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NewsWorthy items from Naples...

07-1-08

A recession-proof home sale

ORLANDO, Fla. – July 1, 2008 – It’s a buyer’s market, but sellers can increase the chance of a sale in today’s climate by working with a Realtor and considering these eight things.

1. Don’t count on open houses to sell your home. According to the California Association of Realtors, less than 5 percent of buyers find their home at an open house. An open house should never be the center of a prospective real estate agent’s marketing plan.

2. Target your marketing. Know what buyers in your area look for and emphasize your home’s appeal accordingly. This includes everything from the description (whether you highlight transportation and parks, or restaurants and nightlife) and how you stage the home (whether the third bedroom becomes an office), to where you advertise the listing (a newspaper in addition to online).

3. Tour similar homes in the area to better understand the competition – what a home sold for 12 months ago, or even six months ago, may not be a good estimate for today.

4. Consider staging your home. Although not always necessary, staging can make a difference in how your house is viewed and compared to others.

5. Offer prospective buyers a neighbor “reference” list. Make a list of your best, most reliable neighbors, so that buyers can reach out to get a better feel for the area, the locals, and what makes the neighborhood a truly unique place to live.

6. Photos posted online should be taken on a sunny day with a wide-angle lens. Approximately one-third of buyers who responded to a recent survey said they would eliminate homes they saw online if they had too few or poor quality photos.

7. Consider a pre-inspection to give you a selling edge. Include information about any repair work you’ve completed since you bought the home. If you don’t market your improvements, you won’t get as much return for them.

