Boca Raton, FL Real Estate Agent: Florida

Home buyers are an increasingly rare breed these days. Many who were eager to buy a house raced to take advantage of federal home buyer tax credits. When those government perks expired in April, home sales essentially went into deep freeze, plummeting to levels not seen in more than a decade, according to the latest numbers from the National Association of Realtors.

Still, the Realtors project that nearly 4 million existing homes will sell in 2010. First-time buyers, without the burden of a home to sell, could benefit from the distressed market and the record low mortgage rates.

Here are common missteps that home buyers make:

Going it Alone

With so many web sites offering a mass of data on listings, who needs a real estate agent?  Most people, actually. Finding a house and figuring out comps (the price of comparable homes on the market) is the easy part. Managing the nuances of contracts, addendums, offers,  counter-offers, inspections, financing, estoppel letters,  and all the other pivotal steps to buying a home is where many buyers tend to make costly mistakes.

When you hire an agent make sure you are working with an Exclusive Buyer's Agent; they are obligated to put your interests first, even if their commission is paid by the seller and based on the sale price.

Buyer's Agents are skilled real estate professionals who choose to work for buyers. A top Buyer's Agent is your full-time advocate, researcher, advisor, negotiator and local community expert. The job of a Buyer Agent is to acquaint you with the community, answer your questions, help you decide on your home selection criteria, and locate the home that best suits your needs at a fair market value.

Unlike most real estate professionals, Buyer's Agents have no loyalty or fiduciary responsibility to any home seller; they do not accept listings. Buyer's agents exclusively represent the homebuyer and their best interests. Hiring an Exclusive Buyer's Agent eliminates any conflicts between the seller's and buyer's representation.

But don't let the agent find you; do your research.  Ask friends and neighbors about good experiences they have had.  Relocating to a new area?  Do use the Internet to search for your initial list of agents to speak with.  Make sure you ensure that the agent you select is an EXCLUSIVE buyers agent and does not also take listings.  They have a conflict of interest when representing both Sellers and Buyers.

Know How Much You Can Afford

Many buyers mistakenly take a do-it-yourself approach to financing. They use online calculators to estimate how much house they can afford, dive into the house hunt, and then get a dose of cold water when lenders refuse to qualify them for that amount.

Ask you real estate agent for some recommendations for mortgage brokers and get pre-qualified.  A good mortgage broker will explain the process to you, give you a list of documentation you will need to prepare for mortgage qualification, and will assist you through the loan process.  Remember, too, that the costs of buying and owning a home go well beyond the sticker price. While online calculators do take into account property tax and insurance, it's up to you to account for maintenance costs, moving fees and association dues.

Falling in Love with the Home

No one will fault you for falling hard for a home; but understanding the neighborhood, age of home, commute times, schools, neighbors, covenants and restrictions, and local amenities is all part of the homeowner experience.   In hindsight, many buyers say they wish they'd taken their due diligence a few steps further to really get to know all the perks, quirks and hassles of living in a particular place. You can

always fix up the house, but there's no easy remedy for annoying neighbors, oppressive homeowner association rules, and aggravating commutes.

If you are purchasing an older home you must factor in renovation and repair costs as well. Of course, new homes aren't without their drawbacks.  Recently, many newly built homes experienced serious problems with Chinese-made drywall and radon, for example. Proceed with care whatever the home's age.

Spend as much time as you can in your future neighborhood, ideally on different days and times.

Making Arbitrary Offers

With housing inventory running high and sales at record lows, in most markets, there's no shortage of houses for sale and sellers desperate to get out from under them-all the more reason to hold out for the right house and the right price. But when you find that perfect house, don't assume you can lob a lowball offer or make unreasonable demands. Even in hard-hit markets, nice houses in desirable neighborhoods are fetching multiple bids.

