The Tampa homebuilding market – shadow inventory in the area and more – The Duncan Duo Radio Show

     

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    The Duncan Duo Real Estate Show. Now, your host: Andrew Duncan.

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    Andrew Duncan:    Good morning, Tampa Bay, happy Sunday. It’s gorgeous weather out today. I hope you are out enjoying it. Maybe you’re heading out to the beach for last view glimpse of beach weather before it continues to cool down. But we’re here with you every week on the Duncan Duo Real Estate Show to take your real estate questions, answer them live or help to point you in the right direction. Our calling numbers are 990-9352 in Hillsborough – again, that’s 990-9352; in Pinellas 461-9352 – again ‘9352’ or ‘WFLA’ and toll-free 1-800-969-9352. Whether your questions are about buying, selling, investing, foreclosures, short sale, the real estate market, things related to the real estate, we’d love the opportunity to help you, point you in the right direction and answer your question. Again, our calling numbers are 990-9352 in Hillsborough, 461-9352 in Pinellas and toll-free 1-800-969-9352 and when we aren’t on air, you can search for us on Facebook or Youtube. It’s facebook.com/theduncanduoshow and youtube.com/theduncanduo.

                                          So, I want to start off the show by talking about a couple of releases this week about the home building market – it’s been consistently important for our local real estate market and our local economy: Drew Harwell from The Times, as well as an AP release this week talked about some positive games in the construction market and I just want to touch on how it’s important to you. At one point we obviously didn’t have a whole lot of building going on and now there are plans for dozens of communities popping up across the Tampa Bay area which is going to put to work landscapers, roofers, decorators, construction, general contractors that have been throttled a bit by the downturn in the economy. But Tampa Bay home builders are consciously optimistic that things are heading in the right direction. Record low interest rates are rebounding consumer confidence, tightening supplies of [xx] homes, inspiring builders to get back to work after a bust which the nation’s new home supplies sank to a 50-year low. Obviously, we’re experiencing this in the Tampa Bay area with low inventory. We have around three to four months of inventory. Builders are taking notice and starting to build again, opening new communities, finishing homes more quickly, too, satisfying the demand from buyers who are ready to purchase.

                                          Looks like in Tampa Bay in the first eight months of 2012, builders poured more than 3,800 building permits: nearly at 26 percent jump from last year. As I talk to builders across the Tampa Bay area I continue to hear the same thing. We talked to Tamlin Homes, a local custom home builder. We’ve had Pulte Homes on our show and continue to hear that there seem record numbers coming to their communities, buying into the communities or more housing starts. And, again, while this has a great impact on the real estate community, it also has an impact on the employment side of things due to creation of jobs and the more homes have to be built the more people that are getting into work on building them. So, again, continuing to see a great positive trend from our local building market. Prices ranging all the way up to a million dollars down from low home prices of 100,000 or so for townhomes that we’re seeing across the Tampa Bay area.

                                          So, if you are looking for a new home – we talked about this on the show a lot. New homes are a great opportunity for someone who wants to take advantage of low rates but doesn’t want to have to deal with the hassle or the cost of renovating a home, a lot of the closing costs builders typically cover, you’re dealing with a more energy efficient home, just a whole lot of extras that you get in buying a new home.

                                           So, again, you’re listening to the Duncan Duo Real Estate Show. If you have questions about the construction market, the real estate market, whatever it is, you can give us a call: 990-9352 in Hillsborough or 461-9352 in Pinellas and toll-free 1-800-969-9352.

                                           On that same token, a developer’s planned condo in townhome projects were downtown Saint Pete, having spent a lot of time at downtime Saint Pete a few years ago. You saw kind of a low building and that’s starting to come back. Developers, boutique condos and multi-millionaire townhomes are returning to downtown, promising a rebirth of luxuries. You’re going to continue to see a trend towards more development and some of the more developed areas of Tampa Bay, including downtown Saint Pete. You saw condos and townhomes popping up back in the boom of 2005-2006 and 2007 and then it started to die off again. Condos running from anywhere from 200,000 up to 1.5 million dollars – great to sell to the international audience and people who want to live in kind of the urban core of a downtown Saint Pete that continues to grow.

