Planet Realtor > Florida > News > 2006
Mortgage brokers protest 'trigger lists'
WASHINGTON -- Sept. 20, 2006 -- The National Association of Mortgage Brokers is protesting the practice of selling names of people shopping for a mortgage.
"There are very serious privacy, identity-theft, and bait-and-switch issues involved here," says Roy DeLoach, executive vice president of the 27,000-member organization.
The practice they object to is known in the industry as "trigger list" marketing. It works like this: When a mortgage company checks a potential buyer’s credit to provide a rate quote, one or more of the national credit bureaus takes the inquiry and sends it out as a lead to other lenders willing to pay for hot prospects.
The credit bureaus defend their right to sell applicants’ personal financial information, arguing that it is no different than selling "prescreened" target prospects lists for credit offers -- something they’ve been doing for years.
But mortgage brokers argue trigger lists fail to comply with a key provision of the Fair Credit Reporting Act -- that anyone receiving consumers’ personal information must be in the position to make a "firm offer of credit" or have previously received permission from the consumer to obtain credit file data. Third-party lead generators obtain no permission and are in no position to make any credit offers because they don’t know anything about the property for sale.
Source: Washington Post Writers Group, Kenneth Harney (09/18/06)
Thursday, September 21, 2006
Wednesday, September 20, 2006
Homebuyers borrow aggressive tactics formerly used by sellers
NEW YORK -- Sept. 20, 2006 -- Not so long ago, home sellers used aggressive tactics to squeeze every last bit of profit from their home sales. Now that home sales are weakening, buyers have taken a page from the sellers' playbook, demanding everything from new appliances to no closing costs to upfront cash to get the deal done.
In some cases, what they are doing is down and dirty -- sellers have been asked to pay off buyer's credit-card debt, cover costs of the buyer's current home or even pay for the buyer's commuting costs from the new home.
This kind of gamesmanship allows buyers to get the most for their money. It also reveals that the housing market's ugly side may be here to stay.
The residential real estate market is cooling from its record-setting pace. New home sales are projected to fall about 16 percent in 2006, and existing home sales are forecast to dip 7.6 percent, according to the National Association of Realtors. Growth in home prices is expected to be minimal, coming in at less than 3 percent in 2006 and 2007.
Homebuilders are certainly feeling the pinch. KB Home, for instance, has started selling off land in its portfolio and said that preliminary net orders for the third quarter were down 43 percent from the prior year, as cancellation rates have shot higher. Gross unit orders and traffic to new home communities each slid 11 percent in the third quarter.
What a change from the not-so-distant past when homeowners controlled the game. Chipped paint? Who cared? No landscaping, no problem. Old, dirty carpets didn't turn people away. Some sellers even got standard points in contracts tossed out, such as home inspections and financing clauses that tended to protect buyers.
Those days are long gone. Sellers aren't just lowering prices now. They're also offering many extras to entice buyers.
Through the end of this month, Pulte Homes' 17 San Francisco locations are giving away a weekly vacation for two at destinations including Hawaii and New York as well as incentives worth up to $99,000, including everything from pool installation to lower interest rates. In Rockville, Md., Mid-Atlantic Builders is offering a price-guarantee program, which gives the buyer a price-break should the value of their home fall before closing.
Real estate agent Mark Goldberg in suburban Washington turned into a general contractor for the last four homes he listed, doing everything from painting to landscaping to installing new lights. One of his clients just dumped $25,000 into a house they are selling for $400,000 that isn't even their primary home but a rental property that they are now trying to sell.
"Sellers have to spend money to bring their properties up to snuff. They have to give buyers a reason to be interested, or else they will walk away," said Goldberg, who works at Long & Foster Realtors in Bethesda, Md.
Even the president of the National Association of Realtors, Thomas Stevens, finds this market a tough sell. His Great Falls, Va., home has been listed for a year, but had no takers yet for its $1.45 million asking price -- which his Realtor has long said was too high. He now plans to talk to his agent about what price can get the deal done.
Still, that might not be enough to close the sale. Buyers want more -- and are coming up with their own must-have lists.
That's what Kelly Holdcraft has discovered as she tries to sell her two-year-old custom built home in DeWitt, Mich., which has been on the market for six months. Not only has she had to lower the price by $36,000 from the original listing of $435,000 -- which takes her below the $425,000 she paid to build it -- but her latest offer was a rent-to-own proposal that she found outrageous.
The bid came in at $365,000, but the prospective buyers were having problems with their credit so they wanted Holdcraft to rent them the home for one year with the option to buy at the end of that if their credit cleared up. Their rent offer was $300 below Holdcraft's current mortgage payment, so she quickly declined.
Other tales abound: Buyers throw out new demands right before they sign the deal, such as to have their credit-card debt paid off, their closing costs covered or the homes completely repainted with their choice of colors.
The buyers of Theresa Liddy Dolge's Hamilton, N.J., home wanted her to pay their apartment lease from June through August since they forgot to tell their landlord they were moving. She didn't agree to that, despite her lawyer and Realtor's attempts to get her to do so. They also asked for her train pass and her parking spot at the train station -- both of which she no longer had.
Granted, she made money on the deal -- selling the home for $275,000, which was well above the $160,000 for which she had bought it. But the buyers' sense of entitlement still bothered her.
That trait is something that today's buyers seemed to have learned from yesterday's sellers. When low mortgage rates and relaxed lending standards allowed buyers to easily secure generous financing in recent years, homeowners saw that as an opportunity to inflate their selling prices.
Now buyers are watching mortgage rates move up and risky loans implode. They want to make sure they get as much as they can out of the housing market. That certainly sounds familiar.
Copyright 2006 The Associated Press, Rachel Beck.
NEW YORK -- Sept. 20, 2006 -- Not so long ago, home sellers used aggressive tactics to squeeze every last bit of profit from their home sales. Now that home sales are weakening, buyers have taken a page from the sellers' playbook, demanding everything from new appliances to no closing costs to upfront cash to get the deal done.
In some cases, what they are doing is down and dirty -- sellers have been asked to pay off buyer's credit-card debt, cover costs of the buyer's current home or even pay for the buyer's commuting costs from the new home.
This kind of gamesmanship allows buyers to get the most for their money. It also reveals that the housing market's ugly side may be here to stay.
The residential real estate market is cooling from its record-setting pace. New home sales are projected to fall about 16 percent in 2006, and existing home sales are forecast to dip 7.6 percent, according to the National Association of Realtors. Growth in home prices is expected to be minimal, coming in at less than 3 percent in 2006 and 2007.
Homebuilders are certainly feeling the pinch. KB Home, for instance, has started selling off land in its portfolio and said that preliminary net orders for the third quarter were down 43 percent from the prior year, as cancellation rates have shot higher. Gross unit orders and traffic to new home communities each slid 11 percent in the third quarter.
What a change from the not-so-distant past when homeowners controlled the game. Chipped paint? Who cared? No landscaping, no problem. Old, dirty carpets didn't turn people away. Some sellers even got standard points in contracts tossed out, such as home inspections and financing clauses that tended to protect buyers.
Those days are long gone. Sellers aren't just lowering prices now. They're also offering many extras to entice buyers.
Through the end of this month, Pulte Homes' 17 San Francisco locations are giving away a weekly vacation for two at destinations including Hawaii and New York as well as incentives worth up to $99,000, including everything from pool installation to lower interest rates. In Rockville, Md., Mid-Atlantic Builders is offering a price-guarantee program, which gives the buyer a price-break should the value of their home fall before closing.
Real estate agent Mark Goldberg in suburban Washington turned into a general contractor for the last four homes he listed, doing everything from painting to landscaping to installing new lights. One of his clients just dumped $25,000 into a house they are selling for $400,000 that isn't even their primary home but a rental property that they are now trying to sell.
"Sellers have to spend money to bring their properties up to snuff. They have to give buyers a reason to be interested, or else they will walk away," said Goldberg, who works at Long & Foster Realtors in Bethesda, Md.
Even the president of the National Association of Realtors, Thomas Stevens, finds this market a tough sell. His Great Falls, Va., home has been listed for a year, but had no takers yet for its $1.45 million asking price -- which his Realtor has long said was too high. He now plans to talk to his agent about what price can get the deal done.
Still, that might not be enough to close the sale. Buyers want more -- and are coming up with their own must-have lists.
That's what Kelly Holdcraft has discovered as she tries to sell her two-year-old custom built home in DeWitt, Mich., which has been on the market for six months. Not only has she had to lower the price by $36,000 from the original listing of $435,000 -- which takes her below the $425,000 she paid to build it -- but her latest offer was a rent-to-own proposal that she found outrageous.
The bid came in at $365,000, but the prospective buyers were having problems with their credit so they wanted Holdcraft to rent them the home for one year with the option to buy at the end of that if their credit cleared up. Their rent offer was $300 below Holdcraft's current mortgage payment, so she quickly declined.
Other tales abound: Buyers throw out new demands right before they sign the deal, such as to have their credit-card debt paid off, their closing costs covered or the homes completely repainted with their choice of colors.
