West Pasco Real Estate Blog

Immediate: Require cities and counties to cut property taxes based on a formula tied to how much they’ve increased taxes in the past. The lower rates would take effect with the November property tax bill. Areas where taxes have grown the most on a per capita basis would be required to cut taxes the most. Conversely, cities and counties with the lowest increases would face the smallest cuts.

Long-term: Voters would have to approve a plan to replace Save Our Homes and the homestead exemption with a tiered, percentage-based super exemption. For instance, the first $100,000 of a home’s value might be 70% exempt, the next $100,000 would be 50% exempt, and so on. Homeowners would be able to keep their Save Our Homes benefits (3% cap annually) if that yields greater savings than the super exemption.

Still undecided: a tax relief plan for elderly, commercial and non-homestead (second and vacation) property owners, as well as tax incentives for affordable housing. For commercial property owners, FAR recommends the Legislature place a 10% cap on yearly assessments for non-homestead property and assess property based on its "present use," not "highest and best use."

HUD homes offer many buyers the chance to purchase their home with built in equity, and allows investors some fantastic deals, as well.

When the foreclosure rate is particularly high, as it is in 2007, HUD's inventory swells, and there are deals to be made. HUD deals are very different from traditional purchases, however, so make sure and follow sound advice before purchasing your first HUD home. Follow these tips, and you will be on your way.

1. All HUD Homes Aren't Great Deals

Many buyers mistakenly assume that, if the US Department of HUD is selling, it must be a great deal. This couldn't be further from the truth! Many Realtors relentlessly market HUD homes to drum up business, and this can create a glut of HUD buyers. When the HUD inventory is particularly low, oftentimes buyers will bid the property up to, or above the fair market value. Look at every HUD deal on its own merit, and make your decision based on that.

2. Understand the Bidding Process

HUD purchases are very different than conventional deals because they follow a "blind" bidding process. The bidding date is released by HUD, and each buyer submits their best offer-without the knowledge of any other bids. As long as HUD finds the highest offer acceptable, that offer is accepted. HUD retains the right to refuse all offers.

3. Know the Difference Between "Owner-Occupant" & "Investor"

One of HUD's goals is to increase the number of US citizens who own homes. Because of this, they give preferential treatment to owner-occupants over investors. Owner-occupants have the first 10 days to bid on any home before it is released to investors. A buyer may bid as an owner-occupant once every two years. Make sure and bid honestly-otherwise it is illegal, and can result in hefty fines.

4. Anticipate Repairs

You are allowed the opportunity a third party inspection before closing, but buyers cannot negotiate repairs based on the results. Backing out of HUD deals & retaining your earnest money is trickier than conventional purchases, too, so you may run the risk of losing your earnest money. Make sure and go through the home thoroughly before bidding on it.

5. Continuously Monitor the Inventory

As foreclosure rates rise and fall, so does HUD's inventory. The laws of supply & demand definitely apply here-when the inventory is high, your chances of getting a great deal are higher than when they are low. Follow the asking price & sales price of HUD homes-if they are selling far over asking, it might not be the time to buy.

6. Make Sure Your Realtor & Lender Know the Process

After your bid is accepted, the paperwork begins! In Texas , HUD requires that you submit original signed (in blue ink) paperwork to the HUD agent's office within 48 hours of the bid's acceptance. If the paperwork is incorrect, you are allowed one revision-which must be received within 48 hours. They are just as strict with a lender's closing documents-so make sure both your Realtor & lender are very familiar with the HUD process. Oftentimes, the HUD agent's office will be located in a different city-and often, the escrow agent will be located in yet another city-this can put a very interesting twist on the process, and time constraints.

7. Act Quickly & Decisively

Because HUD places very strict time constraints on bidding, and due to the bidding process, you must act quickly & decisively. You will typically have 1-2 weeks from the date HUD places the property on the market until the bidding period begins-and more often than not, the property will be purchased on the first day of bidding. Make sure & exercise your due diligence, and make your decision quickly-you often won't get a second chance.

HUD homes can be fantastic opportunities for a buyer or investor to get a great deal on a property. However, because the purchase process is quite different, make sure & do your research before attempting to find your first buy. Follow these tips, & you will be on your way to a successful transaction!

People are always wondering what they should do to add value to their home.  What expense is worthwhile and what isn't?  Here in the West Pasco area, there are several improvements that can be made to older homes that greatly increase the value of the home as well as the marketability.  The market has changed here quite a bit over the years, being formerly a retirement area with a lot of 2 bedroom homes, to a bedroom community for families who commute to Pinellas & Tampa jobs.

Add a Bedroom and or Bath:  If you can change a 2 Bedroom 1 Bath home into a 3 Bedroom 2 bath home, that's a huge update in value and marketability.  But how should it be done?  I normally recommend against taking a porch and changing that unless it can be done properly.  Also, the flow of the home needs to be maintained.  It's not fun to have the only access to the back yard be from a bedroom.  Perhaps a window in a kitchen or living room can be replace with a door to fix the problem? 

Many homes have a layout with a family room that lends itself easily to becoming a third bedroom, even a nice master bedroom and bath!  Putting up a wall, door & closet can cost as little as $1200 but will increase your home's value by many thousands. 

