Real Estate Information

Today, it is quite common for families or individuals to move out of their homes in order to make the "show and sell" process easier for prospective buyers and their real estate agents. However, it can be somewhat detrimental, at least for the successful sale of your property, to leave the premises entirely. Many multi-million dollar South Florida home owners are choosing to list their houses as super-affordable rental properties. One such house, a $1.75 million mansion recently secured a tenant for only $2,800 a month!

The catch? The renter must have stylish furniture, be available to show the home to prospective buyers, keep the home clean at all times, and be willing to move out with short notice.

Even with the great deal, it still seems like a lot of trouble. So, why do home owners want to do this?

An empty house seems unattractive for potential homebuyers, and keeping the furniture in tact can help them to envision their future life in your home. The more "lived in" it appears, the better the chances are of it selling.

House sitters are beneficial for many reasons. With home security being a major concern, having a house sitter mitigates any anxiety or worry about leaving your house vacant. People will be able to see someone coming and going from the property on a daily basis. Also, any chores like taking out the garbage and cleaning the yard, or duties such as bringing in any mail or checking on the water pressure will be taken care of. The last things you want to think about are magazines piling up on the doorway or small structural problems that can get out of hand if unnoticed. It is also helpful to note that homeowners can count on the safety of continuing insurance, as these companies prefer a permanent live-in caretaker rather than someone just coming in sporadically to check-in on the property.

If you are interested in hiring or becoming a house-sitter, check out www.mindmyhouse.com or www.caretaker.org for more information.

You can always contact your realtor, or get in touch with Roman Pavlik at www.southfloridarealtysource.com to get advice on moving in or out of a home.

Despite the fact that the home prices have taken a deep dive, the majority of Floridians are finding that housing is still somewhat unaffordable. Translation: people are spending more of their money on mortgages or rent.

The government standard tells us that a home should cost 30 percent or less of annual (combined) household income (HHI), with housing costs comprising of the following: mortgage payment or rent, taxes, insurance, and utilities. However, over 40 million Americans spent more than 30 percent of their HHI on housing --this includes both owners and renters. Predictably, the total number of homeowners has dropped this year, while the number of renters increased.

The government reasons that those who pay more than 30 percent of their income for housing costs are in breach of the affordable housing limit. In Florida, nearly three in five homeowners are included in this "unaffordable" bracket, one of the highest in the country after California.

But, perhaps people are just used to paying more for housing than in the past. In 2008, the people paying 30 percent or more has stabilized over the last two years. Does the government equation need to be adjusted? It may not be a bad idea as a study by USA Today and the Joint Center for Housing Studies at Harvard University revealed that 25 percent of renters are paying one-half or more of their annual income on rent!

"Although housing affordability for newly purchased homes has improved, overall affordability for renters or owners is unchanged or worse because of the economy," says Daniel McCue, research analyst at Harvard's Joint Center for Housing Studies. "People are still hurting."

To find affordable housing in your budget, contact Roman Pavlik on his Website, www.SouthFloridaRealtySource.com

The foreclosure frenzy surrounding South Florida homes has been quite a relief to local real estate companies, indicating that the keen interest is a sign that the market has bottomed-out.  However, area realtors are in no need of relief as tumultuous bidding wars are happening all over Miami-Dade and Broward counties. The 8,898 foreclosed homes in Miami-Dade county are keeping agents fairly busy, translating to one out of every 109 homes, according to a report by RealtyTrac.

Distressed real estate, including residential homes, has been receiving an exorbitant amount of attention in past few months, with deep-pocketed buyers hoping to invest for pennies on the dollar. The category receiving the most attention? Lower-priced homes, condos and townhouses. With the market positioned the way it is now, houses being sold for under or around $100,000 are being snapped up rather quickly. Investors are plunking down cash under the premise that they will be able to profit two or three-fold once the market recovers, which is the same mind-set for all those bidding on foreclosed homes. Unfortunately, "cash is (most definitely) king," and those coming to the table with bank financing are unable secure a rightful place in the bidding war.

Industry experts in South Florida are noticing that for each distressed home, there are anywhere between 10 and 15 bidders; a far cry from a year ago when foreclosed homes and condos were struggling to get any action. But there are also more distressed properties on the market than ever before, as indicated by the RealtyTrac report.

On Thursday, the Florida Association of Realtors reported that sales of single-family homes in Miami-Dade country increased 22 percent over last year in August. However, the median price fell 29 percent to $194,000, consequently fueling the escalating interest in South Florida real estate. Condos have followed a similar pattern with a 17 percent rise in sales and a 31 percent drop in price to $144,700.

To find foreclosed / bank owned properties in South Florida, please visit SouthFloridaRealtySource.com's Foreclosure Page.

South Florida is one of the areas benefitting from the $8,000 federal tax credit for first time home buyers. Designed to improve the housing market, 1.5 million Americans have already taken advantage of the program, and more are rushing to do the same as the credit expires November 30, 2009.

In what can partially be attributed as a direct result of the popular federal program, Broward County, Florida saw 816 home sales in August, which is an increase of 35 percent from last year. Low interest rates and falling home prices are also credited with the boost i is keeping quiet on the outcome. Realtors are arguing that the tax credit is helping to clear out the distressed and foreclosed homes that bring down area home values.

