Archive for November, 2008
Why Buy Now? Low Interest Rates Will Not Last
Interest rates are very low today by historical standards….and they are on the rise. If you plan to have a mortgage on your next home, then act today. An increase in mortgage rates could wipe out any anticipated reduction in your monthly payment that you may have realized from Tampa’s lower home prices. While the Jimmy Carter era saw interest rates soar to 18% and push home ownership out of reach for many, Doug & Annette Bohannon still found ways to help people buy & sell homes in Tampa. “Today we see the printing presses churn out US Dollars to pay for the trillion dollar bailouts, and the value of those dollars is falling. We expect interest rates to increase”, according to Doug Bohannon.
30 Year Conventional Mortgage Rates 1970-2008
Consider a typical home that sells for $218,900. You put down 20% and get a 30-year fixed-rate mortgage at today’s rate of 5.5%. Monthly principal and interest come to $994.31. Let’s say that 12 months from now the same house goes for 10% less, or $197,010. But by then the recession is history and the Fed is jacking up rates to stem inflation. If mortgage costs rise a point, to 6.5%, your monthly payment would be $994.94 and you’d have saved nothing. Meanwhile, home prices might steady and sellers might become less willing to negotiate. And you have spent a year living someplace you’d rather not be. Full Article.
- by Dale Bohannon
Why Buy Now? Receive a 28% Discount
Would you like a 28% discount on your property taxes, home owners insurance, PMI, title insurance, intangible tax, escrows, and your mortgage payment? Would you like to find your Tampa dream home for nearly 1/3 off? It feels good to pay 1/3 less than the person sitting next to you on an airplane flight, but it feels even better to pay 1/3 less than the person living next door.
Many of the costs associated with purchasing and maintaining a home are based upon the purchase price. The September 2008 S&P Case-Shiller Home Price index reports that home prices in Tampa have fallen by 28% since the highs of July 2006.
S&P Case-Shiller Home Price index – Tampa
September 2003-September 2008
* The S&P/Case-Shiller Home Price Index has been tracking changes in the value of the Tampa residential real estate (single-family homes) for 20 years. The index measures monthly changes in Tampa sale prices of re-sale homes, capturing re-sold sale prices to form sale pairs. (Much like retail analysts look at same store sales; this index tracks same home sales over time). The S&P/Case-Shiller Home Price Index is calculated monthly and published with a two month lag.
- By Dale Bohannon
Buyer Negotiating Tip: Payoff the CDD
Do you love the home and community, but hate the CDDs? Ask the seller payoff the CDD bond as part of your negotiations. This is but one of many tactics from the Team Bohanon playbook that can help you reduce monthly payments and buy your dream home in Tampa.
Many communities in Tampa, and throughout Florida, include a Community Development District (CDD) fee. This fee is added to the county tax bill, and then returned to the community to payoff the infrastructure bond that was used to fund improvements within the community. CDD bonds are often used by master planned communities to build roads, water management, waste/sewer, schools, conservation areas, streetlights, bridges, parks, swimming pools, golf courses, security etc.
There are some Tampa communities that have annual CDD fees ranging from $800 – $3500, depending upon the size of the home and the ammenities offered. The CDD is usually composed of 2 parts: repayment of the bond, and on-going maintenance. CDD bonds are usually 20 year obligations that are divided amongst residents of a community. A large part of the annual CDD payments are interest on the bond.
In order to reduce the total monthly costs of buying a home, you might consider requiring a seller to pay off the lifetime CDD for the home. We can request a CDD payoff for an address. Payoff amounts depend upon how many years remain on the bond, and the annual debt assigned to the home. Total payoffs are usually $8,000-$20,000 for newer communities.
By eliminating the bond portion of the CDD, your monthly payment could be a couple hundred dollars a month less. When the time comes for you to sell the home, you will likely have the only home on the block with lower fees.
Homeowners who are looking to differentiate their home from the competition might consider paying off the CDD as a marketing tool. For more info, contact Team Bohannon today.
- By Dale Bohannon
Sell Your Home During the Holidays
Don’t wait till the new year to sell your home in the Tampa Bay area. While there may be fewer buyers looking for homes during the holiday season, the ones who are looking tend to be more serious. We have always found November and December to be excellent months to sell homes. Why?
- Families are still moving to Tampa, and many time their moves during the break in the school year.
- Homes look especially appealing, warm, and welcoming as a result of the holiday decorations.
- Many sellers take their home off the market during the holiday season, so you will have less competition when selling your Tampa home.