                                          I want to go to a caller on line one. It’s Erin Catron from Sarasota. She’s calling in today to give us an update on what’s going on in the Sarasota real estate market. How is it going, Erin?

    Erin Catron:              Hey, Andrew, it’s going good. How are you this morning?

    Andrew Duncan:    Doing wonderful. Appreciate you jumping onto the show today to talk about what’s going on in the Sarasota and what you’re seeing down there in the market.

    Erin Catron:                        You bet. Well, I think it’s a lot like everywhere else it seems to be in Florida. Things are really hopping and obviously we are coming into the season: our inventory is low so it’s a great time for those sellers to take advantage of the market’s prices that seem to be coming up. We saw about a 16 percent increase from this time last year from the amount of the sales price and it’s just incredible what’s going on right now. It just seems like it’s a really, really great time to be able to get your house on the market and get the activity that you need.

    Andrew Duncan:    So, if you’re listening in Sarasota today, it’s erincatron.com; it’s E-R-I-N-C-A-T-R-O-N dot com. Erin, specifically, when it comes to foreclosures, are you guys seeing a lot of foreclosures hitting the market?

    Erin Catron:              No. Foreclosure inventory is extremely down compared to this time last year or even the year before that. It is almost dried up and…

    Andrew Duncan:    And, and…

    Erin Catron:              Go ahead.

    Andrew Duncan:    Yeah, we’ve seen the same thing here. It’s starting to recover a little bit. Doesn’t that mean it’s a great time – just like you mentioned: it’s a great time for sellers because they do not have the competition and you’ve got the population increase coming.

    Erin Catron:                        That’s exactly right. And, you know, everybody keeps talking about the shadow inventory, shadow inventory, shadow inventory and whether that will happen or not, nobody really knows. What we do know is that the listings filing is still up and about 80 percent of the home owners’ mortgages are either behind or far behind with their mortgages according to corelogic trends and, basically, what that means is that – and it is and ‘if’; it’s always an ‘if’, because nobody has the crystal ball to be able to say. But what we do know is: right now the inventory is down, the prices are going up, the foreclosure inventory is almost obsolete and if that changes and those listings do become foreclosures then the sellers could be looking back and kind of shaking their had going: “Oh, I missed my chance.”

    Andrew Duncan:    And that’s exactly true. That’s why it is such a great opportunity because you could have a little bit of a dip. Right now we’re seeing great things in the real estate market. And, again, I actually joked that every time I hear the words ‘shadow inventory’ I have like a gargle reflux because people ask you about it so much.

    Erin Catron:              Exactly.

    Andrew Duncan:    And I had people calling on the show all the time about it and it’s…you know you can never predict specifically what’s going to happen with those because some of them could go short sales, some of them could go modification, some of them the bank can package up and sell them bulk to investors which is happening a lot.

    Erin Catron:                        Bulk sale, exactly. And you know the thing about that, though, even – I’m glad you said it – because even they’re doing the bulk sale I think what the listeners need to understand, as well, is that that bulk seller things sold to an investor.

    Andrew Duncan:    Who is going to sell it eventually.

    Erin Catron:                        Yes. They’re going to go on the market. It might be a rental, it might be a hold, it might be…but they’ll still get purchased and a lot of those are flips: a lot of those are rehabs when they’re going to go in and we deal a lot with investors who buy that bulk inventory. There are some great opportunities for the investor there even though those opportunities are getting smaller and smaller. But it’s exactly what you said. I would cringe too when I hear of ‘shadow inventory’ because nobody, nobody can really tell what’s the future is going to hold. But what we do know is what’s going on right here and right now, in our backyard.

    Andrew Duncan:    So, Erin, you recently started a new show, I believe, down in that market, correct?

    Erin Catron:              I did. I started a few weeks ago.

    Andrew Duncan:    And what channel is that going to be on and what days are you on? Just for our listeners down there to maybe get a spin on your market compared to Tampa Bay.

    Erin Catron:                        That’s right. ‘WENG’ and that’s ‘1530’ – it’s based right in between Sarasota and Charlotte County so it has a pretty good base for those listeners that are in the Sarasota County as well as Charlotte County. And that is on Saturdays at noon, so it’s from noon to 1:00 on Saturdays. It’s right there; right once the football games begin to start

    Andrew Duncan:    Catch a little taste of real estate before you go watch the other football games.

