$1 Million - Champagne Wishes & Caviar Dreams? Look What It Can Get Today!

When we relocated to the Tampa Bay area from Atlanta in 2002, we were at the early stage of the amazing journey that would take hold of property value along the beaches of Tampa Bay! At that time, there was no such thing as a condo for a million dollars. That was a price threshold that no one dared to break through. We had listings in the $900,000 range that sat on the market for months... no one was even easily stepping up to that amount.

Then, in late 2004, two things seemed to happen at once. The $1 million threshold was broken through with a vengence AND all of the sudden there were builder's cranes on every corner. Driving down Gulf Boulevard, we often laughed that the new state bird of Florida was the crane! Developers were rushing to create slick promotional packages for new developments and buyers were lined up to take advantage of the early entry deals. It was then that the idea of "flipping" took hold and sometimes a property could be sold and resold several times before it was even built! The buyer that finally closed on the unit upon completion might have paid substantially more than his next door neighbor who was an original buyer.

Over 1000 people were moving to Florida a day, and property values were moving up at such a rate that investors were flocking to buy multiple properties. Add to that the interest only low rate mortgages and 'drive by' appraisals and quickly people got in over their heads... literally without knowing it. In 2006, you could not find any new property on water for under $700,000! And there seemed an endless appetite for those properties at any price. Yet underlying this euphoria was a stream of devastating hurricanes that sent a shock wave through those considering living along the coastline. Simultaneously, property insurance skyrocketed as did property tax. Now those carrying costs grew! Density laws were forcing larger and larger residences and price points continued to climb... $2 million, $3 million. Where was the ceiling?

By the beginning of 2007, the dam was bursting! New complexes that could see the writing on the wall were rushing to get their units closed... and being sure their corporate entities were secure that they would not face the final liability. Complexes that were still under construction found that many of their buyers elected to 'walk' and leave their deposits behind. In some cases, they were the lucky ones.

The buildings built after 2004 all fell under the newer, stronger building codes and after 2005, almost all new construction was block construction rather than frame. The point is that going forward there will be very little inventory that was built in 2008 or 2009... no one was building any more. The savvy buyer today will look for waterfront buildings built in 2005-2007 at 30-40% off their original appraised values!

The Purtee Team knows which buildings should be considered (and which ones have issues)... and can help determine the best opportunity within those buildings. Contact us today to learn more! www.floridagulfproperty.com

High Speed Rail - Impact On Tampa Bay!

As part of the $787 billion federal stimulus plan to generate jobs, The Federal Rail Administration (FRA) has been given an allocation of $8 billion to distribute to states through competitive grants for high-speed intercity passenger rail programs. The first round of applications were due for funding for engineering, construction and program development projects on August 24th. This Friday, October 2nd, marks the deadline for the second round of applications which focus on the actual corridor program.
40 states will file detailed high-speed rail applications with the FRA and in December President Obama will announce which states will be granted funds from the stimulus plan. An additional $5 billion could be allocated to 10 high-speed corridors nationwide. According to the Tampa Tribune, Florida is seeking $2.5 billion and is a leading contender. See full article.

"If Florida gets the $2.5 billion it seeks, it will represent a stunning reversal of political fortunes - after 25 years of promise and setbacks - that will provide thousands of new jobs as early as 2011, when construction on the 95-mile Tampa-Orlando segment could begin. The Florida funding request also covers planning an Orlando-Miami segment that could complete a 361-mile high-speed rail corridor between Tampa and South Florida in 2017."

The advantages that Florida has include the fact that the environmental plans for the Tampa - Orlando corridor are complete, unlike other U.S. corridors. Florida is the ONLY state that has acquired a high-speed rail right of way via the Interstate 4 median, estimated to be worth more than $100 billion!!!

Key Facts:
Speed: Up to 150mph.
Travel Time: Tampa to Walt Disney World - 42 minutes; Tampa to Orlando International airport - 64 minutes.
Annual Ridership: 2.8 - 3.2 million passengers, with trains making 14-22 round trips daily.

