Kitchens of the Future

Hi everyone. I hope all of you are doing well. I read an article the other day that I thought you might find interesting. It was an article that was on appliances and kitchens of the future from a website called CNET. In case you aren't familiar with the website, CNET is a technology website that has product reviews, products of the future, and many other technology related things. It is one of my favorite websites. If you are interested in the article, please click on the link below.

http://www.cnet.com/2001-13654_1-0.html?tag=nl.e729

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

Short Sales and Foreclosures

In today's constantly changing real estate market, I am constantly being asked about short sales and foreclosures. Most people want to know if I do them, and others want to know what all the hype they hear about them is about. I do work the foreclosure and short sale market, but it is a very complicated market. To make things a little bit easier to understand, I will first define what a foreclosure and a short sale are and then tell you the pros and cons of each.

A foreclosure is the legal process reserved by a lender to terminate the borrower's interest in a property after a loan has been defaulted. When the process is completed, the lender may sell the property (usually at an auction) and keep the proceeds to satisfy its mortgage and any legal costs. Any excess proceeds may be used to satisfy other liens or be returned to the borrower. Not that many years ago, purchasing foreclosure properties and reselling them was a highly profitable business if done CORRECTLY. Today it is much harder to make money with foreclosures. The main reason is that many people that are being foreclosed on owe more money than what their properties are worth. In the past, most people owed less than the market value of their homes because of larger down payments. Because of that, many buyers at the auctions perceived value in those homes being sold. Today things are much different. Most of the properties for sale at auction are worth far less than what is owed on them because of smaller downpayments, multiple loans on a property, as well as declining prices in today's real estate market.

So what is the definition of a Short Sale? A short sale occurs when a property sells for a price that is insufficient to pay back the loan(s) secured against it (or any other liens against the property, such as delinquent propert taxes, Homeowners/Condominium Association Fees, etc.) as well as standard sales closing costs. In such a case, in order to complete the sale, the Seller, must either: (1) come to the closing with sufficient cash from other sources to cover these shortfalls; or, (2) the lender(s) must agree to forgive all or a portion of the amounts they are "short" or make other arrangements for repayment (such as execution of a promissory note). This second alternative is commonly known as a Short Sale. As a buyer, purchasing a home thru a short sale, if done CORRECTLY, can be highly profitable. If done incorrectly, there can be a huge loss in both money and time.

Short sales and foreclosures are being discussed more and more in today's real estate market. There is an opportunity to make a great deal of money if done correctly. But like I mentioned before, there is a greater opportunity to lose both money and time. This is mainly due to the extremely complicated process and tax consequences associated with them. I would highly recommend getting involved in foreclosures or short sales only if you are working with someone that is very familiar with the process.

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

Something a Little Bit Different

Hi everyone. I have been writing this blog for nearly two and a half years now, and I appreciate all of you that have taken the time to read my thoughts on many different things. I am amazed every month at how many people actually visit this site when I look at the statistics. The majority of the time I am writing about real estate. I do think that is important especially because I have knowledge on the subject. And, I love to provide information or help to those that are interested. But this post on my blog is something a little bit different.

I received an email today from a friend that made me feel really good and positive after reading it. For those who have never read it before, I hope it does the same for you.

Two men, both seriously ill, occupied the same hospital room. One man was allowed to sit up in his bed for an hour each afternoon to help drain the fluid from his lungs. His bed was next to the room’s only window. The other man had to spend all his time flat on his back. The men talked for hours on end. They spoke of their wives and families, their homes, their jobs, their involvement in the military service, where they had been on vacation. Every afternoon, when the man in the bed by the window could sit up, he would pass the time by describing to his roommate all the things he could see outside the window. The man in the other bed began to live for those one hour periods where his world would be broadened and enlivened by all the activity and color of the world outside. The window overlooked a park with a lovely lake. Ducks and swans played on the water while children sailed their model boats. Young lovers walked arm in arm amidst flowers of every color and a fine view of the city skyline could be seen in the distance.

As the man by the window described all this in exquisite details, the man on the other side of the room would close his eyes and imagine this picturesque scene. One warm afternoon, the man by the window described a parade passing by. Although the other man could not hear the band - he could see it in his mind's eye as the gentleman by the window portrayed it with descriptive words. Days, weeks and months passed.

