Real Estate Information

Yes, here is yet another article from a Realtor about short sales. If you, or someone you know, own a home, need to sell it and owe more than it is worth in today's market, you or they may be in a short sale situation. If so, you will be asking your lender to forgive a significant amount of money. So far, nothing new.

What many people don't yet understand is that as of now, the Mortgage Debt Relief Act of 2007 will expire on Dec. 31, 2012. What this means to the homeowner in a short sale situation is that if they do a short sale that closes after Dec. 31, 2012, under current law, the forgiven debt may be taxed as income. Presently, if an owner has done a short sale for their primary home, the Mortgage Debt Relief Act has allowed taxpayers to exclude income from the discharge of debt, which means the forgiven debt is not taxed.

Before the Mortgage Debt Relief Act was put in place, the IRS considered forgiven debt as taxable income. Since 2007 and thru 2012, forgiven mortgage debt, for a primary residence, has not been considered taxable. Here is the issue, if Congress does not extend the Mortgage Debt Relief Act, or amend it in some meaningful way, any debt forgiven through debt restructuring, or short sale, may be considered as taxable income. An example would be a homeowner is forgiven $50,000 in mortgage debt when their home sells, in February of 2013. That $50,000 could be added directly to the homeowner's taxable income!

Now, if you are a homeowner who is considering a short sale, or if you feel that in the next several months you may be in a short sale situation, and if you believe that the Congress is going to agree to extend the Mortgage Debt Relief Act to 2013 or beyond, relax. If you have a hard time believing that Congress can agree what time it is, then you should be concerned.

Short sales happen for numerous reasons, mostly as a fact of life that our real estate market has suffered enormously in this recession. In the Tampa Bay area, almost every home purchased between 2004 and 2010 has a lower market value today than when it was purchased. Reasons to sell vary widely, from job transfer, to the kids have all moved out, to a death, a divorce, job loss or whatever else happens in life.

Before you do anything, consult your financial advisor and your attorney about the situation with your mortgage. Find a professional Realtor who is expert in short sales to guide you through the complex short sale process. Because of the backlog of short sales the banks are already processing, a short sale can take many months. So if you are considering selling your home and may be in a short sale situation, don't wait. Act now. You just might not have the tax relief next year that is available today.

INSPIRATION FOR TODAY:

"Two roads diverged in a wood, and I -
I took the one less traveled by,
and that has made all the difference."

- Robert Frost

FORGET THE LEADER!

On the playground of any school, and on any day, you can witness examples of children playing "follow the leader." One hops, skips, or jumps, and all the others follow. As adults, however, many of those children play a variation of that game - called "follow the follower."

On the job, they look around, see how someone else is doing their work, and duplicate the effort. What they don't realize is that their fellow employee is also watching someone else. A circular game of "follow the follower" evolves, resulting in a mediocre work force. The same can be true in marriages, education, hobbies, and sports.

Consider the story of a telephone operator in a small town. Every day she received a call from a gentleman asking for the correct time. Finally, one day, she asked the mystery caller who he was and why he called every day. His answer? "I'm the one who blows the whistle at the factory each day at noon. I like to be right on time!" The operator laughed and then responded, "Here at the telephone company, we set our watches and clocks by the noon whistle at the factory!"

Tired of playing follow the follower? Want to rejuvenate your life? Begin acting like the unique person you already are. See what everyone else is doing . . . and do something different. Strike out in the direction of your own imagination instead of theirs.

In the words of Henry David Thoreau, "Go confidently in the direction of your dreams. Live the life you've imagined."

Short sales.  Yes, the explanation is the bank is "shorting" the debt.  How about the banks looking at shorting the time span, which in many cases borders on eons.

In our area, one brave Realtor, Liane Jamason, sent an email to senior bank executives about a short sale that had been stuck on hold for a year.  It got done.  Her action made the front page of the St. Pete Times today.

Why can the banks' "negotiators" send routine requests to the sellers every 30 days for bank statements, pay slips, etc. and not take the time to look at the information so they can make a decision.  If they are looking at hundreds or thousands of short sales everyday, they can tell quickly that a seller is in dire financial straits or not.  Many banks still refuse to consider a short sale until the homeowner is delinquent on the mortgage.  If a homewoner is foregoing food, medical care, insurance, general lifestyle and still making payments, why cannot a bank accept the facts and review the short sale possiblity?

