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2024-01-05T17:04:40-07:00
tag:exitrealtypalmbeach.com,2012-09-20:41285
Know The Secrets to a Real Estate Transaction
Navigating a real estate transaction can be a complex and potentially stressful process. Here are some tips to help make the experience as stress-free as possible:<br /><br />
Choose the Right Real Estate Agent:<br />Select an experienced and reputable real estate agent who understands your needs and has a proven track record.
Set Realistic Expectations:<br />Understand the current market conditions and set realistic expectations regarding the time it may take to buy or sell a property.
Get Pre-Approved for a Mortgage:<br />If you're a buyer, getting pre-approved for a mortgage can streamline the process and make your offers more attractive to sellers.
Communicate Clearly:<br />Maintain open and clear communication with your real estate agent, mortgage lender, and other parties involved in the transaction.
Understand the Process:<br />Educate yourself about the real estate transaction process to minimize surprises. Know what to expect at each stage.
Anticipate Delays:<br />Understand that delays can happen due to various factors such as inspections, appraisals, or financing issues. Be patient and flexible.
Home Inspection:<br />Schedule a thorough home inspection to identify potential issues early on. This can prevent surprises later in the process.
Have a Contingency Plan:<br />Be prepared for unexpected events by having a contingency plan in place. This could include alternative financing options or a backup property.
Legal and Financial Counseling:<br />Seek legal and financial advice early in the process to avoid complications later. A real estate attorney can help review contracts and ensure legal compliance.
Stay Organized:<br />Keep all documents related to the transaction organized. This includes contracts, inspection reports, and communications. Staying organized helps prevent unnecessary stress.
Negotiate Wisely:<br />Approach negotiations with a level head. Be willing to compromise, and focus on finding solutions that work for all parties involved.
Stay Informed:<br />Stay informed about the real estate market and any changes in regulations or laws that may affect your transaction.
Prepare for Closing Costs:<br />Understand and prepare for closing costs, so there are no financial surprises on the closing day.
Professional Guidance:<br />Surround yourself with a team of professionals, including a real estate agent, mortgage broker, and possibly a real estate attorney, to guide you through the process.
Positive Mindset:<br />Approach the transaction with a positive mindset. Realize that challenges may arise, but maintaining a positive outlook can make the process more manageable.
Remember, every real estate transaction is unique, and unexpected challenges may arise. However, with careful planning, clear communication, and a proactive approach, you can minimize stress and increase the likelihood of a successful and smooth transaction.
2024-01-05T16:43:25-07:00
2024-01-05T17:04:40-07:00
Diana Perez
tag:exitrealtypalmbeach.com,2012-09-20:35644
Partial Rental can Result in Partial Loss of Homestead Exemption
Rejecting lower-court decisions, the Fla. Supreme Court ruled that homeowners who rent out rooms within their property may lose part of their homestead exemption.
TALLAHASSEE, Fla. – Rejecting lower-court decisions, the Florida Supreme Court on Thursday said a Sarasota man should not have received a homestead property-tax exemption for part of his house that he rented out.
The Supreme Court unanimously sided with Sarasota County Property Appraiser Bill Furst, who in 2014 investigated whether Rod Rebholz should have been receiving a homestead exemption on what was described as a single-family home.
Furst determined that 15% of the property was not entitled to a homestead exemption because it was being rented to a tenant. That resulted in Rebholz facing $7,000 in back taxes, penalties and interest for the tax years 2004 through 2013.
Rebholz, who lived in part of the house and initially applied for a homestead exemption in 1996, challenged the decision, touching off years of legal battling. A circuit judge and a panel of the 2nd District Court of Appeal ruled against the property appraiser, but the Supreme Court on Thursday said the property was not eligible for a full homestead exemption.
“Rebholz and the district court would allow a property’s structure – and the labels used to describe the property – to dictate the application of the homestead tax exemption,” Chief Justice Carlos Muniz wrote in a 19-page opinion. “The result would be to make arbitrary distinctions between functionally similar homeowners and properties, without any constitutional or statutory basis for doing so. In this case, for example, the label ‘single-family residence’ does not reflect the true design and use of Rebholz’s property. That property was effectively a boarding house, a part of which Rebholz lived in and used as his own residence.”
Muniz wrote that Rebholz “lived on the bottom floor, which consisted of a kitchen, living area, and bathroom. The upper floor had a common laundry area and four individual rooms, each with its own living area and bathroom; some of the rooms had a kitchenette. Each room was lockable from the outside. The front door entry to the property had two doorbells, one for the bottom floor and the other for the top.”
Furst’s determination that 15% of the property should not receive a homestead exemption was based on one tenant, John Michael Beaumont, who rented one of the upstairs rooms from 1996 through the tax years in the dispute, according to Thursday’s ruling.
“(Consider) the part of the structure that Rebholz rented to Beaumont throughout the tax years at issue – the 15% that the property appraiser has designated as non-homestead property. Did Rebholz use that property as his residence? Surely not,” Muniz wrote. “The record leaves no doubt that Rebholz gave exclusive use of that portion to Beaumont, subject to Beaumont’s compliance with the terms of their rental agreement.”