Think about the impact of what this would mean to Florida, Tampa Bay and relocation!
Why Tampa Bay? Check out our website: www.floridagulfproperty.com

Remodeling A Home Can Be "Oh So Sweet" or Bittersweet

In this current time of real estate challenge, many are taking on remodeling their homes for two primary reasons: 1) To make it more attractive to compete when selling it; or 2) Deciding to stay put and make the current home more desirable instead of buying a new home.

The problem arises when the small, seemingly manageable project, turns into an expensive nightmare. This came home to us recently when my daughter and son-in-law decided to paint their living room. Easy task, right? Not so much... the contractor who was hired painted OVER the wallpaper after telling them he was a professional and it would not be a problem. Well, as the paper got wet it began to bubble up and the result was a fiasco! So the paper gets pealed off and the imperfections of the wall begin to surface. To texture or not to texture - both paths have issues. Needless to say, the time and the money that eventually poured into this project continued to grow.

It is interesting that just yesterday I ran across an article that might have helped them so I wanted to share it with you. It basically offers 4 steps to avoiding a remodel disaster. If you are considering a remodel job, take a moment to read this article. http://www.bankrate.com/finance/real-estate/4-steps-to-prevent-a-remodel-gone-wrong-1.aspx

• Research before the job starts
• Document everything
• Raise concerns immediately
• Escalate if necessary

As realtors (and homeowners) ourselves, we understand the key remodel jobs that improve the home value. We actually have two places on our website regarding "Preparing Your Home For Sale". There is some good information there, and we are here to help, too! www.floridagulfproperty.com

In Depth Real Estate... And Travel Too?

Florida, and especially the Tampa Bay area, is such a favorite destination for both visiting as well as relocation. The rental properties we have access to, for both corporate and seasonal, are available for review right from our website home page http://www.floridagulfproperty.com/

With so many people considering the area, it made sense to combine a direct travel link right to our website. It is customized for us and is highly price competitive! It makes such a good resource for adding a rental car or booking a flight. We actually have clients who have bookmarked our travel page and use it exclusively for their travel! As you learn more about The PURTEE Team, you will find us constantly seeking ways to make our client's real estate transaction a great experience. We like going beyond their expectations!

Don't get me wrong... we are not sitting at a travel desk like our friend in the cartoon. But we have linked up to YTB which gets its feeds directly from Travelocity, but with more bells and whistles... and with their total support and guaranty. Try it out on your next trip - Click Purtee Team Travel

So relax, we have you covered on your travel and your rental to enjoy while you are here. And perhaps when you see how great it is to be in our area, you will want to find a place of your own.

A member of The PURTEE Team is standing by to help.

Lenders & Short Sales - Time Versus Money?

Since The PURTEE Team represents both buyers and sellers in this trying market, we see the frustration that can arise from a pending short sale transaction. So many banks and a variety of lending sources are back logged with the unprecedented number of foreclosures and pre-foreclosures. It is the pre-foreclosures, or 'short sales' that we are discussing today.

If a property owner has found himself unable to keep up with his mortgage due to economic hardship, or is facing foreclosure, a short sale might be an answer to lessen the blow to his credit and decrease the debt owed on his mortgage. Just because the property has devalued and may now have a market value that is LESS than the mortgage balance not NOT mean that owner automatically qualifies for a short sale.

A property owner has paperwork to fill out (just like when he had to originally qualify for that loan) to literally justify that he can no longer afford to pay to live there. For owners simply wanting to "get out from under" on a certain property, a short sale takes on a different meaning. In this case, the owner takes the loss and has to make up any deficit or shortfall in his mortgage payoff when selling his property... resulting in the owner bringing cash to the closing table.

But let's take the owner who does qualify for a short sale... from Lender to Lender and Transaction to Transaction, the situation changes which can leave both Buyers and Sellers with a sense of frustration.

The various banks and lenders have stacks and stacks of pending transactions that would qualify as a short sale. This basically means that any bank approval of a short sale offer means a loss for the bank, obviously not something they are eager to do. In certain circumstances, the lender may negotiate a payoff with the owner to absorb a part of that shortfall. Here is where being involved in a short sale transaction requires a huge amount of patience. Even at that, things don't always go as planned. Earlier this year, we worked diligently with an owner to try to get a short sale through the lender. In this case, we represented both the buyer and seller. Our buyer had made a reasonable offer and we were trying to get it through the system. What we found was that files were closed without notifying us, negotiators changed and the rules for what they needed with them. The buyer actually increased his bid twice to what was outlined as the number the bank had to have. The first time went nowhere and the second took a full 4 weeks longer to get approved! Although it was grueling, the closing actually took place!

