Metas
Naples Florida Real Estate News - 10/24/07
HOME SALES - Mirroring the national trend, turmoil in the mortgage market impacted Florida’s housing sector in September, despite continued low unemployment rates and other positive economic activity. Statewide sales of existing single-family homes totaled 8,688 last month, a decrease of 38 percent compared to September 2006 activity, according to Florida Association of REALTORS. The statewide median price for existing single-family homes last month was $221,200.
Read the analysis for the 3rd quarter for Naples homes sold in 2007 with a year over year comparative figures.
Also, read the analysis for Bonita Springs homes sold in the 3rd quarter of 2007 with comparative figures for 2006.
FLORIDA REAL ESTATE TAXES - The Florida House thinks it has a better plan for real estate tax reform, but time may be on the Senate’s side in a showdown over the issue. Lawmakers must settle their differences by next Monday, or it will be too late to put a proposed state constitutional amendment on the January 29, 2008 presidential primary ballot.
ECONOMY - Former Fed Chief Alan Greenspan said Tuesday that a bloated inventory of new homes, rather than existing homes, has unsettled the U.S. economy; but he expressed optimism that the nation will avoid a recession. “Where the problem lies is in home prices – new home prices, very specifically,” Greenspan said.
HOMEBUYERS PICKY - Homebuyers have many properties to choose from, but can nix one as a possibility quickly if it has a problem that traditionally spooks buyers – even if the problem would cost only pennies to repair.
Naples Florida Real Estate News - 09/28/07
Today’s topics cover a lot on mortgages - rates, fraud, and reform. What’s going to happen with the economy - read one notable economist’s view. A valuable buyer tip has been added - based upon investors criteria. Good advise from the pro’s for the homebuyer.
Naples Florida Real Estate Taxes
I received a question today, that my answer could be informative for potential purchasers of Naples FL real estate.
I have another question for you. A friend of mine living in Florida, told me the way to figure out how much you’ll be paying in taxes is, it’s $12.00 per $1,000 in Florida. Is this true for all of Florida or just certain parts? Also how much is it per $1,000 in Naples?
First, let’s look at how real estate taxes are calculated.
Taxable value x tax rate = annual real estate taxes.
Every year all the county appraisers throughout the state of Florida reassess properties as of January 1st, based upon market activity in the preceding calendar year. The reassessment gives us what is termed market assessed value. The market assessed value can be reduced by the Save Our Homes exemption (homesteaded properties can only increase a maximum of 3% of the previous year’s assessed value) and the homestead exemption. The resulting figure is called taxable assessed value.
There is no overall Florida real estate tax rate. Each county determines their tax rate based upon what is budgeted to run the county and/or city governments, schools, fire districts, etc. Within each county there are what is called Millage Areas or tax rate areas. In Collier County the Naples area there are over 280 such areas. The range of tax rates runs from a low of $10.8694 per $1,000 up to a maximum of $16.1439 per $1,000. The average for the Naples area is $12.48626 per $1,000 and median is $12.4374.
Generally, we use the formula of 80% of the purchase price x 1.25% or 1% of the purchase price. For example, a purchase price of $200,000 would yield $2,000 per year for real estate taxes annually.
Due to how the assessed value works, it becomes very important for you as potential purchaser of real estate to work with a real estate professional that can use available information to inform you of what real estate taxes could be on a property given the existing tax rate as well as determining what the appropriate taxable assessed value for the proposed purchase.
Please be aware that the tax rates and method of estimating real estate taxes will be significantly different if you are considering purchasing in the Bonita Springs FL real estate or Estero FL real estate markets.
Naples Condo Values Vary
Often people want to know from a real estate agent’s point of view where they should consider buying a condo. Recently, a few people asked about some three different bundled golf course communities.Â
Looking at closed sales for the past six months and the previous six months the results for the average price paid was rather interesting to see how the values were affected by the recent downturn in the real estate market.
