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Are Home Warranties Worth It When Selling a Home?

A home warranty pays repair or replacement costs for the mechanical systems and built-in appliances that break down in a home. Warranties can be purchased by either the buyer or seller. When the seller is paying for the warranty, it is usually paid for and goes into effect at closing. The coverage period is normally one year.

There are a lot of companies offering home warranties and coverage of individual policies can vary widely. Usually, central heating and air conditioning systems, electrical, plumbing and major appliances are covered. It’s important that you read the policy closely and understand what is and is not covered.  The cost for a one year home warranty typically runs between $300 and $500, depending on the size of the home and the specific types of coverage.  In addition to the policy premium, there is normally a deductible of $50 – $75 to pay when making a repair claim.   Read more

What About Investment in Tampa Real Estate?

Many people who’ve never invested real estate in Tampa are now thinking about it for the first time, as compared to current trends in Wall Street.  . “Investment real estate” may cover everything from your vacation home at the beach, to apartments, offices, shopping centers, warehouses, and land.  This is a broad subject, and we will approach it in sections, beginning with Housing.

A. Housing.  The bottom line is this: In good times and bad, people need two things above all: A roof over their head and food on the table.  Recent bad news about the housing market does not mention that rental occupancies are up.  In Florida, one often quoted statistic is that 31% of people in Florida live in rental housing. And of course the population  here continues to grow.  In Tampa Bay, rental occupancies have been solidly above 95% for years. We smile when buyers and investors from other parts of the country ask us what the vacancy factor is!

The answer is,  housing is an excellent investment. Nationwide, individual investors and not big corporations  account for the largest percentage of owners. Forty-seven percent (47%) of all rental housing  properties are owned by individuals. Looking at it from the viewpoint of large investors and pension funds, in the period 1984-2004, apartments averaged a 9.3% total annual return on investment, compared to 7.6% for all property types combined.

What about right now?  Any real estate professional will tell you what a great time this is to buy or invest in Florida real estate. While the news media have been emphasizing the down side of things,  1)Prices are more reasonable today, 2)interest rates on mortgages are very attractive, and 3)In Florida, as a Sunbelt State, the future continues to point to strong demand and growth.  While Americans have been wringing their hands over a perceived drop in values, European and South American investors have recognized this as a time of opportunity.  And Tampa Bay has often been singled out as one of the best buys in the country when it comes to rental housing.

How much can I make in real estate? How much do I have to invest?   Unlike other business investments, real estate has several considerations.  First, if it’s property which produces a net income after expenses, it’s making money. The second consideration is that over time, if it is a sound choice, it will likely appreciate in value.  Third, the property owner realizes depreciation and expense deductions on his tax return each year – a possible important consideration if he has other income he wishes to offset.  Fourth, when you sell that real estate investment, you can “roll over” into another like kind property and defer tax liability on your capital gains, by means of Internal Revenue Service Law, in a “1031 Exchange”.

Usually, regardless of the size, you will have to invest 20%-25% of the price, plus closing costs, and can leverage, or mortgage, the rest provided that your credit is good, and that the property has a positive cash flow sufficient to support the debt after expenses. Retail banks may lend on small investment properties, however the most competitive lenders are usually Insurance companies and other institutional lenders.

Each Investor has a different approach, a different motive.  Yours may be Positive Cash Flow after expenses, or Long Term Appreciation. It may be a writeoff for you against other income. Some investors are interested in CAP (Capitalization) Rates. Others want to see Cash-on-Cash returns, or total Return on Investment (ROI). Yet others may want to buy distressed properties and invest “sweat equity’ on repairs and improvements to make the property perform better.  So a combination of factors can influence your returns Your own goals should be examined  so that you can approach this exciting field with a realistic, eyes-open attitude.

Tampa Water Restriction Rule in Effect

So far in 2008, the City of Tampa Water Enforcement Office has written more than 800 water use citations, 355 in the month of May alone. Current outdoor water use restrictions in Tampa, including limits on irrigation to one day per week, have been in effect since May 4, 2006, under Emergency Water Use Restriction Ordinance 2006-104.