If the house has been on the market for months and has not reduced their listing price recently, you probably don't need to worry about other buyers lining up behind you. Make an offer based on recent sales for comparable homes, foreclosure activity, and market trends, and don't be afraid to start the bidding low.  If you are serious about purchasing the home however, making an unreasonably low offer may have the unintended result of putting a bad taste in the Seller's mouth and not getting a counteroffer.  I have had more than a few deals go south because of the impression the Seller gets of the Buyer "bottom-feeding" and not being reasonable and well-intended buyers.

 If the house is fresh on the market, has taken a recent price reduction, or recently foreclosed, and other buyers are circling the block, put your best foot forward with the guidance of your real estate professional, but don't get suckered into a bidding war.

WEST PALM BEACH, Fla. - Aug. 17, 2010 - The number of homes and condominiums for sale across South Florida has steadily declined over the past two years, an encouraging sign for the region's battered housing market.

Still, industry observers worry about a sizable "shadow inventory" of foreclosed homes that could complicate any real estate recovery.

Broward County had 19,869 properties on the market in July, down 35 percent from July 2008, according to a multiple listing service report compiled by the Keyes Co.

Palm Beach County's inventory of homes and condos slid 31 percent to 23,947 during the same period.

The supply of new homes being built in the two counties also has decreased sharply in the past two years, said Brad Hunter of the Metrostudy research firm in Palm Beach Gardens.

In 2005, sellers rushed to list their homes, hoping to fetch record prices during the housing boom. But the frenzy led to a collapse and prices plummeted.

Thousands of foreclosures and short sales have clogged the market ever since, giving buyers plenty of choices and little reason to pay top dollar.

"You won't get price appreciation until you get the inventory in balance," said Mike Pappas, president of Keyes. "We're making great strides."

Declines in homes for sale already have helped stabilize prices recently.

The median price in Broward rose 7 percent during April, May and June to $209,800 from a year ago, the Florida Realtors said Wednesday. Palm Beach County's median increased at the beginning of the year but dipped 2 percent in the second quarter to $235,500.

Pappas said his firm is handling fewer transactions involving foreclosed homes, and he thinks that's an indication the foreclosure market has peaked.

But some analysts disagree, pointing to a recent surge in homes repossessed by lenders that is pushing inventory levels higher in recent months.

Banks are on pace to take back nearly 50,000 properties in Palm Beach, Broward and Miami-Dade counties this year, according to CondoVultures.com, a real estate consulting firm. Many lenders are careful to hold off listing those properties for sale all at once to prevent widespread price declines.

Sean Snaith, an economist at the University of Central Florida, expects more foreclosures to result from homeowners losing their jobs. And he said the sagging labor market likely will discourage potential homebuyers.

"You have to have a healthy labor market as a foundation for a healthy housing market," Snaith said.

Another concern is the expiration of the federal homebuyer tax credits.

Buyers who signed contracts by April 30 and close by the end of September are eligible for the $8,000 and $6,500 tax rebates. But people who put homes under contract after April 30 don't qualify.

While pending sales still are robust, demand for homes is expected to wane in the second half of the year. Fewer sales would keep the supply of homes elevated and ultimately hurt pricing, said Chris Lafakis, an economist covering Florida for Moody's Economy.com in West Chester, Pa.

"Our forecast is that ... demand won't be strong enough to work off the excess inventory fast enough to stave off future price declines," Lafakis said. "But by this time next year, the worst of the declines will be over."

Florida's law specifies certain provisions governing real estate deposits.

A deposit is any money you put forward to affirm your will to pay for something in full. The amount and any restrictions on it are usually determined by the seller of the property in question. In real estate, deposits are generally required--and often non-refundable. Florida's state law sets forth a number of regulations governing real estate deposits.

Earnest Money:
When you make an offer to purchase Florida real estate, you, as the buyer, will include an "earnest money" deposit. This deposit shows the seller that you're serious about the offer to purchase their Florida property.

The amount of earnest money varies based on the type of property being purchased and local market conditions. A typical deposit might be 5-10% of the amount you offer in the purchase contract. The final amount is negotiable and will depend on such things as how long it will take you to close and the number and types of contingencies included in the contract.

