Florida To Decide (Again) On Property Tax Relief

Today (November 14, 2007) Florida Governor Charlie Crist signed the bill approved by the Florida Legislature on October 29,2007 regarding the proposed state constitutional amendment. If Florida's voters approve the amendment on January 29, 2008, the 4 part property tax cuts will become law.

The four parts of the proposed tax cuts are:

1. The current $25,000 homestead exemption would be doubled for primary homes valued at more than $50,000. Law-makers and analysts predict that the average homeowner will save $240 a year.

2. Save Our Homes (SOH) Portability. This will allow those with homestead exemptions to take their SOH with them when moving to another homestead. SOH limits annual assessment increases to 3 % on primary homes.

3. Businesses, second homes and rental properties will enjoy an annual assessment cap (10%) similar to that of the SOH.

4. Businesses can take advantage of a $25,000 exemption on equipment and other personal property.

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Florida Property Tax Update

The latest version of property tax reform: How it works

TALLAHASSEE, Fla. – Nov. 1, 2007 – The Florida Legislature, caught in a game of “chicken,” approved a measure that will appear before voters on the Jan. 29, 2008, ballot. With time working against them, lawmakers agreed on a measure that scaled back earlier initiatives, and even current reforms pushed by the House.

What the current amendment includes:

Homestead exemption
The homestead exemption increases. The current $25,000 homestead exemption remains; but a second $25,000 exemption is added for home values between $50,000 and $75,000. The second $25,000 exemption does not apply to school taxes, however, which translates into a lower-than-expected savings of about $240 per homesteaded owner. The portion of a home valued between $25,000 and $50,000 will still be taxed at all levels. FAR fought to include this taxable portion in order to maintain fairness for smaller cities and counties with lower median home values.

Portability – Moving up
Property tax savings portability (money saved over time on property taxes because of yearly increase limits through Florida’s Save Our Homes amendment) applies to homesteaders (homeowners with a homestead exemption) moving anywhere within Florida. Up to $500,000 of accumulated savings, applied to taxable value, may be transferred when one home is sold and another is purchased, with the transfer applying to all taxes, including the school portion. Homeowners have two years after they sell a home to buy a new one and transfer the savings.

If buying a more expensive home, a homesteader calculates savings by subtracting the assessed value (taxable value) from the just value (market value). The amount (savings over time) is then subtracted from the just value on the new home purchased. In most cases, the $50,000 homestead exemption will also be subtracted.

Example: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new house for $700,000. The following year, she’ll pay taxes on only $400,000, however, because she’s “porting” $300,000 in value to her new home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $350,000.

If buying a less-expensive home, the calculation changes and is based on the percentage of tax savings rather than a dollar amount. If the assessed value on the original home was 50 percent of the just value, for example, the homesteader would transfer that percentage to the new home, or have a new assessed value that is 50 percent of the new home’s just value. The percentage system was created to keep homesteaders from effectively eliminating their property taxes altogether by moving from a high-cost area of Florida to a low-cost area – a change that could severely hurt smaller rural economies.

Example: Susie currently owns a home and has lived there for a long time. The house’s just value is $500,000, but because of Save Our Homes, the assessed value is only $200,000. Susie buys a new town home for $300,000. She’ll pay taxes only on $120,000 because when buying down in value, she’ll keep the same ratio (40 percent) of assessed value to just value that she enjoyed in her old home. After factoring in the new homestead exemption of $50,000, her total assessed value would be $70,000.

Also, portability is retroactive to Jan. 1, 2007 – so everyone who bought this year and moved from an established homestead will be able to “port” their savings for next year. Since yearly tax values are based on ownership as of Jan. 1 each year, portability would not affect this year’s tax bills, which most homeowners have already received; but the savings will be applicable to next year’s tax bill.

Non-homesteaded property tax cap
A win for FAR and an important piece of the amendment is a 10 percent annual assessment cap on non-homestead property. Similar to Save Our Homes, this cap limits the assessed increases of commercial, rental and second home property taxes to a maximum amount of 10 percent per year starting in 2009, protecting against high spikes in taxes from year-to-year.

While property values will not rise 10 percent every year, FAR believes the cap offers some relief and protection to properties in high-value markets and waterfronts from unpredictable tax increases. The Constitution mandates a tax reassessment to just value upon transfer for non-homestead residential properties of nine units or less, but allows the Florida Legislature to determine how reassessment will occur for commercial and higher-unit residential properties. However, implementing legislation passed during the Special Session provides for reassessment of these properties upon a change in ownership or use.

Tangible personal property exemption
Under the amendment, the Tangible Personal Property (TPP) exemption for businesses is $25,000. The Legislature estimates that this tax – paid to local governments on items such as shelving, desks, computers, and other office equipment – will exempt about 1 million of Florida’s 1.2 million businesses that currently pay it. The amendment also drops the requirement to file for the TPP tax.

Work not done
While the proposed amendment will save property owners as much as $12 billion (depending on the portability amount used), FAR will work for greater relief measures. The association also has serious concerns about a challenge to the constitutionality of portability.

