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Don't forget to enjoy the interesting real estate news after this article.


Here are the six most-common reasons why homes don't sell and what you can do about it.  

So, you're in agony because your home has languished on the  market week after week. Here are some culprits that may be  keeping
buyers away in droves.   Has your lawn grown up around that "For Sale" sign? Have the  wasps moved into the lock box on your front door? Did you  just receive an invitation to your real estate agent's  retirement  party?
 If so, chances are your home sale fizzled. 

Your home is overpriced

Optimistic home sellers love to parrot the old adage, "There's a buyer for every home." But they often leave off the qualifier: "at the buyer's price."

The fact is that buyers, not sellers, ultimately determine the market value of a home. You can ask for the moon and set your listing price well above comparable properties in your neighborhood, but at some point it will be up to you, the seller, to accept what the buyer thinks your home is worth.

Overpricing is the most common reason homes don't sell. When you ask an unrealistic price, it sets in motion a process that often works against you. Here's why:

Most real estate agents, and hence most qualified buyers, will see your new listing within 30 days. If it is overpriced by as little as 5%, it will be duly noted and interest in your property will wane, especially if you show no intention of coming off your asking price. You likely already priced out buyers who might have qualified for financing at a more reasonable price. Even if you manage to find a buyer at your inflated asking price, the property may not appraise at that figure and the financing will fall apart.

Your real estate agent may have approved or even suggested the inflated asking price to secure your listing. Conversely, other agents often use overpriced properties like yours to help sell their own listings. ("Here's what they are asking. Now would you like to take a second look at that first house I showed you?")

"If you have a house that really should be priced at $200,000 and you've got it listed at $260,000, you are trying to compete against homes that really are worth close to $300,000 and all of a sudden your home really is not competing well," says Jeri Fisher of Jeri Fisher Real Estate in Missoula, Mont. "You want to compete with what is available out there among homes similar to yours."

If your home remains on the market for too long, agents and buyers may begin to wonder if there are other, perhaps more serious reasons why it isn't selling.

"It becomes shopworn, the same as a jacket hanging in the store week after week," says Fisher. "People are aware that it has been on the market a long time and agents stop showing it."

Your home doesn't 'show' well

Your home is competing against shiny new houses in those pristine subdivisions out in the suburbs with their attractive prices, incentives and community amenities.

Face it: Even the best old house needs a little makeover if it hopes to attract a qualified buyer.

The good news is most of the work will be cosmetic and relatively inexpensive: a new coat of paint, a few attractive window boxes, a thorough cleaning of floors and carpets. Voila! The place may look good enough to reconsider. 

A good real estate agent can advise you on where your time and money are best spent.

"Price and condition are two things that the seller can do something about," says Fisher. "I always give people my 'honey-do' list. I think paint is probably a seller's best friend because it makes things smell fresh and look fresh. If it's time to paint, it's time to paint. It's the best return on investment."

You're in a bad location

Nothing has a greater effect on your home's value than its location. Your humble abode might be worth a king's ransom were it located in Palm Beach, Aspen or San Francisco. It might even jump thousands in value just two streets over in the next (and far superior) school district.

"If you're in one of the higher-ranked schools around here, you're going to add $50,000 to $100,000 to the price of the same house," says Lenn Harley, a broker with Homefinders.com Inc. in Maryland and Virginia.

The point is, location rules in real estate.

If your home's location is less than desirable, your options are somewhat limited. A good real estate agent will do his best to help you accentuate the positive and eliminate the negative of your circumstances, say by using foliage to screen off offensive adjoining properties or dampen traffic noise.

The best way to compensate for a poor location is to reduce your asking price or offer attractive incentives such as seller financing or a lease option with rent credit.

You have a lousy listing agent

Yep, they exist: Real estate agents who mislead, misfire and misbehave.

Their bad advice can cost you plenty in time, money and the sheer hassle of keeping the place show-ready 24/7.

The agent from hell will allow you to overprice your home ("Here's what I can get for you if you list with me!"), not market it properly, fail to screen for qualified buyers, be unresponsive to interest from other agents (if they sell their own listing, they don't have to split the commission) and keep you totally in the dark throughout the process.

What's more, if your agent is abrasive, arrogant or otherwise difficult to work with, other agents may not want the hassle of showing any of their listings to prospective buyers.

You are battling competition or market conditions

We've all heard the terms "buyer's market" and "seller's market." In real estate, market conditions are affected by any number of external forces, some of them predictable (the weather, sort of), some of them unpredictable (the local economy, interest rates, public optimism or pessimism).

In a "hot" or seller's market, homes go fast. Inventory (homes on the market) may be low, meaning less competition for you. Chances are better that you will get your asking price in a hot market; in fact, it is not uncommon to even be offered more than your listing price.

But in a "flat," "cold" or buyer's market, sales slow to a trickle, inventories grow and buyers can find bargains, especially when they know the seller is motivated (i.e., paying on two mortgages).

If you're trying to sell in a flat market, you're not only competing against all that vacant new construction, but against rentals as well. In this case, be prepared to settle for less than top dollar, or wait to sell until the pendulum swings once again in your favor.