We cannot ever get the housing industry out of the doldrums until the banks actually take action on short sales to help the millions of families who are barely hanging on, the realtors who can't make a living because it often takes a year to complete a short sale, the contractors can't build new houses or hire people, because there are so many undervalued houses lingering on the market, and on and on.  Then,  the banks stall for months, and after doing a BPO, come back and say they want 30% more than the contract price of the house, which was the market value six or nine months ago.  This kills the deal, the house has to go back on the market and the stupid cycle starts all over again.

Who is going to fix this??  Realtors have invested time and money to gain expertise in short sales, including the Certified Distressed Property Expert designation.  We know how to present a complete short sale package to the banks.  Our sellers know what to expect and gather the requisite documentation.  The buyers are told to expect the process to take months.  Yet the banks continue to drag their feet, "reviewing" the same files over and over and over and over, until the seller is frustrated, the buyers walk away in utter frustration, Realtors lose months of time and energy and the bank loses even more money on the property because no one is capable of making the right decisions to get that bad debt off the books.  All it takes is for someone to do the right thing, is that so hard?

Can someone please offer a solution!?

INSPIRATION FOR TODAY!

"When you come to the edge of all the light you have known, and are about to step out into darkness, Faith is knowing one of two things will happen - there will be something to stand on, or you will be taught how to fly."

- "Jonathan Livingston Seagull" by Richard Bach

LEARNING TO FLY!

In the 1930's and 1940's, there were numerous women's magazines.  Ladies' Home Journal and Good Housekeeping were two of them.  They showed women in the role of the day - housekeeping.  They suggested the number of times per week the home should be dusted, scrubbed, organized, and otherwise kept spotless.  They suggested ways to look good when the "man of the house" arrived home from a tough day at the office.  In short, those magazines and their publishers set up an impossible regimen of expectations for their readers.

Many of us know women who have spent much of their lives trying to live up to the model housewife role prescribed by those magazines.  The trouble is, many of them have (or had) dreams of their own, like wanting to write, or to travel, or to participate in the freedoms only men then enjoyed.

Today, any of us can achieve our dreams.  All too often, however, we are still denied our destiny by the expectations set by others.  We are bombarded by radio, TV, CD, DVD, and WWW messages that insist we follow their example, their guidelines, or their models.  We allow our dreams to wither and die - waiting in line for their turn to blossom - never receiving the water of encouragement needed to grow and bloom.

What about your dreams?  Need some encouragement to help you "think outside the box?"  Begin by spending time with others who have already achieved their dreams. Leave your nay-sayer acquaintances behind.  Read inspiring biographies.  Pick up a copy of "Think & Grow Rich" or "The Seven Habits of Highly Effective People."  If you haven't yet learned to "fly," pick up "Jonathan Livingston Seagull" or "Illusions" by Richard Bach.

As Jonathan says in the book, "Don't believe what your eyes are telling you.  All they show is limitation.  Look with your understanding, find out what you already know, and you'll see the way to fly!"  

Here is another in our occasional series of 60 day updates for various neighborhoods real estate activity.  In the past 60 days in Crescent Oaks Country Club, there have been 5 houses sold.  The average sold price for these houses in Crescent Oaks Country Club was $353,700.  The average square footage was 3,432, and all were pool homes.  The average sold price per square foot was $104.

The average days on market was 269.  Days on market is how long it takes from the time a house is listed until it goes under contract.  The shorter the days on market, the more accepting the market place is to the listed price.

In Crescent Oaks Country Club, of the five sold houses, one was on the market for only 35 days.  At the other end of the spectrum was a home that sold for $345,000 and had 623 days on market.

There are currently 12 houses with active listings in Crescent Oaks Country Club.  The prices range from a high of $873,233 for a 5,783 square foot pool home, to a low of $199,500 for a 3 bedroom villa.  The villa only has 5 days on market.  The higher priced home has 951 days on market.