The panel of the 2nd District Court of Appeal said in its June 2020 ruling that the house should not be divided up for tax purposes – and pointed to potentially broader implications.
“Based upon our analysis of the Florida Constitution, statutes, and codes, we conclude that the property appraisers of this state are not authorized by law to carve up a homeowner’s permanent residence in order to remove the protection provided by the constitutional homestead exemption when that person rents a bedroom or any other space within their home,” the panel decision said. “Any interpretation to the contrary would circumvent public policy and could create financial hardship for countless Florida citizens who reside within their permanent residences while renting bedrooms or working from home to make ends meet.”
But Muniz on Thursday disputed that the Supreme Court opinion would affect people who work at home.
“The phrase ‘working from home’ speaks to activity occurring within property already found to be the owner’s residence,” the opinion said. “This case is about defining the scope of the residence in the first instance. Here, Rebholz gave a tenant exclusive use of a portion of Rebholz’s property, reserving to himself only the access rights of a landlord. That portion of the property was not Rebholz’s residence.”
A footnote in the opinion said Rebholz died in November 2015 and that the case continued with the trustee of a revocable trust as the plaintiff.
© 2023 The News Service of Florida. All rights reserved.
2023-04-10T08:57:04-07:00
2023-04-10T09:03:04-07:00
Stephen Snow
tag:exitrealtypalmbeach.com,2012-09-20:15109
How Will the Presidential Election Impact Real Estate?
<img width="750" height="410" src="https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share.jpg" class="attachment-entry size-entry wp-post-image" alt="How Will the Presidential Election Impact Real Estate? | MyKCM" srcset="https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share.jpg 750w, https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share-600x328.jpg 600w, https://files.mykcm.com/2020/09/01090345/20200902-KCM-Share-100x55.jpg 100w" sizes="(max-width: 750px) 100vw, 750px" style="font-size: 17px;" />
The year 2020 will be remembered as one of the most challenging times of our lives. A worldwide pandemic, a recession causing historic unemployment, and a level of social unrest perhaps never seen before have all changed the way we live. Only the real estate market seems to be unaffected, as a <a href="https://www.nar.realtor/newsroom/pending-home-sales-rise-5-9-in-July" title="new forecast" target="_blank" rel="noopener noreferrer">new forecast</a> projects there may be more homes purchased this year than last year.
As we come to the end of this tumultuous year, we’re preparing for perhaps the most contentious presidential election of the century. Today, it’s important to look at the impact past presidential election years have had on the real estate market.
Is there a drop-off in home sales during a presidential election year?
BTIG, a research and analysis company, looked at new home sales from 1963 through 2019 in their report titled <a href="http://researchwiseny.btig.com/ResearchLibraryAnalec/DownloadResearch.aspx?E=cafidk-b" title="One House, Two House, Red House, Blue House" target="_blank" rel="noopener noreferrer">One House, Two House, Red House, Blue House</a>. They noted that in non-presidential years, there is a -9.8% decrease in November compared to October. This is the normal seasonality of the market, with a slowdown in activity that’s usually seen in fall and winter.
However, it also revealed that in presidential election years, the typical drop increases to -15%. The report explains why:
“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty.”
Are those sales lost forever?
No. BTIG determined:
“This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”
In a separate <a href="https://meyersresearchllc.com/planning-for-2020-what-an-election-year-means-for-home-sales/" title="study" target="_blank" rel="noopener noreferrer">study</a> done by Meyers Research & Zonda, Ali Wolf, Chief Economist, agrees that those purchases are just delayed until after the election:
“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year.”
Will it matter who is elected?
To some degree, but not in the overall number of home sales. As mentioned above, consumer confidence plays a significant role in a family’s desire to buy a home. How may consumer confidence impact the housing market post-election? The BTIG report covered that as well:
“A change in administration might benefit trailing blue county housing dynamics. The re-election of President Trump could continue to propel red county outperformance.”
Again, overall sales should not be impacted in a significant way.
Bottom Line
If mortgage rates remain near all-time lows, the economy continues to recover, and unemployment continues to decrease, the real estate market should remain strong up to and past the election.
2020-09-02T08:19:00-07:00
2020-09-02T08:34:54-07:00
Ramon "Ray" Negron
tag:exitrealtypalmbeach.com,2012-09-20:10334
8 REASONS THE CORONAVIRUS WON’T CRASH THE HOUSING MARKET
It’s all you hear on the news, it’s all you read in the papers, and it’s all you see on social media. The coronavirus is everywhere, and it’s safe to say that everyone is scared, both of the disease itself and the potential economic implications of the whole country going into a temporary quarantine.
Echos of the 2008 housing market crash have many agents imagining doomsday scenarios and assuming the worst.
