March is Household Inventory Month

Many people purchase homeowners or renter’s insurance and believe they are covered if theft, fire or flood occurs.  However, inorder to submit a claim to an insurance company you will need to provide an accurate Household Inventory list.  With the days of digital cameras and smart phones this makes the process so much easier than in years past.  Here are the steps you need to take inorder to make sure you can maximize your insurance claim.

1) First go room by room, taking either video or digital camera shots of the entire room.  Next take shots of individuals items of values (computers, tv’s, dvd players, printers, guitars, jewlery, bikes ,etc.).  Remember to open up drawers and closets, ensuring that you record everything you have.

2) After each room, write down the names of all major items first, then smaller items (record model numbers and/or receipts)  This process will take the longest, but is essential to show proof of ownership when requested.

3) After you have finished with the entire house, make a backup copy of your electronic pictures/video and your written list (including receipts).  Place these in a fireproof safe, safe-deposit box or other secure location off-site

4) Rember to update your list whenever you have new major purchases, this way you are always up-to-date.  Then on an annual basis review your entire list for items removed or missing.

For a downloadable inventory checklist visit AAA.com

The coming Storm of home PURCHASES?

Batten down the hatches, lock the doors and cover the windows, the deluge of home PURCHASERS are about to start flooding the Tampa Home Market.  While the doom and gloom of the real estate market has been loud and clear for some time, this is about to change for the better and in a big way.  The reality is that there are a significant number of buyers in the market today and more are lining up.  I fully believe that the pool of buyers will only surge in the next three quarters, and here’s why.

First, there are both major and minor investors that have been picking up properties in the truck loads for cash.  These investors are not looking for the standard property flip; rather they are taking pools of money, buying foreclosed properties and renting them out for the considerable cash flow potential.  As these property purchases occur inventory shrinks and the supply/demand line re-balance.

Second, there are many individuals that have been prudent during the last 5 to 7 years in regards to their finances.  Sure we hear stories about homeowner X and Y that are underwater on their mortgage or can’t pay their current debt.  However, there are even more individuals that did not extent themselves with homes they could not afford, or debt they could not repay.  In fact, a recent survey by the Mortgage Bankers Association pointed to 20% of home loans in serious delinquency or foreclosure.  While this number is high by historical perspective, there are still 80% of borrowers making things work.  These people saved their cash, invested in cash producing assets and/or lived within their means.  While times may have been difficult they reduced their outflows and maintained their budgets.  These same individuals now have the ability to put their money to work and they are looking for deals.

Third, the unemployment numbers and household income numbers are expected to reduce and increase respectively.  As people become employed and increase their income they tend to seek homeownership.  Homes currently on the market are affordable at a number of different income levels and as long as the properties are priced correctly buyers will buy.

Fourth, as existing sellers see properties around them sell, they will wonder why their own home is not moving.  This will force those sellers to either remove their home from the market (reducing supply), or lower the price of the property to be inline with market conditions and thus reaching buyers price point (increased demand).

The time has come, the deals are here and the opportunities are among us.  Buyers that see a deal need to take it or risk losing it.  While many might think this is a real estate agent’s self serving plug, the reality is that the smart money does not wait until the masses decide it is time to buy, they lead the pack!  Put on your coat, get your umbrella and brave the Buyer Storm that is approaching.

Tampa Real Estate Home Prices Feb 10

Today the S&P/Case-Shiller Home Price Index has been released.  For Homes in Tampa we saw a (-.6%) decrease from November 09/December 09.  This was a slightly large decrease than the October 09/November 09 decrease of (-.4%), however prices are basically flat.  In a year over year perspective in the Tampa Real Estate Market we saw a (-11%) decline.

At this point in the real estate cycle we are not surprised that prices are tending to stay flat or firm.  As we stated last month, we clearly are seeing many cases of multi offers on well priced properties and this is keeping prices firm.

BUYER PERSPECTIVE

It is worth repeating again that if you are buying homes in Tampa, and the offer price of the home is priced well, you need to be aggressive going after that property.  While you can certainly put in offers well under list price, the odds of the offer being accepted for newly listed homes is unlikely, there is probably another buyer either infront or right behind you willing to pay more

SELLER PERSPECTIVE

If you are selling homes in Tampa you need to price right to attract attention.  We continue to see many homes that receive multi-offers if the agent properly prices the property to sell.  For those sellers waiting on the sidelines or do not have to sell, we recommend waiting it out.

