CliC247 Real Estate News Briefs - Vane/Lopez Team

When it comes to Miami Beach Real Estate homeowners spend an average of about $9,000 to furnish and decorate their new homes in the first year after they move in, according to the National Association of Home Builders. After coughing up cash for a down payment and closing costs, many owners don't have those extra thousands in savings, so they're tempted to decorate with the help of credit cards.

But financing furniture is like adding a penalty to your new mortgage. With planning and patience, you can decorate your home without adding debt. Once you've prioritized your list and figured out how much you can spend without borrowing, follow these expert tips to stretch your decorating dollars.

1. Don't move home without it. One of the biggest mistakes is when people don't take their existing furniture with them when they move. People aren't going to necessarily keep the old furniture, she says, but if they don't move the pieces into their new home, the dwelling may be depressingly bare. You don't want to come home to a folding table while you're trying to decide what new furniture to buy. Doing so would make it tempting to act on an impulse purchase at an expensive retail store. Stick with current furnishings and make improvements in a planned manner.

2. Look for low-cost color. One of the quickest and cheapest ways to transform the interior of a home is to paint it. Home-improvement centers often have unused mixed paint on hand that did not quite match a previous customer's color choice. Ask your local dealer if they have any recent mix-up mistakes. If it's a hue you can live with, you could buy a gallon or two at a deep discount.

3. Shop your house. Interior "redesigners" have made careers out of showing others how to decorate their homes without buying anything.

4. Make a model. Remember in kindergarten when you enjoyed cutting and pasting? Rediscover those days by making cutout models of furniture you're considering purchasing, and arrange them on more cutout models of the rooms in your home.

Gather pictures from magazines. Make templates. Create files for each room so you can see different things that move you. Doing so will help give you a feel for your newly decorated room before you make a big purchase. It will also help reduce the risk of ordering bulky furniture only to discover that it does not fit in your space.

5. Shop the information superhighway (and make a stop in High Point, N.C.) Consider looking online to find furniture deals that aren't local. Since several furniture manufacturers are based around High Point, N.C., it has become a hub for bargains. The High Point Chamber of Commerce reports that thousands of people from all 50 states and more than 100 countries purchase furniture from area stores each year. They are actually the reason the bargains exist.

Whether looking online or in a local store, be sure to record the manufacturer and model number of the piece of furniture you are interested in so that you can comparison shop. Understand how shipping costs will be computed, and do general due diligence to make sure you are engaging a retailer you trust.

6. Time large furniture purchases. Some experts say that January is the best time to buy furniture on sale because retailers are closing out last year's inventory. Others say that the best reductions happen around April and October, when retailers buy next season's merchandise. Everyone is probably right.

Perhaps the best time to buy furniture, then, is the day you have saved up enough to pay in full. Otherwise, financing can add high interest fees that exceed the value of any discount -- especially if paid late. That eliminates the benefit of any "sale" price.

7. Reface, don't replace. If your new home has boring kitchen cabinets that don't fit your style, it may be tempting to toss them out and buy new ones, but consider cabinet refacing to save money. Instead of ripping out the entire cabinet, you just put up a nice front, and you're done; most of the time it takes a week to two weeks. You can save 30 to 40 percent (over the cost of installing new cabinets).

8. Network with neighbors. Simply getting to know the people in your new community can help you save on decorations. Don't forget about the "neighbors" who sell through consignment stores, online auctions and garage sales. Many include pictures with their listings. Research first, and then make arrangements to visit only if you find something that's on your priority list. That way, you'll be less likely to waste money on knickknacks you won't use.

9. Look for bargains at big-box retailers. And don't be afraid to buy bargain lighting. Not every lamp has to be an antique. Get away from the stigma of not wanting to go to a home-improvement center to buy a lighting fixture. A lot of the items there are very good quality, without the extra cost.

The best-priced light is sunshine streaming through windows; of course, buyers sometimes get into trouble when buying window treatments too soon. Invest in paper shades until you are able to determine the look and feel of your desired window treatment. After living in a home for a few weeks, owners may decide that a window needs more privacy -- with heavier window treatments -- or vice versa. During this decision-making period, it is better to put up temporary paper while saving for high-quality window treatments. The operative word is "temporary," though. Don't think that a room looks finished without a window treatment. It's just that this is one piece of decoration that takes time to find.

10. Invest in an interior decorator. At first glance, hiring a design pro might seem like a sure way to bust your budget. But independent designers can help you stick with your financial plan. If you have a friend with design talent, recruit him or her - when you can find a friend like that, they're worth their weight in gold.