The sales contract will dictate who holds the earnest money. Usually the seller's agent will deposit the earnest money in a trust or escrow account until closing. At closing, the earnest money is applied to the total purchase price including closing costs. The trust or escrow account will be managed by an independent third party in most cases, e.g., a title company or real estate attorney who conducts closings. Earnest money deposits cannot be released if a transaction does not reach closing without the express consent of both the Buyer and the Seller.

In the event the sale does not close, the sales contract generally spells out the conditions under which you would forfeit the earnest money. Generally, if the seller meets all the terms of the contract, the seller will keep the earnest money. If the seller does not meet the terms of the contract, then you, as the buyer, receive a total refund of the earnest money. The best advice is to read your sales contract thoroughly and get your questions answered before you complete the offer. If you're not satisfied with the explanation, seek professional legal counsel. A real estate purchase offer is a legally binding contract and you and the seller are bound by its terms and conditions.

Forfeited Deposits:
Section 715.02 places an important regulation on real estate deposits--earnest money and otherwise. Specifically, it states that "no check, draft or other obligation of such prospective purchaser shall be construed to be a deposit if payment of said check, draft or obligation is refused through no fault of the seller." In other words, if you write the seller a bad check, he tries to cash it and it bounces, you haven't technically given him a deposit at all.

Construction:
The state's law also lays down specific rules regarding deposits placed on homes that are being built. Section 715.12 states that you may "withdraw all or any portion of the amount retained from progress payments' made toward the build or, if someone else had previously commissioned the home's construction, the owner."   As your home is still being built, you can think of "progress payments" as a deposit toward its completion.

The law goes on to provide that the seller must pay you any interest earnings earned on your progress payments, if they've been placed in an interest-bearing account, within the first 30 days he receives them.

Most people will make one of the largest purchases they will make in their lifetimes when they buy a home. New homes fall into a special category and this article will focus on new home buying tips in this article, although many of these tips can equally be applied to any home purchase.

 Newly built homes, often in recently-developed communities, are regaining popularity and are more affordable than in years past. New homebuilders are using desirable, open floor plans and are helping buyers get into new homes despite the nationwide credit crunch. As with any major transaction, it’s critical that the buyer enter the home purchase fully informed and educated.

Follow these important tips in a new home transaction to ensure that the outcome is a success.

1. Choose a Realtor Who Has New Home Sales Experience

 Hire a buyer’s agent to represent you. Most of the time, your agent will be paid by the seller, but sometimes the responsibility for the agent’s fee is open for discussion. Even if you have to directly pay your agent, you can probably add that fee to the sales price, which would be worthwhile since a strong Realtor negotiating on your behalf can save you thousands more than the commission.

The builder’s sales agents are paid to represent the builder, regardless of what they may tell you. Many will use high pressure tactics to persuade you to sign the contract. Due to the high volume nature of brand new home sales, lots of builder’s agents are paid less than a traditional commission; some earn a salary plus incentives, so turnover is important to their livelihood.

Your own agent will represent you, act as your fiduciary and disclose the positives as well as the negatives about the transaction. Builder’s agents don’t discuss drawbacks. If your contract contains a contingency to sell your existing home before buying, again, hire your own seller’s agent to list your home. Be aware that buying before selling is not always in your best interest as hard bargaining goes out the window once you’ve emotionally already left your home.

 2. Carefully Evaluate the Seller’s Lender before Committing

Builders often prefer their own lender because the builder will be kept fully informed of your personal progress; it’s one-stop shopping for a builder. However, a builder’s lender might not offer you the best deal. This is particularly true if the builder actually owns the lending company. Builders will offer huge incentives to get you into your new home; sometimes up to 15% of the value of the home. However, they will often put one big stipulation on those incentives – that you use their lender. You should comparison shop lenders and compare the total cost of the home and the fees associated with a loan. A builder's lender often charges higher rates and higher closing costs than you will get from a lender that has an arms length relationship with the builder.

Ask to see a copy of your credit report and FICO cores. You can also order your own free credit report before shopping for a new home.

