Florida Real Estate Market

Baby Boomers Home Equity Decline Diminish Hopes Of Retirement - Many Are Selling In Orange County

2008-05-20T14:36:38Z

Unlike previous generations who could look to equity in their homes as a source of economic stability, the worsening economy has thwarted many baby boomers plans of an easy retirement.

In the past retirees could look to their homes as a source of equity with which to retire and somewhat live off of, along with the help of Social Security monthly income.

It has often been debated how long Social Security will last as the baby boomers near retirement. The larger problem however will be how baby boomers will survive as home values decline.

U.S. populace data reveal there are 77 million Americans born between 1946-1964. It is believed that up to one-third have no retirement savings whatsoever. Among them the oldest are 61 years of age. Among this third without retirement savings, the only money they have is equity in their home.

If they don't continue working to sustain themselves financially, as many are opting to do, many will be forced to sell their homes. This combined with a home builder surplus and a bleak economy with an unprecedented amount of foreclosures, will further flood the market with homes up for sale.

One good thing about this economic upheaval is it will bring families closer together. When my parents began to age, my sister and her husband moved in to live and care for them. This not only helped my aging parents physically in their old age, but also helped bear the economic burdens associated with home ownership.

As baby boomers age and retire, families will either need to pull together (often under the same roof), or boomers will be forced to sell to sustain themselves financially. My son cared for his maternal grandparents in their old age, which enabled him to keep their home versus sell it to pay for them to live in a nursing home.

Ironically whereas financial stress is a big destroyer of marriages, alternatively as it pertains to the extended family and baby boomers approaching retirement, declining equity and the trouble it causes may lead to boomers not being abandoned in their old age.

While losing equity in one's home is not exciting, the possibility of boomers having to sell their home may be a sufficient incentive for families to care for their elderly. This simultaneously would both save the home and the family.

Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).

Contact Paul Davis and Midstate Appraisals for your next appraisal:

Office: 352-242-9973

Cell: 352-636-6672

Fax: 352-242-4912

midstateappraisals@earthlink.net

www.midstateappraisals.org

Housing Surplus In Seminole, Sumter, Osceola, Orange, Polk, And Lake County, Florida

2008-05-20T14:32:35Z

Empty houses all around across Central Florida reveal builders plight as they are being forced to drop prices even faster than homeowners. Builders unable to sell their excess inventory are hustling to dump homes at lower prices and are doing whatever they can to hurry up and unload before prices go further south.

My daughter who is an interior designer and home stager is getting an unprecedented amount of work from builders scurrying to improve their homes any way they can to make them more attractive for sale before the housing slump worsens.

Bloomberg reported on December 26, 2007: "Home prices in 20 U.S. metropolitan areas fell in October by the most in at least six years, raising the risk that more Americans will walk away from properties that are worth less than they owe. ...Residential investment has subtracted from economic growth for the past seven quarters. Home building dropped at a 20.5 percent annual pace in the third quarter, the most since 1991."

The S&P/Case-Shiller home-price index showed values fell a greater-than-forecast 6.1 percent from October 2006 - the biggest decrease accounted for since measurement began in 2001.

Record foreclosures putting even more homes on the market lead many to believe prices will continue to further decline. Furthermore stricter lending rules will make financing more difficult to obtain and likely cause consumers to hold tightly on to their cash. The danger and risk to homeowners is declining property values will mean securing cash via equity lines will become more challenging.

As the economy's long-term prospects get worse, expect housing to further weaken. Any talk otherwise by the media and financial forecasters is just hype intended to delay fear of the inevitable.

Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).

Contact Paul Davis and Midstate Appraisals for your next appraisal: 

Office: 352-242-9973

Cell: 352-636-6672

Fax: 352-242-4912

midstateappraisals@earthlink.net

www.midstateappraisals.org

House Prices Decline In Value - Orlando, Orange County, And Across Central Florida

2008-05-20T14:29:25Z

The U.S. government and corporate media don't talk about how lower house prices are good for home buyers, preferring to sacrifice we the people and families to make sure bankers have plenty of debt to earn interest on. Nevertheless pure and simple economics says lower prices of anything is good for buyers.

Realtors who earn commissions on transactions are quick to say anything to keep the buying and selling going, particularly when there is a sweet commission check involved for them. Yet for homeowners whose properties are declining in value, now is not the time to sell. Moreover losing equity in your home as prices fall is not something which makes for a happy new year.

President Bush's plan to freeze banks teaser rates will likely backfire and produce the reverse effect, meaning banks will stop lending entirely because they cannot be sure that legal contracts will be honored. A freeze therefore will increase uncertainty among bankers and cause them to chill out before making loans considering their risk for doing so has increased.

"Affordability programs" seemingly are meant to help the poor get a new home, often with the help of HUD. However as it pertains to the economy, this potentially has the effect of driving prices higher by locking out more middle-class people. Fannie Mae and Freddie Mac undergird bankers risky loans and step in when borrowers don't pay and anything hits the fan.

The trouble is many buyers borrowed too much money and cannot pay the interest. Foreclosures are now occurring across the country. Meanwhile in Orlando we've got thousands of homes on the market for sale.

In Orange County and across the country, banks happily loaned money provided that the banks could then sell the loan, diverting the risk on to Fannie Mae (essentially and ultimately we the taxpayers) or on to buyers of mortgage backed securities. As the market now adjusts itself to account for years of excess and a trillion dollars in mortgage loans that will not be repaid, Fannie Mae is becoming very cautious and trying to avoid buying risky loans. Simultaneously and understandably investors do not want to buy mortgage backed securities.

This translates into less money available for mortgages, which immediately results in less home buyers. Therefore expect housing prices to continue to fall as mortgages become more difficult to get.

Lake County, Florida Property Appraiser Blows Whistle On Mortgage Fraud Inflating Real Estate Prices

2008-05-20T14:24:51Z

The surplus of speculating investors who cleverly learned how to leverage leverage OPM (other peoples money) and work the system, is now backfiring throughout the market and circling back around to correct itself.

A fourth of the homes bought across the nation the last few years were purely speculative for profit and not bought to be lived in by buyers.

One car dealer I know who owns several rental properties is eating it big time and losing money. He recently told me that after he accounts for property taxes (which in a year may for the first time go down), improvements, and maintenance to care for the homes he rents; at the end of the day he's losing money considering the amount of time invested to do all of that.

Speculative investors like him are going into foreclosure in massive amounts. The National Association of House Builders has acknowledged that "Investor-driven price appreciation looms over some housing markets."

