Naples Fl Real Estate News - 09/25/07

September 25, 2007 Posted in Real Estate News 

Is the January 29th admentment for real estate tax revision to the state constitution still on the ballot? Homes sales better or worse? Lease purchase agreements, what are the drawbacks?

REAL ESTATE TAXES - A Leon County circuit judge ruled yesterday that the Florida Legislature’s proposed property tax constitutional amendment is misleading, and he removed it from the Jan. 29 ballot. FAR, lawmakers and Gov. Charlie Crist are now reviewing the options: Appeal, revise the amendment wording, or both.

HOME SALES - In August, low mortgage rates, low unemployment rates and strong demographics continued to reflect positive economic signs in Florida with a total of 11,279 existing single-family homes sold statewide, according to FAR. The figure was closer to activity in August 2001 and 2002 – before the peak of the housing boom years – than the 15,252 homes sold in August 2006 for a 26 percent decrease in the year-to-year comparison. The statewide existing-home median sales price was $231,900.

LEASE PURCHASE - More sellers are proposing rent-to-own deals these days. The option helps both seller and buyer, as rent-to-own can provide a route to homeownership for the cash-strapped or credit-challenged. But there are drawbacks.
For sellers:
• Who will tend to the property and pay for routine maintenance?
• Who pays for major repairs?
• What are the costs of setting up and managing an escrow account for the portion of rent allotted to the downpayment?
• Will you manage the property yourself, or hire an agent?
• What if the renters change their minds? Who keeps the money in the escrow account?
• If the buyers change their minds, what will be required to put the property back on the market?

For buyers:
• How much of the rent is going to the downpayment?
• How locked in are you if change your mind? What will it cost you to get out of the deal?
• How long will it take to accumulate enough of a downpayment that you are likely to qualify for a mortgage?
• What happens if you don’t qualify for a mortgage by the specified deadline? Can you continue to rent?
• Who will be responsible for routine maintenance?
• Who will pay for major repairs?
• Do you hope to strengthen your credit rating by paying rent on time? If so, will the owner report your good habits to credit bureaus?

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