8. Once your house is on the market, accept feedback and tweak as necessary.

© 2008 FLORIDA ASSOCIATION OF REALTORS®

09-26-07

News Worthy/market update.pdf

12-28-06

Market Forecast

Biggest gainers – and losers
These are the 100 largest markets according to the 2000 Census. Growth forecast is for April 2007 – April 2008 from Fiserv Lending Solutions. Click on column headings to re-rank.
Metro Area	Home Price (median)	Median Mortgage (% of income)	Price change (5 years)	Worst one-year decline		Forecast growth to April 2008
McAllen, Texas	$130,000	25	26.5	-12.3	88-'89	9.8%
Tulsa	$135,000	14	17.6	-7.5	86-'87	4.3%
El Paso	$130,000	19	48.2	-5.4	87-'88	4.2%
Scranton	$118,000	13	41.2	-7.2	94-'95	3.9%
Rochester, N.Y.	$122,000	11	22.3	-4.1	94-'95	3.7%
Buffalo/Niagra Falls	$106,000	11	28.6	-5.2	81-'82	3.7%
Fort Worth/Arlington	$150,000	14	18.4	-6.9	87-'88	3.6%
Baton Rouge	$178,000	19	34.2	-8.3	87-'88	3.6%
Dallas	$151,000	13	17.8	-7.7	86-'87	3.6%
Birmingham	$165,000	17	31.7	-3.2	80-'81	3.6%
San Antonio	$146,000	16	34.7	-15.8	81-'82	3.3%
Houston	$153,000	15	25.2	-9.6	84-'85	3.2%
Syracuse	$124,000	12	39.1	-7.5	94-'95	3.2%
Indianapolis	$122,000	11	15.9	-6.6	81-'82	3.1%
Youngstown, Ohio	$86,000	10	14	-1.0	98-'99	3.1%
Wichita	$128,000	12	18	-4.9	86-'87	3.1%
Little Rock	$129,000	15	28.1	-3.8	87-'88	3.1%
Oklahoma City	$127,000	14	30.2	-15.7	87-'88	3.1%
Grand Rapids	$137,000	13	17.3	-11.2	81-'82	2.9%
Hartford	$256,000	19	48.2	-8.2	89-'90	2.8%
Cleveland	$144,000	14	13.5	-1.3	81-'82	2.7%
Omaha	$140,000	12	21.5	-7.6	80-'81	2.7%
Pittsburgh	$139,000	14	21.9	-8.5	80-'81	2.7%
Memphis	$133,000	14	14.3	-1.4	89-'90	2.7%
New Orleans	$175,000	20	50.5	-7.1	87-'88	2.6%
Akron	$137,000	13	13.1	-3.2	81-'82	2.6%
Columbia, S.C.	$140,000	14	25.8	-7.9	80-'81	2.5%
Austin	$176,000	15	20.3	-20.1	88-'89	2.5%
Toledo	$124,000	12	12.9	-14.6	82-'83	2.4%
Cincinnati	$168,000	15	18.4	-2.7	80-'81	2.4%
Chicago	$281,000	23	46.7	-1.0	81-'82	2.2%
Albany, N.Y.	$198,000	17	70.8	-7.1	94-'95	2.1%
Raleigh/Cary, N.C.	$214,000	17	21.4	-8.7	81-'82	2.1%
Dayton	$128,000	13	15.2	-8.8	81-'82	2.1%
Columbus	$165,000	15	18.2	-3.2	81-'82	2%
Louisville	$143,000	14	23	-3.4	80-'81	2%
Atlanta	$195,000	17	22	-1.7	89-'90	2%
St. Louis	$154,000	14	37.3	-8.1	80-'81	2%
Gary, Ind.	$135,000	13	26	-6.3	81-'82	2%
Greensboro, N.C.	$152,000	16	18.4	-0.5	81-'82	1.8%
Charlotte, N.C.	$198,000	18	22.7	-2.9	82-'83	1.8%
Kansas City	$158,000	14	25	-4.8	82-'83	1.8%
Knoxville	$137,000	15	38.3	-0.1	84-'85	1.7%
Salt Lake City	$216,000	21	45	-6.0	87-'88	1.7%
Nashville	$159,000	15	34.8	-2.6	89-'90	1.7%
Cambridge, Mass.	$431,000	28	27.1	-7.7	89-'90	1.3%
Farmington Hills, Mich.	$177,000	13	9.5	-13.2	81-'82	1.2%
Lake County, Ill.	$275,000	19	38	-8.4	81-'82	1.1%
Tacoma, Wash.	$273,000	26	64.5	-3.6	81-'82	0.8%
Minneapolis/St. Paul	$240,000	18	38.9	-1.6	82-'83	0.7%
San Francisco	$837,000	54	56.8	-8.8	90-'91	0.7%
Seattle	$399,000	31	62.8	-7.8	81-'82	0.6%
Honolulu	$635,000	52	105.9	-51.9	80-'81	0.6%
Albuquerque	$165,000	18	46.4%	-1.2	1998-1999	0.6%
Wilmington, Del.	$244,000	19	69.7	-8.3	90-'91	0.2%
Milwaukee	$219,000	19	41.7	-8.2	81-'82	0.2%
Springfield, Mass.	$205,000	19	55.5	-5.9	93-'94	0.1%
Richmond	$231,000	20	64.8	-1.4	81-'82	0.1%
New Haven	$264,000	21	60.2	-7.4	90-'91	-0.1%
Stamford, Conn.	$545,000	33	53.1	-8.7	89-'90	-0.2%
Detroit	$118,000	12	12.5	-17.8	81-'82	-0.2%
Camden, N.J.	$239,000	18	81.9	-8.2	81-'82	-0.3%
Worcester, Mass.	$268,000	22	38.2	-9.5	89-'90	-0.4%
Boston	$379,000	28	41.2	-8.2	89-'90	-0.4%
Philadelphia	$222,000	19	71.8	-3.8	94-'95	-0.6%
Allentown, Pa.	$270,000	24	69.1	-12.2	81-'82	-0.7%
Sacramento	$408,000	36	93.9	-6.4	92-'93	-0.9%
Portland, Ore.	$293,000	26	67.4	-16.6	80-'81	-1.1%
Essex County, Mass.	$372,000	28	33.8	-9.2	90-'91	-1.2%
San Jose	$740,000	45	54.1	-11.6	00-'01	-1.2%
San Diego	$574,000	52	93.7	-6.8	92-'93	-1.3%
Baltimore	$275,000	22	95.3	-4.1	81-'82	-1.9%
Ventura County, Calif.	$647,000	48	110.4	-10.7	90-'91	-2%
Denver	$268,000	22	12.6	-2.3	87-'88	-2.2%
Newark	$397,000	27	71.5	-7.4	89-'90	-2.4%
West Palm Beach, Fla.	$340,000	31	118.7	-4.9	90-'91	-2.5%
Oakland	$630,000	44	70.4	-5.7	90-'91	-2.5%
Providence	$287,000	26	74.7	-7.7	80-'81	-2.6%
Sarasota	$278,000	28	103.3	-2.6	81-'82	-3%
Edison, N.J.	$362,000	24	76.3	-7.3	89-'90	-3.2%
Jacksonville	$224,000	22	80.8	-0.8	83-'84	-3.3%
Virginia Beach	$244,000	24	99.1	-0.6	94-'95	-3.4%
New York City	$482,000	48	82.1	-6.4	89-'90	-3.9%
Washington, D.C.	$421,000	28	96.2	-5.1	90-'91	-3.9%
Tampa	$227,000	24	100.5	-1.7	90-'91	-4.2%
Fresno	$311,000	39	149.7	-9.7	82-'83	-4.2%
Orlando	$269,000	27	107.1	-1.4	91-'92	-4.4%
Riverside, Calif.	$407,000	41	147.9	-9.2	93-'94	-4.4%
Poughkeepsie, N.Y.	$288,000	23	82.9	-19.0	82-'83	-4.5%
Bethesda, Md.	$465,000	28	99.5	-3.8	81-'82	-4.6%
Tucson	$237,000	26	84.6	-1.7	81-'82	-4.6%
Santa Ana, Calif.	$713,000	53	116.9	-8.8	92-'93	-4.9%
Los Angeles	$547,000	57	138.5	-11.9	92-'93	-5%
Bakersfield, Calif.	$287,000	35	168.1	-5.4	94-'95	-5.4%
Stockton, Calif.	$450,000	46	99.1	-5.2	94-'95	-5.4%
Fort Lauderdale	$325,000	31	128.4	-3.1	92-'93	-5.5%
Phoenix	$271,000	26	103.8	-6.0	81-'82	-5.5%
Nassau/Suffolk, N.Y.	$483,000	31	76.3	-6.6	89-'90	-6%
Miami	$335,000	41	149.3	-4.3	81-'82	-8.8%
Las Vegas	$325,000	33	110.8	-17.0	82-'83	-8.9%

