Dayse's Blog

Talks on mortggage giants continue

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:16:54 -0500

Talks on mortgage giants continue

WASHINGTON - July 18, 2008 - Treasury officials and senior lawmakers huddled behind closed doors yesterday, searching for a way the Treasury Department might safely invest in mortgage finance giants Fannie Mae and Freddie Mac without exposing taxpayers to massive losses.

People close to the talks said Treasury Secretary Henry M. Paulson Jr., House Financial Services Committee Chairman Barney Frank (D-Mass.), and leaders of the Senate Banking Committee are considering a plan that would allow the government to buy senior preferred shares in Fannie Mae and Freddie Mac if the firms' financial condition were to deteriorate dramatically. That would mean taxpayers would get any payouts before other shareholders when the firms returned to financial health, the sources said.

After a late-afternoon meeting with Frank, Paulson reported making good progress, saying he expects "a very acceptable result" by next week, when the House is expected to vote on the Bush administration's plan to prop up the ailing mortgage finance giants as part of a broader housing package.

Paulson insists that he does not expect to have to use the authority to help the companies because they remain financially sound. He has said he is asking for the authority to renew confidence in the companies following a steep slide in their stock prices last week.

Another taxpayer-protection option proposed by Frank hit a snag. Frank suggested that if the Treasury were to invest in the firms, the companies should postpone dividend payments to shareholders. But that proposal will have to be dropped - or at least softened - because several major institutional investors in Fannie Mae and Freddie Mac are permitted to invest only in stocks that pay dividends and would have to divest if that idea were implemented.

Meanwhile, lawmakers have rejected Paulson's proposal to exempt aid to Fannie Mae and Freddie Mac from the nation's debt limit, which is currently set by law at $9.8 trillion. The House voted this year to raise the debt limit to $10.6 trillion, a move that has yet to be ratified by the Senate. Rather than setting a new, higher cap specifically for Fannie Mae and Freddie Mac, lawmakers are considering including the $10.6 trillion figure in the housing bill, Democratic aides said, giving the Treasury an immediate $800 billion cushion without setting a specific price tag that would be open to attack by opponents.

After meeting with Paulson, Frank said he, too, is "very optimistic" about the negotiations.

"I do not see any differences ... that will prevent the House from passing the bill on Wednesday, and soon thereafter passing the Senate and soon thereafter being signed by the president," he said.

Talks on mortggage giants continue

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:16:11 -0500

Talks on mortggage giants continue

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:15:12 -0500

realtor scoop

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:09:59 -0500

Realtor Scoop

FAR's Disaster Relief Fund (DRF) Is There For You

The names Andrew, Charley, Dennis, Frances, Ivan, Jeanne and Wilma will be forever etched in the minds of Floridians. But as devastating as those hurricanes were, they also generated a tremendous outpouring of goodwill-as members of the Realtor® community from across the state stepped forward and donated millions of dollars to assist their fellow real estate professionals who were victims of those storms.

The Florida Association of Realtors®' Disaster Relief Fund (DRF)was originally created as a trust in the aftermath of Hurricane Andrew in 1992, with the primary purpose of assisting members of the Realtor® family who are victims of officially declared natural disasters such as hurricanes, tornadoes and more. In 2004, when an unprecedented four hurricanes touched down in Florida within six weeks, the DRF received more than $2 million in donations.

"The assistance and the outreach we received from the Realtor community made us realize anew that the profession is [one] in which people reach out to help their fellow man," says Nan Harper, co-owner of Harper-Pinzino Island Realty in Pensacola Beach, who received DRF assistance when her home and business was destroyed by Hurricanes Ivan and Dennis.

Joan Cornett, sales associate with Bill Mancinik, Realtor, in DeLand, awoke on Feb. 2, 2007, to find her dreams "evaporate in one brief moment." Three tornadoes-now known as the Groundhog Day Tornadoes-blazed a path of destruction across Lady Lake, The Villages, DeLand and New Smyrna Beach. "A house is a hard thing to lose," says Cornett, who saw the home in which she raised her son reduced to a pile of debris. "I submitted photos of the damage with forms [to the DRF] and was able to get some assistance based on the enormity of the damage.

"We are all vulnerable to anything when it comes to Mother Nature," Cornett adds.

"The fund is for natural disaster assistance-whether here in Florida or in other states," says Todd Dantzler, 2008 DRF chairman. "We hope and pray that we're not needed, but if so, we are there to respond and we take our responsibilities very seriously."

"I would like to see contributions reach the $10 million level," says past DRF chairman and 2004 FAR President Russell Grooms. "We could make it a self-perpetuating [entity] and always have funds available for emergencies."

before and after

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:08:30 -0500

BEFORE:

· No idea how to jump-start a full-time real estate career.

AFTER:

· Goals, objectives, strategies, plans and actions for taking it to the next level.

Hudson's GOSPA
Goal: Hudson must set at least one goal and fine-tune it annually.

Objectives: Steps that Hudson must take to support her goal. For example, to make a smooth transition to real estate sales, Hudson must list and sell enough properties to generate a livable income and save for retirement).

Strategies: Hudson's strategy (i.e., a plan of action for achieving specific objectives and the goal that those objectives support) will include deciding which areas to farm in order to sell enough properties to reach her goal.

Plans: The "map" that Hudson will follow to carry out her strategy. For example, her strategy for becoming a top lister in a specific farm area could include isolating neighborhoods/niches and becoming a specialist in them.

Actions: Activities that Hudson must carry out in support of her plan (e.g., talking with a specific number of prospects each month).

Source: Jay Barber.

makeover

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:07:00 -0500

Got GOSPA?

Our expert shows this part-time sales associate how to set Goals, Objectives, Strategies, Plans and Actions for full-time success.

When you ask most people what they're going to do when they retire, they smile broadly as they envision countless rounds of golf or days spent lounging with a good book. For Eleith Hudson, selling real estate is what she's planning to do in her retirement. She's had her license for 20 years and has always wanted to be in the practice full time but hasn't been able to break away from her job as a nurse. "I work labor and delivery ... need I say more?" jokes Hudson, a sales associate whose license is listed with Evergreen Brokers Inc. in Cooper City. But her retirement from nursing is in the not-too-distant future. "Time is drawing near," she says, "and it's time for me to start taking care of me now." She's so determined to make a go of real estate that she recently spent a week's vacation in the classroom-studying for her broker's license. "I'm so close and have painstakingly obtained all the pieces to begin my new profession, but I need guidance to organize everything appropriately," she adds.