Earlier versions of property tax reform included provisions to help first-time homebuyers, a move missing in the current version. With that protection gone, FAR considers it possible that it will be challenged under the U.S. Constitution along with the entire Save Our Homes property tax system. If that happens, it could bring everyone back to the table yet again.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Florida House passes property tax reform legislatio

TALLAHASSEE, Fla. – Oct. 23, 2007 – The Florida House passed a bipartisan property tax reform package yesterday by a 108-2 vote that addresses many issues important to Florida Realtors. House leaders consider the almost-unanimous vote an indication of that legislative body’s dedication to the plan. It now goes to the Senate for consideration.

Prior to the vote, Florida Association of Realtors®’ (FAR) President Nancy Riley sent a letter to House Leadership indicating the association’s support for property tax reform, specifically applauding the inclusion of an assessment cap for non-homestead and commercial property owners. The 5 percent yearly assessment cap on non-homesteaded property (assessment retriggers upon sale) and commercial property (assessment only retriggers with “substantial” improvements) would apply to local government and school taxes.

“The House proposal regarding an assessment cap for non-homestead residential property and commercial property addresses many of the tax problems with non-homestead properties’ high yearly assessments and an uncertain tax bill from year-to-year,” Riley told House leaders, since many “non-homestead property owners are rethinking whether they want to invest in Florida.”

Another provision FAR leadership finds appealing is a guaranteed property tax break of 40 percent for homesteaded property or Save Our Homes savings. Homeowners would take advantage of the tax relief plan that saves them the most money. The 40 percent break would offer substantial and immediate relief to new homebuyers or those who purchased a home within the past few years.

“We are also pleased that both the Senate and House are advocating for “Save Our Homes” portability,” Riley says. “While not precisely in line with FAR’s stated position (local county option or a phase-out of ‘Save Our Homes’), this is mitigated by the House’s proposed assessment cap on non-homestead properties.” The House proposal includes statewide portability of property tax savings under Save Our Homes.

Other legislative highlights include:

• No doubling of the homestead exemption
• The Legislature will be allowed to change assessment methods for working waterfronts and affordable rental housing
• The Miami-Dade Property Appraiser must be elected, rather than appointed
• $25,000 tangible personal property tax exemption

The House bill, while covering many FAR goals, is still not the final word, however. “FAR will continue to promote property tax reforms in the areas of ‘highest and best use,’ presumption of correctness, value adjustment boards and assessment issues related to affordable housing and working waterfronts,” says Riley.

The Senate is slated to reconvene on Thursday. A Call-to-Action will probably be issued by FAR shortly, asking Realtors to contact senators, encouraging them to approve the House plan. The House and Senate must approve a bill by Oct. 29 to make it onto the Jan. 29 ballot.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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Florida House pushes for stronger property tax cuts

TALLAHASSEE, Fla. – Oct. 22, 2007 – On Saturday, Florida’s House of Representatives released its updated property tax reform plan, which includes a number of initiatives favored by Florida Realtors.

House leaders now hope to build a bipartisan consensus to show the Senate that they’re serious about drastically cutting state property taxes. If Democrats and Republicans pass the measure with something close to a majority, they reason, the Senate would have to consider the plan.

“If we come out with a product in the House that’s 118-2 or 115-5, it sends a message that, look, this is pretty good reform that we’re united behind,” says Rep. Jack Seiler, D-Wilton Manors. “We actually deliver the same in tax cuts [as the Senate’s plan], but we deliver it more efficiently.”

In addition to portability – which the governor, Senate and House already advocate – the updated House proposal includes a 5 percent assessment cap on commercial and non-homestead property. The cap applies to properties, so a change of ownership would not change those taxes under a new owner, giving non-homestead property owners a degree of stability and predictability.

The House also advocates a new homestead exemption. Instead of doubling the current $25,000 exemption, the plan would guarantee a minimum Save Our Homes exemption of 40 percent of a county’s median home price. House leaders believe this will provide relief to not only new buyers but also those who have purchased in recent years.

Issues being proposed in the House plan include:

•Homestead property owners would pay tax based on their existing Save Our Homes value or current value minus 40 percent of their county’s current median home price, whichever is less.
•5 percent cap on commercial and non-homestead property taxes
•Under portability, homeowners may transfer Save Our Homes benefits to a new homestead anywhere in Florida within two years of leaving their former homestead.
•Tangible personal property exemption of $25,000
•Limits the authority of local governments to increase property taxes
•Provides limitations on the assessed value of properties used for affordable housing
•5 percent assessment growth limitation for all non-homestead properties
•More flexibility for the Legislature to limit assessments for working waterfront properties
•Election of all county property appraisers

FAR has a downloadable chart comparing the recent House proposal to Senate positions here.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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A Taxing Dilemma

As most of you are aware by now, the proposed "Superexemption" property tax amendment was removed from the January 29, 2008 ballot by Leon County circuit court judge Charles Francis. While this move is clearly disappointing to many expecting huge property tax relief, we must overlook this gaff find the good in an otherwise poor decision. Florida Governor Charlie Crist and others are feverishly working to put together another tax relief bill and get it in front of Florida voters for the January primaries. In order to do that, lawmakers need to finalize a new plan, likely with less "oomph", and submit it by the end of October, 2007...the constitutional deadline for putting a new amendment on the January 29, 2008 presidential primary ballot. Maybe this one won't confuse judge Francis.

