Century 21 Wimco Realty, Inc. Blog

Crist to veto anything that raises insurance rates

TALLAHASSEE, Fla. (AP) – April 8, 2010 – Gov. Charlie Crist reinforced his message Wednesday to lawmakers considering legislation that would allow insurance companies to boost property insurance premiums on home and business owners.

His advice: Don’t do it.

“This is the last time that people need to have property insurance go up,” Crist warned. “If there is any legislation that comes to my desk that would do that I will veto it and happily do so.”

Crist said he didn’t think legislators would attempt to overturn it.

“I can’t imagine how many members of the House and Senate would want to override a veto that reduces property insurance,” he said. “They would do so at their own peril.”

The Republican governor, who is leaving that office to seek his party’s nomination for the U.S. Senate in August, has been fighting members of his own party on the issue the past two years.

Just last week, former Gov. Jeb Bush weighed in, noting that the failure of several undercapitalized insurers could bankrupt the state and that the private insurance market should be bolstered.

Crist made an unusual appearance in a Senate committee last month to oppose legislation proposed by Sen. Mike Bennett, R-Bradenton, that would let property insurers offer unregulated rates to homeowners.

Crist vetoed a similar bill last year that would have given homeowners a choice to pay higher, unregulated rates for insurance covering hurricanes, fires and other hazards from well-funded national companies.

Florida residents with auto, residential property or commercial property insurance policies are already paying a 1 percent assessment to shore up the Hurricane Catastrophe Fund tagged with huge losses after the 2004 and 2005 hurricane seasons. They would be liable for much higher assessments if the CAT fund and the state-backed Citizens Property Insurance Corp. were unable to pay claims.

Citizens was created by the Legislature in 2002 as a safety net to offer property coverage to homeowners without private insurance options, although not necessarily at cheaper rates.

Copyright © 2010 The Associated Press, Brent Kallestad, Associated Press Writer.

We won a Quality Service Award for 2009! We had to recieve a 95% approval response on our surveys to receive this wonderful award. If you read the article below, it will put in perspective this great accomplishment.

“Report: Only 22 percent of homebuyers happy with their agent

SACRAMENTO, Calif. – March 16, 2010 – A study by the California Association of Realtors shows a decrease in the number of consumers who say they would use the same real estate agent again to 22 percent in 2009 from 79 percent in 2004. When asked why they would not retain their previous agent, 64 percent said their homes languished on the market and 51 percent were upset that their house fetched less than they had expected.

The study findings show that sellers with unrealistic expectations blame their agents when a transaction does not go as planned, but agents often are indeed at fault for failing to inform sellers about current market realities when it comes to pricing and financing.

In the short term, agents can expect consumers to prefer working with individual agents, believing that a large brokerage cannot provide the personal response and service they so desire. Agents also need to drum up the courage to turn down overpriced listings that likely will not sell.

Over the long term, Realtors must focus on skill, hard work, and the use of technology to provide personal service and deliver the information of most interest to clients. Moreover, agents should immediately respond to calls and e-mails, listen to their prospect’s wants and needs, and make good on their requests.”

Great job everybody!!

Open house this Sunday from 2pm – 4pm at this gorgeous home with sparkling in-ground swimming pool! So many updates have been done in this spectacular home! Come to our open house this Sunday and see why this house should be your new home!

Slowly, Americans are regaining their lost wealth

WASHINGTON (AP) – March 12, 2010 – Americans are recovering their shrunken wealth — gradually.

Household net worth rose last quarter, mainly because the healing economy boosted stock portfolios. But the gain was slight. And it was less than in the previous two quarters.

The Federal Reserve said Thursday that net worth rose 1.3 percent in the fourth quarter to $54.2 trillion. It marked the third straight quarter of gains. But economists say consumers would need a stronger and more prolonged increase in their wealth to persuade them to ratchet up spending.

Net worth had risen by a more robust 4.5 percent in the second quarter of 2009 and an even faster 5.5 percent in the third quarter. Net worth is the value of assets such as homes, checking accounts and investments minus debts like mortgages and credit cards.

Even with the gain, Americans’ net worth would have to rise an additional 21 percent just to get back to its pre-recession peak of $65.9 trillion. That illustrates Americans’ vast loss of wealth from the worst downturn since the 1930s.

