Updated S&P Case-Shiller Index (Home Price Index)

The S&P Case-Shiller Index was released today and home prices around the nation have gone down an average of 18% compared to last year. Although prices have gone down significantly, so have mortgage rates. It is not uncommon now to get a loan for five percent or less for a thirty year fixed rate loan. The low interest rates combined with the low home prices has been the main reason for sales to increase in many parts of the nation compared to a year ago. To increase the size of the index below, please click on the image below.



Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Seasons Greetings!

Seasons greetings to all of you! I wish all of you the very best. Have a safe and happy New Year, and good luck to all of you and your loved ones for the coming year.

Amit Bhuta

Real Estate Helper
Kendall Village Homes

(305) 439-3031
www.DadeCountyMLS.com

South Florida Home Prices (Miami Herald)

In today's edition of the Miami Herald, Matthew Haggman wrote a very informative article on South Florida Home prices. The article is below.

The median prices for South Florida single-family homes dropped in November to 2003 levels as residential real estate values continue to plummet, according to figures from the Florida Association of Realtors.

But sales again rose sharply as banks unloaded foreclosed homes and individual sellers slashed prices. The increased buying activity reduced the number of homes listed for sale, although the inventory of unsold homes still remains large by any measure.

Sales for existing single-family homes in Miami-Dade were up 39 percent in November compared to the same month a year ago. Broward single-family home sales were up 26 percent. Condominium sales for existing units in November were also up, though not as much. Condo sales were up 4 percent in Miami-Dade and 3 percent in Broward compared to November 2007.

Despite the increased sales activity, there were no signs prices are stabilizing.

Miami-Dade single-family home prices in November dropped by nearly half -- 48 percent --from a year ago. Broward single-family home prices were down 34 percent. For condos, prices were similarly down: Miami-Dade was off 35 percent and Broward, 34 percent.

That puts median prices for a single-family house at $224,700 in Miami-Dade and $229,100 in Broward. The median Miami-Dade condo price is now $172,600 and the median Broward condo fetched $109,400 in November.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
www.DadeCountyMLS.com

Quick Real Estate Sales Stat

Existing single-family home sales were up 23 percent in Miami-Dade and 46 percent in Broward in October. Condo sales increased 30 percent in Broward and eked out a 1 percent gain in Miami-Dade. The median price for single-family homes in South Florida was $246,800 in Miami-Dade and $252,500 in Broward. For condos, the October median price was $197,400 in Miami-Dade and $115,200 in Broward. In Palm Beach County, October sales increased 37 percent from a year ago. The median price of single-family homes was $264,600. Palm Beach County condo sales rose 23 percent, and the median price was $135,800.


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

FDIC Unveils Aggressive Mortgage Plan

Today the FDIC unveiled a plan that would help past due borrowers. It is still only a proposal and needs to get the Treasury Department's approval. Otherwise it would need to get approved by Congress or wait for review by President-elect Barack Obama's administration. The plan is very interesting and has the potential to help nearly 2.2 million borrowers. The plan would cost an estimated $24.4 billion, which could come from the $700 billion bailout Congress approved last month. To view more information on this mortgage proposal, please click on the link below to view the article from CNN.

Mortgage Proposal Article

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Should I Buy or Should I Wait?

The question almost every potential home buyer is thinking now is - should I buy now or should I wait? I get asked this many times each week. Based on the research I have done, I definitely know that now is the best time to buy. Coming from a Realtor, it doesn't mean a whole lot, especially if I get paid to sell homes. So instead of you just taking my word for it, I figured I would give you some information that should help you make a much more informed decision.

As you may already know interest rates have been very volatile and since the beginning of the year they’ve increased. The good news is historically speaking they’re still very low...a conforming 30 year fix rate loan is currently ranging between 6.0% - 6.5% with zero points.

Although rates have remained historically low most experts agree they will move higher sooner than we think! One reason for this expectation is that the Federal Government controls inflation by increasing interest rates…and inflation will most likely become a serious concern very soon.

Take a closer look at the potential risks of waiting for home prices to continue to drop versus the potential benefit. Let’s assume we waited another full year and let’s say home prices did indeed drop another 10%. During this same time frame let’s assume interest rates increased by about 1%. (Note: interest rates were at 5.5% in Feb 2008 and now they’re consistently above 6%. Therefore, assuming a 1% increase one year from today is very realistic and might even be considered to be a conservative estimate.)

Here’s the effect this scenario would have in terms of our monthly mortgage payment:

Today…

Sales Price $250k
Down Pmt. $50k (20%)
Loan Amt. $200k
Rate 6.25%
Payment $1231

One Year Later…

Sales Price $225k (10% less)
Down Pmt. $45k (20%)
Loan Amt. $180k
Rate 7.25% (1% higher)
Payment $1228 (potential benefit of waiting…save a whopping $3 per month)

The potential risks (reality) we face by playing the “waiting game” or trying to time the “bottom” of the market:

- Lenders continue to tighten their guidelines making credit less available

- “Life” happens and our current ability to qualify today may be affected tomorrow

- More buyers/competition will enter market and create bidding wars which results in price increases

-Purchase after 12-31-08 and we’ll have to wait until 2010 to benefit from Homestead Exemption

- Federal Income Tax Credit of $7,500 available today expires June 30, 2009

- The same dream home available today based on our needs will almost definitely be gone by next year

The fact is very few of us (if any) are able to time the bottom of any market correctly. By the time we see the “bottom” we’re looking at it through our rear view mirror which means the opportunities have past us by.

Unless you’re trying to save $3 dollars per month, the risks clearly out weigh the benefit.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Halloween Safety Tips for Children

If you have been a reader of my blog, you probably know that it is usually about real estate. You also probably know that it is about other topics as well. One of the things that is really important to me is helping parents find their missing kids. Halloween is a holiday that many people love to celebrate, but unfortuantely can also be very dangerous if we are not careful. Below are some Halloween safety tips for children from the Missing Kids website.

1. Be sure older children TAKE FRIENDS and younger children are accompanied by a TRUSTED ADULT when "Trick or Treating."
   
2. Accompany younger children to the door of every home they approach and make sure parents and guardians are familiar with every home and all people from which the children receive treats.
   
3. Teach children to NEVER enter a home without prior permission from their parents or guardians.
   
4. Teach children to NEVER approach a vehicle, occupied or not, unless they are accompanied by a parent or guardian.
   
5. Make sure all children wear reflective clothing and carry a glow stick when out at dusk and at night.
   
6. Make sure children are able to see and breathe properly and easily when using facial masks. All costumes and masks should be clearly marked as flame resistant.
   
7. Teach children to NEVER approach a home that is not well lit both inside and outside.
   
8. Teach children to stay alert for any suspicious incidents and report them to their parents, guardians, and/or the proper authority.
   
9. Teach children if anyone tries to grab them to make a scene; loudly yell this person is not my father/mother/guardian; and make every effort to get away by kicking, screaming, and resisting.
   
10. Consider organizing or attending parties at home, in schools, or in community centers as a good alternative to “Trick or Treating.”

HAVE A SAFE AND FUN HALLOWEEN!