The buyers of Theresa Liddy Dolge's Hamilton, N.J., home wanted her to pay their apartment lease from June through August since they forgot to tell their landlord they were moving. She didn't agree to that, despite her lawyer and Realtor's attempts to get her to do so. They also asked for her train pass and her parking spot at the train station -- both of which she no longer had.
Granted, she made money on the deal -- selling the home for $275,000, which was well above the $160,000 for which she had bought it. But the buyers' sense of entitlement still bothered her.
That trait is something that today's buyers seemed to have learned from yesterday's sellers. When low mortgage rates and relaxed lending standards allowed buyers to easily secure generous financing in recent years, homeowners saw that as an opportunity to inflate their selling prices.
Now buyers are watching mortgage rates move up and risky loans implode. They want to make sure they get as much as they can out of the housing market. That certainly sounds familiar.
Copyright 2006 The Associated Press, Rachel Beck.
Friday, September 15, 2006
Market Conditions by Carla L. Davis
The National Association of Realtors (NAR) reports that "housing prices are expected to continue to have a limited fall throughout 2006."
This was their official word at Wednesday's Senate Banking Committee hearing.
What sort of decline should the nation expect in the housing market? Forecasts indicate that home sales could ease off by 8 percent until year end, and then another 2 percent in 2007. NAR warns, however, that "a significant shift in interest rates or a change in the economy would change this forecast."
Is this the bubble and burst that experts worried about in late 2005? "Contrary to many reports, there is not a 'national housing bubble,'" said NAR President, Thomas M. Stevens, "we were seeing home prices and mortgage debt servicing cost-to-income ratios increase to unhealthy levels in some housing markets, which precipitate an adjustment."
If interest rates maintain their current track and the overall economy of the nation remains strong, then these predictions for the market should hold true.
The National Association of Realtors (NAR) reports that "housing prices are expected to continue to have a limited fall throughout 2006."
This was their official word at Wednesday's Senate Banking Committee hearing.
What sort of decline should the nation expect in the housing market? Forecasts indicate that home sales could ease off by 8 percent until year end, and then another 2 percent in 2007. NAR warns, however, that "a significant shift in interest rates or a change in the economy would change this forecast."
Is this the bubble and burst that experts worried about in late 2005? "Contrary to many reports, there is not a 'national housing bubble,'" said NAR President, Thomas M. Stevens, "we were seeing home prices and mortgage debt servicing cost-to-income ratios increase to unhealthy levels in some housing markets, which precipitate an adjustment."
If interest rates maintain their current track and the overall economy of the nation remains strong, then these predictions for the market should hold true.
Prevent Foreclosure From Cashing You Out Of Home Ownership by Broderick Perkins
While a growing number of consumers are looking to cash in on the changing real estate market, another group is trying to figure out how to keep from cashing out.
The 115,292 homes nationwide entering some stage of foreclosure in August remains historically low, but the rate of increase in the number is becoming alarming. August foreclosures represented a 24 percent increase from July -- the second highest this year -- foreclosures are up 38 percent for the year so far and 53 percent compared to where they were this time last year.
Blame it on those nasty mortgage IEDs (Improvised Equity Devices) -- high leverage, high risk loans that are easy to come by, but financially explosive as time goes by.
Mortgage IEDs are typically ARMs, in a host of varieties, that typically start off with low rates, but, in this market, continually adjust upward. Along with the higher interest rate, so goes your monthly mortgage payment.
When the loans come with interest-only payment terms, if you only pay the interest and your home value shrinks, your mortgage could become larger than your home's value giving you no room to bail out without coming up with the cash to cover the difference.
"With home price appreciation continuing to decelerate and billions of dollars in adjustable rate mortgages projected to reset in the next few months, this month's increase could be the beginning of an upward shift in the foreclosures market," said James J. Saccacio, chief executive officer of RealtyTrac.
In August, states with both greater statistically significant numbers of homes entering foreclosure and high rates of increases in those numbers, included Colorado, Nevada and Florida.
Colorado foreclosure activity spiked nearly 60 percent in August from the previous month and the state documented the nation's highest state foreclosure rate for the sixth month in a row, with one new foreclosure filing for every 301 households. The state reported 6,079 properties entering some stage of foreclosure during the month, more than twice the number reported in August 2005 and the seventh highest number reported by any state.
With one new foreclosure filing for every 430 households, Nevada posted the nation's second highest state foreclosure rate for the third straight month, due largely to bad bets on housing made in and around Las Vegas. The state reported 2,016 properties entering some stage of foreclosure, a 24 percent increase from the previous month and more than three times the number reported in August 2005.
Once crawling with speculators who are now abandoning the Sunshine State, Florida saw foreclosure activity jump to its highest level of the year so far, with 16,533 properties entering some stage of foreclosure in August -- the most of any state and an increase of more than 50 percent from the previous month. The state's foreclosure rate of one new foreclosure filing for every 442 households ranked as the nation's third highest state foreclosure rate.
Five states, Florida, Texas, California, Ohio and Illinois accounted for 50 percent of the nation's foreclosure activity in August.
What should you do if you face the possibility of a late mortgage payment for the first time and want to avoid foreclosure?
Swallow your pride.
A head-in-the-sand approach will leave what's likely your No. 1 asset exposed to foreclosure. Contact the lender and discuss what you can do. Your goal should be to stop any lender action that could damage your credit and ultimately cost you your home and prevent you from owning another one in the immediate future.
A Freddie Mac/Roper survey found that 75 percent of delinquent borrowers recall being contacted by their mortgage servicer -- the company (the lender or the lender's agent) that collects mortgage payments, but 68 percent of them never call back.
Given most lenders take months before moving to foreclose, you have ample time to seek some kind of work out.
Once you make contact with your lender or servicer in a return call or a call you initiated, stay in touch with that contact until you are current. Document your contacts in writing so you and the lender have a documented record of your efforts.
If possible, consider restructuring or refinancing your loan -- but not to borrow more money. If you are saddled with two mortgages, do the math to determine if consolidating them will help. Likewise consolidate non-mortgage debts. Also consider extending a 15 year mortgage to 30 years or a 30 year mortgage to 40 years or longer. Examine how any restructured debt will play out if your situation worsens or improves. In each case, determine if restructuring is your best move, preferably before you miss a payment and damage your chances of landing a new loan.
Watch out for scams. When you are down on your dollars you are most vulnerable to debt-removal come-ons. You likely didn't get in over your head over night. Don't expect a quick fix.
Get financial counseling. Certified (by state and federal agencies and recognized trade groups) consumer credit counseling services are often free or offered for only a nominal fee. They will teach you your rights and work with you and your creditors, say, to temporarily reduce payments or otherwise work out a payment plan that will keep you housed and your credit relatively intact.
Know your rights. If you are in the military, you have special relief under the Soldiers and Sailors Civil Relief Act to stop the foreclosure and you may be eligible for a reduction in the interest rate. Similar relief is available to those affected by hurricanes, earthquakes and other natural disasters.
Procedural errors in the lender's foreclosure effort or lender errors when you acquired the loan could permit you to file a lawsuit to enjoin or stop the procedure.
If all else fails, bankruptcy is an option that can stop foreclosure, at least temporarily, and give you some leverage to resolve the foreclosure. Today's bankruptcy law also forces you into counseling. That's a good thing.
Selling the property is another end-game option. Consider selling the property out right as quickly as possible or deeding it to the lender in exchange for ending the foreclosure and minimizing the negative comments on your credit report.
Published: September 15, 2006
While a growing number of consumers are looking to cash in on the changing real estate market, another group is trying to figure out how to keep from cashing out.
The 115,292 homes nationwide entering some stage of foreclosure in August remains historically low, but the rate of increase in the number is becoming alarming. August foreclosures represented a 24 percent increase from July -- the second highest this year -- foreclosures are up 38 percent for the year so far and 53 percent compared to where they were this time last year.
Blame it on those nasty mortgage IEDs (Improvised Equity Devices) -- high leverage, high risk loans that are easy to come by, but financially explosive as time goes by.
Mortgage IEDs are typically ARMs, in a host of varieties, that typically start off with low rates, but, in this market, continually adjust upward. Along with the higher interest rate, so goes your monthly mortgage payment.
When the loans come with interest-only payment terms, if you only pay the interest and your home value shrinks, your mortgage could become larger than your home's value giving you no room to bail out without coming up with the cash to cover the difference.
"With home price appreciation continuing to decelerate and billions of dollars in adjustable rate mortgages projected to reset in the next few months, this month's increase could be the beginning of an upward shift in the foreclosures market," said James J. Saccacio, chief executive officer of RealtyTrac.
In August, states with both greater statistically significant numbers of homes entering foreclosure and high rates of increases in those numbers, included Colorado, Nevada and Florida.
Colorado foreclosure activity spiked nearly 60 percent in August from the previous month and the state documented the nation's highest state foreclosure rate for the sixth month in a row, with one new foreclosure filing for every 301 households. The state reported 6,079 properties entering some stage of foreclosure during the month, more than twice the number reported in August 2005 and the seventh highest number reported by any state.
