2009/

URLs in this post:

[1] Image: http://rismedia.com/wp-content/uploads/2009/12/house_for_sale_1223.jpg

[2] www.realtor.org: http://www.Realtor.org

[3] realestatemagazinefeedback@rismedia.com: mailto: realestatemagazinefeedback@rismedia.com

[4] Luxury Property Marketers Changing the Game – Blogs and Social Networking Become Essential: http://rismedia.com/2009-11-11/luxury-property-marketers-changing-the-game-blogs-and-social-networking-become-essential/

[5] Get Invited to the Party: http://rismedia.com/2009-11-11/get-invited-to-the-party/

[6] Image: http://www.addmarx.com/

¨      1. While there may be fewer buyers out there, people who are looking for a home during the holidays are more serious…they are ready to buy.

¨      2. There are fewer homes for buyers to look at during the holidays which

            means less competition for your Property…less competition equals more   Offers, quicker decisions and possibly more money.

¨      3. After the holidays the supply of listings increases substantially which

            lowers the demand for your home…more competition equals less money  for your Seller.

¨      4. Your home shows better when decorated for the holidays! People buy on Emotions, and the Holiday Décor in a Home gives a more Emotional feeling to the purchase.

¨      5. Many buyers have more time to look for property during the holidays (as

            opposed to a normal work week).

¨      6. We will restrict the showings on your home to the times you want it

            shown. You still remain in control.

¨      7. You can sell now for more money and not have to physically move until

            January or February…as opposed to just starting the whole process at

            that time with more competition.

¨      8. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money. This will allow you to sell higher now and buy lower later.

¨      9. January is traditionally the month for employees to begin new jobs.  Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market.

¨      10. Some people must buy before the end of the year for tax reasons.

¨      11. Buyers are more emotional during the Holidays, so they are more likely to pay your price.

 

As always call me at 813.394.0764 or email me at kennyschaaf@century21beggins.com.

Get the most out of your homebuying tax credit

WASHINGTON – June 10, 2009 – When it comes to the $8,000 tax credit for first-time homebuyers, it seems there’s a new program every week to help tap that money today.

The credit can be claimed on 2008 or 2009 tax returns. Homebuyers who get a loan backed by the Federal Housing Administration can use the money to cover closing costs and other fees, and at least 10 states offer ways to use the tax credit faster.

“There are some real neat tax planning strategies you can apply now,” said Bob Meighan, vice president of TurboTax.

To be eligible, a buyer cannot have owned a home in the past three years. So if you’re ready to buy, here are some tips:

Income considerations: The tax credit, for home purchases made through end of November, comes with income thresholds, $75,000 for individuals and $150,000 for joint filers. After those limits, the credit begins to phase out. If you bought a home this year and expect your 2008 income to be lower than next year’s, it makes sense to file for the credit this year using a 2008 amended return.

However, if you think your income will decrease, due to job loss, wage cuts or hour reductions, it makes more sense to file for the tax credit on your 2009 tax returns to get the most out of the credit, Meighan said.

Tax withholding: Another benefit to waiting until 2009: You can increase your take-home pay. By taking the credit next year, you can change your tax withholding status with your employer now and get more on a paycheck-to-paycheck basis, Meighan said.

You’ll be giving up a “fatter” tax refund next year, but each month you’ll have more change in your pocket.

Also, don’t forget to reduce your federal and state tax withholding to account for the tax deduction you can take on the mortgage interest and property taxes you pay.

Bridge loans: Ten states (and the list keeps growing) are offering so-called “bridge loans” for the federal tax credit, so homebuyers can take advantage of the $8,000 before the 2010 filing season. Qualified homebuyers can receive a loan with little to no interest and repay it with the tax credit refund next year.

“I see it as an upside,” Meighan said. “It gives homebuyers more flexibility,” with the money.

Each state program varies and some require a minimum downpayment contribution from the buyer.

Some nonprofit organizations like NeighborWorks America are also offering bridge loans for the tax credits.

California also enacted its own one-time homebuying credit for newly built homes purchased between Feb. 28 and March 1, 2010. The nonrefundable credit, which is for all buyers, not just first timers, is equal to 5 percent of the purchase price up to $10,000. It can be claimed over a three-year period. The property must be a single-family residence, the principal residence and eligible for the property tax homeowners exception.

A California resident can take both the federal and state tax, according to Kathleen Thies, a state tax analyst at CCH Inc. However, only $100 million has been put aside for the state credit and that money is expected to run out this month or next. And there are no plans to add more funding to the program.

