That being said, today, I had the opportunity to speak with my real estate insurance guru, Lee, and he opened my eyes to recent developments in the homeowners’ insurance world.  He explained to me that numerous carriers have gone out of business, while others have downsized, dropping many of their policies.  He indicated that after the first of the year, many homeowners can expect a significant increase in their policy (30%+).  He strongly suggests homeowners shop for the best rate, and he said the time to shop is now.  We all survived the hurricane season unscathed, so the next four months, while all is quiet, is the best time to buy.  Lee also stressed the huge benefit (money savings) of having a four point or wind mitigation inspection.

If you’d like more specific information, let me know and I can put you in touch with Lee.  Be proactive….know your options!

Never-the-less, as a firm believer in the Boy Scouts’ motto, I say we need to be prepared!  Just in case we’re not as lucky during the entire season, I have some great pointers to ensure you have done everything you can to protect yourself and your family.

For starters, if you have a generator, check the operation and make sure you have enough gas to keep it running up to two weeks.  Also, check your gas grill and make sure you have a couple of full canisters available.  Trim your trees and bushes, and check on the condition and accessability of your window and door protection (panels, shutters, plywood).

Be sure to stock up on nonperishable food and water (3 gallons per person), make sure you have enough prescribed medication to last two weeks , stock up on batteries, and don’t forget to clean out your large coolers.  Be sure to determine emergency contacts and meeting places, and after reviewing your insurance policy, place a copy in a water tight container.

Your hurricane survival kit should include a first aid kit, protective clothing and rain gear, bedding, canned food with a manual can opener, a battery operated radio, flashlights and loads of batteries.  If you have babies, elderly,  handicapped persons, or pets in the household, remember to stock up for their special needs too.  

I am an eternal optimist, so I’m predicting the storms will all blow out to sea and Parkland will be safe another year.   But, the practical side of me says, “It sure can’t hurt to be prepared”.

Talk to you soon…..Bobbi

None-the-less, property taxes can still be painful.   However,  in the state of Florida, we have the ability to cap our yearly tax increase to 3% and benefit from a tax-saving exemption on the first and third $25,000 of the assessed value of our primary residence.  This exemption translates to a yearly savings of approximately $700-$1,000 for Florida homeowners!  I’m amazed, when selling homes, how many people fail to apply for their homestead exemption…even after years of ownership!! 

The filing process is simple–you can either visit the Broward County appraiser’s office or apply online at: www.bcpa.net.  There are a few requirements–you’ll need to prove ownership (copy of recorded deed) and prove Florida is your permanent residence by providing your driver’s license, Florida I.D. Card, or Florida Voter’s Registration.  Remember, you must own the property January 1st, in order to be eligible for any given year.  The official filing period for 2010  was March 3, 2009 through March 1, 2010, but you can submit a late application if it is submitted by September 20, 2010.

Effective July 18, 2008, Floridians moving from one Florida property to another, were given the ability to transfer the tax savings from their present homesteaded property to their new property.  Essentially this means the savings we have accrued through our Homestead Exemption can be moved with us to our new home.  We have two years after changing homesteads to transfer this savings, but it will only apply going forward, so it’s best to do it sooner than later! 

Here’s an example, at the simplest level, of how it works.  Let’s say you sell your property for $600,000, but because of your homestead, the assessed value at this time is $400,000.  If you buy a Florida property which is more expensive–say $800,000–the difference between your real value ($600K) and assessed value ($400K) is subtracted from the real value ($800K) of the new property.  $800,000 – $200,000 = $600,000.  Now, for tax purposes, the assessed value of your new property is only $600,000 and any exemptions you qualify for will be taken from that figure.  Basically, when you buy higher, the total difference is subtracted.