With one new foreclosure filing for every 430 households, Nevada posted the nation's second highest state foreclosure rate for the third straight month, due largely to bad bets on housing made in and around Las Vegas. The state reported 2,016 properties entering some stage of foreclosure, a 24 percent increase from the previous month and more than three times the number reported in August 2005.
Once crawling with speculators who are now abandoning the Sunshine State, Florida saw foreclosure activity jump to its highest level of the year so far, with 16,533 properties entering some stage of foreclosure in August -- the most of any state and an increase of more than 50 percent from the previous month. The state's foreclosure rate of one new foreclosure filing for every 442 households ranked as the nation's third highest state foreclosure rate.
Five states, Florida, Texas, California, Ohio and Illinois accounted for 50 percent of the nation's foreclosure activity in August.
What should you do if you face the possibility of a late mortgage payment for the first time and want to avoid foreclosure?
Swallow your pride.
A head-in-the-sand approach will leave what's likely your No. 1 asset exposed to foreclosure. Contact the lender and discuss what you can do. Your goal should be to stop any lender action that could damage your credit and ultimately cost you your home and prevent you from owning another one in the immediate future.
A Freddie Mac/Roper survey found that 75 percent of delinquent borrowers recall being contacted by their mortgage servicer -- the company (the lender or the lender's agent) that collects mortgage payments, but 68 percent of them never call back.
Given most lenders take months before moving to foreclose, you have ample time to seek some kind of work out.
Once you make contact with your lender or servicer in a return call or a call you initiated, stay in touch with that contact until you are current. Document your contacts in writing so you and the lender have a documented record of your efforts.
If possible, consider restructuring or refinancing your loan -- but not to borrow more money. If you are saddled with two mortgages, do the math to determine if consolidating them will help. Likewise consolidate non-mortgage debts. Also consider extending a 15 year mortgage to 30 years or a 30 year mortgage to 40 years or longer. Examine how any restructured debt will play out if your situation worsens or improves. In each case, determine if restructuring is your best move, preferably before you miss a payment and damage your chances of landing a new loan.
Watch out for scams. When you are down on your dollars you are most vulnerable to debt-removal come-ons. You likely didn't get in over your head over night. Don't expect a quick fix.
Get financial counseling. Certified (by state and federal agencies and recognized trade groups) consumer credit counseling services are often free or offered for only a nominal fee. They will teach you your rights and work with you and your creditors, say, to temporarily reduce payments or otherwise work out a payment plan that will keep you housed and your credit relatively intact.
Know your rights. If you are in the military, you have special relief under the Soldiers and Sailors Civil Relief Act to stop the foreclosure and you may be eligible for a reduction in the interest rate. Similar relief is available to those affected by hurricanes, earthquakes and other natural disasters.
Procedural errors in the lender's foreclosure effort or lender errors when you acquired the loan could permit you to file a lawsuit to enjoin or stop the procedure.
If all else fails, bankruptcy is an option that can stop foreclosure, at least temporarily, and give you some leverage to resolve the foreclosure. Today's bankruptcy law also forces you into counseling. That's a good thing.
Selling the property is another end-game option. Consider selling the property out right as quickly as possible or deeding it to the lender in exchange for ending the foreclosure and minimizing the negative comments on your credit report.
Published: September 15, 2006
Thursday, September 14, 2006
House OKs VA hospital at Lake Nona
Orlando Business Journal - 7:33 PM EDT Wednesday
The U.S. House of Representatives late Wednesday passed legislation that will bring a Veterans Administration hospital to Lake Nona.
The legislation, H.R. 5815, the Department of Veterans Affairs Medical Facility Authorization, authorizes $377.77 million for the facility.
Rep. Tom Feeney called the passage of the legislation "a victory for veterans and our community."
"Orlando is the largest metropolitan area in the country that is not serviced by a VA medical center," Feeney says. "This new facility will provide veterans with a better quality of life and cut down on the cost to service organizations. Our growing veterans population may finally have appropriate access to vital health care services."
The VA hospital news comes on the heels of a flurry of activity related to the Lake Nona area. The University of Central Florida plans to build its newly approved medical school there, joining Burnham Institute for Medical Research, which just announced a decision to locate a satellite lab in the area as well.
Orlando Business Journal - 7:33 PM EDT Wednesday
The U.S. House of Representatives late Wednesday passed legislation that will bring a Veterans Administration hospital to Lake Nona.
The legislation, H.R. 5815, the Department of Veterans Affairs Medical Facility Authorization, authorizes $377.77 million for the facility.
Rep. Tom Feeney called the passage of the legislation "a victory for veterans and our community."
"Orlando is the largest metropolitan area in the country that is not serviced by a VA medical center," Feeney says. "This new facility will provide veterans with a better quality of life and cut down on the cost to service organizations. Our growing veterans population may finally have appropriate access to vital health care services."
The VA hospital news comes on the heels of a flurry of activity related to the Lake Nona area. The University of Central Florida plans to build its newly approved medical school there, joining Burnham Institute for Medical Research, which just announced a decision to locate a satellite lab in the area as well.
August home sales drop, inventory breaks 20,000
Orlando Business Journal - 10:17 AM EDT Thursday
The number of Orlando-area homes sold in August dropped by 33.7 percent when compared with August a year ago, the month which recorded the most sales in 2005.
A total of 2,077 existing homes changed hands in August through the Mid-Florida Regional Multiple Listing Service, for a year-to-date total of 19,404 so far in 2006. A total of 3,134 existing homes changed hands in August 2005, and through the first eight months of 2005, 20,702 homes had sold.
The inventory of available homes continued its upward trend in August with the addition of 7,039 new listings contributing to a total inventory tally of 21,077.
"It is important to keep in perspective that 2005 was a chart-topping year that we do not expect 2006 to replicate," says Orlando Regional Realtor Association President Beverly Pindling. "The factors that buoy a local economy -- creation of new jobs, a population influx, the state of commercial real estate -- remain very viable in Orlando. Economic experts anticipate that Orlando will be able to claim 2006 as its second-best housing market ever."
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola and Seminole counties) are also down by 31 percent when compared with August of last year, and year-to-date sales have dipped below 2005's level by 3.1 percent.
When looked at by county, Seminole County posted an increase in year-to-date sales of 3.7 percent, while the other three counties posted declines: Orange by 0.8 percent, Osceola by 4.8 percent and Lake by 16.6 percent. A total of 24,564 homes in the MSA have been sold by Realtors so far in 2006. A total of 25,349 homes were sold through August in 2005.
The median price of homes sold in August was $249,900, a 2 percent rise over August 2005's $245,000 median. The average mortgage interest rate in the Orlando area for the second month dropped a fraction, to 6.20 percent.
A breakdown of existing homes shows that of the 2,077 sales during August, 1,591 were single-family homes, 319 were condos, and 167 were town homes, villas or duplexes.
Last August, 2,324 sales were single-family homes, 622 were condos, and 188 were town homes, villas or duplexes.
Orlando Business Journal - 10:17 AM EDT Thursday
The number of Orlando-area homes sold in August dropped by 33.7 percent when compared with August a year ago, the month which recorded the most sales in 2005.
A total of 2,077 existing homes changed hands in August through the Mid-Florida Regional Multiple Listing Service, for a year-to-date total of 19,404 so far in 2006. A total of 3,134 existing homes changed hands in August 2005, and through the first eight months of 2005, 20,702 homes had sold.
The inventory of available homes continued its upward trend in August with the addition of 7,039 new listings contributing to a total inventory tally of 21,077.
"It is important to keep in perspective that 2005 was a chart-topping year that we do not expect 2006 to replicate," says Orlando Regional Realtor Association President Beverly Pindling. "The factors that buoy a local economy -- creation of new jobs, a population influx, the state of commercial real estate -- remain very viable in Orlando. Economic experts anticipate that Orlando will be able to claim 2006 as its second-best housing market ever."
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola and Seminole counties) are also down by 31 percent when compared with August of last year, and year-to-date sales have dipped below 2005's level by 3.1 percent.
When looked at by county, Seminole County posted an increase in year-to-date sales of 3.7 percent, while the other three counties posted declines: Orange by 0.8 percent, Osceola by 4.8 percent and Lake by 16.6 percent. A total of 24,564 homes in the MSA have been sold by Realtors so far in 2006. A total of 25,349 homes were sold through August in 2005.
The median price of homes sold in August was $249,900, a 2 percent rise over August 2005's $245,000 median. The average mortgage interest rate in the Orlando area for the second month dropped a fraction, to 6.20 percent.
A breakdown of existing homes shows that of the 2,077 sales during August, 1,591 were single-family homes, 319 were condos, and 167 were town homes, villas or duplexes.
Last August, 2,324 sales were single-family homes, 622 were condos, and 188 were town homes, villas or duplexes.
Questions to Ask Before Buying a Condo by Stuart Lieberman
Condominium ownership is becoming quite popular throughout the United States. Especially, but not only, in our big cities.
It seems as if condominium developments might be a win-win for everybody. For homeowners, they can be a very efficient and sometimes luxurious way of enjoying a nice lifestyle.