The loss in value revealed greatly different results - in community number 1 - the values fell less than 2%, community number 2 - values dipped about 15%, while community number 3 - values fell about 22%.
What proved interesting is that community number 3 was an older community built during the late 80’s. This was expected since, newer constructed properties tend to appreciate faster and fall in value more slowly. This does affect either community numbers 1 or 2, they were built and completed most recently. What may have been the cause of the variation in reduced value, may have been simply the locations within the Naples area.
This is a good example of how segmented a local real estate market can be and is worth a buyer’s time to identify communities meeting their needs and gaining an understanding of historical values. The in-depth analysis does take some time to assemble.
Real Estate Agent Representation
Today, Jim Messenger found an interesting and somewhat misleading article about real estate agents representing buyers.
Personally, I found the author of the article rather misinformed or not doing sufficient research to realize that various states have different laws governing real estate brokerage and do vary from state to state.
If you are a buyer of real estate, one of the first questions you should ask the real estate agent or REALTOR is “Could you please tell me about real estate brokerage agency in your state?” and then “How will you represent me in the real estate transaction?”
Know how a real estate agent or real estate brokerage is going to represent you is very important.
10 Fixed Option ARM
The 10 Year FIXED Option ARM solves the problem of the option ARM in the borrower’s favor.
First and most importantly, the actual rate at which the loan accrues interest is FIXED for the first 10 years. The borrower will not get run over by a rising rate market.
Second, the loan allows for the 4 “options” just like the other ARM loans. Under the fourth option, the less-than-interest only payment will stay the same for 7 years. In the 8th, 9th, and 10th years it goes up on a pre-determined scale. This is much better than the standard product where the payment goes up every year for the first 5 and then the payment is recast based on the outstanding balance and the new prevailing rate.
Finally, the loan allows for a rate and program change if the market becomes favorable for the borrower. For a small fee, the borrower can choose to peg the rate at the current market price on any of the loan programs available, namely 3/1, 5/1, 7/1, and 10/1 ARMS.
These superior features greatly benefit the borrower.
· Have a fixed actual rate for an extended time.
· Have a fixed payment for an extended time.
· The margin is a low 1.875% over the LIBOR Index
· Pay the loan off at whatever pace is in their best interest.
· If rates fall, the borrower can change the rate for a small fee.
But it gets even better.
A. The rate on the 10 Year Fixed rate Option ARM is very competitive. The borrower does not pay higher than market rates for this flexible loan.
B. The guidelines are flexible. There is a stated income option for some borrowers. But for many, full information is reviewed and certain exceptions are made for debt to income ratios or loan amounts compared to the value of the property.This loan is designed for the borrower with excellent credit worthiness. Generally the borrower will have a high credit score, reasonable debt for their income and plenty of liquid assets as part of their portfolio.
C. Almost any type of residential improved property is eligible. This includes new Naples FL condos, co-ops, construction to perm loans, and standard condos and single family homes.
If you are thinking about buying property in Naples, be sure to use Glenn Ginsburg, your Naples buyer agent.
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Year-End Bonus In Your Future?
Are you expecting a year-end or holiday bonus this year?Â
The calendar year-end (December 31st) is fast approaching, here is a money savings hint that might be applicable to your own personal situation.
Some lenders will recast your monthly mortgage payment, if you make a substantial principal payment. Recasting is after a substantial payment towards the outstanding balance of your loan, and the lender amortized the new outstanding principal balance over the remaining life of the loan.
Before making the principal payment, check with your lender to determine, what the payment needs to be and by how much it will lower your monthly mortgage payment. You should also consult with your income tax consultant, CPA or attorney to determine how this will affect your income tax liability for the current year as well as succeeding years.
Was this hint helpful or do you have any questions, please leave me a comment. I will be more than happy to respond.
For all your Naples real estate needs, please consider using Glenn Ginsburg, as your Naples realtor.