Bring in the Expert
Hoping to get that guidance, Hudson consulted with real estate trainer Jay Barber. Here's what he had to say.

1. Follow a Formula
Barber prescribes a no-nonsense formula based on the training he received as an IBM salesman back in the 1970s. He calls it "GOSPA" (an acronym for Goals, Objectives, Strategies, Plans and Actions), and while he can't guarantee it will help Hudson to finally create the career of her dreams, he feels it has the potential to improve her odds. "In this market, it's critical that you follow a formula like GOSPA so you know what you're doing and, more importantly, why you should or shouldn't be doing it."

2. Own Your Goals
Since the "G" in GOSPA is for goals, Barber wants Hudson to clear her mind and write down one or two statements describing what she wants to achieve in her career. "If you don't write it down, Eleith, you don't believe it," he says. "Think of your goal as the top of a pyramid. Everything you do will support this goal and have a cascading effect. For example, maybe your first goal is monetary and you want to equal the income you currently make in nursing. Or maybe you want to list X number of properties each month. Or, as a long-term goal, you might want to be recognized as Realtor® of the Year. Make sure your goals are specific and attainable. And, above all, believe in them." Barber notes that goals rarely change, so Hudson should revisit them annually to see if they still apply and update them if they don't.

3. Find Your Objectives
Objectives are the steps that Hudson must take to satisfy her goals. And, according to Barber, it may take several objectives to reach just one goal. If her goal is to live to 85, for example, he says her objectives would include all the things she can do to improve her chances of reaching that age (e.g., getting enough exercise, eating right and renouncing unhealthy habits). If her goal is to generate a six-figure income, her objectives will include calculating how many houses she needs to sell within a specific price range to meet that goal. Hudson's objectives generally won't change, Barber says, unless circumstances alter her goals. He encourages her to re-evaluate her objectives about every six months to make sure they still support her goal.
"My recommendation is that you print out your goals and objectives on a piece of paper, frame it and hang it over your desk so you look at it every day," says Barber.

4. Devise Strategies
As her third step in the GOSPA formula, Hudson must figure out which strategies to put into practice. Barber explains that strategies form the piece of the puzzle that will allow Hudson to implement the objectives she needs to follow in order to reach a particular goal. Take, for example, Hudson's hypothetical goal of generating a six-figure income. She will need to have a strategy to meet each objective in support of that goal (in her case, to sell X number of houses at X sales price). Her strategy could also include how she's going to meet the objectives needed to generate listings.

It's easy to confuse strategies with objectives, says Barber, who points out that strategies are the "how-to" component of objectives. For
example, if Hudson has a lot of listings but buyers are scarce, her strategy, or how-to, might include coming up with ways to better market those listings to buyers.

5. Plan It
The fourth element of Barber's GOSPA formula is the plan that Hudson will need to devise to accomplish a specific strategy. For example, if her strategy involves learning how to better market herself, she'll need to come up with a plan that outlines the specific things that will help her implement that strategy. "You should ask yourself, ‘OK, what am I going to do to support my strategy?'" Barber explains. "It could be to work closely with your broker [in a mentor/student situation] or ... to team up with a top-producing sales associate," he says.

"Plans are of a much shorter duration than the rest of the GOSPA," Barber continues. "They are three-month or four-month steps. You're going to try some things and they're not going to work, so you'll have to revisit your plans and in some cases your strategies every 30 to 60 days."

6. Act on It
Finally, Barber explains that actions are the specific activities that Hudson will implement to put her plans into action. "Plans are ‘OK, how do I identify actions that will get me from point A to point B?'" he explains. "And actions are ‘How do we get there?'"

Again, if her goal is to generate a six-figure income, her objective would be to sell X amount of real estate, followed by a strategy to work in a specific price range. Her plan would likely include deciding which neighborhoods to farm, and her actions might include marketing herself to homeowners within 30 to 60 days.

"Remember, Eleith, everything you do must tie in to your GOSPA," says Barber. "It takes discipline and constant revision. Maybe one of your objectives wasn't realistic. Or maybe it's the strategy and the way you were going about it. About every three months, look at your plans and actions, and ask, ‘Where am I?' With the limited amount of free time that you have, it seems GOSPA will be even more important for you because you need to know what you're doing and why. Follow it and take little steps leading up to the ultimate goal of where you want to be."

This column provides advice from industry experts concerning marketing, technology and business issues. It won the Silver Award in the 2007 Best Column category from the Florida Magazine Association

What to say TO FSBOS

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:03:07 -0500

What to Say to FSBOs

The angst that accompanies cold calling FSBOs is rooted in confusion about what to say. Here's a primer on scripting from our experts:

Don't focus on your services, but the seller's needs. Send a letter to sellers detailing some useful information that can help them sell the home. You can give them advice about planting flowers or where to advertise. It gets your name out as a professional.

Don't offer your listing service right away. Don't go in for the kill immediately. Not many FSBOs will work with you until you first build a relationship.

Be available in any way that the consumer wants you to be. Future contact, whether it's by phone, e-mail, text message or in person, should be determined by the customers, not you. They must know that you'll talk to them in a way that meets their comfort level.

Practice, practice, practice. Use a friendly audience-your work colleagues or family members-to practice your script at least 15 minutes per day. As with any skill or hobby, you can't become razor sharp at your cold calling skills unless you practice.

Ready, willing and able buyer?

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 08:00:02 -0500

Ready, Willing and Able Buyer? The Courts Decide.

A court determines that a gratuitous promise of financing from a friend is not sufficient to support a buyer's specific performance claim.

Friends often loan friends money. But is a friend's promise to finance a buyer's real estate purchase sufficient to support the buyer's assertion that he or she is ready, willing and financially able to buy the property on the agreed-upon closing date and thus is entitled to specific performance?

That's a question the 5th District Court of Appeal (DCA) was asked to decide in the case Lusignan v. Lusignan (5th DCA, 2008).
Here's what happened.

