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What’s Up With Housing?

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Homeowners associations can institute some ridiculous rules—and some of them can veer into illegal territory.
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Sur Club in St PetersburgSt. Pete’s Newest Emerging Neighborhoods.
Clusters of businesses, housing, academic institutions and agencies focused on marine science, healthcare and innovation are at the center of two emerging neighborhoods.
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Overall, the residential land market in Florida is very strong as a result of the improving economy, combined with the continued influx of almost 1,000 people per day to the state.
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Efforts to reduce costs, increase efficiencies and incorporate innovation, technology and data are expanding the use of alternative valuation methods.
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Respondents claimed their favorite green features were recycling, smoke-free buildings, and walkability, while the most requested green features were recycling and composting, solar panels, and community gardens.
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What’s Up With Housing?

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If buyer demand continues to outpace the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the theory of supply & demand working as it should.
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Home builders report that customers are more cautious than before the crash and prefer smaller, value-packed homes.
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After two months of decline, consumer sentiment among Floridians increased six-tenths of a point in April to 98.1 from a revised figure of 97.5 in March. Among the five components that make up the index, three increased and two decreased.
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Research shows that millennials value organic, unplanned, authentic, and experience-based housing amenities the most. These amenities are generally not expensive.
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“In today’s competitive housing market, understanding what homes may command a premium or attract multiple offers can be hugely beneficial to buyers.”
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A low home appraisal can ruin the sale of a home. You can protect yourself from low appraisals. Here are some suggestions for buyers and sellers.


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What’s Up With Housing?

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Buyers at high-end waterfront properties are sparing no expense for storm-resistant features. They’re paying closer attention to the vulnerability of their current property and future property.
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Zillow panel of housing experts and economists sees dynamics carrying forward into next year, with the exception of interest rate rises. And that might be good.
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Home's Collateral ValueNew Challenges for Determining A Home’s Collateral Value.
Fannie and Freddie plan to waive the requirement for professional appraisal of purchase loans with an LTV ratio of 80% or lower.
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DRC commissioners agreed that the 300-foot-high Bezu would be dramatically out of scale with the neighboring Flori de Leon and other nearby structures.


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Explaining the Appraisal Process to Clients Early is Crucial

Appraisals

It all starts with reasonable pricing, knowing the comparables and advising clients properly.

Inman.com — After a seller and buyer reach a “meeting of the minds,” meaning that they have agreed to a price, terms and conditions so that a sale can move forward, most purchase agreements provide each principal a number of opportunities to re-visit the agreement.

When a problem arises, they can negotiate the issue, renegotiate the purchase offer (specifically, the purchase price), or they reach an impasse that could end the process.

Generally speaking, there are two major events or “contingencies” that stand between two relatively happy parties agreeing to transfer a deed. The two are the property inspection and the mortgage approval.

The property inspection usually occurs within the first week or so, and the appraisal usually occurs within weeks of the proposed settlement date, which makes an appraisal problem tougher on the parties as they are more invested in the process concluding successfully.

The mortgage approval involves a number of activities centered on vetting the buyer and appraising the property. The need for an appraisal is premised upon the concept that a loan is an investment in a buyer.

The lender earns fees for being in a position to make the loan and attempts to protect its investment by making sure that the property is “worth” the risk associated with making a loan to a person who may at some point (for a variety of reasons) become unable or unwilling to continue making the monthly payments to repay the loan.

In addition to whatever has happened to the actual market value of the property compared to the amount loaned, the process of taking the property back is a costly one.

Appraisers evaluate property based on a number of criteria, and the “value” they attach to a specific parcel is based on comparable activity. It is a snapshot that is a moving target.

Markets rise and markets fall so the durability of a given appraisal is not guaranteed. Results from years ago or for purposes other than a sale may be worthless when considered in the present day.

When attaching a marketing price to a listed property and when determining how much to offer a seller, the future appraisal should be given some consideration as no one wants a sale to fail, especially given the timing of the appraisal.

The appraised value is interesting as it purports to suggest a specific whole dollar amount to the “value” of a parcel. I am not an appraiser and respectfully suggest that two or more appraisers will arrive at different valuations.

Further, I would respectfully prefer to see that a sale price was either acceptable (meaning at or below the appraised value) or not rather than seeing a specific number when the value exceeds the offered price.

I have had sellers ask if they could raise the price!

Obviously if a house does not appraise, the parties do need to know the amount to see if they can work it out. As objective as it is meant to be, the result is subjective in that the parties want to still do business but may lack the resources to complete the process.

It all starts with reasonable pricing, knowing the comparables and advising the clients that the appraiser typically has what appears to the final say!

Agents should take time to explain pricing and the appraisal process early in the sale, so that no surprises occur later.

Thank you Inman.com.

via Andrew Wetzel… an associate broker with Long and Foster Real Estate in Havertown, Pennsylvania.


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What’s Up With Housing?

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Check Your CreditThinking of buying a home? Step #1… check your credit.
Buying a home is exciting. It’s also one of the most important financial decisions you’ll make. Choosing a mortgage to pay for your new home is just as important as choosing the right home.
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 Buyers are Stressed: 6 Reasons Why…
A TD Bank survey finds that confusion over necessary paperwork confuses 1 in 3 buyers; unexpected costs confuse almost 1 in 4; and financing worries affect 1 in 5.

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Home AppraisalHow to Prepare Your Home for an Appraisal.
What you need to know about the process, from a veteran certified appraiser.
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House FlippingHouse Flipping Increases for the First Time in 3 Years.
The rapid rise of home prices is believed to have played a major role in this increase.