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

September 2008 South Florida Real Estate Stats

Here are some quick stats on the South Florida (Miami-Dade County) real estate market from September 2008. Contrary to what we hear in the media, sales are actually not that bad. Between single family homes and condos, there were 1,009 closed sales that took place in September. There were also 1,666 homes and condos that were placed under a sales contract and are just waiting to close. The months of inventory of homes for sale is 42.1 months. This number is still pretty high but a lot less than some recent months when there were over 70 months of inventory. For those homes that sell now days, the average amount of days they are on the market before a closed sale takes place is 120 days. The price that the home sales for is 90% of the last price it was on the market for.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Quick Mortgage Fraud Stat

Florida leads the nation in mortgage fraud, accounting for about a quarter of the nation's fraudulent loans, according to industry trade groups. Many people think that South Florida is number one in the nation for mortgage fraud. Although it would seem to make sense to assume this because South Florida had some of the greatest price appreciation during the housing boom and had very lax lending standards, Fort Myers is number one in the nation in mortgage fraud per capita. Because there are so many ways that innocent buyers or sellers get trapped into mortgage fraud without knowing it, it only makes sense to use an experienced Realtor, who is familiar with mortgage fraud, when entering into a real estate transaction.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Latest Real Estate Scheme

Today a large percentage of homes on the market for sale are foreclosed properties owned by banks, also known as REO's. Because they have been foreclosed, all of these homes are vacant and have lock boxes on the front door with the keys inside them. It is very easy for Realtors, appraisers, etc to get the combination to access the keys. To make it more convenient for accessibility, most banks use the same codes for all of their properties. If a person in the real estate industry knows a property is for sale by a particular bank, the odds are that they can get into the home without giving any of their information to any one. Due to this, a new real estate scheme has surfaced.

The real estate scheme works the following way. The crook gets a list of homes owned by a particular bank thru the MLS (multiple listing service) without giving any personal information. Since he knows that bank's lock box codes, he drives by these homes and previews them by himself. He will try to find a home that is in fairly good condition and also in a remote area without too many neighbors. The crook will also make sure that this home will be one that probably won't have that many showings. The next step is for the for sale sign to be removed. A rental ad for that home will be listed in the newspaper or somewhere else with a contact number for the crook. This number will be a number that will later be disconnected when the scam is over. The rental price will be a very good value for a potential tenant. When the tenant meets up with the crook, the crook tells the person that he can discount the price even more if the person pays his upfront money (first month, last month, and security deposit) with cash instead of a check. The tenant pays the upfront money in cash, signs what turns out later to be a meaningless lease, and moves in. The crook takes the cash and vanishes into thin air, never to be heard from again. Eventually the bank finds out that their home is not selling and that someone is living in it.

The bank can't just tell the person to leave the home. Because the tenant is a victim of a crime and has established that home as his residence, the tenant is entitled to an eviction process, which could take the bank many many months to resolve.

The reason I am writing all the steps to this real estate scheme isn't too teach someone how to be a crook but rather how important it is to use an experienced, trust-worthy Realtor to do a background check on a rental property. A good Realtor will check and make sure that the property is actually owned by the landlord, check to make sure that the landlord isn't past due on the mortgage or in foreclosure trouble, and check on many other things.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Updated Real Estate Stats

I'm sure all of you keep hearing about our failing economy and horrible housing market in the media every day. Many people have the perception that it is a terrible time to buy real estate and that no one is buying anything. Based on recent statistics from August 2008 (below), it seems like the opposite is true.

BROWARD

Sales of Single Family Homes are up 12% ..... but median sale prices down 27%!

Sales of Condos are remaining the same ..... median sale prices down 25%!


MIAMI

Sales of Single Family Homes are up 22% ..... but median sale prices down 30%!

Sales of Condos are up 13% ..... median sale prices down 20%!

Median Sale Prices are down probably due to short sales, foreclosures, and bank owned properties (REO's).


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Feds Take Over Fannie Mae and Freddie Mac

The government took over Fannie Mae and Freddie Mac yesterday. The stock market reacted very favorably to this news with the DOW Jones going up over two hundred points. So how does the news of the Feds taking over these two mortgage giants affect you? Please click on the link below to read an article on the topic from BankRate.com.

How the Fannie and Freddie Takeover Affects You

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

IndyMac Borrowers Get Some Help

Yesterday the FDIC (the Federal Deposit Insurance Corporation) said it would offer new mortgages to thousands of troubled homeowners whose loans came from or were serviced by IndyMac Bank, which failed in July.

To read the full story from the Sun-Sentinel, please click on the link below.

IndyMac Borrowers Get a Do Over

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

First Time Home Buyer Tax Credit Fact Sheet

2008 Housing Stimulus Legislation
First Time Home Buyer Tax Credit Fact Sheet

Who is Eligible?

1. The $7,500 tax credit is available for first time home buyers only.

2. The law defines a first time home buyer as a buyer who has not owned a home during the past three years.

3. All US citizens who file taxes are eligible to participate in the program.

Types of Homes that Qualify for the Tax Credit

1. All homes, whether single family, town homes or condominiums will qualify.

2. However, there are several conditions:
a. The home must be used as a principal residence, and
b. The buyer has not owned a home in the prior three years.

3. The Tax Credit includes newly constructed home.

Income Limits

1. Home buyers who file as single or head of household taxpayers can claim the full $7,500 credit if their adjusted gross income (AGI) is less that $75,000 annually.

2. For married couples filing a joint return, the income limit doubles to $150,000 annually.

3. Single or head of household taxpayers who earn between $75,000 and $95,000 are eligible to receive a partial first time home buyer tax credit.

4. Married couples filing jointly who earn between $150,000 and $170,000 annually are eligible to receive a partial first time home buyer tax credit.

5. The credit is not available for single taxpayers whose AGI is greater that $95,000 and Married couples filing jointly with an AGI that exceeds $170,000 annually.

Effective Dates for the Tax Credit

1. First time home buyers would receive a $7,500 tax credit for the purchase of any home on or after April 9, 2008 and before July 1, 2009.

2. To qualify, you must actually close on the sale of the home during this period.

Tax Credit is Refundable

1. A refundable credit means that if you pay less than $7,500 in federal income tax, then the government will write you a check for the difference.
a. For example, if you owe $5,000 in federal income tax, you would pay nothing to the IRS and the will send you the difference of $2,500.
b. If you are due to receive a $1,000 tax refund then your refund will total $8,500. ($1,000 plus the $7,500 tax credit)

2. If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 tax return.

Payback Provisions

1. The tax credit is an interest free loan that must be repaid over 15 years.

2. The minimum repayment amount must be 15 equal annual installments. For example, if the credit amount is $7,500, then the home buyer must repay a minimum of $500 each year for 15 years.

3. A home buyer must begin repaying the credit two tax years after claiming the credit. For example, if the credit is claimed on the 2008 tax return, repayment of $500 (or less, if the credit amount is less than $7,500) per year begins with the 2010 return.

4. If the home owner sells the home for a profit and there is a remaining credit, then the home owner is required to repay the remaining credit during the tax year of the home sale. The amount of the repayment will depend upon the amount of profit from the home sale:
a. If the profit on the sale is more than the remaining credit, then the home owner must repay the entire remaining credit.
b. If the profit on the sale is less than the remaining credit, then the home owner must repay an amount equal to the profit on the home sale. The remaining credit payback will be forgiven.

5. If the home owner sells the home but did not make any profit on the home sale, then the remaining credit payback would be forgiven.

Further information regarding the tax credit may be found at ww.FederalHousingTaxCredit.com or www.irs.gov.