Shortly after the seller's house was damaged by hurricanes in 2004, she entered into a contract to sell it to her stepdaughter for $100,000. The contract included a Nov. 1, 2004, closing date and was contingent on the buyer obtaining financing.
The buyer claimed that a wealthy friend's husband had agreed to loan her $100,000.

Seller Leaves State
Several days before the closing, the seller left Florida. As a result, the closing didn't take place on Nov. 1 (the buyer alleged that she was unable to contact the seller and thus unable to close). The seller eventually returned to Florida and made substantial repairs to the home. Soon afterward, the buyer contacted the seller to schedule a closing. But the seller said she wasn't required to close (since the contract's Nov. 1 closing date had passed) and claimed that she hadn't left the state to avoid the closing and could've easily been contacted by telephone. The seller filed a lawsuit, seeking a determination by the court that the buyer had no claim to the property. The buyer filed a counterclaim, asking that the court require the seller to convey the property to the buyer pursuant to their contract, as well as breach of contract.

Ruling Favoring Buyer Reversed
Following a nonjury trial, the court of appeal ruled in favor of the buyer and ordered specific performance of the contract. It concluded that the buyer was ready, willing and able to perform the contract but was unable to contact the seller once she left the state-making the Nov. 1 closing an "impossibility." The seller appealed the decision to the 5th DCA.

On appeal, the 5th DCA reversed the trial court's decision and explained that pursuant to Florida law a buyer seeking specific performance of a contract must allege and prove that the buyer either (1) paid the balance due under the contract; (2) tendered the balance or had been ready, willing and able to pay such balance; or (3) was excused from performance. In this case, the 5th DCA determined that the trial court "misunderstood" the meaning of "ready, willing and able," and agreed with a series of decisions by the 4th DCA, wherein that court of appeal had outlined a three-pronged test for determining whether a buyer is financially ready and able to buy, specifically: "where the purchaser relies primarily, not upon his own personal assets, but upon the proceeds of a contemplated loan or loans to be made to him by a third party, he is financially able to buy only if he has a definite and binding commitment from such third-party loaner. Even though the third party is financially able, his promise is of no avail unless made for an adequate consideration."

The 5th DCA indicated that the trial court had relied on the testimonies of the buyer and of the friend's husband, who, although acknowledging that he wasn't a mortgage lender, said he was "simply going to write [the buyer] a check."

This evidence, according to the 5th DCA, was insufficient to establish that the buyer was financially ready, willing and able on the closing date and thus entitled to specific performance. The 5th DCA noted that although the buyer's friend's husband agreed (as a friend) to provide the loan, and had claimed financial ability to do so and had even provided written confirmation of the financial ability to do so, no evidence had been presented by the buyer of his financial standing, of her having a binding commitment from him or that the promise was anything more than gratuitous. Therefore, the 5th DCA determined that the trial court had wrongly ordered specific performance of the contract.

Finally, the court rejected the buyer's claim that she was alternatively entitled to damages (the difference between the contract price and the current fair market value of the property) under a breach of contract claim. The 5th DCA concluded that since the buyer couldn't be considered ready, willing and able financially under the specific performance claim that she couldn't be considered ready, willing and able under the breach of contract claim eith

Your market is changing. Are you?

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 07:58:22 -0500

Your Market is Changing. Are You?

Real estate is always changing. The way you sold yesterday might not work today. Here's how to prosper when everything around you is swirling.

"How many of you are working in a changing market?" That was the question I asked an audience of 1,100 Realtors® in January 2008 at the Certified Residential Specialist (CRS) conference. About 60 percent of the hands went up. The other 40 percent of attendees were in a changing market too; they just didn't realize it.

They also didn't realize that they might be changing careers soon, because long-term success in real estate depends on three things- acknowledging that the market will change, anticipating market movement and adapting to it.

Acknowledge Change
Too many sales associates are missing opportunities today because they're mentally stuck in yesterday's market. If that living in the past mindset could be manifested in their appearance, they might look like the cast from the movie "Grease."

You may not have to look farther than your office to find sales associates (or the empty desks they used to occupy) who are mentally still living the 2004 market. Most likely these associates entered real estate sometime after 2000, so they'd experienced the market that seasoned sales associates know comes around only about as often as Haley's Comet.

Veteran sales associates also understand that the real estate market is like a Lava Lamp. Globs heat up and rise; then the globs cool off and fall. To survive these ups and down, it's important to realize that markets, as fashions, change. So, focus on today's reality, unless you dig wearing poodle skirts or tee shirts with a pack of Lucky Strikes rolled up in the sleeve.

Anticipate Market Movement
There are very few things constant in real estate-other than change. This isn't a difficult concept, because we can find ourselves in one of only three markets. There's a buyer's market, a seller's market and a market that is in relative equilibrium. Most sales associates know the market they're in, but few try to anticipate the market's movement, which is important if your goal is to give your customers the best advice possible.

Most of the country, including Florida, is now considered to be a buyer's market, characterized by heavy inventory and falling prices. But, real estate is very local. So, what is your specific market like? Is your market getting worse? If it is, then you should advise your sellers to get more aggressive and lower their asking price. If the market is improving, the price reductions may not have to be as deep.

There's only one way to know if your market is improving, and it's not by watching CNN or reading The Wall Street Journal. It's by tracking the overall inventory in your market and the submarket in which you specialize. If inventory is growing, the market is continuing to move further from a seller's market and deeper into buyer's market territory. If inventory is shrinking, the reverse is true.

Inventory, or the change in it, is the market's compass. A change in inventory indicates a change in market direction. At a bare minimum, you should track the number of listings every month, and in so doing, you'll be among the first to spot the market's change in direction.

When you do this, you can confidently advise your customers because you can base your recommendations on information you know to be reliable, rather than on the opinions of the many real estate experts. In addition, you'll have elevated yourself above much of your competition because of your knowledge.

Adapt to Market Changes
When the market shifted from a seller's market to a buyer's market, as it did in Florida about three years ago, you saw your seemingly endless supply of buyers dry up. The red hot market we experienced had conditioned sales associates to expect buyers to flock to their open houses with escrow checks taped to their foreheads. Those days are gone and so are many of the sales associates who couldn't adapt to a changing market.

