2013 Projected to be A Great Year for Florida’s Buyers and Sellers

Florida Realtor’s chief economist, Dr. John Tuccillo predicts that Florida’s real estate market will improve in 2013, considering the stronger economy. Over the past two years, job creation has improved across the state. Better jobs, equals higher standard of living and better housing conditions.

Another positive sign includes the low mortgage rates. Some buyers may find it difficult to secure a mortgage, due to stringent credit criteria. However, it still remains an attractive incentive to secure a 30-year, fixed loan with an interest rate under 5%.

Cash is still King. Sellers are seeing more and more cash offers which prove to be very favorable in multiple offer situations. These cash offers are often from investors who will remain active throughout 2013.

Foreclosures, short sales and other distressed properties will also remain very much prevalent in 2013. Although in abundance, the foreclosures and short sales have stabilized and both real estate professionals and buyers have adjusted to this market. Foreclosures and distressed properties are so prevalent that they have become their own property type like condos, single family homes, vacant land, etc.

New home developers will also move forward with some projects this year. They won’t build in large volumes; however, there is enough confidence in this year’s market to build new homes in niche markets.

International buyers and investors are anticipated to continue to acquire homes in bulk. The largest acquisitions are said to be had by Canada and Latin American, specifically narrowed down to Brazil and Venezuela. Florida can also look forward to a number of new residents. Many retirees who lost money back in 2008/2009 are slowly regaining this wealth and are anticipated to move to Florida to retire.

Would You Like $15,000 in Down Payment Assistance

Wells Fargo is collaborating with non-profit organizations throughout the United States to offer down payment assistance and financial education to aspiring home owners. The down payment assistance program is called the NeighborhoodLIFT, and the City of Tampa is among the cities participating in this program. Eligible individuals could receive $15,000 for down payment assistance. The funds can only be used to purchase a primary, owner-occupied residence in the City of Tampa.

Interested home buyers must meet the program requirements which include the following:

· Must be approved for home financing.
· Household income must be equal to or less than 120% of the area median income.
· Must attend homebuyer education sessions before your closing — the sessions are available through Tampa Bay Community Development Corporation or a HUD-approved counseling agency.
· Buyer does not have to be a first-time homebuyer. If buyer the currently owns a home, it must be sold before closing, and it cannot be rented/leased.

Here are some important links that offer additional information about the step by step process, the income limits, as well as the mortgage checklist to obtain home financing successfully through Wells Fargo. Please contact me for more information, as well as the mortgage contact who has been instrumental in assisting my eager buyers thus far. Looking forward to hearing from you.

Why Take the Key? It Won’t Help Your Buyer’s Chances.

 

I recently attempted to show a bank-owned property that was priced considerably below market-value. One of my eager buyers was hoping to view this property and ultimately submit his highest and best bid. The property had been on the market for two days and there was a mandatory seven day waiting period before any offers were considered. When we arrived at the property, I unlocked the lockbox, only to find that the keys were missing. Confused and a little annoyed, I informed my buyer and called the listing agent. The listing agent was aware of the situation and placed a call into the property manager to have the property re-keyed.

ATTENTION REAL ESTATE AGENTS!
Removing the key from the lockbox to reduce the likelihood of the property being shown to other potential buyers is not only very unethical but may prove to be a disadvantage to your buyer. The seven-day waiting period could be extended to rectify the inconvenience and allow interested buyers time to submit their highest and best offers. Also, your buyer could change their mind making your efforts futile and unnecessary.

As a Real Estate professional, you should inform your buyer of the competition associated with the property purchase. Review the comparables (Comps) with your buyer, as well as strategize and determine the best offer for the property. As a real estate agent it is important to be professional and ethical in all business endeavors.

ATTENTION BUYERS!
If your Real Estate Agent suggests removing the key from the lock-box, please ask them to reconsider. As a buyer, if you were viewing properties, you too may be a little annoyed to know that you cleared your schedule for this viewing only to find out, there is no key to access the property. Additionally, if you were successful in securing the property, the absence of the key could delay other areas of your home purchase process including the inspection, appraisal, etc.

I am always disappointed with agents who employ this unethical practice. As a Realtor, your success is not measured by how many keys you can remove from a lockbox or how you can block the other buyers and agents through unethical practices. As a Real Estate Professional, buyers seek your services in a real estate transaction to be informed, educated, and navigated through this process. Buyers look to their real estate agent to negotiate on their behalf, and more importantly to be honest and ethical in all they do. Sometimes I wonder if I’m the only agent who works by these practices.

Special Report: Real Estate Provisions in 'Fiscal Cliff' Bill

Published by:  Daily Briefing: Wednesday, January 2, 2013
A service for members of Florida Realtors

WASHINGTON - Jan. 2, 2013 – Tuesday, January 1, 2013, the House and Senate passed H.R. 8, legislation to avert the so-called "fiscal cliff." Following are real estate-related provisions of the bill, which President Obama plans to sign into law today:

• Mortgage Forgiveness Debt Relief Act extended to January 1, 2014. In place since 2007, the act provided a tax break for homeowners who struggled through financial hardship such as a foreclosure, and were granted mortgage debt forgiveness. In the past several months, National Association of Realtors (NAR) issued numerous calls to action urging its million-plus Realtor members to ask lawmakers to extend the tax break for another year. More than a quarter of all transactions involve distressed properties, the NAR said in its plea. "Homeowners shouldn't be forced to pay a tax on money they've already lost with cash they never received."

• Deduction for mortgage insurance premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012.

• The 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.

• The 10 percent tax credit (up to $500) for homeowners for energy efficiency improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

• "Pease limitations" that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high-income filers. "Pease" limitations will only apply to individuals earning more than $250,000 and joint filers earning more than $300,000. The thresholds are indexed for inflation so will rise over time. Under the formula, filers gradually lose the value of their total itemized deductions up to a total of a 20% reduction.
First enacted in 1990 and named for Ohio Congressman Don Pease, who proposed the idea, the limitations continued throughout the Clinton years. The limitations were gradually phased out starting in 2003 and eliminated in 2010. Reinstitution of these limits has far less impact on the mortgage interest deduction than a hard dollar deduction cap, percentage deduction cap or reduction of the amount of mortgage interest deduction that can be claimed.

• The capital gains rate remains at 15 percent for individuals earning less than $400,000 per year and couples earning less than $450,000.  Any gains above these amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for the sale of principle residence remains.