    Erin Catron:                        That’s exactly right: get ready, get pumped up for those games before they all start on those Saturdays.

    Andrew Duncan:    How is the new construction market? I was talking about that in the beginning of the show. Here, we’re obviously seeing a lot of cautious optimism: more homes are getting built; developers moving back in to some of the urban core areas with condos and townhomes; we’re really starting to see a lot of positive things. I had a builder on the show a couple of weeks ago and he talked about how they were up at 30 and 40 percent this year. Are you guys seeing the same trend in building?

    Erin Catron:                        It’s almost identical to what you just said. And that’s funny you said that because I’m actually having a builder on the show next week and we’ll talk about the exact same thing. Our permits in Charlotte and Sarasota County are way up compared to the last two years. I think that they are almost heading at what it was in 2008 which is great that they’re actually starting to come back up. That’s always a great indicator, too, that the market is getting better. You know…

    Andrew Duncan:    And flipping, too – same concept. Investors are buying and rehab and putting back on the market. That means there is margin. That means it is spread and the difference between what you can get for retail and distressed to where there’s the value increase there. Because, obviously, when someone buys a distressed home, fixes it up and re-sales it, it ends up triggering a higher sale count for a neighborhood which pulls values up.

    Erin Catron:                        That’s exactly right. And it’s a great opportunity. The great thing about real estate is one thing leads to another, leads to another. You talk about a great time for sellers but I’m telling you, too, that it’s a great time right now for investors. You hear that the foreclosure inventory is down and the distressed are down and now those investors that are going to go: “Well, what now?” And I’m telling you that our investors are getting into the new construction – not crazy like they were before – everybody’s being a lot more cautious, they don’t want to go through a repeat of what happened in the past, but as far as the land: land is still actually pretty inexpensive to buy.

    Andrew Duncan:    It’s cheap. Right, it’s cheap.

    Erin Catron:                        Yes. So, if you can find a right piece of land and with the construction cost still very reasonable, that’s a great investor opportunity, as well.

    Andrew Duncan:    Well, Erin, we greatly appreciate your call and for those listeners out there who are tuning in, Erin appeared on our show a couple of month: erincatron.com – our local Sarasota real estate expert who comes on the Duncan Duo Show. Thanks for calling in and have a great rest of your weekend.

    Erin Catron:              Thanks, Andrew, you too.

    Andrew Duncan:    So, again, you’re listening to the Duncan Duo Real Estate Show here, on 970WFLA. I was just talking to Erin about house flipping – that was one of the articles I was going to get to. Again, you know when you’re in a really down, depressed market, it’s hard for people to be able to flip homes because there’s not as much margin, there’s a lot of anxiety, a lot of people don’t want to take the risk. But it’s definitely coming back. We work with a few clients that buy homes, fix them up, rehab them and sell them. I think that any time you see that going on you know the market is starting to turn the corner because part of their benefit – and especially investors that look to do the same thing, part of the benefit when a market is starting to turn and appreciate is that slight percentage gain that they’re going to get, not only in the repairs that they’re going to make to improve the property but then some of the market benefits of an appreciating market. We are starting to see that.

                                          How long the appreciation lasts? I don’t know but it’s pretty much been going on the last twelve months. We continue to see rises in our average sale price and great signs across the board. As long as the banks don’t dump all of the foreclosures on the market at once, I think we’re going to be in a pretty healthy real estate market the next couple of years.

                                                    Again, you’re listening to the Duncan Duo Real Estate Show. If you have questions, call us: in Hillsborough 990-9352, in Pinellas 461-9352, toll-free 1-800-969-9352. We will be back to continue answering your questions and talk about the Tampa Bay real estate market after a quick break here, on 970WFLA.

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    Andrew Duncan:    We’re back here and we’ve got Lloyd on the toll-free line with a question about real estate prices here. I’ll just touch on it really quick in case – I think you had a bad cell connection. But our average sale-price in Tampa Bay – I talked about that in the last show – the real estate statistics: about 175,000 is our average price point. You can get single-family homes as low as probably $100,000 in good neighborhoods that are move-in ready. And then, obviously, the lower price points in areas where the home may need more work or more rehab, all the way up to millions of dollars. It depends on what you’re looking at buying. But our average sale-price in Tampa Bay is about 175 and that covers the entire Tri-County area. You’ve got more expensive parts of town, like South Tampa, West Chase, Carrollwood, the beaches – you know, some of those areas you’re looking at average price points at 300 to 400 thousands.