Before calling a professional decorator or a talented friend, be ready to explain how you you're going to use the space. Exhaust your imagination first, then call your decorator.

Buying a home is an expensive process, so don't add to your expenses by financing your furnishings. By crafting a budget and looking for good deals, it is possible to decorate your abode without borrowing.

This is an excerpt from an article ©2006 Bankrate.com

With Miami Beach real estate housing prices skyrocketing, homebuyers are finding affordable housing in rental apartments that are converted to condominiums. What does that mean to you? Here’s a look at the future of this market niche?

In 2005, Florida led the nation in condo conversions, according to Real Capital Analytics, a New York consulting firm. Tampa Bay, Orlando and South Florida were particular hot spots, with more than 16,800 apartment units sold to converters in the four-county metro Orlando market.

The primary reason for the market change has been the disappearance of speculators—buyers who intended to flip their newly converted units for a profit by reselling before or shortly after closing. A good portion of the sales velocity at a typical condo-conversion property was fueled by speculators.

Attainable Housing
Because rental apartment buildings can usually be upgraded for a fraction of the cost of new construction, many condominium conversions are attractively priced for budget-conscious buyers. Another advantage is that condo-conversion projects can often be completed in just a few months, while new high-rise residential construction typically takes two years or longer. That faster pace means quicker occupancies for buyers and faster paydays for real estate professionals.

Working with Developers
Condominium conversions offer several types of business opportunities for Miami realtors. For instance, many property owners, builders and developers need assistance in identifying promising rental properties, obtaining needed approvals and selling the units.

Smaller conversion projects often offer the best opportunities for individual associates, Look in your own back yard, there are plenty of areas where owners are converting projects with 12 to 24 units, for example, and these provide great opportunities for associates to pick up inventory and get into the market.

Another option is joining the in-house sales team on larger conversion projects, typically those with 100 units or more. Many associates like to work directly with a developer in the sales center. You have set hours, and the developer takes care of the marketing for you. You can help buyers work through the whole process, putting together a complete package for the buyer rather than driving them around to one home after another.

And sales associates who bring in prospective buyers are always welcome at conversion projects. With more than 50 conversion projects now under way in Florida developers work closely with the general brokerage community. They typically open first to brokers and associates so they can bring their [buyers] to the site when availability is greatest.

Working with Investors
Although the level of speculation in the conversion market has plummeted, there are still plenty of opportunities for sales associates to help investors find rental properties.

In 2005, most people wanted to flip their units for an immediate profit, holding long is the key to successful investing. The owners must hold on to their units to minimize any capital gains taxes on a resale, and associates can help them make plans to be a landlord.

For real estate professionals, one of the advantages to working with investors is the opportunity to provide leasing and property management services. This is one of the keys to serving investors in today’s market.

But sales associates working with both investors and buyers who intend to occupy the unit need to do their homework. Some converters may opt for cosmetic changes in the building, leaving any potential structural problems for the new units’ owners. Others—particularly those new to the market—may lack the skills or the financial strength to complete the conversion in a timely manner.

With so many condo conversions in Florida, it’s critical for real estate professionals to exercise due diligence on behalf of their clients. An experienced developer with a fine track record helps ensure the quality of the final product.
In advising investors, it’s essential to understand the current financial realities of the market: how mortgage payments, condo association fees and other operating costs compare with the projected monthly rents. You don’t want the buyer to be surprised—at closing or after the sale. For a buyer who needs a residence at a reasonable price, a condo conversion may be the best answer.

This is an excerpt from an article written by Richard Westlund a Miami-based freelance writer.

SECOND-HOME OWNER SURVEY SHOWS SOLID MARKET

This is a summary of an article from a NAR survey of second home owners which shows a continued solid market for Miami and the Beaches real estate. The following statistics are copyrighted by the National Association of Realtors.

WASHINGTON -- May 12, 2006 -- A new survey of second-home owners by the National Association of Realtors® (NAR) shows baby boomers continue to dominate the market, and a growing number of second homes -- more than one-in-10 -- are owned by minorities. A surprising majority of respondents own multiple properties in addition to their primary residence.

Minorities have become more active in the market, accounting for 11 percent of vacation home purchases between 2003 and 2005 in contrast with 6 percent of purchases in 2002 or earlier. In the investment property segment, minorities accounted for 17 percent of transactions between 2003 and 2005 compared with 11 percent in 2002 or earlier.