- Tampa has many corporate transfers that happen in over the holidays so that corporate executives can begin new jobs right after the first of the year.
We have always been astounded that many Realtors simply close up shop and stop working in December; incorrectly believing that no one wants to buy or sell because they’re too busy with the holidays. Half of my competitors are out of the marketplace!
- By Dale Bohannon
Number of Home Sales Up – Prices Down
Lower prices are driving home sales in Tampa. The Florida Association of Realtors is reporting a 10% increase in the number of homes sold during the third quarter when compared to last year in the Tampa Bay region.
The Tampa Bay area saw the median sales price of a single-family homes drop by 19% to $169,700, which is the lowest price since May 2004. Bargain hunters are enjoying a banner season. Realtors estimate that up to 60 percent of Florida properties that are selling are distressed homes: short sales, pre-foreclosures or bank owned (REOs).
- By Dale Bohannon
Room to Negotiate?
How much of a discount off of the asking price can you expect when purchasing a home in Tampa? An analysis of Hillsborough County residential sales data reveals that the answer has remained constant: 6%.
Homes that are priced correctly from the start can expect to sell within 45 days; while homes that are initially listed with unrealistic prices must undergo price reductions before eventually selling for 94% of the final asking price. Contrary to the pervasive pessimism and rampant fear mongering in the media, Tampa Bay home buyers are recognizing solid vales and are buying homes everyday.
The chart below shows the SOLD-vs-LIST PRICE (blue line) and the AVERAGE DAYS ON MARKET (bar) for recent months as calculated from Tampa Multiple Listing Service (MLS) data by Trendgraphix.
St Pete Times: Tampa Bay Realtors who succeed in lean times
According to a St Pete Times analysis of residential sales data, one Realtor & Real Estate Team has emerged as the “Most Consistent” in Tampa Bay. The St Pete Times analyzed Realtor-by-Realtor home sale totals to compare thousands of realtors as compiled by the Kenst Report.
The article names Team Bohannon as a top-five local producer every year since 2003.
The Times quotes Annette Bohannon as saying: “Our mental state has always been a key to our success. Whether it’s perceived as a good market or bad, we are going to do well.” Annette Bohannon advises: “Answer calls immediately. Hire assistants to help with customer service, such as designing property brochures and keeping “Info” boxes stuffed with them. Invest in time-saving technology. During market lulls, advertise more, not less. Put your photo everywhere. See every listing as an awesome responsibility. When faced with a problem, innovate. Skip the nightly news.” Full article.
- By Dale Bohannon
Days on Market
How long are Tampa homes on the market before going under contract? The answer depends upon many factors: well priced home in good condition still sell within a month or two, while over priced homes do not sell. The answer also varies by the price range and location of the home. The chart below shows overall DAYS ON MARKET statistics as compiled from the Tampa Multiple Listing Service (MLS) by the Greater Tampa Association of Realtors for various regions (Lutz, Carrollwood, South Tampa, New Tampa, Apollo Beach, Brandon, Pasco, etc).
- By Dale Bohannon
Real Estate Market Share
Which company sells the most homes in Tampa? The cart below shows the number of homes sold in Hillsborough County over the last 12 months by the top 5 brokers. Once again, Coldwell Banker Residential Real Estate Inc. has earned top honors by selling more homes than the next 4 rivals combined; and by selling an astounding 3.6 times as many Tampa homes as the 2nd place brokerage. (data by Trendgraphix November 2008).
As the first national real estate brand to have reached the 100-year milestone, Coldwell Banker offers an internationally recognizable brand, a powerhouse relocation network, and a substantial local presence. Our affiliated mortgage, title, home warranty, property management and closing services can provide an provide you with an all-encompassing real estate experience.
If you are looking for results…try the number 1 company, and try the number 1 performers at Coldwell Banker: Team Bohannon.
- By Dale Bohannon
Tampa Housing Market: Inventory Levels Decline
There are fewer homes available for sale in Tampa. A study of housing sales data reveals that inventory levels in Hillsborough County and Pasco County have declined from 24.4 months in January to 15.3 months of inventory in October 2008. The data was compiled through the Multiple Listing Service (MLS) and includes homes for sale by Tampa Realtors – which usually represent 85% of all home sales in the Tampa Bay area.
At the current sales rate, it would take just over 15 months to sell all the existing homes in Hillsborough and Pasco (assuming that no additional homes entered the market). Housing inventory levels are obtained by dividing the number of available homes by the number that close each month. The chart below shows inventory levls for the past 3 years.
- By Dale Bohannon
