Orlando Real Estate and News

Quick Facts About Short Term Rental Market

2009-12-23T11:01:00.002-05:00

Did you know that there are 25,000 short term rentals in the vacation market in Orlando primarily surrounding areas of International Drive and Disney Area. This represents 25% of the hotel rooms Orlando has to offer. Orlando area has just over 1,000,000 hotel rooms. Within the short term rental market, 7,000 homes are owned by Non-US residents. After doing some analysis, the volume of short term rental properties under $100,000 is quickly shrinking as compared to a few months ago, and this past summer.

Don't Have the Money to Buy an Investment Property? Think Again.

2009-12-23T10:48:00.000-05:00

Do you want to buy an investment property and take advantage of great real estate prices? But do not have the cash. Think about using an investment vehicle is called a Self directed IRA. Basically, instead of having an IRA made up of stocks, you would have it made up as your real estate purchase. You can use the money in your existing IRA's.

You would need to open a self directed IRA account. Entrust is largest and financial strongest in industry. Title to the property would be Entrust FBO "Buyers Name" for instance. So the offer needs to start of this way, because everything will need to come from the IRA; ALL income and expenses. Actually, Entrust will sign the contract. You will close on the property and Entrust will wire the money to the title company for closing. If you want to rent out your investment, then all rental income will be deposited into your IRA and all expenses will be issued from the IRA account. And when you sell the property all your proceeds will be deposited back into your IRA.

You have control of your investment; 1) what property you purchase 2) who & how much you rent it (if applicable) 3) who you hire the people for repairs & renovations 4) you decide when you want to sell it and how much. You cannot use a self directed IRA for your personal use.

Costs:

$150 to open an account & $250 per year per asset. For expenses, $5 per check to issue. For instance, they will pay your property taxes for you each year or HOA fees.

Other Items to Consider:

• This investment property does not have the same IRS deductions on your income tax. For instance, you cannot depreciate your rental property for 27.5 years because your rental property is managed within the IRA. You would need to speak to a tax accountant to find out if more beneficial to take the IRS deductions each year or take advantage of tax benefits of the self directed IRA. But all in all it is a way to pay for and acquire your investment.

• If you sell the property for less than you have in your IRA account, then you have to pay it back by contributions or find another IRA partner or find a loan etc.

• If you have less IRA money needed to make your real estate purchase, you can get a loan for the difference-only one lender in country to do this, or get partner IRA like joint purchase.

More In-depth:

• You can set up an LLC or Corporation. You can have multiple IRA contributing to the corporation to purchase real estate. If you wanted to set up an investment group.

• As your IRA grows large enough, you can lend money like a mortgage to others and gain interest on the loan.

• There are different IRA’s that allows different contributions and different benefits. There is one called Individual K-that has more flexibility. The Entrust Group can explain differences.

• The Entrust Group is located in Lake Mary and has free seminars to investors in Central Florida. Here is their websites: www.theentrustgroup.com/ and http://www.entrustfl.com/ These website have a lot of info.

Home Inspections; What Should You Know

2009-12-22T15:08:00.000-05:00

Home inspection is a very important part of the home buyer process and is a buyers expense. An inspection will give the buyer an understanding of the present condition of the property they are purchasng. The most common inspection is a comprehensive inspection and termite inspection. There are other specific inspections that can be done also such as mold inspection, septic tank, well inspection. Other less common inspections are radon and lead testing. Prices of inspection depend on the size of the and age of the home. A typical comprehensive inspection on an average home maybe $275-375. Any type of home can be inspected from a manufactured home to new construction. New construction you can inspection of each phase in the construction or one inspection when home completed.

During an inspection, the inspector will review the functional items in a home such as roof, attic structure, foundation, exterior, interior, appliances, plumbing, electrical, and plumbing. Cosmetic items are not considered as part of the inspection, so stains in the carpet or scuff marks on a wall for example are considered cosmetic. A home inspection will last about 2-3 hours depending on size of home and the number of deficiencies.

