New Miami Realty

Brazilian buyers put the luxe in real estate

2011-02-22T11:35:00.000-08:00

MIAMI – Feb. 22, 2011 – Fabiana Pimenta, a real estate agent for Fortune International, is sitting on a white leather sofa in the model apartment at Jade Ocean with the expansive ocean views and the Fendi decor, waiting to begin a tour of the Sunny Isles Beach building.

Pimenta, a Brazilian who moved to Florida to attend college, is entitled to a little breather. In January, she and her team, which includes her brother in Sao Paulo, sold 15 high-end South Florida condos – all to Brazilians.

At 2,100 square feet with three bedrooms and both ocean and city views, this is the type of unit that is particularly popular with Brazilian buyers, she says. Seven months ago, Pimenta sold the last Jade Ocean penthouse, a 5,000-square-foot unit, to a Brazilian for $4 million.

An ultra-wealthy crowd of Brazilian real estate buyers is creating a boomlet for local real estate agents and other businesses that cater to their tastes.

There have been so many Brazilian buyers at Jade Ocean that the touch-screen that unit owners use to summon the concierge, order food from the Epicure market across the street or schedule a spa appointment has been translated into Portuguese.

Also popular is the Casa Fendi package, complete with a platform bed, pillows, leather croc-embossed wall covering, sleek furnishings and lighting. Buyers can purchase it or another decor package, then come back in a few months to a totally equipped condominium.

“If I take potential buyers out, it’s rare that I don’t close a deal,’’ says Pimenta, whose specialty is the Brazilian market. “When they visit, they buy.’’

Maria Helena Abreu, who splits her time between Belo Horizonte and Brasilia where she works for the government, made her first trip to Miami in 10 years recently and she was on the hunt for a two or three-bedroom apartment.

Abreu, her husband Joao Batista and her daughter Isabel returned to Brazil last week without making a purchase, but they’re thinking seriously about a unit at Icon Brickell.

“Miami looks a lot like Rio,’’ says Abreu. “It has really developed since the last time I was here – for the better. It’s become a city I adore. The people are very friendly, the city is very beautiful, the beaches are great and the climate is wonderful.’’

Plus, she says, she has many Brazilian friends who have already bought condominiums here.

“Brazilians follow each other – the right crowd, the right families,’’ says Edgardo Defortuna, president and chief executive of Fortune International. About a quarter of the company’s new sales are to Brazilians.

Another thing the Brazilians like about South Florida is the sense of freedom and security they have. Many are used to having armored cars and bodyguards at home, say real estate agents, and they like to be able to work around Bal Harbour or SoBe without being recognized.

In addition to the beach, the climate and the shopping, interior designer Mirtha Arrarian says her clients like Miami’s location as a half-way point between South America and the art objects, antiques and fashion of European capitals.

These wealthy clients will fly in on their private jets just to celebrate a birthday. They like coming to the boat shows and taking in tennis matches at the Sony Ericsson Open. Art Basel is also a big draw.

It’s not unusual among her clients for a family to buy one unit for themselves and another for their kids or for their guests, she says.

Her high-end clients include entertainers, TV personalities, and entrepreneurs – mostly from Sao Paulo. “That’s where the money is,’’ says Arrarian, who runs MAS Interior Design.

Most of her Brazilian clients, she says, prefer the area of South Beach along South Pointe Dr. – the SoBe Riviera – and tend to buy units in the $7 million to $10 million range.

One client who recently bought a condominium there, she says, is eyeing a nearby vacant lot as an ideal site to build a tennis court, quarters for the servants and an area to park more cars.

As Arrarian talks, she also checks out the sophisticated offerings at Ornare, a Brazilian-owned kitchen, bath and closet showroom in Miami’s Design District.

“The dream of Brazilians is to have an Ornare closet,’’ says Arrarian who has just examined a selection of leather and bullhorn closet handles and matte lacquer closet doors. “Now they want to have them here too.’’

Claudio Faria, the director of Ornare’s Miami showroom, says the company works hard to cultivate the Brazil-Miami nexus. During Art Basel, for example, Ornare flew in 30 Brazilian architects.

As Faria, who is Brazilian, demonstrates a high-tech kitchen faucet set against a backsplash of rustic reclaimed wood, he says, “This is the exquisiteness of Brazilian design – the unexpected.’’

And he’s quite excited about the possibility of showcasing Brazilian design to not only the Brazilians buying real estate in Miami but also to the world.

“Brazil is an extraordinary country at an extraordinary moment,’’ he says. “For the first time Brazil has a real opportunity to present its style to the world. Now the world is watching us.’’

Investors also are taking advantage of the low real estate prices.

Brazilian businessman Ricardo Dunin moved to Miami 20 years ago when Brazil’s economy was going through a rough patch and he worried about security in his homeland. For a number of years, he made a good living here in real estate development but the real estate crash has meant a change in strategy.

While Dunin and his partners have more than 20 development projects underway in Brazil, these days he concentrates on buying and selling real estate in the United States.

Right now in Brazil, he says, “Whatever you do works.’’
The Brazilian investors in South Florida, Dunin says, are “playing the distressed arena.’’
“We’re all buying in the U.S. below replacement value,’’ he says. “These are moves of opportunity.’’

Last summer, he and his partners in Miami-based Lionheart Capital paid $120 million for 146 unsold units at the former 2700 North Ocean condo on Singer Island. It was the most expensive bulk condo sale in Florida over the last five years.

The former condominium building has been transformed into Ritz Carlton Residences, Singer Island.

“There’s never been a better time for Brazilians to buy in Miami,’’ says Pimenta. “About a year ago the Brazilian market really started to fly.’’

There’s been a confluence of events that favors real estate sales to Brazilians.

Their currency, the real, is very strong against the dollar, making U.S. purchases very affordable; the Brazilian economy is robust – putting extra money in people’s pockets; and real estate prices in Brazil are soaring but cratering in South Florida.

There’s one more element, says Peter Zalewski, a principal in Condo Vultures, a Miami real estate consultancy. “With the economy doing so well there’s this sense of optimism. There’s this talk of this being the Brazilian century. As people’s confidence level builds up, it’s only natural that they think of buying real estate outside their country.’’