You have ineffective marketing

Gone are the days when an agent could simply place your listing with the local multiple listing service, hold a halfhearted open house and wait for another agent to bring forth a buyer.

Today's top performers launch a multilevel marketing plan that includes listing tours for area agents, newspaper and even TV ads, weekend open houses, listing fliers and placements in local real estate publications.

Computers and the Internet also have changed the face of real estate. According to the National Association of Realtors, today more than one-third of all home buyers use the Internet for house hunting. The best real estate agents are computer-savvy. They have your listing in color on their laptops to show clients and communicate frequently via e-mail, a particular boon when working with out-of-town buyers.

Suffice it to say that if your real estate agent isn't listing your home online through the company Web site as well as with the local MLS, you may not be getting the exposure necessary to find a buyer.

"There are those who just put the listing in the multiple and pray it will sell and those that put a lot of effort into marketing their listings," says Fisher. "Unfortunately, with this weird system of compensation we have, they all get paid the same, whether they know nothing or have many years of experience."

ON THE MOVE
According to data just released by the U.S. Census Bureau, 39.8 million U.S. residents moved between 2005 and 2006. The moving rate remained statistically unchanged from 2005 at 14 percent. Nearly half of the reasons given for moving (18.4 million) were housing-related, such as wanting a bigger or smaller house. The West had the highest moving rate (16 percent), followed by the South (15 percent), the Midwest (13 percent) and the Northeast (10 percent). Other findings include: In 2006, nearly one-third (30 percent) of all people living in renter-occupied housing units lived elsewhere a year earlier. The moving rate for people living in owner-occupied housing units was 7 percent. Also, most movers stayed within the same county (62 percent), while 20 percent moved from a different county within the same state; 14 percent moved from a different state and 3 percent moved from abroad. To see the census data, go to: http://www.census.gov/Press-Release/www/releases/archives/mobility_of_the_population/010755.html

PROPERTY TAXES (4/15/08)
To cap or not to cap property taxes, that is the question. The third time may be the charm, or it could be a strikeout, for the proposed state constitutional amendment that the Florida Taxation and Budget Reform Commission is considering today (FAR).

HOUSING RELIEF (4/3/08)
A bipartisan Senate bill to ease the slumping housing market contains $4 billion in grants to local governments to buy and refurbish foreclosed homes, new authority for states to issue bonds to be used to refinance subprime mortgages, a temporary $7,000 tax credit for people buying new homes or properties in foreclosure, and significant tax benefits for builders (FAR).

FORECLOSURES (4/2/08)
Under growing pressure from voters to do something about the nation's foreclosure crisis, top Senate leaders agreed Tuesday to start with a plan that can win the support of both Democrats and Republicans by dropping some controversial ideas, such as allowing bankruptcy judges to change the terms of a homeowner's mortgage (FAR).

MORTGAGES (4/2/08)
The pace of collapsing mortgage companies has slowed this year, suggesting that the crisis has bottomed out and banks have regained their footing, according to data from MortgageGraveyard.com, a journal of failed, ailing and acquired lenders.

2008 FLORIDA LEGISLATURE (3/21/08)
The tax cut that voters will be asked to approve in November will do more than save property owners money. It will force lawmakers to do what they have refused to do for nearly 70 years: modernize sales-tax rules (FAR).

HOMEBUYERS (2/16/08)
Realtors put on a polite face when they talk about the attitudes of today's buyers. It's a buyer's market, they say, citing the backlog of houses on the market. But privately, some Realtors report an increase in the number of buyers who are out of control. Some buyers browbeat sellers at every step in the process. (FAR)

FHA (12/3/07)
According to HUD, 33,000 homeowners have taken advantage of FHASecure, an FHA mortgage created to help homeowners refinance out of costly adjustable-rate subprime loans (FAR).

HOMEBUYING (12/3/07)
For those who share a mortgage, breaking up has gotten even harder to do. Tighter credit standards and a soft housing market mean divorcing couples’ once-routine exit strategies – refinancing a home loan or selling the home – aren’t as easily obtainable (FAR).

MORTGAGES (12/3/07)
A government-backed proposal to freeze mortgage rates on hundreds of thousands of loans made to risky borrowers is a direct response to shifting financial and political realities, analysts say, and a turnaround for the Bush administration. (FAR).


ECONOMY (11/28/07)
Everything will be okay: Rising foreclosures will lead to billions of dollars in lost economic activity next year in major U.S. cities, but homeowners and financial institutions have the ability to contain the effects, according to a report released today.

PROPERTY INSURANCE
More than 13,000 homeowners have used the state’s mediation program to deal with disputed property insurance claims and 400 to 500 new claims come in each month. State officials now say they’ll consider ways to make the system more efficient.

FORECLOSURES (11/13/07)
One step forward; two steps back. Some Florida homeowners facing foreclosure are forced to use the only weapon they’ve got left to keep their home from being sold on the courthouse steps – they declare bankruptcy (FAR).

CONSTRUCTION (11/12/07)
On Friday, Florida homebuilder Levitt and Sons announced that the company and 37 of its subsidiaries filed Chapter 11 bankruptcy, impacting homebuyers who have put down deposits and new homeowners with liens. Construction has stopped, and it’s not yet clear “if or when previously postponed closings on completed homes will occur,” according to the company’s Web site (FAR).