Another short sale had a full price all cash offer at $110,000 and the lender came back and said they needed $4000 more to close. The buyer refused to budge over the full asking price which was justified by the comparable market analysis. At this point, the buyer walked and the lender foreclosed on the property. Want to guess what happened??? The lender paid $45,000 to do the foreclosure and had to eventually bring the property back on the market at $25,000 less than the offer they had in hand!

In the last month, we represented a buyer who had a bid on a short sale property of $915,000 and waited 3 months to get an answer from the bank. He finally brought his offer up to $950,000 and stood firm. Unfortunately, the bank stood firm at $980,000 and wouldn't budge. Now the buyer has lost interest and moved on... leaving the poor owner and lender with no offer at all! Over $30,000. So the bank is facing foreclosing and the possibility of bringing it back on the market at an even lower price!

TIME OR MONEY? One of the great challenges we face is dealing with these lenders that are slow to respond and don't jump at a reasonable offer. Currently, we have several short sales that are in various stages of trying to get bank approval for a viable offer. Our advise to both buyers and sellers... if you don't have the patience to wait it out, don't bid on a short sale. However, if you do and succeed in getting the offer through, it is well worth the wait!

Learn More About Short Sales and Pre-Foreclosures In The Tampa Bay Area

Featured Listings Are Only The Beginning!

As the use of our website (http://www.floridagulfproperty.com/ ) increases... with all of its tools from Free Reports to Daily Real Estate News to Rentals to lots and lots of Community Information... it is easy to understand why our Hot Deals Page and Featured Listings are reviewed most often. The thing that can be overlooked is that these are our client listings, not a selection from the whole market area.

Our listings continue to change, or sell. We keep you up to date with each of them, and move a property to the Hot Deals page when it becomes a pre-foreclosure, short sale or has a particularly motivated Seller. However, we know the market very well and know of deals that might be listed by other agents. We have total access to the entire Tampa Bay real estate market. As part of The Purtee Team, we are constantly searching for clients and keeping up with those special gems of properties that we know are available at an incredible value! For example, we had a client who wanted a condo in a certain new building in Clearwater Beach - but he did not want to pay over $400,000. Condos in that building sold up to the high $700,000's! Through mailings and keeping a close watch on the building, we actually were able to get two clients a purchase in there for just under $400,000. They are thrilled and have made a great purchase!

Refer back to the Exclusive Buyer Program. It really does work and can be an amazing tool in finding just the right property. There is not fee to get this service.

Getting Meaning From The Statistics

As realtors in the Tampa Bay area, we find it critical in today's market to keep a close eye on the statistics. The PURTEE Team has just posted August stats on our website and they are available here: August 2009 Tampa Bay Real Estate Statistics. There is an abundance of information to review and we plan to start posting the month end statistics as soon as they are out. In the meantime, I pulled some additional information worth noting...

Strictly along the beaches I did a comparison of the last 30 days (Aug. 21 - Sept. 21) over the last 4 years.

In 2006, when real estate in this area was at its peak, there were 62 properties sold. Of those sales, the average list price was $720,036 and selling price was $671,492 or 94% of asking price. This represented an average selling price of $425/sq ft.

By 2007, things had shifted. There were 65 properties sold; average list price of $691,364 and selling price of $619,586 or 91% of asking price and average selling price of $360/sq ft.

Well... 2008 had more in store. There were 74 properties sold; but the average list price was now $641,834 and selling price of $563,768 or 90% of asking price and average selling price of $299/sq ft.

So, want to hazzard a guess about this year and this past month's statistics? For 2009, 92 properties have sold. Would you like to know why? How about an average list price of $441,588 and selling price of $394,755 again at 91% of asking price and average selling price of $239/sq ft!!!

Now does this seem like an incentive to take advantage of sales at over 40% off their 2006 high? We are watching closely... average properties sold, average selling price and ratio to list price, as well as the selling price per square foot. If you are watching this market as well to know when to make a purchase, keep up with the news that we offer.