Pimenta has been one of the beneficiaries of that optimism but she also works hard. The sun has already set as she concludes the tour at Jade Ocean. Her phone buzzes and she glances at the message.
“Oh, another lead for tomorrow,’’ she says.

Copyright © 2011 The Miami Herald, Mimi Whitefield. Distributed by McClatchy-Tribune Information Services.

Home Prices across Miami-Dade County Stabilize as Sales Continue to Increase

2010-02-26T08:27:00.000-08:00

Miami, FL – In the Miami metropolitan statistical area (MSA), there was a 7 percent increase of existing single-family home sales in January 2010 compared to January 2009 and 60 percent compared to January 2008, according to the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service (SEFMLS). The sales of existing condominiums in the Miami MSA increased 42 percent in January 2010 compared to the same month the previous year. The Miami real estate market has experienced a surge in sales since August 2008, posting increases each of the last 18 months.

“Home sales in the Miami-Dade County area continue to increase year-over-year while prices stabilize significantly, a clear indication that the local market has rebounded and is strengthening,” said Terri Bersach, 2010 Chairman of the Realtor Association of Greater Miami and the Beaches.

Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops dropped 7.2 percent from the previous month but increased 11.5 percent from January 2009.

The median sales price for single-family homes reported in Miami-Dade in January 2009 was $183,400, down 12 percent from the previous year. The median sales price for condominiums was $141,700, down only 5 percent from the previous year.

Average Sales Prices Increasing

According to the SEFMLS, the average sales price for residential properties that sold in Miami-Dade County in January actually increased 21.3 percent to $309,773 for single-family homes and decreased 16.7 percent to $223,746 for condominiums.

“These current statistics are very positive news for the South Florida real estate market,” said Oliver Ruiz, RAMB 2010 Residential President. “As the top area in the country for foreign real estate buying activity, Miami is expected to outperform other markets throughout the U.S. International buyers in addition to those taking advantage of the current tax credits continue to play a key role in the improvement of the local market.”

Days on the Market and Inventory Levels

Inventory levels continue to decrease substantially, another indicator that supports the local market’s recovery. The inventory of listings in Miami-Dade County according to the Southeast Florida Multiple Listing Service has dropped more than 42 percent in the last 18 months - from 43,095 to 24,918 – and January 2009 brought a .04 percent decrease in just one month. Nationally, total housing inventory at the end of December declined 0.5 percent from the previous month.

Vacant lots become hot property

2010-02-15T12:17:00.000-08:00

TALLAHASSEE, Fla. – Feb. 15, 2010 – Vacant residential lots are looking better and better to real estate investors.

The cost of a finished, ready to build lot, can cost a developer about 25 percent of the finished home price. There are a number of these ready-to-go lots on the market at about half what they actually cost to prepare. Investor groups are snapping them up, figuring that the time will come soon when they will be in demand.

“The country needs 1.2 million new units for the next 10 years just because of population growth,” says Scott Clark, president of American Development Partners, which has bought thousands of vacant lots all over the West. “[U.S. builders] built about 500,000 units in 2009 and 600,000 units in 2008, so there eventually will be pent-up demand. We want to get as many of those finished lots as we can because as demand begins to rise, the need for housing will become painfully obvious. The delta (ratio of change to value of underlying asset) in this investment will be significant.”

Source: Inman News, Steve Bergsman (02/12/2010)

NAR: 4Q existing-home sales surge in most states

2010-02-11T13:08:00.000-08:00

WASHINGTON – Feb. 11, 2010 – Strong gains in existing-home sales were the predominant pattern in most states during the fourth quarter, with many more metro areas seeing prices rise from a year earlier, according to the latest survey by the National Association of Realtors® (NAR).

Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.

Total state existing-home sales, including single-family and condo, jumped 13.9 percent to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2 percent above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32 percent of fourth quarter transactions, down from 37 percent a year earlier.

Lawrence Yun, NAR chief economist, says the first-time homebuyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he says. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92 percent in the fourth quarter from 5.16 percent in the third quarter; it was 5.86 percent in the fourth quarter of 2008.

In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.

The national median existing single-family price was $172,900, which is 4.1 percent below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun says.

“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun says.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., says near-term market conditions remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she says. The biggest issue is for repeat buyers who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a Realtor® now about qualification criteria and options in your area.”

Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

In the condo sector, metro area condominium and cooperative prices – covering changes in 54 metro areas – showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8 percent from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.

Regionally, existing-home sales in the Northeast rose 11.1 percent in the fourth quarter to a pace of 1.03 million and are 33.6 percent higher than a year ago. The median existing single-family home price in the Northeast declined 5.6 percent to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions.

“In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun says. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”

In the Midwest, existing-home sales jumped 14.5 percent in the fourth quarter to a pace of 1.38 million and are 29.9 percent above a year ago. The median existing single-family home price in the Midwest rose 1.1 percent to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.

Yun says markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he says.

In the South, existing-home sales rose 13.8 percent in the fourth quarter to an annual rate of 2.23 million and are 28.2 percent higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4 percent from a year earlier.

“Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun says.

Existing-home sales in the West jumped 16.2 percent in the fourth quarter to an annual rate of 1.38 million and are 18.2 percent above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9 percent below the fourth quarter of 2008, but with many areas showing notable gains.

“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun says.

© 2010 Florida Realtors®

Clients access MLS through iPhone app

2010-02-11T06:25:00.000-08:00

KEY WEST, Fla. – Feb. 10, 2010 – Realtor.com offers an iPhone app that allows mobile users to access home listings nearby, thanks, in part, to the iPhone’s built-in GPS. One Florida broker, however, says that he has taken the iPhone application (app) a step further by allowing users to tap into the local MLS.

The National Association of Realtors spent a number of years developing its Virtual Office Website (VOW) (http://www.realtor.org/law_and_policy/doj/nar_doj) policy, based in part on a lawsuit filed against it by the U.S. Department of Justice. The issue raised a number of legal questions as existing MLS rules clashed with emerging technology. Now that websites are engrained in the fabric of daily business, the introduction of an MLS iPhone app represents newer technology, and a new way to access MLS listings.

The Florida broker’s iPhone app is free to download. Once loaded into an iPhone, the broker claims users can review his featured listings and access his website in addition to searching the entire MLS (Multiple Listing Service). Searches can be personalized based on price range, area, number of bedrooms and other criteria, including foreclosures and short sales. Users can save listings and review them later on their personal computer.

