Special thanks to Rochelle Herman, “Today with Rochelle” radio 1280 am WTMY for an exceptional live broadcast from the Toronto Congress Center. Our deepest appreciation is extended to all of the presenters who made this seminar such a great success: Carla Rayman, Patricia Tan and Valentina Pippin of Prudential Palms Realty International Divison; Laura McLoughlin, Regional Manager of Moneycorp; Alain Forget, RBC Bank USA; David Altro, Altro & Associates; Sang Park, Ecoterra International; David Smith, Jaymor Group and Garry Levy, Strategic Alliance Financial.

Florida Homes Magazine has an informative radio program each Thursday on “Today with Rochelle,” from 1 to 2 pm, Eastern, on 1280 am WTMY. Going Coastal with Florida Homes Magazine, with your hosts Rochelle Herman and publisher Mike Mattina, can be heard and viewed online at www.WTMY.com. The program offers valuable insight on domestic and international topics relative to the Southwest Gulf Coast Lifestyle and purchasing Florida Real Estate, with an array of guests including attorneys, banking professionals, real estate
professionals and related international real estate specialists.

Housing Snapshot
The first quarter of 2010 offered a tremendous increase in home sales and pending home sales all along the Southwest Gulf Coast, providing increased optimism for the months to come. An increase in median home values for the Sarasota/Bradenton and Naples markets are primary points of enthusiasm that should be noted. Fueled in part by the homebuyer tax credit, the incentives and attractive pricing have buyers poised to purchase.
 

Sun Coast
The numbers continue to remain strong in the Tampa area market, with 1,866 homes sold in April 2010, versus 1573 in April 2009, for an increase of 18.63%. Year-to-date 6,281 homes were sold across all price points versus 5,347 for April 2009, for a 17.47% increase. In all price ranges, homes reflect a sale price of 95% of ask price, an average of 99 days on the market and a reduced overall inventory standing at 7.2 months.

Cultural Coast
Reaching the highest pending sales numbers in the past four years, the 1,160 sales contracts accepted for the Sarasota area market reflected a sense of buyer urgency. April 2010 sales outpaced the April 2009 sales by 50%, while the first quarter of 2010 indicates an 8% increase in the median value of area homes.

Paradise Coast
April 2010 is the second consecutive month that the median closed price has increased in the Naples area market. For properties over $300,000, the median price increased 3 percent from $534,000 in April 2009 to $550,000 in April 2010. Additionally, traditional sales outpaced distressed property sales two to one. Overall sales increased 46 percent in April 2010 over April 2009, while the pending sales of single-family homes $1M to $2M price range increased 200% from April 2009.

Live the Southwest Florida Lifestyle

Contact: Sheryl Vieira, Office 941.926.7000, Cell 941.928.5508

About Prudential Palms Realty and Lakewood Ranch Realty (A Sister Company):

Prudential Palms Realty and Prudential Lakewood Ranch Realty combine top local agents with the latest technology to provide powerful strategies for finding or selling homes. The brokerage has offices servicing Sarasota, Manatee and Charlotte counties with over 250 sales professionals. The companies are independently owned and operated members of the Prudential Real Estate Affiliates, Inc., one of the leading real estate brokerage networks in North America. For more information on Prudential Palms Realty, call 941.926.7000 or visit www.PrudentialPalmsRealty.com or Lakewood Ranch Realty, call 941.907.2000 or visit www.LakewoodRanchRealty.com

CARLA RAYMAN

Originally from Pennsylvania, Carla Rayman moved to Sarasota in 1996. She is a graduate of the University of Pittsburgh with a Bachelor’s degree in communications and special interest in American Sign Language. She has earned the real estate designations: TRC, GRI, e-Pro and CIPS. She currently serves on the following boards and committees:

Florida Realtors Board Directors

Sarasota Association of Realtors Board of Directors and International Council

Greater Sarasota Chamber of Commerce International Business Council

FIABCI

US-Panama Business Council SE Chapter, Board of Directors

President, Sarasota Sister Cities responsible for Sister City relationships in Canada, Scotland, Russia, France, Italy, Israel and China

Carla serves as Director of International Business Development for Prudential Palms Realty in Sarasota, where she works extensively with developers in the Caribbean and Latin America.