 Insist that your lender guarantee its Good Faith Estimate. If the lender balks or makes excuses, go elsewhere. Reputable lenders will honor that request, even though it’s not required by law.

3. Check out the Builder’s Reputation

If a buyer has a bad experience with a builder, word spreads rapidly throughout a community. However, accurately and fairly assessing a builder’s history is the appropriate path- check public records for lawsuits or complaints and evaluate their resolutions. Talk to the neighbors and scrutinize the construction quality of surrounding homes. Is the builder consistently building same-sized or larger than existing properties, or are homes shrinking in size, which could reduce neighborhood value? Learn if the builder limits investor purchases – this ensures that the neighborhood doesn’t turn into a “rental” neighborhood, which may appear less well-maintained and reduce property value.

4. Hire a Home Inspector

Many people who buy new construction homes don’t bother to get a home inspection. Most new homes come with a one year “bumper to bumper” warranty that includes everything, and many home buyers feel that they can find out if there are any construction flaws during those 12 months. The problem is that many problems won’t surface until well after the 12-month warranty has expired. If the inspector calls for further inspection by another professional contractor, find out if the inspector is telling you there could be a serious issue or if the inspector isn’t licensed to address that issue. An inspection provides education about the property, and offers the validation of a trained, independent third party assessment of the structure and systems.

5. Obtain Legal Advice before Buying a Brand New Home

Before you sign a purchase contract, talk to a real estate lawyer. Standard purchase agreements are designed to keep everybody out of court, but they don’t necessarily contain language that protects the buyer. Ask questions about removal of contingencies and your cancellation rights.

Make sure you understand your liability and commitments.

Find out if the materials used by the builder contain chemicals that are hazardous to your health. If your contract contains a warning about health issues, it’s probably because it’s a valid concern and other buyers have gone to court over it.

6. Location, Location, Location

The most important thing to decide when building a new home is where to build. What makes,the community that you are interested in stand out? Often, new building developments are located on the outskirts of a city or suburban area. It’s therefore important to check if the area you are considering is close enough to transportation routes, shopping and schools. Also, find out if the developer is planning to add amenities that will enhance your lifestyle such as walking trails and ponds.

Another variable to consider when purchasing your new home is future plans for your area. What is going to be built beside you, behind you or across the street. Horror stories abound. Imagine just moving into your new home when construction starts on the lot across the street, which was previously zoned as unplanned, for a local convenience store with the associated traffic and kids hanging around. Always make sure you know what is being built around you and do not make any assumptions.

 7. Embrace Quality Landscaping

Trees and shrubs can make a huge difference in your energy bills, so make sure a qualified landscape contractor is helping you with decisions. You don’t want tree roots to eventually impede your water lines, nor do you want their limbs to eventually grow into electrical or cable lines. And you don’t want to plant sun-loving flowering shrubs in the shade of a big tree. Will the plants you’ve chosen provide the appropriate screening from neighbors or noisy highways? Don’t just think about how the plants look now. Picture them 20 years down the road. Consider maintenance, too. Will you benefit from an underground sprinkler system? Will a hose and sprinkler reach to that bed of flowers you want to plant near the sidewalk? Do you have hose bibs where you need them — one close enough to wash your car in the driveway, others well placed on the front and back of the house?

8. Watch Your Budget

New home communities list a base price for the homes that they offer. However, this is rarely the actual final cost when building a new home. Be aware that you can add thousands of dollars to the base price of a home very quickly if you get carried away upgrading the standard flooring, cabinetry or lighting. It’s important to know exactly how much you can afford and to budget accordingly.

9. Build with Resale in Mind

No matter how much you love the house that you are building, it’s unlikely that it will be the last home you will ever own. Knowing that, you should be mindful of its potential resale value. Don’t add so many upgrades that you overprice your home for the neighborhood. And don’t choose anything too out of the ordinary. Ask yourself if the features you’re considering installing are likely going to appeal to others.