MORTGAGES (11/12/07)
E-Trade Financial Corp. said Friday the value of its holdings of securities backed by home mortgages has fallen significantly, and it expects to take “significant write-downs” in the fourth quarter. E-Trade also disclosed that the Securities and Exchange Commission has opened an “informal inquiry” into issues related to the company’s loan and securities portfolios.

CALL-TO-ACTION (10/17/07)
A Florida House committee approved significant property tax relief yesterday afternoon that creates a 3 percent assessment cap on non-homestead and commercial properties that the state currently offers only to homestead properties. But senators, many unconvinced, now will consider the House’s revisions. To move the initiative forward, FAR issued a Call-to-Action and asks all Realtors to take a minute to contact their senators at (FAR): http://votervoice.net/target.aspx?id=flar:18849791

HOUSING MARKET (10/17/07)
U.S. Treasury Secretary Henry Paulson called for Congress and private mortgage companies to move quickly to help homeowners struggling to pay their mortgages, saying the “housing decline is still unfolding and I view it as the most significant current risk to our economy (FAR).”

PROPERTY TAXES (10/12/07)
Across Florida, 156 cities or towns – 41 percent of 382 reporting municipalities, according to state figures – have decided to defy the state Legislature’s June mandate to lower property taxes by using override options. The surprise? There hasn’t been much backlash from angry residents, either (FAR).

FLORIDA LEGISLATURE (10/12/07)
The Florida Legislature’s special session on the budget ends today and, after a 10-minute break, the special session on property taxes begins. Legislative leaders expect to negotiate a property tax reform deal by the middle of next week, though the new session officially runs through Oct. 29 (FAR).

PROPERTY INSURANCE (11/12/07)
Florida’s persistent battle with insurers over rates and coverage is spreading to other states and could have an effect on insurance customers nationwide.

TAX REFORM (10/12/07)
More than 150 taxpayers told members of the state Taxation and Budget Reform Commission Wednesday at a Fort Lauderdale meeting that stronger action is needed to cut property taxes. FAR President Nancy Riley serves on the state commission, which is studying the current tax system and has the power to place recommendations on the November 2008 ballot (FAR).

MORTGAGE RATES (10/12/07)
Rates on 30-year mortgages edged up slightly this week to an average 6.40 percent following a better-than-expected report on job growth, according to Freddie Mac’s nationwide survey (FAR).

FORECLOSURES (10/12/07)
The turmoil in the mortgage industry also affects renters. A rising number of landlords are falling behind on mortgage payments, which is sending their properties into foreclosure and, in many cases, forcing tenants out of their homes (FAR).

FLORIDA LEGISLATURE (10/9/07)
House and Senate budget leaders finalized an agreement to cut about $1.1 billion in state spending yesterday. It’s slated for a Friday vote that should be just a formality. Now lawmakers can turn their attention to property tax relief and the next special session.

COSTS THROUGH THE ROOF (10/9/07)
Florida has tightened roofing regulations for single-family homes to make them more hurricane proof, requiring homeowners to pay for additional water barriers that prevent leaks. But it costs more money. Roofers estimate that a re-roofing job will likely cost 50 percent more in coastal areas and 20 percent more farther inland. Owners of coastal homes valued at $300,000 or more that were built before March 2002 also must pay for stronger roof-to-wall connections. “We have a terrible problem in the industry right now with unlicensed activity, and we feel this law will lead to an increase in it because people are not going to want to spend this kind of money,” says Steve Munnell, executive director of the Florida Roofing, Sheet Metal & Air Conditioning Contractors Association Inc. Florida Senate Insurance Chairman Bill Posey championed the changes by stressing mitigation as the best way to deal with rising property-insurance premiums. He has said strengthening homes to withstand storms will save homeowners on insurance premiums.

MORTGAGES (10/4/07)
It’s getting more difficult for the self-employed to get a mortgage these days, with some lenders going out of business and many others tightening their standards. But self-employed borrowers can take steps to help their loan qualifications.  Read the full story:
http://www.floridarealtors.org/NewsAndEvents/n3-100407.cfm

PROPERTY TAX REFORM (9/28/07)
The special election on January 29, 2008 will determine whether property owners will have the choice of either maintaining their current “Save Our Homes” annual assessment cap, or changing to a new “super Homestead Exemption”.  Voter approval will be advantageous but a YES vote is not guaranteed. Join our Town Hall Meetings to hear the details on this property tax reform amendment.  John Sebree, FAR Vice President of Public Policy will lead the Town Hall meetings. John will provide details on the new proposed Super Homestead amendment and explain the property tax rollback and revenue cap being placed on local government spending.  Date:  Monday, October 22, 2007 Time:  4 – 5:30pm; 6 – 7:30pmPlace: Harborside Event Center, Downtown Fort Myers 