About Prudential Palms Realty and Lakewood Ranch Realty (A Sister Company):

Prudential Palms Realty and Prudential Lakewood Ranch Realty combine top local agents with the latest technology to provide powerful strategies for finding or selling homes. The brokerage has offices servicing Sarasota, Manatee and Charlotte counties with over 250 sales professionals. The companies are independently owned and operated members of the Prudential Real Estate Affiliates, Inc., one of the leading real estate brokerage networks in North America. For more information on Prudential Palms Realty, call 941.926.7000 or visit www.PrudentialPalmsRealty.com or Lakewood Ranch Realty, call 941.907.2000 or visit www.LakewoodRanchRealty.com

John Fain, Executive Vice President and Partner of Grapevine Communications, said, “In this daunting ecomony, it is gratifying to receive the highest accolade from our Chamber. We are continuing our unprecedented business growth this year, and fully expect the growth to continue. And, as a small business, thank you Small Business Council for representing us in all aspects of business.” dscape and Extreme Remodelers. Grapevine – Your Award-Winning Creative Agency.

Angela Massaro-Fain, President and Partner of Grapevine Communications, commented “Grapevine is honored by this recognition from the Sarasota Chamber’s Small Business Council. As always, our entire team came together during the past year to provide the highest levels of service to our existing accounts, and to grow the business through new accounts.” In accepting the award, Massaro-Fain thanked “the staff at Grapevine along with the vendors and clients who provide us the opportunity to produce such gratifying and award-winning work.”

Photo Caption: John Fain, EVP, Grapevine Communications; Diane McFarlin, Publisher, Herald Tribune Media Group, Angela Massaro-Fain, President, Grapevine Communications

Grapevine Communications is a full-service, award-winning Advertising, Marketing and Public Relations firm based in Sarasota and serving clients nationwide. For more information Grapevine Communications, contact Tricia Lewis at 941-351-0024 or email tlewis@grapeinc.com.

Members of the Global Network are crucial players in today’s global real estate market. The CIPS designation recognizes members who have achieved the necessary training and experience to work successfully with international clients and properties. To earn the CIPS designation, REALTORS® complete rigorous coursework devoted to learning cultural differences and international business practices. Designees must also prove achievement in international real estate transactions. Nordstrom joins a distinguished society of over 1600 real estate professionals throughout the world who have earned the CIPS designation.

For more information on the CIPS designation, contact the National Association of REALTORS® at 800-874-6500 or visit the Global Network website at www.realtor.org/Global
About Prudential Palms Realty and Lakewood Ranch Realty (A Sister Company):

Prudential Palms Realty and Prudential Lakewood Ranch Realty combine top local agents with the latest technology to provide powerful strategies for finding or selling homes. The brokerage has offices servicing Sarasota, Manatee and Charlotte counties with over 250 sales professionals. The companies are independently owned and operated members of the Prudential Real Estate Affiliates, Inc., one of the leading real estate brokerage networks in North America. For more information on Prudential Palms Realty, call 941.926.7000 or visitwww.PrudentialPalmsRealty.com or Lakewood Ranch Realty, call 941.907.2000 or visit www.LakewoodRanchRealty.com
ATTACHMENT: Photo – H. Nordstrom

Sheryl Vieira
Marketing & PR Manager
PRUDENTIAL Palms Realty
130 North Tamiami Trail I Sarasota, Florida 34236
O 941.926.7000 x.1046 I C 941.928.5508 I F 941.552.1366
prudentialpalmsrealty.com I sherylvieira@prudentialpalmsrealty.com

Anna Aimee White headed the cast as Ginger that also included Elizabeth Ward Land, Christianne Tisdale, Matthew LaBanca, Benjie Randall, and Craig Waletzko. Backwards in High Heels is a celebration of the life and times of Ginger Rogers.

