Florida Real Estate Blog

Look Out For Scam Artists If You Are in Danger of Foreclosure

When I was younger and lived on our family farm, we could often tell when one of our sheep was ill or dead. We would see the buzzards or turkey vultures circling over the spot where the animal was. In that same way we now see some less than honest mortgage brokers and others taking advantage of the predicament of many homeowners who find themselves at the brink of foreclosure on their homes. They use catchy phrases like "Avoid foreclosure worries", " We are the ray of hope", or "There is light at the end of the tunnel". Desperate borrowers fall prey to these come-ons since they are looking for any way to avoid losing their homes. It may very well be that an unscrupulous broker got them into their financial troubles in the first place by talking them into borrowing more money than they should have.

One scam I heard about was where the criminal told the buyer he would pay off the mortgage if the homeowner would give him a quit claim to his home. Then he would let the homeowner stay there by paying rent (often double the mortgage payment). Then after two years he could buy the home back. But with the high rent payments the homeowner eventually was evicted and lost any equity he had in the home.

Another one that is supposedly going around is where the crook gets the owner to give him a deed to the property and then he borrows more money using the home as collateral. In the end the homeowner finds that he owes even more money and again loses the home.

I urge you to only work with legitimate lending organizations or brokers. Your own lender may be willing to to work with you. Contrary to what old movies used to depict, lenders do not want to foreclose if they do not have to. It is costly and time consuming. They may be willing to work with you to find a satisfactory solution.

There are many good companies out there. Check with your local Better Business Bureau to see if there are any complaints against a company. Ask for recommendations from friends or REALTORS that you may know. If your state licenses mortgage brokers you can also check with them to see if a specific person is licensed and has any complaints filed against him or her. Do all you can to check out the person you are working with. You may be able to find a way out of your predicament, but it will only get worse if you get involved with scam artists. Letting a real estate attorney review any documents before you sign them may also be a very good idea.

I also suggest that you visit the website that the Department of Housing and Urban Development has set up concerning this issue. You can get there by clicking on the following link: HUD Advice For Avoiding Foreclosure

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Time Running Out to Register For Florida's Primary Elections

I was reminded today that if you are a citizen of Florida and wish to vote in the elections that will be held on January 29, 2008, you must be registered to vote by this coming Monday, December 31st. Keep in mind that not only will we be voting for the presidential candidates for each of our particular political parties, but we will also be voting for or against the property tax reform bill that the legislature placed on the ballot. I have referred to this in previous posts.

If you have not already registered, you can call the Pasco County Election Supervisor's office at: (352) 521-4302 to see what you can do to get registered in time to vote. But HURRY!! If you live in another county simply do a Google search for "Supervisor of Elections ______ County". Most now have websites with contact information.

Remember, we all complain about property taxes, but we cannot gripe much if we do not play our part in determining how we will be taxed. So register and then get out there and vote!

30 Year Fixed-Rate Mortgage Interest Up Slightly, 15 Year Fixed-Rate Mortgage Interest Unchanged

Yesterday 12/27/07,  Freddie Mac reported that the average mortgage interest rates for 30 year fixed-rate loans were up just a bit and 15 year fixed-rate interest rates remained unchanged. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.17% (6.17% in the southeast), up from 6.14% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.79% the same as it was last week.

Long-term interest rates on bonds went up a bit, and the 30 year mortgage rate followed suit. If you have an adjustable rate mortgage whose interest is tied to these securities you may see your monthly payment rise a bit.

Housing prices continued to decline for the 15th straight month. 16% over the past year. Of 20 major housing markets, 17 showed a decrease. Freddie Mac feels that tightened credit requirements and the continuation of the falling housing market will probably keep consumer spending at a lower level. It will be interesting to see how willing consumers were to spend their cash during the Christmas holidays.

Locally it does appear that more homes are selling, but only if their owners are pricing them realistically. We still have many overpriced resale homes that will likely stay on the market for severl months. I have seen several lately that have been on the market over 400 days! The buyers are telling these sellers that their homes are not correctly positioned in the market. Eventually the message will get through. Meanwhile several developer/builders are marketing brand new homes for around, and even under, $100 per square foot. Prices unseen since 2003.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com  and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

Winter Homes For Sale in Zephyrhills, Florida

As I finish up my Christmas celebrations here with family and friends, on CNN and other cable channels I can see what is happening up north. Does this picture look familiar to any of you? If not, it probably soon will be a reality. I know from experience having spent 27 years in western New York State. A white Christmas was nice, but after that some warm weather and sunshine were welcome.