One of the reasons the housing crash continues across America is fraud pure and simple. It is not uncommon for speculators to take out a loan for up to 50% more than the price of the house he intends to buy. Of course you've got to find a banker to play along, which usually only happens when the real risk can be directed to Fannie Mae and Freddie Mac should anything get nasty.

A key player is the appraiser, which if he has no scruples or conscience, can be swayed to go along with the inflated price. Bankers know how to send a clear message to appraisers that if they don't play along, they won't be getting called back to do another appraisal. A compliant appraiser therefore can be the hinge upon which all of this inflated pricing swings.

Once the loan has been approved and is in hand, the speculator then pays the seller his asking price (much less than the loan amount), and takes the leftover money to make mortgage payments on the astronomically large mortgage until he can find a buyer willing to pay his upwardly adjusted price to ensure him a profit.

What sometimes worked great for bankers who could find trustworthy borrowers and collateralize the loan with the home, also proved deadly when the shady speculator took the extra money and left the country.

Not to worry. When bankers make bad loans (with the help of property appraisers), Fannie Mae and Freddie Mac can bite the bullet when it gets ugly (thanks to we the tax payers). That is until Fannie Mae and Freddie Mac become more selective at which loans they buy, which when that happens (which it is now) will correct the real estate market excesses occurring for the last three decades.

Perhaps if Fannie Mae and Freddie Mac were eliminated altogether a true and fair market economy could take effect and truly bring inflated real estate prices down to where they belong.

Florida Growth Management Initiative - Let Citizens Decide Local Growth Management Plans

2008-05-20T14:21:11Z

The Florida Growth Management Initiative Giving Citizens the Right to Decide Local Growth Management Plan Changes is a wonderful referendum sponsored by the Floridians for Smarter Growth, Inc. under Chairperson Clarence Anthony (Tampa, FL). Article II, Section 7 provides for the voting upon this referendum by voters in the 2008 general election. It allows Floridians to call for voter approval of changes to local growth management plans through a citizen petition. Voter approval of growth management plan changes will be required if 10% of the voters in the city or county sign a petition calling for such a referendum. Defines terms and establishes petition requirements.

This is a call for local citizen activism, which begins at the 2008 voting precincts. Once we the people of the state of Florida pass this referendum, we must begin grass roots efforts within our cities and counties to collect the 10% of the voters signatures on the petition. Remember the growth management planners aren't going to make this easy for us as they aren't going to want to release their power that easily. We therefore must take the initiative to collect the needed signatures to reach (and I propose exceed) the 10% requirement.

Those cities and counties that remain passively disinterested will forego a great opportunity to have a say in their community growth management plans. Unlike most initiatives this one requires more than a vote at the 2008 general election but activism thereafter by the people of each city and county across the state. Wouldn't this be a good thing for democracy in our country!

Imagine if we could be more involved in growth management planning and have a say in what corporations come into our cities. Corporate welfare as we know it could also be thwarted and cozy relationships with urban planners brought into daylight for all to see. Instead of only the insiders knowing the next phase of development, the people taking an active role in the city and community could also be on the cutting edge and in the know versus on the sidelines waiting and wondering. We the homeowners and residents of our respective cities and counties need to rise up and take the initiative in charting the course of urban development and growth management plans, lest we be overtaken and ill effected by decisions made without our approval.

Conservation And Protection Of Florida Homeowners' Scenic Beauty - Florida's Billboard Amendment

2008-05-20T14:18:11Z

Conservation and protection of Florida's scenic beauty should be a top priority for homeowners unless we want our home values to plummet as the state becomes billboard central. I don't think any Florida homeowner desires their neighborhood to look like Time Square in New York City full of advertisements as far as the eye can see.

The Conservation and Protection Initiative: Florida's Billboard Amendment is a good thing for homeowners as it restricts intrusive billboards and protects trees on public property from being removed or altered to enhance billboard visibility. Our environment and natural beauty should be prioritized over the visibility of billboards, many of which don't advertise wholesome things anyhow. Strip clubs, ambulance chasing attorneys, and annoying messages don't need to be spread out across our cities and towns by billboards. Let them find other ways to generate business without destroying the natural beauty of our neighborhoods and streets.

Article II, Section 7, shall be voted upon in the 2008 general elections in Florida. This bill will provide local governments with greater home rule authority to require billboard removal. Where just compensation for billboard removal is necessary, this bill places a ceiling into effect except where greater amount required by federal law or federal constitution.

Most importantly and something that should have been put in place a long time ago is this bill prohibits new billboard construction along any public street or highway. It sure would be nice to have our streets and highways back free from billboards full of annoying advertisements and graffiti. No billboards means no graffiti to spray on them. Imagine if society went back to good old fashion word of mouth advertisement. Life would be more relaxing, business relationships more cordial, and our cities more beautiful.

Mandating Florida Hurricane Insurance, Additional Property Tax For Homeowners - Are You Eligible?

2008-05-20T14:14:50Z

An initiative on the Florida, 2008 general election ballot is a bill to make hurricane insurance as a local property taxing authority at market value. To me this seems very dangerous because it basically passes on to every homeowner, whether they want it or not, additional insurance costs related to hurricane prevention.

Most of us don't have million dollar homes on the beach, so why do we all suddenly need hurricane insurance other than to make insurance companies wealthy or cover their potential losses. Remember insurance companies soak homeowners with premiums, which are precisely to pad their coffers so when the odd disaster occurs they can cover us. Why than do we need to provide more corporate welfare to insurance companies by way of this mandatory hurricane insurance initiative? It just doesn't seem right.

My initial thought was somehow the rich living along the coast woud gain from all state homeowners bearing the burden of hurricane insurance. It certainly would be desirable for beach homeowners to pass on some of the hurricane insurance burden to others across the state of Florida. Yet upon further investigation I discovered that this bill has a huge exception in Coastal Barrier Resource Areas making such properties therein "ineligible" of any such hurricane insurance.

That being said it kind of reveals the true motive of the initiative. It obviously isn't interested in seeing that all property owners are insured in the event of a hurricane because coastal area homeowners are ineligible. So basically the hurricane insurance bill is a clever way for insurance companies to purport to care for homeowners and be looking out for us, when nothing is farther from the truth. What this bill does is make clients of all homeowners and collect fees for hurricane insurance from those in the least hazardous areas.