 10. Know Your Timeline

Building a new home usually takes many months and lots must be coordinated during this time frame. If you are already a homeowner, your current home must be sold, you must make decisions regarding your new home and you must arrange a new mortgage. Get an estimate of when the building of your new home will be completed and plan accordingly.

11. Be Prepared For Delays

No matter what time frame a builder gives you, there is always the possibility of delays. Inclement weather, shortages of supplies and labor problems can all factor into delaying the completion of your home. Be aware of this going into the building process and be prepared to be somewhat flexible.

12. Keep a Close Watch on Progress

One way to help prevent delays and mix-ups is to stay involved in the building process. If possible, drive by the construction site to keep track of the progress that is being made. And keep in touch with your builder on a regular basis.

13. Avoid Making Changes

Try to avoid making changes to your designs once all of the plans have been completed. It will delay the completion of your new home and may add considerably to the final cost.

14. Arrange Temporary Housing

Chances are there may be a delay between the time you sell your existing home (or the lease expires on your current rental unit) and the time you move into your new home. If this is the case, you will need to arrange some temporary housing. Realize that you may be living there for several months so make sure it will be both affordable and able to meet your needs.

15. Read Those Manuals

Sure, you’d rather rearrange your furniture than read owner’s manuals, but if you don’t learn precisely how your new appliances and other home gadgets work, you may inadvertently break them. Ideally, your builder will walk you through the operation of every appliance — but read the manuals to be safe.

Below are tips for home buyers considering an investment in Florida real estate.

1. Consider the Cost of Hurricane Shutters

Hurricane Shutters are not a small investment but will provide you with a discount on your homeowners insurance.  When comparing properties remember to note which ones have full wind protection and the quality and ease of use of the shutters.

2. Remember Sprinkler Systems

I am sure you are aware that it can get very hot in Florida. Homes need built in sprinkler systems to maintain the beauty of the landscaping. In ground sprinkler systems are almost standard on most South Florida homes, less so as you head north.  Factor the cost of adding and repairing these systems into your cost analysis.

3. Barrier Island vs. Intracoastal vs. the Mainland

There are many buyers that believe they want to live in a barrier island because they have heard about the beauty and the instant water access.  If you are a boater, direct ocean access and no fixed bridges are important.  Insurance costs are higher and you will always need to contend with bridges when you want to cross over to the mainland.  Many people do not realize that the ocean views are beautiful during the day...but pure blackness at night.  Many people find this very disconcerting and will often prefer Intraocoastal or a city view in addition to the direct ocean view.

4. Maintenance Fees

Every condo and development will have maintenance fees and/or Homeowners association fees.  They can vary significantly and need to be considered as part of your budgeting process.  In a condo the building insurance costs are factored into the fees where as a single family residence it is additive.  Make sure you understand all the costs that are inclusive in these fees and how and if they are capped. Taxes and insurance are also fees that you need to consider when considering the full cost of owning a home in Florida.

6. Homeowners Insurance

Ask your Realtor of a local insurance agent about flood zones and if you need flood insurance, what items in the home are eligible for insurance deductions or will increase the cost of your insurance ( wind storm protection, security systems, style of roof, Miami- Dade approved roofing and garage doors, skylights, location)

7. Owning a Home with a Pool and/or Jacuzzi

The Florida Department of Health reports, "Deaths from drowning for children less than age five in Florida are more than double the national average and are higher than any other state in the nation. More than two-thirds of these deaths occurred in swimming pools."
Most people dream of having a home in Florida with a pool and it is a great dream, but everyone needs to consider pool safety.   If you have small children or grandchildren consider the cost of child-proofing the pool and patio area.

8.  Home Energy Efficiency

The cost of cooling is an expense that you may not be families with.  Understand the age and tonage of the air-conditioning units that are installed with the home.  Anything nearing 15 years of age will need to be replaced soon and are not efficient compared with newer units.  Zones air air conditioners ( more than one unit) allow you to regulate the cooling and heating in the areas of the home that may not be used often ( guest room and guest homes).

If you are used to gas cooking and heating you may be surprised to find the number of homes and neighborhoods that do not offer this as an option.  Propane can be installed for gas cooktops, water heaters, fireplaces and gas grillls.