There are many inspectors in the business, and unlike a termite inspector, inspectors do not need to be licensed in the State of Florida. So it is important that you choose an inspector who is in the business full time, licensed, insured, and holds one or more credentials, such as FABI, ASHI, ICC.

Downtown Orlando Revitalization

2009-12-21T13:57:00.001-05:00

Now that Sunrail, Orlando's new communter rail, project is moving forward and tracks will be near the two major hospitals systems Florida Hospital one end and Orlando Regional on the other, local businesses want to revitalize the downtown Orlando in between these two hospitals. This concept makes sense as the new Sunrail will connect the areas, bring passengers, and the new entertainment complex around the new Arena will bring visitors to the area. With the recently built SoDo project bringing Target, restaurants, and retail being loved by locals, expanding this concept will be welcomed by locals, business professionals, and visitors alike. How to pay for this project is being considered, for more information on this development click here.

Long Term Rental Rates Down

2009-12-18T10:22:00.003-05:00

As a result of affordable housing and buyer incentives, there are more buyers in the market place creating less demand for rentals. And with Orlando unemployment rate at 11.4% has also caused a reduction in demand for rentals. Construction and building permits for apartments has slowed down. Central Florida rental vacancy is up to 15%. Collectively, these issues has caused rents to be on the steady decline. Nationally, the vacancy rate has been rising with projection to reach 7.3% by end of 2009. 2010 is expected to have a stronger performance.

Real Estate Forecast for 2010

2009-12-17T13:14:00.000-05:00

National Association of Realtor (NAR) Forecast Predication for the US Real Estate Market for 2010.

4.4 million households are eligible for tax credit. First time and move up home buyers must purchase by April 30, 2010 (with closing by June 30, 2010).
Home Sales Increase: Home sales keep increasing now for the 9th straight month. This tax credit expected to boost sales by 20% the first half of 2010.
Home Price Rise: Median home prices could rise 2 to 4 percent.
New Home Sales Rise: New homes sales could rise to 50%, but not same frequent pace as 2005.
Interest Rate Rise: Interest rates expect to be 5%-5.5% and continue to rise as Feds purchasing of money back securities will end in March.
Unemployment Rate: First half of the year will be slightly over 10% before inching down. There is evidence of fewer layoffs.

If you are considering purchasing Orlando Real Estate the time is now as interest rates now are below 5% and in 2010 they will be increasing. With a lower interest rate you can buy more home for the money. Orlando has plenty of homes to choose from and low prices, and tax credits available to first time home buyers and move up home buyers. To review the full article click here.

Who cares about your credit score?

2009-12-16T10:53:00.000-05:00

EVERYBODY…credit is everything…it is the DNA of your life, so take it seriously, particularly if you ever want to own a home.

Things have changed; it used to be that if you had 20% down and were breathing, you could get a loan…not so, no more. Lenders are tightening their belts at home buyer’s expense.

Previously you only needed a 580 credit score…now even with your 20% cold hard cash down payment, you will need a credit score of 620. In addition, if more than 45% of your monthly income goes toward debt, you will need to come up with more cash to put down, risk a mortgage denial, or be lucky enough to just pay a higher interest rate.

So, if you want to become a homeowner, do not go out and buy something that you do not need…no new furniture or no new car…or at least do not buy it on credit.

Banks are getting picky…very picky.

Eve

Newest Entertainment Complex soon to be Orlando's New Arena

2009-12-15T14:01:00.004-05:00

Despite the economic recession, the City of Orlando is moving forward with the new Arena Complex. This arena will hold slightly more seats then current arena and is designed for more flexiblility in venues. They have designed it so you will be able to enjoy the surrounding area with restaurants and retail. There will be a pedestrian walk through from Citrus Bowl to the arena to Church Street, decorated with statues and fancy lighting. Parking however, will need to be done on the out skirts, and you may have to park east of I-4 and walk to new Arena. Read more details about the very exciting project for Orlando.

November Market Statistics for Orlando Real Estate

2009-12-14T12:22:00.000-05:00

Orlando Real Estate market is turning around, if you have not bought yet, you need to. Overall , interest rates the lowest, inventory decreasing, days on market decreasing, and number of homes unders contract going up.