BURN, BABY, BURN (9/17/07)
About 500 Bay County residents are mad as heck about property taxes and they’re not going to take it anymore. A local group, the Bay Tax Foundation, hosted a burning of TRIM  (truth in millage) notices on Saturday at Big City Fish on 23rd Street in Panama City. The group claims more than 1,000 notices went up in smoke and more than 500 local homeowners signed a petition. County officials meet this week with the Florida Department of Revenue to discuss the problem, but property owners remain angry. One protester says he owns three properties and taxes increased by 40 percent last year. Another protester claims that his photography business doubled in value last year, and he doesn’t know how he can afford the property tax payment.  Source: The News Herald, Panama City, Fla., Andy Meinen, Sept. 16, 2007 

A TAXING EFFECT (9/14/07)
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 (FAR): http://edr.state.fl.us/property%20tax%20study/property%20tax%20study.htm

MORTGAGES (9/4/07)
Ameriquest Mortgage Co., once the nation’s largest subprime lender, will close with barely a whimper after the other assets of its parent company were sold Friday to Citigroup Inc (FAR).

FHA REFORM (9/4/07)
On Friday, Pres. Bush announced FHA changes, called “FHASecure,” to help homeowners avoid foreclosure. NAR praised the move, which it has advocated since early 2007 (FAR).

FORECLOSURES (9/4/07)
While federal lawmakers may agree that something needs done to help Americans out of the subprime mortgage crisis, there’s no consensus on how to stop the foreclosures. The U.S. House and Senate are working on different plans, but neither one appears to be ready for action (FAR).

HOUSING AFFORDABILITY (9/12/07)
Thirty-seven percent of U.S. homeowners with mortgages spend 30 percent or more of their before-tax income on housing – the threshold where the government says a home becomes unaffordable – according to new 2006 Census data. And, in just the one year from 2005 to 2006, 1.5 million additional homeowners with mortgages joined those ranks (FAR).

STATE BUDGET (8/28/07)
Facing the worst budget crunch since 2001, Florida legislators on Monday were told they might need to slash state spending by more than $2 billion over the next two years – the result of the state’s stalled real estate market (FAR).

THE GOVERNOR SPEAKS (8/21/07)
Gov. Charlie Crist plans to attend FAR’s 2007 Convention & Trade Expo this Thursday, Aug. 23 – Super Sales Day – as part of the 8:15 a.m. “Property Tax Forum.” FAR President Nancy Riley and FAR Vice President of Public Policy John Sebree will host the event. Online registration has closed but you may still register at the convention site, the Buena Vista Palace Hotel & Spa. Remember, parking at the hotel will be tight, and plan to arrive early on Thursday if you wish to hear Gov. Crist. Seating is limited and FAR now expects an increase in the number of Realtors registering that morning. For more convention info, go to: http://www.floridarealtors.org/events_landing.cfm?customel_datapageid_1360=18111

FORECLOSURES (8/21/07)
Foreclosure filings rose 9 percent from June to July and surged 93 percent over the same period last year, according to RealtyTrac Inc. But in Florida, foreclosure filings fell 9 percent between June and July, though they’re still up 78 percent in one year (FAR).

HOUSING FORECAST (7/12/07)
NAR issued its latest forecast: A pickup in existing home sales by the end of 2007 with a recovery in 2008. A rebound in new home sales, according to the forecast, will shadow the resale industry, with a turnaround in 2008. Median existing home prices should drop 1.4 percent in 2007 and rise 1.8 percent in 2008 (FAR).

SUBPRIME MORTGAGES (7/17/07)
Continued jitters about the subprime mortgage market boosted U.S. Treasury bond prices on Monday, as worried investors again turned to the safe haven of government bonds (FAR).

DISASTER INSURANCE (7/17/07)
Two U.S. congressmen from Florida continue to push for a national disaster insurance bill, saying their proposal should reduce insurance rates for homeowners. Operated by the U.S. Treasury Department, the program would be similar to the way the federal government uses Freddie Mac to supplement the residential mortgage markets (FAR).


PROPERTY INSURANCE (7/17/07)
Florida officials are considering borrowing as much as $5 billion to make sure the state’s Hurricane Catastrophe Fund will have enough to pay claims in the event of a large hurricane (FAR).


California, Florida, Ohio document largest foreclosure totals (6/18/07)
For the fifth straight month California reported the most foreclosure filings of any state, with 39,659 in May. Florida reported 21,704 foreclosure filings, the second biggest state total. Foreclosure activity in Florida increased 52 percent from the previous month and 144 percent from May 2006, raising its foreclosure rate to one foreclosure filing for every 336 households — fourth highest among all the states (NationalRealtyNews.com).

CITIZENS PROPERTY INSURANCE (6/12/07)
It’s the law: Gov. Crist signed one of his top priorities yesterday, a bill that extends a premium rate freeze for customers of Citizens Property Insurance Corp. and does not allow large insurers to form Florida-only subsidiaries.

PROPERTY TAXES (6/12/07)
Maybe we don’t have a deal. The Florida Legislature’s property tax plan came under fire yesterday from many groups – Democrats firefighters and local governments – but the most painful criticism came from teachers and parents upset at cuts to education. In response, Republican leaders say voters want the record tax cut and will trust lawmakers to restore the money for education (FAR).

PROPERTY INSURANCE (6/5/07)
The state says it approved five new property insurance companies Monday. “There’s no silver bullet, no overnight fix” for Florida’s property insurance woes, says Jonathon Kees, spokesman for Florida’s insurance regulation office. “But this is definitely a turn for the better” (FAR).