Using the same original home, let’s say you bought a Florida property which is less expensive…i.e. $500.000.  We cannot take the total difference off ($200K) between our assessed and real value from the real value of our new home, but rather, we can take off  the percentage it is of the real value–$200,000 is 331/3% of $600,000 so we can deduct $166,666.67 from $500,000, making our new assessed value $333,333.33.   Ahah…when buying a less expensive property, we deduct the percentage.

Remember, in order to transfer your tax savings to your new property, you must FIRST apply for homestead for your new home.  Parklanders, new and old, take advantage of your opportunity to homestead and/or move your previous savings….you DESERVE it!

Talk to you soon……Bobbi

First, let’s consider single family homes on the market….right now there are 240 homes presently listed in the MLS system, ranging from a low of $215,000 to a high of $5,200,000.  The price breakdown is as follows: twenty are in the $200,000 range; twenty-nine in the $300′s; thirty-seven in the $400′s; twenty-eight in the $500′s; thirty in the $600′s; sixteen in the $700′s; twenty-five in the $800′s;  six in the $900′s; thirty-seven from one to two million; five from two to three million;  five from three to four million; and two over $4,000,000.  Of these listings, 56 are short sales, and of those, 40 of them are listed under $600,000.  In addition, within the 240 listings, 14 are foreclosed properties and 11 of these are listed under $400,000.

Now let’s look at pending contracts…..homes that have a fully signed contract between the seller and a buyer, but it just hasn’t closed yet.  Right now there are 143 pending contracts and here is their breakdown: one is just under $200,000; 15 are in the $200′s; 29 in the $300′s; 23 in the $400′s; 29 in the $500′s; 22 in the $600′s; 13 in the $700′s; 3 in the $800′s; 3 in the $900′s; and 4 over $1,000,000.  Of these pending contracts, 85 are short sales….half  are listed under $400,00 and the other half has 19 in thr $500′s, 11 in the $600′s, 10 in the $700′s, 1 in the $800′s, 1 in the $900′s and one over a million.  Also, within the 143 contracts are 11 foreclosures with 9 listed under $325,000, 1 in the $400′s and one in the $600′s.

Finally, let’s look at the Parkland homes that have closed in the last six months.  There have been 182 sales, and here’s the breakdown; excluding the actual $50,000 firesale; 1 under $200,000; 19 in the $200′s; 33 in the $300′s; 44 in thr $400′s; 34 in thr $500′s; 22 in the $600′s; 9 in the $700′s; 6 in the $800′s; 5 in the $900′s; and 10 over a million–the highest being $1,800,000.  Thirty-nine of the 182 were short sales with 3 in the $200′s, 8 in the $300′s, 13 in the $400′s, 7 in the $500′s, 5 in the $600′s, one in the $800′s and 2 over one million.  In addition, 29 of the 182 were foreclosures, with 8 in the $200′s, 9 in the $300′s, 5 in the $400′s, 5 in the $500′s, 1 in the $600′s and 1 in the $700′s.

Okay, so it’s not a pretty picture.  As you can see, our real estate market is still heavily peppered with short sales and foreclosures.  The good news is, we are moving them through the system and we’re starting to see activity in the higher numbers.  This market is not for the faint of heart, but with a strong dose of realty and perserverence, the sale will happen.  Just be realistic and hang in there!

Talk to you soon……Bobbi

Keeping that adage in mind, to fascilitate the sale of your home,  it is in your best interest to prepare your home for sale.  This will not only shorten the time it will take to snag a buyer but will also increase your net .

How about the saying, “First impressions are lasting”?  Nothing could personify this idea more than the lasting effect the first impression  of a home has on a buyer.  With this knowledge, a wise seller will take a long, hard look at his home from the curb to the front door.  Dirty roofs, driveways and walkways, dented and peeling garage doors, and finger-smudged front doors are not good for first impressions.  A smart seller will also spruce up the landscaping, adding new mulch and colorful flowers, and even paint the exterior, if need be.