This information is provided for general awareness only, and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind. Please consult with your tax professional for complete details.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

President Signs Housing Bill

Today President Bush signed into law a massive housing bill that is to offer affordable government-backed mortgages to homeowners at risk of foreclosure, and to bolster Fannie and Freddie with a temporary rescue plan and a new, more stringent regulator. To get all the details, please click on the link below.

President Signs Housing Bill

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

"Last Lecture Professor" Dies

I'm not sure if you read my post in March about one of the most inspiring people I have come across in my life, Randy Pausch. If you haven't, please take a few minutes to read and view the video from my earlier post.

Randy Pausch Post

It is with great sadness that I report that Randy passed away today at his home in Virginia. Many times in life we get wrapped up with our daily struggles and aren't really aware of what is really important. Thank you Randy for teaching me and millions others what life is all about.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

FHA and VA Loans

In today's South Florida real estate market, we are seeing more and more FHA and VA loans. I will go into much greater detail about these loans in a future post in this blog. For now, here is some basic information. A person DOES NOT have to be a first time buyer to qualify for an FHA loan, and a person MUST have served in the military to qualify for a VA loan. Both FHA and VA loans allow the home buyer to put down a much smaller downpayment than a conventional loan. This is the main reason more and more people are doing these types of loans today. If you do decide to ask your bank or mortgage broker to see if you qualify for one of these loans, below is a list of items that hold up FHA and VA (government) loans as well as some recommendations on making them smoother transactions.

1) Tax returns must be SIGNED and DATED even if they were filed by an accountant or online. (Full return w/all schedules must be included)

2) Bank statements must include NAME of the bank and the customer, Account number, and cover a 30 day history. If they are online statements they must be printed directly from a secure website indicated by “https” at the bottom of the printout. If they are provided by a bank employee, ALL pages must be signed, dated, and stamped.

3) A pest inspection must ALWAYS be done for VA loans and submitted to the lender for approval. If the inspector comments on items like rotted wood, be prepared to fix them in order to close the transaction. Also, if the inspector “calls for action” by checking a box or making comments be prepared to fix those items before closing. (example - soil line is too high, wood to ground contact, etc.)

4) Contract must be signed and dated by all parties, as well as all changes initialed/dated by all parties. This can no longer be taken care of at closing.

5) Do not put items in the contract such as “Seller to pay buyer $500 for repairs.” Anything the seller is paying to the buyer must be “towards closing costs” or paid directly to a third party vendor. (example - handy man, home warranty, etc.)

6) You should not leave for vacation during the process or the day after closing. Delays that are out of control happen with government loans.

7) As noted above, delays happen many times on government loans. Don't set up appointments with movers, contractors, parties, etc. for the day after closing. The mortgage company understands and cares that customers have obligations but sometimes delays are unavoidable. Don't schedule appointments a week after the closing date.

8) Turn in the contract as soon as possible to the lender. If there are changes required that must be initialed, sellers can get very irritated when they have to tend to the contract again a couple of days before closing.

9) The worse the credit, the more documentation required.

10) Government loans require a lot of documentation so don’t allow yourself to become frustrated. It is imperative for everyone to cooperate fully in order to have a smooth government transaction.

11) All VA applicants must have their Certificate of Eligibility (COE). If they have never used their VA benefits before, the lender can generally obtain this online instantly. If you have used your benefits before, this process can take SEVERAL WEEKS! Make sure this is taken care of before you find a home, so you can close on time.

12) All FHA/VA applicants must have 2 years of work history. School/College does count. If the customer does not meet this requirement, they will have to provide a satisfactory letter of explanation telling us why.

13) An offer letter is not sufficient to show income for FHA/VA loans. You must provide a pay stub including 30 days history prior to closing, NO EXCEPTIONS!

14) If you receive a gift for down payment and closing costs, you must show this transaction properly by way of a gift letter. There should be a paper trail proving transfer of funds from the donor to the recipient (example - Gift letter filled out by both parties as well as a copy of the cancelled check. Sometimes donor will be asked for a bank statement to prove ability to gift funds.). This is very important.

Please print this information and refer to it as a checklist, and I can guarantee you that it will save you a great deal of stress and heart ache that previous home buyers had to go thru.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

What is Title Insurance?

Title insurance is something that most buyers and sellers have heard many times, but the majority of those people aren't exactly sure what it is. So what is title insurance? Title insurance provides coverage for losses due to defects in title that occurred prior to a new homeowner's ownership. It is the only protection against things such as unpaid taxes and liens, judgements against the seller, fraud or forgery on deeds and wills, missing heirs, transfers of title by a minor, or other issues that might go undetected until after closing and which could possibly jeopardize the new homeowner's ownership and investment.

Why does someone need title insurance? There are many defects in the title that may not be revealed in the title examination. Some examples of these hidden defects might be fraud or forgeries on documents such as deeds and wills, missing heirs, defective deeds, clerical errors in records, claims arising because a married person conveyed property without his or her spouse, and transfers of title by a minor. An owner's title policy will protect and defend the homeowner's investment if any claims are made against the property, whether the claim in valid or not, at no additional cost to the homeowner.

I hope the above clears up some of the confusion that many of us have about what title insurance actually does. As with every case, it is always best to consult a real estate attorney if a problem with your title ever arises.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

How Do I Sell My Home in Today's Market?

How do I sell my home in today's real estate market? That is a question that is asked a lot now days, especially in a depreciating market. There was an excellent article in today's Sun-Sentinel that gave home seller's a blue print of what to do in order to sell their home quickly. The article is below.

How Do I Sell My Home in Today's Market?


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Short Sales - Some Real Life Examples

Short Sales. That's what so many of us hear constantly about in the real estate industry. There are two extremes here - one being the buyers that are only interested in them and nothing else, and the other buyers that don't want to have anything to do with them. As a Realtor, most of us aren't that eager to do them. The main reason is that there are so many things that the buyer, seller, and Realtor can't control. There are definitely times when buyers are able to get a great deal because they bought a short sale. But the majority of time, it's a roller coaster ride of happiness, impatience, disappointment, sadness, and then anger for the buyer, seller, and Realtors involved.

To get a better understanding of the process and some real life examples, Diane Wedner of the Los Angeles Times wrote a great article about this. Please click on the link below to read the story.

Short Sales - Some Real Life Examples


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Is My Home Overpriced?

Wall Street Journal writer Amy Hoak wrote an article today about whether a home is overpriced or not. It is sort of long but is definitely worth reading because it gives you insight into whether the price of your home is realistic or not. Please read below.

Sluggish housing markets are filled with listings that are lingering on the market, prompting many home sellers to ponder a price cut.

A seller's reality check may come after the listing produces very few showings or a prospective buyer is lost to a competing -- and lower-priced -- home down the block.

"It's a very price-driven market," says Mike Golden, co-founder and co-principal of @properties, a Chicago-based real-estate brokerage.

No longer are buyers letting their emotions interfere when they decide to buy a home -- they're looking for deals, he says.

Many sellers whose homes are sitting on the market without a buyer in sight had unrealistic expectations from the start, real-estate agents say.

"We still have sellers who are in denial of the market and don't want to price properties where they need to," says Susan Jacobs, broker-owner of an Assist-2-Sell brokerage in Manassas, Va. Her clients are often shocked to learn how much prices have fallen.

How can sellers tell if their homes are overpriced? Look for the following signs:

1. Not enough showings. A home is likely overpriced if it doesn't get any showings in the first couple of weeks it's on the market, Ms. Jacobs says.