An unexpectedly high number of vacation-home owners, 21 percent, own two or more vacation homes. In addition, 34 percent of vacation-home owners report they own two or more investment properties.

More than half of investment property owners, 53 percent, own two or more investment homes and 12 percent own two or more vacation homes.

Analysis of U.S. Census Bureau data shows there are 6.8 million vacation homes in the United States and 37.4 million investment units in addition to 74.6 million owner-occupied units.

The typical vacation-home owner is 59 years old, earned $120,600 last year, and purchased a property that is 220 miles from their primary residence, though 34 percent were less than 100 miles and another 34 percent were 500 miles or more. Eight out of 10 drive to their property, and half of vacation homes are located within the same state as the owner’s primary residence. Eighty-three percent of owners are married couples.

Three-fourths of vacation-home owners purchased for personal use, although one-third also wanted to diversify investments, and 18 percent intended that the home would become a primary residence in retirement. Only 13 percent of vacation owners listed rental income as a reason to buy. The typical owner spends 39 nights per year at their property, and three-quarters do not rent out. Of those who do rent their vacation home, the median number is 12 nights per year.

The median age of an investment owner is 55, with an income of $98,600 in 2005; 75 percent of owners are married couples. Their investment property is located close by, within a median distance of 10 miles.

Two-thirds of investment-home owners purchased their property to generate rental income, and half viewed the property as a way to diversify investments. Eight out of 10 spend no time in their property. Not surprisingly, 80 percent rent it out, with 73 percent renting for at least six months per year.

For all second homeowners, their most recent property was purchased a median of six years ago. However, most have held additional properties for longer periods.

As for attributes desired in a vacation home, two-thirds want to be close to an ocean, river or lake; 39 percent close to recreational or sporting activities; 38 percent close to vacation or resort areas and 31 percent close to mountains or other natural attractions.

Leisure activities of interest to vacation-home owners, include the beach, lake or water sports, 57 percent; boating, 38 percent; hunting or fishing, 32 percent; golf, 21 percent; biking, hiking or horseback riding, 20 percent; ski or winter recreation, 17 percent; and tennis, 9 percent.

Half of vacation homes are located in resort or recreational areas, 18 percent in small towns and 16 percent in rural areas. Four out of ten are detached single-family homes, 22 percent are cabins or cottages, 21 percent condos in buildings with five or more units, 7 percent a townhouse or row house, 5 percent a mobile or manufactured home, and 3 percent are located in two-to-four unit structures; 1 percent were other. Six percent said their vacation home was a timeshare unit.

The median size of a vacation home is 1,480 square feet, 29 percent were new when purchased, and owners estimated the current value to be a median of $300,000 – 68 percent said the value of that property was lower than their primary residence. Sixty-five percent of owners said their vacation property was a better investment than stocks.

Six out of 10 investment properties are located within metropolitan areas. Half are single-family homes, 21 percent are a duplex or apartment in a two-to-four unit structure, 13 percent condos in a building with five or more units, 8 percent a townhouse or row house, 3 percent a mobile or manufactured home, and 2 percent a cabin or cottage; 4 percent were other.

The median size of an investment property is 1,520 square feet, 15 percent were new when purchased, and owners estimated the current value to be $200,000. Three-fourths said the value of their investment property was lower than their primary residence, and 70 percent said their property was a better investment than stocks.

Four percent of vacation-home owners and 8 percent of investment owners said they intended for their child to occupy that property while in school.

Among buyers of second homes in recent years (since 2003), two-thirds purchased through a real estate agent. Therefore two-thirds of second home buyers will use Miami Beach realtors when purchasing property in South Florida. Eighteen percent of vacation homes and 17 percent of investment properties were purchased directly from owners, while 14 percent of vacation homes and 7 percent of investment properties were purchased directly from builders.

Thirty-two percent of all vacation-home owners and 24 percent of investment owners paid cash for their property. Combined with mortgages that have been paid-off, 82 percent of vacation homes and 75 percent of investment properties are owned free and clear.

Of owners who purchased with a mortgage, the median down payment on a vacation home was 27 percent and the median down payment for an investment home was 23 percent.

When asked about the source of down payment funds for more recent vacation-home owners with loans, who purchased since 2003, half said savings, 23 percent from the sale of other real estate, and 19 percent identified equity or sales proceeds from their primary residence.

For more recent investment owners who purchased with mortgages, half said down payment funds came from savings, 28 percent from equity or sales proceeds of their primary residence, and 18 percent from the sale of other real estate.

