destin real estate

Brighter in Florida

Jun 24th, 2011
by edsmith.
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According to Florida Trend, the revenue at the 150 largest public companies and the 200 largest private companies in the state rose more than 8.5%, which is a reflection of the improving economic climate in Florida. The Florida Trend article went on to state that new home constuction continues to lag due to lower resale prices and “a glut of supply”. Of the 13 private companies showing the biggest drop in the rankings, 10 are real estate related.

Consistent with that assessment,  new construction simply cannot compete with resale pricing here in the Destin and Emerald Coast real estate markets. You can buy a great home today for much less than the replacement cost, i.e., cost of construction.

For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com  or email us at smith@realtor.com

Florida Population Still Growing

Jun 20th, 2011
by edsmith.
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According to a study by the University of Florida at Gainsville, Florida saw the third-largest numeric increase and the eighth-largest percentage increase in population in the country between 2000 and 2010. That represents an increase of 17.6 percent and brought the state’s total up to 18,801,310.Okaloosa County and City of Destin growth rates mirror that of Florida – Okaloosa County now has a population of more than 196,200; Destin weighs in at 12,300. Of course, the Destin population swells to more than 60,000 during tourist season.

Florida Takes Aim at BP

Jun 15th, 2011
by edsmith.
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State economists convening in Tallahassee today will attempt to place a dollar amount on sales tax and other revenue losses attributed to the BP oil spill last year. State and local governments in Florida have received close to $150 million through the Ken Feinberg Gulf Coast Claims Facility so far. According to BP, $1.56 billion has already been paid to federal, state, and local governments in Florida, Texas, Alabama, Mississippi and Louisiana. This number probably includes the tourism marketing  dollars that BP contributed as well.

Towns like Destin will see little if any BP dollars. This is primarily because Destin sees very little return in sales taxes collected here. While Destin contributes approximately 35% of Okaloosa county’s ad valorem taxes and 40% of the sales taxes, very little actually comes back to the city as expenditures are allocated based on the permanent resident population. Destin has a permanent population of 12,300.

In a nutshell, if Destin could be annexed by neighboring Walton County to the east, Okaloosa County’s budget would be would be devastated.

Memorial Day

May 26th, 2011
by edsmith.
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This weekend, we wish to pause and take time to remember the enormous sacrifices of the many U.S. Veterans who have passed from this life. Men and women who paid the ultimate price for freedom. OUR freedom. This nation owes them a debt that we could never repay. Our thoughts and prayers will be with those family members who have lost loved ones in the service of our nation.  We salute them today, on Memorial Day and always.

News From Washington

May 24th, 2011
by edsmith.
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Our Congressional leaders have been busy. In response to the national real estate mortgage debacle, Congress is attempting to enact legislation that would increase down payment requirements on most home loans. The proposed Qualified Residential Mortgage (QRM) rules would require among other things a minimum 20 percent down payment on home purchases. Further proposals would increase FHA down payment requirements from 3.5 to 5 percent.
 
The problem with these proposals is that they do not address the root causes of the mortgage debacle that they are intended to counteract. These proposals, if enacted, would only serve to limit home ownership and retard an otherwise promising (albeit slow) recovery.
 
We have seen little if any correlation between down payment requirements and mortgage defaults. Many of today’s defaulting mortgagors had placed large down payments when they purchased. Many who purchased with little or no down payment whatsoever have made their payments on time, every single month.
 
As we said, these new proposals do nothing to address the real problem, which was the lack of reasonable qualification guidelines. The liar (no-income-verification) loans, stated income and option ARMs allowed anyone that could pass the mirror test to obtain a home loan. Congress, always seeking to further their façade of stalwartness, now acts to close the proverbial gate “after all the cows are out”. While we never advocate debt, it is a necessary evil in the national real estate equation. We are hopeful that sanity will ultimately prevail.

If I buy a house at the county foreclosure auction are all the other liens wiped out?

May 23rd, 2011
by edsmith.
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It depends. We have seen quite a number of bad deals resulting from these types of purchases over the years. The county does not warrant the title and certain liens may survive the foreclosure. We have seen cases in which individuals have purchased properties that were foreclosed by the second mortgage holder. They erroneously believed that they then owned the property outright, even though a superior lien existed.

 

You should always consult with an attorney in advance of the foreclosure sale date to help ensure that there are no surprises. Otherwise you could end up being saddled with unexpected liability.

Can we buy a house with funds in our IRA?