Today here in Zephyrhills between Tampa and Orlando it was a very comfortable 75º F. Not a snow shovel or ice scrapper in sight. If you are thinking of visiting our area and are considering purchasing a winter residence, I would be happy to assist you. The following properties are available directly through me:

Not only are these three homes available for purchase, but there are many others listed through my office and my access to the Multiple Listing Service, many in registered 55+ communities. I can obtain and e-mail you information concerning any of these. I can even set up an auto-notification program using your specific requirements. When a home comes on the market that meets those requirements you will be automatically notified via e-mail. Just let me know what you want in your new home. Do keep in mind that now that the holidays are ending, we will be getting a large influx of winter visitors or "snowbirds". This means that competition for the best properties will begin to heat up considerably.

If you prefer not to purchase a mobile home, please be aware that there are also single-family homes, villas, and condos in registered 55+ communities. I would be happy to send you information concerning any of these residences.

Whether a mobile or a conventional residence, do keep in mind that the homes that I help sell are located on their own land. I do not deal in homes that are located on rental lots.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

PRICE REDUCED AGAIN by $250,000! 20+ Acre Estate/Ranch Available for Purchase

What Southern Charm! This lovingly preserved classic home is located on over 20 acres of land in the hills between Dade City and San Antonio, Florida with frontage on Lake Suwannee. Entering from the inviting front porch you step back in time where homes had character and were not "cookie cutter" in design. This home features 3 bedrooms, 3 baths, wood floors and walls, and 4 fireplaces! High ceilings throughout add to the spacious feeling this home offers. Everywhere you look you see the uniqueness of this gracious residence!

Nearby is a detached guest house with a full bath and a galley kitchen. A perfect place for guests or visiting family members. It would also make a comfortable home office, inlaw apartment, or separate game/entertainment area. Many possibilities here.

Heat getting to you? Take a dip in this beautiful pool. It will be hard to find a better venue for entertaining and relaxing. The pool is screen enclosed for your comfort. Surrounding the pool are grand lawns that offer all the space you will need for outdoor activities like football, soccer, baseball, etc. You can do them all here. Adjacent to the pool is a gazebo that contains a whirlpool spa. Soak those tired muscles while being surrounded by a peaceful, tranquil environment. Hard to find that in a subdivision with "postage stamp" lots.

The property includes a barn with 4 stalls and a tack room. Bring several horses and still have room to spare. Plenty of space for expansion if you so desire. Surrounding the home and barn you have 20+ acres of forest, pine groves, and open land that lead down to frontage on Lake Suwannee. The woods provide natural privacy screening from the neighboring properties. They can also provide the wood for the 4 fireplaces so that you can be snug and warm on cool evenings.

With easy access to Tampa, Zephyrhills, and Dade City this property offers a one-of-a-kind opportunity for the discriminating homebuyer who is looking for something very special. NOW $1,240,000 Call 813-783-4444 today for more information and to arrange a tour. Seeing will be believing!

To get more information, see more photos, and view a slideshow of this fine home, please visit my webpage at:  jelwell.century21bnr.com

Weather Radios - A Wise Investment for Mobile Home Owners

When I sell a home I always give the buyers a gift. Usually this is in the form of a gift card. A couple of months ago I decided to give weather radios to buyers of mobile homes.

Some buyers who recently purchased a home from me in Zephyr Shores were the first recipients of a radio gift. Last week they informed me that it went off a couple of times during one night when severe weather had been predicted. Luckily, Zephyrhills avoided getting hit, but I saw on the news that the Pasco County Sheriff's department had suffered damage and I could see several vans that were tossed around like toys.

With hurricanes, we have notice way ahead of time that one is coming. However, tornados and sudden bursts of high winds are less predictable and can take place during the night when we are sound asleep. Not a good time to have your home behave like Dorothy's in the Wizard of Oz. A weather radio can be set for a local area's broadcast and will silently sit on your counter, until the national weather service issues a storm watch or warning. It will then sound an alarm to let you know that there is dangerous weather in the area. Important information for you to know. Most of these radios also let you hit a button at any time to get up-to-the-minute weather information. Not a bad thing for golfers, sportspersons, travellers, etc to know.

I got my customers' radio at Publix when they had their hurricane supplies station set up in the fall. However, I know that Radio Shack sells them and probably other stores as well. The prices seem to run between $25 and $60. This might be a good investment to consider, or it is still not too late to get one as a Christmas present (if you move very fast, haha). In any case, mobile home dwellers and others should consider getting one.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Freddie Mac Says Average Mortgage Interest Rates Edge Upward

Today 12/20/07,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans were up just a bit. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.14% (6.12% in the southeast), up from 6.11% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.79%, up from 5.78% last week.

Apparently these small increases were caused by stronger inflation reports than had been predicted and more positive retail sales figures for November, balanced by data that suggested that the housing market would remain weakened for a few more months, thus keeping the increases to a minimum.