Housing Counsel: What Does a Seller Have to Disclose?

by Benny L. Kass

Question: You once wrote that the condominium resale certificate that a potential buyer must receive should disclose any outstanding assessments. Is a seller required to disclose that there is a large upcoming assessment due to known problems in the entire complex. The condominium documents I received when I purchased my unit were outdated and incomplete, but because it was so close to the closing date, I foolishly completed the transaction. How do I determine if my seller knew of these problems and the pending assessment?

Answer: What can I tell you? You have already admitted that you foolishly went to settlement without doing your homework.

In many jurisdictions (including Maryland, Virginia and the District of Columbia) potential condominium buyers are entitled to receive what is known as a "resale certificate." This is a document which spells out a number of important aspects of the condominium you are planning to purchase, from the amount of reserves in the association, to whether there is any pending litigation against the complex.

This certificate also should contain the current legal documents of the association, as well as the most recent budget and the most current audited statement from the association's independent CPA. It will also advise a potential purchaser whether there are any special assessments which have to be paid.

Where there are such assessments, my experience is that buyers and sellers will negotiate who is to pay them and when an agreement is reached it will be included in the purchase and sales contract. Typically, a seller will agree to make the payment, but that is not always the case. Some sellers take the position that they will not pay the balance of the special assessment since it will only benefit the new buyer.

But your situation is different. When you received the resale certificate, there was no formal assessment imposed by the board. It was only in the planning stage.

You had the opportunity to do your homework, but unfortunately you were too much in a hurry to close on your condominium unit. You should have requested updated copies of the financial documents, and you should have discussed the status of the condominium with one or two board members as well as the association's property manager.

Regardless of the cost of your unit, I am sure that it was a significant investment for you. Yet you opted to ignore the warning signs, and you failed to exercise the rights provided you by statute -- namely the right to receive -- and review -- the financial state of affairs for that association.

But even if you did carefully examine this information, at the time you signed your sales contract no such assessment was in effect; it was only a possibility, and not a reality.

What if you determine that your seller knew about the upcoming assessment? Does that make him legally obligated to disclose this to you? Under the disclosure requirements imposed by statute, the seller must only disclose known conditions about the unit you are considering to buy, and not the entire complex. The burden to disclose common element issues rests with the association, and not the individual unit owners.

Did you ask the seller if there are any special assessments pending? If so -- and if the seller knew about those issues and lied to you -- that would change my opinion as to his potential liability. But proving knowledge will not be easy. Obviously, if the seller was a member of the Board of Directors at the time you signed the sales contract, that might make a difference.

