Tampa Homes Best Buys Blog

We just had the best October since 2005 in the Tampa Area. Buyers are scooping up homes to use their $8,000 tax credit.

You now have time to finish up a short sale purchase. I have dozens available for you to choose from. Pres. Obama extended it until April 30th.

Now that the holidays are approaching and the first time home buyers’ tax credit time frame is running out, it’s time for real estate investors to start looking for deals.   Investors have been competing with first time home buyers all year long.  November and December will be good times for investors to get a deal.  Call me if you would like a list of foreclosures in Tampa.  I have an updated list daily.  I also have some large apt. complexes that are short sales and foreclosures.  Two large complexes are in receivership by the banks.  They are in good areas and have a very low price per door.  Janet Montano, Remax ACR Elite 813-956-3563

I’ve noticed the last few weeks that the stats are picking up in the luxury home market.  As consumer confidence improves and people feel more secure about their jobs, the buyers who have been waiting for the market to bottom out are coming out to look at property.   There are some awesome homes for sale in the $1 million+ price range that are priced to sell.  You’d be amazed at what your dollar buys right now.

Tampa’s latest home pricing reports show inventory dropped way down, so now we have 8 months in a row of reduced inventory and for the 1^st time since August of 2006 we are in single digit number of months of inventory (8.76 months).    This means that homes priced fairly will sell in a fairly short amount of time.  Also, June was the 2^nd month in a row of increased average list and sales price (jumping over $10,000 from May).     Soon appraisers will not have to calculate  negative “Timing Adjustments”  because when the inventory is going down and the prices are going up,  we are Not Declining any more!!!! �
Here are 3 reasons to buy now:
1.  Low, low prices
2.  Low, low interest rates  (Some of us old broads remember 18% interest rates in 1980, yes I was in real estate then.)
3.  $8,000 from the government right now for buying your first home.  You can amend your 2008 taxes and get a refund.  Use the money to fix up a foreclosure.
I’m a Bank REO listing agent and have lots of homes for you to choose from.�
The closer it gets to the November 30th deadline, the less the selection will be.  Plus you need at least 30 to 45 days to get a new loan anyway.
I hope you call me soon, before you miss out!  813-956-3563
Janet Montano, REmax ACR Group  www.TampaHomesBestBuys.com

photo credit: LancerEI know most people think it’s a buyer’s market, but the market in Tampa is changing again.  Houses under $150k are moving quickly.  Homes over $400k are even moving if they are priced right for the number of square feet.
I have an appointment to show houses on Monday to some great buyers in the $400k price range and 3 out of 5 of the homes they selected had contracts written on them in the last 2 days!
A bank REO listing I got last month for $103K got 12 contracts on it in 3 days.  I scheduled an open house for it 2 days after I listed it and buyers were waiting for me to get there.  I haven’t seen that for 3 years.
If you are thinking about buying your first house and are still waiting to start looking, you may miss the boat.  The closer we get to the November 30th cut off date for the $8,000 tax credit, the less affordable inventory that will be available.

There’s no big secret to it, but you need guts to do it.  It works every time I have tried this.

If your property is easy to show and you price it to be the least expensive property for sale in the subdivision by several thousands below its value, you will get so much traffic through it that will produce several offers.  Usually the property goes for more than you would normally have gotten if you priced it at its true value. 

When people see a deal, they can’t resist and start getting competitive.  This works especially well with anything that is in the price range of first time home buyers.

There was an article today in the Florida Association of Realtors email talking about this same thing. 

Bidding wars break out on low-priced homes

FORT LAUDERDALE, Fla. – July 21, 2009 – Bidding wars are returning to South Florida’s housing market, as investors and first-time buyers compete for homes and condominiums listed at $200,000 or less.

The race for properties is reminiscent of the boom years from 2000 to 2005, when multiple offers on all types of dwellings helped push prices to record highs.

Back then, a dearth of properties for sale had buyers rushing to scoop up anything they could find, for fear that prices would keep rising. Now, frustrated with a bloated inventory of foreclosed homes in disrepair, buyers go to great lengths when they spot a house or condo in pristine condition.

“When they find a good listing, people are pouncing,” said Terry Story, a real estate agent for Coldwell Banker in Broward and Palm Beach counties.

Agents say the heated competition has been building in recent months, a result of low mortgage rates and the $8,000 tax credit for first-time buyers that expires Nov. 30.

Steady sales increases during the past year gradually have worked off the inventory of available homes. Real estate agents are convinced that the overall market has hit bottom or is close to one.

Housing market researchers have a different take.

Because of mounting job losses and the lingering recession, the bidding wars are mostly confined to homes offered at deeply discounted prices. Also, housing experts say, the market needs more than investors and first-time buyers taking the plunge for a rebound to occur.

Analysts don’t expect across-the-board price increases soon and predict that prices in Broward and Palm Beach counties will keep falling, albeit at a slower rate, through this year and into 2010.

The bidding wars “are a good sign, but I don’t think it’s the sign that we’re at the bottom,” said Brad Hunter, a housing analyst with Metrostudy, a market research firm with an office in West Palm Beach.

Rising unemployment is sure to lead to more foreclosures and property sales later this year, which almost certainly will lower prices, Hunter and other analysts say.

Some observers suspect that lenders are holding back the supply of foreclosed homes, promoting bidding wars to increase prices now before the flood of new listings further depresses prices.

Banks dispute that notion. They say they’re overwhelmed with foreclosures and try to market them for sale as quickly as possible.

“The longer we hold them, the more money it costs us,” said Nancy Norris, a spokeswoman for banking giant Chase.

The bidding wars in South Florida are giving sellers more leverage after three years of buyers calling the shots.