Higher inflation rates may still be a possibility with both the producer and consumer price indices rising last month. However, consumer spending was up and that may be a sign of increased consumer confidence in the state of the nation's economy.

Housing starts in November fell to their lowest levels since 1991 and homebuilder confidence was the lowest it has been since records were started in 1985.

All in all, it looks like a real mixed bag of news this week from Freddie Mac. No coal for Christmas, but no Mercedes in the driveway either.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com  and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

FORECLOSURE ACTIVITY DECREASES 10% IN NOVEMBER 2007

IRVINE, Calif. – Dec. 19, 2007 – RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its November 2007 U.S. Foreclosure Market Report, which shows a total of 201,950 foreclosure filings — default notices, auction sale notices and bank repossessions — were reported during the month, down 10 percent from the previous month but still up nearly 68 percent from November 2006. The national foreclosure rate for the month was one foreclosure filing for every 617 households.

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1 million properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal’s Real Estate Journal.

“The 10 percent drop in November is the first double-digit monthly decrease we’ve seen since April 2006,” said James J. Saccacio, chief executive officer of RealtyTrac. “This could indicate that foreclosure activity has topped out for the year, but the true test of whether this ceiling will hold will come at the beginning of next year — when we anticipate that a seasonal surge in foreclosure filings and another possible wave of resetting mortgages could place further pressure on the housing market. But if the trend of flat or decreasing foreclosure activity we’ve seen over the past three months continues in the first quarter, it would certainly bode well for 2008.”

Nevada, Florida, Ohio post top state foreclosure rates
With one foreclosure filing for every 152 households — more than four times the national average — Nevada continued to register the nation’s top state foreclosure rate for the 11th straight month. A total of 6,694 foreclosure filings were reported in the state for the month, up 1 percent from the previous month and up 167 percent from November 2006.

Florida’s November foreclosure rate of one foreclosure filing for every 282 households ranked second highest among the states — up from the state’s ranking of third highest the previous month despite a 3 percent month-to-month decrease in foreclosure activity. A total of 29,238 foreclosure filings were reported in the state for the month, up 212 percent from November 2006.

Foreclosure activity in Ohio was down nearly 6 percent from the previous month, but the state’s foreclosure rate of one foreclosure filing for every 307 households still ranked third highest among the states — up from fourth highest the previous month. A total of 16,308 foreclosure filings were reported in the state for the month, an increase of nearly 99 percent from November 2006.

Other states with foreclosure rates ranking among the nation’s 10 highest were Colorado, California, Michigan, Georgia, Arizona, Indiana and Illinois.

California, Florida, Ohio report highest foreclosure totals
A total of 39,992 foreclosure filings were reported in California in November, the most of any state despite a 21 percent decrease from the previous month. The state’s November foreclosure activity was still up nearly 108 percent from November 2006, and the state’s foreclosure rate of one foreclosure filing for every 325 households was 1.9 times the national average and fifth highest among the states.

Florida documented the nation’s second highest state foreclosure filing total in November, and Ohio documented the third highest total. Other states with foreclosure filing totals among the nation’s 10 highest were Texas, Michigan, Georgia, Illinois, Nevada, Colorado and New York.

Top metro foreclosure rates
California cities accounted for five of the nation’s top 10 metro foreclosure rates in November, one fewer than in the previous month. Stockton, Calif., took the top spot, with one foreclosure filing for every 99 households — more than six times the national average. Modesto, Calif., took the No. 2 spot, with one foreclosure filing for every 104 households, and Merced, Calif., took the No. 3 spot, with one foreclosure filing for every 106 households. Other California cities in the top 10 were Vallejo-Fairfield at No. 6 and Riverside-San Bernardino at No. 9.

Las Vegas registered a foreclosure rate of one foreclosure filing for every 122 households, fourth highest metro rate in November, and Detroit’s foreclosure rate of one foreclosure filing for every 138 households ranked No. 5. Other cities in the top 10 were Greeley, Colo., at No. 7; Cape Coral-Fort Myers, Fla., at No. 8; and Miami at No. 10.

Source: Realtytrac.com Press Release

Messy Homes Are The Last Ones That Should Be Over-Priced!

Yesterday I had a couple who wanted me to show them mobile homes in one of the nicest subdivisions in Zephyrhills, Florida. In this park you own the land. The HOA fees are just $30 per month, yet the park has a huge clubhouse, heated pool, whirlpool spa, covered terrace, shuffleboard and tennis courts. In other words, a very nice subdivision.