Growth in stock portfolios delivered the biggest lift to net worth in the October-to-December period. The value of stocks rose by nearly 4 percent to $7.7 trillion. Higher home prices helped a bit. The value of real-estate holdings edged up 0.2 percent.

During the recession, which began in December 2007, household net worth had plunged as low as $48.5 trillion in the first quarter of 2009. Stock holdings and home values nose-dived. As their net worth evaporated, Americans felt less inclined to spend.

For all of last year, consumer spending dropped 0.6 percent. This year, as wealth, the economy and financial conditions slowly recover, consumer spending is projected to grow around a modest 2.2 percent, according to the National Association for Business Economics.

By contrast, in 1983, when the economy was recovering from the 1981-82 recession, consumer spending surged 5.7 percent. Unlike past rebounds led by ordinary shoppers, this one so far has been driven more by spending from businesses, foreigners and — until it runs out — government stimulus. Consumers have been spending more lately. But they remain cautious.

“It would take a string of increases of a size that they believe can continue and that they can have faith in for consumers to really boost their spending,” said Scott Hoyt, senior director of consumer economics at Moody’s Economy.com.

Each dollar increase in household wealth translates into roughly three to four cents of consumer spending over two years, Hoyt said.

That isn’t much.

Just ask Marcia Karon, 55, of Atlanta. She’s felt little benefit from the economic rebound or the stock market. Her family’s finances are being crimped in other ways. Her husband has taken two pay cuts in the past year, their property taxes remain high and “everything else is going up,” she says.

“Things are tight,” says Karon, who works at home as a calligrapher and bookkeeper. “Over the last year we’ve had to go through what little savings we had set aside just to get by.”

Not until 2012 does Hoyt think household wealth will return to its pre-recession levels. A severe setback to the economy could delay it further, he added.

Americans reduced their borrowing last year at a record pace. They did so amid rising defaults on mortgages and credit card debt. The drop also reflected concern among households about their diminished net worth.

Household debt — including mortgages, credit cards, auto and student loans — contracted at an annual rate of 1.75 percent in 2009, the Fed report said. It was the first annual decline on records going back to 1945.

Copyright © 2010 The Associated Press, Dave Carpenter and Jeannine Aversa, AP business writers. All rights reserved.

There are several homes in Fort Walton Beach that are listed as short sales. Many Realtors make the assumption that buyers and sellers understand the term short sale. As a Fort Walton Beach Realtor, I can say that over the past year, the number one question I am asked is “What is a Short Sale?”

A short sale allows a seller to sell their home when they owe more than the home is worth. The seller is “short” the funds necessary to sell the home in the conventional manner. In order for a short sale to be successful, the seller’s mortgage company must agree to accept a payoff that is less than the seller owes. In most cases the shortage of funds is written off by the mortgage company, and the seller will have no further liability. In some cases the mortgage company may require the seller to promise to pay back the shortage. In this case the lien on the home is released, and the new loan is unsecured.

Buyers can benefit from purchasing a short sale, because usually short sales can be purchased at a discounted price. The disadvantage to making an offer on a short sale is time. Buyers may have to wait several months before the mortgage company responds to their offer. The mortgage company may also consider more than one offer. Many buyers become frustrated after waiting several months with no answer, and withdraw their offers. If your closing time lines are flexible, this long process can add up to a very good deal. The patient bird gets the worm!

Buyers can also possibly lessen their wait times by choosing short sale homes that already have an offer. Even though you are in competition for the home, the long process has already been started by another party. It is also a good chance that the first buyer may withdraw. Buyers may also expect more wait time for homes that have more than one mortgage.

Sellers can help the short sale process move more quickly. Some mortgage companies will pre-approve a seller’s eligibility for a short sale. In these cases it is extremely important that the seller start this process before they receive an offer on their home. Sellers usually have to provide 1-2 years of their tax returns, current financial information, and the reason they are selling their home.

If you want more information on buying or selling a short sale home in the Fort Walton Beach, Destin, Navarre, Mary Esther, or Niceville Florida area, contact me today! 850-685-8374 Terri@Century21Wimco.com.