But unfortunately, too many condominium owners just do not take the time, nor care, to educate themselves as to the operation of the complex in which they live. Apathy runs rampant in many community associations. All too often, the only time that owner's complain is when their monthly condo fees are increased or when there is a special assessment promulgated by the Board.

It still is a mystery to me why potential condominium buyers spend more time deciding what computer or cell phone to buy than they do when purchasing the home in which they plan to live. The legislatures have given us the tools with which to make educated decisions; potential homebuyers should make full use of this opportunity.

02-13-07

Tax Benefits of Real Estate Ownership
by PJ Wade

If you rely on media coverage during the money season for an appreciation of the value of real estate ownership, you might be misled into believing that, while a house or condominium is useful as a place to keep your stuff, real estate carries little significant tax benefit. In reality, real estate offers more tax advantages than other classes of investment, particularly for home owners.

As the annual RRSP frenzy descends on Canada, even ever-popular discussions of the weather take a back seat to talk of Registered Retirement Savings Plans until the contribution deadline March 1. The yearly financial hype-fest then broadens to include more income-tax issues and rages on until the return-filing deadline April 30. In May, spring inspires a renewed interest in gardening and real estate.

Home buyers are often ignorant of these financial benefits, or overlook their significance, when deciding how much to invest and where. Developers, builders and real estate brokers place the emphasis on floor plans, mortgage rates and decor. Television, with its make-over madness, and other media as well, reinforce a home buying perspective that places investment far down the "must have" buying list.

Yet, real estate is the single largest financial investment most Canadians make, even though the selection process for residential property seems to emphasize esthetics over asset management. Consumers would benefit from a deeper understanding of how their home, cottage and income properties can become a significant active partner in their future. According to a TD Economics' estimate, "more than 70 per cent of Canadian families are currently homeowners. The total value of residences exceeds C$1 trillion and land and housing together account for one-third of all personal assets. Given this importance, the future value of a home should be included in the financial plans of Canadians."

If you are considering the purchase of a home -- new or resale, any type of ownership or design -- be aware that all profit made on this investment will be tax free if it's your principal residence. Buy smart, renovate for added value, add on market appreciation, and sell well, and all that profit or capital gain is yours -- unlike the money made on stocks and bonds. According to the Canada Revenue Agency, if the real estate was your principal residence for every year you owned it, you don't even have to report the sale on your tax return.

Market and economy fluctuations can affect the amount of profit, but real estate has the added advantage of being a live-in investment, so one must add this cost-reducing advantage into the calculation.

Home ownership carries additional financial benefits as the selected highlights below illustrate:

Special government savings and rebates For example, rebate of part of the GST or HST paid on a new owner-built or builder constructed residence, including condominiums, a substantially renovated house, a modular/mobile home or a floating home. For co-operatives, shares in the capital stock of the co-op, which represent the equivalent of ownership, are eligible. New residential rental property also qualifies.
Tax-free access to RRSP funds The Home Buyers' Plan (HBP) allows tax-free withdrawal of up to C$20,000 from your RRSP to buy a qualifying home, provided the amount is gradually repaid over 15 years. The property may be bought or built for yourself or a related person with a disability. When multiple buyers purchase a property, each may withdraw up to C$20,000 under the HBP. Funds may be withdrawn under the Lifelong Learning Plan at the same time.
Income generation using real estate Renting out all or part of your home generates rental income, which can be offset by allowable expenses. Principal residence status may not be affected by rental activity if rules of timing and depreciation are followed.
Home-based business head quarters Working at home, telecommuting, or operating a home-based business allows certain expenses to be claimed against income, including a proportionate share of mortgage interest.
Related tax credits In Manitoba and Ontario, provincial Property Tax Credits may reduce the amount of income tax due.

Search out the full range of opportunities related to home ownership, many of them presented in the +400 articles of this column on Decisions & Communities. Obviously, before you act on any financial benefit, investigate the qualification criteria, locate the correct forms and ask many questions of your financial advisor or the Canada Revenue Agency staff. For instance, to qualify for the GST rebate, the fair market value of the house and land must be less than C$450,000.

While you're pondering ways to gain the greatest benefit from RRSPs and on your income tax return, go a step further and consider how to use the financial advantages of home ownership to your benefit -- now and in the future.

Published: February 13, 2007

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