Exclusive Home Buyer Membership Program Added!

As can be imagined, the vast majority of new home buyers to our Tampa Bay area are from non-Florida areas. Canadians flock to Florida to escape their brutal winters, but we have also helped buyers from England, Ireland, France and Germany. Over the past week, upon discussing with other member of The Purtee Team how best to help our non-resident buyers, we came up with the Exclusive Buyer Membership Program. This program is an ideal way for people considering a purchase in the area to know exactly what is on the market that fits their exact criteria. Though our realtor site we are able to be much more specific in a search, unlike the usual search engines provided to the public such as Realtor.com and Trulia.com.

Where it gets really exciting is the capability we have to allow automatic notification of new properties that come on the market, or experience a price reduction, that are custom fit to a particular buyer and their exact needs!

It is so easy and is totally free of charge. We have an extensive questionaire that systematically goes through your "dream list" of what you are looking for. For example, you want a home with a minimum of 4 bedrooms, but you also want a pool, at least a 2-car garage, a fireplace (yes, there are some here in Florida!), built 1995 or later (or renovated), oh yes... and you have a 75lb dog! Maybe you want a specific neighborhood... or perhaps you want to be directly on the beach - or at least a water view. On this form, anything that is not necessarily a question already there can be addressed in the additional comments section. A member of The PURTEE Team actually goes through the entire form and inputs the information into your own buyer profile. Once complete, you are on your way to receiving your property information well before other buyers ever know about it! You are able to move quickly and get that great deal while others are simply wondering how you knew! Simply click on the link and begin your search today.

How Lucky To Be In Tampa Bay!

As the week is about to close and the mind starts to wander toward weekend activities, it truly amazes me at how very much there is to do and see! I always mention that our decision was based on having the rare trio of Tampa, St Petersburg and Clearwater... all within minutes of 23 miles of the most beautiful beaches. So, as the summer crowds have departed and our winter seasonal guests have yet to arrive, you would think things would be quiet.

If you consider (and never take for granted) that Ft Desoto and Caladesi Island, both gorgeous beach national parks, are available year round... as well as all the beach communities in between - there never lacks for water related activities such as fishing, sailing, jet skis, parasailing, waterfront dining and simply beachcombing! YET, there is so much more!!! For example, every Friday night in downtown St Petersburg, there is Wine and Jazz Fest. On Saturday mornings, there is the very popular outdoor market. On the first Friday and third Saturday in Gulf Port (a charming area with great restaurants and ballroom dancing in an old-style casino), they have Art Walk which makes dining and taking a stroll through the outdoor vendors a lesurely and enjoyable outing. Or maybe biking or roller blading the 45 mile Pinellas Trail?

International Mall in Tampa is filled with the finest shops and restaurants. And, of course there is Busch Gardens and Adventure Island. If an outlet mall in on the agenda, Ellenton is about 30 minutes away. We already have our calendars filled with the upcoming free Clearwater Jazz Festival Oct. 15-18. Oh yes... and the International Ironman World Championship in Clearwater Beach in November. And then, we do have 9 Spring Training Teams (including the Yankees and Phillies along with our very own Rays) that will show up in the area for practice... but I guess I am getting ahead of myself!

For now, let's suffice it to say that living in Tampa Bay is incredible! You can be as active as you want, or sit right on the beach to the sounds of the Gulf of Mexico. Oh, and the weather? Highs of high 80's or low 90's and lows in the mid-70's... ahhhh. We really think you should visit soon... but don't be surprised if you decide to stay! We did.

Bernanke - Recession 'Very Likely Over'

With this recession affecting all of us, we are anxiously awaiting signs that the free fall has stopped and recovery is on the way. In a presentation to congress on Tuesday, Ben Bernanke, Chairman of the Federal Reserve, said the worst recession since the 1930's is probably over. That does not mean we can dance in the streets yet... with an unemployment rate of 9.7% and forecasts that it will continue to climb above 10%. (The highest post World War II unemployment rate was in 1982 at 10.8%.) Some economists project that it could take up to 4 years for the rate to move back to the norm of about 5%.