The problem is with this being a "market value" annual assessment, we can expect with a pro-inflation national government that the fees for hurricane insurance will keep going up and never stop. Ironically the initiative proposes that the hurricane insurance assessment to be imposed upon homeowners across the state be a "market value," while at the same time they are removing the freedom of choice for consumers from the market. Suppose a homeowner in an area of Florida where a hurricane has never before hit doesn't want to pay for this insurance? If this bill is passed refusal is not option because like it or not we all pay.

I think homeowners ought to be able to choose whether or not they want to pay for hurricane insurance rather than the state making it mandatory. The poor might prefer to feed their children rather than pay additional property taxes for hurricane insurance.

Of course I can hear the rebuttals as to protecting Florida residents most valuable asset - their homes. Yet shouldn't we the people be thought intelligent enough to care for our own property and insurances without governmental intervention? I am always skeptical when suddenly the government claims to be looking out for me. Particularly when those who stand to benefit most are the insurance companies who simultaneously are denying any coverage to homeowners in coastal areas.

Insurance is good in and of itself. Having to pay additional property tax however to get hurricane coverage is not and should be optional not mandatory. Keep the government out of homeowners pockets and vote no on the hurricane insurance initiative.

Portability Of FL Save Our Homes Assessment And Eventual Cap Removal

2008-05-20T14:11:33Z

The average citizen and resident of the State of Florida knows little if anything about legislation and initiatives currently being proposed to greatly alter their lives. When I found out about the Save Our Homes Amendment, my first reaction was that on its face it sounds good.

That however is the danger as special interest groups (and the legislators serving them in return for...) often use clever language to conceal and obscure their true intent and what they desire to accomplish. Nowadays the powerful serve themselves, not we the people. Therefore we the people must be all the more knowledgeable, studied, and astute.

When I wrote the chairman of the Save Our Homes Amendment who pioneered the legislation, Lee County Property Appraiser Ken Wilkinson, I was pleasantly surprised when he wrote me back within a day. What however was a bit disheartening was when I asked for the direct link to the legislative amendment itself, Mr. Wilkinson only provided me a link to the petition.

Nevertheless I read the petition, which on its face sounds good for Florida homeowners (especially those who would like to move elsewhere in the state and buy a new home). What troubled me however was the last sentence on the petition, which reads:

"Thereafter the new homestead property shall be assessed as provided herein."

That being said, how come nothing else was written or provided therein pertinent to that clause? What is coming hereafter that we homeowners need to know about?

Omissions and distortions are the modus operandi of slick tongued legislators not desirous of letting we the people in on their true motivations. Purporting to serve the people, they talk sweet but the rest that remains to be seen is always yet to be discovered.

Here are some of my recent discoveries (and the search and rescue of the Florida homeowners continues).

John Sebree, Vice Pres. of Public Policy for the Florida Association of Realtors, recently wrote my sister saying:

"The calculators you are looking at are not taking into consideration the revenue cap on local govt ad valorem taxes that can be collected from this point forward. Personal income has increased an average of 4.2 percent each of the past ten years and the Gov just signed a bill that limits the amount of taxes a city or county can collect to that same personal income growth factor. That is a point the media refuses to acknowledge."

So in other words there is a move to not "limit" property taxation to annual 3% increases, but move it up to the new Governor approved and permitted 4.2% now allowable.

Mr. Sebree further wrote: "The US Constitution would prohibit portability in the way we want it. It appears portability would violate the US Constitution's 'right to travel' clause. We are working on a way to make it constitutional and that can be added in."

The million-dollar question however is who is "we" -- certainly not the taxpaying homeowner. I dare say "we" is the tax assessors and county property appraisers working for them.

Mr. Sebree assured my sister in her 50s who can't afford to move and pay in an enormously increased tax bracket on a new home: "If you stay in your house forever you are still protected under this new language (as you said, assuming it even makes it on the balot and passes). The amendment as written grandfathers you in so you never lose your Save Our Homes if you stay."

Why than is Save Our Homes not saying that? The "if you stay" part is huge for homeowners across the state on a fixed and limited income who can't afford massive taxation increases on their home. Consider the retired elderly, ill, single-parent, and those who are unemployed. If the elderly or ill need to move closer to family for home health care; the single-parent marries and moves elsewhere; and the unemployed relocates to take a job---either of these scenarios means much higher property taxes and the elimination of the 3% cap.

This therefore becomes a huge deterrent for the above mentioned when economically, medically, occupationally, and maritally considering their options.

My guess is those behind this legislative amendment are preparing to move into a new home and/or relocate to their dream houses before the property tax cap is removed. While the "super exemption" may help a bit get folks into a home, after 5 years in that home expect the taxes to increase dramatically. That isn't being understood by most people.

Other legislation less heard about to be aware of which further reveals the true intent of the state of Florida and where we are heading is:

ARTICLE VII FINANCE AND TAXATION, SECTION 4, SECTION 6

Homestead Exemptions shall be indexed, removed from Flood V Zones and Save our Homes repealed
07-04

Beginning in 2007, or the year after the property tax exemption was enacted, homestead shall be indexed. "Save our Homes" assessment cap shall be phased out over 10 years. Residual "SOH" cap shall be fully portable only during phase out period. Flood V Zones property shall not be available for property tax homestead exemptions. Properties in Flood A Zones shall have annual exemption increases limited by 1/2 index.

This is being sponsored by the Hurricane Insurance Creation out of St. Petersburg, chaired by John Jeffrey Lane. The sponsor of the initiative alone should be sufficient to alert you as to who are the beneficiaries of such an amendment.

The Hurricane Insurance Creation is pushing to get hurricane insurance incorporated into homeowner property taxes and thereby "flood the market" with their policies by reason of the private-public initiative. Interestingly, they are simultaneously pushing to pull the former Save Our Homes property tax cap. If this goes through, the insurance industry wins big and homeowners suffer monumental losses annually.

If you don't read the amendment now and vehemently speak, soon we the homeowners will weep!
ARTICLE VII SECTION 9. SECTION 19. ARTICLE X SECTION 27

Hurricane Insurance as a Local Property Taxing Authority at Market Value
07-03

Create Hurricane Insurance with component flood and windstorm perils (FHW) that shall be written by the State on all Florida properties whether municipal, public residential or commercial, except in Coastal Barrier Resources Areas or other "Properties Ineligible". All properties except "Properties Ineligible" shall have vouchers and separate accounts. Hurricane Insurance shall be a local property taxing authority and part of the annual property taxes.

Remember the government doesn't love us as much as they say and ambiguity is the tendency of special interest groups (and the legislators they buy to favor their cause) proposing initiatives that really aren't in the best interest of we the people.

