Lakewood Ranch, FL Blog

If you are like most people I talk with, you are probably unaware that we will be voting in November on an amendment which will offer monumental savings in property tax.  Depending on where the property is located in the state, the amendment will result in a property tax reduction of 25-40%!  This savings will, in my opinion, result in a much-needed increase in both the number of Florida residents who will now be able to own their own home, and the number of folks wanting to relocate to Florida from other states but, when told about our high taxes, are disappointed to learn that they can't afford to purchase here.  These two groups will begin buying up properties and our housing market, and economy, will improve greatly.

So, you might ask, how can state and local governments afford to give up 24-40% of their (our) income?  Basically, here is how Amendment 5 works:

• School boards currently are funded locally through what is known as a Required Local Effort (RLE) property tax levy on your property.  Amendment 5 will abolish this
• Amendment 5 will require the legislature to fund the schools at the same monetary level ($10-11 billion in 2010) as they would have received through the RLE so there is no loss in revenue to the schools
• You can see how much you would save, go to your tax bill or TRIM notice (www.taxcollector.com for Manatee County) and look at the itemized section.  The line that reads "State law required" or similar language represents the amount you would save...assuming the other aspects of your tax bill remain the same.

Where will the state get the money?

• Amendment 5 allows for budget cuts in other areas of the state budget, and the repeal of sales tax exemption loopholes like ostrich feed, luxury skyboxes, etc. while preserving basic exemptions like food, rent, heating fuel, medicine and health care.
• Amendment 5 also allows for a 1% increase of the statewide sales tax from 6% to 7%, and other tax revenues like a cigarette tax

Is this bad for schools and teachers?

• The amendment requires the legislature to fund the schools at the same levels...they won't go without funding
• Amendment 5 continues to allow local school boards to levy discretionary millage so special needs can still be met

Who benefits from Amendment 5?  Everyone!  Why?

• Private property owners, under the current system, pay a disproportionate share of school tax, compared with renters. 
• Private school parents now pay for both public and private schools. 
• Renters might even save, too, since they may be able to purchase their own homes; plus, because Amendment 5 also reduces the assessment cap on non-homesteaded property from 10% to 5%, they'll probably see fewer rent increases from their landlords who won't have their property taxes climb as high as they would otherwise.
• This may also finally be the impetus to create a tax on internet sales purchases.  I know...how is that good you're thinking.  We lose a boatload of revenue everyday because of internet commerce.  This puts local businesses (a major source of employment) at a distinct disadvantage.
• Sales tax is paid by everyone based only on their level of consumption which seems fairer to me than paying more tax because the market value of my home has gone up.
• Everyone pays the same sales tax rate.  Right now, your property tax and your neighbor's property tax can be greatly different, even if your homes are identical.
• I don't mind having tourists help us out in this regard.

It may not be perfect and I am sure that you'll hear plenty of arguments against it as we get closer to the election but I think, in the long run, this amendment stands to help Floridians in many different ways.  We need tax relief, bigtime.  As we have all learned, lately, the housing market is a huge engine in our economy.  It's time to crank her up!

Of course, no one (especially me) has a crystal ball to project the future but real estate experts all seem to be lining up, along with supporting data from the Sarasota MLS, to say that we are either at the bottom of our market now, or we are very nearly at the bottom.  After all, sales have increased each month since the beginning of the year and inventories have been declining.  Pending sales have also continued to trend upwards.  Fewer homes on the market means more stable prices.  On the other hand, as long as there are short sales and foreclosures selling at the low end of the market range, there will continue to be downward pressure on prices.  So, do you bet on the continuation of downward price pressure, or do you bet on the fact that homes are selling at an increasing rate? 

But wait!  If you are trying to figure out the market (as many people are) you are making a mistake.  If you buy now, sure, you might see the value of your purchase go down a little.  You might not, but you might.  The key here is that prices are favorable now and rates are good, so instead of trying to time the market, concentrate on finding the home you love and getting it at a great price.  Another consideration:  there are experts predicting now that loan rates will hit 7% in mid 2009.  If you decide to sit on the sidelines now and rates do go up, you may actually cost yourself some money.

Finally, according to a recent study by real estate site Trulia.com, homes located in neighborhoods with highly rated schools tend to hold their value better than most.  Lakewood Ranch is fortunate to be blessed with highly rated schools which, when combined with all of the community's other benefits, means that our market is more likely to rebound faster than the rest of the state and nation.  And that is exactly what the data indicate.

Have you ever been to Watercrest in Lakewood Ranch?  This development consists of nineteen buildings, each with three residential floors above a ground floor level that houses two-car garages for each unit.  All (with the exception of one) offer spectacular views of beautiful Lake Uihlein and some overlook two holes of the Legacy Golf Course.  Now, luxury condos on water aren't really much of a story but, lately at Watercrest, the prices have fallen to such an extent that a savvy buyer can now purchase one of the three floor plans for prices that were never possible before.  Sure, some are short sales and some are foreclosures but these are usually the first to sell and they have caused many of the resales to adjust their prices to reasonable levels, too.