Think about the saying, “Less is more” when preparing the inside of your home for sale.  Less clutter…It’s time to clear the counters, get rid of some of the furniture, clean the closets and start packing.  Less drama…Paint the purple polka dot walls a nice, neutral color and replace the orange carpet with beige. 

Biblically speaking, how about, “Let there be light”?  Dark houses are depressing!  Clean the windows and open the blinds and shades.  Take a look at your light bulbs. They are probably dust-laden.  Why not replace them, or at least give them a thorough cleaning.

“A rose by any other name….”  It’s a wonderful idea to enhance your home with the sight and smell of  fresh flowers.  Needless to say, the lingering odors of pets, litter boxes, or cigarettes are huge no-no’s!  Air fresheners are also a good idea, as long as the aroma is not too heavy.  How about baking cookies prior to a showing?

As a seller, it is best to “walk a mile” in the buyer’s shoes….imagine what you would look for in a home.  No doubt, you would want it to be well maintained, sparkle with cleanliness, and  be easily adaptable.  With all these tips to prepare your home for sale, it is my hope that “a word to the wise is sufficient!”

As you may expect, an important topic and major emphasis of this blog will be the real estate market . . . both in general, as well as specific discussions regarding Parkland. Today, I will delve into that topic by introducing and explaining a couple all-to-familiar terms in our current market: Foreclosures and Short Sales.

There is a tremendous amount of confusion regarding foreclosures and short sales, and sometimes the misconception exists that they are synonymous. They are not, though both very much involve the bank.

A foreclosure is rather straight forward, in that it is simply a bank-owned property. Most often, it is the result of the previous owner’s failure to pay a mortgage for a significant period of time. The previous owner is forced to leave the property and no longer has ownership rights. A foreclosure is typically the bank simply exercising the terms of the mortgage and its right to “take back” the house due to non payment. Once this is done and  the bank takes ownership of the home, it usually seeks to sell rather quickly. Banks do NOT want to be in the home-ownership business! Thus, foreclosures are often priced very aggressively. Unfortunately, they are also often in a state of disrepair.

A short sale is a bit different. In a short sale scenario, the home is still ‘owned’ by the individual and NOT the bank. Though most short sales do involve owners who are late or have missed several mortgage payments, the bank has yet to exercise its rights to ‘take back the home’ . . . its rights to foreclose. The reason a short sale is called such, is because the sale of the home will result in amount that is less than what is owed to the bank(s). In this scenario if a seller does not make up the deficit, the seller can ask the bank(s) to release the lien and allow for a sale without a full payoff. . . with a “short” amount. In a short sale, the seller generally does not receive any proceeds from the sale, but also usually does not “bring money to closing” either. It is important to note, however, that a short sale does NOT resolve the original note/debt. Receiving short sale approval from a bank is a very involved process, and one that can be rather time consuming. But most experts agree that a short sale is a better option for a seller than a foreclosure.

For buyer’s, purchasing a short sale requires plenty of patience. One should not venture into a short sale, either as a buyer or seller without an agent experienced in process, and perhaps legal guidance.

These are topics that could fill books… and probably have. I hope my simplistic description was helpful. Please fell free to post any questions or follow-up. We are confident that we have one of the best teams in the country in this relatively new aspect of our real estate market.

Until next time. . . .

Over the years, I have witnessed the city expand and the population explode, adding new neighborhoods and schools to our landscape.  All the while, the governing officials have been diligent in maintaining the integrity and beauty of the city.  

Selling real estate for 24+ years in the community, I have experienced various real estate markets and have always ascerted real estate follows a basic law of physics…what goes up, must come down.  The good news is, it will go up again.  It will not be the rapid ascent we experienced from 2001 to 2005, but it will be a healthy growth.

If you follow my blog, you’ll be kept apprised of what is happening in the Parkland real estate market today.  I also intend to inform you of other important happenings in the city…school events, elections, social activities, etc.  If you stick with me, it won’t be long….you’ll be passionate about Parkland too!