PROPERTY TAXES (6/5/07)
Inch by inch, step by step, the Florida Legislature closes in on a property tax reform plan. A select committee meeting yesterday did not agree on the amount of tax to cut, but they did agree on a date to put a final plan before voters – Jan. 29, 2008, during the scheduled presidential primary election (FAR).

PROPERTY TAXES (5/22/07)
The Florida House-Senate committee negotiating a compromise agreement on property tax reform met yesterday. So far, three separate plans appear possible, each with advantages and disadvantages. All plans, however, grant some kind of tax exemption based on a percentage of the property’s value (FAR).

CALL FLORIDA HOME
Homeowners who own a second property in another state – especially those who spend a large chunk of their time in the vacation homes – must properly declare their state of residence to avoid paying income taxes in both states. And it’s vitally important for Florida or retirees from other non-income-tax states who spend much of their time with family in the high-tax state they once called home. Experts urge homeowners to register to vote in their resident state and ensure that driver’s licenses, automobile registrations, federal income-tax returns and financial reports all reflect this address.
Source: Wall Street Journal (05/31/07) P. D6; Dale, Arden
© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688

MORTGAGE RATES (6/12/07)
Time to lock in a mortgage rate? The drop in U.S. government bond prices this past week could cause pain for some homeowners and mortgage shoppers. Mortgage rates closely follow the 10-year Treasury note, and a 30-year fixed-rate mortgage has climbed to 6.61 percent (FAR).

MORTGAGES (5/23/07)
Blamestorming – the process of discussing who’s at fault when something goes wrong – took place in Washington yesterday with mortgage bankers and brokers trading barbs over subprime mortgage troubles. The MBA advocates a mortgage broker licensing system to help weed out scam artists (FAR).

HURRICANES (5/23/07)
Hurricane forecasters expect more tropical storms in the U.S. than normal this season. National Weather Service forecasters said Tuesday they expect 13 to 17 tropical storms, with seven to 10 becoming hurricanes, and three to five in the strong category (FAR).

DO-IT-YOURSELF MOLD TESTS (5/22/07)
Some do-it-yourself mold test kits are a simple and inexpensive way to uncover a mold problem. But choose carefully, as others are a waste of your money, says mold specialist David C. Straus, a professor of microbiology at Texas Tech University. The simplest and most effective tests, he says, are those that rely on a piece of adhesive to transfer a mold sample to a Petri dish filled with a nourishing growth medium. After the mold grows, the user sends it to a lab where it is identified and evaluated. The lab also provides advice on removal. Cost is about $50. Tests that purport to capture mold from the air are not worth the money, Strauss says, because most homes have a significant amount of mold spores that fly in from the outdoors but don’t grow in the house.

Source: The Wall Street Journal, Laura Johannes (05/22/07)
© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688

MORTGAGE RATES (5/18/07)
Rates on 30-year mortgages jumped to an average of 6.21 percent – the highest level in five weeks – as investors expressed disappointment that the Federal Reserve continues to worry about inflation threats, according to Freddie Mac’s weekly nationwide survey (FAR).

PROPERTY MANAGEMENT (5/18/07)
Three consumer and community groups want Gov. Charlie Crist to veto a bill that allows property managers to include a lease clause requiring tenants to pay fees equal to two months’ rent if they move out early (FAR).

SUBPRIME MORTGAGES (5/18/07)
The growing number of mortgage defaults, according to Federal Reserve Chairman Ben Bernanke, won’t seriously hurt the nation’s economy. Bernanke also says that the Fed will do everything possible to crack down on mortgage fraud and abusive lending practices (FAR).

REMODELING (5/14/07)
Strip, sand and polish. Americans will spend nearly $233 billion on home remodeling this year, according to NAHB’s 2007 industry forecast – a 1.9 percent increase from the record $228 billion spent in 2006 (FAR).

MONEY NOW, EQUITY LATER (5/08/07)
Homeowners in Florida, California, New Jersey, Virginia, Illinois, Washington, Colorado, New York and North Carolina who want to extract equity from their home without incurring a monthly payment have access to a debt-free home equity loan from REX & Co. The investment firm – backed by American International Group’s AIG Financial Products unit – will provide the homeowner with cash in exchange for a percentage of the property’s increase in value at the time of resale. REX founder Thomas Sponholtz says the product is geared toward baby boomers with a substantial amount of wealth in their homes. Homeowners would be charged broker fees upwards of 2 percent of the equity extraction and could be hit with “early exit” fees of 5 percent to 25 percent if they unload their properties within five years of the transaction. During the next two years or so, REX anticipates a national launch of the product.