For builders, they can represent a strong return on investment -- at least they did before prices started dropping a few months back. And in the case of high rise condominium construction, less property has to be purchased so the profit margin can be even greater.
Condominiums come in all shapes and flavors. As I indicated, it seems that the newest breed are found in the urban areas. This is partly due to the trend towards urban renewal and redevelopment that is found in many portions of this country.
Of course, many condominiums are also located in suburban areas. Often upscale, these units may be gated and every bit as exclusive and luxurious as their urban counterparts.
When I talk about condominiums, I don't literally mean just those developments that follow a condominium form of ownership. I'm also talking about similar kinds of legal entities such as homeowners associations.
The types of developments have different names in different states. However, the concept is often similar. Unit owners are responsible for and own the interior of the living spaces, often to the finished walls.
The association is responsible for the areas beyond the finished walls, typically the structures themselves, the plumbing, the common sewer lines, etc.
In addition, there are common elements that are controlled by the association. Typically, this might include pathways, recreation facilities, swimming pools, tennis courts, and anything else that is for the benefit of the association.
Associations may have common areas and limited common areas. A common area might be something like what was described above: a park, an internal street, a pool.
A limited common area might be a part of the lawn that's fenced off for the use of a particular unit owner.
These are general observations. Before you purchase you must read the master deed, the bylaws and every other governing document to find out what you will own and what you will not own.
It can make a big difference. As an example, some coastal condominiums have docks for the unit owners. A unit owner needs to understand who will own the dock he or she will be using. This issue is important for resale purposes, maintenance issues (which can be very costly in this example) and riparian ownership concerns.
Condominium projects, with little exception, look wonderful when first built. After they are occupied by property owners, control shifts from the builder to the individual unit owners. At that time, the unit owners run the condominium association and begin full control and responsibility for the common elements.
The success of the condominium association is directly related to the caliber of the association. If the association board of directors is functioning properly and has good legal counsel and other professionals, then the entire community may be an exciting, desirable place to call home.
On the other hand, if the association is falling apart, if nobody wants to volunteer, if it's not governed by capable, caring people, if it doesn't retain quality professionals, or it isn't properly collecting the monthly assessments from the unit owners, then the community probably won't be a desirable place to live. And people are probably not going to continue to live there.
Another concern is the extent to which the condominium is owner occupied. If most owners rent the units out, they may be collectively less concerned about day to day issues than if it is largely or entirely owner occupied.
All of this means that when you purchase a condo, you can’t just look at the quality of the construction, or whether the heater works. You cannot just do the kinds of things that you would do if you are purchasing a private, single-family home.
Above and beyond the normal kinds of things that you need to do, you absolutely must look at the condominium records and documents. Take a look at the minutes. Is this a properly run, stable organization? Are there constant resignations; does it appear that little ever gets accomplished?
In reviewing the association documents, find out if they permit special assessments if there are one time large expenditures. The association should be able to special assess if problems arise. Watch for association documents that unreasonably restrict the right to special assess. While this restriction might seem desirable, in reality an inability to special assess can ruin a condominium development.
Things that must get done might never get done properly.
Ask whether the association has a functioning covenants committee? These are the internal volunteers who enforce the rules and regulations. Are they fair and reasonable people? Do they go out on a regular basis to ensure that the rules and regulations are being followed? Or is this the condominium version of the wild west where unit owners do as they please and are never asked to follow the rules.
Rules are necessary in these communities and they must be fairly, even handedly enforced on a regular basis.
In addition to a thorough document review, talk to people who own units. What do they have to say. Look around the development. Does it appear to be well maintained? Are their annoying signs posted everywhere suggesting dysfunction?
There is no getting around the fact that due diligence in the case of a condominium purchase requires an examination of the Association records and legal documents. Examine them and ask questions before purchasing. I suggest having an attorney help you understand the association and its workings. This is an inexpensive service, and may prove down the road to be a very worth while investment.
Published: September 14, 2006 Courtesy of Realty Times
Condominium ownership is becoming quite popular throughout the United States. Especially, but not only, in our big cities.
It seems as if condominium developments might be a win-win for everybody. For homeowners, they can be a very efficient and sometimes luxurious way of enjoying a nice lifestyle.
For builders, they can represent a strong return on investment -- at least they did before prices started dropping a few months back. And in the case of high rise condominium construction, less property has to be purchased so the profit margin can be even greater.
Condominiums come in all shapes and flavors. As I indicated, it seems that the newest breed are found in the urban areas. This is partly due to the trend towards urban renewal and redevelopment that is found in many portions of this country.
Of course, many condominiums are also located in suburban areas. Often upscale, these units may be gated and every bit as exclusive and luxurious as their urban counterparts.
When I talk about condominiums, I don't literally mean just those developments that follow a condominium form of ownership. I'm also talking about similar kinds of legal entities such as homeowners associations.
The types of developments have different names in different states. However, the concept is often similar. Unit owners are responsible for and own the interior of the living spaces, often to the finished walls.
The association is responsible for the areas beyond the finished walls, typically the structures themselves, the plumbing, the common sewer lines, etc.
In addition, there are common elements that are controlled by the association. Typically, this might include pathways, recreation facilities, swimming pools, tennis courts, and anything else that is for the benefit of the association.
Associations may have common areas and limited common areas. A common area might be something like what was described above: a park, an internal street, a pool.
A limited common area might be a part of the lawn that's fenced off for the use of a particular unit owner.
These are general observations. Before you purchase you must read the master deed, the bylaws and every other governing document to find out what you will own and what you will not own.
It can make a big difference. As an example, some coastal condominiums have docks for the unit owners. A unit owner needs to understand who will own the dock he or she will be using. This issue is important for resale purposes, maintenance issues (which can be very costly in this example) and riparian ownership concerns.
Condominium projects, with little exception, look wonderful when first built. After they are occupied by property owners, control shifts from the builder to the individual unit owners. At that time, the unit owners run the condominium association and begin full control and responsibility for the common elements.
The success of the condominium association is directly related to the caliber of the association. If the association board of directors is functioning properly and has good legal counsel and other professionals, then the entire community may be an exciting, desirable place to call home.
On the other hand, if the association is falling apart, if nobody wants to volunteer, if it's not governed by capable, caring people, if it doesn't retain quality professionals, or it isn't properly collecting the monthly assessments from the unit owners, then the community probably won't be a desirable place to live. And people are probably not going to continue to live there.
Another concern is the extent to which the condominium is owner occupied. If most owners rent the units out, they may be collectively less concerned about day to day issues than if it is largely or entirely owner occupied.
All of this means that when you purchase a condo, you can’t just look at the quality of the construction, or whether the heater works. You cannot just do the kinds of things that you would do if you are purchasing a private, single-family home.
Above and beyond the normal kinds of things that you need to do, you absolutely must look at the condominium records and documents. Take a look at the minutes. Is this a properly run, stable organization? Are there constant resignations; does it appear that little ever gets accomplished?
In reviewing the association documents, find out if they permit special assessments if there are one time large expenditures. The association should be able to special assess if problems arise. Watch for association documents that unreasonably restrict the right to special assess. While this restriction might seem desirable, in reality an inability to special assess can ruin a condominium development.
Things that must get done might never get done properly.
Ask whether the association has a functioning covenants committee? These are the internal volunteers who enforce the rules and regulations. Are they fair and reasonable people? Do they go out on a regular basis to ensure that the rules and regulations are being followed? Or is this the condominium version of the wild west where unit owners do as they please and are never asked to follow the rules.
Rules are necessary in these communities and they must be fairly, even handedly enforced on a regular basis.
In addition to a thorough document review, talk to people who own units. What do they have to say. Look around the development. Does it appear to be well maintained? Are their annoying signs posted everywhere suggesting dysfunction?
There is no getting around the fact that due diligence in the case of a condominium purchase requires an examination of the Association records and legal documents. Examine them and ask questions before purchasing. I suggest having an attorney help you understand the association and its workings. This is an inexpensive service, and may prove down the road to be a very worth while investment.
Published: September 14, 2006 Courtesy of Realty Times
Wednesday, September 13, 2006
Citizens' Board To Approve Reduced Assessment
TALLAHASSEE, Fla. -- Sept. 13, 2006 -- Members of the Citizens Property Insurance Corporation Board of Governors will meet tomorrow, Sept. 14, in Fort Lauderdale and is expected to approve a 2 percent regular assessment to be paid by all Floridians to make up for losses incurred from the 2005 hurricanes. Citizens' entire deficit comes to $1.7 billion following more than $5 billion in damages paid out following the 2004-05 storm seasons.
"Our staff will recommend that the board approve a regular assessment of close to $163 million," says Citizens President Bob Ricker. The $163 million assessment, when finalized, represents a charge of about 2 percent of a policyholder’s annual premium.
"A policyholder who pays $1,000 a year in premium will pay $20.70," Ricker says. The remainder of the deficit -- approximately $786 million -- will be made up through an emergency assessment spread over a 10-year period. Board members still must approve that assessment at a later date, and both assessments must be approved by the state Office of Insurance Regulation before they're implemented.