In general, nice homes here range in price from the mid $70,000's to the mid $80,000's, depending on size. A couple of weeks ago a few agents started pricing their listings at $99,000! Too high, in my very humble opinion. What often happens is when one seller lists his home that high, the neighbors get the same idea since they think their homes are as good or better.  Most have since lowered their prices somewhat.

Now back to the couple that I was showing around. We looked at a homes in price from $74,900 to $97,000. Seven in total. All but one were very nice and only a couple of them were truly overpriced. Guess which one was a mess? You got it. The one at $97,000! The most expensive one in the park. There was clutter everywhere. The kitchen was not as clean as it should be, windows were dirty, and we could not even walk into the spare bedroom due to all the "stuff". Even the utility shed was filled from top-to-bottom. The sellers were there when we were visiting and they, of course, thought their home was great. It was not. The state of the home decreased its value in my mind by at least $10,000, and possibly more. As you may have seen me say before, "If you want top price, your home had better look perfect in today's buyers market.

I cannot imagine why the other agent would price the home so outrageously high. I know this agent to be experienced and honest. Sometimes we do get pressure from sellers to put a price on a home that we know is too high. But it has always been my policy to very politely excuse myself from such situations. I feel it is wrong to encourage the sellers' misperceptions. Not only will their home sit for months unsold, it will become "stale" to the other agents and buyers. In the end the sellers will get mad at the listing agent because they are receiving no offers. Well, SURPRISE, the buyers can get a nicer home just down the street for a lower price! Why would they pay $8,000 more for a home that is a disaster when they can get a better one for less in the same subdivision? They won't! This applies to conventional homes as much as it does to the mobile homes I have been speaking of in this post.

As a REALTOR® I believe that we do our sellers and our colleagues no favor when we accept listings that we know are way over-priced. Even if the sellers insist. This is just my opinion. However, ethically and morally, I believe that it is our responsibility to price homes as close to their true market value as possible. It is the sellers' option whether or not to accept our professional advice.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

In Florida, Buy a Mobile Home on a Rental Lot in Haste, and Repent at Leisure

There is an old proverb that says "Marry in haste, and repent at leisure". I suspect many a visitor to those little wedding chapels in Las Vegas can attest to the validity of this saying. Here in the Zephyrhills area of Florida I often have home buyers call me and they tell me that they have seen a mobile home for sale for just $15,000! Now that is an unheard of price here unless the home is in ruins. What turns out to be the case, is that the home is located in a park where you do not own the lot. You rent the land from the park owner, which is often a larger company.

Unfortunately, what sounds cheap can quickly become very expensive. First, keep in mind that you will be obligated to pay monthly rent to the land owner which can commonly range from$200 to $500+, depending on the location. Not only that, but you will not likely have any say in future rent increases. If they become too high your only options will be to either sell your home or have it moved. Not a cheap operation.

Second, the management will make all the rules that you will have to follow. They may accept suggestions, but they have the final say. Afterall, to them, you are just tenants.

Third, the rent you pay will probably not be deductible on your income tax returns (confirm this with your personal accountant or financial advisor). But do not think you will not be paying taxes. A part of your monthly rent check will go towards the taxes, yet it will be the landlord that gets to claim the deduction as a business expense.

Fourth, what will happen if at some point the park gets sold to a new owner who wants to use the land for some other purpose? Where will that leave you?

Fifth, in general, mobile homes on rental lots are treated much like an RV or travel trailer. They are not considered real estate, and therefore their value decreases over the years.

Sixth, financing a home on a rental lot can be difficult to obtain, and the terms are often less attractive since basically you are buying a vehicle, not a home.

Seventh, every year you must pay for a new vehicle registration sticker for your home, just as most of you do for your automobiles.

Finally, at least in Florida, a real estate agent cannot sell a home on a rental lot. You need a dealers license to do that, and few real estate brokers have them. That leaves you at the mercy of the park management to try to sell your home, or sell it yourself via posters or ads you place in newspapers. Our Multiple Listing Service will not allow us to put homes on rental lots into the system since they are not considered real property. This can severely hinder your marketing abilities and cost you a good price. At least once a week I have someone call me asking me to help them sell their rental lot home, but there is very little I can do.

So though the initial prices may be attractive, buyers will very quickly see that the costs on the backside start to mount up rapidly.

Since I am a REALTOR® I deal strictly with buyers who want to purchase mobiles on their own land. Do these homes cost more? Of course. However, there are many benefits.