Source: Wall Street Journal (05/08/07) P. D3; Hagerty, James R.
© Copyright 2007 INFORMATION, INC. Bethesda, MD (301) 215-4688

CALL TO ACTION: PROPERTY TAX REFORM NOW (5/1/07)  
If you want to see real property tax reform, it's time to contact the people who represent you in the Florida Legislature. If you wish to re-energize the Florida real estate market for out-of-state buyers and commercial property, your voice of support will count only if you take a few minutes to participate in FAR's Call to Action. With three days left in the regular session, legislators must understand that Florida Realtors expect comprehensive property tax reform now. To send an e-mail directly to the lawmakers that serve your district, visit FAR's Call-To-Action Web page at: http://votervoice.net/target.aspx?id=flar:14642706

COMMERCIAL INVESTMENT (4/16/07)
Skittish investors should think twice before purging their property-related investments because some sectors of the market, such as commercial property, remain strong. Plus, financial planners say that real estate should be a long-term holding in all portfolios.

MULTIFAMILY HOUSING (4/16/07)
The next step for multifamily housing is really a step back, according to homebuilders and industry analysts speaking at an NAHB conference last week in Hollywood, Fla. “Sales, prices and inventory (for multifamily housing) will all continue to decline this year,” says NAHB Chief Economist David Seiders

MORTGAGES (4/11/07)
NAR yesterday encouraged HUD to change FHA program rules to help families facing foreclosure because their ARM rates rose. NAR wants the department to waive a requirement that says a homeowner's mortgage must be “current” in order to refinance into an FHA loan product.

SUBPRIME MORTGAGES (2/28/07)
It keeps getting tougher to qualify for a loan. Freddie Mac, the nation’s second-biggest financer of home mortgages, said yesterday that it will stop buying subprime ARMs, will make more applicants show proof of income, and require borrowers to qualify for a mortgage’s maximum rate – not just the initial “teaser” rate (NAR).

NEW HOME SALES (2/28/07)
New home sales dropped in January by 16.6 percent, the largest amount in 13 years. Sales fell in all parts of the country at a rate higher than economists predicted (NAR).

FCAT COMES TO SW FLORIDA (2/12/07)
The FCAT is designed to test children in grades 3 – 11 for comprehension measurement using selected benchmarks in Mathematics, Reading, Science, and Writing.  If you have questions regarding the FCAT, you can go to the Florida Department of Education’s website: http://www.firn.edu/doe/eias/flmove/lee.htm for additional information.  Furthermore, if you are looking for practice materials you can go to: www.EdHelper.com or www.kids.yahoo.com/learn/index.

PROPERTY INSURANCE (2/8/07)
Allstate and the other insurers that announced rate increases and cancellations within the past week received sobering news from the state yesterday: A recently-issued emergency rule is retroactive and their planned changes are null and void.

ALLSTATE (1/15/07)
Allstate Floridian Insurance Co. announced Thursday that more than 100,000 property insurance customers would be dropped, with affected homeowners offered coverage in another company though not necessarily at the same price. Allstate earlier shed about 200,000 Florida policies.

PROPERTY TAXES (1/12/07)
Property tax relief could be 10 months away. Senate Finance and Taxation Committee Chairman Mike Haridopolos said yesterday that lawmakers could put a property tax relief measure before voters as early as this fall.

PROPERTY INSURANCE (1/11/07)
The Florida House unveiled its insurance reforms yesterday and will introduce them as six separate bills. It's too soon to predict which initiatives will survive, much less find agreement between the House and Senate, but FAR Vice President of Public Policy John Sebree says the House's proposals go "far beyond where we thought they would go in an effort to cut rates for consumers."

FLORIDA'S GOVERNOR (1/3/07)
Charlie Crist formally became Gov. Crist yesterday, pledging the full resources of his office to try to solve the property insurance crisis and backing a constitutional amendment for property tax relief.

DEVELOPMENT (12/15/06)
As real estate cooled this year, teardowns dropped by at least 20 percent nationally, roughly corresponding to the drop in  housing starts, according to NAHB (NAR).

EMINENT DOMAIN (1/17/07)
Florida voters approved strict rules that govern local governments' right to take private property under the state's eminent domain laws, but Hollywood officials plan to test the law by taking land, breaking it down into parcels and giving it to individual homeowners, thereby skirting laws that forbid the city from giving land to a developer.

PENDING HOME SALES (1/15/07)
A stabilization trend in the housing market is likely to continue, according to NAR's latest Pending Home Sales Index. Based on contracts signed in November, the index eased 0.5 percent from its October level to a reading of 107.0 -- 11.4 percent lower than November 2005. NAR notes that the decline from year-ago levels has been steadily narrowing since July.

REAL ESTATE FORECAST (12/13/06)
There's positive news about the real estate market in 2007: Analysts note that interest rates will remain at historically low levels, homebuyers will see more opportunities and, nationwide, home prices will trend upward or remain stable in 2007.

OLDER ADULT HOUSING (12/12/06)
Marketing to older adults? A new UF study looks at the movement of snowbirds and sunbirds (residents who travel north each summer). At the peak of the 2005 winter season, an estimated 818,000 snowbirds traveled to Florida for at least one month; meanwhile 313,000 residents did the same, but in reverse, during the summer.

HOUSING OUTLOOK (12/12/06)
Existing-home sales are expected to rise gradually in 2007 from current levels with annual totals comparable to 2006, while new-home sales will continue to slide, according to NAR's latest forecast. NAR Chief Economist David Lereah believes that inventory supplies are likely to become more balanced in early spring 2007.