                                                    Again, you’re listening to the Duncan Duo Real Estate Show here, on 970WFLA. I want to talk real quick about: United Kingdom buyers must act quickly to secure Florida property bargains. When you’re talking to a real estate agent about selling your home, one of the key things in our market right now, you want to ask them is how are they going to get exposure for your home internationally. It’s one of the things we focus a lot on we sold a lot people that don’t live in the United States. But right now, specifically, buyers in Britain – prices look even better thanks to the best dollar and pound exchange rate in six month. So, great opportunity to market your home to them, because not only will they gain from the benefit of our real estate market when it recovers but you’re seeing a lot of Europe buying real estate in Florida, specifically for hedging the exchange rates and the benefit of that when they go to sell, an exchange rate is on a different place.

                                          So large portion of our market does continue to be sold to international folks and UK is a large portion of that. Some tips and facts for those folks out there wondering why does the UK look at buying real estate in Florida? I think our market being down as much as it is, there are restrictions on foreign purchases of real estate and, specifically, their visa regulations for the UK in the US, they have to stay of up three months at one time before they’re getting an alternative visa. So, if they want to buy and have a vacation property here for a few months at a time and rent it out for the rest of the year, it helps obviously making it more marketable.

                                          And then, obviously, Florida is one of the US states with no income tax so if they happen to come here and generate any income while they’re here, they’re not looking at paying additional taxes on that. Again, a great portion of our market is that international marketing and you’re going to see, I think, a nice spin on buyers from the United Kingdom coming here and buying while the exchange rate continues to be as low as it is.

                                                    You’re listening to the Duncan Duo Real Estate Show. If you have real estate questions, you can give us a call: 990-9352 in Hillsborough, 461-9352 in Pinellas and toll-free 1-800-969-9352.

                                          Florida Supreme Court recently upheld the formal couple homestead exemption. A Honduran couple with a child entitled to a homestead exemption because there is no question their kids live in the home permanently. For long-standing you had to be…you had some challenges for anyone who wanted a homestead exemption that didn’t live in the United States. However, they moved here, bought a property, titled in the in their name but then their children lived here permanently, while they were travelling back and forth. Another step in a positive direction for folks internationally, looking to buy homes here. Maybe move family here. It is that even when you don’t necessarily live in the United States and you are titled on the property, you may still qualify for a homestead exemption through either others in your family living there or obviously if you fully relocate and spend a reasonable amount of time here as your primarily residence, you get it. There’d been long-standing challenges to people that would come here, buy a property and not live here permanently. Now it looks as though from the recent Supreme Court ruling – and I’m not a lawyer so, you know, every situation is going to be different, but recently the Florida Supreme Court upheld a form couple’s homestead exemption because they had children that lived here permanently and they would only come and visit from time to time.

                                          So, if you have a real estate question, give us a call: 990-9352 in Hillsborough, 461-9352 in Pinellas and toll-free 1-800-969-9352. I’m going to talk after the news-break about the real estate market: how more and more new agents are getting into the business as some licensees continue not to renew and get out of the business. We are starting to see a change in population of who a realtor is. Also, talk about sellers having trouble estimating their prices and the constant questions we get about how accurate Zillow and Trulia are on estimating your home’s value, after a quick break here, on the Duncan Duo Show.

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    Andrew Duncan:    We’re back here on 970WFLA, talking about the local real estate market. Just want to give you a snapshot of some of the upcoming shows. Next weekend we are going to have Chris Boss from the law firm Boss, Arrighi and Hoag to talk to us about some legal questions in relation to real estate. November 4th, we will have Richard Vazquez from Artisan Insurance on the show and November 11th, we will have Nate Davis from Plant City Mortgages who comes on the show second Sunday of every month.