• If a mobile on its own land is properly maintained, the value of the property will generally increase, unlike homes on rental lots.
• If the home is your permanent residence, you can take advantage of the Homestead Exemption and others to reduce your property taxes.
• As a homeowner in the subdivision you will help elect the governing board of directors and have a say in fee increases, subdivision rules, improvements, etc. The owners are the bosses.
• When you decide to sell your home you can use a real estate professional with all of his or her resources and knowledge, therefore getting the best price possible for your home.
• You will not have to register your home every year since it will be considered "real estate" and will be taxed accordingly. You will probably be able to deduct these taxes from your income tax returns.
• Fees will, in general, be much less. I know of several fine mobile home subdivisions where the fees range from $18 to $50 per month. That is a lot lower than the costs in rental parks. And keep in mind that it is you as a homeowner that helps determine what the fees will be, not a landlord.
• Since the home is considered real property, financing can be easier to obtain. And the interest that you pay can often be used as a tax deduction (See your accountant). Rent is just "money down a rat hole", as my grandfather used to say.
• If you get a mortgage, often the monthly payment is not all that much more than the monthly fee that you would pay in a rental park. Something to think about.

So before you make an offer on what appears to be a great bargain, think carefully about the pros and cons of buying a mobile home in a rental park. Perhaps in your case it is the best way to go. But I bet that in most cases buying a home on your own land will be the better investment in the long run.

Keep in mind that the above post is written from my perspective here in Florida. Some parts may or may not apply in other parts of the country.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Repair Before You Sell Your Home, or You Will Be Losing Money Down the Drain!

Yesterday was "caravan day" for real estate agents in Zephyrhills. That is the day when many agents go from new listing to new listing to see what homes have come onto the market. Often they find one that they think will please buyers that they are working with.

I had a new mobile home listing that I was showing, so I made homemade soups and bought a deli tray of sandwiches to attract the agents. In this buyers market there are so many new listings each week, unless you offer food, you may get passed by. As it was, I had a very good turnout.

In between agent visits, I happened to check out the air filter on the heating/AC unit. This is often where buyers and/or their inspectors will look. A filthy filter often tells them how good or bad the care of the home may have been. In my case the filter was pretty bad, so I replaced it. While doing this I heard a sound that was like the crinkling of those plastic grocery bags. I looked down the cold air intake duct and discovered that the duct had split and was actually sucking in outside air instead of drawing all of its air from the interior of the home via the filter. When I got home I called the owner and I explained that we could leave it or repair it. My advice was to fix it since the cost will be minimal. He readily agreed. When the home finds a buyer and the inspector looks under the home he will find no problem at all.

It just so happened that later on the same day I was showing some buyers a different mobile home in the same park. It looked very neat and they were very tempted to make a good offer on it. However, the listing agent (being an honest and ethical person) gave me the results of an inspection that had been done two months previously by another potential buyer. It stated that the mobile home's straps that secured it to the ground had rusted away and the home was no longer fastened to the ground at all. He also mentioned severe problems with the roof and with amateur wiring. My buyers declined to make an offer and lost all interest in the home.

I spoke with the other agent to let her know. She said that she had tried to convince the owner to fix these important problems, but so far he had refused. Is there any doubt as to why this home has been on the market for over 6 months and will likely spend much more time as an orphan property? To keep some money in his pocket, this seller will likely lose money in the end.

So if your home has items that need repair: a dripping faucet, a roof leak, a cracked electrical outlet plate, a dead light fixture, a stuck patio door, etc., get them fixed. Do not leave them for the buyers to discover and repair. And trust me, either they or their inspectors WILL discover them! With so many homes now on the market, it is very likely that your buyer can find a well-maintained home that is similar at the same price and will cross yours quickly off their lists. A home in disrepair literally screams at the buyers "Wait until you find the problems I have that you cannot see!".

The choice is yours. Save a few dollars now and lose thousands later, or take care of repairs and get that home sold quicker at a better price!

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

The American Society of Home Inspectors Issues the Following Seasonal Reminders

Chicago (November 28, 2007) - Surviving the holidays is hard enough without having to think about how to care for your home.  For a busy homeowner, remembering to clean out the gutters and downspouts may be at the end of the weekend "to-do" list, however, it's the first line of defense against the harsh winter weather.  To help put home care into perspective during the holidays, the American Society of Home Inspectors (ASHI) created a top 10 list to give busy homeowners a snapshot of the items they can address today to ensure the safety of their home and family tomorrow.

"Homes are the centers of activity during the holidays," said Frank Lesh, 2007 ASHI president.  "You can't take them for granted or take unnecessary risks — even if you want your house to be the brightest, most festive on the street.  By following these simple tips you can help protect your home against the rigors of winter and the pitfalls of the season."

Top 10 Holiday Survival Tips

According to the American Institute of Stress, 54 percent of Americans are concerned about the level of stress in their everyday lives.  To help reduce holiday stress for busy homeowners, ASHI compiled the following tips for holiday home survival:

Water Sources

1. Clean your gutters and downspouts - Gutters and downspouts play an important role in diverting water away from foundation walls.  Clean them before the winter weather sets in to keep your basement dry and leak free.