Average Mortgage Rate: 4.95%
Inventory of homes: 16,002
New Listings: 3,758
New Contracts: 3,028
Under Contract: 8,633
Back on Market: 1007
Expired Listing: 636
Withdrawn: 1047
Sales Closed: 2,238
Average Days on Market: 86

To review historical months click here.

Foreclosures Down for 4th Month Across the Nation

2009-12-10T13:01:00.000-05:00

This was the fourth-straight month that U.S. foreclosures have declined since hitting an all-time high in July, according to online foreclosure marketer RealtyTrac.

Default notices, an indicator of coming foreclosures, also were down 8 percent from October, but up 22 percent from November 2008. Bank repossessions were flat from the previous month and down 2 percent from November 2008.

"We don't really believe the underlying problems have been resolved," said Rick Sharga, senior vice president for RealtyTrac. Many borrowers, he told the Associated Press, "simply aren't going to qualify" for government and mortgage servicer help.

States with the highest foreclosure rates are:

Nevada

Florida

California

Arizona

Idaho

Michigan

Illinois

Utah

Maryland

New Jersey

Four states account for more than 50 percent of actual foreclosures: California, Florida, Illinois, and Michigan.

New FHA Rules for Condos

2009-12-10T12:47:00.004-05:00

After reading a recent article that FHA condo loan will be allowed in communities for first right of refusal, and looking at the new FHA Condo requirements implemented in November 2009 it appears these requirements were very similar to Fannie Mae guidelines. Hence, getting financing on condos is very tough. If you are doing condo financing, please remember not all condos you see online or with your realtor you can actually close on for several reasons. Not all of these issues whether a community is "financiable" can be researched until you are under contract on a property and both realtors and mortgage broker begin obtaining. Here are some of the new rules implement:

Spot approval have been elimimated. Previously, if the condo community did not fit into the pre-determined guidelines or no FHA history in the community, then FHA approval could be reviewed on a case by case basis, this is no longer allowed.
Now 30% is now the max for allowed FHA mortgages in the community. So if 50% of the units have FHA morgtages, that condo community will not qualify. No limit previously.
In a brand new community, 50% of the units have to be sold before FHA will approve your loan. No limit previously.
50% of condo units have to be owner occupied, which is down from 51%.
10% of the condo budget has to be on reserve at all times. This means either maintenance needs are delayed or fees increased or special assessment approved.
FHA is now allowing approvals in condo communities that have "first right of refusal". Previously, FHA approvals were not allowed in these communties.

More changes proposed for 2010, which drastically impacts all FHA buyers no matter what type of property purchased. FHA wants buyers to contribute more financially to the transaction.

• Raise the minimum down payment from its current 3.5% to 5%.
• Establish a minimum credit score from 620 to 660.
• Raise mortgage insurance premiums.
• Lower maximum seller paid contributions from 6% to 3%.
• Terminate the ability to roll the upfront mortgage insurance premium cost into the loan.

When to Reduce Your Property Taxes

2009-12-09T12:38:00.000-05:00

With home prices quickly escalating in 2004 and then drooping drastically in 2007, property appraisers have had a heck of a time keeping up. The county property appraisers are responsible for determining the assessed value and making sure your property reflects the correct market value to determine the taxes you owe. But with budget and staffing cuts, and rapid changes in the market, there are discrepancies. As a home owner you have the right to have your property tax reviewed. The time to do this is when the TRIM notices are mailed to you, which occurs sometime in October. There will be instructions should you want to contest your property taxes. If you wait beyond this time period, you may have to wait another year. We have a buyer that is under contract for a short sale in which taxes are $8,000 and property was sold in 2007 for $800,000, now property worth under $300,000. In addition, the property next door which is larger with more land which is also under contract has taxes at $4,500. This is an obvious descrepancy that needs to be reviewed and updated in the county where the property resides.