I teach sales associates a simple concept called "Fish for the fish that are plentiful." During the seller's market, every time we would throw our net into the buyer's pond, we would bring up more buyers then we could handle. Why? Simple-buyers needed us. Homes were selling so fast that buyers would be at an extreme disadvantage if they were not using a sales associate.

That's not as much the case during today's buyer's market. If you're still throwing your net into the buyer's pond, forget it. The buyers are there, but they've gone so deep that you couldn't bring them to the surface with dynamite. They'll show themselves when they're ready.

Instead, start throwing your net into the seller's pond. Sellers are the ones who need our help now. Your net will overflow, and you'll be amazed at how easy it is to get listings. Don't be fooled: a listing taken and not sold pays the same as the amount you receive when you spend two weeks showing buyers every home in town only to find out they have horrible credit. Qualify sellers the same way you used to qualify buyers. Determine if they're willing or able to afford to sell at today's market value.

There's an axiom in real estate that says when listings are easy to get, they're hard to sell and when buyers are plentiful, properties are not. That's the way it is and will be. Don't fight it; just learn to adapt to the market conditions, and you'll enjoy a long and fruitful career.

FHA LOAN Limits Open doors

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 07:56:34 -0500

FHA Loan Limits Open Doors

FHA loans are becoming more attractive. Here's how to market to the people who can be helped with these new loan limits.

"This is great news for buyers," says Cathy Alley, a sales associate at ERA American Realty in Niceville. She's referring to the March announcement by the Department of Housing and Urban Development (HUD) that it increased the size of loans that the Federal Housing Administration (FHA) can insure for the remainder of 2008.

"I think the raising of FHA limits is going to help not only buyers in our area, but it will also generate activity across the nation," says Alley. "When the market was hot, first-time buyers really couldn't buy property because they were being outbid by investors. This will bring the average American back to the homebuying market."

What the New Rules Mean
"FHA loans," as they're called, are issued by traditional lenders but insured by the FHA. Because they allow down payments of as little as 3 percent, they've been valuable in helping lower-income buyers enter the housing market. But as home prices rapidly increased, FHA loan limits remained stagnant. That left lower-income buyers with fewer homes they could purchase through the FHA program.

The new FHA rules are a result of the economic stimulus package Congress passed in February of this year. Through the package, Congress asked HUD to reconsider its median home prices in counties throughout the nation, which it uses to determine which loans it can insure. In most counties, including those in Florida, the FHA is permitted to insure only loans that don't exceed 125 percent of the county's median home price. In designated high-cost areas, the FHA can insure only loans that don't exceed 175 percent of the median home price. By revising the median home prices upward, HUD is opening up the FHA program to more buyers.

For instance, in Miami-Dade County, the new median price is $339,000, which has raised the FHA loan limit from $362,790 to $423,750. In Lee County, the median price has been reset to $285,000, which has raised the FHA loan limit from $270,750 to $356,250. In Manatee County, the median price has been adjusted to $354,000, increasing the FHA loan limit from $336,100 to $442,500. Check the limit in your county by visiting HUD's Web site: https://entp.hud.gov/idapp/html/hicostlook.cfm.
On the same day HUD increased FHA loan limits, the Office of Federal Housing Enterprise Oversight increased limits for loans guaranteed by Freddie Mac and Fannie Mae from $417,000 to $729,750. That means that buyers who needed financing greater than $417,000 in the past-and were required to pay higher interest rates for those jumbo loans-can now get loans up to $729,750 without paying the jumbo loan premium.

Spread the Word
As soon as the new FHA limits were announced, sales associates throughout Florida sprang into action. "I take any opportunity to reconnect with buyers," says Toni Campbell, a sales associate at Keller Williams Advantage II Realty in Orlando. "Buyers need to hear something positive, so I started going through my contact list and letting them know that the FHA loan limits had been raised and that the change would help them get more of a home than they could afford before."

Once Campbell gets buyers on the phone, her dialogue is simple. "I explain the difference with the new loan limit," she says. "I say, ‘If you could normally afford a $350,000 home, this might allow you to get a home up to $375,000.'" Her pitch has worked. "I had two people who were looking at renting, and once I explained the FHA program, it piqued their interest in buying today rather than waiting two years."

Alley has sent a postcard to buyers in her market explaining the new limits. On the front, she asks, "Could a FHA home loan be right for you?" On the back, Alley explains the benefits of the FHA program, including the low down payment requirement, the provision that allows sellers to contribute to buyers' closing costs and the provision that allows gift funds to be used.

"I'm hopeful this will open doors to buyers who haven't been able to buy," says Alley. "And maybe the people I sent it to aren't in the market themselves, but they may have a son or daughter who can afford to buy but who doesn't have the cash for the down payment, and the parents can help out."

The worst-case scenario for Alley is that even if the postcard doesn't bring buyers in the door to take advantage of FHA financing, she's still showing consumers that she's smart and diligent. "Anything going out to my database that helps people understand that I'm still in the marketplace and shows I'm working hard for them-that helps."

Glenn Stein, broker/owner of Realty Executives Ocala in Ocala, turned to the Internet to get the new FHA information out to his target audience. He posted news of the FHA changes on his Web site. Though he hasn't had much response to his Web post, he's also discussed the new FHA rules with buyers when he thinks the program might fit their needs. "Sometimes we can overcomplicate the jargon. Buyers are simply interested in, ‘Can I buy this house?'" he says. "So it's a simple conversation with the sales associate and buyers in the car between showings. Most people think the FHA program is only for $100,000 houses, and when we're showing houses right at the top of the FHA limits, we say, ‘Do you realize you have the option of 3 percent-not 5 or 10 percent-down on this house?'"

John C. Davison, broker/owner of The Davison Real Estate Group in Longwood, recommends that you also broaden the discussion to include other housing assistance programs. "I've begun to target first-time buyers more frequently to take advantage of the possibility of putting clients into a house with very little money down," he says. "I even take it a step further and tell them about no-money-down options through government down payment assistance programs. With some programs, like [the Nehemiah Program], the Dream Homeownership Program and Family Home Providers, sellers can contribute up to 3 percent of the purchase price."