One morning, the day nurse arrived to bring water for their baths only to find the lifeless body of the man by the window, who had died peacefully in his sleep. She was saddened and called the hospital attendants to take the body away. As soon as it seemed appropriate, the other man asked if he could be moved next to the window. The nurse was happy to make the switch, and after making sure he was comfortable, she left him alone. Slowly, painfully, he propped himself up on one elbow to take his first look at the real world outside. He strained to slowly turn to look out the window besides the bed. It faced a blank wall.

The man asked the nurse what could have compelled his deceased roommate who had described such wonderful things outside this window. The nurse responded that the man was blind and could not even see the wall. She said, "Perhaps he just wanted to encourage you."

Epilogue: There is tremendous happiness in making others happy, despite our own situations. Shared grief is half the sorrow, but happiness when shared, is doubled. If you want to feel rich, just count all the things you have that money can’t buy. "Today is a gift. That is why it is called The Present."

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

Today's Mortgages

Now days besides all the questions I get about our South Florida real estate market, I'm getting more and more questions daily about mortgages. So hopefully the following information will give you a little better understanding of this topic.

When the real estate market was extremely hot a few years ago and property values were going up sometimes twenty to thirty percent a year, banks and mortgage companies were very aggressive and lenient on their lending requirements. It wasn't uncommon to see investors with loans outstanding that equaled sometimes ten to fifteen times their yearly income. The main reason for this was mortgage fraud. South Florida is the mortgage capital in the United States. Because of so much fraud taking place, there have been approximately seventy percent more foreclosures in Dade County this year compared to last year.

So how does this affect you? It makes things a lot more difficult in order to get a loan. Just two years ago, if someone had average credit and very little money for a downpayment, it was extremely easy to get a mortgage - with very very little documentation. Today someone with excellent credit, a good downpayment, and even a previous relationship with a bank, a lot more documentation is necessary. In fact, since things have been changing so much in the mortgage industry, a lot of people that were approved a couple of months ago are now no longer able to get loans. That is why it is now more important than ever to do business with a bank or mortgage company that you hear good things about from family, friends, co-workers, business associates, etc. Below are most of the things needed for a home loan application. Since many banks are different, other things may be necessary.

1. Two years residence history
2. Two years employment history
3. Two years W-2s and current pay stubs
4. If self-employed, two years tax returns
5. Most recent two months bank/investment statements for all accounts
6. Current loans/debts listing names, addresses, account numbers, payments, and balances
7. Loan information on other owned real estate
8. Purchase agreement/offer to purchase new home or property

Finding a home and a loan are becoming more and more complicated in today's changing real estate market. Therefore, it is very important that you choose the right person to help you with probably the biggest purchase of your life.

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

Sun Sentinel Tax Calculator

There has been so much talk lately about homeowner's taxes and what effect the new legislation will have on everyone. It is very complicated to say the least. The Sun Sentinel newspaper recently created a tax calculator to help you figure out just what effect the taxes will have on you as well as a very comprehensive question and answer segment. Please click on the links below to determine how you are effected.

http://www.sun-sentinel2.com/taxCalc/

http://www.sun-sentinel.com/news/legislature/sfl-flftaxqa0627nbjun27,0,2844865.story?coll=sns-newsnation-headlines&track=mostemailedlink

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

Hurricane Season 2007

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. I did plenty of research to find the best information I could provide you and found it on a web page from the Miami Herald. Please click on the link below to view it and save it as one of your favorites or links on your computer for easy access in the future. Try and not wait until the last minute to be prepared, and always remember that I am only a phone call away. I'll do whatever I can to help in times of need.

http://www.miamiherald.com/storm/

If you want a printed copy with all the information, please contact me and I will send you one at no cost.

Take care and be safe,
Amit

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

Latest Property Tax News

The Florida Association of Realtors(R) just reported that the
Legislature has adjourned Sine Die at 6:28 pm today bringing
the 2007 Special Session on Property Tax Reform to a close.
Both the House and Senate passed all three bills making up
the property tax reform package. The package includes a
statutory rollback and cap of property tax rates, a proposed
constitutional amendment creating a "super homestead
exemption" and a bill designating the upcoming January 29,
2008 presidential preference primary as the date for Floridians
to vote on the "super homestead exemption" amendment.

Below is some additional detail on what is included in the
final deal. They will continue to work on reforms that we
consider the top priorities such as "highest and best use."

