Archive for Tampa real estate
Why Buy Now – The Impact of Waiting
Business Week has an article that makes a case for buying now based on low interest rates. The article discusses the financial impact that interest rates have on the cost of buying and paying off a home. “Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed.” If you are waiting for Tampa Bay home prices to fall further, click here for the article.
Here is a quick excerpt:
You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.
If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.
What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime. full article.
Did You Pick The Right Home? The Contract-to-Close Process.
Congratulations, your offer to buy the home was accepted - now what? Did you really pick the right home? Does your Realtor have a “Due Diligence Checklist” to help determine if this is truly the right home to match your needs across the four fundamentals of home buying? You need a proven process to ensure that you take advantage of every negotiation opportunity that arises during the inspection, appraisal and closing process. The goal is to confirm if this is the right home, reduce unpleasant surprises, and save you money by going way beyond what a traditional agent would offer.
Manage the Process
Once the home is under contract (in escrow), our team and system manage all the details. Using our tested Home Buying System, we coordinate the timelines, escrow, inspections, repairs, survey, warranty, appraisal, financing, home insurance, title and other aspects of the closing. There are over 125 steps, a multitude of variables, and several companies that must communicate and execute perfectly to close the transaction on time.
Fall Out Rate
National statistics show that 34% or more of transactions fall apart during the contract phase. While we cannot control every aspect and every company involved in the transaction, our system pro-actively manages the variables to ensure that you are buying the right home at the right price. When turbulence arises, you can have the confidence to know that we have encountered this situation before and have an alternate flight plan. Here are some examples of unpleasant mortgage surprises, but there are others for inspections, repairs and title issues.
Are you tired of agents who “wing it? Have you been left in the lurch before? Call today to experience a team with a repeatable business process that consistently produces raving fans.
What is a Real Estate Team? Why Should I care?
Who & What is “The Team”?
You might be wondering “what is a Real Estate Team”? Why should I care? Realtors who provide goodservice can expect to see business grow. Like any small business, there comes a time when the business grows to a point where one person can no longer do everything. At this point, Realtors must decide how to proceed: attempt to maintain service levels all by themselves, or hire a team. Traditional Realtors operate as solo agents, while others form teams – or quasi operating companies. Regardless if you select a traditional Tampa Realtor (solo practitioner) or a team, you will have one primary point of contact responsible for fulfilling your goals. Here are the differences below should matter to you:
A Real Estate Team, as run by Team Bohannon:
- has multiple agents working together
- has a staff to implement marketing plans
- has administrators oversee details between contract and closing
- has “specialist” for various aspects of the real estate business
- utilizes systems to achieve predictable results & service levels
- allows agents to grow “as a business” rather than “as a craft”
- pools resources and spend money on marketing
- has meetings, business process and accountability
- has employees, benefits, budgets, and financial planning
- ensures someone is available 7 day per week
- allows agents to achieve life/work balance.
- can do several things at once: show homes, implement marketing plans, provide feedback on showings, update a market analysis, handle negotiations, review inspections, follow-up on financing, meet appraisers, manage contracts, and attend closings.
Traditional Agent/Solo Realtor
- is kind of like a “one-man-band”
- can quickly become very busy and overwhelmed
- faces major time pressure to do multiple things at once
- has a challenge maintaining service levels at times
- must have diverse skills: sales, marketing, administrative, clerical, creative
- cannot realistically work 7 days a week, every week
- are more subject to burn-out
- will leave town and take vacations or be unavailable at times
- must do several thing at once: show “out of town” buyers homes, implement marketing plans, provide feedback on showings, update a market analysis, handle negotiations, review inspections, follow-up on financing, meet appraisers, manage contracts, and attend closings.
Using Systems Properly
We know that great systems poorly executed will fail to deliver results. We have learned a few lessons en-route to selling over 4,100 homes in the Tampa Bay area. We rely on a team approach to ensure our systems produce world-class service at every phase of the transaction. There are over 125 steps, exponential variables, and several companies that must communicate and execute in harmony to close a transaction on time. The team implements systems to coordinate the timelines, escrow, inspections, repairs, survey, warranty, appraisal, financing, home insurance, title and other aspects of the closing. It has taken years to assemble a team and align the right people with the right skills to run the system. If turbulence arises, you can have the confidence to know that we have encountered the situation before and have an alternate flight plan. The system and the team allow us to deliver a predictable level of service that you can feel confident in when recommending us to your friends and family.