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Trending Home Improvement Projects For 2017Trending Home Improvement Projects For 2017’s Housing Market
Smart-home technology and built-in bars are among the hottest home improvements for home sellers in 2017.
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http://www.TitleSecurityFL.com


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Recent Housing News

Appraisal ChallengesHome Prices Are Up…But There is a Challenge
Every house on the market has to be sold twice; once to a prospective buyer and then to the bank (through the bank’s appraisal). And when prices are surging, it is difficult for Appraisers to find adequate, comparable sales to defend the sales price.

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Surviving a Seller's MarketHow To Survive a Seller’s Market
You’re gonna need to bring your A-game, or don’t bother showing up at all.
Check out the survival tips below to stand out from the competition and get the edge.
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Florida RealtorsSurvey: Real Estate is the BEST Investment…
When asked the best place to put money in hopes of future returns, 35% of Americans surveyed said real estate. Only 22% said stocks or mutual funds while 17% said gold.

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Senior Housing OptionsCountry Faces Overwhelming Need for Affordable Seniors Housing Options.
The percentage of seniors who need affordable housing is rising faster than the increase in the elderly U.S. population.
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Shipping Container HomesThe Truth About Building a Shipping Container Home
They’re sleek. They’re innovative. They’re metal. They’re eco-conscious and sustainable. Did we mention hip?  But designing and building one is hard work—and it ain’t cheap.

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http://www.TitleSecurityFL.com

 


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Florida Realtor’s Legislature 2012 Positives

Following are highlights of the 2012 legislative session, which adjurned midnight 3/9.  A primary focus on initiatives that could strengthen the real estate market and improve the business environment.

Real estate sales associates and broker associates exempt from local business taxes. HB 7125, a bill by the House Economic Affairs Committee and Rep. Ken Roberson (R-Port Charlotte) exempts real estate sales associates and broker associates from paying local business taxes (formerly known as occupational license fees) if required in their city or county. Under Florida law, these individuals must affiliate with a real estate broker who already pays local business taxes. Brokers will continue to pay the tax. Repeal of the tax will save real estate licensees $3.8 million annually. Effective date if signed by governor: Oct. 1, 2012.

Mandatory septic tank inspections out, optional inspections in. HB 1263 , an omnibus health care bill by Rep. Matt Hudson (R-Naples), was amended yesterday with Realtor-supported language originally provided in HB 999 by Rep. Chris Dorworth (R-Heathrow) and SB 820 by Sen. Charlie Dean (R-Inverness) to repeal the mandatory septic tank inspection law passed in 2010. It establishes an optional inspection program for the 19 counties with the 33 largest springs. However, other cities and counties may opt into the program as well. Also, septic tank inspections cannot be required as a condition of sale. Effective date if signed by governor: March 9, 2012.

A major step toward creating a competitive property insurance market. HB 1127 by Rep. Ben Albritton (R-Bartow) reduces the amount of money private insurers must give Citizens Property Insurance Corp. if the state insurer goes broke after a catastrophic storm. The first check a private insurer writes after a catastrophic storm should be to their policyholders, not Citizens. However, current law requires insurers to pay Citizens up to 18 percent of their premiums within 30 days of being assessed. They can later recoup these monies from their policyholders. It’s hoped that HB 1127 will attract new insurers to Florida and keep existing insurers here. Effective date if signed by governor: July 1, 2012.

Tax boost for businesses. HJR 1003 by Rep. Eric Eisnaugle (R-Orlando) creates a proposed constitutional amendment to increase the exemption for tangible personal property taxes. Under current law, an exemption applies to the first $25,000 in property taxes such as business equipment. If approved by 60 percent of voters in the November election, the exemption would expand to include the value of tangible personal property between $25,000 and $50,000.

Options for challenging Citizens replacement cost estimates. In January, following discussions with Florida Realtors and policyholders concerned about unreasonably high replacement cost estimates, Citizens Property Insurance Corp. agreed to consider valuation sources other than 360Value software. HB 1101 codifies three options into law, including valuations prepared by real estate appraisers licensed under Chapter 475, F.S. Effective date if signed by governor: July 1, 2012.

Broad range of economic development incentives. HB 7087 is a large omnibus tax bill that’s part of the budget deal agreed to between the House and Senate. Of particular interest to real estate companies is an increase in the corporate income tax exemption from $25,000 to $50,000. Effective date if signed by governor: July 1, 2012. Reducing condo inventory and protecting an appraiser’s interests. The Department of Business and Professional Regulation (DBPR) pushed two bills this session that contain items of interest to the real estate industry. You may recall that the 2010 Legislature wanted to encourage investors to purchase blocks of condo units to reduce inventory levels. This was accomplished in part by amending condo laws to protect bulk buyers from some of the liabilities faced by condo developers. These protections were set to expire on July 1, 2012. HB 517 by Rep. James Grant (R-Tampa) extends the “bulk buyer” provision to July 1, 2015. Effective date if signed by governor: July 1, 2012.

The other DBPR bill, HB 887 by Rep. Clay Ingram (R-Pensacola), prohibits Appraisal Management Companies from requiring appraisers to sign hold harmless agreements as a condition of business. Effective date if signed by governor: Oct. 1, 2012.

Budget appropriations. Though the Legislature swept all monies collected for the Sadowski Affordable Housing Trust Fund into general revenue, it appropriated funds for economic development initiatives and tourism that could ultimately benefit the real estate market:

  • $61 million for the State Economic Enhancement and Development (SEED) Fund and other economic development funds. These monies may be used to fund affordable housing programs and projects.
  • $27.5 million for Visit Florida, the state’s marketing agency.
  • $8.6 million for Enterprise Florida, a state economic development agency.

In addition, the Legislature set aside $285,000 to combat unlicensed activity, $30 million for Everglades restoration, $8.4 million for the Florida Forever land acquisition program and $1.5 million to study nitrogen reduction and develop possible new technology for passive septic systems.

via  Florida Realtors® News