The agreement consists of a two-tiered approach to achieve
immediate relief and long-term reform. The combined
elements of the plan offer $31.6 billion in tax relief over the
next five years. This is touted by House and Senate leaders
as by far the largest tax cut in the history of Florida.

1. The Statutory Component - Immediate Tax Relief

Cities and counties must lower their tax rates a certain
percentage based on their past taxing conduct. This component
of the plan offers $15.6 billion of tax relief over five years,
with savings beginning this year. The statutory component
affects all properties in a positive way (homestead, non
homestead, commercial).

· First, all cities and counties must adopt the rolled-back rate
for the coming fiscal year. In other words, tax levies for
FY 2007-08 must be equal to tax levies for FY 2006-07,
excluding taxes levied from new construction.

· After adopting the rolled-back rate, the bill requires each city
and county to further reduce taxes based on their recent taxing
history (from 2001 to 2006, the period in which property values
rapidly increased). To delve into this further, there will be five
tiers. Between 2001 and 2006, if a County had an average
annual tax levy increase of a certain percentage then they'd have
to roll back a certain percentage more. So, if their tax increase
was below 5% the cut is 0; over 5 to 7% tax increase the cut is
additional 3%; over 7 to 9% tax increase the cut is 5%; over 9%
to 11% the cut is 7%; and over 11% tax increase the cut is an
additional 9%. The City cuts are similar. The bottom line is
that those counties and cities that increased taxes at a faster
rate than the statewide average must offer larger tax cuts.
Those that modestly increased tax levies will in turn sustain
smaller tax cuts.

· Beginning in 2008-2009 and every year thereafter, the bill
requires all local ad valorem taxing authorities except school
districts to set millage rates in accordance with the rolled-back
rate, adjusted by the annual growth of Florida personal income.
A local governing authority may override this cap requirement
by guidelines setforth in statute.

2. The Constitutional Component - Long-term Reform

The constitutional amendment cures the inequities in the
property tax system by transforming Save Our Homes through
a new "super" homestead exemption. The new exemption
covers 75% of the first $200,000 of homestead value and 15%
of the next $300,000, with all homesteads receiving at least
a $50,000 exemption. Current homestead owners will be given
a choice as to whether to keep their benefits and assessment
cap under Save Our Homes or to use the new super exemption.
The bill also authorizes a $25,000 Tangible Personal Property
exemption and allows targeted relief for affordable housing,
low-income seniors, and working waterfronts. This component
offers $16 billion of tax relief.

3. The Special Election

This bill authorizes a special election for #2 above. Voters
will have the opportunity to adopt the proposed constitutional
amendment during the presidential preference primary on
January 29, 2008. If voters approve the amendment, it will
lower property tax bills in 2008. If the vote on the
constitutional amendment is delayed until the general election
in 2008, the reforms will not take effect until tax bills are
calculated in 2009.

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

National Missing Children's Day

Hi everyone. Today 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.

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

Remodeling Your Home - Cost vs Value

Today more and more people are remodeling their homes. With so many great deals for people looking to purchase homes now days, most people will buy a home and then completely remodel it. There actually was a study done not too long ago that shows what the relationship is between the actual cost versus how much value it adds to the house. Since upgrading different parts of a home have a different value in different parts of the country, the study took this into consideration. If you are interested in learning more about cost vs value, please click on the link below.

http://www.remodeling.hw.net/content/CvsV/CostvsValue-project.asp?articleID=381305&sectionID=173

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

Real Estate Taxes Reminder

Miami-Dade real estate taxes are due on March 31, 2007. Most people that have a mortgage for a home have their bank create an escrow account for them. Basically the mortgage company takes a portion of each monthly mortgage payment and puts it in an account to pay the real estate taxes when they are due. For those people that don't have a mortgage or those that don't have an escrow account set up with their mortgage company, their real estate taxes are due on March 31st, 2007.

Miami-Dade County gives a discount every year for paying real estate taxes earlier than the March 31st deadline. Tax notices are mailed on or before November 1st from the prior year to property owners. Below are the discounts available.


4% if paid in November
3% if paid in December
2% if paid in January
1% if paid in February
If paid in March, no discount applies

Real Estate Taxes become delinquent on April 1st of the following year in which they were assessed. As of April 1st, a three percent (3%) penalty is added to the gross tax amount due. Discounts do not apply to delinquent payments.

