Wednesday, December 13, 2006
Mortgage Tax Deductions
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PMI paid in 2007 to be tax deductible
WASHINGTON – Dec. 12, 2006 – Homeowners who pay less than 20 percent down must many times pay for private mortgage insurance (PMI), but a law recently passed by Congress makes that cost fully deductible on income taxes starting in 2007. It applies to new loans for households making less than $100,000 per year.
The change also applies to mortgage insurance issued in combination with a Federal Housing Administration (FHA) loan.
Private mortgage insurance is often required of borrowers who don't have down payments of at least 20 percent, and don't take out a second “piggyback” loan. Government insurance is mostly offered through the to borrowers considered too risky for traditional loans programs, usually first-time home buyers. Military veterans also take it out.
“Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don’t have the means to amass a 20 percent down payment,” says Steve Smith, Chief Executive Officer of The PMI Group Inc.
A broad range of consumer, business, taxpayer, civil rights, civic and labor groups have supported the legislation.
PMI paid in 2007 to be tax deductible
WASHINGTON – Dec. 12, 2006 – Homeowners who pay less than 20 percent down must many times pay for private mortgage insurance (PMI), but a law recently passed by Congress makes that cost fully deductible on income taxes starting in 2007. It applies to new loans for households making less than $100,000 per year.
The change also applies to mortgage insurance issued in combination with a Federal Housing Administration (FHA) loan.
Private mortgage insurance is often required of borrowers who don't have down payments of at least 20 percent, and don't take out a second “piggyback” loan. Government insurance is mostly offered through the to borrowers considered too risky for traditional loans programs, usually first-time home buyers. Military veterans also take it out.
“Making the cost of mortgage insurance tax deductible helps those who need it most: low- and moderate-income Americans, primarily first-time home buyers, who are financially responsible but simply don’t have the means to amass a 20 percent down payment,” says Steve Smith, Chief Executive Officer of The PMI Group Inc.
A broad range of consumer, business, taxpayer, civil rights, civic and labor groups have supported the legislation.
Thursday, September 14, 2006
Adjustable Rate Mortgages
8-15-2006 http://www.floridaonlinemortgages.com
“It looks like the worst is behind us and sales are starting to level off”, says David Lereah, chief economist for the National Association of Realtors.
Business Week says, "In addition, rising interest rates are pushing up the payment on adjustable-rate mortgages. As interest rates increase, mortgage payments increase. Between $400 billion and $500 billion in ARMs are due to be reset by the end of 2006. The following year will be even more dramatic, when more than $1.5 trillion will be reset.”
The Wall Street Journal says, “The portion of adjustable-rate mortgages that were at least 90 days past due has climbed 141% in the past year, according to a recent study by Credit Suisse that looked at loans made to borrowers with good credit. That compares to a 27% rise in such delinquencies for fixed-rate mortgages.”
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“It looks like the worst is behind us and sales are starting to level off”, says David Lereah, chief economist for the National Association of Realtors.
Business Week says, "In addition, rising interest rates are pushing up the payment on adjustable-rate mortgages. As interest rates increase, mortgage payments increase. Between $400 billion and $500 billion in ARMs are due to be reset by the end of 2006. The following year will be even more dramatic, when more than $1.5 trillion will be reset.”
The Wall Street Journal says, “The portion of adjustable-rate mortgages that were at least 90 days past due has climbed 141% in the past year, according to a recent study by Credit Suisse that looked at loans made to borrowers with good credit. That compares to a 27% rise in such delinquencies for fixed-rate mortgages.”
Real Estate Search Free at http://www.topteamweb.com
Thursday, March 02, 2006
Hurricane Wilma Adjusters
Hurricane Wilma's victims cope with claims adjusters
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MIAMI-DADE -- March 2, 2006 -- South Florida residents and business owners are struggling with inexperienced claims adjusters to reach amicable settlements, and some of these residents have been so disappointed with the settlement offers that they have filed complaints with the state's insurance regulators.
Those that have insurance through Citizens Property Insurance, the state-run insurer, are unlikely to see adjusters from their insurer -- instead, many of the adjusters helping Citizens with its claims are new to the job or from out of state.
Regulators have received over 3,000 consumer complaints in relation to claims adjusters working for Citizens, and insurers using emergency adjuster point out that it is financially difficult to have a full team of adjusters on staff annually, which is why many are calling in reinforcements when crises occur.
