Florida Real Estate News

It’s a buyer’s "make an offer" market. Everyone knows that.

What a lot of buyers don’t know is that if cash out of pocket at closing is one of their impediments to buying, that they can solve that issue in the price negotiation with a seller.

Most lenders will allow a seller to contribute up to to 6% in "seller incentives" to a buyer for approved line items at closing. If a buyer is going to offer a seller a lower purchase price, part of the offer can involve the seller contributing up to the full 6% to the buyer’s costs at closing. In addition to standard closing costs on the transaction the items picked up by the seller could also include points to buy down the interest rate or even a decorating allowance.

If the buyer has not yet selected a lender, a contract addendum could read something to the effect that the seller will contribute 6% of the sales price to buyer’s closing costs in a manner acceptable to buyer’s lender. When the buyer settles on a lender, the lender will tell them what can be paid by the seller per their guidelines, and the closing statement is prepared accordingly.

VA loans are great for military buyers. They allow for no money down loans up to the VA limit without PMI (Private Mortgage Insurance). The actual loan is originated through a traditional bank with the VA guaranteeing a portion of the loan. The VA loan guidelines also spell out what fees and closing costs can be charged.

In order for a condominium to qualify, the entire project must be approved through the VA process, which can be time consuming. The benefits to both the veteran and the developer can be large. The Chelsea Lofts in the Riverside historic district of Jacksonville Florida recently obtained VA project approval and have already received contracts from NAS Jax (Naval Air Station Jacksonville), making the process worthwhile. The project’s proximity to NAS Jax and contemporary loft interiors have been popular with the base squadrons.

You can view a list of approved VA condominium developments here: VA CONDO APPROVALS

So just what is Property Tax Portability? Recent Florida legislation allows residents that are moving from one primary residence to another to bring the accrued property tax savings on the taxable value of their existing homestead property with them to their new primary residence. This can mean up to a $500,000 decrease in the taxable value of the new home, which translates into a significantly lower property tax bill. Under the old "Save Our Homes" legislation, Florida homestead residences are protected to a maximum 3 percent increase in the assessed value each year. Without the portability provision, if you moved from one homestead to a new one, you lost all of the assessed value savings created by Save Our Homes and your new home was assessed at current market value. The Portability Amendment makes that accrued tax savings "portable" so you can transfer up to $500,000 of your accrued Save Our Homes benefit to your new home. EXAMPLE: You sell your current Florida Homestead that has an Assessed Value of $200,000 and a Just (Market) Value of $350,000. $350,000 – $200,000 = $150,000 in Tax Benefit. You buy a new home for $400,000. The $150,000 SOH tax benefit is applied to the new homes Just (Market) Value to creates a lower Assessed Value. So if you own a home in Florida and are considering buying a new home while market prices are at historical lows, a dramatic change in property taxes may not be something to influence your decision. Homeowners who sell one home in order to move into another full time, will find that the taxes on their new property are adjusted to reflect the savings from their old home.

It might not be what you think. The $8,000 first time homebuyer tax credit provided for home purchases in 2009 has a few definition wrinkles that include more people in the incentive than I originally thought. According to the IRS newsroom website, a first time homebuyer is anyone that has not owned a home in the last three years or had a home destroyed by a natural disaster. Its confusing. Maybe they should have called it "the $8,000 recent homebuyer tax credit". Anyway, there are quite a few terms and qualifications. Here is a link to some information that I pulled from the IRS newsroom site: LINK TO IRS NEWSROOM. Anyone making a purchase might want to check it out.

Only experts tell us that purchasing a home or other kind of property is one of the biggest investments you’ll ever make and that’s true. No matter where you finally decide to buy your home, even if you want to go with the high end properties like a luxury Florida waterfront homes in St. Augustine, you need to be sure that you’re ready for all the financial and emotional responsibilities that go with home ownership. It’s important before you take the plunge into the Florida real estate market that you make an informed decision.

• Before you even start looking, it’s important to make sure that you can afford to take the plunge. And that means you want to calculate your current household budget and the payments that you make already. As well, taking the time to figure out your net worth will give you a rounded picture of where you are financially.
• Make sure that you have an accurate idea of what the new home will cost as well. The step mentioned above should give you an accurate idea of how much you could spend comfortably, and now you need to take into account the other costs that are commonly associated with homeownership. Some of these include repair and maintenance and condo fees when you’ve decided to go down that route.

Before you make any big decisions, it’s a good idea to get in touch with a lender that can pre-approve you for a minimum investment before you start looking for the Florida real estate property of your dreams.

Part of enjoying Florida real estate is being aware that some of the very things that are made to make our lives more relaxing can cause serious injury or even death to a child. Pools, sinks, bathtubs and hot tubs can all be a potential hazard to young children and there are several tips that should be followed to prevent in-home drowning deaths.