“It’s on a first-come, first-serve basis,” Thies says.

Advance credit: Last month, the FHA said its borrowers can receive advances on the $8,000 first-time homebuyer tax credit from lenders, so they don’t have to wait to get the money next year from the Internal Revenue Service.

Borrowers will still have to come up with the FHA’s required 3.5 percent downpayment, but the advance from the tax credit can be applied toward closing costs, fees or to increase the downpayment.

John W. Roth, a senior tax analyst at CCH, believes some lenders won’t participate. The process involves more work for lenders, but lenders can only charge an additional 2.5 percent fee for that.

“How many qualified FHA lenders will offer this option to their borrowers will be interesting to see,” he said.

Roth advises homebuyers to wait and receive the money in next year’s 2009 tax return.

Said Roth: “There’s always those initial expenses when you move in that are more than you expect.”

Copyright © 2009 The Associated Press, J.W. Elphinstone (AP Real Estate Writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

YOUR'RE INVITED

Come learn about the advantages of buying and selling Real Estate in today's market in Panther Trace.  The event is hosted by CENTURY 21 Beggins and you'll learn about the following items:

• Lis Pendins - What they are and how many there are in Panther Trace.
• Short Sales - What are they?  How many are there and how do they affect the Real Estate Market?
• Foreclosures - What are they?  How many are there and how do they affect the Real Estate Market?
• Why is this the best time to buy Real Estate?

Everyone is invited who is curious about the Real Estate market in the Panther Trace community.  RSVP is not required but is requested at 813.394.0764 or email kenny@panthertracerealtor.com

The event is being held at our Apollo Beach office located at 6542 US Hwy 41 on June 25th, 2009 at 6:00 PM.

Be sure to stop by and meet your Panther Trace team.

Kenny Schaaf, Cassie Schaaf, George Hahn, and Tammy Seese.  We are the source for all of your real estate needs.

Florida’s existing home, condo sales rise in 1Q 2009

ORLANDO, Fla. – May 12, 2009 – Sales of existing single-family homes in Florida rose 25 percent in first quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from the Florida Association of Realtors® (FAR). A total of 31,412 existing homes sold statewide in 1Q 2009; during the same period the year before, a total of 25,071 existing homes sold. It marks the third consecutive quarter that Florida has reported higher existing home sales; sales levels in the third and fourth quarters of 2008 were higher than the corresponding three-month period of the previous year, according to FAR.

Sales of existing condominiums statewide in the first quarter rose 19 percent compared to the same time the previous year. This marks the second three-month period for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

Statewide sales activity in 1Q 2009 also increased over 4Q 2008’s sales figure in both the existing home and existing condo markets, FAR records show. For 1Q 2009, statewide sales of existing homes rose 4.14 percent over the 4Q 2008 figure; existing condo sales statewide in 1Q 2009 increased 21.1 percent over the 4Q 2008 level.

“Many first-time homebuyers are entering the market now to take advantage of current low mortgage rates, plentiful housing inventory and affordable homeownership opportunities,” says 2009 FAR President Cynthia Shelton, CCIM (Certified Commercial Investment Member). “Typical homebuyers are realizing that now is the time to buy – they can find the Florida home of their dreams at a cost they can afford. Homeownership has always offered a wide range of benefits, including building financial security and increasing a sense of community, but the advantages offered in today’s market are unique.”

One such advantage is a dream come true for first-time homebuyers in Florida, she adds, thanks to a new program that the 2009 Florida Legislature approved through the adoption of the state’s general budget last week. Lawmakers passed a provision setting aside $30.1 million for the Florida Homebuyer Opportunity Program, which will help with downpayment assistance. Beginning July 1, those who qualify for the federal $8,000 first-time homebuyers tax credit will be able to apply for downpayment assistance before they close on the purchase of their home, and then repay the amount borrowed when they get their tax refund.

Shelton adds, “The beauty of this program is that the state will be paid back and, conceivably, more potential homebuyers could take advantage before the Dec. 1, 2009, expiration of the $8,000 federal first time homebuyer tax credit. While details of the program are still being worked out, we are all very excited about the incredible opportunity this offers for thousands of Florida families. It’s $8,000 more reasons to buy your first Florida home!”

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the first quarter compared to the same three-month-period a year earlier, while 12 MSAs showed gains in condo sales.

The statewide existing-home median sales price was $141,000 in the first quarter; a year earlier, it was $202,300 for a decrease of 30 percent. According to industry analysts with the National Association of Realtors® (NAR), there remains a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is a typical market price where half the homes sold for more, half for less.