PROPERTY INSURANCE (12/11/06)
According to Florida's Democrats, homeowner insurance bills in South Florida could be slashed by as much as 30 percent to 40 percent under their plan, which would create a state-run windstorm company to insure about 80 percent of a home's windstorm damage.

FLORIDA LEGISLATURE (12/4/06)
Gov.-Elect Charlie Crist expressed confidence Friday that  lawmakers would be productive in a special session in January called to address the state's homeowners insurance problem. Crist says he favors some of the goals in a bill prepared by Gov. Jeb Bush's office, including giving homeowners the choice of higher deductibles or foregoing windstorm coverage (FAR).

ENVIRONMENT (12/1/06)
Each day, Florida gains an average of 1,000 residents and loses more than 200 acres of forest, but 10 groups, including UF, water management districts and the Florida Park Service, now intend to pool resources to educate residents about state forests and promote their protection.

MULTIFAMILY HOUSING (12/1/06)
Is it a condo or an apartment? It's difficult to keep score these days.  Developers have stopped converting apartments to condos and many new condo projects are now being converted into apartments. The added inventory should help keep rents flat over the next year or two.

MORTGAGE RATES (11/27/06)
Mortgage rates around the country fell last week, with rates on 30-year mortgages sinking to their lowest level in 10 months -- an average 6.18 percent, according to Freddie Mac's weekly nationwide survey (FAR).

BANK OVERSIGHT (11/27/06)
Lawyers for Wachovia Corp. and a Michigan regulator will face off this week before the Supreme Court in the latest tussle over the oversight of national banks.  If federal oversight wins, many states' rules created to fight predatory lending will become ineffective.

GET A CLUE (11/8/06)
You can avoid nasty surprises by encouraging your homebuyers to review a home's CLUE report, an acronym for ChoicePoint Asset Co.’s Comprehensive Loss Underwriting Exchange history. Based on claims information submitted by insurers to the CLUE database, the report includes dates, types of claims and the amount paid for each claim submitted on behalf of a specific home. If the report shows no losses, a homebuyer can feel confident that no one has filed a fire, flood, windstorm or other claim against an insurer. However, if a claim has been filed, the buyer will know to take an extra-hard look at the area that was damaged. Also, if the report shows that someone has filed a water-based insurance claim for mold, that might be reason enough to move on. A mold claim often makes it difficult for subsequent owners to obtain homeowners insurance; and if they can obtain insurance, it might be extremely expensive. Only the homeowner can obtain these reports, so the buyer will have to ask the seller to purchase one. The report costs $19.50 and can be obtained from the ChoicePoint Web site. Source: United Feature Syndicate, Lew Sichelman © Copyright 2006 INFORMATION, INC. Bethesda, MD (301) 215-4688

PROPERTY INSURANCE (10/26/06)
State regulators denied Florida Peninsula Insurance's request for an average 91 percent rate increase, instead allowing the insurer to raise rates no more than an average 58.7 percent statewide. The Boca Raton-based company must refund any policyholders already charged the higher rate (FAR). 

PROPERTY INSURANCE (10/20/06)
Bombarded with complaints about rising premiums, state lawmakers will take steps to lower homeowners' insurance bills during a special legislative session later this year, according to Sam Miller, executive vice president of the Florida Insurance Council (NAR).

CITIZENS PROPERTY INSURANCE (9/13/06)
Citizens Property Insurance Corp. meets tomorrow and is expected to approve a $163 million assessment to be paid by all Floridians with property insurance to make up for losses incurred from the recent hurricanes -- about $20 more for each $1,000 worth of insurance premium paid.

INSURANCE RATES (9/7/06)
Florida insurance regulators have scheduled four separate public hearings for public comment concerning insurers that have requested rate hikes greater than 15 percent -- Companion Property & Casualty, Vanguard, Omega Insurance and three Tower Hill companies.

MORTGAGE RATES (9/1/06)
Rates on 30-year mortgages fell for a sixth consecutive week, down to 6.44 percent, according to Freddie Mac's weekly nationwide survey. It's the lowest level for 30-year mortgages since the first week in April (FAR).

Cape Coral is 5th Fastest Growing City in the United States
The City of Cape Coral continues to be one of the fastest growing cities in the country according to the U.S. Census Bureau.  The Cape grew at a 5.8 percent clip in the 12-month period ending July 1, 2003.  This places Cape Coral at No. 5 for cities with more than 100,000 people and at No. 10 regardless of population.   Port St. Lucie was the only other Florida city on the list.  Last year, Cape Coral was the 9th fastest growing city, and officials had expected the city to remain in the Top 10 again this year.  Cape Coral grew to 118,737 people by July 1, 2003.  The City estimates that the current population is more than 134,000 residents, and the City is on pace to issue more than 5,000 single-family home permits this year.  On the move (11/04), City of Cape Coral.

MORTGAGE RATES (8/18/06)
Rates on 30-year mortgages dropped -- to 6.52 percent -- for a fourth consecutive week as a slowing economy eased concerns about inflation, according to Freddie Mac's weekly nationwide survey. It's the lowest level since the week of April 13 (FAR).