“Our area is very fortunate to have a dynamic array of cultural and live performing arts. We believe in supporting the Asolo as it is such an inspirational and integral part of our community,” said Bruno and Cochrane.

Helen Sosso of Prudential Palms Realty and Prudential Lakewood Ranch Realty has been a board member, and a corporate and Foundation sponsor of The Asolo Repertory Theatre for more than six years.

About Prudential Palms Realty and Lakewood Ranch Realty (A Sister Company):

Prudential Palms Realty and Prudential Lakewood Ranch Realty combine top local agents with the latest technology to provide powerful strategies for finding or selling homes. The brokerage has offices servicing Sarasota, Manatee and Charlotte counties with over 250 sales professionals. The companies are independently owned and operated members of the Prudential Real Estate Affiliates, Inc., one of the leading real estate brokerage networks in North America. For more information on Prudential Palms Realty, call 941.926.7000 or visit www.PrudentialPalmsRealty.com or Lakewood Ranch Realty, call 941.907.2000 or visit www.LakewoodRanchRealty.com

Written by:

Sheryl Vieira
Marketing & PR Manager
PRUDENTIAL Palms Realty
130 North Tamiami Trail | Sarasota, Florida 34236
O 941.926.7000 x.1046 | C 941.928.5508 | F 941.552.1366
prudentialpalmsrealty.com | sherylvieira@prudentialpalmsrealty.com

Generally, your Realtor will be the Team Captain coordinating the responsibilities of the other team members while keeping track of their progress. Your Realtor is the person who will take your calls on nights and weekends. Experienced Realtors are knowledgeable about the different types of neighborhoods, the homes within them and the prices thereof. After asking you a few qualifying questions they should be able to greatly narrow down your search, saving you countless hours of aimless meandering about town in the left lane with your right blinker on.

Once your Realtor finds a home of interest to you he or she will provide you with “comps” (comparable homes that have sold recently). The comps will help you to determine an appropriate price to offer. Keep in mind that home prices are very difficult to determine in this market. If you are obtaining financing, your lender will require an appraisal as part of your loan approval process. If you are paying cash, you may want to hire a licensed local appraiser to make sure you are not over-paying for your home. Your Realtor will also accompany you on your home inspection, request repairs if necessary, and attend the closing.

Although your Realtor is the Team Captain I suggest that you retain an attorney to review your purchase and sale contract before you sign it. In Florida, Realtors are allowed to fill in the blanks on form contracts and addenda. They are prohibited, however, from drafting addenda and explaining the legal issues inherent in your contract. Most attorneys recognize that your transaction is time sensitive and will review your contract within one business day from receiving it. Another possibility is to have your Realtor speak with your attorney prior to drafting the contract. Under that scenario, attorney review wouldn’t be necessary.

I also suggest that you consult a local mortgage professional prior to entering into a purchase and sale contract. Local mortgage professionals know which condominiums present financing challenges and are aware of local closing costs. They will pre-qualify you for the loan program sought. After all, there is no reason to make an offer on a home if you are uncomfortable with the monthly payment and/or closing costs. Your mortgage professional will estimate all costs before you sign. If you intend to obtain a mortgage from your bank which has branches in your home state as well as Florida, ask your Realtor for the name of a local loan officer with your bank instead of applying for the loan out of state. Or, consider using an experienced mortgage broker who has access to loan programs with several banks.

Most buyers hire a licensed home inspector to inspect the home. The inspection occurs shortly after the contract is signed. Your home inspector can arrange for a Wood Destroying Organism Report (Termite), and mold inspection if you desire. If you have a particular concern about a major item such as the roof or HVAC you may wish to hire a licensed contractor to inspect that item in addition to your home inspector because the contractor can give you a repair cost estimate. A home inspector generally cannot.

