The Gate Arty Blog - August 2008 Archive
Customer Satisfaction Winner
Thursday, August 28, 2008 - By Gate Arty
Keller Williams Realty ranks highest among real estate companies in satisfying home buyers according to the J.D. Power and Associates 2008 Home Buyer/Seller Study. The inaugural study measures customer satisfaction of home buyers and sellers with the largest national real estate firms. Overall satisfaction is determined by examining three factors for the home-buying experience: agent (65%); office (21%); and services (13%). In the home-buyer segment, Keller Williams achieves a score of 831 on a 1,000-point scale, and receives highest ratings from customers in all three factors.
The study finds that despite the popularity of home-buying and -selling resources on the Internet, real estate agents are key to customer satisfaction with real estate companies. A large proportion of both home buyers and sellers rely on the Internet to facilitate the buying or selling process, with 68 percent of buyers saying that they used Internet tools to help them in the purchase process and 61 percent of sellers reporting that they used a Web site listing to market their home. In addition, among home sellers, online methods are the most important aspect of marketing. However, the agent factor carries the greatest importance among the factors that comprise overall satisfaction among both home buyers and sellers.
The study also finds that the average time a home for sale remained on the market was slightly more than six months, although home sellers represented by the top-ranking real estate companies report that their homes were on the market for slightly less time—approximately five and a half months, on average.
Additional noteworthy study findings include the following:
- Nearly one-half of respondents (46%) report using recommendations from family or friends to find their real estate agent.
- Approximately 28 percent used the Internet, while 23 percent used an agent they had used previously and 11 percent used a printed real estate guide.
- On average, home buyers were shown approximately 13 homes before making a purchase.
- Home sellers report that, on average, their home was shown approximately 11 times and approximately five open houses were conducted before the sale occurred.
The 2008 Home Buyer/Seller Study includes 3,670 evaluations from 3,205 respondents who bought or sold a home between April 2007 and June 2008.
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Sunday, August 24, 2008 - By Gate Arty
What follows is a brief synopsis of the differences between a FORECLOSURE and a SHORT SALE and their affects on certain issues.
Fannie Mae Loan: A homeowner who loses a home to foreclosure is ineligible for a Fannie Mae backed mortgage for a period of 5 years. Homeowners who successfully negotiate & close a short sale will be eligible for A Fannie Mae backed mortgage after only 2 years. For investors that allow a property to go to foreclosure, a Fannie Mae backed investment mortgage will be unattainable for 7 years!
On any future 1003 application, a prospective borrower will have to answer "YES" to question C in Section VIII of the standard 1003 that asks: "Have you had property foreclosed upon or given title or deed in lieu thereof in the last 7 years?" There is no similar declaration or question currently regarding a short sale.
Credit Score: A foreclosure can lower a credit score anywhere from 250 to over 300 points. Typically this will affect a score for about 3 years. A short sale will only affect your credit report to the extent that late payments will be reported. The satisfaction of the mortgage resulting from a short sale will be reported as paid or negotiated. This can lower the credit score as little as 50 points just as long as all other payments are being made. The affect of a short sale can be as brief as 12 to 18 months.
Credit History: Foreclosure will remain as a public record on an individual's credit history for 10 years or more. A short sale is NOT reported on a credit history. In this instance, the loan is typically reported, "paid in full, settled."
Market Update - July Real Estate Sales
Wednesday, August 20, 2008 - By Gate Arty
The MidFlorida MLS reports that the Lakeland Association of Realtors closed 164 homes & the East Polk board reported 120 sales in June. Overall there were 284 homes sold in Polk, up from 282 homes last month. A year ago in June 2007 there were 275 homes sold, so the news should be reported that Polk sales are up from last year!
The average list price in Lakeland decreased to $180,303 from $183,672 last month, and the average sales price decreased to $169,351 from $171,773 last month. The average days on the market increased to 134 from 124 last month. In East Polk, the average list price decreased to $147,019 from $165,987 last month. The average sales price dropped to $136,876 from $153,489 last month. The average days on market decreased to 151 from 155 a month earlier.
What price categories sold last month? In Lakeland the majority of sales occurred in the $140,000-$159,999 price range, which represented 11.59% of all sales (19 units). Both the ranges of $120,000 - $139,9999 price range and $160,000 - $179,999 represented 10.37% of sales, or 17 units sold. The upper end market remained sluggish, with only one home selling for over $800,000 and 13 homes selling for over $350,000 (last month 11 homes sold for more than $350k).