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This Mary Esther, Florida home is on a spacious – privacy fenced lot! This house is open, light, and bright. It boasts a split bedroom floor plan, garage, low maintenance vinyl siding, and inside laundry area. Plenty of parking for boat or RV. Don’t miss this opportunity to purchase your new home at this great low price of $89,000.00 This home is a short sale. Call realtor, Terri Todd, Century 21 Wimco, Realty, Inc. for details 850-685-8374. Click on the photo form more information.

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• Elementary {1}

Elementary Schools

1 Elementary Schools found within 3 miles radius.

School	Type	Grade Level	Enrollment	Students per Teacher
Florosa Elementary School Phone: (850) 833-4381 1700 Hwy 98 W, Mary Esther, FL 32569	Public	PK, K-5	580	12

Affordable home in Fort Walton Beach, FL.  This is not a short sale, just  a great deal on Fort Walton Beach real estate.   New Paint, New Interior Doors, New Carpet! Newer AC/Heat and Water Heater. Large private, cool, and shady back yard. Enjoy the natural beauty of the mature oak trees from your large roomy screened back porch. This home is for sale or for rent.  Click on the photo for more information.  

Florida expected to start adding residents again after population decline

GAINESVILLE, Fla. – March 3, 2010 – It’s a small bounce, but Florida’s population should rebound this year from its first loss in more than half a century in a hopeful sign for the struggling state economy, new estimates from the University of Florida (UF) show.

The Sunshine State is expected to add about 23,000 residents between April 1, 2009, and April 1, 2010, following a loss of almost 57,000 residents the previous year, according to population projections released yesterday by UF’s Bureau of Economic and Business Research.

“Based on changes in electric customer data, we believe Florida’s population has increased slightly over the past year,” says bureau Director Stan Smith who led the research. “This may be an indication the state’s economy is no longer declining at the rate it had been before.”

Although the state’s unemployment rate remains very high, there are signs that the housing market is starting to pick up in a number of places. “It appears the state’s population loss was a one-year occurrence,” he says. “Even so, Florida’s growth will be very slow during the early years of the new decade.”

Not until 2014 or 2015 will the state return to annual population gains that are close to 300,000, the average annual increase over the past 30 to 40 years, Smith said. Population grew by more than 400,000 residents a year during the housing boom between 2003 and 2006.

The economy has such a big impact on Florida’s population growth because it drives migration, Smith says. People in their 20s, 30s and 40s who move to the state for jobs are the largest group of newcomers, followed by retirees and foreign immigrants.

“Even retirees are affected by economic conditions because of the housing market,” he says. “If it’s difficult for them to sell their homes, they may have to delay a retirement move to Florida even if that is what they had been planning to do.”

Due to the bursting of the housing bubble and the severe national recession, Florida lost more than 800,000 jobs between the fall of 2007 and the fall of 2009, and the state unemployment rate rose from about 4 to 11 percent. The declining economy led to a huge slowdown in population growth between 2007 and 2008 and a population loss between 2008 and 2009. The loss was the first since military personnel left the state at the end of World War II.

The bureau estimates the total number of state residents will grow from 18,750,000 to 18,773,000 between April 2009 and April 2010. According to long-term projections, state population is expected to reach approximately 21,247,000 in 2020, 22,574,000 in 2025, 23,821,000 in 2030, and 24,971,000 in 2035.

The biggest numerical increases forecast between 2010 and 2035 are in large counties. Orange County is projected to add the most new residents, 512,200; followed by Hillsborough, 471,800; and Miami-Dade, 457,200.

“Population growth has a lot of momentum in the sense that places that have been growing rapidly in one time period tend to grow rapidly in the following time period as well,” Smith says. “Large markets attract businesses and have more opportunities to draw job seekers. Also, migrants are often attracted by social and family connections with people who moved to an area previously.”

In terms of percentage increases, the biggest leaders over the next quarter century are projected to be Sumter and Flagler counties, growing by 111 percent and 109 percent, respectively.

“The main driving force to Sumter County’s growth is The Villages, a huge retirement community that has been adding a large numbers of residents,” Smith says. “Flagler County also has added a lot of retirees but has a rapidly growing working-age population as well.”