The app includes information about local architecture, tourism, travel and relocation. Users can contact the broker directly about all listings by using the app.

© 2010 Florida Realtors®

Pending home sales rise in South Florida

2010-02-02T11:49:00.000-08:00

Pending home sales rise in South Florida

Pending home sales rose in Miami-Dade and Broward counties during January compared to December, according to data released Tuesday by the Realtor Association of Greater Miami and the Beaches and the Southeast Florida Multiple Listing Service.

In Miami-Dade, pending sales of single-family homes increased 0.81 percent to 3,741. Sales of condominiums rose 3.5 percent to 4,647.
In Broward, pending sales of condominiums rose 9.4 percent to 4,137. Pending sales of single-family homes rose 6.2 percent to 3,310.

A sale is listed as pending when the contract has been signed but the transaction has not yet closed. Increased pending sales are an indication of increased future sales.

``Approximately six months after the South Florida real estate market touched bottom according to most economists, we continue to observe the recovery of the local market,'' Terri Bersach, chairman of the RAMB board said in a news release.

Nationwide, the National Association of Realtors said Tuesday that its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a little lower than the 97.1 level analysts expected, according to Thomson Reuters.

The index has risen for nine out of the past 10 months as buyers scrambled to take advantage of an $8,000 first-time home buyer tax credit before its scheduled expiration Nov. 30.

Congress extended the tax credit to April 30 and added a $6,500 credit for current homeowners.

Grubb & Ellis: Commercial Real Estate Will Decline

2010-01-05T13:08:00.000-08:00

Grubb & Ellis Co. released its annual forecast Monday, predicting that commercial real estate will decline more slowly in 2009, reaching bottom by the end of the year and starting to recover in 2011.

The problem is the labor market, which is just beginning to improve and then only slightly. “Because commercial real estate lags the labor market, it still has a ways to go before reaching its own low point," says Bob Bach, senior vice president, chief economist of Grubb & Ellis.

Bach disputes the notion promulgated by some that the commercial real estate market is the next bubble to burst. Grubb & Ellis examines all segments of the commercial market and concludes that across the board the “free fall we saw in 2009 is over, and the future is more certain, giving owners and users of real estate the confidence to begin making decisions again," Bach says.

Offices

The national vacancy rate is expected to reach 18.5 percent to 19 percent by the end of 2010, the highest since the company began keeping records in 1986. The Austin, Texas, office market is expected to recover most quickly, followed by Washington, D.C., and Los Angeles.

Industrial markets

The demand for industrial space increased in 2009; nevertheless, Grubb & Ellis expects warehouse rents to decline 6 percent and vacancy rates to reach 11.5 percent in 2010.

Retail

Recovery is expected to be weak with little demand until 2011. “Retailers and owners of retail real estate will need to adapt to a 'new normal' in consumer attitudes that may last for some time, including more conservatism and attention to value as households rebuild their savings," Bach says.

Multi-housing

Apartments will benefit from the decline of homeownership rates to pre-bubble levels or less, as well as increased volume of 20- to 29-year-old apartment seekers as the boomers' kids move out on their own.

Source: Grubb & Ellis Co. (01/04/2010)

November housing construction up 8.9 percent

2009-12-17T08:23:00.001-08:00

WASHINGTON (AP) – Dec. 16, 2009 – Construction of new homes, helped by better weather, rebounded in the U.S. in November following a setback in the previous month.

The gain is a hopeful sign that the housing recovery is continuing, a development viewed as critical to lifting the overall economy out of recession.

The Commerce Department says construction of new homes and apartments rose 8.9 percent in November to a seasonally adjusted annual rate of 574,000 units. The gain represented strength in all areas of the country although the increase was slightly lower than economists had expected.

Applications for new building permits were also up, rising 6 percent to an annual rate of 584,000 units, a stronger showing than economists predicted.

Copyright © 2009 The Associated Press, Martin Crutsinger, AP economics writer

Buyer tax credit effective but not available

2009-12-08T09:46:00.000-08:00

WASHINGTON – Dec. 7, 2009 – With President Obama’s signature on Nov. 6, 2009, the first-time homebuyer tax credit was extended, and some move-up buyers became eligible for up to $6,500 starting on Dec. 1, 2009.

However, the new law changed the way a home sale must be documented to the Internal Revenue Service (IRS), including additional back-up information to minimize the chance of fraud. And that documentation change became effective immediately when the bill was signed.

But that new form is not yet available.

The homebuyer tax credit is claimed using IRS Form 5405, and that won’t change under the new program; however, Form 5405 must be revised to adhere to rules in the law signed Nov. 6.

Currently, the IRS has only the old version of Form 5405 on its website – the one that applies to sales that took place Nov 6, 2009, or earlier. The revised Form 5405 applicable to sales on Nov. 7, 2009, and later, will not be on the IRS website, according to IRS officials, until late December.

Buyers who close after Nov. 6 and use the old claim form may have trouble collecting their tax credit quickly.

For more information on the tax credit and Form 5405, visit the IRS website.

© 2009 Florida Realtors®

US Treasury sets guidance to simplify 'short sales'

2009-12-01T08:08:00.000-08:00

Below is an article which states the U.S. Treasury has finally set the guidelines for their "short sale" plan. Although there is nothing posted on the U.S. Treasury's website yet, we are expecting the details to be released shortly at www.financialstability.gov. Please reference this website for the full details of the plan. Thanks.

Danielle Blake

Vice President of Government Affairs

REALTOR® Association of Greater Miami & the Beaches

US Treasury sets guidance to simplify 'short sales'

Article By Al Yoon

NEW YORK, Nov 30 (Reuters) - The U.S. Treasury on Monday set long-awaited guidance on a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury's website.

Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.

The incentives, first announced in May, expand on the government's Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started. See:

http://www.financialstability.gov/latest/tg_11302009b.htm

"While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve" or offer a modification, the Treasury said in its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions -- in which the deed is simply transferred to the lender -- include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.

Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower's credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt. It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings. In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.

"If there was a short sale program that didn't recognize the second lien holder position, it could have pretty damaging consequences for the industry," Sanjiv Das, chief executive officer of CitiMortgage, said in an interview last week.