In the year-to-year quarterly comparison for condo sales, 10,143 units sold statewide for the quarter compared to 8,554 in 1Q 2008 for a 19 percent increase. The statewide existing-condo median sales price was $110,100 for the three-month period; in 1Q 2008, it was $177,000 for a decrease of 38 percent.

Continuing low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.06 percent in 1Q 2009; one year earlier, it averaged 5.88 percent.

© 2009 FLORIDA ASSOCIATION OF REALTORS

More houses get multiple offers

ORLANDO, Fla. – May 6, 2009 – More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.

Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say.

“If a house is in a good neighborhood, is maintained and is a good value, it’ll get multiple offers,” says Julie Holt, owner of Anclote Title Services in Tarpon Springs, Fla. One in 10 homes now draw multiple offers, up from one in 30 last fall, she says.

Multiple bids usually signify a market in which prices are rising and buyers outnumber sellers. That’s not true now, given rampant foreclosures, still-falling prices in many regions and low demand for higher-price homes. Multiple offers on distressed properties are also not new, but their recent frequency offers hope for the real estate market, says Beth Peerce, treasurer of the California Association of Realtors (CAR).

“When you begin to see people willing to fight for a property, that’s a good sign,” she says. “We are beginning to see the beginning of the end of a disaster time.”

The competition is driven by prices – California’s are down 39 percent from a year ago, CAR says – low mortgage rates and a new federal tax credit of up to $8,000 for some first-time buyers.

Other hard-hit regions are also seeing more multiple offers, mainly on:

â€Â¢ Lower-end homes. In Phoenix, where prices have dropped 50 percent from their 2006 peak, competition has heated up for homes under $150,000, says Realtor Michael Orr, who publishes the Cromford Report on the Phoenix-area market. He recently considered bidding on one house for $70,000. It had received 14 offers, and Orr was told to bid $110,000 to be considered.

â€Â¢ Good values. Holt just handled a closing on a Tarpon Springs home close to schools that was listed at $185,000. It won three bids and sold at $192,000. Three years ago, the home would have sold for $280,000, Holt says. Higher-price homes are also getting more multiple bids. “People who always wanted to live on the water are realizing it is time to buy before prices go up,” Holt says.

Some bidders may think foreclosure bargains are waning, says Mike Lyon, CEO of Lyon Real Estate in Sacramento. That market has 1,600 bank-owned properties for sale, vs. 2,800 a year ago, he says.

He says banks have lured multiple bids by setting below-market prices. Lyon cautions that government steps to curb foreclosures have delayed some.

“People are perceiving that they are running out. But there will be more,” he says.

2009 © USA TODAY. All rights reserved.

Pending home sales up 3.2%, housing affordability near record

WASHINGTON – May 4, 2009 – Pending home sales rose in March with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2 percent to 84.6 from a level of 82.0 in February, and it’s 1.1 percent higher than March 2008’s 83.7.

“This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,” says Lawrence Yun, NAR chief economist. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

NAR’s Housing Affordability Index remained near record highs. The affordability index was 166.7 in March – down from an upwardly revised record of 174.4 in February due to higher home prices in March. The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. Tracking began in 1970.

The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago. In the West the index increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008. The index in the Northeast fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago. In the Midwest the index slipped 1.0 percent to 82.3 but is 8.2 percent higher than March 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the increase in buying power is quite remarkable. “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he said. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

A median-income family, earning $61,100, could afford a home costing $291,600 in March with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was notably higher than the median existing single-family home price in March, which was $174,900.

© 2009 FLORIDA ASSOCIATION OF REALTORS®

Yesterday I had the opportunity to take the boat tour of Tampa Bay with our company CENTURY 21 Beggins with our broker / captain Craig Beggins.  We boarded the vessel at Bella Sol Condominiums on Apollo Beach Blvd which by the way are excellent investment.  After boarding the boat we toured the area entering Tampa Bay via Bal Harbor.  Some of the areas we passed during our tour were the waterfront communities of Andalucia, Symphony Isles, and Mirabay.  As we entered the bay and passed the waterfront homes within Andalucia we were greeted by a couple of dolphins and the friendly residents out enjoying the Florida lifestyle.  We continued out into the bay watching the boat crash over the waves when we come to a stop to take in the views of the wonderful water.  In the distance you can see downtown Tampa to the right, and to the left you can see downtown St. Petersburg.  Looking further towards the horizon you can see the Sunshine Skyway Bridge to the south and to the north you can see Beer Can Island. 