A land surveyor is hired when necessary to confirm that your home was built in accordance with subdivision and plat set-back lines. Surveys are only required if you are obtaining mortgage financing. Sometimes, a prior survey provided by the seller is sufficient. I do not recommend that you purchase a home without obtaining a survey. Surveys are not required on condominiums and in certain neighborhoods.

It is also important to discuss the cost of hazard, wind, and flood insurance with an insurance agent early in the home buying process. The cost of insurance will effect your monthly payment. Sometimes you will receive a discount by using a company that you have other insurance policies with. Try that first then ask your Realtor, mortgage professional or attorney for a referral.

I mentioned earlier that you should discuss the terms of your contract with your attorney prior to signing it. Also know that your attorney will represent you every step of the way from contract to closing. He or she will even examine the chain of title, issue the title insurance and conduct the closing. Some real estate offices have in house title companies that can conduct your closing. Be advised that the cost to use a title company to conduct your closing is generally no less than the cost to have your attorney conduct the closing. It is true that the in house title company presents a convenience to your Realtor, but a title company cannot represent you.

Alas, the bartender…to suggest a nice bottle of wine to enjoy in your new home!

Written by:

Lauren P. Kohl | Attorney At law

Law Offices of Gibson, Kohl, Wolf &  Hric, P.L.

www.SarasotaClosing.com

]]> http://www.floridahomesmag.com/florida-houses/takes-village-buy-home/feed/ 0 http://www.floridahomesmag.com/personal-finance/life-beneath-palms-jumping-hurdles-buy-florida-property/ http://www.floridahomesmag.com/personal-finance/life-beneath-palms-jumping-hurdles-buy-florida-property/#comments Fri, 30 Apr 2010 16:25:36 +0000 admin http://www.floridahomesmag.com/blog/?p=1017 Scratch a Canadian in the middle of a winter storm and, chances are, he or she will sigh for a place in the sun, often the Florida sun. We’ll gladly trade snow for rain and blizzards for hurricanes. And for those who want to go often or extend their stays, it’s possible to buy a home. Florida realtors report strong interest from Canadians in buying Florida property. “Last year, five out of six of my clients were from Canada,” says Bill Eckler, a realtor with Michael Saunders & Company in Venice, Florida.

Driving our shivering masses to Florida’s sandy beaches and tanning oil huts are interest rates that are still low by historical standards, an abundance of foreclosed properties available at very attractive prices, and, of late, a loonie that flirts with parity with the greenback. Cheap loans, cheap houses and a powerful currency. It seldom gets better than that. However, for foreigners, buying Florida houses or condos is not necessarily a snap. Without sufficient cash to make a purchase outright, a loan is needed. But to wheedle a loan from a local lender can be easier said than done.

At one credit union in south Florida, the answer to making loans to residents of Canada is a straightforward “no.”

“You have to be a member of our credit union. To do that, you have to be a resident of our county,” a loans officer explains at Achieve Credit Union in the inland town ofLargo, not far from St. Petersburg on the state’s west coast. Of course, you can’t be a resident without a home address, so this is the Catch 22 of the game. But there are solutions.

Folks from Canada who arrive either with sufficient cash to purchase or a line of credit arranged in Canada have no problem buying, Mr. Eckler notes. “I tell our foreign buyers that going to their local bank in Canada is easier than going through one of our lenders,” he explains. “The problem with borrowing in the U.S. is that we have a small number of banks that are loaning to foreign nationals.”

Even when they do make loans to foreigners, Florida banks charge extra for what they perceive as increased risk. “The lenders will go up to 70% of value if you have a very good credit score, an international credit report, want between $100,000 and $1.25 million and can put 30% down,” Mr. Eckler explains.

Getting a loan to buy a vacation home in Florida is easy for potential buyers who deal with a Canadian bank that has a presence in the state. Royal Bank, for example, has 83 branches across Florida stretching from just north of Miami to the Panhandle. At any of those branches a client with an established RBC relationship in Canada would be well received, says Derek Serra, Regional Manager for Mortgages for Royal Bank in Toronto. “They treat you like an existing customer.”