In East Polk there were 18 sales in the $120,000 - $139,999 price range, which represented 15.00% of total sales. The second most popular category was $140,000-$159,999, which represented 12.50% of the market (15 sales). The upper end also was sluggish, with only 2 homes selling for over $350,000, down from 6 last month.
Foreclosures continued to dominate Polk County and we haven't seen much sign of a significant slow down. In July there were 755 foreclosures, down from the record setting number of 888 foreclosures in June. If you consider that all of Polk County sold 284 homes last month, and there were 4,706 Lis Pendens filed so far for the year . . . . WOW! Just to put things in a bit of perspective, however, Hillsborough County had 1,767 Lis Pendens filed. This was up from 1,659 the prior month. Short Sales (Pre-Foreclosures) & other distressed sales will continue to dominate this market for some time.
Insurance NOW
Saturday, August 16, 2008 - By Gate Arty
Experience has shown me that many prospective home buyers shop for homes during the summer months for a variety of reasons. First off, there is more time. Many people take vacation time during the summer months. Other "snowbird" retirees elect to buy a summer home during their regular time here in sunny Florida. More often than not however, the reason involves children. Many parents have told me that they would prefer buying during the summer so they will not have to uproot & disrupt their children's school year midway, in the event that a change of school is necessary.
One important thing (especially in Florida) to consider if you are buying during the summer is HURRICANE SEASON! For buyers who have identified a home and are in the closing process, thoughts of mortgages, inspections, & moving dominate. Another important item to consider is binding your homeowner's insurance policy. One can not close on a purchase transaction without binding insurance coverage if there is a mortgage attached to the transaction. At many points during the hurricane season, writing & binding policies is suspended, however. This can & will delay your closing.
There are two ways insurance companies determine when to temporarily suspend issuing new coverage:
1. When the National Hurricane Center issues a tropical storm or hurricane watch or warning.
2. When a tropical storm or hurricane enters a company’s “storm box.” A storm box is literally a box drawn on a map around a large geographical area. When a name storm enters that "imaginary box," policies are no longer written or bound until the threat of said storm has passed.
There can be delays in real estate closings when availability of insurance coverage is suspended. This is unfortunate, but suspensions only span a couple of days, unless there has been a major hurricane landfall, and then the delay could be longer. When a company suspends binding privileges it only affects those people who don’t already have insurance. If you are in the midst of a closing & have already secured insurance, your closing will not be delayed.
In the event a real estate closings are delayed, the properties are still, of course, insured. If it is a new home, it is still covered by the “builder’s risk insurance.” A re-sale property theoretically would still be insured by the current owner.
Hurricane Tracking
Friday, August 15, 2008 - By Gate Arty
Hurricanes are a major part of life in the Southeast portion of the United States. If you would like to track the course of name storms during the Hurricane season, go to The National Hurricane Center website. Get up-to-date reports, and make sure you are prepared in the event you are in the path of a name storm or hurricane.
Council approves CSX project
Thursday, August 14, 2008 - By Gate Arty
The Central Florida Regional Planning Council voted 10-1 to approve the controversial development of a proposed 318-acre rail terminal site in southern Winter Haven. The terminal will be built on a 1,248-acre site. After the terminal is built, the plan is to build a major distribution center and office park Lakeland City Commissioner, Howard Wiggs, who serves on the planning council board, cast the lone dissenting vote. This approval has been forwarded to the City of Winter Haven. The project will be spearheaded by CSX subsidiary, Evansville Western Railway.
Minutes before the vote, Commissioner Wiggs made a motion that the vote be delayed for at least six months. At that point, the Florida Department of Transportation would have completed a study on rail routes. The hope would be that alternatives to routing trains through downtown Lakeland could be identified. The motion for delay failed.
The Winter Haven Planning Commission will hear the development proposal on Sept. 24 and the City Commission is scheduled to take action Oct. 29.
Lakeland's USA International Speedway SOLD!
Monday, August 11, 2008 - By Gate Arty
Polk County's many avid NASCAR fans are mourning the loss of an important institution.The USA International Speedway, located at 3401 Old Polk City Road, has closed its doors after its final race On August 2nd and is now under new ownership. The site was previously owned by Bob Brooks, the founder of Hooters restaurants who died in July of 2006. The facility first opened in 1971 with a quarter-mile track under the name Lakeland Interstate Speedway. It was sold in 1995, and has operated as USA International Speedway since. The paved oval stock-car track is nationally renowned as a popular testing spot for NASCAR teams.