If you would like more information on this topic, you can go to the Miami-Dade County real estate tax link below.

http://www.miamidade.gov/taxcollector/property_tax_real_estate_payment.asp


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

Real Estate Market Update

Here's a quick update on the South Florida real estate market for the month ending December 2006.

Miami-Dade County Statistics for December 2006

• There were 630 single family homes sold.
• On average, the single family homes were on the market for sale for 89 days before a contract was accepted with an average sale price of $370,000.
• There were 11,340 single family homes for sale.
• There were 664 condos/townhouses sold.
• On average, the condos/townhouses were on the market for sale for 91 days before a contract was accepted with an average sale price of $260,000.
• There were 20,463 condos/townhouses for sale.

Broward County Statistics for December 2006

• There were 802 single family homes sold.
• On average, the single family homes were on the market for sale for 90 days before a contract was accepted with an average sale price of $371,000.
• There were 13,231 single family homes for sale.
• There were 868 condos/townhouses sold.
• On average, the condos/townhouses were on the market for 99 days before a contract was accepted with an average sale price of $205,000.
• There were 20,793 condos/townhouses for sale.

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

New Property Assessment Limitation Changes

I just received a very important piece of mail form the Miami-Dade County Department of Property Appraisal today. If you are like most people, you will quickly scan and throw it away without reading it carefully. If you do that, it may cost you thousands of dollars in the future. So for everyone's convenience I have copied it word for word below. Please read it carefully.

The law affecting property assessment limitations was changed this year. Beginning in the second year of a Homestead Exemption the assessed value of a property is limited to a 3% increase. This is still true. However there is a new exception to the Save Our Homes (SOH) assessment limitation law. If you add a new owner to your property and the new owner files for Homestead Exemption on your property, the new Law now requires the Property Appraiser to remove the assessment limitation even if the original owner still qualifies for the original Homestead Exemption. What this means to a homeowner is often substantially higher taxes. There are however, exceptions to this rule such as an addition of a husband or a wife.

Before you make changes to the ownership of your property, I recommend getting advice from your lawyer. If you have any questions about the changes in the law, you can call the Property Appraisal Department at (305) 375-4125.

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

South Florida Real Estate Market - Perception vs Reality

The real estate market in South Florida has changed tremendously in the last year. With so many different stories by the media and just listening to people talk about the market, it is very difficult to separate perception from reality. I hope after reading this, you will get a better understanding of what the facts really are in the Miami Dade County real estate market.

• In November 2005, there were 803 single family homes that sold in Miami Dade County compared to 635 that were sold in November 2006.
• In November 2005, there were 5,440 single family homes for sale compared to 11,618 for sale in November 2006.
• In November 2005, there were 1,102 condos that sold in Miami Dade County compared to 654 that were sold in November 2006.
• In November 2005, there were 9,055 condos for sale compared to 20,640 for sale in November 2006.

Although the sales have gone down in the Miami Dade County real estate market a great deal in one year, there are some places where things are definitely not as bad. In Kendall, South Miami, and Pinecrest sales are within a few of being the same as last year. So the actual amount of people looking to purchase homes (buyers) is approximately the same from last year to this year. The biggest difference in any area in Miami Dade County from last year to this year is the amount of properties available for sale. In most areas it has doubled if not tripled.

If you are interested in finding out the statistics for your area or are interested in selling your home and want to stand out from the crowd, please contact me.

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

Happy Thanksgiving

The holiday season is upon us and I would like to take a little time to give thanks to all of you. In my daily sometimes hectic life, I don't always get a chance to thank everyone that has made my life so much better. To all my family, friends, and people I do business with, thank you so much for everything. I really do appreciate everything you guys do. Have a safe and wonderful Thanksgiving!

Always wishing you the best,
Amit

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

Tips on Saving on Homeowner's Insurance in South Florida

The cost of homeowner's insurance in South Florida has gone up dramatically in the last few years. It is not uncommon for a policy to double or triple from one year to the next. Obviously because of this, many people can no longer afford the home that they are currently living in. A local television station in South Florida (www.nbc6.net) recently did a segment on ways of saving money on homeowner's insurance, in some cases up to 40%. Please click on the link below to view the segment. Please allow up to thirty seconds for the video to load.

http://www.nbc6.net/video/10288820/index.html

I hope this helps.

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