For example, in the past 90 days, seven condos have closed in Watercrest.  The Sanctuary floorplan, the largest of the three at 2482 square feet, represent two of the seven sales.  Although one was new (actually the builder's furnished model) the other one sold for $400,000, down from an asking price of $525,000!  It previously sold in November of 2005 for $715,000!

Four of the seven sales were the Mirabel floorplan, at 2287 square feet.  One was also a furnished builder's model.  The others sold for $389,000 (previously purchased 12/05 for $725,000), $361,000 (previously purchased 5/05 for $429,300), and $326,111 (previously purchased 11/05 for $825,000!)

Another of the smallest units, 1916 square feet sold for $345,000 and it was previously purchased for $424,900 back in July 2005.

Many of these units were purchased by speculators because this development came on line at the height of the wildly increasing real estate market of the time.  Clearly, there's been a major correction in our area but many indicators are creating the belief among the experts that we have either hit the bottom or are very near to it.  Will we see crazy runups again?  Probably not for a while.  But.....for buyers looking for a higher quality condominium living experience, in a great location, with fantastic views, it is hard to beat the values now at Watercrest in Lakewood Ranch.

True, I don't know all the details but I just heard about a non-profit organization working with Bank of America to provide home purchase loans and refinancing loans to those who might not normally qualify, and at a better rate (almost a point below market). 

As I understand it, they offer a 30 year fixed, with up to 100% financing, with no mortgage insurance, no pre-payment penalty, and no points.  They accept non-traditional credit references (utilities, rent, etc.), take into account undocumented forms of income (up to $1200 monthly) and will accept a seller contribution of up to 6%.

Furthermore, there's no minimum credit score, and even bankruptcy may not be an obstacle.  I'm sure there are some limitations.  For example, I believe only incomes up to mid $50's, I've heard, qualify and the house probably can't be priced over some level.  I'll try to find out more information and I'll add it once I do.  In the meantime, if you'd like to talk with a Bank of America loan representative, I can suggest you contact Kimberly Mathias at 941-907-2350.  She's familiar with all of the mortgage products available through Bank of America.

Although it was a bit before my time, it wasn't so long ago that real estate agents used big books of listings and received updates (new pages) in days (I guess through the mail) rather than in seconds through the internet, as it is now.  I can't imagine what they had to do to search for a listing matching a buyer's wants and needs.  Anyway, it made me start thinking about technology and real estate.

One of the first things I did when I started with Lakewood Ranch Realty was to establish a new website for the purpose of marketing myself, and as a means of providing educational material to prospective buyers and sellers so they might view me as I am....not so much a salesperson as a real estate buying and selling assistant or helper (consultant seems too pretentious) who is dedicated to a high level of customer service.

To assure a higher level of service, I utilize an internet program called Top Producer which not only functions as an email tool, a calendar, a word processor, a customer database, a report writer, a marketing management tool, etc., but also helps me manage listings and closings so important (and potentially deal breaking) steps and deadlines aren't overlooked. 

Since Lakewood Ranch is sandwiched between Manatee and Sarasota counties, I belong to two MLS systems which allows me to more completely search all available listings and more thoroughly market my listings to the greatest number of agents.  I also use the MLS to assure my prospective buyers are notified (by an automatically generated email) of all appropriate new listings and price changes as they happen

Both REALTOR® boards utilize the GE Supra key lockbox, which is a device that not only restricts access to authorized realtors during prescribed hours via a wireless device, but also keeps a record of each user and the date and time the box was opened.  All of that data is then reported back to the Supra system.

Another tool we use is the Centralized Showing Service (or CSS) which makes it very easy for agents to schedule showings.  When we enter a listing into the MLS, agents wishing to show the property on a particular date and time can either call an 800 number or go online themselves and schedule it on the CSS website.  This is far more efficient than having to call a listing agent who is often not available right away to schedule a showing.  Agents with buyers take the path of least resistance.  If they can't show one property because they can't reach the listing agent, they show another.  There are too many listings out there now to waste time chasing after an agent.

We also use VoicePad, a company which allows a prospective buyer to call a toll free number (from either a "For Sale" sign or from a printed ad) to hear an automated, customized recorded message about the property.  More than just a message though, VoicePad offers the caller an opportunity to be connected directly to me (or to a lender) and it captures the caller's contact information with their knowledge.  It works 24/7/365.

All of these things are powerful technological tools by themselves but I wanted a way to have them with me all the time in a small, easy to handle package.  Enter the Treo 650.  This isn't meant to be a commercial but this phone really makes me far more effective.  For example, when someone is viewing my website (maybe you!) and decides to complete one of my many contact information forms, I receive an instant email and text message telling me what they need and how I can reach them.  It's funny, I've actually astounded people who were still sitting at their computer viewing my website when I called.  Since MLS listings also go to the REALTOR.COM website, I am able to receive inquiries from there directly to my email which I access through my Treo 650.  Speaking of the MLS, I can access the internet with my Treo so I can view the MLS while I am out with clients, or I can view the listing data that is downloaded each morning directly into the Treo as the new Supra key code is received.  Just about anything I can do with Top Producer is viewable on the Treo, too, so I have all of those capabilities with me.