35 percent of all investment-home owners said they were planning to buy another home within two years. For those who currently own four or more investment units, 64 percent said they planned to buy another property within two years, and 17 percent said they planned to purchase five or more additional properties.

Twenty-eight percent of investment owners plan to sell a property within two years.

The 2006 National Association of Realtors® Profile of Second-Home Owners is based on an eight-page questionnaire mailed in January 2006 to a nationwide sample of 45,000 households who owned more than one residential property. It generated 416 usable responses from vacation-home owners and 619 from investment owners.

© 2006 FLORIDA ASSOCIATION OF REALTORS®

In Miami and the Beaches real estate more consumers rely on Miami realtors and internet for buying and selling a home.

According to the 2005 National Association of Realtors® (NAR) Profile of Home Buyers and Sellers survey - technology is transforming how Americans buy and sell homes and how they work with real estate associates and brokers.

Nine out of 10 homebuyers use a real estate associate in the search process, says the survey, but use of the Internet to search for a home has risen dramatically over time — increasing from only 2 percent of buyers in 1995 to 77 percent in 2005.
Although most buyers use a sales associate to complete the transaction, 36 percent first learn about the home they buy from a real estate associate and 5 percent get information from yard signs.

A clear downtrend in for-sale-by-owner (FSBO) homes has been seen since that market share experienced a cyclical peak of 18 percent in 1997. Only 13 percent of sellers conducted transactions without the assistance of a real estate professional in 2005; and 39 percent of those FSBO transactions were “closely held” between parties who knew each other in advance. NAR began tracking the FSBO market in 1981; the record was 20 percent in 1987.

The median home price received by sellers who use a sales associate is 16 percent higher than a home sold directly by an owner: $230,000 vs. $198,200, with no significant differences between the types of homes sold.

Realtor.com was the most popular Internet resource, used by 54 percent of buyers, followed by Multiple Listing Service (MLS) Web sites, 50 percent; real estate company sites, 38 percent; real estate associate Web sites, 31 percent; and local newspaper sites, 15 percent.

The 2006 legislative session has ended. Here's how Miami and the Beaches real estate-related issues fared:

TALLAHASSEE, Fla. -- May 6, 2006 (12:11 a.m.)

Wednesday afternoon FAR's bills began moving at record pace. Its Chapter 475 and homeownership license plate bills were ready for final approval by the Senate. A must-have regulatory bill for appraisers passed and was on its way to the governor.

On Thursday by 11:30 a.m., FAR's Chapter 475 bill passed. An hour and a half later, the license plate bill was also headed for the governor's desk. And at 4 p.m., the House took up and passed the affordable housing and eminent domain bills FAR worked so hard to advance.

Here's the laws passed this session that benefit businesses, Miami realtors and property owners: The following is word for word from the original article:

Affordable housing. By most indications, 2006 promised to be the year that legislators would appropriate the bulk of the monies generated for the housing trust funds to help teachers, firefighters, nurses and others to afford a home in the communities they serve. There was bipartisan agreement early on that the housing programs were needed now more than ever. FAR proposed a solution, too: a specialty license plate, with proceeds going toward affordable housing. Rep. Chris Smith (D-Fort Lauderdale) and Sen. Dave Aronberg (D-Greenacres) sponsored FAR's "Support Homeownership For All" license plate bill, HB 1589. But the housing packages that passed this session -- HB 1363 by Rep. Mike Davis (R-Naples) -- allocates $431 million from the William E. Sadowski trust funds but unfortunately doesn't remove the $243 million cap on the funds. In addition to the $431 million, the federal government will add $82.9 million for hurricane housing.

Property tax relief comes in various forms in five bills: HB 7109 by the House Finance and Tax Committee, prohibiting local governments from increasing the assessed value of home repaired or rebuilt as a result of hurricanes and other "calamities;" HJR 353 by Rep. Carlos Lopez-Cantera, R-Miami, which will ask voters in November to approve a constitutional amendment to increase the homestead exemption for low-income seniors from $25,000 to $50,000 effective January 1, 2007; SB 1268 by Sen. Gwen Margolis, D-Bay Harbor, expanding the eligibility requirements for the property tax deferral programs; HJR 1571 by Rep. Marco Rubio, R-Miami, which will ask voters to amend the constitution so property owners whose homes are taken by eminent domain retain a property tax rate within three percent of their original assessment on the next homestead purchase; and SB 264 by Sen. Mike Fasano, R-New Port Richey, allowing owners of homestead property to add more owners to the deed without losing the Save Our Homes status.