                                           And any time we’re not on air if you want to look up our group of highly professionals that come on the show that we recommend to our clients, you can click on ‘Preferred Vendors’ after going to our main website, which is theduncanduo.com and then click on the ‘Preferred Vendors’ icon off to your left. So, I want to talk about the real estate license renewal in September. 32,000 real estate licensees in the state have not taken all the necessarily steps to renew their license by the September 30th, 2012 deadline. Obviously, a lot of those people are going to not be in the real estate business any more. They’re going to either have their license go null and void or inactive.

                                          Interestingly enough, we’re seeing a similar trend in the increase of new people getting into the real estate business. While people that couldn’t ride out the storm are getting out because they couldn’t shift their business or they decided to pursue some other opportunity, we’re starting to see a new wave of real estate agents getting into the business: a more tech-driven, youthful exuberance as we continue to see the new licensees increase at the board of realtors. I spoke to Richard Vazquez from Artisan Insurance a few weeks ago. He sponsors some of the new agent orientation stuff on our local real estate board. He relayed to me that he sees more people at that new agent orientation than he had seen in years.

                                          And I can see the same thing in our business. We’re regularly getting contacted by people looking to get into the real estate business and I can tell you back in 2009, 2010, we didn’t have that happening. So, if you are a new agent, obviously we’d love the opportunity to talk to you. You can check out our careers page by going to theduncanduo.com and then click on ‘Real Estate Careers’. We love working with new agents and helping them grow because it wasn’t that long ago that my wife and I, in 2005, started our real estate business and kind of climbed to being ranked as high in the nation; we started with just being a brand new agent.

                                          Nonetheless, we’re starting to see a shift in the number of agents that are in the business getting out, but then an increase in new agents getting into the business. For people who are curious, what does it take to get the real estate license: there aren’t any specific…you don’t have to have a college degree or anything like that. You have to take the real estate course which is taught by a variety of different companies: Bob Hogue, I believe the Cooke School is another one, there are several online, as well and both Bob Hogue and the Cooke School have classes online. You take a State-sponsored course, you pass their exam, then you pass the State exam, the background check and you’re ready to go. You have to go through some continuous education every year to stay up at the market but it’s not as complicated as people would think. The State exam isn’t exactly a cakewalk, either, so be prepared to study if you look to go on that path.

                                          So, HOA is continuing to tell renters that they’re not welcome. So, if you’re an investor our there looking to buy an investment real estate, be very cautious; make sure you know what’s going on in an HAO before you decide to buy because some Home Owners Associations are really starting to put a clamp down on investors wanting to rent their homes out. Some home-owners complain that local laws and neighborhood association covenants are becoming too restrictive on renting in an economy that already makes it tough to sell home – something to really consider. We’ve seen this happen a few times: in condo and townhome communities you have to make it your own for a certain period of time or have stringent rent restrictions in place where they have to approve your tenant and they may not approve your tenant.

                                          So, don’t assume that you can rent out a property you can buy. Make sure to do your due diligence. It’s a struggle. We’ve seen people do it where they’d gone out, they bought something and then they decided that they wanted to move into something else and they’d like to keep it, turn it into a rental and the home owners association prevents them from doing it. Now, it’s not something I necessarily agree with all the time, I understand home owners associations wanting to do what they can to keep it an owner-occupied neighborhood, to keep it nicer and that sort of thing but at the same time as an investor or someone who wants to move up to a new home and turn their current home into a rental, make sure you check with your home owners association so you don’t go out and buy a home and then find out that you cannot rent yours and now you’re going to pay two mortgages – that’s where our guaranteed sale could step in and help you. Nonetheless, make sure you do your due diligence on home-owner’s association.

                                          You’re listening to the Duncan Duo Real Estate Show here, on 970WFLA. You can call us with your questions: 990-9352 in Hillsborough, 461-9352 in Pinellas, toll-free 1-800-969-9352. I want to talk about tampamarketanalysis.com. One of the topics that I am going to talk about after we talked about the website a minute ago it’s how Trulia and Zillow are less effective than realtors. One way that we help our clients is with tampamarketanalysis.com – it’s a website we’ve set up. You can go there, you can input your information about your property and you can get a monthly report about homes that are selling in your neighborhood, so you can get a feel for what the market value and market averages are.