“If our clients have an RBC Homeline Plan, which offers a combination of options for lines of credit and mortgages for buying residential real estate, they can get fixed or variable rate plans, as they would in Canada,” Mr. Serra notes. “The Homeline plan is a loan secured against the Canadian property. We could do a loan at the same rates they can get in Canada. If the client has sufficient equity in his Canadian property, he or she could leverage it to buy the Florida property. There would be no property appraisal in Florida, because from our point of view, it would be the customer just deciding what to do with the money available in the credit line.

In operation, RBC allows a customer to borrow up to 80% of the value of the property that is serving as collateral, Mr. Serra says. At present, Homeline loans are at prime plus 50 basis points or 2.75% in total, subject to change at any time, he adds.

RBC also makes conventional mortgage loans in Florida with rates competitive with those in Canada, notes Alain Forget, Director of Cross Border Strategy for RBC Bank in the United States.

Other chartered banks have competitive programs. For example, the BMO Financial Group operates a U.S. subsidiary through its wholly owned Chicago bank, Harris, which offers a program called Canadian Gateway.

It provides loans for residential properties in amounts up to $2 million through Harris branches, essentially providing a Canadian mortgage program for American property. Conventional loans provide fixed and variable rate mortgages, says Paul Gammal, a spokesperson for BMO in Toronto. “Very few U.S. lenders offer this type of Canadian mortgage program,” he says. “It’s a product for Canadian customers of BMO or Harris looking for a residence in the United States.”

TD Bank NA also operates a network of banks in the U.S. and makes mortgage loans at competitive rates available through a network of branches in Florida. “We’d underwrite any mortgage application for a property in Florida based on an established relationship in Canada,” says a TD loan officer at the bank’s mortgage centre in Mt. Laurel, New Jersey. TD offers to give decisions on mortgage applications in just one day or to provide a $500 payment. However, says, the banker, “it’s not often that we have to do that.”

There could be a financial reward for going through the hurdles of buying a Florida home. “Prices remain down from their peak by as much as 60%,” Mr. Forget says. “That’s a bargain for people who want sunshine and a potential profit.”

Written by Andrew Allentuck

Members of the Sarasota Association of Realtors ® sold 555 single family homes and 198 condos in March 2010, a huge jump over March 2009, which saw only 353 single family homes and 128 condos sold. Pending sales, at 1,060, were about 30 percent higher than last March, when only 817 were reported. This statistic is a strong indicator for the next two or three months of sales, as pending sales reflect current buyer activity. This also reflects the continuing push of SAR members in the early spring months to qualify clients for homebuyer tax credits, which expire on April 30 th.

Median sale prices in the Sarasota real estate market were also up in March 2010 for both single family homes and condos. The median sale price for a single family home was $170,000, up 13.3 percent from February’s $150,000, and up 11 percent over last March’s figure of $152,125. For condos, the median price rose to $210,000 from last month’s level of $169,000, a 24 percent increase. Last year at this time, the condo median sale price was $166,750. For the last 12 months combined, the median sale price for single family homes was $162,950, while the median sale price for condos was $190,000.

The level of distressed property sales dropped in March 2010 to 41 percent of the overall market, compared to 47 percent of the overall market in February 2010. This was another encouraging sign as the spring continued to heat up the local housing market. The downward trend in the percentage of short sales and bank-owned foreclosure sales in the Sarasota market, if it continues, would be a harbinger of a market in full recovery, and should bring greater appreciation for the overall median sale prices.

“This was the best month we have had in four and a half years, and the numbers are very encouraging for our local real estate market,” said 2010 SAR President Erick Shumway

“Local Realtors ® have obviously educated their clients on the pending expiration of the homebuyer tax credits, and this has certainly helped promote sales. But we have also seen resurgence in sales across the price spectrum – not just for first-time buyers. Hopefully, the continuing growth in our nation’s economy will propel this market even higher thisyear.” The property inventory level remained steady in March 2010 at 6,342, only slightly higher than February’s total of 6,329 properties on the market. The inventory is still at the lowest level since late summer of 2005.