Despite sporadic rainfall, the level and flow in the Hillsborough River – Tampa’s primary drinking water source – are still below normal levels. Continued conservation of potable water is needed to ensure adequate water supplies are available.

For those of you who may have forgotten or those new to the area, here is a quick summary of some of the provisions Read more

Attend The Florida Aquarium’s SudsFest 2008

If you live in one of the Channelside condos in Downtown Tampa or happen to be near the Channelside District, this might be an event for you. There’s never been a better excuse to drink like a fish! The Florida Aquarium’s SudsFest 2008, features more than 50 worldly varieties of beer by Anheuser-Busch and delicious food from 16 area restaurants.

Get out of the summer heat and get into the cool! 250,000 square feet of air-conditioned exhibit space with dozens of craft brew style beer and tasty international food pairings. But don’t get too tanked! Save some fun for Father’s Day. Sunday, June 15, dads get free aquarium admission with a SudsFest ticket or a full-priced regular admission to the Aquarium.

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June is National Homeownership Month

June is National Homeownership month. This year’s theme “Back to Basics” – is designed to underscore the importance of having strong, common-sense fundamentals as a way to maintain a sustainable housing market. Many of those basics were ignored in the lead-up to the housing bubble. HUD’s Federal Housing Administration is at the center of the Administration’s efforts to help qualified homeowners refinance into safer, more affordable mortgage products. Over 200,000 families are already using FHA to keep their homes.

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West End Tampa Condos and Townhomes

West End Tampa is a 20 acre master planned, gated community comprised of apartments, condominiums, town homes and retail features. It is centrally located between the region’s two largest business centers – Downtown Tampa (within 1.5 miles) and the West Shore Business District (within 3 miles).

West End Tampa is encircled by major medical centers including Tampa General, Memorial and St Joseph’s hospitals. It is situated among the area’s most desirable school districts and is half a mile from the nationally accredited University of Tampa. The West End Tampa community incorporates architectural sensitivity with ample, open public spaces to create a living environment that is distinctly different from the existing inventory of “Urban Lifestyle” product that are prevalent today.

If you would like to take a tour of this project or just be updated with the latest info, contact us today.

Tampa Homeowners and Businesses Get Ready For Super Bowl XLIII

We all know how the Super Bowl XLIII in Tampa will impact the community. Tampa homeowners and Tampa businesses are asked to support the big event. In 2009, the road to NFL greatness leads to beautiful Tampa Bay and Super Bowl XLIII. Our community is excited to welcome the nation and the world and hope they’ll enjoy our rich history, year-round sunshine, white, sandy beaches and thrilling attractions.

The Tampa Bay Super Bowl Host Committee is now drafting its team of more than 6,000 volunteers to ensure Super Bowl XLIII is a great success.  The official online volunteer application launched online April 1st and within one month, more than 3,000 volunteer had registered. Volunteers will offer more than 100,000 visitors a first impression of Tampa Bay, providing guests with a warm welcome and a helping hand at airports and hotels across the region.  Volunteers will also be needed at NFL Experience, a family-oriented, interactive football theme park that opens the weekend before Super Bowl Sunday.  If you are at least 18-years-old and can work two four-hour shifts the Host Committee wants to hear from you.  The Host Committee will provide all participants with training and an official volunteer uniform.

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Cardel Homes in Country Walk Incentives

If you’re looking for great Wesley Chapel Homes for sale, then look no further than Cardel Homes in Country Walk. Below are great incentives from Cardel Homes’ THE PLATINUM SERIES at COUNTRY WALK. These are their current inventory special.

Starling – 2525 Sq Ft, 3 bedrooms, a den and a bonus room.  Home shows like a model and sits on an incredible homesite. Highlights too numerous to list include all countertops, cabinetry, flooring, fixtures, two tone paint, double pane windows, Central Vacuum system, Radiant Barrier insulation and a whole lot more!
4931 Point O’ Woods
$319,995 READY NOW!