2. Drain exterior water lines - Prevent frozen pipes by removing, draining and storing outdoor hoses.  Open the outside faucets to allow water to drain and leave them open so that any water remaining in the pipe can expand without causing the pipe to break.

3. Treat your garbage disposal to a hot water bath - Cooking for large family gatherings or holiday parties can put extra stress on everyday appliances such as garbage disposals.  Prevent plumbing problems and costly repairs by flushing the garbage disposal with one pot of hot water and a half cup of baking soda before and after the holidays.

Fire, Ventilation and Heat

4. Inspect your home heating systems - Nearly half (44%) of all home heating fires occur in December.  Remember to schedule a professional inspection of your home's heating systems, including furnaces, boilers, fireplaces and water heaters before winter weather sets in.  In addition, stock up on furnace filters and change them regularly.  If your home is heated by a hot-water radiator, bleed the valves by opening them slightly.  When water appears, close them.

5. Recaulk and weather-strip your doors and windows - According to the Department of Energy, the cost to heat an average home is approximately $1,400 annually.  Save money and energy by checking caulking for decay around doors, windows, corner boards and joints.  Recaulk and add weather-stripping as needed.

6. Trim back tree limbs - Carbon monoxide poisoning is most common during winter months, particularly because of increased use of fireplaces and furnaces.  Protect your family by identifying overgrown tree limbs hanging over the chimney or flue, as blockages could affect the draft and create higher carbon monoxide levels within a home.  Homeowners should also consider installing a battery-operated carbon monoxide detector.  Batteries should be replaced in the spring and fall.

7. Keep a fire extinguisher handy - Unattended cooking is the leading cause of home fires in the United States.  Make sure to place your fire extinguishers away from potential fire sources.  If you're cooking in the kitchen, for instance, place the fire extinguisher away from the stove to ensure that you can reach the extinguisher in the event of an emergency.

Electrical

8. Test your electrical circuit shut-off switch - Plug outdoor decorations into circuits protected by ground fault circuit interrupters (GFCIs).  Ensure that the circuit shuts-off properly by using a nightlight or radio.  Click the circuit button.  If it clicks and the nightlight or radio stays on, the circuit has not shut off.  Consider contacting an ASHI Certified Inspector to evaluate the problem.

9. Practice ladder safety - Falls account for an average of 5.1 million injuries and nearly 6,000 deaths a year.  Before you hang the Christmas lights, wrap pipe insulation around your ladder beams (the vertical members that the rungs are attached to).  The insulation will help prevent the ladder from slipping and provide insulation against electrical shock.

10. Use extension cords sparingly - Remember to avoid using extension cords when possible.  If you use them, do not run them across hallways or doorways, under carpeting or furniture or through walls.  Never staple them in place.

Note: ASHI encourages homeowners who are unfamiliar with or uncomfortable performing any of the tasks listed above to hire a professional. 

Source: ASHI Press Release

NAR: Home Sales to Increase in 2008 (Some Good News Perhaps Finally?)

WASHINGTON, December 10, 2007 - Existing-home sales are projected to trend up in 2008, with pending home sales showing a slight near-term rise, according to the latest forecast by the National Association of Realtors®. However, a recovery for new-home sales is unlikely before 2009.

Lawrence Yun, NAR chief economist, said the worst part of the credit crunch has already worked its way through the data. “The unusual mortgage disruptions that peaked in August were clearly seen in lower home sales that were finalized in September and October, so the market was underperforming,” he said. “Now that mortgage conditions have improved, some postponed activity should turn up in existing-home sales over the next couple of months, and I expect sales at fairly stable to slightly higher levels.”

The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in October, increased 0.6 percent to an index of 87.2 from an upwardly revised reading of 86.7 in September. It was the second consecutive monthly gain, but remained 18.4 percent below the October 2006 index of 106.8. “The broad trend over the coming year will be a gradual rise in existing-home sales, but because sales are exceptionally low in the final months of 2007, total sales for 2008 will be only modestly higher than 2007,” Yun said.

The PHSI in the Northeast jumped 16.0 percent in October to 80.6 but is 11.1 percent below a year ago. In the West, the index rose 8.4 percent to 87.3 but is 16.9 percent lower than October 2006. The index in the Midwest slipped 1.4 percent in October to 85.5 and is 11.7 percent below a year ago. In the South, the index dropped 7.8 percent in October to 91.6 and is 25.3 percent below October 2006.

