Buying Homes for Cash

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When we talk to our customers and are preparing them to buy in todays market, we always try to explain that there is an unofficial hierarchy in purchase offers based on how they are paying for the property. Using the analogy of the childs’ game “Rock, Paper, Scissors” I offer “Cash, Conventional, FHA”. Home buyers who require financing for their home purchase can struggle to compete against buyers who have offers of all-cash. I go on to explain that in all price brackets South Florida Buyers are offering cash creating a highly competitive, multi bid situation where prices are bid higher then asking sometimes, even among cash buyers vying for the same property.
suitcase of money
Here in town over half the sales are cash! In the last 90 days in Coral Springs,FL 13 homes closed that sold with with VA loans, 50 sold with FHA loans, 64 sold with Conventional loans, and 99 sold for CASH.Having realtors who can creatively write your contract making your offer as strong as possible is a great boost to the buying power of customers using financing. Call Claudio and Robyn Petasne at 954-260-5570, Realtors experienced in buying homes for their clients. Making the most of your assets is both a science and an art that changes with the fluctuating South Florida Real Estate Market. !
Where are all-cash deals are the most prevalent? Cash deals represented 80 percent of home sales in June in Vermont; 58 percent in Nevada; 57 percent in Florida, and 51 percent in New York, according to RealtyTrac. Cash deals represent a very small percentage in Texas, Utah, and New Mexico.

The markets with the most all-cash transactions tend to have a high number of foreclosures and depressed home prices, which attracts investors and private equity firms, according to RealtyTrac. Here in Coral Springs and the surrounding area, 60% of the homes are distressed properties, combination of short sales and foreclosures.

The following 10 metros had 40 percent or more all-cash deals out of the total home sales in June, according to RealtyTrac:
1. Miami/Ft. Lauderdale: 64%
2. Las Vegas: 62%
3. Tampa, Fla.: 58%
4. Detroit: 56%
5. Orlando: 53%
6. New York: 49%
7. New Orleans: 43%
8. Memphis: 43%
9. Jacksonville, Fla.: 42%
10. Atlanta: 42%

So in review, when competing in the market to buy a home, you need realtors that know how to write a great offer, making the most of your financial assets. Claudio and Robyn Petasne are such realtors. Experienced and dedicated to helping you buy a home you will love and an investment that will prosper! If you have a suitcase of cash, that can always help too! Give us a call and see how we can help you. 954-770-6850
writing contract

Source: “Housing markets where cash is king,” CNNMoney (July 25, 2013)

Back to School Savings in Coral Springs Florida with NO TAX WEEKEND

schoolsuppliesRejoice Mom and Dad…Florida’s tax-free holiday for school supplies is back this year, starting Friday August 22, 2013 at 12:01 a.m and ending Sunday at midnight. This year, some new items are on the tax-free list, including personal computers and tablets.

Retailers are planning on bringing in extra staff to help handle crowds and BestBuy, for instance, is extending hours, opening at 8 a.m. instead of 10 a.m. Here in the Coral Springs and Parkland area we have several great shopping areas, Coral Square Mall of course, plus Target on Westview Dr, Super Walmart on Coral Ridge near Heron Bay in Parkland and the new one n McNab Rd. Also several office supply stores such as Staples, Office Max and Office Depot. Best Buy located on Atlantic has extended hours.

School supplies can all add up. The National Retail Federation forecasts that families with school-aged kids will spend $634.78 this year on shoes, clothes and supplies – which is actually down from $688.62 last year.
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Here’s a rundown of what you need to know:
* New items on the tax-free list this year: Personal computers, tablets and accessories, such as keyboards and monitors, that sell for $750 or less.Lawmakers approved the exemption this year after they realizing how important technology is to education.
computer shopping coral springs

* Bonus: The tax holiday applies to handheld gadgets too, so that includes things such as the Apple iPod touch and other MP3 players and E-Readers.
* Sorry: That doesn’t include cellphones, video game consoles, digital media receivers or devices not primarily designed to process data. So, no HDTVs tax-free this time.
* No kids? No problem: The holiday applies to any approved purchases, whether you have a kid or not.
* Apparel: Everything from shirts and shoes (up to $75) to backpacks and hats. Even diaper bags are tax-free during the holiday.
* Supplies: Any school supply-like item up to $15 apiece.
* Upper limit: You can still buy something above that limit, but any dollar spent over the limit becomes taxable.
* Online: You can also order online during that period, tax-free, as long as the retailer is set up to process the transactions. Even if the item won’t arrive for days, as long as you bought it during the holiday period, it should still be tax free.