(Editing by Leslie Adler) ((albert.yoon@thomsonreuters.com; +1 646-223-6347; Reuters Messaging: albert.yoon.reuters.com@reuters.net))

New U.S. home sales rise 6.2% in Oct.

2009-11-25T09:44:00.000-08:00

WASHINGTON (AP) – Nov. 25, 2009 – Sales of new U.S. homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

The Commerce Department says sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000.

Home shoppers in October were acting before lawmakers decided to extend a tax credit for first-time buyers and expand it to existing homeowners. Nevertheless, sales were up 5.1 percent from a year ago, the first yearly increase since November 2005.

The median sales price of $212,200 was off 0.5 percent from $213,200 a year earlier, but up 0.7 percent from September’s level of $210,700.

Copyright © 2009 The Associated Press, Alan Zibel, AP real estate writer. All rights reserved.

First-Time Homebuyer Credit Questions and Answers: Basic Information

2009-11-24T11:19:00.000-08:00

Updated Nov. 6, 2009, to note new legislation. The new legislation extends and expands the first-time homebuyer credit allowed by previous Acts. The new law:
extends deadlines for purchasing and closing on a home
authorizes the credit for long-time homeowners buying a replacement principal residence
raises the income limitations for homeowners claiming the credit

Q. What is the credit?

A. The first-time homebuyer credit is a new tax credit included in the Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period.

The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date. It was further expanded in late 2009 to extend deadlines and to allow long-time homeowners buying replacement homes and people with higher incomes to qualify for the credit. (11/12/09)

Q. How much is the credit?

A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009 or early 2010) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 in 2009 or early 2010). Long-time homeowners who buy a replacement home after Nov. 6, 2009, or in early 2010 may qualify for a credit of up to $6,500, or $3,250 for a married person filing a separate return. (11/19/09)

Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as your principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before May. 1, 2010 (with closing to take place before July 1), to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.

Normally, taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. However, a long-time homeowner can also get the credit for a qualifying replacement home purchased after Nov. 6, 2009. To qualify, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence.

If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return. For an eligible purchase in 2010, you can choose to claim the credit on either your 2009 or 2010 return. (11/19/09)

Q. If a taxpayer purchases a mobile home (manufactured home) with land and qualifies for the credit, is the amount of the credit based on the combined cost of the home and land?

A. Yes. The first-time homebuyer credit is ten percent of the purchase price of a principal residence. The total purchase price (mobile home and land) is used to determine the amount of the first-time homebuyer credit.

Q. Is a taxpayer who purchases a mobile home and places the home on leased land eligible for the first-time homebuyer credit?

A. Yes. A mobile home may qualify as a principal residence and it is not necessary that the taxpayer own the land to qualify for the first-time homebuyer credit.

Q. Can a taxpayer who purchases a travel trailer qualify for the credit?

A. A travel trailer that is affixed to land may qualify as a principal residence.

Q. Can an individual who has lived in an RV qualify for the credit?

A. For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer.

Q. Can I apply for the credit if I bought a vacation home or rental property?

A. No. Vacation homes and rental property do not qualify for this credit.

Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase are considered first-time homebuyers. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008. In addition, Long-time homeowners who buy a replacement home after Nov. 6, 2009 or in early 2010 can also qualify. Under this rule, you must have owned and used the same home as your principal residence for at least five consecutive years of the eight-year period ending on the date you by your new principal residence. For an eligible taxpayer who, for example, bought a home on Nov. 30, 2009, the eight-year period would run from Dec. 1, 2001, through Nov. 30, 2009. (11/19/09)

Q. Can a dependent on someone else’s tax return claim the first time homebuyer credit if they otherwise qualify?

A. Different rules apply depending upon whether a dependent buys a home after Nov. 6, 2009, or on or before that date. Dependents are not eligible to claim the credit on any purchase after Nov. 6, 2009. However, a dependent who buys a home on or before Nov. 6, 2009 may qualify for the credit. (11/19/09)

Q. Can a minor buy a home and claim the credit?

A. Usually, no. However, different rules apply to purchases after Nov. 6, 2009 and those on or before that date.

Minors are generally barred from claiming the credit on home purchases after Nov. 6, 2009. To qualify for the credit, a purchaser must be at least 18 years of age on the date of purchase. For a married couple, only one spouse must meet this age requirement. A dependent is not eligible for the credit, regardless of age.

For purchases on or before Nov. 6, 2009, the tax law does not bar a minor from buying a home and claiming the credit. However, taxpayers who do not otherwise qualify for the credit do not become eligible for the credit simply by using a minor child’s name. In addition, under state law, children under the age of 18 generally are not bound by any contract they sign and cannot be required to comply with the terms of the contract. Thus, it is extremely unlikely that a seller of a home, or a lender if financing is required, would enter into a bona fide sale of a home to a child. Merely using the child’s name to purchase a home does not qualify the child for the credit if, in substance, the child is not a bona fide purchaser of a home. (11/19/09)

Q. When do I have to buy a new home to get the credit?

A. The credit is available for eligible home purchases after April 8, 2008. You must enter into a binding contract to buy the home before May 1, 2010 and close before July 1, 2010, in order to obtain the credit. For a home you construct, the purchase date is considered to be the date you first occupy the home. (11/19/09)

Q. How do I apply for the credit?

A. The credit is claimed on IRS Form 5405, First-Time Homebuyer Credit, and filed with your 2008, 2009 or 2010 federal income tax return. (11/12/09)

Q. I submitted an amended 2008 return for the first-time homebuyer credit more than eight weeks ago. How long will it take the IRS to process my return?

A. The normal processing time for amended returns is approximately 8-12 weeks. Recent changes to the tax law have resulted and will continue to result in larger than normal volumes of amended returns. This increased volume has increased our processing time to 12-16 weeks. It is not necessary for you to follow-up with the IRS regarding your amended return if you are within these time frames. (11/23/09)

Q. Are there income limits?

A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). Different income limits apply to purchases on or before Nov. 6, 2009 and those after that date.

For purchases on or before Nov. 6, 2009, for a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

For purchases after Nov. 6, 2009, for a married couple filing a joint return, the phase-out range is $225,000 to $245,000. For other taxpayers, the phase-out range is $125,000 to $145,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $225,000 or less and for other taxpayers whose MAGI is $125,000 or less. (11/19/09)

Q. Can a taxpayer claim the first-time homebuyer credit after entering into a contract for the purchase of a residence but before closing on the purchase?