The Treo doubles as my Supra lockbox "electronic key" so I use it to open the lockboxes, to release the shackle of a lockbox once it is no longer needed, to read the history of the lockbox (was the property shown? when?), and to program the box if the owner doesn't want any access after 6PM or before 9AM, for example.  Of course, Centralized Showing Service would know that, too, but this makes it a sure thing. 

When CSS does schedule a showing, I want to know about it, of course.  They send my Treo an email with the agent's name, and the date and time of the showing.  And, because I have set up CSS to do so, the automatic request for showing feedback sent to the showing agent can be viewed by me as soon as it's available....yup, right from my Treo!

Remember VoicePad, the automated listing information tool?  You probably know what I'm going to say...the caller's contact info is captured AND forwarded to my Treo so I can call them back even as they are sitting in the driveway, or reading our ads.  How valuable is that to a seller?   

It's amazing stuff compared to only a few years ago.  But, it all goes back to customer service.  Just like building a house, having the right tools makes it much easier to buy a house or sell a house.

That was my response this morning to someone who told me they were thinking about selling their home in the next six months but they were going to wait to see what happens first.  Why would I, a person who is known for being cautious and conservative with money (especially other people's money), make such a straight forward prediction?  Simple.  There are many things you can't predict but there are some that you can. 

Supply and demand is a very good predictor of price change.  For more than a year, we've had a steadily increasing inventory of single family homes and condos while maintaining a relatively low number of sales.  Supply is up and continuing to rise, demand is low and not even keeping pace with the increase of supply.  These two factors mean one thing...falling prices!

The falling prices we've seen this past year are proof of this.  Unfortunately, until we see a diminished inventory or a rise in purchases, there's no reason for the falling price trend to stop.  So, by procrastinating a move you know you must make, you are simply taking money out of your pocket with each passing month.

So what to do?  If you really don't have to sell, and you have the guts to tough out the down turn, it's probably better not to go on the market now.  Markets are cyclical and eventually the market will stabilize and probably go back to a sellers market.  After all, this is Florida and thousands of people are moving to this state every year.  Remember supply and demand?  Although there may be blips from time to time, the overall demand for housing in Florida will continue to be high. 

On the other hand, if you must sell, you better be smart about it and be ahead of the downward curve.  If you're priced above or equal to similar houses in your area, you might as well accept that you are going to sit there for months.  You'll gradually lower your price to keep up with the pack but you'll still sit.  It's better to bite the bullet right away, attract the only buyers out there right now...the bargain hunters...and get it done!

Oh...let me add this about buyers.  Prices are roughly where they were two years ago, give or take.  Interest rates are low.  If you find a house you like at a reasonable price, buy it.  Don't wait to see if the seller is going to keep coming down.  Chances are that someone else is going to find it and buy it and you'll hate yourself for letting the right house get away.

OK...I'll admit it...this is one of those "do as I say, not as I do" things but trust me, this is good advice.

Whether you're selling a large house or a small condo, the condition of your front door and front entrance is very important.  The best thing you can do is have a spotless, fresh-looking entrance.  I'm not talking about the curb appeal, although that's very important, too.

No, I'm talking about either washing the front door or, if needed, actually repainting the door and frame and possibly changing the doorknob, too.  Additionally, if you have those little dried mud nests or those gnat-like bugs on your stucco or siding, clean them off regularly.  Whatever else it takes to make your entrance look super clean and new is worth it.  Like it or not, your entrance either says "Buy me" or "This place is in need of work." 

Yesterday, I showed two sets of buyers six condos.  One was brand new and looked great.  One was about seven years old but looked like new.  The others were older but looked dated, shabby and, in one case, falling apart.  ALthough other factors were in play, I can tell you that they preferred the places with the new entrances.  Which would you prefer?  Would you rather come home to a well manicured neighborhood or one that looks rough and uncared for?

It's a low cost fix that can net you a bigger (or faster) reward.

It seems that blogging has become epidemic on websites so I thought I'd give it a shot and see what happens, myself.  Mostly, I'll deal with Real Estate issues, particularly as I come across them.  However, my first post is going to be a little different.

Yesterday, at our Summerfield office, a small black dog with medium length hair and white/grey marks showed up...hot, thirsty and lethargic.  We brought her in, gave her some water, and looked on her collar for tags.  Unfortunately, she had none.  After some of the ladies in the office canvassed the area for an owner, I took her over to Animal Hospital at Lakewood Ranch (who I can personally recommend) to see if she was chipped.  Although she wasn't, they gave her a quick check, something for her fleas (which I didn't know about until after driving her over there <sigh>), and some food...all at no charge.  She appears to be older but the vet folks thought she could be only 4-5 years old.

Anyway, if you own this pup, or know the owner, please have them call Lisa at our Summerfield office.  941-739-5197

Update:  It seems the owner saw one of the flyers Lisa put around the neighborhood and called to claim the dog.  Sadly, the owner said this isn't the first time the dog has escaped yet she still hasn't arranged to have an ID tag placed on the collar.  Oh well...maybe this time.