* Not tax-Free: “Clothing” does not include accessories or equipment such as watches, jewelry, umbrellas, handkerchiefs, or sporting gear.
The state Revenue Estimating Conference has estimated the tax break will cost Florida $28.3 million in revenue this year, with local governments out $6.4 million. The statewide projection is up from a $25.9 million estimate from the 2012 back-to-school period that was also three days

* Details: A full list of eligible items is online at dor.myflorida.com/dor/pdf/sales_tax_holiday_list_of_items.pdf
If you find you need more office space or a bigger kitchen for all that after school study sessions and homework, Call Robyn and Claudio Petasne,954-770-6850 the Coral Springs Realtors with Keller Williams Partners Realty. We can help you find a new home to meet your needs and sell or rent out your current property!

More Renters Buying Homes in Coral Springs

Stat Report July 2013

 

When asked about their highest priority for their future, the majority of renters say home ownership is top.  In a survey from the 2013 National Housing Pulse from the National Association of Realtors (NAR) more renters say they want to buy soon. 51% of renters reported wanting to eventually own their own home. The last survey taken in 2011 was 42%

“Home ownership matters to Americans who consistently realize the many benefits it provides to communities, families, and the nation’s economy,” says NAR President Gary Thomas. “Due to high housing affordability and today’s interest rates it makes sense for people to consider home ownership over renting. In fact, in many parts of the country it’s cheaper to own a home than to rent one. Therefore, it’s no surprise that renters recognize that owning a home offers tremendous long-term benefits and is an investment in their future.”

The survey of 2,000 Americans  found that 80 percent say they believe buying a home is a good financial decision. Sixty-eight percent said now is a good time to buy a home, too. Their main motivations to home ownership: Building equity, wanting a stable and safe environment, and the freedom to choose where to live, the survey found.

Coral Springs is a great example of how more homes are selling, Year to date 606 single family homes have closed in Coral Springs, with another 396 pending.

Meanwhile, the main obstacles to home ownership have remained the same over the years: saving for the down payment, closing costs, low wages, and student loan debt.

Working with a great team of Realtors such as The PetasneReal Estate Team  and using the many great lenders they recommend will help many buyers obtain the home loans they need to purchase their real estate investment.

 

Source: National Association of REALTORS(R)

Coral Springs 5K Rememberance Race

5k

Join us at Coral Springs 911 Remembrance 5K run

Sunday Sept 13, 2013

http://www.walkjogrun.net/events/running/Coral-Springs-5K-9-11-Remembrance-Run-Walk/2099681

Home Prices are Rising, its a Good Time to Sell Your Home!

 

Homes are Selling in Broward County– For the sixth consecutive month Broward County home prices increased in May. The median sales price of condominiums in increased 4.5 percent (22% in Dade) to $78.750 compared to a year earlier, according to the MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose 9.5 percent to $205,500

“Broward home prices have experienced appreciation consistently over the last six months,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “Strong demand for Broward properties continues to fuel this dramatic market strengthening that has yielded limited supply and will result in home prices increasing further.”

In May the average sales price for condominiums in Broward County increased 9% percent to $136,153 The average sales prices for single-family homes rose 9.1 percent to $283,584

Florida Statewide Home Prices
Statewide median sales prices in May increased 8.9 percent to $147,000 for single-family homes and 14.3 percent to $112,000 for condominiums, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The national median existing-home price for all housing types was $182,600 in May, a 7.9 percent increase from May 2011.

Fort Lauderdale Area Home Sales Rise in May
The sales of existing Single Family Homes in Broward increased 9.5 percent in May  to 1251 units, compared to record sales levels in May 2011. Sales of condo’s fell -1.3% to 1517 units, compared to May 2011.

Statewide sales of existing single-family homes totaled 18,723 in May 2012, up 7.5 percent compared to a year ago. Statewide condominium sales totaled 9,995, up 5.4 percent from those sold in May 2011. Nationally, sales of existing single-family homes, townhomes, condominiums, and co-ops decreased 1.5 percent from April and were 9.6 percent higher than they were in May 2011, according to the National Association of Realtors (NAR).

“While international buyers continue to play a major role in boosting the South Florida real estate market, there is also great demand from local and migrating U.S. buyers,” said 2012 MIAMI Association of REALTORS Residential President Patricia Delinois. “Population drives real estate, and Florida, one of the fastest growing states, is set to surpass NY in population by 2020 to become the third most populous state in the nation.”

Months Supply of Inventory Sharply Declines
Over the last year, the inventory of residential listings in Broward  County has dropped 33 percent .. Currently, there are 3-4 months of supply in Broward. Total housing inventory nationally decreased 0.4 percent at the end of May and was 20.4 percent below year-ago levels, which represents a 6.6-month supply at the current sales pace.