The Bubonic Plague of Housing?

 The Bubonic Plague of housing is know by another name, Condos!  Foreclosures abound, associations running deficits, folks leaving units abandon in droves!  The daily news stories are plentiful on all the reasons why NOT to purchase a condo in this market.  In fact, the Tampa real estate condo market has taken its own share of bloodletting, with more condo’s going to REO’s or short sales each day.  So why with a market in such frantic free fall would anyone in their right mind purchase a condo property? It’s simple, “investment opportunity”!

I am sure there are a number of naysayers rolling their eyes.  They are probably thinking to themselves “He is just another real estate agent pumping up properties to get a sale”.  The reality however is that the proof is in the pudding or in this case the numbers.  Now, before the critics speak up lets get something straight.  I am not suggesting that folks find any condo and things will be great, this would be insanity. What I am suggesting is like with ever other investment opportunity you have to run the numbers and look at the facts.

There are three specific criteria I look for when evaluating potential condo investments; the financials, the location and the construction or F.L.C.

The Financials:

Do the property numbers make sense?  I immediately look at two specific numbers hoa fees and rental rate potential. High hoa fees can be a killer for making a profitable investment and low current or future potential rental rates in the area are a nonstarter. Next, take a look at the amount of reserves the association has set aside for future capital improvements and their reserve roll estimates for these capital expenditures. If these look good next review the associations allowance for bad debt on hoa fees and unpaid unit hoa fees, these numbers should be low. A high bad debt number can mean financial ruin for the complex. Next, are there any special assessments coming down the pipe. Nothing can be worst then purchasing a unit, only to find you need to pony up another $10K to cover repairs. Finally, can the unit be cash flowed and garner a strong return on investment. Cash flow is critical, if you can not generate a positive cash flow you need to walk away and keep looking.

The Location:

As with any real estate purchase, location is critical. Finding the right location can mean the difference between success or failure in your investment. One positive note is that in certain markets condo developments were built in areas that were being revitalized. If the revitalization takes hold your investment can certain increase in value over time, if not you could be in for some difficult times. A good way to help assess the strength of the revitalization process is to understand the continued commitment by city or county governments to further invest in the area. Other important considerations are the emergence of bulk distressed buyers and the strength of the neighborhood associations.

The Construction:

During the days of condo gluttony, it was less about the construction of the property and more on how fast the units could be built. In many markets frame/stucco or frame/siding became common place; however there were many complexes which were built with concrete block or brick. I am of the opinion that concrete block/brick construction is the smartest move for condo investors. First, in my opinion these complexes hold up better to external wear and tear, thus reducing future exterior improvement costs. Second, they tend to be more desirable for renters; with strong unit noise insulation as well as being built in desirable urban dwelling locations.

One final note, in this real estate market many lenders will not even finance condo purchases, so cash is king.  The benefit of this is that banks holding these REO or short sale condos are taking substantial discounts to get the units off their books.

About the Author

Cristan owner of Fadal Realty Group of Century 21 Fisher & Associates, a real estate firm in South Tampa.  He works with buyers, sellers and investors in the real estate market and can be reached at www.dwellintampa.com

Fannie to pay closing costs on foreclosures

Fannie to offer closing cost aid on foreclosures

WASHINGTON – Feb. 1, 2010 – Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.

Fannie wants to clear out the nearly 50,000 properties it has in inventory – listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.

In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.

“Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,” Terry Edwards, executive vice president for credit portfolio management, said in a statement.

© 2010 Florida Realtors®

Tampa Real Estate Home Prices Jan 10

This morning the S&P/Case-Shiller Home Price Index has been released.  For Homes in Tampa we saw a (-.4%) decrease from October 09/November 09.  This was a smaller decrease than the September 09/October 09 decrease of (-1.6%).  In a year over year perspective in the Tampa Real Estate Market we saw a (-13.2%) decline.

At this point in the real estate cycle we are not surprised that prices are tending to firm.  We clearly are seeing many cases of multi offers on well priced properties and this is keeping prices firm.