BUT, finally in this 3rd quarter we are seeing the US economy actually grow rather than shrink. Retails sales jumped 2.7% during August... the most in 3 years! At least there is some good news on the horizon that can hopefully keep this generation of Americans from the desperation of the Depression.

Locally here along the beaches of Tampa Bay, although we continue to see devalued properties and an abundance of short sales and foreclosures, the overall inventory has stabilized and has now begun to shrink. We are seeing many sellers choosing to rent out their homes or condos in order to "wait out the market" for a time when their properties will command a higher dollar. The question on the minds of both Buyers and Sellers is whether prices will continue decline or whether the low prices we are seeing today will be gone tomorrow. We are watching the statistics very closely... from average days on the market, to list to sales price ratio, to simply doing searches for buyers that show availability of a certain product at a certain price.

We'll keep you posted...

International Buyers Paying Cash For Homes

As a result of the global economic recession and tightening credit crunch, more international buyers are paying all cash for local US property. For the 12-month period ending in May 2009, an estimated 154,000 homes were sold to foreign nationals, down from 170,000 during the previous 12 months. Nearly half paid cash - bypassing the mortgage process.

The median price for a home paid by foreign buyers for the year ending in May 2009 was $247,100 – higher than the overall national price of $198,100 in 2008. A significant number, 45.8 percent of foreign buyers, paid cash, in part because obtaining a mortgage was more difficult than in prior years. The total dollar volume was $38.7 billion.

U.S. laws do not restrict or scrutinize most property purchases by foreign nationals. There are few barriers to owning property here, unlike transactions in many other countries, although immigration laws prohibit foreigners from remaining in the U.S. continuously for more than six months without a special visa. In addition, international investors are afforded the same property rights as those enjoyed by U.S. citizens. The top five countries of origin for foreign buyers were Canada, with 17.6 percent of buyers; the United Kingdom, 10.5 percent; Mexico, 9.8 percent; India, 8.5 percent; and China, 5.4 percent. The percentage of buyers from Canada, the U.K. and China declined from the previous study, while purchasers from Mexico and India increased.

23% of those purchases were in Florida. The prime purpose for purchasing a property in the U.S. is to use it for a vacation home, cited by 33.9 percent of respondents; for both investment and vacations, 23.5 percent; as a residential rental property for investment, 18.3 percent; and commercial property for investment, 3.5 percent.*

*The 2009 NAR Profile of International Home Buying Activity is based on responses from 3,785 Realtors and describes international home buying activity in the U.S. over the 12-month period from the end of May 2008 to May 2009.

There is a great deal of information available for international homebuyers on our website at www.floridagulfproperty.com You can search our Featured Listings or ALL MLS right from the site. There is also a helpful newsletter on Buying a Vacation Home As a Rental Income Property.

$8000 New Home Buyer Credit Due To Expire In November

Over $1.2 million buyers have taken advantage of the $8,000 new home buyer tax credit since its inception. Of those, 350,000 would not have purchased if not for the tax credit available to them, according to the National Association of Realtors. Currently, the credit is scheduled to expire November 30, 2009.

As the current deadline for the credit looms, potential homebuyers need to complete a contract, satisfy any contingencies, secure financing and go to closing by Nov. 30. In today’s market, NAR estimates that it generally takes between 45 and 60 days from contract to closing.“That means potential homebuyers who qualify must act now, and so must Congress,” says NAR president Charles McMillan.

Directly from our website, you can compare mortgage rates, apply for a loan and find out exactly how much home you can afford in order to take advantage of this credit before it expires. Go to www.floridagulfproperty.com and click on Mortgage Rates or Apply For A Loan.

Retirement Ahead For Baby Boomers?

We are at the new stage in the Baby Boomers' life span where someone is turning 60 every 7 seconds! The challenge is that with the declining economy many baby boomers have seen their retirement plans, from 401K's and IRA's... not to mention home values, decline in value to put what might have imminent retirement ideas on hold while they attempt to recoup. Although there are brave souls who have found a way to profit during this down turn, the vast majority of us have found our overall financial health seriously curtailed. So... does that mean toes in the sand and sunsets over the water are in the distant future?