Even more proof a price cut is needed: people are interested enough to take information from brochure boxes in front of the home, and there have been a substantial number of hits on its Web site listings, but buyers still aren't scheduling showings, she adds.

A real-estate agent will often have access to data on how many hits an Internet listing gets.
If a home doesn't make a buyer's "showing cut," and buyers don't think it's worth the time, hassle or gasoline to schedule a visit, it's likely overpriced, says Dave Crumby, broker-owner of another Assist-2-Sell brokerage, in Tempe, Ariz.

"If you can't get people into your home, it's highly unlikely that it will sell," he says.

2. Some showings, but no contract. Perhaps the number of showings isn't a problem, yet there still have been no offers.

"If you're getting showings but not getting a contract, that means you're still not quite low enough," Ms. Jacobs says. "You're close, but there's so much competition out there."

Consider this guideline from Becky Flores, a real-estate agent at a San Antonio-based Keller Williams brokerage: "Ten showings and no offer or two weeks with no showings, you are probably overpriced for the current market. This is true especially in this very competitive market," she says.

3. Similar homes are now selling for less. In markets where the median price is falling, it's important to regularly monitor what homes are selling for, Mr. Golden says. Real-estate agents should provide clients with up-to-date information on the market to determine whether the home is still priced correctly.

"Historical data isn't quite so powerful anymore. You have to look at what is selling now, and what it is selling for," Mr. Golden adds.

In Phoenix, there's a big difference between the average price for active listings and the average price for pending sales, Mr. Crumby says.

Monitor pending sales daily, and make sure your home is competing well with the homes that buyers are taking action on, he adds.

4. Repeated negative feedback. If buyers who do walk through the home have the same negative reactions to it, that could be another red flag that the price needs to be dropped, Ms. Jacobs says.

Buyer feedback, collected from a real-estate agent, may reveal that other houses in the same price range have updated kitchens or bathrooms and the home in question hasn't kept up with the times.

To address the disparity, sellers can either remodel or cut the price.

"You can sell anything anywhere. If the price is right it will sell," Ms. Jacobs says.

5. You've cut the price, but not enough. If a price cut is in order, don't cut by small increments. Several smaller decreases could make a seller look desperate, but a larger decrease will generate more interest, Ms. Flores says.

"A $2,000 price reduction is nothing in the grand scheme of things. Even on a $100,000 house, I'd lower by $5,000 at least, if it isn't moving," she says.

"Your first three weeks are critical. You'll have your most showings with the most potential, qualified buyers -- those that are out there waiting for something that matches their needs to come on the market," Ms. Flores says.

"Don't blow it by overpricing."

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

When Should I Invest in Real Estate?

CNN recently interviewed a housing expert on when is the best time to invest in real estate. You'll probably be very surprised with his answer. Please click on the link below to view.

When Should I Invest in Real Estate?

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Understanding Property Tax Portability

On January 29, 2008 Floridians voted yes on Amendment 1 (www.YesOn1Florida.com). Amendment 1 gives the people of Florida a tax cut- guaranteed by law, and will help reignite Florida’s economy. With the passage of Amendment 1, families across Florida will see an immediate decrease and even greater savings when they move. This part of the amendment is also known as the property tax portability part. It is a huge benefit that most people aren't aware of or are confused about. Instead of giving you a somewhat confusing example of how different homeowners in different situations are affected, it is a lot easier to click on the link below and see how YOU would be affected. The link shows you what your situation would have been prior to the approval of Amendment 1 and also shows you the savings you will get now.

Miami Dade County Tax Estimator

Broward County Tax Estimator


Just in case you did want an explanation of how tax portability works, please click on the link below.

How Tax Portability Works


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Hurricane Season 2008

The hurricane season starts June 1st every year and ends on November 30th. Since it lasts half of the calendar year, it is very important to be prepared and have a reference guide with critical updated storm information, important phone numbers, as well as everything else associated with hurricanes. Please click on the link below to get the best hurricane information I could find on the internet. You can also download and print out the reference guide in case there is a power outage in the future.

Hurricane Season Reference Guide

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Easy Way to Save Some Cash

The average price of a gallon of regular gas in January of 2007 in the US was roughly $2.13. As you all are very aware of, the price of gas has gone up like crazy recently. Now the average price of a gallon of regular gas in the US is around $3.93. That's a little bit less than double in ONLY 16 months. This post on my blog isn't about the reasons why gasoline has gone up. If you are interested in those reasons, you can click on the following link, Reasons for Gas Price Increases.
The purpose of this post is to show you a way to save a little bit of cash.

If you visit my website, www.DadeCountyMLS.com, I have a tool there where you can put in any zip code in the US, and it will tell you the cheapest price of gas (regular, midgrade, or premium) in that area. The prices are updated every 48 hours or sooner. It's amazing how sometimes the price of gas in Miami can fluctuate almost forty to fifty cents a gallon. I have been using this tool for the last few weeks and have been able to save ten to fifteen dollars a week. That might not sound like a lot, but it works out to about $700 a year. Here are some common sense tips that I am almost embarrassed to tell you, but just in case . . . .

1. Don't drive ten miles out of the way to save money on the price of gas. Obviously if you do
   this, you won't be saving any money.
2. Don't wait until you are almost empty to fill up. If you do this, you will be limiting your choices and may have to pay more than you have to.
3. If you are going to be running errands, this would be the best time to check for the cheapest gas station that is close to where you are going.
4. Last but not least. If you are waiting in a long line for gas, DO NOT LEAVE YOUR CAR RUNNING and burning gas. Instead just roll down your windows, turn your car off, and wait.

Hopefully the price of gas will start to go down again one day soon. But until then, please go to my website at www.DadeCountyMLS.com and use my "cheapest gas" saving tool. Better yet, use the tool from now on even if prices do go down.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Memorial Day

Did you know that Memorial Day was originally known as Decoration Day because it was a time set aside to honor the nation's Civil War dead by decorating their graves? It was first widely observed on May 30, 1868, to commemorate the sacrifices of Civil War soldiers, by proclamation of General John A. Logan of the Grand Army of the Republic, an organization of former sailors and soldiers.

I have extreme respect for those who serve or have served in our military and for those who have fallen in order to keep our country the great country it is today. Have a safe and happy Memorial Day, and let's never forget those that have given us the ultimate gift - their lives.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

National Missing Children's Day

On Sunday, May 25th, it is National Missing Children's Day. I urge you to please make the effort to sit down with your kids for at least 25 minutes today and go over different ways they can be safer. The website www.Take25.org has many great tips, discussion guidelines, and activity ideas to help prevent the unthinkable. Thank you so much and enjoy the holiday weekend.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Miami Home Buyer Assistance Programs

Many people have heard that there are programs available today that assist people in Miami interested in purchasing a home. Some of these programs include closing cost assistance, down payment assistance, reduced rate mortgages, and relaxed qualification mortgages. Every year (or quarter) there is a budget for these programs. Even though there are millions of dollars given away each year, once the money is used, that program is no longer available for that time period.

Until recently, it was very hard to find an easy to use website that would show what someone could potentially qualify for. The website below is extremely easy to use. Once you get to the homepage, click on "Search Assistance Programs." From there, just follow the menu and within twenty seconds you will know what programs you qualify for.