Monroe is the only county projected to lose population over the next 25 years, declining by about 4 percent. The county has little vacant land that can be developed and the area has a high cost of living. Some counties are expected to grow quite slowly, such as Pinellas, with an expected quarter century population increase of less than 2 percent. As the state’s most densely populated county, it has little available space.

© 2010 Florida Realtors®

It is said there are 7 deadly sins, I say there are 7 deadly myths being circulated about short sales.

1) Short Sales are impossible and never get approved. FALSE

TRUTH: Short Sales are more difficult, You need to learn a new process, They are NOT impossible. This is definitely not an impossible process. While there are no guarantees in any transaction, more and more short sales are being approved monthly. However, an agent MUST be educated on the process, or it will be nearly impossible. My success rate is about 99.9%. I don’t take no for an answer but always look for a solution to any problem.

2) Banks are NOT accepting Short Sales; They are waiting on a bailout. FALSE

TRUTH: The reality is that banks have already been bailed out, and are really trying to do anything they can, within reason, to avoid foreclosing on a property. More banks are aggressively pursuing Short Sales and Agents who understand how to process them. It is strictly business, it costs the bank (in most cases) far less to short sell than to foreclose.

3) You must be behind on your mortgage in order to negotiate a short sale. FALSE

TRUTH: At one time this was true, but today, this has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency. If you meet these three requirements and are in a position where you will soon not be able to afford your mortgage, now is the time. Some few lenders still hold on to this rule, but they are few and far between. In fact, most lenders in any circumstance would rather sell short than foreclose.

4) Buyers are not interested in short sales and avoid them. FALSE (mostly)

TRUTH: Some buyers are not interested because of the time it takes, especially with time constraints like the first time homebuyer credit. On the other hand, many agents are getting calls from buyers who say “I only want to look st foreclosures and short sales.” These have become synonymous, not with issues, but with Good Deals.

5) Listing a home as a short sale is an embarrassment. FALSE

TRUTH: Most sellers don’t want the world to know they can’t pay their bills, but according to recent estimates, 1 in 5 homeowners in the US owe more on their house than it is worth. Even wealthy owners have to stop the bleeding somewhere. Most sellers are to be congratulated for admitting they need help, taking action and finding a professional who can work toward a solution.

6) The bank would rather foreclose than bother with a short sale. FALSE FALSE FALSE!!

Truth: This myth started with collection people working for lenders on commission. The reality is that banks do not want to foreclose on property, it costs too much. An average foreclosre can cost the bank up to $40,000 and they still have holding costs, insurance, realtor fees, etc. and still get less than market value. Do the math, which would you do?

7) There is not enough time to negotiate a short sale before a foreclosure. FALSE

TRUTH: This is a myth that hurts homeowners. Many don’t realize that the foreclosure process is lengthy. It can take a year or more, and if an attorney gets involved, it can be stalled far longer. Almost all lenders will stall a foreclosure with a legitimate contract for short sale. So if lis pendens has been filed, no worries, that’s just the beginning. If it is slated for the courthouse steps, hurry up, if there is an offer you may be able to stall. Don’t let your clients wait that long. Go get those listing today.

Housing upturn proves elusive

The rest of the U.S. economy may be bouncing back, but for the battered housing sector, the hopes of economists and real estate experts are still modest.

“Recovery is probably too strong a word,” First American Funds Chief Economist Keith Hembre says of recent housing data. Call it “stabilization at a lower level.”

Home prices and buying activity are coming back, but only from a disastrous 2009. In the first quarter of 2009, for example, the Standard & Poor’s Case-Shiller National Home Price index dropped 19 percent from the year before. In the last quarter of 2009 – for which data were released on Feb. 23 – the index was down just 2.5 percent from the year before.

“We’re showing signs of the housing market bottoming,” says Michael Strauss, chief economist at Commonfund. “The bad news is we still have a long way to go.” The widely watched S&P Case-Shiller 20-City Composite Home Price index rose 0.3 percent from November to December. But the figure only increased when adjusted for the winter slowdown. Without a seasonal adjustment, home prices fell 0.2 percent from month to month.

Remeber this: Real Estate is a very local and specific market. Here locally we see things improving faster than on the national or regional level.