What I found interesting during our boat tour, you can travel from Apollo Beach and reach the pier in downtown St. Petersburg in 20 minutes or the Convention Center in downtown Tampa in just about the same.  Both Tampa and St. Petersburg are 12 miles from Apollo Beach via the open water.  Also in Apollo Beach there are no bridges which allow you to have your sailboat and best of all dock it on your private dock behind your home.  Apollo Beach has over 40 miles of salt water canals and most are deep enough for the sailboats.

So to sum up the boat tour, Apollo Beach has some of the best boating areas within the State of Florida and it is right in our backyard.  The prices are right to buy, interest rates are at 30 year lows, and the inventory is high (however shrinking daily) which makes this the perfect time to buy. 

CENTURY 21 Beggins offers free boat tours of the Tampa area and I invite each and every one of you to take the tour.  The tours are conducted every Saturday morning and RSVP is required.  Call me today at 813.394.0764 to reserve your space or of course you can email me at KennySchaaf@century21beggins.com.

ORLANDO, Fla. – April 23, 2009 – Florida’s existing home sales increased in March, making it the seventh month in a row that sales activity demonstrated gains in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). March’s statewide sales also increased over the previous month’s sales level in both the existing home and existing condo markets.

Existing home sales rose 30 percent last month with a total of 13,085 homes sold statewide compared to 10,080 homes sold in March 2008, according to FAR. Statewide existing home sales in March were 32.7 percent higher than February’s statewide sales.

Florida Realtors also reported a 25 percent rise in statewide sales of existing condominiums in March, continuing a trend in recent months for higher statewide sales of both the existing home and existing condo markets compared to year-ago levels. Statewide existing condo sales last month increased 37.2 percent over the total units sold in February.

Fifteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in March and 13 MSAs also showed gains in condo sales. It marks the ninth consecutive month that a majority of markets have reported increased sales.

Florida’s median sales price for existing homes last month was $141,300; a year ago, it was $201,700 for a 30 percent decrease. Industry analysts with the National Association of Realtors® (NAR) report there is a significant downward distortion in the current median price due to many discounted sales, including a large number of foreclosures. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in February 2009 was $164,600, down 15 percent from a year earlier, according to NAR. In California, the statewide median resales price was $247,590 in February; in Massachusetts, it was $252,500; in Maryland, it was $253,200; and in New York, it was $210,000.

NAR’s latest housing industry outlook reported that entry-level buyers are seeking bargains, which resulted in sales of distressed properties accounting for 40 to 45 percent of February’s transactions. “Given the downward distortion in price comparisons due to distressed sales, it’s important for owners to keep in mind that this doesn’t equate to a similar loss of value for traditional homes in good condition,” said NAR Chief Economist Lawrence Yun.

In Florida’s year-to-year comparison for condos, 4,388 units sold statewide compared to 3,503 units in March 2008 for a 25 percent increase. The statewide existing condo median sales price last month was $108,700; in March 2008 it was $172,300 for a 37 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $172,200 in February 2009.

Interest rates for a 30-year fixed-rate mortgage averaged 5 percent last month, down significantly from the average rate of 5.97 percent in March 2008, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s large to medium-size markets, the Melbourne-Titusville-Palm Bay MSA reported a total of 539 homes sold in March compared to 445 homes a year ago for a 21 percent increase. The existing home median sales price was $123,700; a year ago, it was $159,000 for a 22 percent decrease. In the year-to-year comparison for the existing condo market, a total of 113 units sold in the MSA last month, up 24 percent compared to 91 condos sold the previous March. The market’s existing condo median price was $123,100; a year ago, it was $164,300 for a 25 percent decrease.

2009 © FLORIDA ASSOCIATION OF REALTORS

Save money with a 1031
How would you like to save thousands and not pay Capital Gain Taxes on the sale of Real Estate?   If you answered "YES", then contact us about our "FREE" 1031 Tax Exchange Seminars.

What is a "1031 Exchange" aka "Like Kind Property Exchange"?
Sometimes referred to as a "Starker Trust", a 1031 Exchange is a transaction in which an owner of property held for investment is allowed to sell one or more properties and purchase one or more properties without a tax consequence. It is the best strategy for the deferral of capital gains tax that would ordinarily arise from the sale of Real Estate. Real Estate owners can accomplish almost any investment objective with 1031 Exchanges including greater leverage, diversification, improved cash flow, geographic relocation, and/or property consolidation.