Apr 28th, 2011
by edsmith.
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Yes. A self directed IRA can purchase real estate. It must be strictly investment property though. No personal use allowed.  And, you cannot sell a property that you already own to your IRA. (Sorry)  You must purchase it through your IRA.

This can be a great way to not only diversify your IRA, but to add value as well. Example:  If you purchased a $ 100,000 house with your IRA funds and then leased the property to a tenant for $ 1,200 per month,  you would have a 14% cap rate. After taxes, management and insurance your likely  cash return would be  an impressive 10%  annually! 

Additionally, you still own the real estate. You can touch it, feel it, see it. And in ten years, factoring a mere 4% annual appreciation rate, your base investment would have grown to nearly $150,000!

So to recap: That would be a 10% annual return, plus a nearly 50% increase in value over a 10 year period. Restrictions apply, so check with your CPA or Financial Planner  or tax professional first. 

For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com or email us at smith@realtor.com

Where are all the foreclosures?

Apr 27th, 2011
by edsmith.
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Many buyers are asking about the lack of inventory in the foreclosure arena today as compared to last year. Buyers are finding fewer foreclosure choices in the market to choose from.  So what’s causing the shift? 

A couple of factors are contributing to the lower inventory levels. First, the market activity in single family homes is up 20% Y-T-D over last year in Okaloosa County. Secondly, foreclosure (lis pendens) filings are way down. Through March, there have been 192 foreclosure filings this year as compared with 573 for the same period in 2010.

For information on short sales, bank foreclosures and general real estate topics, please visit www.FloridaBrokers.com  or email us at smith@realtor.com

6 Reasons to Reduce Your Home Price

Apr 27th, 2011
by edsmith.
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6 Reasons to Reduce Your Home Price
By: G. M. Filisko
 
While you’d like to get the best price for your home, consider our six reasons to reduce your home price.
 
These six signs may be telling you it’s time to lower your price:
 
1. You’re drawing few lookers
You get the most interest in your home right after you put it on the market because buyers want to catch a great new home before anybody else takes it. If your real estate agent reports there have been fewer buyers calling about and asking to tour your home than there have been for other homes in your area, that may be a sign buyers think it’s overpriced and are waiting for the price to fall before viewing it.
 
2. You’re drawing lots of lookers but have no offers
If you’ve had 30 sets of potential buyers come through your home and not a single one has made an offer, something is off. What are other agents telling your agent about your home? An overly high price may be discouraging buyers from making an offer.
 
3. Your home’s been on the market longer than similar homes
Ask your real estate agent about the average number of days it takes to sell a home in your market. If the answer is 30 and you’re pushing 45, your price may be affecting buyer interest. When a home sits on the market, buyers can begin to wonder if there’s something wrong with it, which can delay a sale even further. At least consider lowering your asking price.
 
4. You have a deadline
If you’ve got to sell soon because of a job transfer or you’ve already purchased another home, it may be necessary to generate buyer interest by dropping your price so your home is a little lower priced than comparable homes in your area. Remember: It’s not how much money you need that determines the sale price of your home, it’s how much money a buyer is willing to spend.
 
5. You can’t make upgrades
Maybe you’re plum out of cash and don’t have the funds to put fresh paint on the walls, clean the carpets, and add curb appeal. But the feedback your agent is reporting from buyers is that your home isn’t as well-appointed as similarly priced homes. When your home has been on the market longer than comparable homes in better condition, it’s time to accept that buyers expect to pay less for a home that doesn’t show as well as others.
 
6. The competition has changed
If weeks go by with no offers, continue to check out the competition. What have comparable homes sold for and what’s still on the market? What new listings have been added since you listed your home for sale? If comparable home sales or new listings show your price is too steep, consider a price reduction.
 
G.M. Filisko is an attorney and award-winning writer who made strategic price reductions that led to the sale of a Wisconsin property. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Can I do a deed in lieu of foreclosure instead of a short sale? How does that work?

Mar 6th, 2011
by edsmith.
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A deed-in-lieu is sometimes considered by a lender instead of a foreclosure if the lender believes that doing so would result in less financial loss to them. Such may be the case if the property’s value and mortgage balance are similar. Properties with second mortgages and/or large unpaid assessments and/or judgments are not typically good candidates. 

The good news is that in the case of a deed-in-lieu, the lender will likely agree to not pursue you for a deficiency later, regardless how much loss they eventually suffer on the deal. Otherwise, (at least in Florida) a lender would have up to five years to pursue you. Your credit score will of course be negatively impacted, and it will be extremely difficult for you to obtain a home loan for a minimum of two years after the fact.
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