Altamonte Springs, Seminole County, FL – Market Sales Statistics for August ‘08 No comments yet

On This Day in History… No comments yet

On This Day in History…

1st lighthouse in US was lit in Boston Harbor in 1716.

The Gregorian calendar was adopted by Great Britain and the American colonies in 1752.

Star Spangled Banner was written by Francis Scott Key in 1814.

2 billion board feet of lumber destroyed in Tillamook Oregon fire in 1933.

Graf Zeppelin II, world’s largest airship, made its maiden flight in 1938.

Ground breaking ceremony for UN world headquarters in 1948.

Western allies rearmed West Germany in 1950.

1st prefrontal lobotomy performed in Washington, DC in 1956.

Iraq, Iran, Kuwait, Saudi-Arabia & Venezuela formed OPEC in 1960.

Til tomorrow…Marc It Sold!

Grandparent’s Day No comments yet

On this day in history…

Columbus’ fleet set sail westward in 1492.

The New England colonies declared war on Wampanoag Indians in 1675.

1st steam engine arrived in US colonies in 1753.

“The United Colonies” were renamed the “United States” by the Continental Congress in 1776.

California became 31st state in 1850 and they call today “Admission Day.”

Orville Wright made the first 1-hr airplane flight at Fort Myer, VA in 1908.

National Broadcasting Company (NBC) was created by the Radio Corporation of America (RCA) in 1926. For all intents and purposes is still owned by the same company today since GE bought over RCA in 1986.

The Allies (US, British & French) landed at Salerno, Italy during what was called Operation Avalanche in 1943.

Allied forces liberate Luxembourg in 1944.

President Eisenhower signed the 1st civil rights bill since the Reconstruction era.

Today is Grandparent’s Day.

I have to admit that I thought this was just another “Hallmark Holiday.” It appears that National Grandparents Day was originated with Marian McQuade. She was a housewife in Fayette County, West Virginia. Her primary motivation was to champion the cause of lonely elderly in nursing homes. She also hoped to persuade grandchildren to tap the wisdom and heritage their grandparents could provide. President Jimmy Carter, proclaimed that National Grandparents Day would be celebrated every year on the first Sunday after Labor Day in 1978.

Again this is time to reflect. In our busy society it is too often that the elderly are relegated to the ‘back seat’ so to speak. This is a sad reflection of our culture and times. The Orient always revered their elderly. There used to be time, even in our country, when this was so. It was only 40-50 years ago that the family unit revolved about not only our immediate family (parents & children), but grandparents and great grandparents, if they were still alive.

Yes, there are family units that still believe in this value. I remember with my father’s family, it always revolved around “Bubbe.” This was my grandmother. It is a Yiddish expression for grandmother. I later came to know that her English name was Sarah.

Every year there was an annual picnic usually in June, that my mother used to help organize, at Biertemple Park in Union, NJ. We would rent the park & everyone would bring different foods. There used to be at least 70 people there. And everyone always went to greet Bubbe.

Each month there was also a family circle meeting at someone’s house. These were always grand events with lots of socializing and minutes were taken just like at any business meeting. Granted, this was for our parents and the children mostly did not attend.

On holidays, we almost always visited my Aunt Mary & Uncle Max, because that is where Bubbe lived and Aunt Mary was her oldest child. Now, this was not a small family by any means. There were 11 children in all with my father being the next to last. I remember that he had cousins around his age if I’m not mistaken. Gosh, remembering all those names used to be quite a task. But we were together.

That was until a few years after Bubbe died and I have to admit that things feel apart. Yes, we saw each other at bar/bat mitzvahs & weddings & unfortunately funerals. But the family unit was not the same. Granted, this was about the time that we can see a change in the make up of the family structure. Around this time, more mothers were going out and getting jobs, they weren’t staying home and being housewives.