The Extended Team: Business Management Team & Vendors
Every team has a coach. Although we have been in business for decades, we have found value in consulting a Business Coach for process audits, new ideas and continuing education. Our coach brings ideas from top experts in the real estate, marketing and technology fields from around the country. We discuss best practices and key books such as: The Speed of Trust by Stephen M.R. Covey. Our business management coach helps us keep the focused on building long term relationships that form the foundation of world-call service and durable competitive advantage.
As your Value Added Real Estate Experts in Tampa, we work closely with lenders, title companies, inspectors, movers and an array of home repaid vendors. We cultivate relationships with qualified vendors that are in alignment with our mission. We look for experienced vendors with high standards of performance. In some cases, we have negotiated special discount for our clients. We rely heavily on satisfaction surveys to monitor 3rd party vendor performance.
Call today to sepak with Team Bohannon at (813) 979-4963.
Why use a Realtor on New Construction?
Thinking about a brand new home? From starter homes to custom estates, the Tampa Bay area offers a great selection of home builders. Many people just wander into a new home model center to look, and we understand that. Before making such a large purchase, however, please consider the benefit of having an experienced agent working on your behalf at no cost to you. Team Bohannon can offer the inside scoop on the builder, on past negotiations, on neighborhood values, on factors impacting prices, and on competitive alternatives. Team Bohannon can help negotiate the best deal for your money, review contract terms and facilitate the smoothest possible closing. To search builder inventory and floor plans – click here. Upon entering a builder’s model center and registering, please tell the builder’s sales person that you are working with Team Bohannon at Coldwell Banker. Why?
The Inside Scoop for FREE
The prices might look good, but do you know the inside scoop? Is there a reason the price is so low? Could you be making a big mistake? Why not ask someone who has extensive experience in the neighborhood, and with the builder? Someone who knows the skinny on area builders, contracts, taxes, CDDs, HOAs, school boundaries, lawsuits, road construction, crime, insurance rates, sink holes, Chinese drywall, financing, inspection issues, appraisal issues and other factors that you might not uncover in a Google search.
Who’s Looking Out For You?
There are many excellent and reputable builders in the Tampa Bay area, but is the builder’s primary mission to be your advocate? If you work directly with the builder’s salesperson, then who is looking our for your interests throughout the selection, negotiation, financing, inspection and closing processes? You may want to have an trusted advisor who can help you throughout the transaction at NO COST to you.
No Cost
Tampa Bay area builders pay all Realtor commissions. Builders set aside advertising, marketing and sales budgets to compensate Realtors. Builders actively and enthusiastically want to work with Realtors, and the commissions do not impact the price you pay. You will not pay more if you work with a Realtor, and you may pay less because of negotiation skills and relationships.
The Right Home
Why not consult a FREE resource who can suggest communities that might not have been on your radar? When deciding between homes and upgrades, will you recoup the difference in costs when you go to re-sell? Why not maximize the selection of homes you have access to by asking someone who knows about homes not listed for sale on the internet? Why not leverage the experience and expertise of someone who has helped hundreds of happy homeowners find the perfect new construction, re-sale, short sale, or bank owned home?
The Right Price
Is the builder’s sales person offering you be best deal possible? Could you buy this home, or a better home in a better neighborhood for less money? How are you suppose to know? Are there other incentives that are available thorugh further negotiating? Why not ask a Realtor at Team Bohannon who does this for a living and who has negotiated hundreds of deals with builders? Why not insist on a Comparable Market Analysis of home values in this and similar neighborhoods? Going directly to a builder does not mean you will get the best home, the best deal, or the best advice.
Negotiation Experience
Might there be a better deal out there? Why not use a professional negotiator at no cost to you? Someone who has helped thousands of homebuyers purchase at the best price possible? Why not trust someone who can help you implement a winning negotiating strategy, navigate complex contracts and close the sale on time without surprises.
Avoid Pressure to use a Builder’s Lender
Many builders will offer incentives and closing costs assistance if you agree to use their lender, title company and/or other related service providers. This may or may not be a good deal for you. For example, the value of a 3% builder contribution toward closing costs can be offset by hidden fees or interest higher rates. Team Bohannon uses a Lender Comparison Worksheet to compare the Good Faith Estimates (GFEs) of multiple lenders to help discover the best scenario for you.
Legal & Closing Process
Real estate agents do not give legal advice, but after reviewing hundreds of contracts we can point out potential pitfalls and recommend clauses to protect you. We can help facilitate the inspection, financing, title, home insurance, and closing process to ensure a smooth transaction.
For more info on purchasing a new home, call Team Bohannon at Coldwell Banker today (813) 979-4963.
Short Sale, Deed-in-Lieu, Foreclosure, Deed-For-Lease?