Florida Save Our Homes Amendment - Party Now And Pay Later

2008-05-20T14:08:08Z

Florida lawmakers may have passed revolutionary property tax reform amendment (if the voters approve), or maybe they are setting the stage for the privatization of education and our public services.

Many homestead property owners find they are unable to downsize or relocate to a new residence because purchasing a replacement property starts a new assessment and tax basis at current market values. Portability enables relocation while, at the same time, retaining the limitation on assessed value. Many Floridians who want to move say property taxes are a major obstacle and feel trapped.

The Legislature will give voters the option in January to approve a state constitutional amendment that would give voters the choice of tapping a new super homestead plan, which protects as much as $195,000 of a home's value from taxes, or sticking with Save Our Homes. Opponents say the same vote also will basically serve to phase out Save Our Homes, which has capped property tax increases for homeowners at 3 percent a year. That's not a good thing for homeowners.

Ken Wilkinson, the father of the original amendment and the property appraiser for Lee County, now heads a statewide group called Save Our Homes Portability Inc., which is paving the way to try to transition from the old Save Our Home amendment with a twist that lets homesteaders relocate elsewhere within the state without giving up all their tax credits.

"Save Our Homes Portability" would allow homesteaders to "bring forward" up to 50 percent of the difference between the assessed value and the market value of their home when downsizing and subtract it from the market value of their new home. When "up-sizing," homesteaders would be able to protect up to $400,000 in property value from taxation.

Local legislators agree the rollback is a good thing. On the rest of the proposed reform package, there is less agreement. Cutting millions in property tax revenues will definitely lead to a reduction somewhere in public services or the quality of education (as if that could get any worse).

This move could open the floodgates to more dangerous privatization of services and education. Prisons across the country are already being privatized and prisoners used for cheap labor. International water barons are already eyeing our nation, making promises to reduce local and state governments' expenditures and promising increased "efficiency". Enterprising private industry is making deals with politicians to procure and manage our water supply. Our most precious resources need to be protected and not sucked dry.

Saving dollars on property taxes is good providing over the long-term the economic aftereffect won't be detrimental and devastating elsewhere. Hopefully the passing of the new Save Our Homes (and homeowner party thereafter if approved) won't mean we have to pay big-time later. Nevertheless for now we the property owners can vote for Save Our Homes tax savings and hold our breath to see what happens later.

Florida Residential Growth, Impact Fees, And Local Government Planning

2008-05-20T14:03:15Z

Local governments are being hit with a heavy economic burden with the slowdown in residential real estate. Sizeable reductions in new home construction and demands from the state of Florida requiring local governments to cut back their budgets are taking their toll. Fewer permits being pulled for new home construction means less revenue for local governments. Local governments therefore are hurriedly trying to find ways to make growth pay for itself.

Raising impact fees on all new construction is the first way local governments are responding. Local officials have tried to make development pay for itself for years, but the Home Builders Association and Realtors Association always seem to have an increasing effect on what public officials finally decide to do. This holds down fees based on what the counties paid experts tell them.

I know that navigating through these competing demands is like walking a tightrope since neither side really knows what the real effects may be. What however we must ask ourselves is if growth and the associated fees were really paying for the impact growth places on our infrastructure (roads, sewer, water, garbage, electricity, and probably most noticeably schools), than why do these items seem so congested, fees continually increase, and our schools remain over crowded?

Impact fees are certainly not keeping up with nor paying for this growth. Hence these fees continue to rise. Honestly, the best thing that some of the fastest growing counties could do is put a moratorium on building -- especially on residential building. This would give counties a moment to regroup, reflect, and figure out what is best for the existing people already living in their region.

Counties need to go back and reassess the viability of their growth management plans. Until counties can get a better handle on enforcing their growth management plans, they need to place moratoriums on all new residential construction.

Though moratoriums cause resentment from private land owners and others, the counties would benefit from them for a time. The economic slow down in residential real estate is certainly one argument that can be made for not needing to place moratoriums. Nevertheless at the very least counties need to increase their impact fees to the original amounts their paid experts told them they should be. An increase in impact fees will help existing homeowners values rise and thereby increase property taxes to help counties financially until the huge inventory of unsold homes are bought.

Counties need to be proactive when setting appropriate impact fee amounts rather than being overly influenced by those in industry who are merely profit driven. Growth management plans that come from county and municipal governments free from outside manipulation or coercion best serve the people living in the region.

Central Florida Property Appraiser - Homestead Tax Exemption

2008-05-20T13:59:48Z

Every person who has legal or equitable title to real property in the State of Florida and who resides on the property on January 1 and in good faith makes it his or her permanent home is eligible for a homestead tax exemption. If title is held by the husband alone, a wife may file for him, with his consent, and vice-versa. If property is held by the entireties, one spouse may file as agent for the other.

If filing for the first time, be prepared to answer these questions:

In whose name or names was the title to the dwelling recorded as of January 1?

What is the street address of the property?

How long have you been a legal resident of the State of Florida? (A Declaration of Domicile or Voter's Registration will be proof of date before January 1.)

Do you have a Florida license plate on your car and a Florida driver's license?

Were you living in the dwelling on January 1?

The Florida Department of Revenue offers homestead tax exemptions for the following:
- $25,000 Homestead Exemption
- $500 Widow's and Widower's Exemption
- $500 Disability Exemption
- $5,000 Disability Exemption for Ex-service member
- $500 Exemption for Blind Persons
- Service Connected Total and Permanent Disability Exemption
- Exemption for Totally and Permanently Disabled Persons
- Additional homestead exemption for persons 65 and older

- Homestead Property Tax Discount For Veterans Age 65 and Older With a Combat Related Disability
- The Department of Revenue in Florida also allows:
- Homestead Tax Deferral
- Installment Plans for Paying Property Taxes

Central Florida Real Estate Market Downturn - Economic Variables & Causes

2008-05-20T13:51:38Z

The residential real estate market in Central Florida has been good since the last recession that occurred in 1991. The real estate market was red hot for a six month window between April to September, 2005. I had never witnessed such phenomenal price increases in my entire 30 years as a real estate professional in the state of Florida.

As a builder and appraiser, it is my job to be in tune with the pulse of the real estate market. Nationally, I always saw this scenario of unprecedented growth and expansion occur elsewhere throughout the country. Places like California and Massachusetts caught my attention. Now for the first time in my adult life (and I'm a native Floridian), the real estate market has been booming in Florida.
Some of the reasons this happened was more related to financing options, sub-prime lending, zero-interest loans, zero-down payments, and low-interest adjustable rate mortgages. All of these options made home buying more affordable.