How does an Exchange work
An Exchange is usually a 3 way Exchange in which an intermediary is used to facilitate the transaction. Four things ordinarily occur in an exchange:

The seller sells the relinquished property.

At closing the sale proceeds go to a Qualified Intermediary where the funds are held in a trust account "For Benefit Of" the exchanger.

The seller identifies replacement properties within 45 days of the closing of the relinquished property.

The seller (now the buyer) closes on the replacement property(ies) within 180 days of closing on the relinquished roperty and the funds are wired from the "FBO trust account" by the intermediary to the closing agent.

Why would I want to be involved in an Exchange?
Do you own "management intensive" Real Estate? Or perhaps you own property you purchased or inherited years ago and would prefer another property. You have probably realized good returns on investment that will otherwise be lost to the IRS. The sale of every property is a potential tax event with the tax consequence being realized after the closing of the property. Section 1031 was written into the Internal Revenue Code in the 1920's. The IRS realizes that your investment in Real Estate spurs the economy onward, however upon the sale of the property, any profit realized from appreciation must be reported, and is taxed at 20%. The depreciation you have been enjoying will be taxed at 25%. If you own passive investment property (raw land for example) you may have enough profit to invest to generate a cash flow by purchasing an income producing property.

What qualifies as "Like Kind" Property?
You can exchange any Real Estate investment for any other type of Real Estate investment - for example, vacant land can be exchanged for a warehouse, an office building for an apartment complex, or a vacation home, an orange grove, a golf course, horse ranch, whatever. As long as the property being sold is not a primary residence, and there is a tax liability to selling, an Exchange should be considered.

 

DO'S AND DON'TS of 1031 Tax Deferred Exchanges

Do plan in advance for the exchange. The Qualified Intermediary cannot have a fiduciary relationship with the exchanger; therefore the QI cannot give legal or tax advice. The QI does consult with the exchanger, as well as the exchanger's CPA, accountant, attorney, broker, financial planner, and lender.

Do attempt to sell before you purchase. Occasionally exchangers find the ideal replacement property before the relinquished property is sold. In this situation a "Reverse Exchange" may be necessary. We are happy to discuss Reverse, Build To Suit, and Improvement Exchanges. 

Do remember these basic rules. To qualify for a complete tax deferral use all proceeds from the relinquished property to purchase the replacement property. Make sure the debt on the replacement property is equal to or greater than the debt on the relinquished property. An exception occurs when a reduction in equity cannot be offset by increasing debt. And finally, receive on Like Kind" property. Real Estate cannot be exchanged for jewelry, stocks, mutual funds, etc.

Don't plan to sell and invest the funds in property you already own. Funds applied toward property already owned are considered "Goods and Services", not "Like Kind" properties.

Don't change the manner of holding title during the exchange, or dissolve partnerships. A change in the exchanger's legal relationship to the property will jeopardize the Exchange. Maintaining "Continuity of Title" is critical to the Exchange.

Don't miss the identification period (45 days) or the closing date (180 days). A reputable Qualified Intermediary will not act on back dated information or late identifications, and the IRS is unforgiving on such matters.

Do contact Real Estate Exchange Services regarding trusts, corporations, partnerships, option money, seller financing, personal property included in the sale, farm and ranch property, multiple units with one side owner occupied.

Remember! Exchanges must be reported in the tax year that the relinquished property was closed, regardless of the tax year the acquisition property was closed.

The Internal Revenue Code Section 1031 is only one page in the total code, however the Rules and Regulations are more than 65 pages with hundreds of Private Letter Rulings. As members of the Federation of Exchange

Accommodators it is Real Estate Exchange Services, Inc.'s responsibility to counsel with the exchanger, structure the exchange, prepare the documentation, coordinate the closing (for the exchange portion of the transaction) and maintain preparation for IRS audit.

Be sure to join us for a short sale seminar April 23rd, 2009 at 6:00 PM at our Apollo Beach office located at 6542 US Hwy 41.  This seminar will define what a short sale is and how it affects your property value.  RSVP is requested.  Contact KennySchaaf@Century21Beggins.com or call me at 813.394.0764.

Join me for the CENTURY 21 Beggins short sale seminar on Thursday 4/23/09 at 5:30 PM at our main office located at 6542 US Hwy 41 in Apollo Beach.  This seminar will be given by Mr. Craig Beggins, the broker for C21 Beggins.  You will learn what a short sale is, why you may be a canidate for a short sale, or you can learn how to buy one of these properties.