While the adjusters are licensed, they often work for independent adjusting firms and are inexperienced, but those adjusters are also often given a crash course in a particular insurers' procedures and policies regarding insurance claims.
However, many of these adjusters are still unclear about Florida's insurance regulations and laws, which has prompted many of the consumers' complaints. Source: Miami Herald (03/02/06)
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MIAMI-DADE -- March 2, 2006 -- South Florida residents and business owners are struggling with inexperienced claims adjusters to reach amicable settlements, and some of these residents have been so disappointed with the settlement offers that they have filed complaints with the state's insurance regulators.
Those that have insurance through Citizens Property Insurance, the state-run insurer, are unlikely to see adjusters from their insurer -- instead, many of the adjusters helping Citizens with its claims are new to the job or from out of state.
Regulators have received over 3,000 consumer complaints in relation to claims adjusters working for Citizens, and insurers using emergency adjuster point out that it is financially difficult to have a full team of adjusters on staff annually, which is why many are calling in reinforcements when crises occur.
While the adjusters are licensed, they often work for independent adjusting firms and are inexperienced, but those adjusters are also often given a crash course in a particular insurers' procedures and policies regarding insurance claims.
However, many of these adjusters are still unclear about Florida's insurance regulations and laws, which has prompted many of the consumers' complaints. Source: Miami Herald (03/02/06)
Wednesday, March 01, 2006
Interest Rates
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To keep the economy and inflation on an even keel, Federal Reserve Chairman Ben Bernanke will probably boost interest rates on March 28 and perhaps again on May 10, analysts said. Economists believe the Fed's nearly two-year long credit tightening campaign will come to an end this year. The Tampa Bay Florida real estate market will fair better than most other areas.
To keep the economy and inflation on an even keel, Federal Reserve Chairman Ben Bernanke will probably boost interest rates on March 28 and perhaps again on May 10, analysts said. Economists believe the Fed's nearly two-year long credit tightening campaign will come to an end this year. The Tampa Bay Florida real estate market will fair better than most other areas.
Tuesday, January 31, 2006
Real Estate Appreciation - Tampa Bay Florida
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FLORIDA POPULATION GROWTH AND REAL ESTATE APPRECIATION
Between mid 2003 and mid 2004, Florida's population hit 17.4 million making it the Nation's third fastest growing state. The population increased by nearly 400,000 people with an average of 1,090 per day. Florida's growth is being driven primarily by winter weary Northerners and others who are attracted by the warmer weather and tropical lifestyle. Some were planning for retirement and decided to invest in the Tampa Bay market now. Many bought before the boom and have seen their initial buy price increase 25 to 35% per year. Others during that time frame were attracted by cheaper housing and they too have seen substantial price appreciation on their purchase. Some younger people and families relocated for better job opportunities and rented units while they prepared for purchase. This added to the rental income on those that purchased investments to rent.
INVESTMENTS COMMENT- KNOWLEDGE IS YOUR POWER
We are all familiar with the "Dot.com" Internet Stocks Bubble. It reached a plateau and came falling down....then settled and after years...a few have slowly begun to rise....but not near the astronomical heights previously.
FLORIDA BUSINESS CLIMATE STATISTICS
Florida is one of the Nation's Top 10 Business States in 2005 according to a recent national study. The ranking considered 26 factors. It means that Florida is among the best places in the nation for conducting and succeeding in business because of it's progressive pro business policies, a quality workforce and a positive economic environment. The Nation's five best performing central business districts over the next two years will be Tampa Florida, Miami Florida, Orlando Florida, Oakland California and Orange County California. Florida is also projected to turn in a good showing among suburban business markets in such regions as Pinellas County Florida and Palm Beach County mainly because of while collar job growth.
FLORIDA POPULATION GROWTH AND REAL ESTATE APPRECIATION
Between mid 2003 and mid 2004, Florida's population hit 17.4 million making it the Nation's third fastest growing state. The population increased by nearly 400,000 people with an average of 1,090 per day. Florida's growth is being driven primarily by winter weary Northerners and others who are attracted by the warmer weather and tropical lifestyle. Some were planning for retirement and decided to invest in the Tampa Bay market now. Many bought before the boom and have seen their initial buy price increase 25 to 35% per year. Others during that time frame were attracted by cheaper housing and they too have seen substantial price appreciation on their purchase. Some younger people and families relocated for better job opportunities and rented units while they prepared for purchase. This added to the rental income on those that purchased investments to rent.