More important is the increased marketability.  This mean more people will be interested in the purchase of a 3 bedroom over a 2 bedroom home because someone who needs 2 bedrooms will consider a 3 bedroom home, but someone who needs 3 bedrooms may not consider a 2 bedroom.

The cheapest home improvements with the greatest monetary return is painting.  Most people are able to make this improvement themselves and will have a clean-looking home to show for it.

Replace dated or worn flooring:  This is a no-brainer in my opinion.  Some people don't want to replace the flooring for fear that whoever buys their home won't like their choice.  Then go with a neutral color carpeting, or neutral tile, or wood flooring or pergo.  Whatever your preference is, but at least you'll get a little enjoyment out of it, and the buyer will see what your home looks like cleaned up.  You can offer a flooring credit, but actually seeing the new flooring in place is a much more effective tool. 

Updating a kitchen or bathroom will give you a nice return.  The quality of the items you use and the cost of items you use should also depend on how long you plan on staying in the property.  When improving a property, always think about re-sale, however, if you will living in the property and using the upgrades - do feel free to spend a little more for what you want.  You may not recoup the entire cost of the upgrade - but what's you use of the upgrade worth?

Landscaping can be a low cost improvement with big results.  If you can do the work yourself, you'll reap lots of reward for raking, pruning, mowing, cleaning, planting, etc.  And some nice mulch goes a long way towards curb appeal which should NEVER BE UNDERSTIMATED!  If people are drawn to the exterior, they may look inside.  But if the outside is off-putting, they may never cross the front door threshhold. 

Open up the area:  Maybe you can take down a wall or half wall to open up an area.  Taking a half wall down in an old kitchen and installing a breakfast bar can go a long way, and it's not that expensive to do.

Raise the Ceiling:  If you're doing a major renovation, it may be worthwhile for you to raise the ceiling in the living room to the rafters creating a vaulted ceiling and adding loads of vertical space!

Just keep in mind how long you'll be using the improvement when deciding how expensive you're going to go. 

In this crazy real estate market, lots of people have been shying away from buying real estate or investing.  Meanwhile, there are some deals to be had!  You have to be smart about it and use a good Realtor (hmmm, I could help you if you want), but due to the soft market, people who have to sell are selling.  Real Estate is now and has always been a long-term investment.  How long term depends on you.  In this financial climate, you should expect to hold your property for at least 2-3 years to realize a profit.  Longer is better.

What have you done for your Retirement?  If you've got 20 years before you retire, you can buy a rental, have it paid off in 20 years and have a nice little monthly income when you retire.  Do this with more properties and you can multiply your income.  How much is up to you. 

Foreclosures on the horizon.  We're just seeing the tip of the iceberg - there will be lots of foreclosures coming up as people who for various reasons (ARM loans have increased, insurance increased, Value decreased) are giving homes back to the bank.  Banks are making deals to dump these properties.  Short sales are running rampant -- you have lots of options that we can discuss.

    Okay...let's do the numbers.  As of  Monday the 23rd, the number of active properties in West Pasco stood at 5928.  This is a big number.  September 2005 saw this number at around 1650.  The average list price for these active homes is about $240,000.00.  By comparison, the properties that are currently under contract have a list price around $197,000.00.  As in any market, buyers look for the better deals.

    Another indicator of the market health is DOM (Days On Market).  The average active property has been on the market for 102 days...without selling!  The properties that have a contract on them have been on the market for 87 days on average.  They are better priced so they are on the market less days! 

I get questioned by Sellers all the time whether an open house would be a good thing or not.  The truth is that open houses in a decent market are there, not just to sell your house, but to fish for buyers.  Is that a bad thing?  Not at all, however, I truly believe that if I'm doing the right thing with my advertising, my signage, my info box, that I don't need to sit in your house for 4 hours hoping that someone who is qualified (i.e. has money and/or credit) and is suited for your home meanders by.  That doesn't mean that an open house will never sell a home, we've certainly been successful with open houses, however, our best success was during the booming real estate years. 

I believe the best time market to hold a house open is a seller's market.  With so many signs out there right now, and Realtors jumping through hoops to get you to notice their listing, buyers are yawning and moving on.  So hold the house open if you want to, but I think there are more productive ways of spending a Sunday afternoon.  If open houses sold homes, I'd be holding one open right now . . .

I don't want to jinx anything, but woo hoo, the real estate market is really heating up.  I'm so glad to see that the market has stabilized and people are showing confidence in making home purchases again.  As a Realtor, obviously, this affects me and my wallet greatly, but what amazed me was how far-reaching the effect of a troubled real estate market was.  Mortgage people, banking people, restaurant owners & staff, homeowners unable to borrow from equity and make home improvements, contractors, pool people, the list goes on and on.  When people have less money, they spend less money and it affects everyone!

Our lawmakers appear to have finally jumped on the bandwagon to make some changes.  Are they a drop in the water?  Maybe, but at least they've halted the proposed increases that were looming.   In my opinion, it certainly took lawmakers forever to address the insurance issue while the economy continued to dive.  Why it took 6 months to schedule a meeting to address a pressing issue is beyond me.  I would like to say, though, that our local Representative, Mike Fasano, seemed to be the only lawmaker who had a clue as to what was going on - he saw that we were in crisis.

Anyway, more later.