As a strong part of his election campaign, Crist spoke of Save Our Homes portability and doubling the homestead exemption...and he may have to stick with that premise for now. While Crist and others who are forging tax relief proposals are avoiding making criticisms about Francis' ruling, they are optimistic about the opportunity to provide what they hope will be a better plan. Even if there is some kind of relief put on the ballot, it doesn't necessarily mean that this will be the end of Crist's efforts. Crist has said that he will continue to fight for property tax reform for Florida until a dramatic solution is in place.

Meanwhile, the first phase of the original plan has already taken place...freezing tax rates and telling Florida's Counties and Cities to trim the fat. But, believe it or not, there are those out there who want to ruin the party we've all been invited to. Enter Weston Mayor Eric Hersh, County Commissioner Ilene Lieberman, Fort Lauderdale City Commissioner Carlton Moore, Hallandale Beach Mayor Joy Cooper and a slew of others. They don't seem to want to be told how much tax revenue they can squeeze out of Florida residents...or how to spend it. While at this point some of them are only vowing to get involved in suing the State over this benefit to taxpayers, Hersh has already cried foul and put his foot in the mud. Hersh sued claiming the reliefs were illegal and that the Florida constitution gives the local governments the authority to impose taxes up to $10 per $1,000 of assessed value. Apparently Hersh wants access to the whole enchilada. Even after Francis made one good decision by telling him no, and that the Legislature has the power to limit that authority, Hersh says he and his attorney have grounds to contend Francis' ruling as incorrect.

Makes you wonder if Hersh or the others would support ANY property tax relief, after all, the money that would go back into the pockets of Florida's citizens would have to come from somewhere. Seems like he would rather be able to spend your money than to have the opportunity to do something about out of control taxes.

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Change Is Good

If there is one thing that is constant, it is change. And if there is one thing I have learned in life, it is to seek change before change seeks you. In light of that, it is with mixed emotions that I announce that I am no longer with Exit Realty Consultants in Brandon, Fl. I have made the move to Exit Extreme Realty in Tampa, Fl. While for my friends and customers the change will be transparent, this decision puts me more in line with my long and mid-range goals. My phone number, e-mail address, website and blog remain unchanged, as does my commitment to all of you. Fell free to call or write with any questions.

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Think About It-Don't Be A Billy

Picture it. It's Christmas Eve...little 7 year old Billy has been begging Santa for the last 3 months for a brand new bicycle (the GIZMO RACER 5000) to replace his old, run-down bike (a GIZMO RACER 1500). Billy has been complaining for a long time about how useless his current bike is. So he sneaks downstairs and under the tree he spots a present with his name on it, you know the kind, no box, just wrapping paper. But its the shape of a bicycle. Billy peels apart just a small corner and takes a peek. It IS a new bike, but it's not a GIZMO RACER 5000, it's a GIZMO RACER 3000.

Disappointed, Billy returns to his room for the night. The next morning Billy's parents can't wait to see his excitement as he opens his present. But Billy refuses to accept it and complains about how its not the best bike available. No, he's going to hold on to his old worn out bike until "Santa" goes back to the drawing board and brings him the best bike possible. Besides, Billy's friends have been telling him that the GIZMO RACER 3000 might not be as good as his beat up GIZMO RACER 1500 with no brakes and a chain that keeps falling off. It's a brand new bike. It's a better model than his old one. Is there a better bike on the market? Sure. But the GIZMO RACER 3000 is better than what Billy has now. The moral of the story? Billy should be thankful that he was given a new bike, and he should stop listening to his friends that don't want him to have a new bike. Billy's not a brat, he just needs to THINK ABOUT IT.

Ok, so why this little story? Because it's Christmas Eve folks. You need to start thinking about what you need and want here in Florida....Property Tax Relief. There is, and has been, a lot of talk about the proposed SUPER EXEMPTION. Research (below) shows that over 90% of Florida Home Owners will be better off with the new plan. Yet support seems to be about 50/50 for the upcoming decision. Do the research for yourself on your County Property Appraiser's website and ask yourself this question. Do I accept a better bike than I have now, or do I refuse it and complain (and continue to suffer) that its not the best bike that can be made? Don't be a Billy. THINK ABOUT IT.

Below is an article from the Florida Association of Realtors® which was the inspiration for the story above.

A TAXING EFFECT

The analysis is in, and it’s ponderous. A comprehensive study of Florida property tax laws – ordered by the Florida Legislature and conducted by a team of economists from the University of Florida and Florida State University – was released yesterday. Issued in three parts, the entire study has 689 pages and sometimes-challenging text. But it does study the state’s property tax problems from all angles. For example, the study finds that only 9.2 percent of Florida households would be better off keeping their Save Our Homes exemption if the proposed property tax amendment passes in January – but the authors also note that far more would opt to keep SOH under that scenario. To download the complete report or any one of the three parts, go to: http://edr.state.fl.us/property%20tax%20study/property%20tax%20study.htm

© 2007 FLORIDA ASSOCIATION OF REALTORS ®

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Fed Up With The Property Tax Issue?