                                          It’s a free report that comes out every month. If you were curious about selling your home a couple of years ago and couldn’t and maybe thinking about selling it now, you’ve seen an improvement in our market, go to tampamarketanalysis.com and find out if you have the ability to sell today or not and so that you can know when it is time for you to sell. So, Trulia and Zillow continue to be less effective than realtors. An independent real estate industry research analyst studied 33 ZIP codes and 11 US markets to estimate the impact of Trulia and Zillow and how correct they are. In the markets he analyzed he concluded that local real estate broker sites display 100 percent of agent-listed homes for sale compared to about 80 percent on the national site. So, in other words, you may be missing 20 percent of the market of homes that are available if you’re using some of the national sites like Zillow and Trulia to search for homes because real estate brokers in many instances have to pay fees to have their listings advertized on that website and some of them opt not to. Some of them opt not to participate in the syndication and so you’re going to miss some inventory if you’re using one of the national sites. It’s best to use local real estate broker site.

                                          Our local real estate broker sites show newly listed homes for sale seven to nine days earlier than on national portals. So, when you talk about some of these national portals, there’s a delay on the data they feed from the MLS. It takes time for that data to hit. Sometimes there are mistakes; sometimes that are glitches. The point is that if you are in a competitive market and you’re relying on some of these websites to find homes, you’re going to miss the boat on some of the best inventory because it’s going to sell before it ever makes to that website.

                                          Local real estate broker sites almost never show home listing as active after it’s been sold. 30 percent of the listings appear as active on national portals and they’re no longer for sale. So, if you look at Zillow or Trulia or any of these national websites, you may see homes as available and they may have already sold. You could go through the hassle of calling the realtor, calling your realtor, getting excited about going to see the home, driving by the home and it sold a week ago because the data is slower. If you use a local real estate brokerage website that feeds directly, real time, right out of the MLS, then you’re good to go. Obviously we have that on our website at theduncanduo.com.

                                          And then the last portion was: they conducted the study independent in terms of valuations. They found that Zillow claimed to be off and it went from 10 to 30 percent in ZIP codes throughout the cities that they studied. And I can tell you that that’s the same thing in Tampa Bay. We see a significant amount of homes that are not correctly priced on there because they’re only looking at data. They cannot tell what school district your home is. Sometimes they cannot tell if it has a pool, renovations on the inside, the lot size – a lot of features that your home has, Zillow is only looking at data and they cannot tell that data like a realtor or an appraiser can in terms of valuating the home.

                                          Sellers continue to have trouble estimating their sales price though. National home values survey results in 100 real estate agencies – 77 percent of sellers say their home is worth more than the real estate agent recommended sale-price. This is pretty much been a norm in the real estate business forever. There’s a reason you bought the home and you probably think it’s worth a lot more than it is and, unfortunately, it’s only worth what someone will pay for it, even if you think it’s more. We regularly run into these challenges with people have misconceptions about real estate values and they think their home is worth more than what it is because of their really cool wallpaper or the tile that they bought 1994 from ACE value that has crystals in it. Your home isn’t worth more because of that. Nonetheless, it’s really important to take a realistic approach to pricing your home because overpriced homes cost you a lot more money. You then end up lowering the price, sitting on the market, getting lower offers and continuing to make mortgage payments. So it’s really important to price your home effectively for what the market will bear, not necessarily for what you think it is worth.

                                          So, again, you’re listening to the Duncan Duo Real Estate Show here, on 970WFLA. NAR – National Association of Realtors released a report this week that September existing home sales were down, the prices continue to improve – got a real easy way to evaluate that: home sellers are down because there isn’t any inventory so there’s not as much for buyers to buy and pick from. So they’re waiting for the right home because they cannot find it, because we’re down so much in inventory compared to where we were a year or two years ago. Some of that is foreclosures not hitting the market, being held off by the banks, nonetheless, sales are down but prices continue to improve because ‘supplying demand’. Real estate is all about supplying demand, so the less homes you have on the market, prices can go up a little bit because you have more people competing for that same home. And vice versa: the more inventory you have, lower price drop buyers have more negotiating power, more room to work with the seller on lower price.

                                          I’m going to talk about appraisals after the break. The appraisals remain a big hurdle in our local real estate market. I am going to give you some tips about how to work through the appraisal process if your home’s for sale or under contract and I’ll continue to talk about the local real estate market, give out a few key websites as well after a quick break here, on the Duncan Duo Show.