“The improvement in the Northeast reaffirms a trend apparent for some months now that shows signs of recovery, noteworthy because that was the first region to slump, and the gain in the West indicates some easing of interest rates for jumbo loans,” Yun said. “Lawmakers need to understand that raising the loan limits on FHA and GSE-backed conventional loans will markedly improve mortgage availability.”

Existing-home sales are likely to total 5.67 million this year, the fifth highest on record, rising to 5.70 million in 2008, in contrast with 6.48 million in 2006. Existing-home prices should be down 1.9 percent to a median of $217,600 for all of 2007, and then rise 0.3 percent to $218,300 in 2008.

“Home price growth in the vast affordable midsection of America will help raise the national median existing-home price slightly in 2008. I then expect price appreciation to return to more normal patterns in 2009, perhaps rising one or two percentage points above the rate of inflation,” Yun said.

“Even with a modest decline in the national aggregate price this year, it’s important to keep in mind that nearly two-thirds of the metro areas in the U.S. are showing price increases,” he said. “The apparent disparity results from fewer sales in high-cost markets, so a change in the mix of sales is dragging down the national median home price.”

Areas showing healthy price gains include disparate markets such as Gary-Hammond, Ind.; Binghamton, N.Y.; Corpus Christi, Texas; and Spokane, Wash. “We can’t emphasis enough how much local conditions vary, even within a given area, so it’s important for consumers to make decisions based on local market conditions.”

New-home sales are forecast at 788,000 this year and 693,000 in 2008, down from 1.05 million 2006; no sustained improvement is seen for new homes until 2009. Because builders have correctly adjusted production, housing starts, including multifamily units, will probably total 1.36 million this year and 1.16 million in 2008, down from 1.80 million last year. The median new-home price is projected to drop 3.0 percent to $239,100 for 2007, and then decline another 0.2 percent to $236,600 in 2008.

The 30-year fixed-rate mortgage is estimated to rise slowly to the 6.4 percent range by the end of 2008, with additional cuts in the Fed funds rate lowering short-term interest rates.

Growth in the U.S. gross domestic product (GDP) should be 2.1 percent in 2007, down from a 2.9 percent growth rate last year; GDP growth is forecast to improve to 2.4 percent in 2008.

The unemployment rate is likely to average 4.6 percent for 2007, unchanged from last year, but rise to 5.0 percent in 2008. Inflation, as measured by the Consumer Price Index, will probably be 2.8 percent this year and 2.7 percent in 2008, down from 3.2 percent in 2006. Inflation-adjusted disposable personal income is estimated to grow 3.1 percent this year, the same as in 2006, and then grow 2.2 percent next year.

Source: National Association of REALTORS Press Release

Up We Go Again! This Week Average Interest Rates Return to Where They Were 2 Weeks Ago

Today 12/13/07,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans returned to nearly the same levels they were at 2 weeks ago. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.11% (6.06% in the southeast), up from 5.96% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.78%, up from 5.65% last week.

Since the Federal Reserve dropped their rates by 0.25%, one would think that the interest rates on mortgages would also drop. However, this often seems to be the opposite of what happens. I can remember many times when the Fed was raising its rates, yet the rates for home mortgages kept dropping week after week. Go figure!

There was stronger employment growth in November and a jump in wages. Both of these worked to ease the fears that a recession was in sight. This in turn caused Treasury securties to increase their interest rates and the mortgage interest followed suit.

Bad news is that the numbers of homeowners who were more than 90 delinquent in their mortgage payments had nearly doubled since the third quarter of 2006. This was even worse in the subprime loan market where the rate rose from 6.78% in 2006 to 11.38% this year. Why the lenders underwrote such risky sub-prime loans is beyond me. When a mortgage broker tellls a buyer that by taking an adjustable rate, interest only loan, etc so they can buy a $250,000 home, when, in reality, they would be much better off buying a $200,000 with a fixed-rate mortgage, the buyers' common sense needs to kick in.  There are thousands out there that now owe more on their homes than the houses are worth. Not a good position to be in. Moral of the story: Deal with a reputable mortgage broker or bank. If a little voice in the back of your mind is saying "How can we repay this? What will happen if rates rise? What if insurance gets expensive? What if one of us is out of work?." LISTEN!

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com  and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.

Thieves In Parking Lots During the Holidays

This is a little off topic, but I felt that it was important enough to warn our local residents here in Dade City and Zephyrhills, Florida, as well as others around the country.

I was delivering Christmas gifts to my customers this week, one of whom was an elderly lady. She told me that she had gone to an ATM at a local bank and then to the local supercenter to do some shopping. When she returned to her car she immediately locked the doors and placed her purse on the seat next to her.