Lawmakers gave Citizens the authority to collect assessments if claims paid exceed the financial reserves of Citizens, a not-for-profit corporation. Ricker said Citizens, which now has more than 1.2 million policyholders, has about $5 billion in liquidity available to pay future claims.
The deficit was significantly reduced by a one-time $715 million appropriation from the Florida Legislature based, in part, on increased sales tax revenue generated by hurricane repairs. Without the $715 million, the current assessment percentage would have been close to 12 percent tacked onto each Floridians' insurance premium.
"Our policyholders should be aware that we are in good financial shape, and that if disaster strikes we’ve got them covered," Ricker adds.
Board meetings are open to the public.
© 2006 FLORIDA ASSOCIATION OF REALTORS®
Monday, September 11, 2006
Tips For Buyers In Emerging Buyers' Markets by Broderick Perkins
Buyers don't quite yet hold all the cards, but they aren't smirking behind the hand they hold without reason.
Economic conditions are poised to give buyers more homes at lower prices this fall and winter, and as luck would have it, it's that time in the annual buying and selling cycle when more motivated sellers are more open to negotiations.
Housing's current plight and its role as an economic cornerstone was evident the week ending September 8, when stocks fell for at least two consecutive days after Beazer Homes USA, Hovnanian Enterprises and KB Home warned of growing cancellations and spikes in the supply.
That same week, a mortgage rate breather with six consecutive weeks of rate declines appeared over as Bankrate.Com first and then Fannie Mae reported rates were up albeit slightly.
But you really needn't look any further for what's ahead than the recent flurry of forecasts from the usually conservative National Association of Realtors.
NAR's latest existing home sales report on Aug. 23 said July home sales dropped 4.1 percent from a year ago, as the median price of single-family homes rose only 1.5 percent and the condo median fell 1 percent.
On Sept. 1, the trade group's Pending Home Sales Index, based on pending sales of existing homes was down even more, 16 percent lower than July 2005.
NAR dropped somewhat of a bombshell days later on Sept. 7 in a monthly forecast revising down earlier predictions on home sales, due to rising inventories and high home prices. Existing-home sales are now forecast to fall 7.6 percent by year's end, still the third best year after the last boom years 2004 and 2005. New-home sales should to drop further, 16.1 percent and make 2006 the fourth highest on record. NAR projected housing starts to fall 9.6 percent this year.
"A year ago we had record home sales and tight supply with buyers bidding over the asking price. This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory," said David Lereah, NAR’s chief economist.
"This is a normal pattern during a market correction ...," he added.
For buyers "normal" means they don't hold all the cards, but the deck is stacked in their favor.
Here's how to get a winning hand without bluffing.
Learn the game. Obtaining general knowledge about the home-buying process and the real estate market is a relatively easy task, but buyers who feel a competitive edge tend to leap before they look. A glut of information available on the Internet, from free real estate industry-sponsored seminars and workshops and through a vast library of real estate guide books can give you an edge.
Check the table. Real estate markets are local, at that means so is a buyers' market. It can be designated by a small community, larger region or greater geographic area. A buyers' market is typically spotty occurring in some neighborhoods and not others or first in one area and then spreading to others. In any event, a buyers' market tends to include high inventories, slow appreciation, flat or falling prices and more sellers than buyers. The area might also suffer from general economic distress. Part of your homework should include learning the boundaries of your buyers' market. The larger the area, the greater your bargaining power.
Don't deal from the bottom of the deck. In a buyers' market, buyers who don't educate themselves about prices and markets tend to low-ball sellers and ask for too many concessions. Even in a buyers' market, that will only alienate the seller, especially those less motivated with top-value homes. The seller will simply look elsewhere for a more reasonable buyer.
Don't give away your hand. Paying sellers' market prices in a buyers' market is a common mistake buyers make, especially at the onset of a buyers' market. The mistake could leave you with a home that immediately loses value. Home buyers should make the same price checks a seller makes to price it right -- get comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses. Use a real estate agent schooled in the history of market trends and statistics.
Play smart. Buy the least expensive house on the best block. Buy into the least expensive neighborhood in the best community. Buy into the least expensive city in the best region. The cheapest home in a neighborhood, community or region in transition will give you the greatest return on your investment, especially when the market rebounds.
Play with a full deck. Don't let a false sense of power overcome you. Even motivated sellers aren't going to wait around for your money to show up. Get your credit report checked an in order. Get your loan preapproved. Lock in your mortgage rate. Don't shop for a home without them.
Play for keeps. Buy because you need a home, not because it's a buyers' market. Speculators and short-term investors are bailing out for good reason. It's also a keepers' market.
Play another game. Renting now and waiting out the market is a gambit, but so is buying a home right now if you don't think you can stay put long enough to weather the change. Renting could pay off, over time, in a buyers' market that hasn't bottomed.
Published: September 11, 2006 Courtesy: Realty Times Headlines
Buyers don't quite yet hold all the cards, but they aren't smirking behind the hand they hold without reason.
Economic conditions are poised to give buyers more homes at lower prices this fall and winter, and as luck would have it, it's that time in the annual buying and selling cycle when more motivated sellers are more open to negotiations.
Housing's current plight and its role as an economic cornerstone was evident the week ending September 8, when stocks fell for at least two consecutive days after Beazer Homes USA, Hovnanian Enterprises and KB Home warned of growing cancellations and spikes in the supply.
That same week, a mortgage rate breather with six consecutive weeks of rate declines appeared over as Bankrate.Com first and then Fannie Mae reported rates were up albeit slightly.
But you really needn't look any further for what's ahead than the recent flurry of forecasts from the usually conservative National Association of Realtors.
NAR's latest existing home sales report on Aug. 23 said July home sales dropped 4.1 percent from a year ago, as the median price of single-family homes rose only 1.5 percent and the condo median fell 1 percent.
On Sept. 1, the trade group's Pending Home Sales Index, based on pending sales of existing homes was down even more, 16 percent lower than July 2005.
NAR dropped somewhat of a bombshell days later on Sept. 7 in a monthly forecast revising down earlier predictions on home sales, due to rising inventories and high home prices. Existing-home sales are now forecast to fall 7.6 percent by year's end, still the third best year after the last boom years 2004 and 2005. New-home sales should to drop further, 16.1 percent and make 2006 the fourth highest on record. NAR projected housing starts to fall 9.6 percent this year.
"A year ago we had record home sales and tight supply with buyers bidding over the asking price. This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we'll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory," said David Lereah, NAR’s chief economist.
"This is a normal pattern during a market correction ...," he added.
For buyers "normal" means they don't hold all the cards, but the deck is stacked in their favor.
Here's how to get a winning hand without bluffing.
Learn the game. Obtaining general knowledge about the home-buying process and the real estate market is a relatively easy task, but buyers who feel a competitive edge tend to leap before they look. A glut of information available on the Internet, from free real estate industry-sponsored seminars and workshops and through a vast library of real estate guide books can give you an edge.
Check the table. Real estate markets are local, at that means so is a buyers' market. It can be designated by a small community, larger region or greater geographic area. A buyers' market is typically spotty occurring in some neighborhoods and not others or first in one area and then spreading to others. In any event, a buyers' market tends to include high inventories, slow appreciation, flat or falling prices and more sellers than buyers. The area might also suffer from general economic distress. Part of your homework should include learning the boundaries of your buyers' market. The larger the area, the greater your bargaining power.
Don't deal from the bottom of the deck. In a buyers' market, buyers who don't educate themselves about prices and markets tend to low-ball sellers and ask for too many concessions. Even in a buyers' market, that will only alienate the seller, especially those less motivated with top-value homes. The seller will simply look elsewhere for a more reasonable buyer.
Don't give away your hand. Paying sellers' market prices in a buyers' market is a common mistake buyers make, especially at the onset of a buyers' market. The mistake could leave you with a home that immediately loses value. Home buyers should make the same price checks a seller makes to price it right -- get comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses. Use a real estate agent schooled in the history of market trends and statistics.
Play smart. Buy the least expensive house on the best block. Buy into the least expensive neighborhood in the best community. Buy into the least expensive city in the best region. The cheapest home in a neighborhood, community or region in transition will give you the greatest return on your investment, especially when the market rebounds.
Play with a full deck. Don't let a false sense of power overcome you. Even motivated sellers aren't going to wait around for your money to show up. Get your credit report checked an in order. Get your loan preapproved. Lock in your mortgage rate. Don't shop for a home without them.
Play for keeps. Buy because you need a home, not because it's a buyers' market. Speculators and short-term investors are bailing out for good reason. It's also a keepers' market.
Play another game. Renting now and waiting out the market is a gambit, but so is buying a home right now if you don't think you can stay put long enough to weather the change. Renting could pay off, over time, in a buyers' market that hasn't bottomed.
Published: September 11, 2006 Courtesy: Realty Times Headlines
New Communities/New Construction
Communities Added in Central Florida. Click on a community name below to view details.