Distressed Sales Decrease
Strong demand for bank-owned (REO) properties and improved processing of short sales has resulted in rapid absorption of distressed listings and contributed to price appreciation. In May, 38 percent of all closed residential sales in Broward County were distressed, including REOs (bank-owned properties) and short sales.

International Buyers Fuel Cash Sales
In Broward County, 63 percent of total closed sales in May were all-cash sales, Cash sales accounted for 41 percent of single-family and 81 percent of condominium closings. Nearly 90 percent of international buyers in Florida purchase properties all cash. Nationally, all-cash sales fell to 28 percent in May – from 29 percent

Call us for a Comparable Market Analysis 

and help to market and sell Your Home,

Robyn and Claudio Petasne 954-260-5570

 

Note: Statistics in this news release may vary depending on reporting dates. Statistics reported by MIAMI are not impacted by NAR’s rebenchmarking efforts. MIAMI reports exact statistics directly from its MLS system.

Shop for Insurance Before you Buy your New Home

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State Farm requests insurance increase

TALLAHASSEE, Fla. – June 28, 2012 – State Farm has requested an average increase of 15 percent on its homeowners policies in Florida, its sixth rate hike request in less than three years.   According to an analysis of the request by the Sun Sentinel, the increase, if approved by the Florida Office of Insurance Regulation, would average 14 percent for single-family owners, 49 percent for renters and 27 percent for condo owners.   State Farm says the actual premium cost for a homeowner will vary, however, because it’s also bringing back a handful of discounts. The biggest one – a 10 percent cut in cost – would be granted owners who also use State Farm for their car insurance, for example. The company also says that a homeowner facing a 14 percent price hike could cut it down to 3 percent by opting for a higher deductible.   According to State Farm, it needs permission to raise prices because its “financial position has deteriorated significantly over the past several years.”   The Office of Insurance Regulation has final say over the increase, however. It has a meeting scheduled for July 25 to consider the request.

Citizens Insurance, one of the largest with holdings in Florida is also instituting major rate hikes and possiblly dropping many of their insured due to the high risk and costs of offering coverage in our Hurricane Prone state.

When you are considering purchasing a property the time to think about insurance is before you buy. Contact your insurance agent and discuss the type of property yuor looking for to get estimates on what the insurance will cost. You dont wany any surprises to keep you from moving into the home you desire.

Call me for some client recommended insurance agents. We only recommend agents that have been excellent in their knowledge, service, rates for our past clients. Reach Claudio and I at 954-770-6850

Tax Break for Short Sellers expires Soon!

Since 2007, homeowners whose banks have forgiven unpaid mortgage debt after a short sale, principal reduction or foreclosure have not had to count that money as income on their tax returns.   It’s meant savings of tens of thousands of dollars on the so-called “phantom income” depending on the amount of debt canceled and a person’s tax bracket.   But the Mortgage Forgiveness Debt Relief Act of 2007 will sunset Dec. 31 2012

Accountants and Realtors are urging homeowners considering a short sale to put their properties on the market now so they can sell before year’s end.   A short sale is where the lender agrees to sell a property for less than what the homeowner owes on the mortgage. Banks are getting better at processing short sales, finalizing a contract can still take months

For Example: Bob Homeowner listed his home for a short sale with a good Realtor  after researching the best exit strategy from his underwater mortgage. He quickly had a full price offer of $105,000 and is currently under contract.A successful sale will leave him with $118,000 in unpaid loan debt. If the bank forgives that balance, the money is taxable income. Considering Bob’s tax bracket, he would owe about $29,500 in taxes on that canceled debt. Under the debt relief act, he won’t owe anything.

People selling their homes through a short sale or who are in foreclosure may have the unpaid balance of their loan forgiven by the bank. If so, that debt would be considered taxable income. The Mortgage Forgiveness Debt Relief Act excludes that income from being taxed through Dec. 31, 2012.  If you are considering a short sale, you may want to put your home on the market now so a sale can close before the end of the year and qualify you to take advantage of the debt relief act before it expires.

What’s next?

A bill called the “Homeowners Tax Fairness Act” was filed in March that would extend the tax debt forgiveness program through 2015 if passed. It requires congressional approval.

If you want to find out more about Short Selling your house rather than facing foreclosure and the bankruptcy that often accompanies foreclosure contact us Claudio and Robyn Petasne at 954-260-5570.

As experienced Professional Realtors with Keller Williams Realty we have the knowledge and experience to help you through this financial struggle. Short Selling is a much better option than foreclosure for many reasons.

Please call to discuss how we can help you. You can also get more information at our Short Sale website www.AvoidForeclosureinWestBroward.com

Professional Realtors are your best resource for Avoiding Foreclosure!