Harry Potter Theme Park Opening Spring 2010

2009-12-04T15:48:00.001-05:00

Many fans are anticipating the new Harry Potter Theme expected to open around April 23, 2010 and will part of Island of Adventure. Marketing and promotion of the theme park will start after Christmas. Visit the Harry Potter Website at Islands of Adventure.

What Type of Buyers Purchase Florida Properties in 2009?

2009-12-04T15:21:00.001-05:00

The National Association of Realtors complied data about home buyers who purchased Florida properties in 2009.

Characteristics of homebuyers

• Forty-one percent of recent homebuyers were first-timers, compared to 47 percent nationwide.
• The typical first-time homebuyer was 31 years old, while the typical repeat buyer was 54 years old. Nationwide, first-time buyers were typically 30 and repeat buyers were typically 48 years old.
• The 2008 median household income of buyers was $71,100 – lower than the median income of buyers nationwide at $73,100.
• The median income was $59,300 for first-time buyers and $83,300 for repeat buyers.
• Single females made up 18 percent of recent homebuyers, and single males made up 11 percent. Nationwide, 21 percent were single females, and 10 percent were single males.
• For 29 percent of buyers, a desire to own a home was the primary reason for the home purchase.

Characteristics of homes purchased

• New home purchases dropped to their lowest level in eight years nationwide –18 percent of all recent home purchases. But in Florida, new homes made up 26 percent of purchases.
• The typical home purchased was 1,850 square feet in size and built in 2000.
• Seventy-eight percent of homebuyers purchased a detached single-family home.
• The median price of a Florida home purchased was $176,500, compared to $185,000 nationwide.
• Three in four buyers (77 percent) considered commuting costs as “very” or “somewhat” important.

The home search process

• More than one-third of homebuyers started their home search process by looking online for listings.
• Seventy-five percent of buyers used the Internet to search for homes.
• Buyers had a high opinion of real estate agents, with 81 percent of those who used an agent saying they received very useful information.
• The typical homebuyer searched for 12 weeks and viewed 15 homes, compared to 12 weeks and 12 homes nationwide.

Homebuying and real estate professionals

• Sixty-seven percent of buyers purchased their home through a real estate agent or broker.
• Sixteen percent of buyers purchased a home in foreclosure. Nationally, 10 percent of buyers purchased a home in foreclosure.
• Thirty-nine percent of buyers found their agent through a referral from a friend or family member.
• Sixty-four percent of buyers would definitely use their real estate again or recommend the same agent to others.

Financing the home purchase

• Florida had more cash sales, with 81 percent of buyers financing their recent home purchase. Nationwide, 92 percent financed their recent home purchase.
• The typical buyer financed 93 percent of the home purchase price.
• Nearly half (45 percent) of homebuyers reported they made some sacrifices to buy the home, such as reducing spending on luxury items, entertainment or clothing.
• Thirty-one percent of first-time buyers reported their mortgage application and approval process was “somewhat” more difficult than they expected, and about one-in-ten reported it was “much more” difficult than expected.

Mortgage Rates Record Low

2009-12-04T15:06:00.002-05:00

The average interest rate for 30 year loan dropped to 4.71% the lowest since 1971. 15 year mortgage rates reported at 4.27%. This is a result of Federal Reserve pumping $1.25 trillion into mortgage backed securities in an effort to drive down rates and make home buying more affordable and stimulate the real estate market. This money is set to run out this spring. It is difficult to say how long these low rates will be available. If you thinking about purchasing a home, do not wait. It is predicated as the real estate market normalizes interest rates will start increasing. Buy more home for the money now while interest rates remain low!

US Tax Filing for Offshore Property Owners

2009-12-03T12:12:00.003-05:00

With 53 million tourists visit Orlando annually, many visitors decide to purchase a second home or vacation rental to enjoy the area multiple times year round. When purchasing a vacation rental, the property must be zoned for a short term rental, meaning renting for periods of time less than 6 months. This will allow an owner to rent out the property during the periods they are not using the property. The income received from this rental will need to be reported for Sales and Tourist Development Tax and for US Federal Tax Returns.