My reason for bringing this up is twofold. Firstly, with every change there is both good and not so good. I don’t want to call it bad, because I feel that is very incorrect term. Change is necessary, but sometimes in this instance, we lose touch with, in the long run, who we are and where we came from. They were our parents just as you are your childrens parents. Why do we not give the same values of that to our children? Why does it seem that the grandparent and more in general, the elderly are not revered. OK, I’m not saying put them on a pedestal, but surely don’t just cast them aside.

It’s funny, but I’m 53 and now that I’ve reached this point in my life, I’m also going to be in that group of people also. Surely, in lesser than time than anticipated. Granted, I don’t feel old and surely don’t act it also. I consider myself somewhat vibrant and full of life. But so are many older people.

Not to get gross, but I remember reading an article recently. I can’t remember if it was the newspaper or AARP (yes, I’m a member), but it was about the elderly’s sexual appetite & I was so surprised to see what they had to say and how sexually active they are.

We are living longer and many elderly have a lot to offer in the way of knowledge, experience and wisdom. They’ve learned a lot of life’s lessons and can probably also teach us a lot of their business acumen.

So, please think twice when you see an elderly person or address them. Think of the many lonely elderly out there. That is a very sad thing and a sad testament to our day and age. I’m glad Marian McQuade thought of Grandparent’s Day.

Happy Grandparent’s Day to the many grandparents out there.

Til tomorrow….Marc It Sold!

Property Insurance – Our Nemesis II No comments yet

Unfortunately here, in the State of Florida, we have a couple of items that are creating havoc with our economy and even forcing some into foreclosure. But that is another story and those people need to take blame for getting into something that they shouldn’t have in the first place.

Anyway, back to property insurance. Here’s an example. I know some people in western Oregon. They have a home of about 4000sf on many acres with out buildings, etc. Their homeowners insurance runs them $1000 a year plus another $500 for earthquake insurance. I on the other hand have an approximately 1500sf home on about 1/3 or an acre and am paying approximately the same for my homeowners insurance.

I need to backtrack a little to a previous post where I wrote about insurance companies and actuaries & how they had to know what they were getting into and the rates that they have been charging. Well, I’ve come to learn a little more about the history of homeowners insurance in Florida.

Insurance companies competed by keeping their rates low & then came Hurricane Andrew. After that catastrophe, most had huge losses but 11 of them went bankrupt. So the remaining companies started raising rates to match their level of risk & cancelling policy renewals.

Then our government decided that we needed to do something about this and passed laws to keep our insurance rates down. And then, finally, they created Citizens Property Insurance. This was to be the insurer of last resort. Remember this as we come back to that in a little while.

Well, lo & behold, then came the hurricanes of ’04 & ’05. Unfortunately, this bankrupt some companies as well. Oh yes, I forgot to mention, one of those companies was Citizens Property Insurance. But, don’t worry, we got taxed to bail it out. It even states on everyone’s policies in the State of Florida something to the effect of “Citizens Property Insurance Assessment, Florida Catastrophe Fund Assessment, Citizen’s Recoupment Fee,” etc.

Now, our Governor is asking that these insurance companies pass the buck or I should say the bill along to their customers outside the state of Florida. Additionally, they are allowing Citizens to grow and they were allowing them to raise their rates as well, but then enacted legislation to freeze their rates. They were giving Citizens the go ahead to compete head on with other insurers so they were no longer the insurer of last resort, when you couldn’t find insurance elsewhere.

So now, Citizens has basically gone belly up twice and, as I’ve stated, we are paying for this. It may sound good that there is an insurer out there with affordable rates. But what’s ultimately going to happen is that they are going to grow into probably the largest insurer in the State of Florida and when another unfortunate catastrophe hits this state we are all going to be left with the bill. It’s just a matter of time before Citizens Property Insurance goes bankrupt again.

Citizens Property Insurance is a problem that needs to be addressed quickly!

Until next time – Marc It Sold!

WOW! – 2007 – What Will This Year Bring Us In Real Estate? No comments yet

Most of my posts are geared towards the consumer, but the thoughts that are coming to my mind make this agent-oriented.