Higgenbotham Auctioneers held an Absolute Auction on August 9th where everything was up for sale. All things automotive were sold including equipment, cars, grandstands, pictures, compressors, transmissions, etc. . . . .everything!
The 47-acre tract fronts on Interstate 4, and studies have shown that the North Lakeland site is said to have access to more than 8.5 million people within a 100-mile radius. The new owners are Rockefeller Group Development Corporation and they have acquired approximately113 acres (thus far) of the land off Interstate 4’s exit 38 in Lakeland. The Manhattan-based company hopes to attract a commercial tenant. Rockefeller has plans to build an industrial park on the site with more than 1 million square feet in distribution space. The park would be targeted at large-scale tenants. Construction is scheduled to begin in the first quarter of 2009.
The sale does not include Lakeland Motorsports Park located adjacent to USA International Speedway. That facility, which includes a drag strip and mudbogging pit, is owned by Roy Spiker of Lakeland. Business will continue as usual at that location.
Housing Stimulis Tax Credit
Wednesday, August 06, 2008 - By Gate Arty
A major component of the recent housing stimulis legislation was the temporary first-time home buyer tax credit. According to Census data, first-time home buyers constitute about 40 percent of all buyers. It is thought that the tax credit will stimulate home buying & selling, reduce the amount of inventory in the housing market, and as a result bolster the economy. This incentive is temporary, however. The temporary tax credit is good for a home purchased on or after April 9, 2008 and before July 1, 2009. Buyers can take the tax credit in their 2008 or 2009 tax return. If you purchased the home in 2008, the tax credit is taken on your 2008 tax return. If you buy in 2009, you have the option of taking the credit on your 2008 or 2009 tax returns.
For details, click HERE.
Here's how it works:
- The new law authorizes a temporary $7,500 tax credit for qualified first-time home buyers for the purchase of any home.
- A first-time home buyer is defined as a buyer who has not owned a home during the past three years.
- Single taxpayers with modified adjusted gross incomes of up to $75,000 are eligible to take the full credit. For married couples filing a joint return, the income limit doubles to $150,000.
- Single taxpayers earning between $75,000 and $95,000 can claim a partial credit of less than $7,500 while the phase-out for married couples ends for those earning above $170,000.
- Since the tax credit is refundable, it means that the home buyer can claim the credit even if they owe little or no federal income taxes. In other words, the government would write you a check. For example, if a home buyer owes the federal government $2,500 in federal taxes and qualifies for the $7,500 home buyer tax credit, the taxpayer would receive a $5,000 refund check from the IRS ($7,500 minus the $2,500 owed).
- To reduce the cost to the federal Treasury, Congress has mandated that the tax credit essentially serves as an interest-free loan to be repaid over 15 years. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.
Downpayment Reform
Monday, August 04, 2008 - By Gate Arty
The new Housing and Economic Recovery Act of 2008 contains a provision that forbids FHA from insuring mortgages in which the downpayment comes directly, or indirectly, from an interested third party (such as the seller), beginning October 1, 2008.
On Thursday, July 31, 2008, the FHA Seller-Financed Downpayment Reform and Risk-Based Pricing Authorization Act of 2008 (H.R. 6694) was introduced by several members of Congress. Representatives Maxine Waters, Gary Miller, Al Green and Christopher Shays sponsored this bill that if passed and signed into law will allow downpayment assistance to continue indefinitely.
Strongman Championship
Monday, August 04, 2008 - By Gate Arty
Are you the strongest man in Central Florida? Well now is your chance to prove yourself toughguy! This Saturday August 9th in historic Downtown Lakeland, the Central Florida Strongman Championship begins at 11:00 a.m. on Kentucky Avenue. There are multiple divisions & multiple weight classes. The events include:
- Log Press
- Deadlifts
- Farmers Walk
- Yoke Walk
- Tire Flip
The entry fee is $50.00 and is open to Men & Women. There will be awards for placing 1st, 2nd, & 3rd in any division. Come enjoy another fun event in Downtown Lakeland. See you there!
Housing and Economic Recovery Act of 2008
Friday, August 01, 2008 - By Gate Arty
On July 30th, President Bush signed the Housing and Economic Recovery Act of 2008. All provision details are not yet available, but the major components included broad authority for the Treasury Department to safeguard the nation’s two largest mortgage finance giants (Fannie Mae and Freddie Mac) and a plan to help hundreds of thousands of troubled homeowners avoid foreclosure.
As anticipated, all seller-funded DPA programs will be abolished October 1st, 2008. Meaning the minimum cash investment requirement will increase to 3.5% of the purchase price.
More news to come on this as it becomes available!
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