A. No. Taxpayers cannot claim the credit before there is a completed sale and purchase of the residence. The sale and purchase are generally completed at the time of closing on the purchase. (7/2/09)

Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer's payment obligations?

A. If the taxpayer obtains the "benefits and burdens" of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (7/2/09)

Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence?

A. Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details.

Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit?

A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. You may not use the entire purchase price of the duplex to determine the amount of your credit.

Q. If two unmarried people buy a house together, how do they determine how much each may take of the credit?

A. IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married.

Q. I am a single co-owner of a home. How do I get this credit?

A. Depending on the year of purchase, you will claim the credit on your 2008, 2009 or 2010 federal income tax return. (11/19/09)

Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit?

A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.

Q. Does the first-time homebuyer credit apply to homes located in the U.S. Territories?

A. No.

Q. Would I be considered a first time homebuyer if I owned a principal residence outside of the United States within the previous three years?

A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States.

Q. If qualified, are homebuyers required to claim the first-time homebuyer credit?

A. No.

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:

Your income exceeds the phase-out range.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You are a nonresident alien. (11/19/09)

Q. Does previously inheriting a home and living in it automatically disqualify me as a first-time homebuyer if I buy a different home on or before Nov. 6, 2009?

A. Yes, an ownership interest in a prior principal residence would bar you from being considered a first-time homebuyer. As long as you owned and used the prior home as your principal residence, you are not a first-time homebuyer. There is no exception for taxpayers who did not buy their prior residences. (11/19/09)

Q. If I claim the first-time homebuyer credit in 2009 and stop using the property as my main home before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?

A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full amount of the credit is due at the time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return. Form 5405 and its instructions will be revised for tax year 2009 to include information about repayment of the credit. (05/06/09)

Q. If a person does not actually make the payments on a home that’s their principal residence, but the deed and mortgage documents are in their name, can they be considered a first-time homebuyer?

A. Yes. If a taxpayer purchases a home to be used as a principal residence from an unrelated person and has not owned a home within the previous 36 months, the taxpayer is eligible for the first-time homebuyer credit regardless of who makes the mortgage payment. (05/06/09)

Q. Do taxpayers affected by Hurricane Katrina or other disasters qualify as first-time homebuyers if their principal residence (i.e. main home) became uninhabitable more than three years ago and they have not formally disposed of the uninhabitable home or purchased or built a new home in the interim?

A. Yes. They may be eligible for the first-time homebuyer credit when they purchase a new principal residence. (11/19/09)

Related Items:
First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2008

First-Time Homebuyer Credit Questions and Answers: Homes Purchased in 2009

First-Time Homebuyer Credit: Scenarios

First-Time Homebuyer Credit

Page Last Reviewed or Updated: November 23, 2009

VERY IMPORTANT INFORMATION This includes all real estate, appraisal, CAM, and state contractor licensees.

2009-11-18T14:00:00.000-08:00

There has been an important change to Ch. 455, F.S. that you need to be aware of if you are licensed by the Department of Business and Professional Regulation. This includes all real estate, appraisal, CAM, and state contractor licensees.

New Reporting Requirement for Criminal Convictions

During the 2009 Legislative Session, the Florida Legislature passed House Bill 425, which became law on October 1, 2009. Beginning October 1, 2009, Chapter 455.227(1)(t)requires all licensees to report to the department within 30 days of being convicted or found guilty of, or having plead nolo contendere or guilty to a crime in any jurisdiction. This law also requires that any conviction prior to October 1, 2009 be reported by November 1, 2009. A licensee who fails to report that information, may be subject to disciplinary action, including fines, suspension or license revocation. To report this information, complete the criminal self-reporting document and mail to the department as provided on the form.

There are two parts to this change that licensees need to be aware of: 1) In most cases the law previously required the reporting of felony convictions only, not misdemeanors. The law now requires the reporting of misdemeanors. 2) The law change now requires retroactive reporting for any crime that was not previously reported to the state, whether it occurred prior to getting a license, or after the license was obtained.

http://www.myfloridalicense.com/dbpr/pro/documents/criminal_self-reporting_document.pdf

Tax-credit extension renews buyer interest in buying a home

2009-11-17T12:34:00.000-08:00

TAMPA, Fla. – Nov. 17, 2009 – Real estate agent Ken Brownlee’s phone stopped ringing last month once clients figured they would be unable to close before an $8,000 federal tax credit expired.

Most of his buyers were first-timers looking for a sweet deal on a short sale or foreclosed home.

“They all want to grab a deal,” said Brownlee, an agent with Keller Williams.

Those buyers now have another chance since Congress extended the program earlier this month. Real estate agents say it could mean a boon for sales.

First-time buyers can get a credit up to $8,000 and other buyers are eligible for a credit of $6,500, as long as they’ve lived in their home for at least five years. Congress also expanded it to include some buyers who already own homes.

Business picked up immediately, Brownlee said.

“As soon as it passed, I started to get a lot more phone calls and website hits on my listings,” he said. “This tax credit will likely carry us through the normally slow season.”

That’s good news for the Bay area’s fragile housing market. As the area continues to see improvement in home sales, real estate agents say the tax credit is essential in selling off inventory. Home prices have plummeted and that has enticed buyers to act, but many are still on the sidelines.

Home sales in the Tampa-St. Petersburg-Clearwater area increased 20 percent in the third quarter, which ended Sept. 30. Experts credit the increase mainly to first-time buyers trying to take advantage of the tax credit.

There were 7,795 sales in the quarter, up from 6,502 during the same period a year ago, according to the Florida Association of Realtors. At the same time, the median sales price fell 17 percent to $140,400.

One reason is that so many people feel stuck in their homes. They want to take advantage of deep discounts, but they have to sell their existing home in order to move up. With nearly half of Tampa Bay’s homeowners owing more than their home is worth, many can’t afford to move.

That’s why the tax credit will help, said Stephanie LeFew, a real estate agent with Tampa Home Buy Realty. She’s had a number of clients decide to stay in their homes because they couldn’t sell for enough to make a move worth it.

“For some people, the credit will be just enough of a boost,” she said.