Well, let’s start out with the fact that the market has ‘corrected’ itself in many locales, but surely in the Orlando area. We are still in a very healthy market. Inventory is on a downward trend and will hopefully continue so. Rates are still very good in the low 6’s. I’ve even noted in my personal business that what is usually a very slow week (the week between Christmas & New Year’s) has turned into a quite busy one. Three buyers have contacted me and I’m in negotiations already, one being on a property that I’ve listed. My office tells me that they have noted that it’s picking up as well.

Many realtors® may disagree that this is a healthy and rebounding market, but I have to beg to differ. I know several realtors® that have had a better year in 2006 than previously. And no, these are not neophytes. Most are seasoned veterans. A lot of people forgot (or especially the newbies who didn’t know) how to work in what many of us consider a ‘normal’ market. Too much was being taken for granted as business was just there for the picking.

It’s a simple fact of back to basics. The business will come to you, but you have to farm & prospect. It’s not just going to fall in your lap like in 2005. I know that I’ve written that clients need to remember that the summer of 2005 is over, but many Realtors® need a wake-up call. The only way a realtor can last in this business is to be adaptable. You need to be able to adapt to a changing market. You need to be able to adapt the changing times. Your prospecting and farming need to be adapted to today, not yesterday’s style.

I’m seeing, as I sure a lot of you have, that there are still wholly overpriced listings being placed on the market. What I’m also seeing, & this really makes me laugh, is a listing with a price reduction. Yes, I know there are many out there that like to disguise this as a ‘price improvement.’ Please, we all know what this is and so does the seller & buyer, so why the sugar-coating. It just looks like you’re trying to disguise something & that doesn’t work in the long run in real estate. People aren’t stupid. They have so much more access to available information. Call it what it is. Believe it or not, you will look better in the consumer’s eyes.

Sorry for the digression, I was mentioning about listings with price reductions. But what I’ve seen while looking further at many of these (more than I would expect to see), is that the property had an increase in price from the original pricing. Do they not know how to properly price properties? I think this is so basic or at least it should be to be a realtor.

I think that we will see a consistent and steady change in 2007. We will probably see appreciation in the neighborhood of 7-13% depending on your market. This is quite normal as most of you should be well aware.

I think that buyers are finally getting over being wary of the marketplace, even though the media did a great job in scaring the crap out of some people. Interest rates are expected to be historically low. PMI is now fully deductible on your 2007 income taxes for households making less than $100K. Existing home sales are expected to increase, while new home sales are expected to slide.

Miami-based Lennar Corp., one of the nation’s largest homebuilders, said it expects a fourth-quarter loss, its first decline in at least a decade, as it reevaluates how much its inventory is worth, etc.

Right now builders are giving away the farm, but they have to get rid of inventory. Otherwise, they are going to be paying a boatload of interest on those completed homes for sale. Many are reevaluating their positions. We’ve all read about this.

This all bodes well for the existing home sale market & us in general as realtors®.

I’m looking forward to a great 2007 as you should as well. You need to have a positive attitude in this business, otherwise you are only being self-defeating.

I love what I do & I love Real Estate!

Until Next Time – Marc It Sold!®

Deducting Interest When You Are Not on Title No comments yet

The following is an interesting article entitled, “Housing Counsel: Deducting Interest When You Are Not on Title,” written by Benny L. Kass & published on Realty Times. I did not know that it was possible to deduct the interest on your taxes if you were not on the title. But read the follow case in point to understand the parameters of which this may occur.

Question: I want to buy a condominium unit for my son. Although he makes a decent living, his credit is not good. Accordingly, the lender has advised that title must be in my name only. My son will live in the property and make all of the mortgage payments.

Can he deduct the mortgage interest on his tax returns?

Answer: The answer is a qualified yes. There are certain rules which you must follow since if the IRS ever challenges the deduction, the burden will be on your son to prove that he is eligible to take the deductions.

We must first look to the regulations which have been promulgated by the IRS.