INVESTMENTS COMMENT- KNOWLEDGE IS YOUR POWER
We are all familiar with the "Dot.com" Internet Stocks Bubble. It reached a plateau and came falling down....then settled and after years...a few have slowly begun to rise....but not near the astronomical heights previously.
FLORIDA BUSINESS CLIMATE STATISTICS
Florida is one of the Nation's Top 10 Business States in 2005 according to a recent national study. The ranking considered 26 factors. It means that Florida is among the best places in the nation for conducting and succeeding in business because of it's progressive pro business policies, a quality workforce and a positive economic environment. The Nation's five best performing central business districts over the next two years will be Tampa Florida, Miami Florida, Orlando Florida, Oakland California and Orange County California. Florida is also projected to turn in a good showing among suburban business markets in such regions as Pinellas County Florida and Palm Beach County mainly because of while collar job growth.
1031 Real Estate Exchange
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Four Concepts to Understanding a 1031 Exchange
An IRS Section 1031 tax deferred exchange is both a complex technique and a simple set of concepts. The complexities of a 1031 exchange come from having to follow an intricate set of rules found in the IRS tax code and the regulations that further explain those rules. The simplicity of an exchange can be explained by reviewing a set of four basic concepts. The premise of a 1031 exchange is based on “relinquishing” a property and acquiring a replacement property following a set of rules and guidelines provided by the IRS. Done correctly and following all the rules, a taxpayer may save payment of taxes. The underpinnings of an exchange are based on the continuity of ownership interest in real property. That is, if a taxpayer sells or “relinquishes” a property and receives replacement property, following all required steps, the IRS will look at that sequence of transactions as if the taxpayer never really got rid of a property. It is as if he or she continued to own real estate the whole time. Here are details: 1. Tax Strategy – The major motivation of an investor in considering a 1031 exchange is to keep from paying capital gains taxes on the sale of an investment property. The current capital gains tax rate is 15% for long term gain (profit). While this rate seems low, there is more to the equation. For improved property (rental houses, commercial property, etc.) accumulated depreciation deductions must be recaptured and taxes will be due at a rate of 25%.
Finally, there is a state level tax. In Georgia, the taxpayer will owe 6% on the profit (appreciation) as well as 6% on the depreciation recapture.
For example: Assume an investor purchased a rental house for $100,000, and held it for a number of years with total depreciation deductions of $40,000. If the property were to be sold for $200,000, the investor could have a tax liability of over $33,000. 2. Replacement property – To keep from paying $33,000 or more, the sale of the first rental property must be linked through specific documentation to the purchase of replacement property. In acquiring replacement property, the investor must comply with the basic premise that this tax code section applies to “property held for investment or for use in a trade or business”. Typically, the phrase "like kind" is used when describing replacement properties. Any kind of real estate would be considered like kind as long as it was held for investment. 3. Time requirements – The IRS provides two very specific time constraints for completing a 1031 exchange. From the day the relinquished property is sold, the investor has a total of 180 days to acquire replacement property. The 180-day replacement period is similar to the now repealed primary residence “2 year rollover rule” which allowed homeowners to defer gain on the sale of a residence if they bought a replacement within the prescribed time period. The second and tougher rule to follow is the Identification Rule that requires investors to choose one or more replacement properties. These target properties must be listed in writing on a Target Identification Letter by the 45th day following the close of the first property. The target ID letter is held by the facilitator known as a “qualified intermediary” to comply with IRS requirements. 4. Equal or greater value – The last concept for a successful totally tax deferred exchange is acquiring property with a value equal or greater to the value of the property being sold. There are two components to this rule. First, all of the equity or cash from the first property must be “spent” on acquiring the replacement property or properties. Second, the total value of replacement property must equal or exceed the value of the relinquished property. If there was mortgage on the first property, generally the equal or greater requirement simply means that the taxpayer will get a mortgage on the replacement property in an amount equal to or greater than the original debt. In summary, the key concepts in a tax deferred exchange involve the following – (1) saving federal and possibly state capital gains taxes on the sale of investment property by (2) acquiring replacement property of a like kind within (3) a time period of 180 days after properly identifying replacement property within 45 days and (4) spending the equity forward on property of equal or greater value. John Mangham, CPA
Four Concepts to Understanding a 1031 Exchange
An IRS Section 1031 tax deferred exchange is both a complex technique and a simple set of concepts. The complexities of a 1031 exchange come from having to follow an intricate set of rules found in the IRS tax code and the regulations that further explain those rules. The simplicity of an exchange can be explained by reviewing a set of four basic concepts. The premise of a 1031 exchange is based on “relinquishing” a property and acquiring a replacement property following a set of rules and guidelines provided by the IRS. Done correctly and following all the rules, a taxpayer may save payment of taxes. The underpinnings of an exchange are based on the continuity of ownership interest in real property. That is, if a taxpayer sells or “relinquishes” a property and receives replacement property, following all required steps, the IRS will look at that sequence of transactions as if the taxpayer never really got rid of a property. It is as if he or she continued to own real estate the whole time. Here are details: 1. Tax Strategy – The major motivation of an investor in considering a 1031 exchange is to keep from paying capital gains taxes on the sale of an investment property. The current capital gains tax rate is 15% for long term gain (profit). While this rate seems low, there is more to the equation. For improved property (rental houses, commercial property, etc.) accumulated depreciation deductions must be recaptured and taxes will be due at a rate of 25%.