Mike Larson, an analyst with Weiss Research, said home sales would likely continue to improve, even without the tax credit. Even so, he expects the credit to lure more people into the market.

“The credit is the icing on the cake, not the cake itself,” he said. “What’s really leading to improvement is that homes are affordable again. If you throw an expanded credit into a market that already has good fundamentals, the market will respond.”

To take advantage of the credit, a prospective buyer’s home has to be under contract by April 30 and the deal must close by June 30.

Copyright © 2009 Tampa Tribune, Fla., Shannon Behnken. Distributed by McClatchy-Tribune Information Services

Don't Let Emotions Ruin Negotiations

2009-11-17T08:55:00.000-08:00

Daily Real Estate News

November 17, 2009
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Don't Let Emotions Ruin Negotiations

Representing clients in real estate transactions may not be quite as emotionally charged as handling hostage negotiations or helping warring nations diffuse long-standing conflicts, but there are parallels. During his Entrepreneurial Excellence remarks at the 2009 NAR Conference & Expo Friday, Daniel Shapiro, director of the Harvard International Negotiation Program, identified important ways that misunderstood emotions can hinder real estate negotiations.

"Clients often move because of major landmarks in life—divorce, marriage, birth, death. Even when those life events aren't involved, there may be financial stress or fear of committing to a property," Shapiro says. "It's best to be removed from those client emotions."

Shapiro says practitioners should focus on five core emotional concerns in client dealings:

Appreciation: Do you let your clients be heard? Do you really listen to their concerns and what they are looking for in a property? If you don’t appreciate your customers and they don’t appreciate you, then you’re creating bad business.

Autonomy: Allow your client to make the important decisions. He believes lines such as “Buy this house now” will push clients away. They need to be in the driver’s seat in terms of the purchase or sale while practitioners provide expert advice.

Affiliation: When meeting with a new client or co-worker, try to create common ground with them with at least three shared connections. Did you go to the same school? Root for the same sports team? Enjoy a common restaurant?

Status: Don’t act like you’re always “on top.” Take turns with your client in terms of who’s leading the relationship. When showing homes, you can lead by be being the driver. When getting close to making the sale, let the client lead. Don’t get competitive about maintaining the higher role.

Roles: Practitioners need to play different roles through process: housing expert, emotional consultant, devil’s advocate, and more. Make sure you recognize your changing role in order to fulfill your clients’ variety of needs.

2009-11-13T13:27:00.000-08:00

Yun: 2010 Sales to Rise 15 Percent

Home sales will increase 15 percent to about 5.7 million units and REALTOR® income will be up 20 percent in 2010, NAR Chief Economist Lawrence Yun told a packed room of REALTORS® today in a residential economic update at the 2009 NAR Conference & Expo.

Yun credited the home buyer tax credit with unleashing sales on the lower-end of the housing market this year, bringing up to 400,000 first-time buyers into the market who wouldn't have bought otherwise. That influx tightened inventories of starter homes, shored up prices, and helped reduce households' fear over continuing price drops.

This virtuous cycle will continue now that the federal government has extended the credit to mid-2010 and expanded it to make a smaller credit available to repeat buyers and to households with higher incomes. “The key is stabilizing prices and preserving household wealth,” he says.

Yun predicts the supply of homes to stabilize at the historic norm of six to seven months. Homes above $500,000 will remain elevated in the near-term, but that weakness will be offset by a hefty drop in starter-home inventories, which are running at about a five months supply.

The tightening inventory at all price points will help improve market performance by bringing supply into better balance with demand, but the added sales, particularly on the higher end, will also increase the number and quality of the market comparables used by appraisers to assign valuations. Once appraisals improve, foreclosures will ease, blunting their drag on the market and making it less likely that Fannie Mae, Freddie Mac, and even FHA will need help from the taxpayer.

“Then we’ll be set for a durable economic expansion,” he said.

New-home sales, which comprise about 10 percent of the market, will continue at suppressed levels--about 550,000 units, down from more than a million during the boom--mainly because builders have scaled projects way back, in part because financing isn't available.

"Weakness in new-home sales shouldn’t be viewed as tepid demand," he said.

Even under the most positive economic scenario, unemployment will remain elevated through 2010. Yun is predicting unemployment to stay near double-digits going into 2011, qualifying this recession, as some economists have, as the "Great Recession.”

For the longer term, the huge deficit run up by the federal government to shore up the economy remains the big question mark. Although the deficit is expected to improve each of the next three years, it will remain at historic highs. Unless the federal government releases a credible plan for shrinking it, investors will start to balk and interest rates will need to rise to bring them back. Should inflation be the result, the housing recovery will be set back.

Source: Robert Freedman, REALTOR® magazine

Good news for commercial real estate owners

2009-11-13T09:41:00.000-08:00

ANDREW LITTLE TIMES-DISPATCH COLUMNIST

Published: November 9, 2009

Commercial real estate owners got some encouraging news during the past few weeks. Several economic reports showed promising signs, and the FDIC made clear how it is looking at commercial real estate loans sitting on the books of banks.

For the first time in two years, tangibly good news came out of the Bureau of Economic Analysis on GDP growth. The government agency reported 3.5 percent annualized growth in gross domestic product, which is the highest since the third quarter of 2007. Many economists are declaring the recession over.

In addition, the Purchasing Managers Index of business activity showed that the manufacturing sector grew in October, with increases in new orders, production and, for the first time in 14 months, employment.

And now, the Federal Deposit Insurance Corp. has issued a 33-page policy statement aimed at easing concerns over souring commercial real estate loans sitting on banks' books.

Critics contend that banks, which hold more than half the $3.4 trillion of outstanding commercial real estate loans, have been extending loans just to keep from having to write them down. The policy statement provides detailed guidance for bank examiners and a rough road map for troubled borrowers.

The statement doesn't mean banks and borrowers are off the hook for bad loans, but it helps define the proper practices for dealing with loan modifications and extensions.

Perhaps the best news is for borrowers and banks struggling with a matured loan in which the borrower is strong and the collateral has sustained a loss in value or tenants, but there's good and sufficient cash flow to cover debt service.

In that specific case, the FDIC allows the bank to continue to carry the debt without a negative classification, even though the loan-to-value could be more than 100 percent.