The more buyers you have pursuing a limited supply of houses for sale created a sellers market, which caused home values to rapidly appreciate. This feeding frenzy pushed home prices up 30-50% within a short period of time.

One appraiser foolishly predicted the real estate boom would last 6 to 8 years and that you must "buy now" before prices rose higher. Like a dog in heat many rushed ahead and paid more than they should have sometimes.

History again repeated itself as in the late 1990's when Alan Greenspan coined the phrase "irrational exuberance". Market psychology and hype caused real estate to be bid up to unusually high and unsustainable levels. The cyclical effect however eventually occurs bringing down an overpriced market and balancing the economy. Rightfully so, for whatever goes up most one day come down.

Other variables effecting the Florida real estate market also must be accounted for. Soaring gas prices caused further inflation. A rise in interest rates followed, adding to the price of borrowing money for home buyers.

Higher mortgage payments certainly puts a sudden damper on eager home buyers and scares away others considering living beyond their means to secure their dream home. Weather troubles in the form of hurricanes, surprisingly swept through Central Florida in 2004 causing dreadful damage. The result thereafter was an immediate rise in property insurance. Further discouraging is the accompanying evil of home value appreciation, that being the rise in property taxes assessed by the counties.

These are just some of the reasons we are now seeing large inventories of unsold homes across the state of Florida. Unlike days of old before the snowbirds and international community arrived, Florida is not a cheap place to live anymore. We who live in Florida are now seeing higher real estate prices, paying higher property taxes, and struggling with higher property insurance premiums.

For those desirous of building their own properties, they also are being squeezed by counties for impact fees associated with new residential and commercial construction. Growth means more infrastructure must be built to sustain it, which translates into impact fees to build.

These are all some of the reasons we are having a slow down in the real estate market in Central Florida and throughout the rest of the sunshine state.

Florida Real Estate Market - Taxes, Insurance & Inefficiencies

2008-05-20T13:41:39Z

The rich don't want to pay their fair share in income taxes and the poor aren't always up to date with the laws the powerful are trying to pass to shift the tax burden elsewhere. Moreover those cleverly entrenched in the establishment often know how to write laws and market them in such a way as to obfuscate that which is really occurring by reason of their ambiguous use of language.

The wealthy who reside on the coast of Florida often want everyone inland to supplement their property insurance to cover their assumed risk (and lovely rewards) associated with living near the beach. Beaches are undoubtedly beautiful and we all love them. Nevertheless if you are going to live near the coast, you should anticipate paying more in flood and hurricane insurance rather than endeavoring to shift the burden elsewhere.

Economically I certainly understand the incentive for those living alongside the lovely Florida coast to try to shift their insurance and tax burden elsewhere. Morally however those who choose to live near the beach should not expect others inland, far from such lovely scenery and natural amenities, to bear their financial burden for the potentially problematic location where they chose to live.

People like me who live in homes bought some time ago (as for me 17 years now) benefit from lower property taxes due to the "save our homes amendment". Fortunately this legislation does not let our taxes go up more than 3% annually.

Alternatively, new homeowners pay nearly twice as much in property taxes. A young lady who works for me moved into her new home three years ago. Though her home is less valuable than mine, her property taxes are about double what I pay.

It is no revelation to the taxpayer that governments (federal, state, and local) are gluttonous and inefficient. Such governmental inefficiencies and gluttony is another reason why we in Florida are experiencing an extreme slow down in the real estate market. That coupled with powerful lobbyists and special interest groups trying to shift insurance costs and the tax burden across the entire state accounts for the economic slow down in Florida real estate.

Central Florida Land Appraiser - Residential Development & Eminent Domain

2008-05-20T13:36:13Z

The state of Florida has some phenomenal land from coast to coast. From city to country land is a precious commodity always increasing in value.

Though residential development comes with much speculation, one thing is for sure is the value of the land before the improvements are added thereon. Undoubtedly local and state government realize the value of land, which they don't hesitate to snatch up via the exercise of eminent domain when they see a public use which they want to implement.

In the 1992, U.S. Supreme Court case of Lucas vs. South Carolina Coastal Commission, the developer purchased land in expectation of future development. Before Lucas was able to erect any permanent structures on the land, the state passed an act barring any further development.

Lucas understandably filed a suit against the state claiming that the act constituted a taking because it extinguished his property value. Justice Scalia delivered the ruling stating that if a regulatory action deprives an owner of all economically viable use of his land, a taking exists, and the state must compensate the landowner, unless the prohibited use of the land constitutes a nuisance under the state common law.

The dissenting opinion from Justice Blackmun stated a landowner does not lose all economically viable use of his land where, as here, numerous sticks in his bundle of rights are still available, such as, his right to use the land and the right to exclude others.

Justice Stevens, equally as heartless and sympathetic as Justice Blackmun, stated that the chance that property be rendered valueless is a risk inherent in investment.

That being said, when assessing the value of land and future development, it behooves the investor to appraise both the value and any upcoming initiatives on the part of local and state government. This makes working with a bonafide and knowledgeable appraiser with his hand on the pulse of the goings on of government most essential. Otherwise an investor's sizeable investment can substantially be reduced in value overnight with the swipe of a bureaucrat's pen.

Central Florida Property Eminent Domain And Just Compensation

2008-05-20T13:28:34Z

Just compensation is determined by several key factors, which mandates that the owner receive a reasonable return on their investment which can be quite arbitrary given what the market will bear.

Eminent domain is the power of the state and federal governments to take private property. While the government may regulate the use of property, excessive regulation that goes too far constitutes a taking and requires an exercise of the power of eminent domain.

The power of eminent domain is limited by the 5th Amendment's taking clause.
a. The taking must be for a public use.
b. Just compensation must be provided to the property holder.

Just compensation is determined by several key factors, which mandates that the owner receive a reasonable return on their investment.

1. What is reasonable and just is determined by the fair market value of the property at the time of the taking.

2. The theory of "highest and best use" to which property can conceivably be made profitable economically effects the determination of value.

3. The government is not required to pay relocating expenses (though morally they should be) when the owner seeks to secure a new residence or property for business purposes as a result of the forced and compensated governmental intrusion/eviction.

4. When payment of market value would be manifestly unjust to the owner or the public, or the value is too difficult to discern, substitution value may be required.

The concept of "public use" is by nature cleverly ill-defined by local and state government, thereby giving them more leverage when negotiating and seeking to legally justify a taking of property. That being said the ambiguity also leaves room for the property owner to articulate their case in court and remedy any economic losses caused by eminent domain.