Not necessarily... We are finding Buyers who have cashed out of the roller coaster of a market and decided to take advantage of some of the amazing real estate bargains that are available here along the Tampa Bay beaches. Their idea is to get a great value, then possibly rent out their property short or long term to defray some of the carrying costs. With the popularity of owner website marketing for rental properties, such as VRBO and the Homeaway network, renting has become a more "hands on" activity. For those who are seriously considering such a move, please refer to our Vacation Rental Property Investment Newsletter for helpful ideas. You can always contact us directly at info@floridagulfproperty.com

Mortgage Rates - Where Are We Headed?

Can anyone find a consensus of people/financial experts who agree on where the mortgage rate trend is headed? We would love your opinion! This article printed yesterday by the Associated Press implies rates will stabilize over the next few months. Although rates are low, mortgages have become harder to qualify for with lenders tightening up their requirements. And what happens when the mortgage to refinance is higher than the current value of the home itself? This "upside down" situation is one many people are facing. The big question is how to deal with it. Take a look at this article and make a comment on what you think the answer might be.

Mortgage rates edge down for 2nd week
Staying close to record lows reached this spring, 30-year fixed-rate mortgages averaged 5.07% this week, says Freddie Mac. Read more.

Come For A Visit, Stay For A Lifetime!

You may wonder about our slogan, "Come for a visit, stay for a lifetime." As 50 and 60 somethings consider where to spend their later years, there is a process to follow. When Mark and I closed our business in Atlanta in 2001, we were in that mindset. First, we spent a long weekend in a little place on Bradenton Beach. We put over 800 miles on our rental car driving along the coast to check out locations! From Naples in the south to Clearwater in the north, we covered it all. The result of that trip is that we were still young and wanted easy access to travel and other lifestyle amenities we had in Atlanta, so the Tampa Bay area seemed to give us exactly that. We were set on the west coast because of the sunsets and chose a rental directly on the beach in Indian Rocks Beach to find out if beach front living was for us... yet not commit to selling our home and bringing all the furniture down until we were convinced.

Before long, our daughter and my mother were visiting more and more frequently. When I emailed a cute little 2-bedroom condo in a beachfront complex, mom called me and said that was the one! (I didn't know she was looking!) She bought the condo and has now been there over 5 years... just loves it. Our daughter Lambdin was next! She bought a condo on the intercoastal and did a remarkable renovation to it. She became a realtor with The Purtee Team and was amazed at how many young people are in the area! She became an active volunteer in the community and member of the Junior League. When we saw her marry on the beach last year, right at sunset, we knew this place was home! Now we have Mark's father in the area, too! One of his brothers is now here frequently as well.

I have two articles to share today...
First-time homebuyers race clock
Just 12 weeks remain for eligible buyers to find and close on a home to qualify for the $8K federal tax credit by Nov. 30. Read more.

Mortgage relief program picking up speed
After a slow start, nearly one in five eligible homeowners have been offered help under the "Making Home Affordable" plan. Read more.

REDINGTON SHORES YACHT & TENNIS 1/2 PRICE SALE!

Every day a wide variety of information gets to us via local and national news, the National Association of Realtors, local Pinellas County statistical information, lender and mortgage rate updates... and, of course, jewels that either come onto the market brand new or are reduced in price to a level that they become irresistable! An interesting article came out yesterday that I would like to share:

Low rates keeping homes affordable
Mortgage applications and refinancings are on the rise; a Bankrate study shows closing costs at 2007 levels. Read more.

BUT, the BIG news is a price reduction in the new Redington Shores Yacht & Tennis Club! A 3 bedroom, 3 bath waterfront condo... 2000 square feet in a gated community built in 2007. Amenities include waterfront pool and hot tub. clubhouse, fitness center and tennis courts along with 24-hour guard gate. When these condos were finished, just 2 years ago, they were appraised in the high $800,000 range. Yesterday, a third floor unit was reduced to $400,000 as a short sale!!! Literally HALF of its value! As is typical with short sales, a buyer has to be patient to get through the lender system. These condos in the yacht club are beautiful and this is a great deal! Click the Hyperlink link to and view this property. Listing link will stay active for 30 days. Call us at 727-490-3556 to learn more about this property or other great buying opportunities RES - Buyer Flyer Report