9.  Year Round Yard Maintenance

These is no dormant season for lawns in Florida.  Be prepared for year round yard maintenance.  Grass needs to be cut about 3 times a month in the summer rainy season and twice a month in the winter.

The term "Chinese Drywall" refers to drywall imported from China from 2001 to 2007 which emits sulfur gasses which usually (but not always) create a noxious odor and corrode copper and other metal surfaces, thereby damaging your air conditioner, electrical wiring, copper plumbing, appliances and electronics.  Corrosion of electrical wiring can hamper the effectiveness of your smoke detection and can create a risk of fire. 

Chinese drywall is also very friable, which means it is in a state where small particles can easily become dislodged with little friction, thus enabling them to easily enter your lungs.  For this reason, even after Chinese drywall is removed, the toxic drywall particulate may remain unless property removed.

Hundreds of millions of sheets of Chinese drywall were imported from 2004 to 2006, but Chinese
drywall has recently been found in homes built or remodeled as early as 2001. Accordingly, this
phenomenon cannot be explained solely by the shortage of American-manufactured drywall.  The presence of Chinese drywall has been reported in 37 states, the District of Columbia and Puerto Rico is estimated to have been installed in over 100,000 homes in the United States.  Unfortunately, this does not paint an accurate picture as most affected homes have a mixture of safe and tainted drywall.

Chinese drywall is 1/2" in width, although Lori A. Streit, Ph.D., from Unified Engineering, the same compounds found in problematic Chinese drywall and the same gases released therefrom have also been found in drywall measuring 5/8" (which is typically used in ceilings).  Chinese drywall is typically mixed in with untainted drywall, which is why people should not assume that their home is fine if they find U.S. drywall.   Moreover, U.S. drywall may have been manufactured in China and rebranded.

Does your home smell like rotten eggs or ammonia (sometimes a sweetish smell)? Is it more
noticeable when entering your home and then seems to dissipate? The level of odor varies greatly in each home as does each person's ability to detect the odor. Of course, the strength of the odor also depends on how much drywall was used in the home. Significantly, some homeowners report no smell, but their home clearly has Chinese drywall. In short, do not rely on your nose alone, particularly since many develop olfactory fatigue after being exposed to Chinese drywall.

One of the telltale signs is corrosion/pitting of the air conditioner evaporator coils (which are located inside the air handler).  Many owners are first advised of a freon leak, and as the corrosion progresses, evaporator coils eventually need replacement.   An examination of the coils typically reveal a black sooty deposit, which may also appear on the freon line.  

Chinese drywall also corrodes electrical wiring.   Signs of an electrical problem include a circuit breaker which frequently needs resetting without an apparent cause (particularly a GFCI or AFCI); lights that flicker without any apparent cause; bright flashes or sparks anywhere in your electrical system (this may indicate arcing conditions in the wiring);  buzzing from electrical systems, switch plates, dimmers and outlet covers that are discolored from overheating; and a smell from overheating plastic.Personal property such as precious metals and mirrors also were affected. 

Many of the occupants of these homes complained of respiratory problems including sore throats, coughs, nose bleeds, and sinus headaches. 

The Consumer Product Safety Commission serves as the lead agency within the interagency task force that also includes the U.S. Environmental Protection Agency, the Centers for Disease Control and Prevention/Agency for Toxic Substances and Disease Registry, and the U.S. Department of Housing and Urban Development as well as the Florida Department of Health, the Louisiana Department of Health and Hospitals and the Virginia Department of Health, among others.

On April 2, 2010, The U.S. Department of Housing and Urban Development (HUD) and the Consumer Product Safety commission (CPSC) issued interim remediation guidance to help homeowners.  The guidance issued does outline a very common sense approach that simply entails removing the source of the problem (the defective drywall) and replacing the components that are affected.  Consumers are cautioned to be wary of companies and contractors offering these services.  Not only should consumers verify that the contractor is licensed and insured, consumers are encourage to hire a non affiliated third party inspector to oversee and document the remediation process.