Check out the 46 communties added elsewhere
Lynwood at SouthmeadowCentex Homes
Orlando
Townhome
Under Construction
$217,000 - $253,000
Eagles Hammock at Waterford ChaseCentex Homes
Orlando
Single Family Home
Under Construction
$341,000 - $437,000
Lago BuendiaCrosswinds Florida
Kissimmee
Single Family Home
VIP Pre-Opening
$290,000 - $350,000
Jackson ParkCentex Homes
Orlando
Townhome
Under Construction
$220,000 - $260,000
Victoria Woods at Providence Golf and Country ClubABD Development Company
Davenport
Single Family Home
Under Construction
$420,000 - $550,000
Savannah LandingsTranseastern
Orlando
Townhome
Pre-Construction
$236,000 - $303,000
Portofino VistaPrime Home Builders
Saint Cloud
Townhome
Pre-Construction
$220,000 - $300,000
San IsabellaLennar
Sanford
Single Family Home
VIP Pre-Opening
$259,000 - $337,000
Providence Golf and Country Club (ABD Development)ABD Development Company
Davenport
Single Family Home, To...
Under Construction
$321,000 - $704,000
Victoria LandingsTranseastern
Orlando
Single Family Home
Immediate Occupancy
$295,000 - $390,000
Cambria at Polos SouthAbbey Residential
Kissimmee
Condo Low Rise
Rental Conversion
$99,000 - $199,000
Savannah PinesTranseastern
Orlando
Townhome
Builder's Close Out
$185,000 - $254,000
Metro at Michigan ParkTigers Development Group
Orlando
Condo Low Rise
Rental Conversion
$182,000 - $279,000
The VillagesThe Villages, Florida,...
Lady Lake
Adult Single Family Home
Models Available
$152,000 - $1,182,000
Sand LakeAmerican Invesco
Orlando
Condo Low Rise
Rental Conversion
$160,000 - $329,000
Millenium ParcCentex Homes
Orlando
Condo Garden
Under Construction
$288,000 - $320,000
Victoria PinesTranseastern
Orlando
Townhome
Immediate Occupancy
$172,000 - $250,000
55 West on the EsplanadeEuro American Advisors
Orlando
Tower, Penthouse
Under Construction
$262,000 - $4,500,000
Tradewinds at MetroWestMcRae & Stolz
Orlando
Condo Low Rise
Rental Conversion
$146,000 - $230,000
Audubon Villas at Hunter's CreekRBGEM
Orlando
Condo Garden
Rental Conversion
$180,000 - $259,000
The Paramount on Lake EolaZOM
Orlando
Tower, Penthouse
Sold Out (Resales supported)
$275,000 - $1,100,000
The MonarchJaymor-Reed Developmen...
Orlando
Tower, Penthouse
VIP Pre-Opening
$380,000 - $2,300,000
Star TowerHistoric Creations
Orlando
Tower
Under Construction
$600,000 - $1,000,000
Ashford Grande at Cypress LakesEngle Homes
Orlando
Single Family Home
Under Construction
$360,000 - $473,000
Communities Added in Central Florida. Click on a community name below to view details.
Check out the 46 communties added elsewhere
Lynwood at SouthmeadowCentex Homes
Orlando
Townhome
Under Construction
$217,000 - $253,000
Eagles Hammock at Waterford ChaseCentex Homes
Orlando
Single Family Home
Under Construction
$341,000 - $437,000
Lago BuendiaCrosswinds Florida
Kissimmee
Single Family Home
VIP Pre-Opening
$290,000 - $350,000
Jackson ParkCentex Homes
Orlando
Townhome
Under Construction
$220,000 - $260,000
Victoria Woods at Providence Golf and Country ClubABD Development Company
Davenport
Single Family Home
Under Construction
$420,000 - $550,000
Savannah LandingsTranseastern
Orlando
Townhome
Pre-Construction
$236,000 - $303,000
Portofino VistaPrime Home Builders
Saint Cloud
Townhome
Pre-Construction
$220,000 - $300,000
San IsabellaLennar
Sanford
Single Family Home
VIP Pre-Opening
$259,000 - $337,000
Providence Golf and Country Club (ABD Development)ABD Development Company
Davenport
Single Family Home, To...
Under Construction
$321,000 - $704,000
Victoria LandingsTranseastern
Orlando
Single Family Home
Immediate Occupancy
$295,000 - $390,000
Cambria at Polos SouthAbbey Residential
Kissimmee
Condo Low Rise
Rental Conversion
$99,000 - $199,000
Savannah PinesTranseastern
Orlando
Townhome
Builder's Close Out
$185,000 - $254,000
Metro at Michigan ParkTigers Development Group
Orlando
Condo Low Rise
Rental Conversion
$182,000 - $279,000
The VillagesThe Villages, Florida,...
Lady Lake
Adult Single Family Home
Models Available
$152,000 - $1,182,000
Sand LakeAmerican Invesco
Orlando
Condo Low Rise
Rental Conversion
$160,000 - $329,000
Millenium ParcCentex Homes
Orlando
Condo Garden
Under Construction
$288,000 - $320,000
Victoria PinesTranseastern
Orlando
Townhome
Immediate Occupancy
$172,000 - $250,000
55 West on the EsplanadeEuro American Advisors
Orlando
Tower, Penthouse
Under Construction
$262,000 - $4,500,000
Tradewinds at MetroWestMcRae & Stolz
Orlando
Condo Low Rise
Rental Conversion
$146,000 - $230,000
Audubon Villas at Hunter's CreekRBGEM
Orlando
Condo Garden
Rental Conversion
$180,000 - $259,000
The Paramount on Lake EolaZOM
Orlando
Tower, Penthouse
Sold Out (Resales supported)
$275,000 - $1,100,000
The MonarchJaymor-Reed Developmen...
Orlando
Tower, Penthouse
VIP Pre-Opening
$380,000 - $2,300,000
Star TowerHistoric Creations
Orlando
Tower
Under Construction
$600,000 - $1,000,000
Ashford Grande at Cypress LakesEngle Homes
Orlando
Single Family Home
Under Construction
$360,000 - $473,000
Friday, September 08, 2006
Lock That Quote In
by David Reed
Mortgage rates aren't any good if you can't lock them in. No matter what you're being quoted, if the lender or mortgage broker can't lock those things -- beware.
I say this because I lost a deal to a mortgage broker the other day. Hey, can't win 'em all, right? Nope, ya can't. But you certainly have to try. No loan officer gets every deal; it's impossible.
In fact, I dare say I've lost as many or more loans that I've won. It's just sometimes when I get beat, and any loan officer out there can back me up on this one, by someone quoting interest rates that are simply not available it burns me up. It just isn't fair.
I know full well my prospective client will get the shaft later on down the road by this person, but there's little I can do. I'm not talking about an 1/8 or even 1/4 percent difference in rate; I got beat by a full percentage point. On the same exact loan!
That doesn't happen. Can't happen. Lenders can't be that far apart in rates. Yet I lost my client to someone who simply "low balled" and got the deal. What will happen is that the loan officer quoting ultra-low rates is simply hoping that rates go down so he can honor his rate quote or tell my prospect that rates went up after he got the application.
Sour grapes, anyone? Maybe. Okay, yeah, sour grapes.
This prospect was a referral from one of my top Realtors, and I quoted my best stuff. But I got a call a couple of days later telling me that my prospect chose someone else who was quoting much lower rates, thank you very much.
"Did you get a Good Faith Estimate?" I asked.
"Yes, I have it right here," he responded, "I'm afraid I'm going to have to go with this other person."
"Okay, thanks for the opportunity, hope I can help you in the future. Can you lock those rates in today with this mortgage broker?"
"No, he said he couldn't lock me in until he had my application in and I paid my application fee, but I can't pass up this offer," said my potential client.
"Hmmm," I said, "Usually someone can lock you in without an application or especially paying any fees, but I guess this loan officer since he has such low rates might have special requirements." I tried to be as diplomatic as possible and certainly with all due courtesy.
What was I supposed to say was, "Hey, you. You're working with a liar. If he can't guarantee those rates -- they aren't there."
But I didn't.
I lost the deal and resigned to keeping my fingers crossed that I'll get another phone call in a few weeks when he's getting ready to close, wanting to know what my rates are. Maybe. Or maybe not because he'll be too far into the process that he can't change lenders.
If your loan officer can't lock in ultra-low interest rates without such stipulations as "pay me some money then we'll talk," then you'd better watch out.
Okay, I know that there are fees that are sometimes paid to lenders upfront for a long term lock or perhaps a lender takes a commitment fee at the beginning of a construction project, but overall a consumer should be able to get what they're quoted. I also know that some lenders don't lock without an application and that's perfectly understandable to make sure the prospect is serious about the transaction.
But if either paying upfront money or providing a completed loan application while accompanied by rates that are literally out of this world -- just watch out. Get your lock confirmation as soon as you can.
I've got a funny joke I like to tell that illustrates the ol' "bait and switch."
A customer walked into a meat market and said to the butcher, "How much is a pound of hamburger today?"
The butcher replied, "My hamburger is $5.00 a pound."
