Property tax challenges just got easier

TALLAHASSEE, Fla. – June 4, 2009 – Home and business owners who think their local tax bill is too high caught a break today when Gov. Charlie Crist signed a bill that makes it easier to challenge how much a property is worth. Flanked by business and real estate leaders, Crist put his name to HB 521. The bill lowers the burden of proof for owners who dispute property tax assessments to a preponderance of the evidence – a lower standard than the clear and convincing threshold they now must meet to overturn a property appraiser’s estimate. Local governments had successfully scuttled earlier efforts to lower the standard. In the just-signed version, property appraisers still enjoy the presumption that their estimates are correct, but the legislative analysts say the bill will cost local governments $157 million during the current fiscal year, increasing to $693 million a year by 2013

Florida's existing home, condo sale rise!

ORLANDO, Fla. – May 27, 2009 – Florida’s existing home sales rose in April – the eighth consecutive month that sales activity increased in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors® (FAR). April’s statewide sales showed gains over the previous month’s sales level in both the existing home and existing condominium markets.Existing home sales rose 18 percent last month with a total of 13,111 homes sold statewide compared to 11,133 homes sold in April 2008, according to FAR. April’s statewide existing home sales were slightly higher than statewide activity in March.Florida Realtors also reported a 21 percent rise in statewide sales of existing condos in April; existing condo sales last month increased 6.2 percent over the total units sold in March.Fourteen of Florida’s metropolitan statistical areas (MSAs) reported increased existing-home sales in April and 11 MSAs also showed gains in condo sales. A majority of the state’s MSAs have reported increased sales for 10 consecutive months.Florida’s median sales price for existing homes last month was $138,500; a year ago, it was $199,500 for a 31 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note, however, 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 March 2009 was $174,900, down 11.5 percent from a year earlier, according to NAR. In California, the statewide median resales price was $253,040 in March; in Massachusetts, it was $255,000; in Maryland, it was $264,302; and in New York, it was $222,500.According to NAR’s latest housing industry outlook, it could take a few months for the housing market to gain momentum, though there are signs of stabilization. “The share of lower priced home sales has trended up, indicating a return of many first-time buyers,” says NAR Chief Economist Lawrence Yun. “Buyer traffic has been rising, and real estate offices are getting phone inquires about the tax credit. By early summer we should be seeing a positive impact on home sales from record-low mortgage interest rates in addition to the stimulus provisions.”In Florida’s year-to-year comparison for condos, 4,660 units sold statewide compared to 3,862 units in April 2008 for a 21 percent increase. The statewide existing condo median sales price last month was $106,600; in April 2008 it was $178,900 for a 40 percent decrease. In the latest data available at press time, NAR reported the national median existing condo price was $177,600 in March 2009.Interest rates for a 30-year fixed-rate mortgage averaged 4.81 percent last month, down significantly from the average rate of 5.92 percent in April 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 smaller markets, the Pensacola MSA reported a total of 316 homes sold in April compared to 272 homes a year ago for a 16 percent increase. The existing home median sales price was $143,300; a year ago, it was $157,400 for a 9 percent decrease. In the year-to-year comparison for the existing condo market, 48 units sold in the MSA last month, up 9 percent compared to 44 condos sold the previous April. The market’s existing condo median price remained level at $250,000.

Additional Homestead Exemption for First-Time Homestead Property Owners

Governor Charlie Christ will have an opportunity to back Florida first-time home buyers that may purchase properties after January 1, 2010. The savings the proposed Bill, if approved, offers may offset any possible rise in home values.

We are hearing of property values possibly reaching a bottom this summer. With a close eye on how the $8000 New Home Buyer Tax Credit will be affecting the economy, realtors, economists, and other industry professionals are monitoring how the tax credit will be spent and the effect it will have on the economy.

If this Bill is passed by at least a 60% majority, it would provide first-time homestead property owners with additional homestead exemption equal to 50 percent of the property's just value in the first year, limited to $250,000.

Voters will vote in November of 2010 with the Bill, if approved, taking effect on January 1, 2011, with application towards properties purchased on or after January 1, 2010.