Never easily just roll over without receiving fair and just compensation for a government taking of your property. Get a fair and accurate appraisal to justify and maximize your compensation, which you are rightly entitled to as the original owner of property.

Central Florida Appraiser - Skillful And Experienced, The Key To Professionalism

2008-05-20T13:21:12Z

Until recently many states did not require individuals to meet specific qualifications before being allowed to perform appraisals. The Appraisal Institute came about as a result of the need to have professional unbiased estimates prepared by knowledgeable and trustworthy practitioners. Today every state maintains an appraiser regulatory law.

Nevertheless professionalism is not established by memberships, designations, and licenses alone. While a certificate of completion from a one-week course can be a good foundation, it does not always ensure ethical practice on the job. Experience always exceeds education alone.

Beyond the academic training, a professional appraiser also must possess strong communications, investigative, and analytical skills. What good is it if an appraiser has knowledge without the ability to communicate his observations and findings? Orderly, logical, and a grammatically correct manner of communication is equally if not more important.

A professional appraiser is someone who thinks and speaks clearly, possesses sound judgment, and writes client reports in a concise persuasive manner. Ambiguity and inconsistency are unacceptable.

Good appraisers are like detectives always seeking essential information from diverse individuals and sometimes reluctant sources. They are naturally inquisitive, ask hard questions, and enjoy hunting for information. An outstanding appraiser's objectivity and sensitivity to new trends causes them to be connected and tuned into the heartbeat of the marketplace.

Because market value is often shaped by the needs, desires, and motivations of the marketplace, an appraiser must objectively estimate value beyond their own personal preferences and judgments. Hence a good appraiser must be emotionally detached, reasonable, and truthful.

An experienced appraiser is head and shoulders above the rest, particularly one who has lived and worked in the area his entire life. Only by reason of use, interaction, and ongoing engagement can one adequately assess the current market and predict future changes. This is why it is often best to employ a real estate appraiser who has lived and worked in your area their entire life.

Before choosing an appraiser to work for you, seek out someone who is not only licensed and certified, look also for prerequisite skills and experience. Better yet, if you can find a native born and bred local, someone who really and truly knows your territory and market, he can strategically prep and position you to be one step ahead of the pack.

Central Florida Property Appraising & Consulting - Asset Assessment & Wealth Accumulation

2008-05-20T12:42:16Z

Appraisers ensure that the decisions made by buyers, sellers, government officials, insurers, investors, and others are based on well-informed, carefully reasoned judgment. Therefore appraisers help promote the stable and orderly development of the real estate market.

Appraisers of real property evaluate the utility and desirability of property and estimate its value for various purposes such as purchase and sale, financing, taxation, investment, and insurance. Appraisers consider the utility and value of properties.

An appraisal is nothing more than one person's opinion based on research in the appropriate given market. That being said, it behooves the consumer to choose an appraiser who is knowledgeable and not merely a newly licensed practitioner. As for myself I was first a home builder for over twenty years, entered real estate brokering, than real estate appraising. This professional progression has been most useful and served me well.

The astute appraiser assembles pertinent and relevant data to which he applies the appropriate analytical techniques to accurately assess value. When these activities are combined with knowledge, experience, and sound professional judgment, the result is vital information and invaluable counsel.

Substantiated by relevant data and sound reasoning, the professional appraiser's opinion carries considerable weight. The purpose of all appraisals is to estimate the defined value, which may be defined as the monetary worth of property, goods, or services.

Many people are involved in a flurry of real estate activities--buyers, sellers, tax assessors, investors, and insurers--and each has his or her own concerns about real property. That being said there are several different ways to consider the monetary worth of real estate.

When estimating value through the appraisal, the process entails assessing several components -- market value, insurable value, investment value, or some other properly defined value of an identifiable interest or interests in a specific parcel of real estate.

Real estate presents both various opportunities and potential problems all of which must be accounted for and fully considered. Before hastily embarking upon anything within the real estate market, it is most advantageous to consider land utilization studies, supply and demand, economic feasibility, highest and best use analysis, marketability, and any proposals for existing development.

The many facets of real property and diverse interests all merge to make for a very delightful and sometimes complicated mix, which makes the appraiser and savvy real estate consultant a most valuable professional with whom to partner.

Lower Property Taxes - Central Florida Property Appraisals

2008-05-20T12:38:39Z

As a longtime property appraiser, former home builder for twenty years, and licensed real estate broker I learned something from someone who seemingly was a novice in the real estate market and industry.

My son Paul Jr. lived in Oviedo, FL (Seminole County) at the time when he phoned my Lake County office at Midstate Appraisals and asked me about his recent county home value assessment. I never thought to fight the county, or anyone within the government (local, state, or federal).

My son Paul Jr. however has a bit more chutzpah when it comes to negotiation and doesn't roll over easily. (It also doesn't hurt that he was trained in Strategic Negotiations & Deal-making at Harvard Business School.)

Nevertheless I at the time thought he didn't know what he was talking about and immediately told him, "Don't even try it. You're not going to win. Don't waste your time." Unmoved, Paul Jr. half-heartedly listened to me and proceeded to ask to speak to another appraiser at our office to get a second opinion.

The office associate asked Paul Jr. how much the county had valued his home for. To which he replied $229,000. Paul Jr. bought the two-story, six bedroom, four bath home with swimming pool a year prior for $223,500 ($6,500 off the asking price which he also negotiated). The county's assessment seemed like a mild price increase based on the fact that home values have been known to escalate up to $100,000 in a single year in Florida.

Not wanting to discourage him, the associate somewhat agreed with Paul Jr. that he might have a valid point and said he might want to ask the county to remedy the discrepancy. Paul Jr. completed the documentation and phoned the Seminole County property appraiser to dispute the valuation.

As is customary Paul Jr. asked the county appraiser to come out and look at the house for himself and see how poorly the 6 bedroom, 4 bath home was constructed (He learned about construction from me as a kid growing up).

Upon buying the home, Paul Jr. began to notice several minor flaws in the construction. Trivial stuff like poor carpentry on the stairway, settlement cracks on the pool deck, and some drywall gaps around the air conditioner unit in the garage. When the appraiser came out, Paul Jr. patiently walked him through the house pointing out all of these flaws and requested that his home's assessed value be reduced accordingly.

