Real Estate Information

South Florida has been riddled with heaps of foreclosure sales, short sales, and buyers profiting from the default of other people's loans. Now, the city is seeing a new trend: sales of unfinished homes. As more builders and construction companies left homes in mid-build due to the housing economy, these houses seemed to be nothing but a huge eyesore for neighbours and passers by. However, new life is being breathed into these homes as they are settling themselves into the market.

Although buying a half-built home is nothing new, the circumstances that surround the unfinished homes during the housing boom are a little different. Firstly, many homes were contracted to begin work and were never even started. Second, many of the builders or contractors that were originally working on a property are not around anymore, leading to confusion by the builder who takes over a project.

In Miami, officials are still unsure of how many unfinished homes are in this position as builders were given a year extension on their building permits. This happened in March of 2009, so it remains to be seen what comes in the pipeline. Builders have also been known to delay their work on a project to finish in the new year for tax benefits. Officials in Miami-Dade and Palm Beach counties say they aren't sure how many partly built homes are in this particular situation.

According to the United States Census, the percentage of half-built homes rose from 39 percent in January of this year to 43 percent by October. Even though this number reflects those homes that are under contract and under construction, it also includes unfinished homes that were abandoned by builders, and taken over by the bank.

The issues and questions surrounding the First Time Homebuyer Federal Tax Credit can be somewhat confusing. SouthFloridaRealtySource wants to make it easier by sharing this short, but information-packed video on the credit and what it could mean for you. Check it out below:

For more information on the Federal Tax Credit, or for info regarding South Florida real estate, contact Roman Pavlik at SouthFloridaRealtySource.com.

It was only a few years ago that the cities of Miami and Las Vegas were in the middle of an enormous growth spurt. In the midst of the boom, a mushrooming of condo developments and more-than-willing buyers sent home prices through the roof.

Now, foreclosures are ruling the hard-hit towns, and home prices are skimming on rock bottom. In comparing the two cities, Miami came out on top in terms of scope of development. The condo explosion in South Florida was colossal.

"They built less in Las Vegas than in Miami," but there are fewer potential buyers, said Marty Burger, president and chief executive of Artisan Real Estate Ventures in Las Vegas.

The market was pitching condos for second homes to those that visited either city… a better alternative than renting hotel rooms.

"There was no real demand that you could point to," said Jack Winston, a consultant with Goodkin Consulting. Winston was cautious about the development and growth, as there was no real demand that justified any of the new projects.

"Outside developers came here and really misjudged this market," said Irwin Molasky, a Las Vegas real estate developer. "It is not a Miami market. We don't have the South American trade, the New York trade, and they just thought, if you build it, it will come.

Although Miami is in recovery-mode, the city still attracts millions of tourists and now is a better time than ever to find amazing condos and super-affordable prices.

To find South Florida condos, contact real estate professional Roman Pavlik at southfloridarealtysource.com.

Over half a million home owners have been helped out by a government program aimed to aid those facing foreclosure. The program was intended to make sure that the foreclosure crisis remains somewhat maintained, and does not spiral out of control.

However, Elizabeth Warren, chairperson for the Congressional Oversight Panel for the $700 plus billion bailout program says, “We’re concerned that not enough foreclosures will be prevented.”

Unfortunately, it seems as if the plan is falling short in three key areas. First, the people who really need the help are the ones who are not eligible. Making adjustments and aid available to these people may decrease the ever-growing foreclosure filings.

Second, only about 25,000 loans are being modified a week, which is far below (less than half) the amount of foreclosures being filed a week.

Third, so far only 1,700 or so home owners have gotten loan modifications. Most others are still in a trial period, therefore only delaying the inevitable rather than actually helping.

Warren stated that the plan’s timing is misplaced, as it “appears to be targeted at the housing crisis as it existed six months ago rather than as it exists today.”

The housing crisis, although reporting spikes of good news here and there, is still very much alive. Many industry experts believe that the market will “sour” before it gets better. The slow start to this federal program is one inclination of the long road ahead.

“We’re still living with the risk that housing is going to be a source of weakness in the economy,” says Treasury Secretary Timothy Geithner.

The Plaza at Oceanside in Pompano Beach was bought out by bulk buyers Chetrit Group and Read Property Group for $38.5 million from WCI Communities. The total parcel is comprised of 24,448 square feet of commercial retail space, 138 condo units, and a 3.75 acre development site.

The two bulk buyers were recently approved for a $28.2 million mortgage as their plan is to turn the property into a mixed-use development. The new development will house a 303-room hotel, 77 residential units and over 45,000 square feet of commercial retail space. The two buyers were able to acquire the building and land after WCI filed for bankruptcy.

The non-recourse loan was arranged by New York City-based Meridian Capital Group, and Ladder Capital was the one who granted the mortgage. Ladder is specialty finance company focused on the commercial real estate market.

Even though WCI filed for Chapter 11 bankruptcy in August 2008 and emerged in September of this year, they retained Cushman & Wakefield to help sell the property’s units and attached land.

Brad Capas, a senior director at Cushman & Wakefield, said, “The important thing that is very encouraging is that there is plenty of investment capital pursuing these deals.” He also stated that although there is a renewed interest in deals such as these, that the debt markets overall are still struggling.

To find South Florida real estate, contact seasoned professional Roman Pavlik at roman@pavlikgroup.com or visit SouthFloridaRealtySource.com.

The Community Association Leadership Lobby conducted a survey of Florida Homeowner Associations and their viewpoints on the current state of the housing market, as well as their predictions and forecasts for the future. The survey showed that a majority of the state's homeowner associations were an immense amount of stress and felt discouraged about the condition of the market.