Will the New Limits Work?
Sales associates are cautiously optimistic that the new FHA loan limits will bring buyers back onto the homebuying playing field. Davison believes they're an asset, but not for all buyers. "There are definitely people in our area that the new FHA limits will help," he says. "But lenders still have standards that need to be met, and we all know how tight those standards have become. Also, the increased loan limits do nothing for people who are saddled with selling a house to be able to move into another house. It's like the corner candy store in a small town. It may double its size, but how much candy can people in that area buy?"

For Terry Dona, the new limits are already helping buyers beat tough down payment requirements. The sales manager at Metro Mortgage and Gulf Coast Associates in Bonita Springs, who's also a mortgage underwriter and HUD lender, says that since the new FHA limits were introduced, she's seen double the number of buyers using FHA loans to purchase homes. "Probably the biggest issue, especially for younger buyers, is the ability to get a down payment together," she says. "With not-for-profit down payment assistance programs, buyers with a decent job and good credit can get into a house for as little as $500. That makes a huge difference, and it makes it possible for quite a few people to buy."

FHA LOAN Limits Open doors

Dayse Grillo (Keller Williams Classic Realty) — Mon, 21 Jul 2008 07:55:40 -0500

Are you a real estate professional?

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:49:33 -0500

Are you a real estate professional? Maybe not, says IRS

WASHINGTON - July 18, 2008 - The Internal Revenue Service (IRS) is taking a closer look at income tax statements submitted by individuals claiming to be real estate professionals, given that the agency has released new guidelines regarding this tax status.

Licensed real estate agents and brokers do not always qualify for real estate professional status under the new rules, which mandate that individuals spend no less than 750 hours on qualified real estate activities: developing, redeveloping, constructing, reconstructing, acquiring, converting, renting, operating, managing, leasing, or selling property. This means that those with full-time jobs elsewhere cannot claim to be real estate professionals.

Additionally, the IRS says losses tied to real estate activities are either passive or materially participating passive, with passive losses deductible only from passive income and materially participating passive losses deductible from other income. Those who use limited partnerships to hold property are not considered to be materially participating, and the agency is increasingly targeting limited partnerships for auditing.

The IRS also is looking to make sure those claiming material participation either work 500 hours per property or aggregate the properties into one 500-hour period, and they are cracking down on those who do not meet this benchmark.

Real estate investors are eligible for $25,000 in deductions from passive income up to $100,000 in taxable income. Real estate professionals do not have dollar or income limits, making the distinction ever-important to the tax planning process.

Is save our homes portability selling houses?

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:47:37 -0500

Is Save Our Homes portability selling houses?

SEBRING, Fla. - June 30, 2008 - Raymond McIntyre's office generated an interesting set of numbers this week: 222 people have moved to Highlands County, and brought their Save Our Homes tax exemptions with them.

Just 75 homeowners left the county, and applied to transfer their Save Our Homes elsewhere in Florida. Net gain: about three to one, said McIntyre, Highlands County's property appraiser.

So, three real estate agents and brokers were asked, are people moving to Highlands County because they can buy a cheaper home, with lower taxes?

Save Our Homes explained

When people buy a home, they can apply for a $50,000 homestead exemption. If their home costs $100,000, the homestead exemption allows them to pay taxes on $50,000 instead.

There's a second exemption, called Save Our Homes. If the market value of a house rises, for example, from $100,000 to $110,000 in a year, or to $200,000 in 10 years, the county tax assessor can raise the market value of the house by only 3 percent per year. So a house worth $100,000 in 1998 can have a maximum market value of only $134,000 in 2008.

That means the cumulative effect of Save Our Homes is enormous.

On Jan. 29, Florida voters approved Amendment 1, which allowed homeowners to transfer the Save Our Homes exemption when they bought a new home. Its feature, called portability, would help sell homes, real estate agents said. People had been living for years in homes that were too large or too small, and that big tax break would be the catalyst for trading places.

What Realtors say

Eileen Mikulecky is the broker at Keller Williams Realty in Sebring. She's considering selling her house and buying a condo.

"I would never have considered it," Mikulecky said. "Because the taxes on the condo would have been astronomical, if not for Save Our Homes." But what about other buyers?

Steve Fruit whimsically calls his partnership at RE/MAX Realty Plus II with his wife, Janine, "Team Fruit." He keeps statistics on every house marketed in Highlands County. As of June 15,461 were purchased, said Fruit.

"Most of the buyers I have dealt with - I've been educating them," said Fruit, one of the 15 top real estate agents in the county. "A few seem to be conversant about Save Our Homes, but it's amazing how many don't know about it."

Mikulecky agrees. "I've never had it said to me, ‘I'm buying or selling because of Save Our Homes.' They do want to know, ‘What are the taxes?' Then I explain portability. But the general public is not informed."

So, the real estate agents think, the 222 home buyers who moved to Highlands County didn't come here because they knew they would get a Save Our Homes tax break.

Should they be told?

A few months ago, a group of real estate agents approached Highlands County with an idea. Should they market Highlands County on the east and west coasts, where homes and taxes would be bargains - way cheaper than St. Petersburg, Tampa, Miami and Fort Lauderdale?

The disagreement then was who would pay for an expensive advertising campaign. The real estate agents wanted the county, the cities, the chambers of commerce and the economic development groups to foot the bill.

Whoever ends up paying, Fruit and Mikulecky still think it could bring homebuyers to Highlands County.

"I think it would be helpful," said Fruit. "I think marketing would be very effective for those people who have not made decisions yet about where to go."

"We have all these beautiful lakes," said Jeri Canale, a real estate associate at Exit Realty All Stars in Sebring. "Now we have shopping. We have everything in Highlands County you need, including an Olive Garden."

Even McIntyre doesn't know exactly what to make of the statistics, because the homebuyers haven't been questioned about why they moved here.

"I don't know what features attracted them to Highlands County," McIntyre said. "We don't have a complete picture to look at. These are homesteads. We don't know how many moved here, or moved out, who lived in rental homes, or bought second homes here and didn't apply for homesteads. We don't even know, at this point, where the majority came from. That may be interesting to the real estate agents."

Is save our homes portability selling houses?

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:46:07 -0500

Amendment 5

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:43:13 -0500

Amendment 5 opponents begin campaign

Amendment 5

What will voters see on their ballot in November? What would passage of Amendment 5 do for homeowners? For schools? For local governments? FAR has posted talking points and additional information on its Web site, floridarealtors.org. Click here for more info.