Miami Home Buyer Assistance Programs

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Six South Florida Schools Among Nation's Top 100

Newsweek magazine named six South Florida schools among it's list of the nation's top one hundred schools. Three were from Dade County and three were from Palm Beach County. Interestingly enough, Broward County, which has received numerous national awards in recent weeks, did not have any schools that ranked among the top 100. Please click on the link below to read all the details.

Newsweek Magazine's Top 100 Schools

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Fannie Mae Does Away with Higher Downpayment Requirements

Today it became a little bit easier for home buyers in many parts of the country to qualify for a home loan. In December, Fannie Mae (the government-sponsored mortgage finance company) made a policy that required higher downpayments for buyers applying for a loan in a zip code with declining real estate prices. Today that policy was changed to no longer require buyers in declining real estate markets to put a greater down payment than buyers in stabilized real estate markets. To get more details on this big benefit for our South Florida real estate market, please click on the link below.

Lower Down Payment Requirements Story

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

What to Do After a Car Accident

This post on my blog has nothing to do with real estate, but I thought it would be beneficial for all of us. A friend of mine sent me this story on what to do after a car accident. Even though most of us have a good deal of common sense, when an accident occurs, sometimes we are shaken and don't think the same way. Please read the story below, and I would strongly suggest printing it and keeping it in your car's glove box just in case.

What to Do After a Car Accident

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

How to Save Drastically on Your Homeowner's Insurance for Free

Every few days or so I post some information relating to our real estate market. I always hope that the stuff I’m posting has some sort of value to you. However, there are times that I am not really sure. On this post, I’m 100% sure that the information I am telling you will be very valuable to you. The main reason is that it can potentially save you thousands on your home owner’s insurance.

If you have a single family home and have a homeowner’s insurance policy with wind storm protection, you should qualify. Before I get into telling you what you need to do, I’ll give you some real world examples of the savings you may get. My friend’s insurance policy went from approximately $4000 to $800. Another one of my friends, who also had an insurance policy that
cost close to $4000, got reduced to $2000. One other person that I know had has insurance policy go from $2100 to just a little bit over $1000. Unfortunately another person that I know wasn’t able to save anything.

So how do you get these savings? There is a little known government program called, My Safe Florida Home. The website, www.MySafeFloridaHome.com, has all the information. Once you go to the website, click on I WANT TO APPLY FOR A WIND INSPECTION. The wind inspection is free. Just fill out the form. Once your home is inspected, you will receive an inspection report that you will show to your insurance company. The report will have recommendations on work you can do to your house that will make it more hurricane proof. You can do nothing and show the report to your insurance company or do the work and get a bigger discount from the insurance company. The friend I mentioned about earlier whose insurance went down to $800 DIDN’T make any improvements. He just showed the form to his insurance company.

If you feel more comfortable speaking to someone on the phone rather than using the internet, you can call 1-866-513-MSFH (6734) and wait for the part that mentions about the free wind inspection.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

The Changing Home Equity Loan

Only a year ago, it was incredibly easy for anyone with half decent credit to get a home equity loan on 100% or more of the equity that they had in their home. Today things have changed tremendously. Banks aren't loaning anything close to the 100% equity in the past, the loans are a lot harder to qualify for, and the default rates on these home equity loans have gone up over 700%. For more details on today's changing home equity loan, please click on the link below to view an article from the Miami Herald.

The Changing Home Equity Loan

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Fighting Back Against Identity Theft

Nearly nine million Americans have their identities stolen per year. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn’t make—or until you’re contacted by a debt collector.

Unfortunately, I am all too familiar with identity theft. In my case, I was pretty lucky compared to most others whose identity was stolen. In three separate cases within eight years, someone charged thousands of dollars on my debit card and once on my credit card. Once the person was purchasing something in Europe, once in New York, and once in Orlando. So it's really hard to figure out where the thief gets the information.

The Federal Trade Commission (FTC) has a website that shows you how to avoid identity theft and also what to do in case your identity was stolen. Click on the link below to enter their site.

FTC Identity Theft Website

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

More Information on Short Sales

Below is some more information on short sales. The story is from MSN and gives you a real good idea about short sales through out the country.

More Information on Short Sales

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Another Way to Sell Your Home Quickly

It is no secret that the real estate market is a lot slower now than it was a couple of years ago. Homes are taking much longer to sell, if they sell at all. I often get asked by home seller's if I know of any other ways, besides the standard ones, to help sell a home quickly. There definitely is one that I have used many times in the past that has been very successful.

Attracting buyers is always the name of the game in any market. That’s why using a special financing program works so well. Basically it’s an interest-rate buy-down program with built-in marketing support that is designed to attract more buyers by making seller's properties more affordable. So what does that mean? The seller is offering a special low interest rate for potential buyers. Because the home is advertised that way, it opens more doors for the seller's Realtor to establish relationships with buyers seeking a bargain.

In short, using a special financing program is a great way for home sellers to sell their homes quickly. It attracts more buyers because it reduces the buyer's monthly mortgage payment and differentiates the seller's property from other homes on the market. There are some complexities to it, so I would only recommend using someone experienced in this type of marketing.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Top 10 Seller Short Sale Questions and Answers

Short sales are becoming more and more prevalent in our real estate market. For those of you that aren't sure what a short sale is, a short sale is the sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. Each short sale case is different and determined on a case by case basis by the seller's lender.

Below is an article by Tim and Julie Harris, founders of Harris Real Estate University, on the top ten seller short sale questions and answers.

Number 10
I can't make my house payments, but I do have an ability to pay back all or part of the negative equity. Also, I want to preserve my credit score...is a short sale right for me?

Probably, not. In cases where the seller can pay back all or part of the negative equity (usually to the 2nd lien holder), it makes sense for them to work out a repayment plan. The lender will then release the lien and allow the home to close.

Number 9
If I pay mortgage insurance and default on my loan, why wouldn't that cover the deficiency amount?

The mortgage insurance is not there for your protection, just the mortgage lender's.

Number 8
Do I have to have my home "Approved" by the lender prior to offering it for sale as a short sale?

No. Technically speaking there is no such thing as being "Short Sale Approved." The actual approval only happens with an accepted offer.

Number 7
I just missed a payment and I know I will miss more...how long does the foreclosure process take and is there time to do a short sale?

The foreclosure process takes differing times depending on your state. In the Midwest a foreclosure can take over a year. In California it's taking six plus months. Generally speaking a well priced short sale being processed by an educated short sale listing agent will sell and close in less than 120 days.

Number 6
Will I still have to pay property taxes if I do a short sale?

Property taxes will always have to be paid as part of any accepted short sale. Whether it's you or the lender, it depends on their policies and the specific agreement you reach while negotiating the short sale.

Number 5
I owe more than my home is worth and I can't make the payment. Do I have to somehow qualify for a short sale?

The simple answer is NO. If someone can't make their payment and they are otherwise insolvent, they qualify for a short sale. Note: insolvent simply means their total debts are great than their assets.

Number 4
Do I have to pay income taxes...I have heard that I will get a 1099. Will the loss the bank takes be treated as a taxable gain to me...the seller...is this true?

It WAS true, now it's not. Consult your Tax Attorney or Qualified CPA. Very recently the tax law was modified and now most people who do a short sale will have no taxes due.

Number 3
How does the Realtors commission get paid?

The bank will pay the commission along with all the other usual closing costs.

Number 2
Do I have to miss a payment to do a Short Sale?

No. Late last year most major lenders started accepting short sale offers from sellers who have never missed a payment.

Number 1
I want to do a short sale and have a 2nd mortgage, does this make me ineligible?