The months of inventory for single family homes was 7.2 months, the number of months it would take to sell all available homes at the current pace. This was a huge drop from February 2010’s number – 10.6 months – and very near equilibrium. Last year at this time, the months of inventory was 17.1 for single family homes. Once the market reaches the 6 month level it is considered to be in equilibrium between buyers and sellers. For condos, the months of inventory level was 11.8 months, the lowest level in several years, and far lower than the 21.2 months only a year ago.

Delving deeper into the statistics, homes in the lower price ranges have actually entered a “seller’s market,” with the month’s inventory supply at only 4.8 months for homes sold between $60,000 and $70,000 so far in 2010, and only 6.6 months for homes sold between $120,000 and $139,999 in 2010. This is a likely reflection on the homebuyer tax credit of $8,000 for first-time homebuyers.

People aged 18 to 24 are most likely to buy in the next two years, says the survey. Most people who plan to buy are planning to take out a fixed-rate mortgage (44 per cent), although combination mortgages that include fixed- and variable-rate components are also popular at 40 per cent. Seventy per cent will take a mortgage term of five years or longer.

“Canadians seem to be opting for more caution this year and may be factoring in potential rate increases down the road,” says Marcia Moffat, RBC head of home equity financing. “Choosing a combination mortgage can take some of the guesswork out of making a decision between whether it is better to lock in to a longer term or stay in a variable rate.”

Moffat says that “the expectation of higher mortgage rates on the horizon could be motivating buying intentions this year.”

Low mortgage rates continue to fuel the real estate market, but the survey found that 64 per cent of respondents believe that rates will be higher in one year’s time. They are expected to start rising gradually at the end of 2010 and into 2011, but will probably still be near historic lows.

Are prices rising at an out-of-control rate? A recent report by Canada Mortgage and Housing Corp. (CMHC) says that house price increases have not necessarily been as dramatic as they seem in some media reports. “To a large extent, price gains in 2009 reflected a rebound back to levels that prevailed prior to the economic downturn. In particular, measured from the fourth quarter of 2007 to the fourth quarter of 2009, home prices rose 6.5 per cent. This translates to an average annual rate of price growth of less than 3.5 per cent over this period, which is not out of line with average historical rates,” says CMHC.

Many of the media reports rely on average MLS prices as a measure of price increases, but CMHC notes that these numbers are skewed when there’s been a lot of activity in higher price ranges in the most expensive markets in B.C. and Ontario.

Alternative price indexes that take the fluctuations of average house prices into account “strongly suggest that recent developments in home prices have been much less volatile than indicated by average MLS price changes,” says CMHC. “Analysis by the International Monetary Fund (IMF) also suggests that national house prices in Canada are supported by long-term fundamentals.”

Another recent IMF report says that prices are “essentially at long-term equilibrium values,” says CMHC.

Factors expected to cool the housing market going forward include an increase in the number of homes for sale as more listings come on the market; the introduction of Harmonized Sales Tax in Ontario and B.C, which will add new taxes to the cost of buying a home; and new mortgage rules that require some buyers to have a larger down payment to qualify for a mortgage.

RBC says first-time buyers should lock in their interest rate when they apply for a mortgage to avoid the expected increases. It says buyers should “stress test” their mortgage, by figuring out what payments would be required if rates rise, and then determining if the home they want is affordable at that level. Buyers should leave some “wiggle room” to ensure they can comfortably afford their mortgage while enjoying the lifestyle they want.

For homeowners who are renewing their mortgages, RBC suggests taking advantage of early renewal options that lock in the new mortgage rate. Sixty-three per cent of those surveyed said they are taking advantage of low interest rates to pay down more principal on their mortgages. Eighteen per cent used a lump sum payment to pay down their mortgage and 16 per cent were able to double up a mortgage payment.

by Jim Adair