"$5.00 a pound! Why, the market just across the street sells it for $3.00 a pound!" yelled the customer.
"Then go buy it across the street."
The customer said, "Well, I can't because he's out of hamburger."
"That's nothing" said the butcher, "when I'm out, my hamburger is only $1.00 per pound."
Published: September 8, 2006
by David Reed
Mortgage rates aren't any good if you can't lock them in. No matter what you're being quoted, if the lender or mortgage broker can't lock those things -- beware.
I say this because I lost a deal to a mortgage broker the other day. Hey, can't win 'em all, right? Nope, ya can't. But you certainly have to try. No loan officer gets every deal; it's impossible.
In fact, I dare say I've lost as many or more loans that I've won. It's just sometimes when I get beat, and any loan officer out there can back me up on this one, by someone quoting interest rates that are simply not available it burns me up. It just isn't fair.
I know full well my prospective client will get the shaft later on down the road by this person, but there's little I can do. I'm not talking about an 1/8 or even 1/4 percent difference in rate; I got beat by a full percentage point. On the same exact loan!
That doesn't happen. Can't happen. Lenders can't be that far apart in rates. Yet I lost my client to someone who simply "low balled" and got the deal. What will happen is that the loan officer quoting ultra-low rates is simply hoping that rates go down so he can honor his rate quote or tell my prospect that rates went up after he got the application.
Sour grapes, anyone? Maybe. Okay, yeah, sour grapes.
This prospect was a referral from one of my top Realtors, and I quoted my best stuff. But I got a call a couple of days later telling me that my prospect chose someone else who was quoting much lower rates, thank you very much.
"Did you get a Good Faith Estimate?" I asked.
"Yes, I have it right here," he responded, "I'm afraid I'm going to have to go with this other person."
"Okay, thanks for the opportunity, hope I can help you in the future. Can you lock those rates in today with this mortgage broker?"
"No, he said he couldn't lock me in until he had my application in and I paid my application fee, but I can't pass up this offer," said my potential client.
"Hmmm," I said, "Usually someone can lock you in without an application or especially paying any fees, but I guess this loan officer since he has such low rates might have special requirements." I tried to be as diplomatic as possible and certainly with all due courtesy.
What was I supposed to say was, "Hey, you. You're working with a liar. If he can't guarantee those rates -- they aren't there."
But I didn't.
I lost the deal and resigned to keeping my fingers crossed that I'll get another phone call in a few weeks when he's getting ready to close, wanting to know what my rates are. Maybe. Or maybe not because he'll be too far into the process that he can't change lenders.
If your loan officer can't lock in ultra-low interest rates without such stipulations as "pay me some money then we'll talk," then you'd better watch out.
Okay, I know that there are fees that are sometimes paid to lenders upfront for a long term lock or perhaps a lender takes a commitment fee at the beginning of a construction project, but overall a consumer should be able to get what they're quoted. I also know that some lenders don't lock without an application and that's perfectly understandable to make sure the prospect is serious about the transaction.
But if either paying upfront money or providing a completed loan application while accompanied by rates that are literally out of this world -- just watch out. Get your lock confirmation as soon as you can.
I've got a funny joke I like to tell that illustrates the ol' "bait and switch."
A customer walked into a meat market and said to the butcher, "How much is a pound of hamburger today?"
The butcher replied, "My hamburger is $5.00 a pound."
"$5.00 a pound! Why, the market just across the street sells it for $3.00 a pound!" yelled the customer.
"Then go buy it across the street."
The customer said, "Well, I can't because he's out of hamburger."
"That's nothing" said the butcher, "when I'm out, my hamburger is only $1.00 per pound."
Published: September 8, 2006
Wednesday, September 06, 2006
Home Price Appreciation Erosion 'Significant'by Broderick Perkins
The latest major housing market report reveals the level of home price appreciation is shrinking at a rate not seen since 1975.
On the heels of growing numbers of reports that inventories are rising as home sales are falling, the Office of Federal Housing Enterprise Oversight's Home Price Index for the second quarter 2006, reveals home prices rose 10.06 for the year and only 1.17 percent from the first quarter to the second quarter, for an annualized rate of 4.68 percent.
A year ago, home prices rose an average 14.04 percent for the year and 3.65 percent from the first quarter to the second quarter, for a 14.62 percent annualized rate.
Last year in the second quarter, the 14.04 percent year-to-year increase was the highest in recent history for the OFHEO.
The quarterly rate for the second quarter this year reflects a sharp decline of more than one percentage point from the previous quarter this year (2.2 percent) and is the lowest rate of appreciation since the fourth quarter of 1999 (1.12 percent) -- an era that spawned widespread home price deflation.
The decline in the quarterly rate comparing the second quarter this year to the second quarter last year (from 3.65 percent, down to 1.17 percent) is the sharpest decline since the beginning of OFHEO's House Price Index (HPI) in 1975.
The annualized rate, now at only 4.68 percent, peaked at 17.87 percent during the third quarter of 2004.
Home prices still moved faster than prices of non-housing goods and services in the Consumer Price Index over the past year, OFHEO reported, but the housing market continued to show signs of wear in a growing number of regions.
The blame for historically low levels of appreciation goes to a convergence of factors -- unaffordable housing, more attractive rents, higher interest rates, speculators and investors bailing out and the resultant rise in the supply.
The fundamentals always apply.
"These data are a strong indication that the housing market is cooling in a very significant way. Indeed, the deceleration appears in almost every region of the country," said OFHEO director James B. Lockhart.
Bend, OR, in one quarter moving up from No. 6, was the new home price appreciation leader among 275 metro areas with an annual rate of appreciation at 36.65 percent and a quarter-to-quarter rate at 7.37 percent. At the bottom of the heap, Ann Arbor, MI's home prices tanked, dropping 1.28 percent for the year with a full 1 percent loss in home values from the first to second quarter this year.
Bend is part of a trend. While the 20 Metropolitan Statistical Areas (MSAs) with the highest appreciation included nine cities in Florida, the representation of other states continues to grow. MSAs in North Carolina, South Carolina, and Washington State are now among the fastest appreciating markets.
Another trend reveals most states that had the highest home price appreciation in the first quarter this year, fell hardest when year-over-year numbers were examined in the second quarter.
Other significant OFHEO HPI findings included:
Arizona dropped nine percentage points in its four-quarter appreciation rate, but still had the highest rate of appreciation among the 50 states. Prices were up roughly 24 percent compared to the second quarter of 2005, but grew only 2.94 percent in the most recent quarter.
All states revealed appreciation for four quarters but five Midwestern and New England states had small price decreases in the second quarter.
Also hit hard was the South Atlantic Census Division including Florida, Delaware, the District of Columbia, Virginia and Maryland where the most significant price deceleration was experienced since at least the early 1980s. The region's four-quarter appreciation rate fell from 17.43 percent to 13.74 percent.
New England's four-quarter appreciation rate fell big too, from 8.71 percent to 5.68 percent. Appreciation rates in Massachusetts were consistently among the 10 highest between mid-1997 and mid-2003, but its four-quarter appreciation rate now ranks No. 48 among the states and the District of Columbia.
Price appreciation remained relatively robust in Louisiana and Mississippi, the two states hardest hit by Hurricane Katrina. Four-quarter appreciation rates were well above the national average in cities in the area including: New Orleans-Metairie-Kenner, Gulfport-Biloxi; Baton Rouge; and Pascagoula. Gulfport-Biloxi and Pascagoula logged their highest appreciation rates since the beginning of OFHEO's Index.
Michigan had the greatest number of price decreases among ranked MSAs. A baker's dozen, 13 of Michigan's 16 ranked metropolitan areas, exhibited quarterly price decreases.
Published: September 6, 2006
The latest major housing market report reveals the level of home price appreciation is shrinking at a rate not seen since 1975.
On the heels of growing numbers of reports that inventories are rising as home sales are falling, the Office of Federal Housing Enterprise Oversight's Home Price Index for the second quarter 2006, reveals home prices rose 10.06 for the year and only 1.17 percent from the first quarter to the second quarter, for an annualized rate of 4.68 percent.
A year ago, home prices rose an average 14.04 percent for the year and 3.65 percent from the first quarter to the second quarter, for a 14.62 percent annualized rate.
Last year in the second quarter, the 14.04 percent year-to-year increase was the highest in recent history for the OFHEO.
The quarterly rate for the second quarter this year reflects a sharp decline of more than one percentage point from the previous quarter this year (2.2 percent) and is the lowest rate of appreciation since the fourth quarter of 1999 (1.12 percent) -- an era that spawned widespread home price deflation.
The decline in the quarterly rate comparing the second quarter this year to the second quarter last year (from 3.65 percent, down to 1.17 percent) is the sharpest decline since the beginning of OFHEO's House Price Index (HPI) in 1975.
The annualized rate, now at only 4.68 percent, peaked at 17.87 percent during the third quarter of 2004.
Home prices still moved faster than prices of non-housing goods and services in the Consumer Price Index over the past year, OFHEO reported, but the housing market continued to show signs of wear in a growing number of regions.