Many offshore property investors and rental property owners are unaware of their County, State, and Federal tax filing requirements. All property owners residing offshore who receive income from their rental property must file an US Income Tax return annually. Your tax return will need to be submitted before April 15 or June 15 for non-resident filers.

In order to file for US Tax Return you must have an Individual Taxpayer Identification Number (ITIN) and you can obtain the W-7 form from IRS.gov. Your tax representative can assist you in completing this form and file it on your behalf, and this can be submitted when your first tax return is initally filed.

Sales and Tourist Development Tax is collected and paid by your property managment company on your behalf, however, if you collect income directly you will need report this income to your property management company or direclty to the appropriate authorities.

Other taxes to be paid is your annually property taxes. You will receive a tax bill in the mail just prior to November 1st and you will have until March to pay your bill directly to appropriate Property Appraisers Office in the county where your property resides.

When you go to sell your property, you may need to pay tax on the profit of your home. There are specific guidelines for Foreign sellers under the "Foreign Investment in Real Property Tax Act" (FIRPTA) in which 10% tax will be withheld from the sale unless a withholding certificate is filed prior to closing to reduce this obligation.

We recommend that all foreign owners hire a tax representative to assist them in setting up a US Bank account, file the correct forms, report all the tax information accurately and timely, and make sure that all deductions are maximized. There are certain instances, where expenses can be offset against rental income such as cleaning, maintenance, advertising, commission, insurance, utitlies, flights, and car hire to name a few.

For all your tax management needs please contact DiAnna Ashton, specializing in Foreign National Tax Filings.

New Short Sale Guidelines & Incentives

2009-12-02T14:20:00.001-05:00

Short Sale process has been confusing, complex, laborous, for sellers, buyers, and real estate agents. There is no universal way about how the process is handled, but the U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly with guidelines for sellers and incentives for the players involved.

To qualify under these new guidelines:

The property must be the home owner’s principal residence.
The home owner must be delinquent on the mortgage or close to defaulting.
The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
The borrowers’ total monthly mortgage payment must exceed 31 percent of their before-tax income.

Under the plan, borrowers will receive $1,500 from the government for selling homes for less than the amount of their mortgages. Mortgage-servicing companies will get $1,000 for each completed short sale. Second-mortgage holders can receive up to $3,000 of the sales proceeds in exchange for releasing their liens. Investors who hold the first mortgage can collect up to $1,000 from the government for allowing the payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Home Owners Association Struggle

2009-12-02T14:09:00.000-05:00

We have written previously about the how condos got so cheap and impact to home owners associations (HOA). This phenomenon of non-paying homeowners has been happening for years, as people stopped paying for their mortgages they subsequently stop paying the HOA fees. As as result the condition of commmunities diminished and fees have gone up in an effort for HOA to keep things up and running. Several months ago, I was surprised to hear that legislation did not pass the change to make foreclosures pay all past HOA dues when they sell the property. The foreclosures only pay only the past 6 months of delinquency dues, then HOA ends up writing off the balance, with less money to keep things going. HOA however, have the right to foreclose on a property when the owner is not paying, but very, very few have excercised right to do this due to more expenses and legal fees to spend. However, the Orlando Sentinel produced an article, to my surprise, in which HOA's are taking foreclosure action. To read more about this article please click here.

What Months are Best to Buy Orlando Real Estate?

2009-11-24T14:31:00.001-05:00

November, December and January….trust me on that.

November starts the Holiday season, than the December Christmas Frenzy, followed by January when the guests have left, the spending and overeating is finished and now normal life is coming back into focus…

The last thing that is on anyone’s mind is buying a new home and that makes sellers nervous…it’s the end of the year, trading in the car looks good, the kids want Christmas presents, Tax expenses are calculated and the cost of holding a vacant house, or juggling two mortgages is now a bigger burden… particularly since homebuyers are scarce.

It is a great time to negotiate, it is a great time to negotiate, and it is a great time to negotiate…

Sellers will listen….new attitude and all.

ALSO, lets not forget the brand new homes sitting in the inventory that the New construction builders want to get “off the books” as a debt they are carrying. Excess inventory is costly and builders want to look their best for the year-end audits. Bargains there, too, if you bring your realtor with you.