Beyond the specifics above, the policy statement gives guidance to banks as they work through restructuring troubled loans. Two central themes for banks are

Good Service

2009-11-11T16:37:00.000-08:00

Treasury loan help report irks McCollum

2009-11-11T13:10:00.000-08:00

November 11, 2009 04:00PM

Florida attorney general Bill McCollum Yesterday's Treasury Department report that only 12.4 percent of Florida borrowers who are at least two months behind on their mortgages are getting help -- well below the 20 percent national average -- has irritated Florida Attorney General Bill McCollum. McCollum, now a candidate for governor, said he has received more than 450 complaints about mortgage lenders across the state, adding that he is outraged that homeowners are getting the run-around from banks instead of being assiste their mortgage refinancing and loan modifications. Nationwide, 3.2 million borrowers are at least 60 days behind on their mortgage payments, including many South Floridians. In September, 17.8 percent of home loan payments in Palm Beach County, 20.7 percent in Broward County and 25.1 percent in Miami-Dade County were 90 days or more past due.

IS my paln working?

2009-11-11T08:44:00.000-08:00

Is my plan working?

Every day I come to the office open my e-mail and sit to complaint to my self, how difficult the market is even if I read all the statistics and I know the market is picking up, so what am I doing wrong, where is my motivation how can I get out from this damaging routine.

The answer as I preach and I know is in the attitude, the answer is in the discipline, and this game is very simple and very difficult at the same time.

Very simple because it is just apply your schedule, cold calling and prospecting, getting yourself out of the e-mail replaying mood and get out to look for business. Yet very difficult because you have all the worries, lack of money, rejection immediate need of closing and anguish to perform.

So what is the next step?

Prepare today how you are going to change tomorrow, literally say to yourself; tomorrow at 9:00 I will call 10 people to offer my services either to sale or to assist him buying a property.

So tonight before going to bed I must prepare my list and what I am going to say to these 10 prospects. Once I finish my preparation I will go to bed and when I weak up my attitude will be positive ! I will get a valid listing (I am assuming I have done my homework and I know what my farming is?).

I am confident because I am prepared and if I have rejection I will fight them with more energy. I will hang up and make another call until I connect with 10 people. I will not stop until I reach my goal. I challenge my self not to read any e-mails until I finish my 10 calls.

When I finish my calls I will read my e-mail reply what needs to be replied and move to my next step.

I will get out of the office and visit a prospect, if I do not have any yet I will make 10 more calls! Since it is possible that I do not have anybody to call I will research and find the 10 names, then I will call them.

I will not stop this routine until I get my 10 calls daily and at least 3 visits, appointments or showings.

What am I going to do with what I may be working now? I will schedule it for the afternoon and follow up; I will remind myself that a deal signed should only be followed not worked! I promise that I will let off all customers, friends and/or routines that are not profitable from 9 to 12 and from 1 to 6.

After a complete week of following these simple steps I will ask the question.

Is my plan working?

Simple guidelines for extreme success!

Jose Maria Serrano
New Miami Realty Corp

www.newmiamirealty.com

NAR to create national property database

2009-11-10T11:54:00.000-08:00

WASHINGTON – Nov. 10, 2009 – The National Association of Realtors® (NAR) announced today that it acquired technology to create a database of all properties in the U.S. According to NAR, it will help Realtors better serve clients who expect immediate information.

The technology acquisition includes licensed data and secured data aggregation services from LPS Real Estate Group, a wholly owned subsidiary of Lender Processing Services Inc. Using that data, NAR will develop the Realtors Property Resource™ (RPR), an information database that includes all the 147 million property parcels in the country. NAR is plans to launch RPR in second quarter 2010.

“Realtors are the first, best source for real estate information, and the RPR is another emphatic feature to that resource,” says NAR President Charles McMillan. “RPR will give Realtors nationwide data on all properties at their fingertips so they can respond quickly to consumers interested in residential and commercial real estate. This is exciting news and a terrific NAR member benefit. NAR is committed to keep Realtors central to the transaction and to the buying and selling experience with their clients and customers.”

“These acquisitions will allow Realtor interests to control the program and the content,” says NAR CEO Dale Stinton. “Realtors need to respond quickly to today’s tech-savvy consumers, and the “RPR provides a means for multiple listing services (MLS), commercial information exchanges (CIEs) and real estate brokerage business models to support the Realtor community, rather than requiring Realtors to purchase data aggregated by third parties.”

According to Stinton, RPR is not a national MLS, and will carry no offers of cooperation and compensation. “It is a private, NAR members-only benefit,” he says. “The assets acquired by NAR will be directed through a wholly owned subsidiary corporation, Realtors Property Resource, LLC.”

Once operational, RPR will provide nationwide access to public records, such as tax and assessment data, liens, zoning, permits, environmental information; and information on neighborhoods, such as school district and community demographics; along with advanced search features for property searchers, as well as market-to-market comparisons and referral opportunities not currently available.

According to NAR, RPR will develop business strategies and will complement, not compete with, MLSs and CIEs. While many MLS and CIE systems provide a range of services, no two are alike. RPR is designed to support local MLS and CIE models to create a common experience for agents and brokerages.

RPR will have many partners, including the Florida Association of Realtors and the California Association of Realtors, offering a number of technology applications, which will be incorporated within the RPR.

“The Florida Realtors and its 122,000 members are excited about the launch of Realtors Property Resource, which we believe will be a valuable addition to the toolkit for Realtor business success,” says John Fridlington, Florida Realtors EVP. “The Florida association and its business subsidiary also look forward to discussing potential partnerships to further enhance the value of RPR to Realtors nationwide.”

The management team of RPR includes CEO Dale Ross, co-founder of the Metropolitan Regional Information System, the country’s largest regional MLS; President Marty Frame, former General Manager of Cyberhomes; Senior Vice President of Industry Relations Mona Steen, former SVP with Cyberhomes; and Jeff Young, NAR director of the Realtors Property Resource and 2008 president of the Michigan Association of Realtors.

For more information on the Realtors Property Resource, visit www.realtor.org/about_nar/realtors_property_resource.

© 2009 Florida Realtors®

Mortgage bankers claim better FHA condo rules

2009-11-06T06:42:00.000-08:00

WASHINGTON – Nov. 5, 2009 – The Federal Housing Administration (FHA) previously announced a tightening of the rules for condo mortgage approvals, but delayed implementation and a formal announcement from Oct. 1 to Nov. 2, and then Dec. 7, 2010.