No. Both of your lenders will need to be satisfied in some way to complete the short sale. If your first lender will be paid off by the sale, then you just negotiate the terms with the second lender. Most short sales do involve 1st and 2nd lien holders.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

890 Lives Could Be Saved

According to the National Fire Protection Association, an estimated 890 lives could be saved each year if all homes had working smoke alarms. So, please take a moment to change the battery in your smoke detector.

Then we can all enjoy the summer.

All the Best,
Amit

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Most Cost Effective Improvement to Your Home

With today's declining real estate market, I often get asked by sellers the following question - What is the most cost effective improvement to their homes? Basically the least expensive thing to do to their homes to get the most in return from buyers. The greatest "bang for the buck" has always been to paint the home. It should be in a neutral color so it won't turn off any potential buyers. The link below is to a story that has many painting tips from the pros. It is definitely worth spending three to five minutes to read it.

Painting Tips Story

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

New Good Faith Estimate Form

When home buyers are comparison shopping different lenders (mortgage brokers, credit unions, banks, etc) for their mortgage, their potential lenders will give them something called a "good faith estimate" form. The idea behind the form, to help the buyers comparison shop different lenders with the terms of the financing, was very good, but in reality, the form was very difficult to understand. The US Department of Housing and Urban Development proposed a new borrower-friendly Good Faith Estimate. An article from Inman News (below) goes into further detail about it.

New Good Faith Estimate Form Article

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

South Florida Home Prices Fall Again

Below is a quick update on the South Florida real estate market in an article in the Miami Herald today. Please click on the link below to read the story.

South Florida Home Prices Fall Again

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

More Foreclosure Tips

Here are some more foreclosure tips that I saw in the Sun Sentinel. Please read their story below.

What to do if you're put on notice?

If a lender puts you on notice -
Homeowners have many options after a lender has filed a foreclosure notice. Foreclosure specialists advise:

*Don't ignore mail from your lender; stay in touch even after a foreclosure notice has been filed. Most lenders would rather work out options than foreclose on a home.

*Beware of foreclosure companies calling themselves "mortgage consultants" or "foreclosure services" promising to save your credit or pay the closing costs. Be wary of deals that take over ownership of your home.If you turn to a foreclosure rescue firm, be aware such companies do not need a state license to operate in Florida unless the business is selling or buying properties.

*Never transfer your property deed or title to a rescue firm. Never sign a contract under pressure and without legal advice. Do not pay your mortgage payments to someone other than your lender.

For more information
Contact the Department of Housing and Urban Development to request an approved housing counseling agency: 800-569-4287 or hud.gov.

For legal help, contact the National Association of Consumer Advocates at 202-452-1989 or go to naca.net; the Florida Bar floridabar.org.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

How Do I Save My Home?

How do I save my home? It seems like I get asked this question a million times now days. Unfortunately because of many different reasons - a change in the adjustable rate on your mortgage, the economy, loss of job, the depreciating real estate market, etc - people are losing their houses at record paces. In fact, I read a couple of weeks ago in our South Florida real estate market, that for every home sold, there are six foreclosures. Ok so enough of the bad news. What can someone do to save their home?

The US Department of Housing and Urban Development (HUD) has a website that tells homeowners what they can do to save their homes. Please click on the link below to read the information.

How Do I Save My Home?

All the Best,
Amit

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Is Your Landlord Paying His Mortgage?

Landlords have always asked potential tenants about their financial situation. But with today's changing real estate market in South Florida, tenants are advised to do the same with their potential landlords.

I read a really good article in the Miami Herald about this. Please click on the link below for the story.

Is Your Landlord Paying His Mortgage?

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

What Really Matters?

What really matters? That's something many people, including myself, lose focus on lots of times. A friend of mine the other day was kind enough to send me something that quickly put everything into perspective. Although I had seen it before, it was just as powerful as the first time I saw it. If you have a few minutes to spare, please click on the video below. I hope it has the same impact on you as it had on me.

What Really Matters? (video)

Thanks,
Amit

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

The Latest Foreclosure Statistics

I read an article today in the Miami Herald today that I thought you might be interested in. Please read it below.

Florida and California, states with significant investor speculation and overbuilding during the real estate boom, helped push the percentage of homes entering foreclosure nationwide to record highs, an industry group reported Thursday.

Together the two states had 21 percent of all outstanding loans but were responsible for 30 percent of new foreclosures in the three-month period ending Dec. 31, according to numbers released by the Mortgage Bankers Association.

In Florida, 10.69 percent of borrowers with first lien home loans were behind on payments or in foreclosure, compared to 7.86 percent nationwide, the report said.

The percentage of new foreclosures in the state rose to 5.19 percent from 3.52 percent in the previous quarter, driven by a large percentage of defaults among subprime borrowers who got loans despite shaky credit.

More than 17 percent of all subprime loans entered foreclosure in the fourth-quarter, compared to just 2.66 percent of prime loans.

MBA economist Doug Duncan said the state's foreclosure problems were the result of interest rates resetting on adjustable-rate loans coupled with falling home prices.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Are Foreclosures Good Deals?

Foreclosures. That's what we all here so much about now days. Being a Realtor, I get asked all the time to find foreclosures for home buyers. But how good a deal are foreclosures? The simple answer is, it depends. Because so many people in the past bought homes with zero downpayment or very little down payment, the amount of money owed on the majority of these foreclosed homes is significantly higher than what they are worth. Most banks aren't willing to lose hundreds of thousands of dollars to get rid of their inventory. Many of them simply can not afford to right now. There are times when some of them can, and those are the times when people get a good deal on a foreclosure.

With so many homes on the market that aren't foreclosures, there are just as many great deals within these group of homes for sale. There are still a huge number of people that have lived in their homes for many years. These homeowners still have a great deal of equity, and many of them are in position to offer an incredible deal to a potential buyer to make their home stand out from all the competition. So how does someone get the best deal in today's real estate market? The answer is the same as it has always been - speak to an experienced Realtor with knowledge in the area you are interested in.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Top 10 Reasons It's a Great Time to Buy Real Estate NOW!

Now days many people feel that it is a terrible time to purchase real estate. It is actually quite the opposite. Please read the article below by Paul Pastore that lists the top ten reasons why it's a great time to buy real estate today.

1. Selection, selection, selection. There are about 57,000 resale homes on the market in Maricopa county(Phoenix). Regardless of the price range a buyer desires, there are plenty of houses from which to choose. Just a few years ago the resale inventory dropped below 5,000 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of attached homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
   
   
2. No Bidding Wars. In 2005 we had one client that made an offer on ten homes. They lost the first nine to the 'feeding frenzy' that existed. Other buyers bid the properties up substantially from the original listing price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
   
   
3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ration is about 90%. A seller will not be insulted if you 'make them an offer they can't refuse'.
   
   
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about your decision for a few hours.
   
   
5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
   
   
6. There are plenty of specs. In the not too distant past buyer had to 'play games' if they wanted a new home. There were lotteries and waiting lists in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. R.L. Brown estimates that builders have thousands of specs ready for immediate occupancy.
   
   
7. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
   
   
8. Few, if any investors. It is estimated that one third of all sales in 2005 were to investors. These non-owner occupied buyer caused the market to inflate and affordability to decline. Mortgage fraud became commonplace. It's a great time to buy without having to compete with hundreds of prospective landlords.
   