Well, do something about it. Attend a Taxing Authority budget hearing, speak your mind, ask questions, listen...learn, and be informed. I received an e-mail today from the local Association of Realtors® with the schedule of these hearings. Here's what it had to say (©2007 Greater Tampa Association of REALTORS®). These hearings are to finalize millage (tax) rates for property taxes. Here is the schedule for some of the budget hearings of the Hillsborough County taxing authorities. Property owners are invited to attend and inquire about millage rates for various jurisdictions and ask questions about the budgets. Please call to confirm the dates and times prior to attending!!!

TAXING AUTHORITY/PHONE 1st HEARING TIME HEARING LOCATION

Hillsborough County 813-272-5890 Sep 5th @ 6:00 p.m.
601 E. Kennedy Blvd Tampa

City of Tampa 813-274-8111 Sep 4th @ 5:01 p.m.
315 E. Kennedy Blvd Tampa

City of Temple Terrace 813-989-7103 Sep 4th @ 7:00 p.m.
11250 N 56th St Temple Terrace

City of Plant City 813-659-4200 Sep 10th @ 7:30 p.m.
302 W Reynolds St Plant City

School Board 813-272-4064 Sep 6th @ 5:01 p.m.
901 E. Kennedy Blvd Tampa

Transit Authority 813-623-5835 Sep 10th @ 5:30 p.m.
601 E. Kennedy Blvd Tampa

Children’s Board 813-229-2884 Sep 13th @ 5:01 p.m.
1002 E. Palm Ave Tampa

Water Management 352-796-7211 Sep 11th @ 5:01 p.m.
7601 Highway 301 N Tampa

Tampa Port Authority 813-905-5132 Sep 12th @ 5:01 p.m.
1101 Channelside Dr Tampa.

Click here to read the full article

Choosing Your Tax Plan Just Got Easier

With all the talk about the proposed "Super Exemption" being placed in front of Florida voters in January, there are a lot of misconceptions, and a down-right lack of understanding. I have been writing about the proposed plan for a while now, but for some of you, it just got a lot easier with property appraiser websites.

There is a new feature on the Hillsborough and Pinellas County Property Appraisers websites that allow you to calculate your taxable property value under the Super Exemption plan. While both sites are similar, there are a few minor differences. Essentially they allow you to compare the current Save Our Homes tax limitation against the proposed Super Exemption plan side by side to help give you an idea as to which plan may benefit you.

Before you go to either site, keep in mind a little professional opinion. In an "average", "stable" market, a 4% increase per year in market value is common. This will all make sense once you go to the Appraiser's site.

For Hillsborough County:
Go to the Hillsborough County Property Appraiser's Property Record Search page, linked here. Enter your name (last name, space, first name) and hit the search button. Once you find your property, click on it. Once on the page with your property info, just below the "Value Summary" you will see "Super Exemption Calculator". Click on it and a new page will pop up. The assessed value, market value and exemptions (if any) related to your property will automatically be filled in.

Now, from the drop down menu you will be asked to select a "Real Estate Appreciation" percentage. This is what I was referring to earlier. Personally, I think 4% is realistic. That's my opinion. Talk to a professional in your area for their opinion. Next, select the number of years into the future you would like to compare the plans, and hit "Calculate".

What you will see is the current Save Our Homes taxable value of your home on the left, year by year and the Super Exemption taxable value of your home on the right.

For Pinellas County:
Go to the Pinellas County Property Appraiser's main page, linked here. Less than half way down the page you will see "Super Exemption Calculator now available! Click here for complete information". After clicking that link, follow the easy instructions for finding your property. From there, this site is very similar to the directions I just gave you for Hillsborough County.

Was this information useful? Has it helped you come closer to deciding which plan is best for you? I want to here about it. Click on "Post A Comment" (below) and give me your 2 cents.

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July Market Report

Here is the real estate market report for July, 2007.

***Disclaimer***
The information I am posting is from a variety of resources and ultimately not all homes can possibly be accounted for due to public records errors, and the fact that there is no accurate comprehensive database for FSBO's (For Sale By Owner). Prices are rounded off for convenience and this data is for informational purposes only.

**Subscribe to my Blog to get notices of updated information and new articles! Just enter your e-mail address in the box below the For Sale By Andy logo!

JULY

Brandon
# Sold 65
Avg SP $253,000
Med SP $210,000
Avg DOM 92
Med DOM 75

Valrico
# Sold 66
Avg SP $272,000
Med SP $261,000
Avg DOM 91
Med DOM 78

Seffner
# Sold 13
Avg SP $193,000
Med SP $192,000
Avg DOM 49
Med DOM 35

Riverview
# Sold 99
Avg SP $223,000
Med SP $208,000
Avg DOM 86
Med DOM 67

Tampa
# Sold 658
Avg SP $313,000
Med SP $225,000
Avg DOM 105
Med DOM 80

Lithia
# Sold 27
Avg SP $344,000
Med SP $320,000
Avg DOM 97
Med DOM 81

Legend:
# Sold: Number of homes that sold during that month.
Avg SP: Average sold price of the homes sold.
Med SP: Median sold price of the homes sold.
Avg DOM: Average # of days those homes were active on the market.
Med DOM: Median # of days those homes were active on the market.