Out of 777 associations that participated in the survey, over 90 percent said that financial problems will persist or get worse in 2010. Additionally, approximately 60 percent of the associations raised assessments to cover revenue losses from the past year and half, much of which was caused by owners who were in default. About 66 percent said that a large increase in the amount of property owners who are more than 60 days late paying their fees is also responsible for the raised assessment fees.

Homeowner associations are in favor of supporting legislation that would permit them to collect additional late fees from investor-owned properties, as well as from any tenants that are renting out any properties. This survey and its results may further help Florida homeowner associations, along with those in other states, to change legislation to allow more fees to be collected.

To find South Florida real estate, contact seasoned professional Roman Pavlik at roman@pavlikgroup.com or visit SouthFloridaRealtySource.com.

Although there has been an outburst of activity in real estate bulk buying, the South Florida housing market is still suffering. The Mortgage Bankers Association reported that new mortgage applications and home construction are declining.

Last Wednesday, the association’s report stated that the index of applications went down 2 percent, as mortgage applications hit a 12-year low. However, many analysts think that the new federal tax credit extension will rouse up enough activity to help the market begin to stabilize.

The 2 percent decline in new housing applications is mild compared to that of the housing starts industry. Builders are going through some tough times as new home starts fell almost 11 percent in October, adding up to 529,000 for the year. Unfortunately, the Commerce Department stated that the low numbers of building permits paints a bleak picture for the near future as well.

In Florida, though, realtors reported that sales of existing single family homes went up by 33 percent. The low home prices have undoubtedly been attracting buyers from all over the state, nation, and the globe. With some of the most affordable condos in the country, Central and South Florida are enjoying a buying frenzy of late, despite the fact that the discounts have incrementally hurt home values. The majority of bulk transactions in South Florida have also contributed to the negative shift in home values.

To find the best deals in South Florida, contact Roman Pavlik. Roman is a seasoned real estate professional with extensive experience in the South Florida market. Email him at Roman@PavlikGroup.com or browse SouthFloridaRealtySource.com.

The San Michele, a West Palm Beach condo conversion is facing foreclosure on their 182 unsold units. The 182 unsold units in the San Michele condo conversion in West Palm Beach face foreclosure.

Regions Bank, based in Birmingham, Alabama, filed foreclosure last week against Lucky Chase III. Lucky’s managing member, Scott Deaktor is also a target of the lawsuit, in which Regions Bank is seeking $15 million plus interest and taxes.

Originally, Regions granted Lucky Chase III a mortgage of $45.5 million in 2005. The developer used the funds to convert the 300-unit property into luxury condos, complete with a community clubhouse, swimming pool, tennis court, volleyball court and children’s playground. 118 units have been sold since 2005, but only a total of 7 units have sold this year.

Unfortunately, for Deaktor, this is his second foreclosure lawsuit, as AmTrust Bank also filed suit against him and his company Lucky Chase II. In October 2008, AmTrust filed foreclosure over 333 unsold units at a building called the Residences at the Falls – another condo conversion, located in Miami-Dade County. This April, Lucky Chase II filed for Chapter 11 bankruptcy.

To find South Florida condos, contact Roman Pavlik either via email Roman@PavlikGroup.com, or on his website SouthFloridaRealtySource.com.

Always a hot topic, "Going Green" is being embraced on many levels by so many people all over the world. SouthFloridaRealtySource wants to give you a few hepful tips that will help you "Go Green" at home.

Saving Energy Means Saving Money:

1. To save on heating and cooling costs, always keep your thermostat a few degrees higher in the summer and a few degrees lower in the winter.

2. Also, installing fluorescent bulbs (although a little more expensive than regular light bulbs) will help to save energy and keep your electric bill down. Plus they last a lot longer than traditional light bulbs.

3. Lastly, don't forget to unplug anything that you are not using. Even coffee machines, laptops, hairdryers, etc. that are plugged in but turned off can use energy. Alternatively, you can use a power strip with an on/off button.

Save Water Means Saving Money:

4. Even though we love to lounge in the shower for an extra minute or two, it is a waste of water. Try taking shorter showers, or time yourself if you tend to lose track. If you listed to music while showering, try to finish up in the duration of one song.

5. Get handy and install a low-flow showerhead. They are not expensive and you will save a lot more money in the long run. Plus, installation is easy. You can always ask your local hardware store for directions or help.

Looking for a bargain? South Florida homes are selling at record low prices… but some because they have been installed with the tainted drywall from China. In recent months, the drywall has been in the press for causing illnesses and sickness.

Many people have reported respiratory problems, bad odors, and other major health problems. So, are the rock bottom tags worth it?

The homes could actually be more of a nuisance in the future. Even with the low sale prices, it costs approximately $100,000 to clean up a property with bad drywall.  With houses selling for around $50,000, that is already a $150,000 investment.

Jeff Tumbarello, president of the Southwest Florida Real Estate Investors says, “What if they say every porous material in the home, including concrete slab, absorbed enough stuff to consider it a health risk?” But you never know. Tumbarello added, “Somebody is going to look brilliant, somebody is going to look stupid. We just don’t know who they are yet.””

Joe Pavich, president of Bonita Springs-Estero Association of Realtors estimates that a buyer could purchase a home for $20,000 and completely rehabilitate it; but he says house-hunters also now could get a similar property – minus the defective drywall – for as little as $70,000.

If you are looking for South Florida deals, contact seasons real estate professional Roman Pavlik at SouthFloridaRealtySource.com.