So, if you want to house hunt while the listing price is really negotiable, call us.

Eve

Not All Title Companies Are The Same

2009-11-24T14:00:00.002-05:00

We previously wrote an article why its important for a buyer to pay owners title insurance and select a competent title company. Sometimes, that becomes a problem in negotiations if the seller wants to control the title work, or listing agent or brokerage has an aflliated business arrangement or receives illegal kick backs from the title company.

As mentioned, seller title companies with bank foreclosures are some of the worst in service and competency. They have asked the buyer to sign very unusual documents, for instance, they wanted the buyers to sign a 3 page document stating the title company had limited liability when holding the escrow check or buyers money. So basically, if they lose the money they are not responsible.

Also, at a closing a buyer had to review and sign title company disclosures, indicating that the closing statement they are signing is not final as "not approved by seller". Typically, when buyer gets to closing table, signs documents, and provides their check means all parties have reviewed the closing statement with finalized charges.

And for the real shock, the title company presents illegible lien search documents and buyers had to sign a disclosure indicating that title company will NOT interpret the lien search. This should be interpreted by all title companies, buyer is not qualified to do this especially at the closing table.

So if a buyer uses the seller chosen title company, it may be a good idea to have an attorney review the title work process with checks and balances along the way in the event the title company does provide full service and conduct a through job. This extra cost would be valued added for such as large purchase.

Blah, Blah, Blah…

2009-11-23T16:18:00.000-05:00

I showed a property last week where the Listing Agent had to meet us to open the door. I typically do not mind that, as sometimes the listing agent knows something about the house that is not readily visible.

This time the listing agent also wanted to “show” the house to the buyers, which I was OK with too. Then the agent spent the next 15 minutes trying to convince the buyers that this is the house for them and they needed to buy it…that was not cool.

“Showing a house” does not mean beating a buyer into submission. If the goal was to show the house in the most favorable light…it backfired.

You cannot “talk” buyers into wanting something that they do not really do not care for as that only creates pressure and the desire to run away. If they do not like it, that should be OK…falling in love cannot be forced…

For no pressure home buying and the opportunity to decide in peace,

call me…Eve 407-539-1053

Have Christmas Paid for by Lennar Homes

2009-11-13T11:55:00.001-05:00

Typically the best time to buy new construction homes here in Orlando is at the end of the fiscal year. In effort, to clear their inventory and strengthen the final year enf finanicals, many builders offer fantastic pricing and incentives. For example, Lennar Homes fiscal year is ending on November 30, 2009 and offering $5000 gift card for every closing before November 30, 2009. So in turn you get a great home, tax credit, and Christmas gifts paid for, all because you timed it right to buy a home.

In Central Florida, new construction properties, such as single family homes are starting in low to mid $200,000's or $250,000+/-, depending on area and size of home needed. New construction townhomes are the more prevalent choice for builders with more choices in locations and starting $160,000's to $190,000's.

We sell more new construction properties during the last quarter of the year. Do not buy new construction without a buyers agent representing you from contract to closing, they know what to ask for, know builder contracts, best upgrades, and represent the buyers interests, not the builder. Despite what many buyers think, there is no cost to utilize buyer agent services and has no impact on the purchase price on a home if buyers are represented or not. If you are looking for new construction properties, please contact Buyers Broker of Florida.

October Market Statistics for Orlando Real Estate

2009-11-10T15:42:00.000-05:00

Many positive things occuring in Orlando Real Estate with normalizing of the market occuring. If you are thinking of buying a home and thinking prices are still dropping, think again, if you wait you will loose out. October 2009 Pending Sales up 54.72% from October 2008. October 2009 most pending sales this year at 9,050. October condo sales up 236.89% from October 2008. Median price of a home up $130,000 (4%) from $125,000 September 2009. And most of all our inventory of home is decreasing representing a 7.14 month supply (6 months is normal). With tax credit extension available for both first time home buyers and current home owners. It will be no time at all clearing out of inventory will occur. However, it is predicated that another wave of short sales and bank owned properties will occur as a result of the unemployment rate, rather than bad loans.