Finally, there is a state level tax. In Georgia, the taxpayer will owe 6% on the profit (appreciation) as well as 6% on the depreciation recapture.
For example: Assume an investor purchased a rental house for $100,000, and held it for a number of years with total depreciation deductions of $40,000. If the property were to be sold for $200,000, the investor could have a tax liability of over $33,000. 2. Replacement property – To keep from paying $33,000 or more, the sale of the first rental property must be linked through specific documentation to the purchase of replacement property. In acquiring replacement property, the investor must comply with the basic premise that this tax code section applies to “property held for investment or for use in a trade or business”. Typically, the phrase "like kind" is used when describing replacement properties. Any kind of real estate would be considered like kind as long as it was held for investment. 3. Time requirements – The IRS provides two very specific time constraints for completing a 1031 exchange. From the day the relinquished property is sold, the investor has a total of 180 days to acquire replacement property. The 180-day replacement period is similar to the now repealed primary residence “2 year rollover rule” which allowed homeowners to defer gain on the sale of a residence if they bought a replacement within the prescribed time period. The second and tougher rule to follow is the Identification Rule that requires investors to choose one or more replacement properties. These target properties must be listed in writing on a Target Identification Letter by the 45th day following the close of the first property. The target ID letter is held by the facilitator known as a “qualified intermediary” to comply with IRS requirements. 4. Equal or greater value – The last concept for a successful totally tax deferred exchange is acquiring property with a value equal or greater to the value of the property being sold. There are two components to this rule. First, all of the equity or cash from the first property must be “spent” on acquiring the replacement property or properties. Second, the total value of replacement property must equal or exceed the value of the relinquished property. If there was mortgage on the first property, generally the equal or greater requirement simply means that the taxpayer will get a mortgage on the replacement property in an amount equal to or greater than the original debt. In summary, the key concepts in a tax deferred exchange involve the following – (1) saving federal and possibly state capital gains taxes on the sale of investment property by (2) acquiring replacement property of a like kind within (3) a time period of 180 days after properly identifying replacement property within 45 days and (4) spending the equity forward on property of equal or greater value. John Mangham, CPA
Florida Economic Incentives
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Governor Bush proposes economic incentives
TALLAHASSEE, Fla. -- Jan. 31, 2006 -- How shall the state grow? Gov. Jeb Bush announced his favored economic development incentives, part of his proposed FY 2006-2007 budget, yesterday. He has requested a total investment of $630 million.
“This significant state investment in Florida’s economy will create new jobs and foster growth of technology industries that yield high returns,” says Bush. “Hard-working Floridians have created a booming economy, and we must capitalize on Florida’s surplus of tax revenue by investing in once-in-a-lifetime opportunities that will grow our economy for the future.”
Bush's recommendation includes:
$75 million in tax credits for the new Florida Capital Formation Program. The program will offer tax credits to attract early stage venture capital for start-up companies in Florida. Private investors and lending institutions use the tax credits as an incentive to raise capital for investment in emerging enterprises in Florida.
$50 million to expand Florida’s Quick Action Closing Fund that allows the state to offer a cash incentive to companies considering Florida as the location for their business. The fund helps Florida compete with other states and nations to attract high-wage, professional jobs.
$17 million to support business development and increase commercial space transportation.
$200 million to create and fund the 21st Century Technology, Research and Scholarship Enhancement Act
$100 million to create and expand Centers of Excellence, which allow state universities and their research partners to attract public and private dollars to support emerging research and development projects.