A record 23% of US homeowners owe more on their mortgages than their homes are worth according to a study by First American CoreLogic and an article in the Wall Street Journal on 11/24/09. A whopping 45% of Florida residents who have a mortgage are underwater! The article states that: “More than 40% of borrowers who took out a mortgage in 2006 — when home prices peaked — are under water. Prices have dropped so much in some parts of the U.S. that some borrowers who took out loans more than five years ago owe more than their home’s value.” With distressed homeowners unable to refinance due to appraisal issues, and most unable to modify their loans, Tampa residents are wondering where to turn.
The state of the U.S. economy and housing market has brought many homeowners from security to uncertainty. But within this uncertainty, solutions have been created to assist those who need help. If you or someone you know in the Tampa Bay area is struggling to pay the mortgage, it is vital to understand ALL the options available.
The pressures of an upside-down mortgage are not just felt by the homeowner. Lenders are looking to avoid foreclosure and work with homeowners to find solutions to their financial situations. Lenders are not in the real estate business, do not wish to take ownership of a home, and do not want a house to sit idle on the market.
WHAT OPTIONS ARE AVAILABLE?
If you or someone you know is facing foreclosure and the damages it will cause to credit scores, employment or security clearance, you should consider a short sale or a deed-in-lieu of foreclosure (or “deed-in-lieu”). These options could allow you to sell or walk away from your home without incurring liability for deficiency.
WHAT IS A FORECLOSURE?
By definition, foreclosure is the termination of all rights held by the homeowner covered in a mortgage. The process, in which the lender claims ownership of the property, begins when the homeowner fails to make mortgage payments at the appointed time- this is called delinquency. Typically, a formal demand for payment is issued from the lender through a Notice of Default. Although this varies by state, the lender will often issue this notice when the homeowner has been three months delinquent on the mortgage payments.
Foreclosure can:
· Remain permanently as public record on your credit history 10+ years
· Lower credit scores anywhere from 250 to more than 300 points
· Make you ineligible for a Fannie Mae-backed loan for 7 years
· Challenge current and future employment
· Put homeowners at risk of high deficiency judgments
· Become an issue against security clearance if applicable
WHAT’S A SHORT SALE?
In a short sale, a seller works with their mortgage lender to accept a price that’s less than the amount owed on the home. This results in the seller avoiding foreclosure, and allows the lender to avoid taking ownership and selling the property.
WHAT’S A DEED-IN-LIEU OF FORECLOSURE?
A deed-in-lieu is a process in which a property is given fully to the lender because the homeowner can no longer make payments. The lender then sells the property in order to retrieve a part, or whole of the loan balance owed. In most cases, the homeowner must attempt to sell the home at fair market value for at least 90 days before a mortgage company will consider a deed-in-lieu. This may not be an option if there are other liens on the property, such as second mortgages, judgments from creditors, or tax liens.
DEFICIENCY JUDGEMENT?
For both a short sale and a deed-in-lieu, your lender can claim you owe a deficiency judgment on your remaining balance. This means the lender may have the right to pursue the difference of what you owed and the eventual sale price of the home. In a foreclosure, all rights to your property are lost, while the lender retains the right to pursue a deficiency judgment. It will also remain on your credit history for ten years or more. During negotiations for both short sales and deed-in-lieu transactions, it is imperative to understand whether your lender reserves the right to pursue a deficiency.
WHAT ARE THE POSSIBLE TAX CONSEQUENCES?
When it comes to the tax implications of a short sale or deed-in-lieu transaction, you will need to consult a tax professional. As a general rule, any debt forgiven by the lending institution will be considered income. Lenders are required to file a 1099-A with the IRS showing the deficiency, which could have tax implications for you. Once you have received Form 1099-A, you will need to complete IRS Form 982 to report how much of the debt was forgiven by the lender. Again, consulting a tax professional is a vital part of this process, and can save you from future financial difficulties.
WHAT ABOUT DEED-FOR-LEASE?
You might have read about a new program called Deed-for-Lease™. Fannie Mae created this program as an option for homeowners who are in distress but not eligible for a mortgage modification. Through this program, qualifying homeowners have the option to remain in their homes as renters after voluntarily transferring the property deed back to the lender. The homeowners must prove they are able to afford market rent, and then sign a lease with the lender. A deed-for-Lease provides an additional option for borrowers who do not qualify for, or have not been able to sustain other loan-workout solutions. While this program is unique to Fannie Mae loans, be sure to discover what options your lender offers to homeowners who do not qualify for loan modifications but wish to stay in their homes.