TALLAHASSEE, Fla. - June 24, 2008 - An aspiring state Senate president began his campaign on Monday to defeat a ballot proposal that would slash property taxes by raising the state sales tax and possibly carving into the state budget.

The political battle pits Mike Haridopolos, in line for the Senate presidency in 2010, against former Senate President John McKay. McKay, a Bradenton real estate developer, proposed the tax swap as a member of the state Taxation and Budget Reform Commission, which voted this spring to place the question before voters in November.

The tax-swap fight transgresses usual political boundaries. Both Haridopolos and McKay are Republicans. Backing Haridopolos are school boards and the state teachers union, farmers, hospitals, AARP and the fiscally conservative National Federation of Independent Business. It's an unlikely coalition of groups that often lobby on opposing sides, but whose overlapping interests in state funding and tax exemptions - as well as possibly currying favor with an incoming Senate president - have united them against Amendment 5.

On McKay's side: the powerful Florida Association of Realtors (FAR), which invested $1 million in the campaign to pass the Amendment 1 tax cut in January and says it intends to spend at least as much on Amendment 5 this fall.

"Some of the groups that stood against this today, I haven't seen any comprehensive property tax relief coming from them," said John Sebree, FAR vice president of public policy. "Is any property tax relief good to them?"

Amendment 5 would eliminate the portion of property taxes that pay for public schools, in exchange for increasing the sales tax by a penny, repealing some sales taxes exemptions and exclusions, cutting the budget, revenue growth attributable to Amendment 5 or some combination of those.

The state-mandated schools portion of property taxes is worth $8.9 billion, about 25 percent of total property tax collections. Amendment 5 would require lawmakers to pay back the entire amount to schools.

Wayne Blanton, director of the state School Boards Association, said Monday that he does not trust lawmakers to do it. "They're more prone to come in and cut services than they are to do the right thing."

McKay said that's a sad commentary, "but in the event that the Legislature does not uphold its constitutional duty, as outlined in the amendment, we'll be in court very quickly."

Haridopolos has argued that growth in school funding will boost the true cost of the plan from $8.9 billion to $11 billion.

Raising the sales tax by one penny, he said, will generate about $3.5 billion, leaving lawmakers without sufficient means to fill the gap unless they pass "the biggest tax hike in Florida history," carve deeply into the state's shrunken budget, or both.

Haridopolos and McKay disagree on the potential for filling in the gap. On Monday, Haridopolos challenged McKay to debates across the state on Amendment 5.

McKay said he would be happy to debate Haridopolos, a responsibility he would share, he said, with other commission members.

McKay criticized some of his opponents for "playing loose" with the numbers.

"Some folks are quoting future projects for the schools portion of property taxes, but then quoting only what a penny in sales tax would raise today," he said.

Sebree said the relief from Amendment 5 would reach much further than the effects of Amendment 1, which primarily targeted homesteaders.

"This amendment would affect every property owner in Florida," he said

Amendment 5

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:42:27 -0500

Amendment 5 opponents begin campaign

Amendment 5

Ask banks about a short sale

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:39:54 -0500

Ask banks about a short sale, don't demand it

Editor,

I would like to reply to the article: Strenuous obstacles to short sales compound headaches for Florida homeowners (http://www.floridarealtors.org/NewsAndEvents/n3-070908.cfm)

I live in a small town in Jackson County. Our county has approx 47,000 people, and we are one of the largest counties in the state. I have been in the real estate business for 14 years, and have had my license eight of them.

I just received an approval yesterday for my third short sale in six months. I sold the home of a wonderful family. Never in their wildest dreams would they have ever thought they would be losing their home. I am also helping an agent from another company to do a short sale. It is my buyer. We have already heard back from the second mortgage company agreeing to do a short sale, and are still waiting to hear from the first. The offer was submitted July 2, 2008.

Now don't get me wrong, I have had two other deals dissolve and go into foreclosure, and one that will be going into foreclosure because the second mortgage company completely said "No" to a short sale.

I understand everyone's frustration, but it is how you work with the mortgage companies. You need to ASK; do not DEMAND. As per your article, out of the 4.99 million homes expected to close in 2008, 400,000 will be short sales - so you are not the only one trying to ask for help for your clients.

Be patient, and remember to tell your clients that this may not go through. Do not get their hopes up

Ask banks about a short sale

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:39:12 -0500

Rates Sink on all types of mortgages

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:35:34 -0500

Rates sink on all types of mortgages

WASHINGTON - July 18, 2008 - Mortgage rates fell this week with 30-year mortgage rates dropping to the lowest level in six weeks as investors became less worried that the Federal Reserve would soon tighten credit policy to stall inflation.

Freddie Mac, the mortgage company, reported Thursday that 30-year fixed-rate mortgages averaged 6.26 percent this week.

That was down from 6.37 percent last week. It marked only the second weekly decline in the past eight weeks and left the 30-year rate at the lowest point since it averaged 6.09 percent the week of June 5.

Analysts attributed the decline in part to comments made this week by Federal Reserve Chairman Ben Bernanke. He indicated in his mid-year economic report to Congress that the central bank was poised between concerns about rising inflation pressures and the weakening economy.

Many analysts viewed Bernanke's comments as a signal that the central bank will delay tightening rates to give the fragile economy and banking system time to recover. The Fed is hoping that the sluggish economy will help dampen inflation on its own.

"Mortgage rates fell this week amid market speculation that the Federal Reserve may not raise the overnight bank lending rate this year after all," said Frank Nothaft, chief economist for Freddie Mac.

Other rates dropped as well, according to Freddie Mac's nationwide survey.

Rates on 15-year fixed-rate mortgages, a popular option for refinancing, dipped to 5.78 percent, down from 5.91 percent last week.

Rates on five-year adjustable-rate mortgages fell to 5.80 percent, down slightly from 5.82 percent last week, while rates on one-year ARMs dropped to 5.10 percent, down from 5.17 percent last week.

The mortgage rates do not include add-on fees known as points. The nationwide fee for 30-year, 15-year, five-year and one-year mortgages all averaged 0.6 point this week.