Click here to read the full article

June Market Report

Here is the real estate market report for June, 2007.

***Disclaimer***
The information I am posting is from a variety of resources and ultimately not all homes can possibly be accounted for due to public records errors, and the fact that there is no accurate comprehensive database for FSBO's (For Sale By Owner). Prices are rounded off for convenience and this data is for informational purposes only.

**Subscribe to my Blog to get notices of updated information and new articles! Just enter your e-mail address in the box below the For Sale By Andy logo!

JUNE

Brandon
# Sold 70
Avg SP $219,000
Med SP $193,000
Avg DOM 90
Med DOM 79

Valrico
# Sold 69
Avg SP $286,000
Med SP $275,000
Avg DOM 95
Med DOM 81

Seffner
# Sold 25
Avg SP $195,000
Med SP $178,000
Avg DOM 99
Med DOM 67

Riverview
# Sold 118
Avg SP $237,000
Med SP $223,000
Avg DOM 98
Med DOM 78

Tampa
# Sold 817
Avg SP $306,000
Med SP $238,000
Avg DOM 108
Med DOM 88

Lithia
# Sold 45
Avg SP $383,000
Med SP $337,000
Avg DOM 96
Med DOM 66

Legend:
# Sold: Number of homes that sold during that month.
Avg SP: Average sold price of the homes sold.
Med SP: Median sold price of the homes sold.
Avg DOM: Average # of days those homes were active on the market.
Med DOM: Median # of days those homes were active on the market.

Click here to read the full article

Declining Sales Prices

Real estate is an investment. Whether you buy a home for that reason or not, it is an investment. It is the largest purchase you are ever likely to make. Therefor, it should be looked at just as seriously as professional investors do. True investments are not short term in nature.

In real estate, owning a home for just one or two years IS short term. If you bought a home within the last two years and now want, or need to sell, then yes...it is going to be hard to avoid losing money. This would be the equivalent of buying stocks when they are on the way up and selling when they are on the way down. That's not what the pro's do.

Successful investors don't pay a lot of attention to short term numbers, they look at long term trends. So comparing home prices from five years ago, there has been a tremendous, steady gain. Many areas have seen a 50% - 80% increase over the past five years. So a small "loss" of 2% - 7% in prices in the last year or so is still a long term gain.

The doom and gloom (or Chicken Little Syndrome) many of us hear in the media circles is great for selling papers, or getting people to watch a particular channel, but should not be your primary source of information. Numbers being thrown around are general, not specific to a small enough area for anyone to take to heart. A general number isn't really a good rule of thumb for a state, a county, or even for one town.

For example, Eastern Hillsborough County is different from Western Hillsborough County. Brandon is different from Valrico. Copper Ridge (Valrico) is different from Brandon Brook (also Valrico), which is different from Buckhorn Estates (also Valrico). Do you see the point I'm making? If you truly have concerns about the market value of YOUR home, consult a professional who can look at YOUR area, it's trends and amenities, and apply that to YOUR specific home.

So, is the sky falling? No. Is it raining in a lot of areas? Yes. But don't go building an Ark just yet, the skies are showing signs of clearing up, and for the Tampa Metro area, the forecast is looking pretty promising.

For those interested...you can get a neighborhood trend report e-mailed to you without cost or commitment. Just send me an e-mail with your name and address. If you choose, you can also get updates when homes in a particular neighborhood go on the market and/or sell.

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Best U.S. City To Buy A Home

Forbes Magazine has recently released it's Top 10 List of the best places in America to buy a house. Who made the list? Where's the Best Place? Why is it number 1? Read on to find out.

Forbes Magazine (the on-line edition) teamed up with Moody's Economy.com to announce where they feel are the best places to buy a home...and why. First, what qualifies an area to be considered?

According to Forbes, some of the indicators are when an area has an overall strong, growing economy and comparably modest housing prices. The area must also be overstocked in real estate inventory with plenty of sellers anxious to negotiate. In addition, an area is prime for a market "bounce back" if it is seen as one where prices aren't likely to fall so drastically that buyers are getting in while the market is still sharply on the way down. These areas are typically referred to as "V" Shaped Recovery areas for their sharp decline, followed by a sharp rebound.

While ANY recovery would be a welcome site to all the people trying to sell their home right now, those who live in the areas that made the list may want to think of the "V" as in Victory. Ok, enough already! WHERE'S THE LIST?!?!?!

Here you go (in reverse order for dramatic effect!):

#10. Atlanta
# 9. New York City
# 8. Milwaukee
# 7. San Diego
# 6. Phoenix
# 5. Chicago
# 4. Kansas City
# 3. Miami
# 2. Minneapolis

And the Number One Place In The U.S. To Buy A Home Is.......