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    Andrew Duncan:    We’re back here, on 970WFLA, talking about the local real estate market. Short sale relief may not get extended. If you’re out there in a home, contemplating doing the short sale of thought about doing a short sale, you really don’t have much time left. There’s a provision on the books right now that allows you to if your short sale your home and it closes before the end of the year, it allows you to not get the tax consequences if it’s you primary residence. After the end of this year, unless the law gets extended, you pay 1099 damages on the forgiven debt. There’s a law, again, that was passed by President Bush just before he moved out of the Office, that gave protection on that forgiven debt.

                                          So, it’s really something to strongly consider. Not a lot of time left. We certainly cannot guarantee getting a short sale done in this short of time but I strongly encourage you hire the folks at Boss, Arrighi & Hoag, get some foreclosure defense going and really push strong to get it done by the end of the year if it’s something that you’re thinking about doing.

                                          Low home appraisals continue to cause contract glitches. Recent studies by the National Association of Realtors as well as other industry groups continue to show appraisal problems having sales fall apart. Some of the major problems reported by realtors: some appraisals used for foreclosures, short sales and run-down properties as comparable sales without making adjustments for market conditions or the condition of the property. Foreclosure typically sells for 20 percent-plus lower than traditional homes and short sales 15 percent-plus lower. Adjustments are not being made on those. Praise values do not reflect market conditions, such as rising prices, the presence of multi-bedding, low inventory. Interestingly enough, a few years ago when the market started to drop, oh boy, they were more than willing to depreciate on properties and to add negative value adjustments for market conditions and label as a down-market. But today when a market starts to swing back in the positive direction, we’re getting a lot less recognition for banks and appraisers about what’s going on in our local market which is low inventory, bidding wars and rising prices.

                                          Appraise values are inconsistent and fluctuate widely. Out of town appraisers not familiar with the local market conditions are being used in a lot of instances because they’re cheaper. If you’re having appraisers from three Counties over coming into Tampa Bay and appraising a high-end property when they don’t really understand the differences between the school boundaries or the different benefits of living in a particular community over another and how those value adjustments really come into play in the real world. And then turnaround time by both appraisers and banks is slow. Getting loans closed in 30 days today by most lenders – not by Plant City Mortgages because they’re awesome – but most lenders today continue to be a challenge and the turnaround time for those continue to cause problems.

                                          What can you do? I think one thing that you can do is maybe have your property appraised up before you put it on the market. You can work with an agent that knows how to contest the appraisals and how to work through some of those challenges as well as make sure to differentiate some of the features of your home, some of the benefits, some of the upgrades you’ve made, have printed out lists, have data, receipts and information for the appraiser once they come out to your property. These are all the things that we do but certainly not every real estate agent does and it is a challenge today getting trough the appraisal process. Foreclosure boomerang: buyers are coming back to the market. People that were foreclosed on two, three years ago, are beginning to buy homes again today.

                                          If you were foreclosed on and did a short sale two or three years ago you might be able to qualify for a mortgage again: either through a traditional FHA loan or possibly through another lending opportunity. 729 households that were foreclosed on during the housing crash are now eligible to apply for an FHA mortgage. FHA mortgage wants you to wait three years to apply after a foreclosure or short sale. So, again, the ability to qualify for a loan is back if you have good credit and income after your foreclosure happened.

                                          So, we talk about tampabaysmokingdeals.com on the website every week. Hand-picked list of 50-plus that are the best bargains in our market. We go through this list every week and we’re searching for the best price for square foot in the neighborhood, the best water-front homes in the area, the best condos in the area, foreclosures, short sales – it’s pretty much the Tri-County area, Pasco, Hillsborough, Pinellas, all the way from Ruskin up to New Tampa, down to Tierra Verde and South Tampa; the entire Tampa Bay area; 50 of the best priced homes on the market. We hand-pick them and select them every week and, again, it’s tampabaysmokingdeals.com – and it’s ‘smoking’ with a ‘g’. So, it’s tampabaysmokingdeals.com.

                                          We’ll be here with you next week to answer the real estate legal questions with the law firm of Boss, Arrighi & Hoag. Thanks so much for tuning into the Duncan Duo Real Estate Show and have a great rest of your Sunday.

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