If you would like to follow listings in Crescent Oaks Country Club, visit Sun Bay Associates search site, enter the name of whichever subdivision you want to search, and get the info you want.

The very best news is that the Crescent Oaks Country Club has re-opened the golf course.  So take a look at the opportunity to own a home in a golfing community, with a newly opened and excellent golf course.

Highland Lakes in Palm Harbor is a large and very active 55+ community.  Highland Lakes, Palm Harbor, is made up of villas, condos and single family homes.  There is a large clubhouse with constant activities for a wide variety of interests.  Highland Lakes has three executive golf courses and for residents, there is no greens fee.  Play for three holes, go home and rest, or play three rounds of golf, then find something else to do.

Golf carts can go to the golf course from home.  Another bonus to Highland Lakes, Palm Harbor is access to Lake Tarpon.  The community has a secure boat storage area, a launch ramp, and clubhouse near the ramp.  Take advantage of Lake Tarpon and the launch ramp, cruise the lake, go to lunch at the restaurant on the lake, then return to your home and relax.

We have a bran new listing in Highland Lakes, Palm Harbor.  It is in Greenview Villas.  To see more about this great listing on 104-D Tartan Drive, visit this link to Greenview Villas.

Check it out, there are a lot of good reasons to look at this area, especially if you want to live in a community that is vibrant and has activity for everyone.

Dunedin, FL is a great community, especially in the winter when the snowbirds are in town to keep their toes warm until the north thaws out in the spring. Events coming this month include the weekly Green Market in the Pioneer Park.  Farmers bring their fresh produce and other products for a wonderful variety of goods in an outdoor market. Great foods, fresh foods, and a great experience.

December 3 is the Dunedin holiday boat parade.  This favorite Olde Fashioned Christmas event starts at the Dunedin Marina and lasts from 6 - 9 pm. Come see the boats that are decorated with creative holiday lighting as they sail across the intracoastal waterway. Everyone has a great time. Also, on Dec. 3 the Dunedin Youth Group hosts the Holiday Tour of Homes.  See these beautifully decorated homes in historic Dunedin.

Then, on Dec. 4 there is a concert by the Dunedin Pipe Band in Pioneer Park at 1:30. Come listen to the bagpipes, then visit the many nearby restaurants for a bite of food or perhaps an adult beverage.

And on December 10, from 4 pm to 9 pm, there is an Olde Fashioned Christmas and Holiday Parade in downtown Dunedin. The theme is Christmas from days gone bye. There will be children's games typical of a century ago. There will be carolers, food and beverage, shops will be open to welcome those who want to remember perhaps a less commercial Christmas. And there has been in the past - SNOW!!  Right there on Main Street in Dunedin.

Not only is Dunedin a fun place to visit and find things to do, Dunedin is a wonderful community to live in. So, mark you calendar and plan to visit Dunedin for an Olde Fashioned Christmas. You will be glad you did.

Here are some interesting statistics for the East Lake area of Palm Harbor, FL.  The median list price is $302,660.  The median Days on Market is 119. (This is a little hint that there are some houses in East Lake that are probably priced higher than the market will bear, however that is a topic for another day.). There are 173 active listings in East Lake, Palm Harbor.  Of these 173 active listings, 28.9% are distressed properties.  Another way of looking at this is that 50 of the 173 listings are either foreclosures or short sales.

The distribution of ownership can also be interesting.  Of all homes in East Lake, Palm Harbor, 73.24% are owned, 12.56% are rented and there is a vacancy rate of 14.2%.  The higher the vacancy rate, the greater difficulty there can be in selling homes.

If you would like to learn more about what is available in the area, visit our Sun Bay free home search link and find a perfect home.

For serious home buyer, the first thing to do is to be pre-approved by your lender.  That is, unless you are paying with cash.  Trying to purchase a home before being pre-approved can be very difficult.  Many times a homeowner that is trying to sell his home as a For Sale By Owner will get an offer from an unqualified buyer, think he has a deal, and often pass up on subsequent legitimate offers.  Then, when the buyer goes to apply for a mortgage, they don't qualify, can't buy the home, and the seller has lost time and possibly a buyer who could have qualified. 