BUYER PERSPECTIVE

If you are buying homes in Tampa, and the offer price of the home is priced well, you need to be aggressive going after that property.  While you can certainly put in offers well under list price, the odds of it being accepted for newly listed homes is unlikely, because there is probably another buyer either infront or right behind you willing to pay more

SELLER PERSPECTIVE

If you are selling homes in Tampa you need to price right to attract attention.  We continue to see many homes that receive multi-offers if the agent property prices the property to sell.  For those sellers waiting on the sidelines or do not have to seller, we recommend waiting it out.

Tampa Real Estate Market Perspective Jan 10

Our Tampa Real Estate Market Perspective: From our perspective we certainly see lower priced homes moving very quickly.  In fact we have had numerous cases were multiple offers are received on these properties.  The # of individual investors and pooled investors have increased and they are focused on REO properties in significant numbers.  They tend to avoid short sales (due to the length of offer evaluation time) and in most cases are paying cash, thus avoiding financing and appraisal hassels.  While this is great to clean up the inventory, it is also the low hanging fruit, unless mortgage holders increase offer response time, renegotiate a mortgage with the home owner or decrease prices ,we will not clear out enought inventory to significantly get us back to a balanced level.  To stay on top of market activity bookmark www.dwellintampa.com.

Sales of Existing Homes (Single-Family & Condo) for the month of December came in at an annual adjusted rate of 5.45 million down 16.7% from the November Levels of 6.54 million.  While this was less than the expected number of 5.90 million, it is not suprising since the tax credit ending in November escalated home purchases towards the end that month.  On two positive notes the year over year existing home sales level came in at 15% higher than the 4.74 million level in December of 2008.  and home prices increased 1.5% year over year.

South Tampa Real Estate Market Condition January 2010

Happy New Year!  We are excited about the prospects for 2010 in the Tampa residential housing market.  While 2009 was an interesting year to say the least, we still believe we experienced the panic bottom of the Tampa Real Estate market in mid April.  As 2009 continued prices fell at slower rates each consecutive month and market activity continued to progress.  The initial first time home buyer tax credit certainly advanced individuals purchasing timelines and thus were reflective in stronger third/fourth quarter activity.  Our outlook for Tampa Real Estate in 2010 is certainly more positive than 2009.  We believe the first quarter of 2010 will show continued activity in large part to the extension of the home buyer tax credit, which is available until April 30, 2010.  The main concern for 2010 are the unidentified foreclosures still in the pipeline as well as the reversal of historically low interest rates we had experienced throughout the year.  Both of these items could potentially impact any positive momentum moving forward.  In summary while we will not experience the robust growth of 2005/06 or the big drops in 2008/09 we do believe steady growth is in our future.

Cristan & Jennifer Fadal, Century 21 Fisher & Associates

South Tampa Real Estate Agents

South Tampa Real Estate Market – 11/29/2009 – Home Price Index

This morning the S&P/Case-Shiller Home Price Index has been released.  The change in home prices were flat in the 20 city composite which came in at (-7.28%) for October with an adjusted September # of (-7.68%).  The consensus forecast was anticipated at (-7.10%).  As for the market of homes in Tampa, prices decreased slightly from September to October at (-1.6%)  which was greater than the (-.6%) decrease from August to September.   The year-over-year price change for homes in Tampa came in at a negative (-15.2%) which was better than the negative (-17.7%) we saw the prior month.

Tampa Real Estate Market – New Housing Starts – October

The Commerce Department released this morning housing starts for October.  Privately-owned (multi-family) starts decreased by a more than expected (10.6%) to a seasonally adjusted annual rate of 529,000 units, market expectations were 600,000.  September’s previously reported starts of 590,000 was adjusted higher to 592,000.   The starts for October 2009 is (30.7%) below October 2008 rate of 763,000.

Additionally Building Permit numbers were also released.  Privately-owned housing units authorized by building permits were at an adjusted annual rate of 552,000 which was (4%) below the revised September rate of 575,000.  We are still (24.3%) below October 2008 estimate of 729000.  Single-family permit authorizations in October were about flat at (.2%) or 451,000 which was below the revised September figure of 452,000

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