# 1. Tampa Bay!!!!!!!!!!

That's right! Tampa Bay. Forbes is saying that the Tampa/St Petersburg/Clearwater area is prime for a strong market recovery and calls it a "...highly resilient market." Projected job growth and a good economy set the tone for correcting the recent market down-turn, paired with investor-heavy inventory beginning to taper off. While Forbes is predicting a first quarter 2008 bottoming for the area, Tampa Metro is their pick for #1!

If you would like to search for homes currently available in the Greater Tampa area, click here.

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Save Our Homes Exemption Answers

I received a question from someone asking how they could determine if they have the Save Our Homes limitation on their homestead property. Since the answer varies from homeowner to homeowner, plus it was a very good question, I thought I would clear it up a little.

If you own a homestead property in Florida, and have had it since 2004 or earlier, then the answer is yes. If you bought and homesteaded a home in 2005, then last year (2006) you did not qualify for the Save Our Homes limitation, this tax year (2007, to be paid in early 2008) you do.

The Save Our Homes Amendment of the State's Constitution was approved by Florida voters in 1992 and put into effect in 1995. This amendment places a limitation of 3% on any annual assessment increases on Homestead Properties in Florida. However, the limitation does not apply the year following a change of ownership.

Residences without homestead, non-residential property, vacant land, tangible personal property, commercial property, and agricultural property, are not eligible for the amendment limitation.

Once the property has been conveyed to the new owner, it is raised to full market value January 1 of the following year. The new owner must apply for and receive homestead exemption. The year following the granting of homestead exemption the property is subject to the limitation.

However, if the new "Super Exemption" property tax plan passes in the January 29, 2008 statewide vote, everything changes. In many cases, you will pay less in property taxes...how much depends on whether or not the County Board of Commissioners changes the millage rate as well as if the County Property Appraiser re-assesses property values.

Example 1:
If the bill passes and millage rates and values are unchanged, your tax bill should go down, significantly.

Example 2:
If the bill passes, millage rates don't change, but assessed values are adjusted to realistic market values, your tax bill is still likely to go down from what you are paying now.

Everyone's specific situation is different and this is meant only to give you a general idea.

I have already contacted Congressman Adam Putnam's office (the Representative for my area) asking what the plans are if the bill passes. When I get an answer, I'll post it here. Subscribe to this blog in order to receive automatic updates from me on this and other topics involving home ownership.

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5 Arrested In Mortgage Loan Scam

Five people were arrested last week for their role in fleecing homeowners out of millions of dollars in bogus mortgages. So far it seems this group of low-lives preyed upon minorities, the elderly and the poor. Scott Almeida, Orson Benn, Adrienne White, Frank Giffone and Samuel Green were all picked up on numerous charges. Two of the five (Almeida and Giffone) were from the Tampa area.

Scott A. Almeida was arrested on 7/18/07 and so far faces 15 charges including 1 count of "RICO VIOLATION", 1 count of "RICO CONSPIRACY OR ENDEAVOR", 6 counts of "OBTAINING A MORTGAGE NOTE BY FALSE REPRESENTATION", and 7 counts of "GRAND THEFT SECOND DEGREE".

Frank S. Giffone, also arrested on 7/18/07, faces 18 charges including 2 counts of "RICO VIOLATION", 4 counts of "GRAND THEFT THIRD DEGREE", and 12 counts of "ACTING IN THE CAPACITY OF CONTRACTOR WITHOUT A LICENSE".

RICO stands for "Racketeer Influenced and Corrupt Organizations", which is a U.S. federal law enacted in 1970 that compounds the penalties of criminal acts performed as part of an ongoing criminal organization.

Almeida, Giffone and White, are all former owners, principals or employees of the Hillsborough County mortgage broker companies Advanced Mortgage Solutions and Consumer Lending Resources. In addition to the mortgage brokerage businesses, the defendants operated two home improvement companies: Premier Quality Renovations and Florida Beautiful Construction. Almeida and Giffone convinced mostly minority homeowners in poor areas of Florida to take out home loans to finance significant home improvements. The pair then submitted loan applications that included false, forged or counterfeit documents. The scam continued with Benn and Green abusing their positions at Argent Mortgage (White Plains, N.Y.) by approving the fraudulent documents and loan packages, then distributing the funds amongst the group. The victims in these situations were now on the hook for these loans and of course, little or no improvements were actually made by the group.

According to the Florida Department of Law Enforcement, in total, Almeida and his associates, through various mortgage broker businesses, have submitted approximately 180 loans through Argent Mortgage Company totaling nearly $18 million. At least 129 of these loans were funded in the amount of approximately $13 million.

State Attorney General Bill McCollum said, "The allegations brought against these individuals are unspeakable. To prey on the hopes and dreams of these people who were simply trying to improve their homes is a terrible scheme and my office is committed to prosecuting those involved to the fullest extent of the law. I commend the cooperation exhibited by this investigation and look forward to a positive resolution for the citizens who were victimized."