A professional realtor will insist that a buyer at the very least be pre-qualified, although being pre-approved is much better.  Even when a buyer brings a realtor a pre-qualification letter, it is a very good idea to have that buyer go to a known lender for another pre-qualification letter, whether or not the buyer uses that lender.  This will confirm that the buyer can afford the house.  Pre-approval is a valuable tool to let the buyer know what price range he can afford.  If the buyer is qualified for $250,000, there is no point in looking a $500,000 houses, this will only lead to frustration.

The more information a buyer has the better the chances for a successful home purchase experience.

By the way, now is a great time to be looking for a house.  There are not as many buyers on the market right now, sellers may be willing to look at offers that don't quite come up to their hope because there is less activity.  Why wait until after the holidays when everybody and his brother will start looking again.  Take advantage of the lull and go out and find the perfect home now.  Beat the holiday crush.

So to all, have a very Happy Thanksgiving.

Finding recreation in Palm Harbor is really an easy thing to do.  Palm Harbor is an unincorporated community in north Pinellas County, FL with plenty of recreational activities.  There is the Palm Harbor Community Center, with a full calendar of recreation for everyone, from day trips to bus trips to distant locations, to dinners for the community and much more.

Of course, being on the Gulf of Mexico, Palm Harbor has terrific parks and water recreation.  The fishing in Palm Harbor, actually in the water off Palm Harbor, is great.  This time of year some of the fish being caught are spotted sea trout, redfish, sharks, BIG flounder, Spanish mackeral, kingfish and many more.  The boating this time of year is wonderful.  The weather is not too hot and the water is still pretty warm.  Many neighborhoods in Palm Harbor have direct access to the Gulf of Mexico, making all water recreation very convenient.  Baywood Village is one of several such neighborhoods.

Golf seems to be a great recreation for our visitors from the north.  There are numerous golf courses in Palm Harbor, for all skill levels.  We even have one of the most beautiful, and toughest golf courses in the country, right here in Palm Harbor.  It is the Innisbrook Golf Resort.  This November 11-13, Innisbrook is hosting the LPGA Legends Tour Championship.  Not only can our golfing fans enjoy their golfing recreation, they can watch some of the best golfers in the world play right here in Palm Harbor.

Palm Harbor has its own YMCA, its own library, ball fields and so very much more.  The recreational opportunities are almost limitless.  Couple all of this with the current prices in Palm Harbor real estate and it is easy to see why so many people come to Palm Harbor as snowbirds, or as full time residents.

This Royal Stewart Arms real estate update covers the last 60 days.  This is a very active 55+ community at the entrance to Honeymoon Island state park in Dunedin, FL.  There are several 55+ communities in Dunedin, however, this is the one on a beautiful island in the intracoastal waterway in the Gulf of Mexico.

Today there are 10 condos for sale in this 55+ community in the Dunedin real estate market.  Two of these are one bedroom condos and have 302 and 184 days on market.  This simply means that they have been listed for sale for that many days.  The prices for the 10 condos listed for sale range from $89,000 (with 316 days on market) to $209,000 with 240 days on market.  The longer a property is on the market, whether it is in Royal Stewart Arms or anywhere else, is a very good indicator in today's market that the price is too high for the buying market.

There are 2 condos under contract in Royal Stewart Arms.  Both have covered parking.  Of course all condos have ready access to Honeymoon Island state park as well as the amenities of Royal Stewart Arms, including the fishing pier, fitness center, tennis courts and more.

And in the last 60 days, 6 properties have sold in Royal Stewart Arms.  The average sale price per square foot for the three 2 bedroom/2 bath condos that sold is $109.  The sold prices for these condos were $155,000, $120,000 and $110,000.  There were three other condos that sold in Royal Stewart Arms, and these other three are one bedroom units.  The sold prices for the three one bedroom condos were $118,000, $100,000 and $92,000.

For more information on Royal Stewart Arms or other areas in Dunedin or elsewhere in the greater Tampa Bay area, visit our Sun Bay Associates web site and click on the search listings tab.

Happy House Hunting!