After meetings with FHA officials, however, the Mortgage Bankers Association (MBA) has said that rules governing condo mortgage approvals will be less onerous than first announced in an article published by Inman News.

According to Faramarz Moeen-Ziai, a mortgage banker at San Ramon, Calif.-based Bank of Commerce Mortgage, the most important change is the rule on recertification. As first announced, a condo currently certified for the FHA program would have to be recertified. That change could add a time-consuming burden to condo sales. Under the new rules, according to MBA, existing certifications would still be valid.

“If what the MBA says is the deal, (the new rules are) essentially a non-event,” says Moeen-Ziai. “The big deal for us wasn’t the guideline changes – guideline changes happen all the time. It was wiping the slate clean on all previously approved condo projects’ and requiring re-certification.”

The FHA, as announced by the MBA, will also insure up to 50 percent of a condo project’s loans, and up to 100 percent in “well established” condo developments. Earlier versions called for FHA to approve up to 30 percent of loans.

However, MBA says that some things will change. FHA, for example will require that owner-occupants must inhabit at least 50 percent of a condo association’s units.

The FHA has neither confirmed nor denied the MBA announcement.
Source: Inman News, Nov. 5, 2009, Matt Carter
© 2009 Florida Realtors®

Federal Homebuyer Tax Credit Extension and Expansion

2009-11-05T14:44:00.000-08:00

Yesterday, the U.S. Senate voted (98-0) to pass a bill which extended and expanded the federal homebuyer tax credit. Today, the U.S. House of Representatives did the same (403-12). It's now on its way to the President for his signature which is expected to happen as early as tomorrow!

To summarize:
Amount: Up to $8,000
Who: First-time homebuyers -- same definition as current law
Amount: Up to $6,500
Who: Repeat purchasers. Must have used previous home as a principal residence for 5 of the 8 previous years.
Income Limits: $125,000 for single filers/$225,000 for joint filers. Same for both first-time and repeat/move-up buyers.
Time Frame: December 1, 2009 to April 30, 2010

(also includes a 60 Day extension if binding contract is in place by April 30, 2010)

Limitation on cost purchased home: $800,000

Anti-fraud measures have been added.

DANIELLE BLAKE
Vice President of Housing and Government Affairs
(RAMB) Realtor Assoc. of Greater Miami & the Beaches
700 S. Royal Poinciana Blvd.
Miami, Florida 33166

IS this the light at the end of the tunnel?

2009-11-05T08:13:00.000-08:00

Emerging Trends: "The Bottom is Near!" Predict CRE Forecasters

Most Market Forecasters See a Pricing Bottom Next Year, and at Least One Prognosticator Suggests that Transaction Pricing for Institutional Investment-Quality Real Estate May Have Already Bottomed in the Third Quarter
By Randyl Drummer

November 4, 2009
Having reviewed the next round of commercial real estate surveys, forecasts and emerging trends issued this past week for 2010, about the only good news appears to be that the market has hit bottom -- or will soon. Rents and values have continued to fall across virtually every commercial real estate sector and across almost every market.

However, forecasters see the prospect for near-term opportunity once the markets bottom out, bringing a long-expected deluge of loan workouts, write downs, defaults and foreclosures -- along with the time-tested rush by patient, cash-rich investors, who, with some fortunate timing, will be able to tap some very attractive buying opportunities at bottom-of-the-cycle prices.

Also, leasing activity is expected to increase as tenants seek to take advantage of sharply lowered rents, resulting in more potential commissions for brokers, but also likely resulting in more pressure on highly leveraged building owners.

At least five major surveys and forecasts have been released since late last week by such influential industry groups as Real Estate Roundtable, the MIT Center for Real Estate, the National Multi Housing Council and NAIOP. PricewaterhouseCoopers and the Urban Land Institute released one of the industry's most widely watched surveys, the annual Emerging Trends in Real Estate, on Thursday morning.

The surveys tend to confirm the 2010 projections made last month by CoStar and its newly acquired analytics and forecasting advisory firm, Property Portfolio and Research Inc. (PPR), which were among the first forecasts to be released. The office vacancy rate stood at 13% at the end of the third quarter, and CoStar forecasts several more quarters of negative absorption and another 300-basis-point increase in the vacancy rate to 16% as the office market trails what's shaping up to be a "jobless recovery." Strong demand for office space is not expected to return until 2011-12, but when it does recovery should be robust, with the national office vacancy rate expected to fall to 10.5% by 2014 if job numbers begin to pick up as expected, according to CoStar and PPR projections.

Looking ahead, CoStar forecasts that the national industrial vacancy rate will rise from 10.2% in the third quarter to as high at 11% next year, but the amount of negative net absorption -- which approached nearly 150 million square feet year to date through the end of the third quarter -- should taper off over the next couple of quarters. The industrial market will slowly resume leasing activity starting in mid-2010, generating reasonably strong positive quarterly absorption through 2013. Rents, however, likely will remain moribund for two or three more years.

Coming off an idle 2009, the next year will likely rank as the slowest year of the modern era for new development, according to projections covering US market conditions presented by CoStar in a series of webinars last month.

Comments by

Jose Maria Serrano

Why do I want to publish this article: Basically because it sounds like the truth, but taken in a positive way.

I certainly think that the bottom is here already and the slow recovery will start. We enter the crisis in the same order we are going to exit from it; first the housing market, all we need to wait for is the banks willing to finance new buyers and the government programs to spend the money committed and promise, and then the demand will meet the housing supply .Next we will see an demand, and since the developers are on hold waiting in the side line plus the prices of land are at the lowest in 8 years also construction material and labor remain low, then construction will revive giving the most expected push to unemployment. Therefore more demand for all real estate will push prices normally up form the year 2004 bases ( According to most analyst is where we are going to hit bottom) .

Economic principal are very simple. T he chain of events will drive the markets, unemployment, and wellbeing on one way or another.

Home Buyer Tax Credit

2009-11-04T12:56:00.000-08:00

Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.
If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.
The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale

National Association of REALTORS®

Jose Maria Serrano
RAMB RCA Board of Governors

Multifamily specialist for the non-institutional investor