The investigation began 3 years ago and the results are a compliment to the multi-agency cooperation between the Tampa Police Department (TPD), Hillsborough County Consumer Protection Agency (HCCPA), Pinellas County Department of Justice and Consumer Services (PCDJCS), Florida Attorney General's Office of Statewide Prosecution (OSWP), and the Florida Department of Law Enforcement (FDLE).

This is just one example of the numerous scams that are out there. If you feel you have been the victim of a scam, contact your local police department, or in Hillsborough County Florida, call Kevin Jackson, Chief Investigator at the Hillsborough Consumer Protection Agency 813-903-3425. Brush up your awareness on some other scams by reading other articles I have posted:


Property Deed Scam
Cash Back At Closing Scams
Urgent Message

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Thinking About A Home Warranty?

What is a home warranty?
A home warranty is a one year residential service contract that provides repair or replacement coverage for the major operating systems and appliances that fail in a home due to normal wear and tear.

Guest Author:
Loretta Johnson
First American Home Warranty

Home Buyers’ Benefits :
Move in with assurance knowing your home is covered. You are covered for unexpected home repair or replacement costs on many of your home’s major systems and appliances. Coverage is regardless of the age, make, size or model of the systems or appliances. No “Obsolete Parts Clause”. If it can’t be fixed, we will replace it (*Subject to terms of contract). It only takes a phone call and a small service fee to fix the problem. Service is available 24 hours a day, 365 days a year. You’ll have budget protection knowing you only have to pay a nominal service fee per trade call.

Home Sellers’ Benefits:
Sell with confidence. Having a home warranty as an additional feature will give you a competitive edge over other homes on the market. Buyers have more confidence in your home and there is usually less negotiating in getting closer to your asking price. If something breaks after the sale, there is limited liability for you. Buyers will contact the warranty company rather than calling you. Protect your budget, one major breakdown before or during the sale of your home can very costly and delay things.

A home warranty is just the “life saver” you need to add value and security to resale homes. In today‘s market, sellers and Realtors® alike are looking for ways to bring attention to their properties and something to make them shine over their competition. More and more, buyers are asking for the after sale protection from unexpected breakdowns of the homes major systems and appliances.

Home warranties typically cover major components, such as HVAC systems, plumbing, electrical and hot water heaters to name a few. It is always important to review the brochure for specific coverage details or to call your local representative. Considering the thousands of dollars in items covered by a home warranty, it is a very affordable “safety net” for budget protection, and in fact, a real bargain. Do not buy or sell your home without one, everyone benefits! A First American Home Protection Plan can make buying or selling a home a rewarding experience for everyone involved.

Did you know?
-A customer uses their warranty 2 times on average? If they didn’t have the warranty, then the expense for the repair would be out of pocket.
-In 2006, we saved contract holders over $119 million on their covered systems and appliances.
-Last year, we responded to more than 900,000 service requests.
-Rated “A” Excellent by A. M. Best.
-We have the financial strength to protect their customers.
-We have been providing quality service since 1984.
-13 SEER air conditioning coverage.
-No extra charge for multiple systems.

This "Guest Author" installment was contributed by:
Loretta Johnson
First American Home Warranty
www.homewarranty.firstam.com

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Brandon/Valrico Area Gets Railroaded By Transit Plan

The headline of today's METRO section of the Tampa Tribune reads: "Getting Bay Area's Transit Act Together". Perhaps it should have been: "Regional Transit Workgroup Missed Their Train". The Bay Area has long needed a viable mass transit system not only to ease current congestion, but to be in position to handle future growth. Numerous plans in the past for a true transit system lacked support and never really developed further than "planners" taking a red felt-tip pen to a $3.99 folding map.

This time things seem to be a little different with Governor Crist signing into law the "Bay Area Regional Transportation Authority" (BARTA), as well as Florida's Department of Transportation seeking local plans for routes. A group from 6 counties, formed by Pinellas County Commission Chair Ronnie Duncan, provided the Tampa Tribune with a map, outlining proposed regional rail, bus and ferry routes. If you don't have a subscription to the Tampa Tribune, pick up today's edition on your way home or go to their website and take a look at it.

Alright, so why the title, "Brandon/Valrico Area Gets Railroaded By Transit Plan" you ask? Only 2 options on this map even come close to the Brandon/Valrico/Riverview area. One is an "enhanced" bus line running up Interstate 75, but diverting West towards Tampa before Adamo Drive/Brandon Boulevard. The other is a rail transit line connecting Tampa to Plant City and Lakeland. However, this path really only touches North Brandon/South Seffner on it's way.

The Tribune quotes Duncan as saying, "This is about offering options, we're sitting in traffic more and more, and every year that goes by it gets worse.". Well excuse me, but has he or anyone on his panel ever even heard of Brandon? As a Realtor®, I can't tell you how many times I have been showing a home to a prospective buyer and heard them say, "Oh, gee I don't know. It seems awfully close to the train tracks.", only to hear them say that at the next 4 homes in different communities. I'm sure many others in my profession locally can relate. My point? Brandon, Valrico and Riverview (BranRicoView - catchy, don't you think?) are riddled with existing tracks in use by CSX. How did the planning group overlook that area?