Regulation 1.163-1(b) reads as follows:

Interest paid by the taxpayer on a mortgage upon real estate of which he is the legal or equitable owner, even though the taxpayer is not directly liable upon the bond or note secured by such mortgage, may be deducted as interest on his indebtedness.

In August of 2003, the United States Tax Court addressed this situation and denied the interest deduction. The petitioner bought a house for his mother and although the mortgage loan was not in his name, he made the monthly loan payments. He argued to the Tax Court that he was obligated to repay his mother and “that his failure to repay would result, upon his mother’s death, in a corresponding reduction in his testamentary share of his mother’s estate.”

But the tax court rejected this argument. Based on the facts which were presented in evidence, the Court determined that the petitioner was neither “directly liable on the note securing the mortgage on his mother’s house, nor (was) he a legal or equitable owner of the property.” (Montoya v IRS, decided August 5, 2003.)

What exactly is required to be an “equitable owner”? Our legal dictionaries define this as ownership by one who does not have legal title.

Let’s look at this example. I own property A; I am the legal title holder to the property. I enter into a contract to sell the property to you. Based on that contract, even though you have not yet taken title, you have certain rights. These rights are based on the legal principles called “equity” — namely that the courts will do what is fair under the circumstances, rather than strictly interpreting the letter of the law.

Obviously, each case has to be decided on the specific facts presented to the Court. In the Montoya case, the Tax Court determined that the son just did not have enough evidence to prove that he had some kind of ownership in his mother’s property.

Several years earlier, this same Tax Court did allow a couple to deduct the mortgage interest even though they were not on title to the property. In Uslu v IRS, the following facts were presented to the Court.

Uslu had filed for Chapter 7 Bankruptcy relief and was not eligible to obtain a mortgage loan. His brother bought the house, in which the only occupants were Uslu and his wife. The loan was in the brother’s name only, but Uslu made all of the mortgage payments. He also made all of the repairs and improvements to the property. The brother signed a Quit Claim Deed conveying the property to Uslu, although this Deed was never recorded on the land records.

The Tax Court found that Uslu’s mortgage payments “constituted payments on an indebtedness” and thus could be deducted for income tax purposes.

According to the Court:

The Court is satisfied, from all of the evidence presented, that petitioners (Uslu) have continuously treated the … property as if they were the owners, and that they exclusively, held the benefits and burdens of ownership thereof. On this record, the Court holds that petitioners established equitable and beneficial ownership of the (property), and they were liable to (the brother) in respect of the mortgage indebtedness.

How do you meet the burden? Here are some suggestions:

1. Your son must continuously live in the property. To prove this, his driver’s license, voter registration and utility bills should be in his name at the property address;

2. You and your son should enter into a written agreement, spelling out that he is fully obligated to make the mortgage payments on a timely basis, and that you reserve the right to evict him should be go into default; the agreement should specifically state that you recognize that your son has an equitable interest in the property;

3. Your son must be responsible for all maintenance and upkeep of the property, and

4. You should prepare and sign a Quit Claim Deed, in recordable form, conveying the property to your son. This will not be recorded, but will be further evidence of your decision that this property is, in reality if not legally, owned by your son.

There obviously are no guarantees, but if you follow the guidelines spelled out in the Uslu case, you have a good chance of prevailing should the IRS challenge your son’s deductions.

Until next time - MARC IT SOLD!

Prices are going to drop $50K! No comments yet

I don’t think so, but a dear friend of mine who is also a realtor heard this from her client. I, myself, also heard someone say that they will not buy in this market because they expect prices to drop $25-35K. This is absolutely ridiculous!! But, unfortunately, people believe this because of what they’ve read in the media.

There was a great article in this Sunday’s Orlando Sentinel (10/15/6), “Signs point to a healthier-than-expected real estate market,” (pg H-51). I’ve been professing this since the beginning of this year.

We are basically in a normal market & that we’ve been going through a market correction. I just didn’t expect mortgage rates to remain this low. I really thought that they would inch up to the 7% range by years end. It looked like we were going there, but they have retreated to the approximately 6% level. That is absolutely fantastic! What that really translates to is market affordability for many that might have been locked out with higher interest rates.