Investor Greg Bales bought a three-bedroom home in Lauderdale Lakes three months ago for $65,000 – $1,900 less than what it sold for in 1985.

Bales, 41, beefed up the curb appeal with a new paint job, trees and other landscaping. Inside, he installed laminate floors, granite countertops, new kitchen appliances and an alarm system.

He put the home back on the market July 10 for $139,900 and fielded 10 offers, three for more than the asking price.

He selected a bid from a first-time buyer for $145,000, and the deal is expected to be complete next month.

“We would have had a bunch more offers, but my real estate agent told the people it really wasn’t worth their time if they weren’t submitting a full-price offer,” Bales said.

Eric Cormier of Philadelphia is searching for a small home for his sister-in-law in Delray Beach. He offered $120,000 cash for a house listed for $152,000, only to be out-bid by a few thousand dollars.

Another home he considered received four offers in one day.

“I was surprised,” said Cormier, 47. “I thought there was a fire sale going on in Florida.”

In some cases, first-time buyers are losing homes because sellers prefer dealing with cash investors who don’t have to fiddle with financing.

Meanwhile, some real estate agents are creating “drama pricing” – listing properties for far less than the market value to attract bidders and drive up the eventual selling price.

“It’s like ‘Ta-da’,” said Douglas Rill, an agent for Century 21 America’s Choice in West Palm Beach. “It creates so much of a buzz that it results in a bidding war.”

Drama pricing typically happens with short sales. Those homes aren’t as much in demand because buyers know that it can take months for the deals to close. In a short sale, a lender accepts less than what’s owed on the mortgage and forgives the remaining debt.

Tony Thomas, 44, is looking for a home in the $200,000 range in central Palm Beach County. He made three offers, only to be told each time that another buyer out-bid him.

His agent, Liz Golub, told him to “run like a bunny” to make strong offers as soon as properties come on the market. The strategy paid off recently when the owner of a home near Lantana accepted his offer. But because it’s a short sale, the bank must approve the deal, and that could take months.

“It’s frustrating,” Thomas said. “I have not seen the benefits of this buyer’s market right now.”

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What do bees, mold and green pools have in common?

These are all issues I’ve been dealing with on foreclosures or short sales for sale.   Although this is a fantastic time to buy (especially for first timers), you need to be very selective about homes that are not being lived in or not taken care of by absentee owners.

One house we have under contract has a hole in the exterior wall and some bees have set up honey production inside.  It turns out you cannot just kill the bees and patch up the hole.  You must have it all removed by a licensed beekeeper and get the honey comb out or it will grow mold.

Green pools with frogs and turtles living in them are now common place.  I had 5 turtles rescued from 1 of my listings.   

And I don’t even open refrigerator doors any more—not after the maggot story I have to tell.  It wasn’t funny when it happened, but now my husband and I enjoy telling the story after a glass of wine when good friends are over (only after we have eaten do I tell it!)   Let’s just say that whenever I call the housecleaners to do work on a new foreclosure listing, they now ask if maggots are involved.

Buyers are looking for deals these days, but you really need to use a Realtor who has rehab (fix up) experience or has worked around construction for a while.  That will save you lots of time and trouble in the long run!  And make sure you do an inspection on any house you are considering purchasing.

Visit my website at www.tampahomesbestbuys.com

Janet Montano, Broker  813-956-3563

jmontano@janetmontano.com

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Most of my current clients are first time home buyers from around the country.  I have had the opportunity over the last several years to close over 400 transactions.  I have never seen such a great opportunity for first time or move up home buyers!  There are great deals out there in every price range. 

My fear is that as we get closer to the expiration date of the first time home buyer’s tax credit on November 30th, the competition will get hotter for the most affordable homes. 

Recently I have seen the most outstanding deals available in the Tampa areas in these areas:

1. 100% USDA Rural home loan program in Mid to Eastern Pasco county
2. Foreclosures are great deals if you can find one in good condition
3. Short sales are also good, and the banks will sometimes pay closings costs and/or make repairs, if needed.
4. Luxury homes and second homes: loan options are not favorable for these types of properties, therefore if you can qualify, you can get a really nice deal.

I have several listings in move-in condition that are traditional sales by owners with equity.  This will give you the opportunity to ask for closing costs, have a quick closing and not have to do any work after closing.  Ask to see my listings!

Remember it’s a buyer’s market!  The deals are out there, let me help you find them.

Janet Montano, Broker Associate, Remax ACR Elite

jmontano@janetmontano.com

813-956-3563

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The Greater Tampa Area Board of Realtors had a meeting today and the featured speaker was the Hillsborough county Tax Appraiser, Rob Turner.

It was great to finally get some mysteries solved about property taxes.  It turns out the tax assessor calculates values of homes using a complex computer model which uses statistical modeling.  A real eye-opener was the fact that they can only use values from the prior year.   By law they are not allowed to use any sold comps after January 1^st  of the year they send the tax notices.    So if you get your TRIM notice in September of 2009, the comps they used to calculate were based on sales from January 1^st 2008 to December 31^st, 2008, but the values are weighted heavily on sales in the last quarter of that year.  That explained a lot of questions my clients had. 

Another mystery solved was the $50,000 Homestead Exemption.   I had heard it wasn’t really a total of $50k but never understood the calculation.  Here’s the way it breaks down:

First $25,000 of assessed value:  No property taxes

Second $25,000 of assessed value:  You pay full property taxes

Third $25,000 of assessed value:  No taxes except for school taxes

There’s a link on the tax appraiser’s website you can use to calculate taxes on a property.  It’s very helpful if you’re buying or selling a home.  And you can call their office if you need help with determining Portability on your home.

http://www.hcpafl.org

If you’re thinking of buying or selling, call Janet Montano, Remax ACR Elite

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