Following are a few of the homeowner qualifications for this program:
· The property is to be used as the occupant’s primary residence
· The occupant’s income is sufficient to cover rental payments
· Inspection shows that the property has been kept in good condition
· The occupant agrees to be responsible for regular maintenance
· The number of occupants is appropriate for the home
· The occupants signing the lease must agree to a credit review
· See http://www.efanniemae.com
WHAT IS YOUR FASTEST WAY OUT?
A deed-in-lieu is the fastest solution for Tampa Bay homeowners out of a foreclosure, compared to the timeline of a short sale. However, very few lenders will negotiate a deed-in-lieu if a lien, or second mortgage has already been taken out on the home. Conversely, a short sale provides the feeling of accomplishment for selling your home.
WHAT SHOULD I LOOK OUT FOR?
If you are considering either a deed-in-lieu or a short sale, it would be wise to review the terms and conditions of your transaction carefully. Make certain your agent can explain whether or not a deficiency balance is forgiven, or how long the lender can pursue this judgment. Both options can save you from the distress that foreclosure will cause on your credit, finances, future employment and, most importantly, your stability. With more than 1 in 8 U.S. homeowners not paying the mortgage, it’s clear that no one is immune to the current economic situation.
We believe every Hillsborough County and Pasco County homeowner deserves the best information and education to protect themselves from losing their home to foreclosure and ruining their credit. For those already struggling to pay their mortgages and unsure of what to do next, understanding short sales and deeds-in-lieu can ease their stress and potentially save them from an impending foreclosure.
Deciding on which route will be best for you and your family’s future is the most important decision you can make. Please use this information to better understand the options available.
As a CDPE, Certified Distressed Property Expert, I have been trained to assist homeowners in these difficult situations. If I can provide you with more information or assistance, please don’t hesitate to contact Dale Bohannon at 813.979-4963 .
Much of this article was written by the Certified Distressed Property Institute (http://www.cdpe.com), with edits by Dale Bohannon.
Tax Credit Extension Proposed for Military
Good news may be on the horizon for service members in Tampa. A Bill in the House of Representatives, “H.R.3590: The Service Members Home Ownership Tax Act of 2009″, proposes to amend the Internal Revenue Code for members of the Armed Forces by waiving some of the restrictions on the first-time home buyers tax credit. One of the restriction lifted would include removing the tax credit repayment if a home is sold within three years of purchase due to a military transfer. The bill would also extend the tax exemption for payments to military personnel as a result of declining home values due to base closures. Click here to read the Bill.
As you know, Tampa’s MacDill AFB is the home of the U.S. Central Command (CENTCOM), U.S. Special Operations Command (SOCOM), the Joint Communications Support Element (JCSE), the 6th Air Mobility Wing and many other units. Beyond these active units, an estimated 130,000 veterans have made the Tampa Bay area their home. Tamba Bay service members have experienced extensive overseas deployments and may not have been able to participate fully in the tax credit for first-time home buyers.
Think Foreclosure is your only option…Think Again!
Owe more than your home is worth? Struggling with rising payments? Facing unforeseen circumstances? Need to move on to a new chapter? You are not alone.
Thousands of Tampa homeowners are facing the same tough challenges every day. Now more than ever, there are steps you can take to avoid foreclosure. You need guidance, confidentiality and someone who understands the serious choices you are facing about your home, your family, and your life. The wrong decision might make it impossible for you to repair your credit or purchase another home for 5-10 years. Foreclosures, short sales, and mortgage modifications can have vastly different impacts upon your future.
If you would like to speak with a Tampa Realtor who understands these difficult choices, please do not delay. You have options, and you do not need to go through the process alone. As Certified Distressed Property Experts (CDPEs), Realtors at team Bohannon provide FREE information that compares and contrasts ways to avoid foreclosure. Call today at 813-979-4963
Florida CDD Costs Impact Sales
Are community fees hurting sales? Most planned communities in Florida have CDD fees, Home Owner Association fees, or both. While the value of homes in Tampa has decreased 25-50%, neighborhood CDD fees have not decreased. A $200 per month CDD fee may have been acceptable when a home was valued at $400,000, but it might become an objection if the same home is now worth $300,000. The combination of property taxes, CDD fees, and HOA fees can put monthly payments out of reach for some home buyers. On the flip side, most CDD neighborhoods have newer homes, more amenities, stronger enforcement of deed restrictions and tighter security. Some communities even include phone, high speed internet, cable TV and alarm monitoring services.
What is a CDD?