Homeowners insurance: Big crisis, small solutions. Private insurers are raising rates and exiting the state market at an alarming rate. Citizens Property Insurance Corp., the state's insurer of last resort, has become the insurer of only resort for nearly 900,000 policyholders. And all insured Floridians are reeling from exorbitant rate increases and fees to bail out Citizens' $1.7 billion deficit. So it should come as no surprise that the insurance reforms adopted as one of the Legislature's last acts of the session takes small steps toward solving a huge problem. But it's a start. "It is an ideal bill? Not at all," admitted Sen. Mike Bennett (R-Bradenton) following two days of negotiations between House and Senate leaders. "It will be especially tough for legislators who represent the coastal areas. But I'd rather pass this bill than do nothing. The people didn't put us in office to do nothing." Following are key provisions of SB 1980 by Sen. Rudy Garcia (R-Hialeah):
* $715 million from the state's tax windfall will be used to pay down Citizens' $1.7 billion debt.
* If Citizens incurs future deficits, the method of reducing the debt will be different than it is today. Currently, all Florida policyholders pay the tab. Under SB 1980, they will pay an assessment only after all Citizens policyholders are assessed -- some twice.
* Effective July 1, 2008, $1 million homes cannot be insured by Citizens unless the property has been rejected for coverage by at least one authorized insurer and at least three surplus lines insurers. Effective March 1, 2007, the same rules apply to vacation and second homes.
* Citizens rates can be raised without approval from the state.

Stricter eminent domain laws. Florida Realtors are strong advocates of private property rights and supported Rep. Rubio in his efforts to enact statutory and constitutional limits on the use of eminent domain for economic redevelopment without interfering with government's traditional right to take land for schools, parks, roads and bridges. HB 1567 and HJR 1569 tighten existing definitions of blighted property and only allow governments to take property that is an immediate threat to public safety or health.

Chapter 475 changes. HB 1009 by Rep. Larry Cretul (R-Ocala) reforms a number of real estate laws to benefit the public, the Department of Business and Professional Regulation and the industry, including: allowing a broker or sales associate to be licensed as a limited liability company, which provides a number of tax and personal liability benefits; repealing the advance fee statute; and making brokers more accountable for their sales associates and escrow monies. HB 1009 also amends the agency and non-agency disclosures to ensure consistency with Florida law. Separately, the state budget includes five new positions for the Division of Real Estate.

Appraiser standards: SB 466 by Sen. Lee Constantine (R-Altamonte Springs) conforms Florida regulation to minimum federal appraiser standards that are set by the Appraisal Qualifications Board. This is needed for appraisers to continue providing appraisals in transactions that involve bank financing.

Reduced risk for brokers, associates and owners who sell coastal property. SB 1948 by Rod Smith (D-Gainesville) requires sellers of coastal property located seaward of the coastal construction control line (CCCL), a boundary established by the state and roughly including beaches and dunes, to make a broadly-worded disclosure before the contract for sale and purchase is executed. After amending the bill to ensure the language was incorporated into the existing CCCL disclosure, FAR did not oppose the measure. It will protect Realtors and sellers from claims of misrepresentation after the closing. If signed into law, the new disclosure takes effect July 1.

Sinkhole insurance. HB 217 by Rep. John Legg (R-Port Richey) creates additional procedures for coverage and claims that protect insurers, policyholders and future buyers. For example, insurers may offer a range of deductibles and discounts on premiums for higher deductibles. Under the new law, an insurer that pays a claim for a sinkhole loss will have to file a copy of the report with the county clerk of court. Currently, the report is provided to the county property appraiser.

Tort reform: Protection against extraordinary legal fees. HB 145 by Rep. Don Brown (R-DeFuniak Springs), signed into law April 16, repeals a long-standing legal doctrine known as joint and several liability and potentially saves business owners and individuals millions in undeserved legal fees. Before, when an injury was caused by two or more people or companies and one of them couldn't pay his share of the victim's medical bills and lost wages, the other party could be held responsible for nearly all of the damages. The repeal of joint and several liability returns fairness to the civil legal system by making individuals and businesses liable only for their share, not someone else's.

Also important to Realtors is a measure that didn't pass: regulation of home inspectors. HB 161 by Rep. Carl Domino (R-Palm Beach Gardens) sought to establish a non-regulatory alternative to licensure for home inspectors. Critics believed the bill didn't go far enough in protecting buyers from unscrupulous or untrained home inspectors.