CONDO INSURANCE (8/18/06)
Because of a change in how their insurance policies are handled, condo associations statewide could see an end to triple-digit increases in their Citizens Property Insurance Corp. premiums. The change could save associations thousands of dollars, and condo owners might benefit, too (FAR).

PROPERTY INSURANCE PAY-AS-YOU-GO (8/15/06)
Shocked by your annual property insurance premium? Wish it was 50 percent less? Or even 75 percent less? Citizens Property Insurance Corp, Florida's insurer of last resort, may fulfill that wish but the results won't save you any money. Rather than face a once-per-year lump sum payment, the insurer may allow homeowners to pay the premium every six months or even quarterly. If confirmed, that option will be available next year; but generally only for owners who don't have a mortgage.

PROPERTY INSURANCE (7/19/06)
In exchange for quick approval of its rate hike request, State Farm Florida Insurance Co. has agreed to a smaller increase than originally sought, though it will still raise premiums an average of 52.4 percent statewide for homeowner insurance customers and 70.2 percent for condo owners. Florida's second-largest insurer will begin collecting the higher premiums on Sept. 15.

MARKET WATCH: SOUTH FLORIDA (7/14/06)
Southwest Florida's housing market is slowing to a more normal pace, according to Orlando-based economist Hank Fishkind, though conditions may feel like a more substantial slowdown because the market has been red-hot for so long (Planet Realtor).

APARTMENT MARKET (7/14/06)
In Las Vegas, Phoenix, San Diego, Washington, D.C., and much of Florida, an estimated 25 percent to 40 percent of condo conversions and newly developed condos will be put back on the market as rentals over the next 18 months, says Marcus & Millichap, a California-based investment brokerage firm (Planet Realtor).  

HOME SALES (6/27/06)
Florida's housing sector in May continued to adjust to changing market conditions, including a greater inventory of homes available for sale in many areas. A total of 18,680 existing single-family homes sold statewide last month, a decrease of 24 percent from a year earlier, according to FAR. Meanwhile, the statewide existing-home median price rose 11 percent to $256,400 (FAR).

PENDING HOME SALES (5/3/06) 
NAR's Pending Home Sales Index, based on contracts signed in March, eased 1.2 percent to a level of 116.2, which is 6 percent below March 2005. NAR Chief Economist David Lereah says that the pending sales data is showing a dampening effect from rising mortgage interest rates (FAR).

HOUSING OUTLOOK (4/28/06)
Florida's housing market probably won't improve in 2006, but the long-term outlook remains promising, NAR Chief Economist David Lereah said Thursday at an event sponsored by the Realtors Association of the Palm Beaches (NAR).

COMMERCIAL (3/27/06)
A new Global Real Analytics report confirms that most commercial property sectors recorded annual price hikes last year. The Pacific/Southwest and Florida Gulf Coast regions generated the highest annual average appreciations, at 13 percent and 12 percent, respectively.

MORTGAGE RATES (3/3/06)
Rates on 30-year mortgages edged down slightly this week to 6.24 percent, the second consecutive weekly decline, according to Freddie Mac's weekly nationwide survey. One-year adjustable rate mortgages moved slightly higher to 5.34 percent  (NAR).

CONSUMER CONFIDENCE (2/28/06)
Nationally, consumers feel less confident in February than economists anticipated, with the Consumer Confidence Index dropping 5.1 points to 101.7. Respondents' attitudes about present conditions actually rose slightly, however, with the drop attributed to much lower expectations for the future (FAR).

PROPERTY TAX PORTABILITY (3/1/06)
Florida's two Republican gubernatorial candidates say they support allowing homeowners who move to take some of their accumulated property tax savings with them, but they differed on a key detail. Charlie Crist endorses statewide "portability," while Tom Gallagher supports portability only for moves entirely within a county, a position shared by FAR (Planet Realtor 3/1/06).

REAL ESTATE INVESTING (3/27/06)
Buying a home is the smartest investment you can make during your lifetime, according to author David Bach. And while experts warn that the market might be overheated, he says it doesn't matter if prices are up or down. Over time, they will likely go up steadily (Planet Realtor).

HOME SALES (2/28/06)
Coming off several years of blistering home sales at a record pace, Florida's housing sector followed the national trend in January and showed signs of market adjustments, with a statewide total of 12,815 existing single-family homes sold for a 19 percent decline. In FAR's first condo resales report, statewide condo sales also slipped, registering an 18 percent decrease from the previous January. Statewide, median prices continued to climb (FAR).

REAL ESTATE DEALS (10/12/04)
Remorse is not uncommon among homebuyers and sellers, according to psychologists and real estate professionals. But the good news is that such regret is usually a short-lived emotion (Planet Realtor).

MARKET WATCH: SOUTH FLORIDA 10/12/04)
The booming housing market in South Florida is beginning to impact the availability of affordable housing for the area's workforce, according to industry analysts. The issue has intensified because local wages have not kept pace with the jump in home prices, which could prove troublesome for South Florida's $178 billion economy (Planet Realtor).

INTEREST RATES (10/12/04)
Many economists and housing officials had predicted a swift economic recovery and higher mortgage interest rates. Surprise: Most homebuyers still can find a 30-year fixed-rate mortgage loan at around 6 percent or lower (Planet Realtor).