Kingfisher 3 – 3136 Sq Ft, 4 bedroom, 2.5 bath, 3 car garage, over 600 sq ft of bonus room with a media room, and a full wetbar! Upgrades galore makes this waterfront home stand out! This is our most popular model, priced to go now at over $100,000 under market (several recent closings).
4814 Diamonds Palm Loop
$344,995   READY NOW!

Kingfisher 3 – 3136 Sq Ft, 4 bedroom, 2.5 bath, 3 car garage, over 600 sq ft of bonus room with a media room, and a full wetbar! Home has a Full Stone Front and is located on a deep conservation homesite. Read more

Buying bank owned properties in Tampa Florida

There is a lot of interest in buying bank owned properties in Tampa Florida these days. A lot of information, some good and some bad, is floating around about the subject. Often the information offered is for sale, with the promise that you can make a lot of money with little effort once you know “the secret formula”. The fact is that there are no secrets, and to make money does require effort.

Fact: Marc Vitorillo of Schaaf & Vitorillo Realty has been selected by an REO Company in California as an exclusive Real Estate Broker in Tampa to list all their bank owned properties in Hillsborough, Pinellas and Pasco Counties.  Contact us today if you would like to be updated with properties that fit your criteria.

What’s an REO?
REO stands for “Real Estate Owned”. These are now bank owned properties in Tampa that have gone through foreclosure. This is not the same as a property up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO’s may be exempt from normal disclosure requirements, such as a Seller’s Property Disclosure Form, a document that normally requires sellers to tell you about any defects they are aware of. This is due to the fact that the Sellerm, which is now the bank, has never lived in the property.

Is it a bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity for easy money. This simply isn’t true. You have to be very careful about buying a REO if your intent is to make money off of it. While it’s true that the bank is typically anxious to sell it quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, you need to look closely at comparable sales in the neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The bargains with money making potential exist, and many people do very well buying foreclosures. But there are also many REO’s that are not good buys and not likely to turn a profit.

Ready to make an offer?
Most banks have a REO department that you’ll work with in buying a REO property from them. Typically the REO department will use a listing agent to get their REO properties in Tampa listed on the local MLS. Before making your offer, you’ll want to contact either the listing agent or REO department at the bank and find out as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties “as is”, you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process that probably involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.

Florida Existing Home Sales Improve from Previous Month

The existing Florida home and condo sales are in for the month of April 2008 statistics.  Florida Realtors statewide reported an upswing in existing home and condominium sales from March to April 2008, according to the latest housing statistics released by the Florida Association of Realtors (FAR). A total of 11,200 existing single-family homes changed hands in April, a 20 percent increase over the previous month when 9,330 homes sold. Existing condo sales statewide rose 21.6 percent, with 3,900 units sold in April compared with 3,207 condos in March.

The median price for existing condos increased slightly as well during the one-month period. The median price of an existing condo in April was $179,200, up 1.6 percent from March’s figure of $176,300.

In the latest National Association of Realtors (NAR) housing outlook, Chief Economist Lawrence Yun predicts that home sales and prices throughout most of the nation will improve in the second half of the year, especially if access to mortgages backed by the Federal Housing Administration, Fannie Mae or Freddie Mac increases.

In the year-to-year comparison, a total of 11,200 existing homes sold statewide last month while 12,358 homes sold in April 2007 for a decrease of 9 percent, according to FAR. Florida’s median sales price for existing homes last month was $198,900; a year ago, it was $239,000 for a 17 percent decrease. But, looking back to April 2003, the statewide median sales price for single-family homes has increased about 30.9 percent over the five-year-period, according to FAR records – at that time, the statewide existing-home median price was $151,900. The median is the midpoint; half the homes sold for more, half for less.

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