$100 million to create the World Class Scholars Program, which attracts leading researchers to Florida universities. Funds may be used for incentives, including building labs, providing high-tech equipment or funding support staff.
$55 million to secure Florida’s position as a leader in the Space and Aeronautics industry; $35 million to recruit the replacement for the Space Shuttle -- the Crew Exploration Vehicle; and $3 million in tax relief for the space and defense industry.
$250 million to create the Florida Innovation Incentive Fund, designed to enable Florida to take advantage of unique opportunities that will yield a significant return for the taxpayer in the long-term.
Governor Bush proposes economic incentives
TALLAHASSEE, Fla. -- Jan. 31, 2006 -- How shall the state grow? Gov. Jeb Bush announced his favored economic development incentives, part of his proposed FY 2006-2007 budget, yesterday. He has requested a total investment of $630 million.
“This significant state investment in Florida’s economy will create new jobs and foster growth of technology industries that yield high returns,” says Bush. “Hard-working Floridians have created a booming economy, and we must capitalize on Florida’s surplus of tax revenue by investing in once-in-a-lifetime opportunities that will grow our economy for the future.”
Bush's recommendation includes:
$75 million in tax credits for the new Florida Capital Formation Program. The program will offer tax credits to attract early stage venture capital for start-up companies in Florida. Private investors and lending institutions use the tax credits as an incentive to raise capital for investment in emerging enterprises in Florida.
$50 million to expand Florida’s Quick Action Closing Fund that allows the state to offer a cash incentive to companies considering Florida as the location for their business. The fund helps Florida compete with other states and nations to attract high-wage, professional jobs.
$17 million to support business development and increase commercial space transportation.
$200 million to create and fund the 21st Century Technology, Research and Scholarship Enhancement Act
$100 million to create and expand Centers of Excellence, which allow state universities and their research partners to attract public and private dollars to support emerging research and development projects.
$100 million to create the World Class Scholars Program, which attracts leading researchers to Florida universities. Funds may be used for incentives, including building labs, providing high-tech equipment or funding support staff.
$55 million to secure Florida’s position as a leader in the Space and Aeronautics industry; $35 million to recruit the replacement for the Space Shuttle -- the Crew Exploration Vehicle; and $3 million in tax relief for the space and defense industry.
$250 million to create the Florida Innovation Incentive Fund, designed to enable Florida to take advantage of unique opportunities that will yield a significant return for the taxpayer in the long-term.
Friday, January 27, 2006
Investments 101
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No one can honestly predict the future. We never did and never will, even in this very hot market. We only use past performance as an indicator of future projections. On occasion, there may be an annual renter using a unit on the market. We can then run those annual projection figures more accurately. Sometimes the unit was never rented and only bought for price appreciation. We then look at comparable units that have a rental history and make comparisons. Remember, no one can guarantee the amount of renters and the rental income for any particular unit or it's price appreciation in the next two or three years.This has been a very satisfying ride for investors.
You've probably experienced a solid improvement in your real estate market for the past 2 to 5 years. Many ask us, "How long will this rise continue?" When it comes to answering that question honestly, I remember Alan Greenspan calling the stock market "Irrational Exhuberance" It took over a year for his prognastication to fulfill itself. I can't say with certainty that I have all the answers for you. But I can tell you that I see some things happening in the marketplace that propel me and my partners to pay close attention to.I've been Realtor for over 20 years, combining my partners - we have over 100 years experience. In market upswings, people sometimes get a little dizzy counting their future profits. No one can say for sure where the real estate market is headed, but when the market is inundated with so many people thinking that all they have to do is purchase any property and they'll make easy money on the appreciation, this could be a warning sign. It even more important now for investors to exercise caution and work with experienced buyers agents.
Despite the fact that home prices in the United States have achieved record levels, the percentage of people's equity in their homes has never been lower. While people have been experiencing record levels of appreciation in their homes, they've also been taking the equity out through lines of credit and second trust deeds for both living and other expenses, too. While people have been stretching to afford the home they want at these current prices, many of them have also been financing their loans with variable interest rates. If and when interest rates go up, these people will be caught making much higher mortgage payments than they are right now. And some of these homeowners got into their loans at artificially low "teaser" rates, too, meaning that their interest rate will be increasing in the months and years ahead even if market interest rates remain the same. But if interest rates go up, these people will get hit with both the increase they knew was coming, plus another increase in their variable rate because of the changing market conditions.