RSVP is requested at KennySchaaf@century21beggins.com or you can call me at 813.394.0764.

Federal Tax Credits Available for First-Time Homebuyers

 

Federal tax credits enacted by Congress in early 2009 will be important for many first-time homebuyers. 

 

The credit was designed to stimulate buying activity and help get the housing market moving again—and early indications show it is doing exactly that. In February alone, a record 844,000 prospective homebuyers visited a site set up by the National Association of Home Builders (FederalHousingTaxCredit.com) to learn about the new $8,000 tax credit.

 

Here are some of the details about the new tax credit:

 

·          A "first-time homebuyer" is defined as someone who has not owned a principal residence during the three-year period prior to the purchase. For married couples, both spouses’ ownership history is considered.

·          It does not have to be repaid as long as you don’t sell the home for at least three years.

·          The actual amount of the credit is 10 percent of a home’s purchase price, up to a maximum of $8,000.

·          To obtain the credit, you must close on a home between Jan. 1, 2009 and Nov. 30, 2009.

·          The full credit is available to single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000. For those making more, the credit is reduced or eliminated.

·          The house must be your principal residence. It can be either a new house or a resale.

 

Remember, any house that will be used as a principal residence will qualify for the credit, so that includes not only single-family homes, but townhomes, condominiums, mobile homes and even houseboats. But strict time limits apply!  You won’t want to miss this opportunity.

 

 

·          Consult a tax professional for eligibility. 

·          For additional details visit

o    Quick Reference Chart The National Association of Realtors First-Time Homebuyer®

o    Frequently Asked Questions The National Association of Realtors®

o     FederalHousingTaxCredit.com

Lease Options

A lease option is an arrangement between you and a seller to exercise the option to buy a house after you have rented it for a specific period. A portion of your rent would be applied toward the purchase if the option is applied. This is referred to as rent credit, which most institutional lenders will accept as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application. Read any lease option arrangement carefully for details on transferring the option and other important concerns. For information on lease options, contact your real estate agent (some even specialize in such transactions) or read up on lease options at the public library or on the internet. If you have a real estate attorney, ask if he or she has any prepared information you can review.

Housing may have hit bottom in February

CHICAGO – April 7, 2009 – The chief economist of Mesirow Financial, a $31.4 billion asset financial services firm in Chicago founded in 1937, announced that the housing market probably bottomed out in February and is now on the road to recovery.

“An unexpected jump in new and existing home sales, a fairly sharp increase in mortgage applications, and a surprise increase in pending home sales prompted many to declare the bottom in housing in the month of February,” says Swonk. “Even home prices, which had been falling like a rock, showed some signs of stabilizing during the month. Moreover, speculators appear to be re-entering the market, picking up properties on the cheap.”

“The housing market is still a long way from healthy: home sales are still down substantially from the lows they hit during the turbulence of the fourth quarter; pending sales were at such low levels, there was really nowhere to go but up; and more than 70 percent of the mortgage applications we saw in March were refinances instead of purchases,” notes Swonk.

Swonk says a number of housing market shifts suggest a turnaround has started, including:

â€Â¢ Starts of single-family home sales, in particular, are already close to zero and cannot fall much further. Multi-family starts are also exceedingly low and off more than 50 percent from their 2005 high. On net, overall starts are expected to decline again in the second quarter and then begin a gradual rebound in the second half of the year.

Regional differences: The West and the South are expected to remain the weakest markets when it comes to construction activity, since they still suffer from the greatest overhang of vacant new properties.

â€Â¢ Home sales are expected to bottom sooner than starts, which may have also hit their turning point in February, although a safer bet is probably May. Swonk says that’s not surprising given the fact that it’s easier to get a mortgage to buy a home than to get funding to build a housing development.

Regional differences: The hardest hit areas in the West, which includes California and Nevada, are expected to post the strongest gains, as they currently offer buyers the best deals from short sales and foreclosures. The Midwest is expected to perform close to the national average, while the South and the Northeast remain laggards.

â€Â¢ Prices. Home values plummeted as the economy slipped deeper into recession and credit markets seized last fall. By January, most indices were showing double-digit declines from a year ago. The best bet is that prices will end the year lower than during the bulk of 2008, but will come up slightly from the lows of the first quarter.

Regional differences: The Northeast is expected to experience the greatest downward pressure on prices, as it was late into the correction. Declines in New York could be particularly large as the number of foreclosures balloons. The downward pressure on prices in the South, particularly in Florida, is also expected to