There are over 600 Community Development Districts (CDDs) in Florida, including 116 in the Tampa Bay area. Florida law allows for the establishment of Community Development Districts to fund infrastructure needs and neighborhood amenities. A CDD has the authority to issue tax exempt bonds at favorable rates and spend the proceeds on developing and improving a neighborhood. CDD funds pay for building utilities, roads, water, waste/sewer, schools, conservation areas, streetlights, and bridges. Additionally, many communities build amenities such as parks, club houses, swimming pools, tennis courts, trails, golf courses, security gates, etc. CDD bonds are repaid through an annual property tax assessment divided amongst the residents of a community, usually over a 20 year period. As homes are built, residents eventually take control of the CDD governing board. CDD fees allowed developers and builders to defray upfront expenses and offer homes at lower costs, at least initially.
How Much Are the Fees?
Most planned communities in the Tampa Bay area have CDD fees and HOA fees. The amount that a Tampa Bay homeowner pays toward the CDD usually depends upon the lot size, and the fees very by community. For example, a 90 foot wide lot might have an obligation of $150-$300 per month, while a 50 foot wide lot might pay $80-$100 per month.
What is the problem?
While Tampa Bay home values have declined by 30%-50%, the CDD fees remain fixed. Consider a home that was worth $500,000 at the peak of the market. In Tampa’s hardest hit Tampa neighborhoods, the same home may be valued at $270,000 today. If a potential home buyer puts down 10%, the principle and interest payment would be $1304. Since the home is located within Tampa city limits, last year’s property taxes were at estimated at $5656. While we expect taxes to decline next year based upon the drop in property values, a buyer must qualify at the current tax amount of $471 per month. The CDD fee on this home is a rather high $3837 per year ($320 per month). Since the fees are paid as part of taxes, a home buyer would need to be able to qualify for the extra $320 per month added to the payment. The county property tax plus the CDD would be $791 per month, while the mortgage principle would be $1304, for a total of $2095. If Home Owner’s Insurance is $200 per month, a borrower would need to be able to qualify for a monthly payment of $2295. A consumer with an average debt load would need to have an income in the $80,000-$100,000 range to qualify.
What can be done?
The long term solution might be to re-finance the CDD bonds for additional years at lower rates, but the bond market is experiencing turbulent times. For the near term, if an individual home owner wants to make their home more marketable, they should consider paying off their portion of the CDD bond. A one-time payment of $10,000-$15,000 might make the home the only one in a neighborhood without a CDD bond fee, and would make it more attractive to buyers. For a homebuyer, call Team Bohannon today for strategies to maximize your choice and purchasing power.
Do You Know Where Your Realtor Is?
Feeling abandoned? Is your trusted Tampa Realtor nowhere to be found? The Wall Street Journal has an article (click to read) today about Realtors who have left the business or are scrambling for extra work outside of real estate to compensate for the housing market’s long decline.
If your Realtor is missing in action….don’t panic. The professionsal Realtors at Team Bohannon of Coldwell Banker are standing by to fill the void.The 2009 Member Profile published by the NATIONAL ASSOCIATION OF REALTORS®, found the typical Florida REALTOR completed 6 sales in 2008 with a median sales volume of $0.9 million.
Why settle for average? Team Bohannon has helped thousands of families close on their dream home. The lessons learned along the way might benefit you. But none of this is about us, it is totally about understanding and responding to your needs, wants and dreams. We have taken years of experience and implemented a system to deliver a consistently successful experience for a home buyers and sellers. Our exclusive Home Buying System and Home Selling System ensures that a team of professionals implement best practices to realize your real estate goals. Contact Team Bohannon today at 813-979-4963.
New Tampa Condo and Townhouse Market
The median condo/townhome price in New Tampa (33647) this week is $105,000. The average New Tampa condo or townhome is on the market for 257 days and sells for $107 per square foot. Inventory is tightening and days on-market is falling. Demand heating up. These are tentatively bullish signs for prices.
- New Tampa Condo and Townhomes
Prices in the 33647 zip code have been on a downward trend for 3 years. This week, while essentially flat, does not break us out of the cycle. We are seeing declines in values approaching 70% in some complexes. In looking at the supply and demand for New Tampa (33647) units, market conditions are strongly in the Buyer’s Market territory. With several months of inventory available at the current sales rate, buyers have ample choice. There are 63 units available that are not short sales which could close in time to take advantage of the first time home buyer’s tax credit. Contact Team Bohannon at Coldwell Banker today for additional info (813) 979-4963.
New Tampa Townhouses For Sale
Click the map to see New Tampa condos for sale:
New Tampa Condos For Sale