Right now is the "perfect storm" of buying opportunities as some analysts put it. Record low mortgage rates, a surplus of distressed properties for sale at hugely discounted prices, and renters emerging as key players in the country's economic recovery all point to a steady recovery, it's just unknown when this stabilization will be firmly rooted.

FHA Slated To Offer $8000 Tax Credit As Down Payment On New Home Purchases

With so much of a housing inventory here locally in the Tampa Bay area as well as nationwide, the National Association of Realtors is working with the Federal Housing Administration to finalize plans for use of the $8000 New Home Buyer Tax Credit as a down payment versus a refund received at a later date.

It is hoped by all parties---FHA, NAR, and the IRS--- that this action plan will help spur the sales of even more homes.

First-time Home Buyers (those that have not owned a home within the last 3 years) have accounted for nearly half of all home purchases this year. These first-time home buyers are usually renters that see the opportunity to own a home for less than they are paying for rent, with these opportunists heading straight for distressed properties that offer them more home for their dollar.

With Florida being one of the four states becoming saturated with a new cycle of foreclosed properties, most big players are in strong favor of this federally-backed incentive to assist first-time home buyers that may not have immediate access to the thousands of dollars needed for a down payment and closing costs.

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Tampa Bay Real Estate: Nothing Short about a "Short" Sale

If you are trying to buy a Clearwater or Tampa area property that is distressed, such as a short sale, a foreclosure, or a bank-owned property, be prepared to be, well...really patient. As we uncover more information on how short sales operate from start to finish, we have painfully learned that the banks are often "negotiating" with eachother over a final sales price rather than the realtor and the seller negotiating between each other.

Many distressed properties have 2nd and 3rd mortgages attached to the title, and whoever holds the 2nd mortgage often holds very little at the end of the selling day. Second mortgages for example, that may be $25,000 to $50,000, may only see 5% (if that) of the balance of that loan.

All parties tied to that property through taxes, liens, loans, etc...have to sign off on the proposed sales price. When one party says, "No way, we want more money," the deal is off, and negotiations have to start all over again. These dealbreakers are what can cause a short sale to go on into the dessert it seems, drying out the assets of even the buyers, as they have to live and pay for their current shelter while their offer gets approved by the bank.

One couple who waited seven months for the bank to approve their offer almost got a divorce and the realtor almost quit real estate alltogether.

Short sales and bank-owned properties offer great buys at a fraction, sometimes half of what is owed on the mortgage, but you have to do the math before you get involved with the banks...they are not ready to let go of these properties so easily anymore.

When submitting offers, many buyers are now presenting $10,000 to $50,000 on top of the bank's asking price.

When shopping for deals, realize that there are properties out there that are for sale by owner, or are listed by a realtor on behalf of just the seller---no banks in the picture.

Florida Existing Homes Sales Rise As Home Prices Keep Falling

The combination of fallen home prices, record low mortgage rates, and the IRS's New Home Buyer Tax Credit of $8000 seems to be the perfect recipe for the rise in home sales we've seen in Florida over the past seven months. Check out the fast facts bullets below:

FAST FACTS Increases in home & condo sales

• Existing home sales rose 30% last month, compared to the month of February in 2008
• Condo sales rose 25% in March of this year, compared to year-ago level
• In one month: Condo sales rose 37.2% in March 2009 over February 2009

Downside: Decreases in median sales price offer distorted values to buyers and sellers. In March of this year, Florida's median sales price fell 30% from that of last year's. In March 2008 the median sales price was $201,700 compared with this past March of $141,300. Due to the large number of foreclosures, median sales price data this year does not carry the same weight as it did in years past. Half of this year's sold homes were bought at discounted prices and much less than the median sales price.

The latest report from the National Association of Realtors (NAR) confirmed that entry-level buyers are seeking bargains. The sale of distressed properties---those in short sale or foreclosure status, as well as bank-owned---accounted for almost half of February 2009's home/condo sales.

Condos suffered more of a decrease in median sales prices than that of homes. Condo median sales prices averaged a 37% decrease: last year they would sell, on average, for $172,300; this year they sold for, on average, $108,700.

These figures are very unsettling for Sellers who want or need to sell fast, recoup their investments or remodeling efforts, etc. For Buyers on the other hand, it's a great time to buy.