A few weeks later, Paul Jr. received a letter from Seminole County saying they had agreed to reduce his home valuation to $209,000. Though this kind of adjustment may not be what most homeowners want, my son had his house completely paid off. That being said his tax burden was decreased by $600 that year. Not a bad chunk of change to save for a few minutes of negotiating.

Based on my son's success, now we not only appraise property but also help in any negotiations with the county property appraiser. For a fee of course.

Paul Jr. learned when reading the fine print of his county property appraiser's assessment that third parties can represent homeowners when disputing property valuation assessments. I guess you could say through Paul Jr.'s own experience and professional academic training (which cost me a pretty penny), he serendipitously stumbled into a market niche working with his old man.

Incidentally in case you're wondering if Paul Jr. took a loss when he bought his Seminole County home, not in the least. He owned it for about two-years and sold it for $282,500, above the price my brokerage listed it for (the kid knows how to negotiate), and pocketed a $59,000 profit upon sale.

I wish I could say I taught my son everything he knows. What I can now say however is that we now know the ins and outs of property appraising, which keeps our phones constantly ringing.

Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).

Contact Paul Davis and Midstate Appraisals for your next appraisal: 

Office: 352-242-9973 

Cell: 352-636-6672 

Fax: 352-242-4912 

midstateappraisals@earthlink.net 

www.midstateappraisals.org

Central Florida Appraisals Property Valuations

2008-05-20T12:33:16Z

Property appraising historically has taken three approaches:
1. The Cost Approach
2. The Sales Comparison Approach
3. The Income Capitalization Approach

Motivations for acquiring an appraisal are to obtain financing when buying property, determine the appropriate price when selling, to gauge the amount of tax one should pay based on valuation, and as an investor to stay current with market.

Beyond the intangible benefits of material comfort, pride, and security that come from owning real estate is the permanence of land and the attachments thereon. Unlike other assets and investments, land and property tend to appreciate in value, particularly in the state of Florida.

The financial benefits of owning your own home, possessing rental income from investment properties, and capital gains from accrued appreciation over time all make real estate a noteworthy investment be it for family or financial reasons. Nevertheless the speculative nature of anything so commonly owned and so readily emotionally invested in as well give room for fluctuating values based on what the market will bear.

When snow birds and Europeans on vacation in Florida suddenly began buying second homes in the sunshine state, prices began to go up. Years later prices are beginning to level out and decline as the economy slows. Such are factors and variables that effect property values.

Within the residential market, the sales comparison approach is the one most commonly used. This is the approach most counties and municipalities use when assessing home values when it is time to collect property taxes every year. By no means is the use of the cost approach a surprise, considering local governments usually find it increases annually when they collect property taxes.

Knowledgeable homeowners and savvy investors employ property appraisers to help them in the buying, selling, and refinance process as doing so has proven both profitable and prudent.

Central Florida Real Estate Appraiser - Creating & Assessing Value

2008-05-20T12:28:16Z

As a longtime real estate property appraiser and builder in Central Florida, I learned long ago the essentials for creating and assessing value. Whether you are a buyer or seller, these values will strongly effect you at some point in time during the market transactions. That being said it is worth learning how to create and assess such value.

The crucial economic factors that create and sustain value are:
1. Desire
2. Utility
3. Scarcity
4. Effective Purchasing Power

The interaction of each of these factors is reflected and visible in the timeless principle of supply and demand. Desire is a buyer's want for an item to satisfy an actual need (tangible or intangible). Desire can be known and gauged by determining the motivating forces driving a person.

Utility is the ability of an item to satisfy a human want, need, or desire. Such can vary based on the wants and needs of each individual. Sometimes improving the usefulness and quality of an item can increase the demand for it. Nevertheless changes in utility can only go so far toward augmenting demand.

Scarcity is the present or anticipated supply of an item relative to the market's demand for it. The more limited and unavailable an item is, the more valuable it can become based on demand.

Sometimes just the mere illusion of scarcity can cause demand to rise and thereby inflate pricing. Salesman are very clever at creating the illusion of scarcity and trying to impart urgency within their potential buyers to procure a quick sale.

When the availability of an item is limited somewhat, needs and wants can be better assessed among the competing alternatives. Whatever is abundantly available is commonly taken for granted. Air is just one precious commodity that seemingly has no definable economic value.

Go however to India or China where pollution is thick within industrialized regions and suddenly oxygen becomes more valuable to you as it is there more scarce. Prime real estate free from human interference is no different.

The final contributing factor to value is effective purchasing power, which is the ability and willingness of people to pay for goods and services that they desire. When purchasing power translates desires into demand, a means of exchange arise to acquire that which is desirable. That means of exchange is commonly national currency, here known as dollars.

With the international state of affairs as they are, the U.S. dollar is on the decline. Gold and Euros are increasing in value as oil rich nations are preferring them rather than the dollar for payment. That being said the purchasing power of the dollar is not what it used to be. This further makes real estate a lovely investment indeed to sustain one's wealth.

Creating value is one thing, sustaining it is a far more tedious matter in a highly competitive market.

Huge Inventory Of Unsold Florida Homes Drives Prices Down Despite Realtor Hype & Media Assurances

2008-05-20T12:19:02Z

Irrational exuberance, realtor hype, and media assurances of a robust economy are beginning to take their toll. Unwarranted conclusions, faulty assumptions, and the predisposition to endless American prosperity are colliding full force with reality.

Nobody is buying, but builders keep building. Wait it out and eventually we shall be able to buy homes for half the price.

Palm Beach County, Florida surpassed one billion dollars in defaulted mortgages during the first six months of 2007. Imagine that for every one property sold, two entering foreclosure. Americans certainly know how to live beyond our means don't we?

Big time lenders have winked and nodded for years giving under collateralized loans and excessive credit. Overseas international bankers don't trust buying American mortgages any more. They are waking up to our subtlety and seduction techniques. The credit agencies and compliant Federal Reserve is equally to blame. The government by no means should bail out big banks with deteriorating loan portfolios. Let their filthy rich CEOs do that!

As for unsold homes across the country, American investors with multiple homes in their inventory must go on a crash diet.

CBS and the Miami Herald collaborated to report that at the current sales pace, it would take nearly three years to sell all the condominiums on the market. For single-family houses, it would take almost two years. Meanwhile the U.S. dollar is plummeting to record lows.

While foreclosures caused by bad loans in the subprime mortgage market continue unabated, the government is playing catch up trying to do something about it. The problem is it is a bit too late to remedy the problem without honestly addressing the unethical business dealings at the center of it.

