West Pasco Real Estate Blog

I find myself agreeing more with those at Fox news than MSNBC about health care reform.  I do believe that everyone should have affordable health care available to them.  But at what cost?

Why do those in the ruling party have to make exclusive deals to get this done?  The folks in Louisiana and Nebraska get special consideration over residents of other states to achieve this reform.  Why?  If it doesn't stand on it's own merits than maybe it deserves more scrutiny.  Unfortunately, many who are close to me really don't care that much about it.  Alot of apathy.  This may be the reason the Democrats can do what they are doing.

Again, I believe that we should all have access to the best health care available.  But should health care insurance be required?  And what does that mean?  If I am having difficulty paying my mortgage, the government is going to fine me if I can't afford premiums?The maximum fine would be about 180 dollars a month.  Insurance for my family currently costs about $1350.00.  A big difference between the two.  So if I can't afford coverage for my family, I get fined to help cover some one else.  Perhaps an illegal immigrant.  Perhaps a non-working wealthfare recipient.  Doesn't seem right.  But maybe it's the only way for everyone to get health care. 

Tomorrow is Christmas.  Merry Christmas to all!  We'll visit health care again Saturday.  If anyone is listening, write me back!  

Lots of short sales out there right now.  Gets a Seller out of a house that they're upside down on gets a Buyer into a good deal.  But there are some things people should be aware of:

If you're a seller:  You will need to provide financial information to the lender, along with a breakdown of your monthly budget, pay stubs, and various other information that they may require.

If you're a buyer:  You'll need to be patient when submitting an offer.  The lenders operate on their own time table, it could be a few days to several weeks before a response is obtained and because it is a short sale, the lender is calling all the shots.  The seller basically signs off on your offer immediately and the offer gets forwarded to the Lender for their approval.

You should also expect that your "short sale" purchase will need some work, and well be sold "as is".  For those of you unaware what an "as is" sale means, it simply means that the seller and/or lender are not going to pay for repairs.  You, as the buyer, still have the right to inspect and can decide if you are in agreement with taking the property with it's "defects". 

A short sale can be a great deal but you do need an agent who is well versed in the requirements of short sale properties.  Call us if you have any other questions or post here, and we'll be happy to provide what answers we can. =)

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.