What we are seeing now is a “correction” to a previously overheated market leading us toward “normal” market conditions. I do not foresee a “crash” that so many have been professing and many fear. Prices need to adjust. It comes down to the basics, that we learn in Economics 101, of supply & demand. With an oversupply (10 months at present for the Greater Orlando area) you need to market your home accordingly. Too many home sellers think that this is the summer of 2005 & won’t adjust to this reality, at least in their mindset.

I still see homes being placed on the market that are wholly overpriced. This is just ridiculous. This home will just sit & then the realtor needs to ask the home seller for a price reduction. Many in the industry are calling this a “price improvement,” but let’s get realistic, we all know what it is. I, as a realtor, cannot see why some people wish to take overpriced listings. OK, so you will have your name on a sign rider in front of this home, but that will stay there for quite a while. As a consumer, people have to wonder when they see a home sit on the market for such a long time. The homeowner may wish to price it high, but the realtor at the same time needs to take the blame as well. This is just poor marketing.

According to the article author, Kenneth Harney of the Washington Post Writers Group & Doug Duncan, chief economist of the Mortgage Bankers Association, “Not only to the doom reports ignore the positives in the marketplace – mortgage rates in particular – but the rhetoric is just way overwrought.”

Until next time – MARC IT SOLD!

Boost Your Home’s Value Reasonably No comments yet

Really wanted to discuss the previous post a little more, but felt that the tone of this blog might be taken the wrong way. There is so much information that I wish to impart upon you. Yet, at the same time, wish to make this a not only useful, but some lighthearted blog in nature. So, with that known, I am changing the direction a little today to tell you about several cheap ways in which you can update your home & also increase it’s curb appeal.

Whether you’re getting ready to sell your home or want to spiff it up, inexpensively, for your own enjoyment, here are 10 things for you to consider.

1. Make your kitchen really cook! - The kitchen is still considered the heart of the home. Many buyers make a beeline to the kitchen when they view a home. For a few hundred dollars, you can replace the kitchen faucet, add new cabinet door handles & update old lighting fixtures.

2. Give appliances a facelift. If your appliances don’t match, order new doors or panels for them. Hint: many dishwasher panels are white on one side and black on the other.

3. Buff up the bath. Even simple things like a new toilet seat and a pedestal sink are pretty easy for someone to install & they make a big difference in the look of the bathroom. Consider replacing old, discolored bathroom flooring. If the tub or shower are looking dingy, consider re-grouting the tile.

4. Step up your storage. If you have cramped storage areas, adding do-it-yourself wire and laminate closet systems to bedrooms, pantries and entry closets. Your closets will be more functional while you’re living there & it will make your home look more customized to potential buyers.

5. Add a room. Yes, this can be expensive, but consider this, you have a 3 bedroom house with a den. If you add a closet to that room, you’ve now got a 4 bedroom home and that adds a lot of value. You can possibly add a custom closet system and drywall it in for less than 1500.

6. Check the ‘innards.’ It is well worth it to spend a few dollars & have a plumber & electrician look over your services to make sure that they are in good repair and running properly. When a home inspection is performed, these details will show the potential buyer that the home has been well cared for & can also influence the sales/purchase price.

7. Look Underfoot. Flooring is another detail that can quickly update a home and make it look cleaner. A professional carpet cleaning is an inexpensive investment, especially if your carpets are in good shape. Don’t replace them unless they are really hideous.

8. Look Up. Consider replacing the lighting and/or ceiling fans. These can be done fairly reasonably with a wide array of inexpensive lighting fixtures and ceiling fans that are found at the local do-it-yourself stores.

9. Curb Appeal. What buyers see when they first drive by your home is very important. A nicely mowed lawn, fresh much, some nice (& possibly flowering plants) & a clean walkway make a great first impression.

10. The Front Door. A clean front door & possibly freshly painted makes a great impression as does new hardware. This is the first thing that potential buyers will see before entering your home.