The Florida Legislature's changes to the state's property tax system will provide a drop of relief, but not be sufficient to stop the massive amount of foreclosures occurring throughout the state. As for excessive home and condominium inventory, some say it typically would take between 6 and 12 months for everything to move under the most optimistic scenario.

As for me, I say inventory must shrink before the market picks up again. For that to happen, proud and emotionally invested homeowners looking to sell must be more willing to drop prices to meet demand.

Florida Voters Approve Save Our Homes & Vote Yes On Homestead Exemption - Now What For Property Tax?

2008-05-20T12:14:48Z

What does the newly passed Save Our Homes Amendment 1 mean to Florida homeowners?

The multi-million dollar battle over the Save Our Homes amendment was a victory for democracy and political activism. Popular Republican Governor Charlie Crist, along with legislative and business leaders, rallied against some of Florida's most powerful unions to pass the new property tax laws.

Among the most powerful unions opposing the amendment are those representing teachers, firefighters, and government workers. Other noteworthy opponents of the Save Our Homes amendment are the Florida League of Women voters, the Florida PTA, some mayors, the Florida League of Cities, and some local elected officials.

Nevertheless the voters have decided they value reducing their annual tax burden over public services. Understandably so as the U.S. economy takes a nosedive and foreclosures across the country reach an all-time high.

Governor Crist was a prominent endorser and instrumental advocate who helped pass the amendment. TV ads, billboards, and promotional mailers all aggressively told voters "Today is your only chance to cut property taxes this year." The "Vote Yes on 1" campaign proved successful.

The result of the approved state constitutional amendment shall be an average savings between $200 to $300 savings a year for Florida homeowners depending on the value of their home.

"People have been wanting to not be trapped in their homes for a long time, so it looks like they have freed themselves tonight," Crist said as he arrived at a victory party in Miami for Sen. John McCain, the winner in the state's Republican presidential primary.

While running for governor in 2006, Crist made promises to double Florida's $25,000 homestead exemption.

Amendment 1 does that for all levies except school taxes, while allowing Florida residents to carry up to $500,000 in Save Our Homes tax benefits with them when they buy a new house or apartment to live in.

The tax-cutting plan is welcomed by Florida residents, but is not expected to resurrect a stagnate economy. Meanwhile Florida's real estate market remains overbuilt and overpriced, awaiting further downward price adjustments.

The big question for many is how state and local governments will recooperate monies for providing public services now that the tax burden has been lessened upon homeowners. From a consumeristic standpoint, it's always good to lessen our individual tax burden. Yet if we rob Peter to pay Paul and incur a greater sales tax later to account for the property tax adjustment, how much have we really saved?

Next up is the Florida Taxation and Budget Reform Commission, which is currently considering 34 proposals.

Buying Florida Real Estate - Florida Foreclosure Bonanza Awakens Buyers Across The Country & Globe

2008-05-20T12:09:42Z

Florida was second in the nation, with more than 279,000 foreclosures filed in 2007. That's up 275 percent from 2006.

As we roll into the new year, many are having to pack up and quickly sell their homes. This translates into substantial savings for buyers looking to seize a good deal, escape the cold winters up north, and get established in sunny Florida.

Buyers are licking their lips, salivating, as more and more distressed homeowners go belly up and have to sell. What is one person's misfortune is becoming a millionaire's dream - buying Florida real estate for bargain prices. Buying low has never been so easy!

Whether it is homes, land, or commercial property it's all up for grabs for the savvy investor. Meanwhile homeowners pray hard, keep their fingers crossed, and keep those mortgage checks in the mail. Others scurry seeking extensions on their equity lines, second mortgages, and family and friends to co-sign.

Families pull together in hard times to save homes. Those without such help sadly are losing their homes. The bright side to all of this distress and joblessness is buyers are able to come in and take advantage of all the great deals.

Beating foreclosure and bankruptcy is easy if you can find a willing buyer. Many out of state buyers are looking for a broker they can trust within Florida to facilitate such purchases for them. Meanwhile Florida is launching a campaign against mortgage fraud. Lenders are also simultaneously unveiling a plan to come in and save the day.

Call Paul Davis at JP Realty - a brokerage you can trust to honestly and aggressively represent you! - 407-967-7553

Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).

Contact Paul Davis and Midstate Appraisals for your next appraisal:

Office: 325-242-9973 

Cell: 352-636-6672 

Fax: 352-242-4912 

midstateappraisals@earthlink.net

http://www.midstateappraisals.org

Florida Homeowners Negative Equity Nightmare - Costly Mistakes Leading To Bankruptcy And Foreclosure

2008-05-20T12:04:51Z

A surprising large percentage of Florida homeowners who purchased their property in 2006 and 2007 now have negative equity on their homes, thanks to the excessively high prices paid when they bought their homes. Negative equity means your mortgage exceeds and gobbles up any ownership interest you have in the property you bought. A frightening and disheartening scenario for homeowners indeed.

The wealthy homeowners in Palm Beach County have been hit the hardest with the largest loss in equity of upwards to 20%. Others who have lived comfortably off of equity lines are now having to put the brakes on as banks are getting increasingly nervous as the world economy panics amid looming uncertainty and unprecedented bankruptcy filings. Foreclosures number over a million nationwide.

Those who purchased homes during the market's peak and those who own in problematic areas with the greatest drop in home values -- such as Florida, California, Nevada and Arizona -- are more likely to suffer the consequences of having negative equity on their homes.

Some real estate statisticians speculate of home buyers who bought in 2006, nearly 40 percent now have negative home equity. As for those who bought homes in 2007, some estimate as much as 30 percent have negative home equity.

It goes to show you timing is everything in real estate. Buying at the wrong time can be disastrous, as can selling prematurely in a short sale to pay off your debts. The savvy investor doesn't buy into all of the hype, neither does he listen to the media being pumped through by multinational corporations marketing what they want us to believe versus reality.

I hate to see all of the foreclosures across Florida and families losing their homes. Yet it sure feels good to have shown some restraint in the days when "everybody" was going nuts buying homes beyond their means as they swallowed the lies real estate agents told them about "properties only increasing in value in Florida". The reverse is now true and "everybody" is scrambling to sustain their exorbitant lifestyles, which have nearly pushed them into bankruptcy and foreclosure.

It goes to show you that success in real estate is often determined by your ability to say no and go against the flow.

Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.

Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).

Contact Paul Davis and Midstate Appraisals for your next appraisal:

Office: 352-242-9973

Cell: 352-636-6672

Fax: 352-242-4912

midstateappraisals@earthlink.net

www.midstateappraisals.org