In Florida, a seller is not legally obliged to provide a real property disclosure to prospective buyers. However, a seller is legally required to disclose known facts that materially affect the value of the property. In some situations, a seller may be unable to provide disclosures, such as that of a trustee owned or bank owned property. Your sales contract should always provide for thorough home inspections prior to closing.
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The Real Estate Prognosis for Florida’s Emerald Coast
The prognosis for 2011 is good! We expect actual closed sale transaction numbers to improve considerably in 2011. An increase in sales numbers is the precursor to appreciation. More demand equates to higher prices. It will take a while for the inventory levels to subside, but this market is on the way to seeing better days!
Are the holidays a good time to list our house for sale?
Your personal need or motivation to sell should be the biggest determining factor as to timing. The Housing Affordability Index reached a new high this October at 184.2. The index is based on several factors including average wages, real estate prices and interest rates. For comparison, an index of less than 100 means it is difficult to buy.
Simply put, homes are more affordable now than at any other time since the index was created. If you need to sell now, you need to list now. You never know when that perfect buyer for your home may come knocking!
What is a robo-signer and why did some banks stop foreclosures?
Robo-signing is a media term used to describe the process whereby foreclosure affidavits were (allegedly) executed without being reviewed. As a result of the recent scrutiny, many lenders chose to curtail certain foreclosure processes. This is to allow for additional review to ensure that proper procedures are being followed. The current foreclosure moratorium is both voluntary and temporary. We expect foreclosure filings to resume very quickly.
For more info please visit http://www.FloridaBrokers.com
If I am buying a house and the appraisal comes in $50,000 low, does the seller have to sell it to me at that price?
Typically, the seller would have the option of selling at the appraised value, allowing the transaction to proceed as otherwise planned. However, the obligations and rights of both buyer and seller are dictated by the terms of the sales agreement. Review your specific contract language as pertains to appraisal contingencies with your Realtor or attorney to determine what options are available.
Does the new health care law really place a 3.8% tax on real estate sales?
Yes and no. The government is now referring to this as an “investment tax” that they claim would only apply to “high income” individuals. However, many folks with moderate incomes that have a large capital gain in a given year may suddenly find themselves classified as “high income” individuals. The sale of a second home, or perhaps even the sale of a primary residence could trigger this high income designation.
Contrary to news stories being circulated around the internet, this tax will be computed based upon your profit and not the sales price of a property. Unless scrapped by Congress, this new health care tax law will become effective in 2013.
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If the market is so slow, why is every property that I call about already under contract?
You must have good taste in real estate! It is not so much that the market is slow, rather that values are simply soft. With all-time record low interest rates and attractive asking prices, competition amongst buyers and investors for good deals is very strong right now. We regularly receive multiple offers within the first week on new listings. To take advantage of the best deals out there, you must know the market and then be able to move quickly.
I was told that I don’t need a survey if I’m paying cash for a home in a platted subdivision. True?
No. If you purchase a property for cash that has an existing encroachment (or two) you could have real problems when you try to resell in the future. Yard buildings, driveways, fences, easements, swimming pools and even roof overhangs can all be sources of frustrating encroachments.
We once saw a case in which the house itself was built 15 feet over the neighbor’s property line. Had the buyer elected to pay cash without the benefit of a survey, they could have ended up with a lot of cash tied up in a property that they could neither sell nor even borrow against. Their equity would be frozen indefinitley.
One other option. Many title insurers wil accept a prior survey. That is, so long as the seller is willing to sign a sworn affadavit at closing stating that nothing has changed to affect the boundaries since that prior survey was drawn.
Alive and Well Despite BP and the Media
So, BP has finally succeeded in capping the Deepwater Horizon well … While that is great news, there will still be little mention in the media of the fact that our beaches here along the Emerald Coast are oil and tar ball free. Over the past two weeks, Terri and I have traveled by boat from Perdido Key to Port St. Joe. The only oil we have seen is called Banana Boat or Coppertone or No Ad, etc etc … And it was most definitely smeared all over the beachgoers, locals and tourists alike.
The cable news networks have been bad enough in their irresponsible coverage of this event, but what about the print media!!! My God!! With huge declines in readership and shrinking ad dollars, some of the print media has been the most reckless and desperate of all. Photos of sludge on the beach at Grand Isle Louisiana with headlines indicating it to be Florida??? Criminal!!
Even more criminal is the fact that BP is NOT paying reasonable claims as they would like to have everyone believe. Dragging their feet and digging in their heels, these Keystone Cops are going to deny the majority of legitimate claims. When BP says “We are going to make this right”, it really means “If you don’t like it, sue us”.
After nine consecutive months of increased sales transactions over the previous year, the month of June fell flat. That is because there is a 30 – 60 day lag between cause and effect in real estate sales. The impact of April and May will be felt in June and July. Over time, the public will come to realize that all is well and that life is still good on the Emerald Coast. Most Gulf Coast regulars are already aware but had already cancelled their plans for this year. So business-wise, fall and winter will most likely be fairly normal. By spring, business should be much improved. Time will tell. It always does.
Flood Insurance Floats Again
For the fourth time since last December, Congress and the Senate have agreed (imagine that) to temporarily extend the National Flood Insurance Program (NFIP), just as Hurricane/Tropical Storm Alex struck the Texas Gulf Coast. The measure to reauthorize the federal flood insurance program is only good through September 30, 2010, at which point Congress and the Senate may very well allow it to again expire. The President is expected to sign the current legislation.
During these lapses, new flood insurance policies could not be issued. Now that the program is temorarily reinstated, new and renewed policies are effective retroactively. There is a 30-day waiting period after issuance of a new policy before it takes effect, unless it is issued in conjunction with a purchase. The rationale behind this is that homeowners may purchase flood insurance in the case of an immediate threat, only to cancel after that threat passes.