Some real estate appraisers have been publically stating that they're under pressure to justify continued higher prices in their appraisals, and the government is now demanding answers from some. If they put pressure on appraisers to be more conservative it could begin to curb a hot real estate market.
No one can honestly predict the future. We never did and never will, even in this very hot market. We only use past performance as an indicator of future projections. On occasion, there may be an annual renter using a unit on the market. We can then run those annual projection figures more accurately. Sometimes the unit was never rented and only bought for price appreciation. We then look at comparable units that have a rental history and make comparisons. Remember, no one can guarantee the amount of renters and the rental income for any particular unit or it's price appreciation in the next two or three years.This has been a very satisfying ride for investors.
You've probably experienced a solid improvement in your real estate market for the past 2 to 5 years. Many ask us, "How long will this rise continue?" When it comes to answering that question honestly, I remember Alan Greenspan calling the stock market "Irrational Exhuberance" It took over a year for his prognastication to fulfill itself. I can't say with certainty that I have all the answers for you. But I can tell you that I see some things happening in the marketplace that propel me and my partners to pay close attention to.I've been Realtor for over 20 years, combining my partners - we have over 100 years experience. In market upswings, people sometimes get a little dizzy counting their future profits. No one can say for sure where the real estate market is headed, but when the market is inundated with so many people thinking that all they have to do is purchase any property and they'll make easy money on the appreciation, this could be a warning sign. It even more important now for investors to exercise caution and work with experienced buyers agents.
Despite the fact that home prices in the United States have achieved record levels, the percentage of people's equity in their homes has never been lower. While people have been experiencing record levels of appreciation in their homes, they've also been taking the equity out through lines of credit and second trust deeds for both living and other expenses, too. While people have been stretching to afford the home they want at these current prices, many of them have also been financing their loans with variable interest rates. If and when interest rates go up, these people will be caught making much higher mortgage payments than they are right now. And some of these homeowners got into their loans at artificially low "teaser" rates, too, meaning that their interest rate will be increasing in the months and years ahead even if market interest rates remain the same. But if interest rates go up, these people will get hit with both the increase they knew was coming, plus another increase in their variable rate because of the changing market conditions.
Some real estate appraisers have been publically stating that they're under pressure to justify continued higher prices in their appraisals, and the government is now demanding answers from some. If they put pressure on appraisers to be more conservative it could begin to curb a hot real estate market.
Pricing Estimates
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Everyone has a "ball park estimate" about the future profits of their potential real estate purchase. For Investment Condos - What return do you anticipate or must have on the rental income and the price appreciation to consider making a purchase?Past performance is no guarantee of Future Results. We advise our buyers to avoid buying any properties that rely on ongoing appreciation similar to the past in order for the deal to still make sense. We try to locate properties based on sound fundamentals that will weather potential readjustments in the economy.The real estate market has always been flexible. The Sale Price has always been what a seller and buyer agree to accept to close a deal. In the last three to four years in many florida areas ...a percentage of sellers and buyers have agreed to close deals at ...and above ...the asking price. Gulf Front...Waterfront and Investment Properties are best examples of this trend.In the middle of 2005 that trend has abated somewhat and asking prices and negotiations are trending downward.
Everyone has a "ball park estimate" about the future profits of their potential real estate purchase. For Investment Condos - What return do you anticipate or must have on the rental income and the price appreciation to consider making a purchase?Past performance is no guarantee of Future Results. We advise our buyers to avoid buying any properties that rely on ongoing appreciation similar to the past in order for the deal to still make sense. We try to locate properties based on sound fundamentals that will weather potential readjustments in the economy.The real estate market has always been flexible. The Sale Price has always been what a seller and buyer agree to accept to close a deal. In the last three to four years in many florida areas ...a percentage of sellers and buyers have agreed to close deals at ...and above ...the asking price. Gulf Front...Waterfront and Investment Properties are best examples of this trend.In the middle of 2005 that trend has abated somewhat and asking prices and negotiations are trending downward.
Market Pricing
The real estate market has always been flexible. The Sale Price has always been what a seller and buyer agree to accept to close a deal. In the last three to four years in many florida areas ...a percentage of sellers and buyers have agreed to close deals at ...and above ...the asking price. Gulf Front...Waterfront and Investment Properties are best examples of this trend.In the middle of 2005 that trend has abated somewhat and asking prices and negotiations are trending downward.