Then a man approached from the passenger's side and yelled that her car was leaking oil badly. She told him that she was just going down the street, but he shouted that she could not start the car or it would explode. Unfortunately she rolled the passenger window down just a bit so she could hear him and he took advantage of that time to reach in and grab her purse. In it were her house keys, her credit cards, several hundred dollars in cash, and other valuable items. All lost. The thief jumped into an accomplice's car and was gone in seconds.

The lady immediately told the bank her credit cards had been stolen and then had the locks changed on all of her home's doors.  However, she still has lingering worries since she is a senior citizen who lives alone.

Here are some suggestions that I can think of, and your local police department or AAA may have others.

1. Make sure no one is in your car before you enter. If you see someone lingering near it, you may wish to ask someone from the store to walk to your car with you.

2. Once in your car lock all the doors as my friend did.

3. Place your purse on the floor of the car where it is more out-of-reach.

4. If someone does tell you something is wrong with your car, thank them and wait for them to leave the area.

5. If the person does not leave, it will probably not hurt your car to drive it to the other end of the parking lot or to the front of a store where there will be other customers and this will make it less likely that the thief will follow. That is assuming that something is really wrong with your car, which is probably not true. Even if your car were damaged, you would at least be safe. In the case of my friend only her money was taken. However, on occasions people have been kidnapped and worse.

6. If you do not want to start your car, keep blowing the horn over and over again. I doubt that a thief is going to want to stay near your vehicle with the horn blowing for 10 minutes straight.

7. I do not suggest that you open the car window at all, but if you do, only it open it a very small bit. Certainly not enough that a man could reach in with his arm.

8. If you have a cell phone, call 911 and ask for assistance.

The city that this occurred in is very small, and we like to think we know everyone. But sadly even here these types of things happen. My friend thinks that they were watching her at the ATM, knew she had trouble walking, and thus had decided that she would be an easy person to prey on. So have a plan and do all you can to avoid a dangerous situation.

If you have other suggestions please feel free to contribute them.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

 

December 2007 Newsletter Now Available for Download

My December 2007 real estate newsletter is now available for download as a PDF (Adobe Acrobat) file. Just click on the following link: Download December2007Newsletter.PDF

If you would like to receive these newsletters automatically each month, just send me an e-mail and let me know. I would be glad to add you to my e-mailing list. You can e-mail me at: jelwell1@tampabay.rr.com

December Typically a Slow Month for Real Estate in Florida and Around the USA

As usual, the market here in Zephyrhills and the rest of Florida has slowed since Thanksgiving. This is also common in most other states. Even though interest rates are at their lowest levels in 2 years and home prices are down as well, people have other matters on their minds. This is the case even in "boom" years.

With Thanksgiving just over, and Christmas/New Years fast approaching, both buyers and sellers are thinking more of family, friends, shopping, travelling, etc. In the north the weather can play a factor, though this tends to affect sales throughout the winter months, not just in December.

So for those of you who are sellers, do not get discouraged, at least here in Florida. As soon as the holidays are over we will get an onslaught of winter visitors, and the market should pick up considerably. This will be even more evident in the areas that cater to long-term vacationers. Zephyrhills is a perfect example of such a place.

For more information or questions about this topic please call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com

I also invite you to visit my my website where I think you will find a lot of useful information. To get there just click on the following link: www.jelwell.century21bnr.com

Freddie Mac: Average 30 Year Fixed-Rate Mortgage Interest Below 6%!

Today 12/06/07,  Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans dropped again significantly from last Thursday's averages. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.96% (5.94% in the southeast), down from 6.10% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.65%, down from 5.73% last week.

These drops are quite large considering that as recently as October 27, 2007 the average rate on a 30 year fixed-rate loan was 6.33% Over the length of a loan this can save buyers a considerable amount of money.

Home prices rose only 1.8% nationwide over the past 12 months ending this past September. This was the slowest growth rate since 1995. Not surprising after the superheated market in 2004 and 2005. Interest rates on Treasury securities fell and mortgage rates followed their downhill path.

Freddie Mac also reported that non-farm productivity was up and yet production costs were down. This made it possible for companies to avoid raising prices (though I wonder what effect the higher energy costs will have). This means that the Federal Reserve should be less worried about inflation and may have more options when it comes to lowering their interest rates in the coming weeks and months. The main problem that still remains is that homebuyers must have good credit to get loans. Lenders are loathe to lend on the subprime market that has gotten them into so much trouble and has caused the rash of foreclosures. However, people with excellent credit might have the banks and mortgage lenders VERY interested in lending them money. I recently had a buyer with an 810 FICO score, and two lenders were bidding lower and lower on the interest that they would charge her. They also offered her a 30 fixed rate mortgage on a mobile home which is not that common.

Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.

If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com  and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.

If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be, should you decide to finance a home purchase.