But in a recent article published by <a href="https://www.usatoday.com/story/money/2020/03/11/recession-heres-how-coronavirus-crises-different-2008/5012228002/" rel="noopener" target="_blank">USA Today</a>, Gus Faucher, chief economist of PNC Financial Services Group, said, “A recession is not inevitable. If we do get a recession, it is likely to be brief and much less severe than the Great Recession.”
Faucher notes that the 2008 financial crisis and recession resulted from years of deeply rooted economic insecurities, which isn’t the case now.
“What we’re seeing is caused by something external to the economy,” Faucher said.
There are key differences in this market that spell good things for the housing market despite recent events. Let’s examine some of the key indicators that we will avoid a housing market crash.
1. Inventory is low.
A December 2019 <a href="https://www.forbes.com/sites/alyyale/2019/12/05/2020-will-see-historic-low-level-of-housing-inventory/#73e56773d7f5" rel="noopener" target="_blank">Forbes article</a> predicted a historically low level of housing inventory in 2020. According to NAR statistics, there is a chronic shortfall of 300,000 to 400,000 housing units every year.
Bryan Souza, a real estate agent from Fresno, Calif., who worked through the 2008 recession, says there is a key difference between that market and today’s.<br /><br />“Back then, we had 18 months of supply...it was a buyer's market,” Souza said. Today, in our local metro and actually nationwide, we're looking at two to three months of inventory. And so, it's more of a seller’s market.”
Even when markets turn, buyer demand remains. Even if some buyers initially delay their purchases out of fear, when that fear subsides, most buyers will still want to buy — and that pent-up demand will turn into sales.
2. Mortgage rates are low.
Mortgage rates have been below 4% for some time and are expected to remain low. These low rates will encourage more people to buy, even if they are dissuaded by initial fears caused by the virus.
3. Subprime loans are down.
The 2008 crash was set off when banks and other lenders approved an overabundance of mortgages to unqualified buyers, driving up home prices to too-high levels. When home prices began spiraling down, millions of Americans stopped making mortgage payments and lost their homes, and banks were pushed to the edge of bankruptcy.
At that time, household debt climbed to a record 134% of gross domestic product. Today, household debt is at a historically low 96% of GDP. Households today are saving about 8% of their income, compared to just 3% in 2008.
According to data from the Federal Reserve Bank of New York and Equifax Consumer Credit Panel, from the third quarter of 2001 through the end of 2008, an average of 20% of all mortgages originated went to people with subprime credit scores (lower than 660). In the third quarter of 2018, subprime borrowers received just 9% of all mortgages.
All of this means more Americans are better equipped to handle a temporary economic disruption that won’t significantly impact their ability to buy homes or hold onto their current ones.
4. Today’s homeowners have more equity in their homes.
According to a Federal Reserve report called the Flow of Funds, Americans owned $18.7 trillion of their homes, giving them a 64% equity stake. By comparison, this number was just 52.7% in the first quarter of 2007. This means that the vast majority of homeowners will have no problem keeping their homes during these uncertain times.
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5. The government is offering a moratorium on foreclosures for 60 days — which is likely to be extended for up to 12 months.
In light of the current situation, the Department of Housing and Urban Development announced that all single-family homeowners with Federal Housing Administration-backed mortgages would be shielded from foreclosure or eviction until mid-May.
The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to suspend all foreclosures for "at least 60 days." The FHFA also offered payment forbearance to homeowners affected by COVID-19, allowing them to suspend mortgage payments for up to 12 months.
These moves should instill confidence in home sellers and give them an opportunity to sell their homes during the extension.
6. Home prices appreciated during previous recessions.
Not every recession signals a housing market crash. In fact, home prices went up in three out of the last five recessions (1980, 1981, 2001) and remained mostly flat in one (they dropped 1.9% in the 1991 recession). They only dropped significantly in 2008.
According to Zillow, annual home value appreciation across all states since 1997 has averaged 4.6% during times of economic growth and 4% during recessions.
The current market conditions are much more similar to how they were in 2001, after 9/11.
7. People will always need a place to live.
More than ever, people understand the value of having a roof over their heads. In times of uncertainty, homeownership is a security people take pride in and work toward. Real estate is above all a human industry, and humans crave the stability of homeownership.
8. No one knows how long this will last.
Fear is at an all-time high right now. There is so much uncertainty about how this virus will impact people in the United States that people are assuming the worst.
If a viable cure is found in the next few weeks and rolled out, this pandemic could be a much shorter-term issue than initially anticipated. Now is not the time to start panicking and stop doing what works and makes sense.
If you have a solid marketing strategy, like a marketing system you follow or marketing materials, like books, that are consistently helping you get listings, now isn’t the time to abandon tried and true resources.
Stick to what’s working, adapt with the change, and you will come out on top.
SOURCE: <a href="https://blog.smartagents.com/8-reasons-coronavirus-wont-crash-housing-market">https://blog.smartagents.com/8-reasons-coronavirus-wont-crash-housing-market</a>
2020-03-21T10:21:00-07:00
2020-03-21T10:43:03-07:00
Ramon "Ray" Negron