Here is the market statistics produced by Orlando Regional Realtor Association for October 2009.

Average Mortgage Rate: 5.02%
Inventory: 15,743
New Listing: 4,165
New Contracts: 3,864
Under Contract: 9,050
Back on Market: 857
Expired: 924
Withdrawn: 646
Sales Closed: 2,206
Average Days on Market: 98

For historical months, please click here.

Move Up Buyers Gain; Tax Credit Available

2009-11-09T13:07:00.004-05:00

Great news to all primary residence buyers, President Obama signed a bill that allows first time home buyers to get up to $8000 tax credit, and repeat buyers up to $6500 when they have a contract on a home before April 30, 2010. Orlando area have great buys to be purchased and interest rates still history low, if you are considering a purchase, it is a great time to buy!

First Time Home Buyers

You may be eligible for 10% of the purchase price up to $8000.
Contract has to be in place by April 30, 2010 with a closing before June 30, 2010
Effective December 1, 2009 income limit will be raised to $125,000 for singles and $225,000 for married couple. Right now it is $75,000 for single and $150,000 for married couple.
Effective now the maximum home value cannot exceed $800,000.
First Time Home Buyers can use an interest free bridge loan to access the tax credit before they complete the home purchase. This money may be used toward downpayment or closing costs. The State Housing Initiatives Partnership Program (SHIP) is handling the distribution. For interested buyers, they should contact SHIP.

Repeat or Current Home Owners

Now eligible for up to $6500 tax credit. Current home owner must have owned and used its current home for 5 consecutive years out of the last eight.
Same time frame and deadlines for contract and maximum home value as first time home buyers.
Long Time Florida Home Owners can take advantage of property tax portability.

Why Buyers Should Choose the Title Company

2009-11-04T11:51:00.007-05:00

In the State of Florida, who ever pays for owners title policy can select the title company. Paying owners title policy is a negotiable item in the contract. In the Central Florida area it is customary for the seller to pay for owners title insurance and seller chooses. There are vary degrees of quality & competency of title companies from excellent to poor. If the seller chooses, buyer is not knowledgeable of quality of the title company or title insurance carrier. We find discount title companies affliated with REO properties or short sale facilitating companies are some of the worst. We believe if the buyer can negotiate to pay for their owner title policy and select a title company that is competent, through, detailed oriented, problem solving and have an A rated title insurance carrier, it is always in the buyers best interest. Here are some things a buyers should consider.

Financial strength of the agency and underwriter is a major importance to the buyer. We have seen many REO affliated title companies use B, C rated underwriting companies. Legitimate business savy title companies will not comingle escrow money with the companies operating money, so if they go out of business your money is protected.
The buyer will ultimately be the one to have to deal with the issue of a claim, not the seller. If someone makes a title claim it important to have a financial strong title insurance carrier. The seller no longer cares, they have the buyers money and have moved on.
Willingness of the agency/underwriter to acknowledge responsibility for the error. We have had a title company not request estoppel letter on a property and title company took a guess, and cost the buyer thousands of dollars after closing. Requesting an estoppel letter is title work "101". And yes, the title company did not correct or acknowledge any wrong doing.
Timely settling of the claim. When you have a problem, you want to make sure the title company and title insurance carrier representing all your best interests timely.
Amount of Errors and Omissions insurance carried by both.
The Buyer will not be able to sell the property until they have clear title. Problems with incorrect title work will be discovered when buyers are going to refinance or sell their home. Those would be the worst times to deal with correcting a title problems, as you jeopardize buyers for the home or best interest rates for refiance.
It is buyer's lender who will be working closely with the title company to bring the transaction to closing. Buyers lender is a major component to get a buyer to closing and working with a good title company who will be proactive to ensure closing is done correctly and on time.

If a buyer cannot negotiate to pay for owners title insurance and select a competent title company we recommend the buyer hire an attorney to fully represent them through the process of title work or at least review the closing package. We are in a different real estate enviroment than years ago.