• Never leave a small child alone in a bathtub. Not even for a moment. Children are inquisitive by nature and what you might think is only a moment left alone can turn into a serious incident where they can slip underwater.
• Make sure that your hot tubs have a childproof cover. While hot tubs can be one of the more relaxing experiences whether you own a Jacksonville loft or a piece of St. Augustine waterfront property, they can quickly become a hazard to a small child who doesn’t understand the dangers involved.
• Pools need to be enclosed on all four sides. A latch is necessary on the gate as well.
• If you have an above ground pool on your property, make sure that all ladders are taken away when the pool is not in use.

Finally, it’s important to remember that scalding from hot water taps is a major cause of injury to children under five years old. By setting the thermostat for your hot water a little lower, you can reduce that risk and save on your heating bills as well.

It doesn’t matter whether you’re looking for that Jacksonville Loft or a waterfront home in one of Florida’s waterfront communities, you’d need to get organized whether you are packing or unpacking, buying or selling. Remember, the experts advise that it takes just as long to build clutter up as it does to clear it out. They suggest that if you work on one thing at a time, room by room and closet by closet, everything will eventually get sorted out and organized.

Where To Start?

Picking the place to start can be one of the biggest challenges. It’s important to remember before you start in any of the rooms that you’ll want to plan how you are going to get rid of the objects that you want to discard whether they are packing boxes or the clutter that you’ve amassed over the years before you sell.

Several Options

There are several options here including giving some of the things away to charity. You need to find out which ones will come and pick the articles up and at what time. It’s important to remember that whether you’re buying or selling, whether you’re getting a piece of Florida real estate ready for sale or you’re getting ready to move to a Florida waterfront community, organization is the key.

As many people know, there is a lot of potential in the Florida real estate market right now. All the experts are predicting everything from the luxury lofts in Jacksonville to the lovely beachfront properties in Ponce Inlet will rebound to their former market value. With that in mind, people considering investing in one of these Florida waterfront communities should make up a list of the features they will need to look at.

1. Price. Of course the first question is what the property costs. You can even narrow down this aspect to what you need for a down payment. The experts suggest that you look at the price not just for the isolated property but in relation to what people are asking in the immediate area. Remember that real estate agents won’t always show you the bargains only. You’ll need to do some sleuthing on your own as well. 2. Location. And of course it should be no surprise that location is a central issue. Remember that although the immediate neighborhood is critical to the appreciation value of the property, there are other factors that should be considered, including the availability of amenities nearby and what kind of noise disturbances are possible in the immediate location.

When you’re looking at Florida real estate, neighborhoods in transition are another aspect that you want to consider before investing. In a positive transition area older properties are being upgraded to accommodate a new generation of owners.

Not all the real estate dealings in Florida waterfront communities have to do with short sales and foreclosures.

Probate and estate sales represent a source of either investment or residential properties in the Florida real estate market. When the owner of any particular property dies, the property may be sold to clean up the person’s mortgage as well as distribute money to other creditors. Even when the person that passes away has enough money, the property doesn’t need to be sold. The rest of that person’s family usually decides to sell it rather than retain the ownership.

Buying Property Through Probate

If you’re looking to buy a property through the probate process, the method is to submit a bid through the lawyer that is handling the estate. A probate judge has been assigned to the case and after all the bids are in he will review each one. The probate sale has differences from the short sale or foreclosure and the biggest difference is that people who would like to buy the property can inspect the home.

Buying Through Estate Sales In Florida

There are some circumstances where the assets from an estate sale did not need to go through the probate process. In the best case scenario, you might be able to buy in a Florida waterfront community directly from the heirs to the estate. It’s important to remember that in many instances, estate sales of Florida real estate include good bargains because the heirs of the property are anxious to sell.

Mike Manikchand recently pointed out an interesting and disturbing fact about the current state of Florida real estate when he was interviewed for Wired.com. He pointed to several abandoned houses in the Florida waterfront community where he lives and wondered what would happen when the hurricane season started in earnest. Rightfully so, he pointed out that without windows boarded up and other measures taken the homes would be destroyed.

Luckily, not all the stories about Florida real estate have that kind of foreboding. With professional development teams like Cranewoods Development at the helm, many of the most prestigious and luxuriously appointed waterfront communities have homes that have been looked after all through the economic downturn. Along the coast, these are the people that looked after beach homes, condos, and other types of real estate so that the enterprising investor has a chance at some of the best Florida real estate at cut-rate prices.

There is a wide variety to choose from here as well. If you’re interested in an urban lifestyle that is close to the water’s recreational activities, these are the people who can offer you luxury condominiums in the Jacksonville area close to the water while and a stone’s throw away from all the urban amenities like fine dining and cultural activities.

Florida real estate is still some of the finest investment property in the nation. The people at Cranewoods Development recognize this and have maintained all of their interests in the area accordingly.

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