The blame for historically low levels of appreciation goes to a convergence of factors -- unaffordable housing, more attractive rents, higher interest rates, speculators and investors bailing out and the resultant rise in the supply.
The fundamentals always apply.
"These data are a strong indication that the housing market is cooling in a very significant way. Indeed, the deceleration appears in almost every region of the country," said OFHEO director James B. Lockhart.
Bend, OR, in one quarter moving up from No. 6, was the new home price appreciation leader among 275 metro areas with an annual rate of appreciation at 36.65 percent and a quarter-to-quarter rate at 7.37 percent. At the bottom of the heap, Ann Arbor, MI's home prices tanked, dropping 1.28 percent for the year with a full 1 percent loss in home values from the first to second quarter this year.
Bend is part of a trend. While the 20 Metropolitan Statistical Areas (MSAs) with the highest appreciation included nine cities in Florida, the representation of other states continues to grow. MSAs in North Carolina, South Carolina, and Washington State are now among the fastest appreciating markets.
Another trend reveals most states that had the highest home price appreciation in the first quarter this year, fell hardest when year-over-year numbers were examined in the second quarter.
Other significant OFHEO HPI findings included:
Arizona dropped nine percentage points in its four-quarter appreciation rate, but still had the highest rate of appreciation among the 50 states. Prices were up roughly 24 percent compared to the second quarter of 2005, but grew only 2.94 percent in the most recent quarter.
All states revealed appreciation for four quarters but five Midwestern and New England states had small price decreases in the second quarter.
Also hit hard was the South Atlantic Census Division including Florida, Delaware, the District of Columbia, Virginia and Maryland where the most significant price deceleration was experienced since at least the early 1980s. The region's four-quarter appreciation rate fell from 17.43 percent to 13.74 percent.
New England's four-quarter appreciation rate fell big too, from 8.71 percent to 5.68 percent. Appreciation rates in Massachusetts were consistently among the 10 highest between mid-1997 and mid-2003, but its four-quarter appreciation rate now ranks No. 48 among the states and the District of Columbia.
Price appreciation remained relatively robust in Louisiana and Mississippi, the two states hardest hit by Hurricane Katrina. Four-quarter appreciation rates were well above the national average in cities in the area including: New Orleans-Metairie-Kenner, Gulfport-Biloxi; Baton Rouge; and Pascagoula. Gulfport-Biloxi and Pascagoula logged their highest appreciation rates since the beginning of OFHEO's Index.
Michigan had the greatest number of price decreases among ranked MSAs. A baker's dozen, 13 of Michigan's 16 ranked metropolitan areas, exhibited quarterly price decreases.
Published: September 6, 2006
Tuesday, September 05, 2006
Internet buyers paying thousands for unbuildable lots
ORLANDO, Fla. -- Sept. 5, 2006 -- Old-time swamp peddling has gone high-tech, thanks to Internet-auction sites such as eBay.
The pitch -- speculation on near-worthless Florida real estate -- is decades old. But today, a new generation eyeing property for investment or retirement is buying land that's miles from civilization, has no roads or utilities and sometimes is underwater.
Known as "paper subdivisions," these undeveloped tracts are the remnants of developers' unfulfilled dreams -- if not outright scams -- in Florida's Osceola, Polk, Volusia and Brevard counties. Buyers are paying thousands of dollars over assessed value for a lot that can't be built on in a subdivision that does not officially exist.
An acre-and-a-quarter lot -- usually assessed at $600 to $1,200 -- fetches 10 times that or more from unsuspecting buyers in Internet auctions. Florida officials estimate there are millions of these unbuildable lots in every part of the state.
Some eBay sellers have owned their lots for decades -- purchased as part of a retirement dream dangled by a high-pressure salesman. Others scooped up lots in tax sales after owners stopped paying property tax on land they realized they never could use.
Still others got ownership by paying as little as $2,000 a lot to previous owners.
Now, some buyers who say they were swindled are speaking up -- and getting results.
"You cannot do anything with the land," said Robert Derogene, a mortgage broker who paid $46,500 for three acre-and-a-quarter lots at a paper subdivision known as University Highlands in Volusia County. "A whole bunch of people were misled, and I didn't like that."
The state is responding to complaints from disgruntled buyers such as Derogene by forcing some sellers to offer to buy back the property, citing their failure to follow the state law regulating the sale of subdivided land. Violations can include a seller failing to register land with the state for sale.
Derogene's complaint resulted in the sellers agreeing last month to offer refunds to the buyers in 67 transactions, many of whom had complained about their eBay purchases.
Nathan Oliver of Daytona Beach, Fla., another owner who has been selling land via the Internet in University Highlands, wouldn't discuss the consent order that he and a partner signed with the state Division of Florida Land Sales, Condominiums and Mobile Homes. The pair had to offer refunds in 187 transactions to avoid a $1.87 million fine.
"I don't have anything to say. I've been honest and sincere with everybody," said Oliver, who, according to the order, agreed to $189,000 in penalties and investigative costs.
The eBay listings can make the land appear more valuable than it is.
One pitch for Suburban Estates in Osceola County calls it a "gated community." Others tout easy access to the beach, Orlando and Walt Disney World. All are miles from the property.
And though some listings acknowledge that a house cannot be built on the property, they leave the impression that someday that could change.
"If you are looking for a site to build a house, you won't be able to use this property for that at this time. One day soon, when this area becomes further developed, this land could be worth a small fortune!!" reads an eBay listing in capital letters for Volusia's Cape Atlantic Estates.
Not every buyer is unhappy, however. Even though hundreds have been offered state-mandated restitution, some want to hold on to their land.
"It's a gamble," said Robert Thompson, who is one of the 187 University Highlands buyers being offered a refund by Oliver. "I don't know if I ever will be able to build. I believe it's going to take off."
Thompson has seen the value of Florida swampland increase. He cites land once considered swampland in Palm Beach County that sold for about $1,000 for an acre-and-a-quarter 25 years ago. Houses now sit on it, and the land is worth $150,000 to $200,000 an acre.
The state Attorney General's Office has launched separate investigations in Polk and Volusia counties after angry buyers complained about their purchases. The civil investigations involve two companies, one selling land in River Ranch Acres in Polk County, which for decades has been the subject of land scams, and the other running a similar operation at University Highlands.
According to one of the complaints, the investigation centers on the "alleged sale of undevelopable 'swampland' to buyers over eBay without full disclosure of all material facts relating to condition of land."
The land-sales division does not go looking for unlawful transactions on eBay, said Thomas Butler, deputy press secretary for the Department of Business and Professional Regulation. However, "We do investigate complaints from the public that may involve its use."
Rob Walsh, coordinator of Volusia Forever, a group that buys land to preserve it from development, said his organization won't bid for lots on eBay.
"We will not pay eBay prices. We simply walk away from them," Walsh said. "It has made it more difficult to purchase property. Where it really has caused us heartburn, is that it caused the property appraiser to jack up some of the land. ..."
University Highlands (9,400 acres) and Cape Atlantic Estates (11,400 acres) are two of the largest in Volusia, which also has many smaller paper subdivisions.
Deceptive land-sales practices are not new in Florida. For instance, in the 1960s, the Gulf American Land Co. sold thousands of lots in River Ranch Acres to unsuspecting buyers nationwide before going bankrupt.
Land throughout Florida was often sold in the 1960s and 1970s from telephone boiler rooms or through high-pressure sales meetings as retirement investments. The sales pitches, which often included a free dinner and a movie, would allow buyers to purchase land for a couple of hundred dollars down and interest-free payment of $50 a month. The developers, which often later declared bankruptcy, took cash and never filed the necessary paperwork with local governments or built roads and infrastructure.
Richard Lawrence said the current speculation is destroying the recreational uses of Osceola's Suburban Estates, where he has owned land for several years.
Like similar tracts in Polk and Volusia counties, the 10,449 acres in east Osceola has become a haven for those like Lawrence who enjoy the outdoors.
Suburban Estates is a mixture of cypress swamp, palmetto brush and scrub pine. Sandy roads wind through the property that has through the years turned into a secluded refuge for owners who like to hunt and drive vehicles through the challenging country. The area is gated, and keys are issued to only deed holders by an owners-group calling itself the Suburban Estates Preservation Association.
Osceola County does not issue construction permits in Suburban Estates. Once, it permitted hunting camps, but the lack of utilities and roads made even those problematic, a county zoning official said.
But many investors don't know this, nor do they realize that land values in Suburban Estates have been stagnant for years.
Records show there are thousands of owners, which would make it almost impossible for any developer to buy up enough property to develop Suburban Estates. The same holds true for other areas.
The best thing that could happen would be for somebody to purchase the land and replat it, said Jo Thacker, Osceola's acting county manager. The thousands of owners would make that process difficult, but she said increasing land values eventually might attract a developer willing to take on such a project.
"I believe it will get to the point that someone will try to go in and accumulate pieces or large tracts of it," she said. "It could be a while. Someday they (owners) could get some money out of it."
© 2006, The Orlando Sentinel (Fla.). Distributed by Knight Ridder/Tribune News Service.
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