   
9. Location, location, location. Today's buyers can find homes closer to work. In the past buyers flocked to Maricopa and Queen Creek in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to schools, rapid transit lines, and relatives.
   
   
10. Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back in business. It's a great time to buy real estate!
    

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Real Estate Market Update

The most accurate gauge of home values, in my opinion, is the S&P/Case-Shiller US National Home Price Index. The S&P/Case-Shiller Home Price Indices measures the residential housing market, tracking changes in the value of the residential real estate market in 20 metropolitan regions across the United States. These indices use the repeat sales pricing technique to measure housing markets. First developed by Karl Case and Robert Shiller, this methodology collects data on single-family home re-sales, capturing re-sold sale prices to form sale pairs. This index family consists of 20 regional indices and two composite indices as aggregates of the regions. The S&P/Case-Shiller Home Price Indices are calculated monthly and published with a two month lag. New index levels are released at 9am Eastern Standard Time on the last Tuesday of every month.

The study only does research on single family homes, NOT condos or townhouses. Below is a story from REUTERS news on today's report that was released. Keep in mind that when you are reading the report, there are still a tremendous amount of opportunities in South Florida's real estate market due to the exceptional prices and historically low interest rates.

Home prices accelerated to a record pace in the fourth quarter of 2007, with prices plunging 8.9 percent last year, according to a national home price index released on Tuesday. The quarterly drop in prices of existing single-family homes quickened to 5.4 percent in the final three months of last year from a 1.8 percent drop in the third quarter. Miami, remained the weakest market, reporting a double-digit annual decline of 17.5 percent, followed by Las Vegas and Phoenix at a 15.3 percent drop each. The three cities boasted of some of fastest rising home prices in 2006.

Charlotte, North Carolina, Portland, Oregon and Seattle were the only three metropolitan in the indexes where prices rose in 2007. Seattle, however, came in at only 0.5 percent, an almost flat growth rate.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

How does the Fed’s rate cut affect us?

Mortgages, home equity lines of credit, auto loans, credit card rates, certificates of deposit, and money market accounts can all be influenced by changes is short-term interest rates set by the Federal Reserve. But don’t count on getting a lower interest rate; first, read the fine print in whatever contract you are signing. The only interest rate that will automatically drop is the federal funds rate, which is what banks charge each other on overnight loans.

Consumers are often confused when it comes to the subject of the Federal Reserve and how it affects mortgage interest rates. News coverage of the Fed can actually cause the confusion.

The Fed affects short-term interest rate maturities, the Federal Funds Rate, and the Overnight Lending Rate. These factors have a direct impact on the Prime Rate. However, it is a mistake to conclude that changes made by the Fed will cause a similar movement in the interest rates. Mortgage interest rates fluctuate with the market for mortgage backed securities, which trade on a daily basis, but are not widely published. Money to purchase mortgage-backed securities comes from overseas investors as well as domestic investors, and the flow of huge sums of monies to and from these securities is subject to competition from the stock market and complex economic and political influences.

A key (but not infallible) indicator for the movement of mortgage interest rates is the 10 year Treasury bond yield. It is widely quoted, and if it is heading up, you should be prepared to face higher mortgage rates. It fluctuates constantly, just like mortgage rates.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

New Tax Portability Calculator

Hi everyone. I wanted to thank all of you that helped pass Amendment 1, the real estate tax portability amendment. If you are unfamiliar with the amendment, please read my previous two posts with some written examples as well as a brief video overview.

The amendment is far from solving all the issues we have with the huge real estate tax problem in Florida. The main thing though is that it is a start and definitely can save many many people thousands of dollars each year. To see how the new amendment affects you, please click on the link below.

New Tax Portability Calculator

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Home Price Drop Hits a New Record Low

There was an interesting story on CNN's internet site that I thought that most of you would be interested in. The unedited story is below.

January 29 2008: 10:19 AM EST

NEW YORK (CNNMoney.com)

The housing market is only getting worse, according to the latest report from S&P Case/Shiller released Tuesday.

Home prices were down 8.4 percent in November compared with last year in its 10-city index, a record low. The 20-city index also fell 7.7 percent.

The Case/Shiller report compares same-home sale prices. The industry considers it to be one of the most accurate snapshots of housing prices.

Previously, the largest year-over-year decline on record was 6.3 percent in April 1991. The November report marked the 11th consecutive month of negative returns for the index, and twenty-four months of decelerating returns.

Cities In Trouble

"We reached another grim milestone in the housing market in November," said Robert Shiller, Chief Economist at MacroMarkets LLC and co-creator the index in a statement.

"Not only did the 10-city composite index post another record low in its annual growth rate, but 13 of the 20 metro areas, each with data back to 1991, did the same."

The worst hit market of the 20 metro areas covered was Miami, where the median home fell a whopping 15.1 percent in value. San Diego prices also fell steeply, down 13.4 percent. Las Vegas was off 13.2 percent and Detroit by 13 percent.

Three cities did emerge with higher prices compared with 12 months ago: Prices rose 2.9 percent in Charlotte, N.C., 1.8 percent in Seattle and 1.3 percent in Portland, Ore. But even these markets have turned down over the last three months. Indeed, every city in the index recorded at least three consecutive months of falling prices through November.

The three biggest U.S. cities also recorded year-over-year declines; New York was down 4.8 percent, Los Angeles 11.9 percent and Chicago 3.9 percent. The losses in Los Angeles accelerated in November; that city recorded the largest month-over-month drop of any index city, 3.6 percent.

Tuesday's report came in the wake of many other surveys indicating that the housing market is getting worse. Foreclosure filings and the risks of future foreclosures were both up sharply; the number of new homes sold plunged more steeply than any year on record; and the pace of existing home sales fell to their lowest level in 27 years.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Real Estate Tax Cut Amendment Video Explanation

Below is a link to a video with an explanation on the real estate tax cut amendment, Amendment 1, that people will have a chance to vote on, Tuesday, January 29th. If you would like a more detailed explanation in writing, please view my previous blog, Property Tax Cut Amendment.

https://www.cbflorida.com/public/Video/VoteYesOn1.wmv

I hope the two blogs answers all the questions you may have had on this somewhat confusing amendment.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

How to Prepare Your Home for Sale

Things you can do to ensure your home's exterior lands favorable first impressions:

• Stay on top of your lawn mowing and maintenance and tidy up your front landscaping.
  
• Plop a new, colorful welcome mat in front of the door.
  
• Embellish your door area with a nice, big potted plant to the side of the front door.
  
• Slap a fresh coat of paint on your door.
  
• Move all the toys, bicycles, and scooters away from the front of the house.
  
• Clean all your windows until they're sparkling.
  
• Invest in a new doorknob and lock - this will jazz up your door and provide greater security.
  
• Make sure your street numerals are polished and in place. Or, invest in a nice new set that stands out among your neighbors' standard numerals.
  
• Place a seasonal wreath or arrangement on your door.
  
• Repair any loose shingles - the last thing a potential buyer wants to worry about is the roof.
  
• Paint and repair your gutters.
  

Once the exterior wows your potential buyers, you'll need to continue to make an impact on them when they make their way inside. You can almost think of it as preparing for a formal dinner party. For starters, you can:

• Remove all the clutter - make sure kitchen and bathroom countertops are as clear as possible, try to keep toys organized in closets and shelves, temporarily remove any excess knickknacks or family photos if you tend to have a lot.
  
• Hang fresh clean towels in the bathrooms.
  