A year ago, rates on 30-year mortgages stood at 6.73 percent, 15-year mortgage rates averaged 6.38 percent, five-year adjustable-rate mortgages were at 6.35 percent and one-year adjustable-rate mortgages averaged 5.72 percent.

Home foreclosures have hit record highs as sagging home values have left some borrowers owing more on their mortgages than their homes are worth. With more empty homes being dumped on an already glutted market, prices are being pulled lower. Buyers, however, have become harder to find as credit has gotten harder to secure.

Rates Sink on all types of mortgages

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:34:54 -0500

GREAT TIME TO BUY FLORIDA

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:32:25 -0500

GREAT TIME TO BUY FLORIDA (edit/delete)

This article focuses on market positives, all of which support the message that now really is a great time to buy real estate in Florida. Feel free to include these stats in your blogs or drop some gems into your next business networking conversation. Take this list along, too, if you visit a newspaper editorial board:

The upside of Florida real estate: 20 market positives

Let's take a look at some of the opportunities and positive indicators for the future of Florida's real estate market.

Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida's population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.

People continue to move here. It's estimated that 900 people move here every day. Based on recent trends, Stan Smith, director of UF Bureau of Economic and Business Research, said he expects Florida to add about 300,000 residents a year during the next two to three years unless there is a recession.

Five of the top 15 cities in the Milken Institute's 2007 "Best Performing Cities" survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.

Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida's unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.

Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called "Where the Jobs Are" found that 7 of the hottest 15 job markets are in Florida.

Let's take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, "Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact." Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened-house prices went up.

Grant Thrall, a professor of what's called Economic Geography, explains this phenomenon this way-residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.

Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state's economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor's property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor's insurance reform commission.

Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed's recent rate cut, we're already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed's action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.

Homeownership has value: Realtors believe... and research supports that belief ... that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.

Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.

Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They're also shown to have a higher lifetime annual income.

People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.

Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

2007 Florida Association of Realtors® (FAR) President Nancy Riley says, "Florida Realtors know buying a home is a very personal investment - an investment in a family's future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community."

Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.

Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.

Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that "the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun." Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.

And let's not forget the things that brought people to Florida in the first place, and will continue to attract them - beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It's no wonder that Florida's combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll's "most desirable places to live" survey.

GREAT TIME TO BUY FLORIDA

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:30:48 -0500

The upside of Florida real estate: 20 market positives

Let's take a look at some of the opportunities and positive indicators for the future of Florida's real estate market.

Long-term economic and demographic trends continue to favor Florida. By 2010 it has been forecast that Florida will be the third most populated state in the country. Florida's population is expected to increase about 75 percent by 2030. Florida demonstrates a long history of strong growth. It has been one of the 10 fastest-growing states in the U.S. for each of the past seven decades, and often it has been in the top four, according to census data. Population growth will continue to provide a foundation for other economic growth such as new jobs and growing incomes. All of which is good for real estate.

People continue to move here. It's estimated that 900 people move here every day. Based on recent trends, Stan Smith, director of UF Bureau of Economic and Business Research, said he expects Florida to add about 300,000 residents a year during the next two to three years unless there is a recession.

Five of the top 15 cities in the Milken Institute's 2007 "Best Performing Cities" survey, which looks at sustainable economic growth, are in Florida, including the No. 1 city, Ocala. A total of 13 Florida cities are in the top 50.

Low unemployment. Almost 120,000 jobs were created in Florida in the year between August 2006 and August 2007. Florida's unemployment rate has hovered at or under 4% for a long time; and was 4% in August 2007, according to the latest data available from the U.S. Department of Labor. That not only puts it well below the national unemployment average, it also is the lowest unemployment rate among all ten of the most populous states.

Jobs are plentiful, and that trend will continue. A recent study by Bizjournals called "Where the Jobs Are" found that 7 of the hottest 15 job markets are in Florida.

Let's take a look at the weather. If you think the hurricanes we experienced are going to have long-term effects on the Florida real estate market, consider this tidbit from Fortune Magazine. It recently reported, "Economists and geographers who have studied how natural disasters affect real estate values have generally found there to be no lasting impact." Example #1: When Hurricane Hugo hit Charleston, S. C., home values were actually higher one year later. Example #2: That same year, 1989, a huge earthquake made big news in San Francisco, and the same thing happened-house prices went up.

Grant Thrall, a professor of what's called Economic Geography, explains this phenomenon this way-residents move away and home prices fall only when natural disasters start becoming regular occurrences in an area, not when they happen periodically. And while the hurricane seasons of 2004 and 2005 may still be fresh in our minds, the fact is, historically it was a fluke. Eight storms hit the Florida mainland in those two years. But if you look back at the 50 years prior, only six Category 3 or higher storms hit the Florida mainland in half a century.

Gov. Charlie Crist, state lawmakers and business groups are committed to finding real solutions to the escalating costs and shortage of property insurance in Florida, as well as much-needed property tax reform. Florida Realtors will continue working closely with lawmakers to help resolve these complicated issues and keep the state's economy moving forward. For example, 2007 FAR President Nancy Riley sits on the governor's property tax reform commission, and 2005 FAR President Frank Kowalski served on the governor's insurance reform commission.

Interests rates currently are still low, on a par with interest rates in the 1960s. And thanks to the Fed's recent rate cut, we're already seeing lower rates on home equity and mortgage loans, including jumbo loans. The Fed's action effectively increases the number of homebuyers able to make a purchase, which should increase demand, and also help support home prices. Home prices continue to stabilize, inventory is plentiful and homebuyers have lots of options.

Homeownership has value: Realtors believe... and research supports that belief ... that homeownership provides a variety of benefits, tangible and intangible, to the community as well as the individual homeowner.

Studies show that home equity is still the largest single source of household wealth, both for the individual homeowner and for homeowners as a group. Home value is the most important single aspect for homeowners.

Owning a home leads to increased personal well-being. Research shows that people who own their own homes tend to show higher levels of personal esteem and life satisfaction, which in turn helps to make homeowners and their children more productive members of society.

Studies show that children raised in homes owned by their families are more likely to stay in school and more likely to graduate high school. They're also shown to have a higher lifetime annual income.

People who own homes have a strong financial stake in what happens to their community and tend to become more involved in community and civic affairs. Studies show that homeowners also interact with their neighbors to gain wider influence over their neighborhoods and communities.