For those of you who aren't aware of just how busy this area has become, let me throw some numbers at you. Below are the DAILY automobile traffic counts for the 3 main roadways leading into/out of the BranRicoView area. (Source: Hillsborough County Transportation website)

Brandon Blvd:
Falkenburg Rd to Lakewood Dr..........99,000
Lakewood Dr to Lithia Pinecrest Rd.....76,200

Bloomingdale Ave:
US HWY 301 to Kings Ave......43,600
Kings Ave to Bell Shoals Rd.....49,800

Lumsden Rd/Causeway Blvd:
Providence Rd to Kings Ave.............47,500
Falkenburg Rd to Providence Rd........68,600

Again, those are DAILY counts...and just for those 3 roads. Keep in mind, these roads bring commuters to the Crosstown Expressway (cough, too little too late, cough) and Interstate 75 (cough, parking lot, cough), where you can now BEGIN your commute. Anyone who has driven in BranRicoView more than once can attest to the number of trail tracks. So the options are there, why not ease congestion and turn the railways into a double positive? Instead of new residents not wanting to be close to noisy tracks, perhaps they would WANT to be close to commuter rail stations.

Let's see...plenty of existing CSX tracks to choose from, the opportunity to reduce traffic in a high volume (growing) area, and offer positive options to tens of thousands of commuters and voters. It makes perfect sense to completely avoid BranRicoView, Tampa's most populated neighbor to the East.

Don't misunderstand me, I am completely in support of an efficient, effective transit system in the Bay Area. I believe it's necessary for the area to become a major player in attracting large companies (and the jobs they would create) and hosting significant national and international events. But a transit plan that doesn't adequately address this densely populated area is flawed, in my opinion.

If you feel strongly enough about future tax dollars being spent on a transit system that ignores the (arguably) most congested part of Eastern Hillsborough County, please contact the Regional Transit Workgroup's founding member, Ronnie Duncan, and politely point out the oversight.

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How Does Your Property Insurance Compare?

While property taxes are the subject of a lot of conversation right now, property insurance has taken a bit of a back seat to it. Those living in Florida will remember that just a year ago many were getting cancellation notices or substantial increases in their annual premiums. Last week Governor Charlie Crist announced the launch of a new state-run website that serves as a starting point to help Floridians find the insurance policy best suited to their needs.

The website is: http://www.shopandcomparerates.com/ and here is how it works. Once on http://www.shopandcomparerates.com/, click on the button at the bottom to compare homeowner insurance rates, then select a county. A box will pop up showing you the cost to insure a fictional house in that county. The list of insurance companies is sorted from the lowest to highest cost. While you can't change the criteria of the "fictional house", it gives you an idea of comparable rates from different companies all in one place. The fictional house the website uses as an example is a five-year-old, concrete block home, with a current replacement value of $150,000, a $500 non-hurricane deductible, a 2 percent hurricane deductible, no claims and no wind mitigation discounts.

To see how your home would compare to what you currently have, you can click on the insurance company's name to get their phone number and website, then contact them with your specific needs.

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Florida Home Inspector Licensing Law

Quick quiz for you. What industry licensing, experience, and educational requirements does Florida Law require Home Inspectors to have. It may surprise you to learn that the answer is ZERO. While Realtors® and other professionals have tried for years to get the State to recognize the need for for such regulations, it is only now that something is being done about it.

Governor Charlie Crist just signed a bill (SB2234) into law that addresses this need. What this law does, is create the groundwork for a program to require licensing of home inspectors, mold assessors and remediators in Florida. Finally gaining enough support to materialize, the Legislature hopes this will "...ensure that consumers of home inspection services can rely on the competence of home inspectors..."

The good news is that this new law will require 120 hours of pre-license education and 14 hours of continuing education every two years. The bad news? The law doesn't go into effect for 3 more years (July 1, 2010). Over the next three years the Department of Business and Professional Regulation (DBPR) will create a program for certification, establish licensing fees and draft rules.

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Phase 1 Of Tax Plan Is Now The Law

On Thursday June 21, 2007 Gov. Charlie Crist signed into law the first phase of property tax reform which means a savings of about 6 or 7 percent to all property owners, including second homes and commercial property.

This is just the first phase, so Florida property owners shouldn't be disappointed on a relatively small first year's savings, estimated to be around $174 - $199. Florida voters will decide in late January, 2008 whether to adopt the second half of the plan.

If passed, the bipartisan law could slash up to $15.6 billion in local property taxes during the first five years. But those reductions would be spread across all classes of property. The Republican-sponsored constitutional amendment, however, could increase the total five-year cut to $31.6 billion, with owners of primary homes benefiting the most.

Critics of the plan (largely made up of Democrats, local officials, and labor unions) say the amendment is flawed for two reasons. First, they feel the amendment would cut too deeply into the budgets of cities, counties and school boards. Second, most of the savings would go to homesteads, which they say already receive substantial tax breaks. Opponents say the plan does not adequately help other residential properties and businesses hardest hit by real estate values that have skyrocketed in the last for or five years..

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