• Touch up your paint if your walls have a few rough spots. You probably already have the extra paint sitting in your garage.
  
• Vacuum your floor each morning. You may also want to think about getting your carpets clean before potential buyers view your house.
  
• Make sure all your faucets are drip-free.
  
• Replace any nonfunctioning bulbs in your light fixtures and vanities.
  
• Thoroughly clean all your appliances, including the inside of your oven and microwave.
  
• Place a beautiful centerpiece in the center of your dining room table.
  
• Eliminate odors as much as possible - place potpourri in the bathrooms, use air freshener and deodorizer, especially if you have indoor pets or there's a smoker in the house.
  
• Let the light in - open all your blinds and curtains. If your house's natural light leaves some rooms dark during certain portions of the day, turn on the lights if you know your house may be shown that day. If you have any decorative or track lighting, be sure it is on.
  
• If you have too much furniture, place some of it in storage.
  
• Add some final touches, a couple of fresh bouquets of flowers and some nice potted plants in decorative containers can do wonders.

Basically, just use common sense. Remember that everyone has his or her own style. You're not trying to impress with your particular brand of décor. Rather, you're trying to present a simple, clean, attractive home that exudes potential - an empty, yet enticing, palette for your home's next owners.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Property Tax Cut Ammendment

I’m not sure if you are going to vote on the 29th of this month or not, but a lot of people have asked me about the benefits of the real estate amendment. If you are interested in this information, please read the explanation below.

What are the Basic Facts on Amendment 1?

Passage of this amendment is critical to the future of Florida and it will put money back into the hands of most Florida property owners.

1) The property tax cut plan on the January 29 ballot would save taxpayers nearly $10 billion over five years.

2) Floridians have the power to cut property taxes by voting 'Yes on 1' on January 29, 2008.

3) Property taxes have doubled in the past six years, outpacing the average growth of homeowner’s salary.

4) Local governments have used their increase in revenues to greatly expand their budgets and reserves, instead of returning it to Florida’s families and small businesses.

What are the key benefits of Amendment 1?




Where Can I Get More Information on Amendment 1?
For more information about Amendment 1, visit: www.YesOn1Florida.com.

How Will Floridians Gain Property Tax Relief?

With the passage of Amendment 1, citizens will gain the freedom to purchase a new home without huge tax penalties, and rental home owners, second home owners and businesses will benefit by limited future tax increases. The amendment contains two provisions: doubling the homestead exemption and portability of the Save Our Homes tax benefit.

1) Double the homestead exemption for almost all homeowners, providing an average savings of about $240 annually. The new exemption applies fully to homesteads valued over $75,000 and partially for homesteads valued over $50,000. This new exemption does not apply to school taxes.

2) Allow portability: The Governor has heard from many constituents that they feel trapped in their homes. Portability will allow homeowners to transfer their Save Our Homes tax benefits from their old home to a newly purchased home. Portability applies to homes purchased in 2007 and later, and the benefit is capped at $500,000.

How Does Portability Help People Who Want to Move?

Amendment 1 benefits those who want to move into a different home, seniors seeking to downsize, and business owners facing rising property values.

Looking for a larger house?

If you bought a house for $95,000 in 1995 and its current market value now is $300,000 and the assessed value is only $150,000-- you could transfer the full $150,000 difference to buy a more expensive home.

If the purchase of your new home costs $400,000, you would be paying about $6,300 in taxes without portability. But with the tax savings from Amendment 1 including the Save our Homes portability and the double homestead exemption, the new annual taxes would be about half or $3,600.

Want to downsize?

Under the new tax plan, portability also will apply if you want to move to a less expensive property. Instead of transferring the difference, your transfer will be your existing Save our Home percentage.

For example, if you live in a $300,000 house with an assessed value of $150,000, you pay taxes on $125,000 or about $2,100. If you wanted to move to a $200,000 condo the savings will be significant.

In this case, you would bring 50% or $100,000 in savings that reduces your assessed value to $100,000 on the new property. With the newly increased $50,000 homestead exemption from Amendment 1, the taxable value for all local government taxes other than school taxes would fall to $50,000. The new total annual tax bill would be about $1,000 or about half of the old tax bill.

Do you live in a mobile home?

More than 1.1 million Floridians currently live in mobile home or manufactured housing parks and communities. Currently, if you live on a leased lot in a park or community, you are paying tangible personal property taxes on your porches, sunrooms, storage rooms, and carports. With the passage of Amendment 1, you will have an exemption up to $25,000…so most of you will no longer pay this tax at all!

Comparison chart



How would Amendment 1 help rein in local government spending?

Amendment 1 isn't just about cutting taxes. It is about controlling government spending. It is a reality check for local governments that feasted on escalating property values over much of the past decade instead of lowering tax rates. As property values rose, tax collections soared. Levies doubled between 1997 and last year, including 42 percent in just three years. Property taxes grew three times faster than growth in population and inflation combined. Even after lawmakers approved a rollback of the tax rate last year, almost half of Florida's cities and counties set their rates higher. Others raised fees for services, like fire protection, that should be paid for through property taxes.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Mortgage Forgiveness Debt Relief Act of 2007

On December 20, 2007, a new bill amending the IRS tax code (HR 3648) was signed into law. This new law is known as the Mortgage Forgiveness Debt Relief Act of 2007 and it was enacted to help distressed homeowners who must either sell their homes or face foreclosure. The new law reverses the longstanding IRS position that debt forgiven by a lender during a pre-foreclosure sale would be classified as imputed (i.e. taxable) income to the homeowner. Removing this tax consequence should allow more distressed homeowners to sell their properties prior to foreclosure and increase our chances of capturing this business. The following are some highlights of the new law:

1. It is a retroactive and temporary change to the tax code, mortgage debt forgiven by a lender between January 1, 2007 and December 31, 2009 will not be deemed taxable income to the homeowner. (must still report it to the IRS)
2. It does not apply to investors; it only applies to taxpayers' principal rsidences that they have occupied for two or more years.
3. The mortgage debt forgiven will only be the "acquisition indebtedness", the sum total borrowed for the acquisition of the property. Refinances of this debt would also qualify, but only up to the total amount borrowed to purchase, and in some cases to substantially improve, the property.
4. A maximum of two million dollars of mortgage debt may be forgiven.

Since every case is different, please check with your attorney and CPA to see if you qualify.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com

Happy New Year!!!

Happy New Year everyone! It's amazing that yet another year has passed and it's already 2008. Before going any further, I want to thank all of you so much for everything you do. I really appreciate it. If you are a regular reader of this blog, I'm sure that you know that at least ninety percent of it is real estate related. Every once in a while I come across something that has nothing to do with real estate that I would like to share. Since it is the beginning of a new year, I felt it was an appropriate time to share a quote from George Carlin. Yeah, you did hear me right, George Carlin the sometimes obnoxious comedian. It is pretty long, but I hope you enjoy the quote below.

The paradox of our time in history is that we have taller buildings but shorter tempers, wider Freeways , but narrower viewpoints. We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.

We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.

We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.

We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.

We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.

These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes. These are days of quick trips, disposable diapers, throwaway morality, one night stands, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stockroom. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...

Remember; spend some time with your loved ones, because they are not going to be around forever.

Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side.

Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.

Remember, to say, 'I love you' to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you.

Remember to hold hands and cherish the moment for someday that person will not be there again.

Give time to love, give time to speak! And give time to share the precious thoughts in your mind.

Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com