Homeowners join up to 41 percent more civic and/or nonprofessional organizations than renters, such as the PTA or Scouts; vote in local elections 15 percent more often; enhance their neighborhoods with gardens 12 percent more often; attend church about 10 percent more often; and have a 3 percent greater chance of being interested in public affairs.

2007 Florida Association of Realtors® (FAR) President Nancy Riley says, "Florida Realtors know buying a home is a very personal investment - an investment in a family's future. Although research shows it is the largest single investment most families make and helps to provide security for the future, owning a home isn't just a financial investment. Ownership is about having a place to call home: a place where families build a future and become part of a community."

Over the past five years, the average homeowner has seen an increase of 50 percent in value, according to the National Association of Realtors® (NAR). Here in Florida, the statewide median home price has shown an increase of 52.5 percent from November 2002 to November 2007, according to FAR records. NAR housing industry analysts project that prices will rise about 2 percent next year, and in coming years, average home price appreciation should return to historical averages of around 6 percent.

Florida is a great place to live and work. According to Enterprise Florida Inc., the Sunshine State has one of the nation's strongest tourism industries; it is fourth in the nation in high-tech jobs; is the third largest exporter of high-tech goods and services; and is ranked as one of the best states in the nation to be an entrepreneur.

Orlando-based economist Dr. Hank Fishkind recently said in several media reports he believes that "the worst of the so-called housing crisis has probably been mitigated by the actions of the Fed. Recovery will take a while, but it has begun." Another economist, Dr. Lawrence Yun, chief economist with the National Association of Realtors, predicts that the Florida housing market will get stronger in 2008 and will be booming again by 2010.

And let's not forget the things that brought people to Florida in the first place, and will continue to attract them - beautiful beaches, fabulous weather and a friendly business climate, with no state income tax. It's no wonder that Florida's combination of temperate climate, outstanding recreational amenities and economic opportunity has consistently put us at the top of Harris Poll's "most desirable places to live" survey.

listings!!! SHORT SALE OPPORTUNITY

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:27:23 -0500

new search Listing 21-30 of 60 << previous next >>

Listing # O4820380

$215,000 Orlando - 5023 Bellthorn Dr bed/bath: 3/2 sq. ft.: 1622

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4821008

$210,000 Orlando - 7524 Harbor Bend Cir bed/bath: 3/2 sq. ft.: 1292

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4817040

$210,000 Orlando - 1703 Maplestead Ct bed/bath: 4/3 sq. ft.: 2004

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4854266

$205,000 Kissimmee - 2728 Woodstream Cir bed/bath: 4/2 sq. ft.: 2096

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4844694

$200,000 Orlando - 2516 Clarinet Dr bed/bath: 3/2 sq. ft.: 1530

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4857939

$200,000 Orlando - 1862 Bridgeview Cir bed/bath: 4/3 sq. ft.: 2161

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4810721

$200,000 Lake Mary - 468 Holbrook Ct bed/bath: 3/2 sq. ft.: 1681

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4821041

$200,000 Orlando - 8072 Aspencrest Ct bed/bath: 3/2 sq. ft.: 1326

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4821018

$178,000 Orlando - 14867 Huntcliff Park Way bed/bath: 4/3 sq. ft.: 2248

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4844096

$175,000 Orlando - 7457 Herricks Loop bed/bath: 3/2 sq. ft.: 1359

View Details <<
Request a Showing
Inquire
Add to Favorites <<

listings!!! SHORT SALE OPPORTUNITY

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:24:50 -0500

Listing # O4842226

$270,000 Winter Garden - 15343 Black Lion Way bed/bath: 3/3 sq. ft.: 1384

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4832938

$260,000 Orlando - 1623 Bridgeview Cir bed/bath: 3/2 sq. ft.: 1199

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4836847

$260,000 Windermere - 13527 Misarden Ln bed/bath: 4/2 sq. ft.: 2190

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4806595

$250,000 Orlando - 9481 Cobalt Park Dr bed/bath: 4/3 sq. ft.: 2625

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4849392

$240,000 Kissimmee - 2604 Judge Loop bed/bath: 4/2 sq. ft.: 2236

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4826082

$236,000 Orlando - 7614 Pacific Heights Cir bed/bath: 3/2 sq. ft.: 1221

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4844743

$235,000 Orlando - 5467 Vineland Rd # 313 bed/bath: 2/2 sq. ft.: 1232

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4827991

$225,000 Orlando - 10610 Sun Villa Blvd bed/bath: 3/2 sq. ft.: 1420

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4813272

$220,000 Orlando - 8427 Port Lancashire Dr bed/bath: 3/3 sq. ft.: 2162

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Listing # O4830269

$220,000 Orlando - 2118 Windcrest Lake Cir bed/bath: 4/3 sq. ft.: 2486

View Details <<
Request a Showing
Inquire
Add to Favorites <<

Deciding how much house you can afford

Dayse Grillo (Keller Williams Classic Realty) — Sun, 20 Jul 2008 14:22:21 -0500

Deciding how much house you can afford

Your lender decides what you can borrow but you decide what you can afford.

Lenders are careful, but they make qualification decisions based on averages and formulas. They won't understand the nuances of your lifestyle and spending patterns quite as well as you do. So, leave a little room for the unexpected - for all the new opportunities your home will give you to spend money, from furnishings, to landscaping, to repairs.

Historically, banks use a ratio called 28/36 to decide how much borrowers could borrow. An approved housing payment couldn't be more than 28 percent of the buyer's gross monthly income, and his or her total debt load, including car payments, student loans, and credit card payments, couldn't be more than 26 percent. (In Canada lenders apply similar formulas to determine how much a buyer can afford. The Gross Debt Service ratio, or GDS, is not to exceed 32 percent of the buyer's gross monthly income, and the Total Debt Service ration, or TDS, is not to exceed 40 percent of the buyer's total debt load.) As home prices have risen, some lenders have responded by stretching these rations to as high as 50 percent. No matter how expensive your market though, we urge you to think carefully before stretching your budget quite so much.

Deciding how much you can afford should involve some careful attention to how your financial profile will change in the upcoming years. In the long run, your own peace of mind and security will matter most.