Lawrence Yun, chief economist for the National Realtors' group said, "The first-time buyer tax credit is having the intended impact of bringing buyers into the market, allowing them to take advantage of very favorable affordability conditions."

Condos in South Florida are the most prevalent housing option for young adults, with August sales in Broward County rising a whopping 61 percent from last year.

Want to find homes in the South Florida area? Check out the Featured Properties page at SouthFloridaRealtySource.com!

The Internet is a fantastic, in-depth source of information for first time home buyers. In fact, a study by the California Association of Realtors revealed that 84% of people flock to the Web to house-hunt. However, if you are one of those people who find it unappealing to laboriously navigate the search engines for specific answers, try doing it the old-fashioned way: read a book.

Below is a list that should be of interest to any first time home buyer. Written by industry experts and experienced real estate professionals, these books cover a variety of topics.

Home Buying for Dummies
By Eric Tyson and Ray Brown

Not that we are implying first time home buyers are unintelligent in any way, but the "...For Dummies" collection prides itself on really outlining each of the topics it delves into. The latest edition even explains the subprime crisis and summarizes financing, negotiating, paperwork and basic real estate issues. This book will serve as a great reference throughout the home buying process.

100 Questions Every First-Time Home Buyer Should Ask
By Ilyce R. Glink

This is a super book that can be used as a general overview of the home buying process. It is not so much a "tips and tricks" book at it is educational. One good thing is that the author covers unusual topics that are not found in other books, such as negotiating a new construction home.

The 106 Common Mistakes Home Buyers Make (And How to Avoid Them)
By Gary W. Eldred

This book is geared towards first time home buyers and educates on the basis that your home is an investment vehicle. It also covers smarter ways to use the Internet to find the properties that are right for you, and many time and money saving tips that people not exposed to the home buying process would not consider. The best part of the book is that it covers "real estate lingo" in an easy-to-read format. One of the hardest parts of jumping into this experience is understanding the vernacular, and this book does a great job covering just that.

How To Buy Your First Home
By Diana Summers

This book directly addresses the fears and anxiety that first time home buyers experience when searching for their dream house. The glossary of terms, checklists and Internet resources are extremely useful sections of the book. It is organized in a very methodical way, and the reader is not overwhelmed by the wealth of information the author doles out. This is a good book to refer back to during the home-buying process.

If you decide that you would like to talk to a seasoned real estate professional anyway, please contact Roman Pavlik at his Website: SouthFloridaRealtySource.com

Highlights from the Federal Reserve's survey of economic conditions. The survey, released Wednesday and known as the Beige Book, is based on information collected from the Fed's 12 regional bank districts.

ATLANTA

(This region covers Georgia, Alabama, Florida, and parts of Louisiana, Mississippi and Tennessee.)

The pace of decline moderated in some industries and most noted an improved outlook. Retail sales were sluggish but largely in line with expectations. Tourism-related spending weakened. Theme park attendance and cruise booking were relatively stable, with promotions and discounting playing a significant role. Vacationers overall were said to be spending less.

Sales of existing homes were "stabilizing overall." Homebuilders noted that inventories were trending down on a year-over-year basis. Home prices continued to drop. Commercial real-estate activity was weak. The rate of decline in factory activity moderated. The jobs market stayed weak.

In the wake of Broward's decreasing property tax values, top county officials are seriously considering raising the county tax rate, which is something Broward commissioners haven't done in a decade. Talks of a potential rise in property taxes comes less than a week after Broward Property Appraiser Lori Parrish released figures showing property tax rolls fell by a staggering 10.7 percent countywide. That does not mean that Broward residents should expect a similar drop in their taxes. Whether homeowners' tax bills ultimately rise, fall or stay the same depends on how much their property values changed and on tax rates set by multiple jurisdictions. The biggest chunk of a homeowners' tax bill in Broward -- about one-third -- goes to the school district. Some school board members have said they won't raise the tax rate, but it is unclear if a majority will go along. The school district has yet to release its proposed budget. The county also represents a large share of a homeowners' tax bill -- about 25 percent. Cities and other taxing authorities, including the hospital districts, make up the balance. Some cities, including Fort Lauderdale, won't release a proposed budget until July.

The National Association of Realtors says increase your chances of getting your dream house instead of losing it to another buyer, with these easy steps.

• Get pre-approved for a mortgage. This is a lender's guarantee that you have a mortgage in hand, once you find the home of your dreams. With a pre-approved mortgage, you'll be able to make a firm commitment to buy and make your offer more desirable to the seller.

• Stay in close touch with your real estate agent to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market.

• Scout out new listings yourself. Look at Internet sites, newspaper ads, and drive by the neighborhood frequently. Maybe you'll see a brand-new "for sale" sign before anyone else.

• Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won't be unsure when you have the chance to make an offer.

• Bid competitively. You may not want to start out offering the absolutely highest price you can afford, but don't try to go too low to make a deal. In a tight market, you'll lose out.

• Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing. In a tight market, you'll probably be able to sell you house rapidly. Consider talking to your lender about getting a bridge loan to cover both mortgages for a short period.

• Don't get caught in a buying frenzy. Just because there's competition doesn't mean you should just buy anything. And even though you want to make your offer attractive, don't neglect inspections that help ensure that your house is sound.