Due to the dangers involved, consumers should exercise caution when inspecting components for symptoms of defective drywall.  Always consult a qualified technician or experienced Inspector to inspect air conditioning and electrical components. Equally important is that consumers should recognize that many homes do display symptoms similar to defective drywall.  Only a trained and experienced Inspector can recognize the distinct differences between components affected by gases produced by defective drywall and components affected by natural volatile gases that already exist in many homes.  

These are the following steps that a qualified Inspector should be doing when inspecting a property for Chinese Drywall.

Step 1:   Threshold Inspection

This is a basic visual inspection of the home's copper g round wiring and the air conditioning system's copper evaporator coils.  The Inspector must be experienced enough to determine if any corrosion of these components is caused by gases from Chinese Drywall or if the problem is caused by natural volatile gases that exist in the home.  If the Inspector does not have extensive experience and exposure to both types of situations, there is a much greater risk of the home being misdiagnosed. 

The second part of the threshold inspection (visual) is to confirm that the home had drywall installed between the years of 2001 and 2008.

If the threshold inspection determines the potential presence of Chinese Drywall your Selling Agent should ammend the contract and extend the inspection period required to determine any deficiencies with the property to at least a 60 day period.

Step 2:  Corroborating Evidence

It should be noted at this time that the steps described within step 2 are recommended by the CPSC and HUD ONLY if both parts of the Threshold Inspection are confirmed to be positive. 

Collecting corroborating evidence combines a visual inspection along with invasive examination of the home's installed drywall.  There are (6) items of corroborating evidence that are recommended to confirm homes that are considered positive through the threshold inspection.

If the home's drywall was installed between 2005 and 2008, only (2) items are required.  For installations between 2001 and 2004, at least (4) if the items must be met.  Consumers should note that these items may often require specialized instruments, laboratory testing, or completion by a trained professional. 
   
    (a) Testing by placing copper coupons in the home for a period of 2 weeks to 30 days or confirmation of the presence of sulfur in the blackening of the ground wires and/or air conditioner evaporator coils.  The risk of placing copper coupons in the home is that the copper coupons must be placed within the walls that contain defective drywall.  Most homes built during the time period were built with at least two and sometimes three different brands of drywall.  Positive identification of the wall must be confirmed for accuracy. 

    (b)  Confirmed markings of "Chinese" origin.  Please use caution.  Most markings found in homes that are positive for Chinese Drywall do have markings visible with specialized cameras, however an experienced Inspector must be consulted to determine accuracy when matching these markings with the brands of drywall suspected of being defective. 

    (c)  Strontium levels in samples of drywall core found in the home.  This may require laboratory testing for accuracy.  There are portable machines available to utilize, however consumers are cautioned to ensure that the person using these portable machine is properly licensed and that the machine is registered.  Care should be taken to examine every wall of the home in order to ensure accuracy (for the same reason noted above where multiple brands of drywall may be installed in the home). 

    (d)  Elemental sulfur levels in samples of drywall core found in the home exceeding 10ppm.  Again, this method is only accurate if the correct sample of drywall is taken.  Due to the high probability of multiple brands of drywall being installed in the home, multiple core samples may need to be tested.  This method is costly at a testing price range of $200-$500 per sample. 

    (e)  Elevated levels of hydrogen sulfide, carbonyl sulfide, and/or carbon disulfide emitted from samples of drywall from the home when placed in test chambers.  This method is much like item (d) explained above and also has the same risks of false reporting if the incorrect piece of drywall is chosen to sample. 

    (f)  Corrosion of copper metal to form copper sulfide when copper is placed in test chambers with drywall samples taken from the home.  This method is a duplicate of method (a), however is performed in a laboratory.  Again care is required to remove the correct sample of drywall in order to prevent false reporting.

Users should also be aware that the corroborating evidence items (c), (d), (e), and (f) often take weeks to obtain results.  For homeowners living in these conditions and buyers under contractual obligations for inspections may not be able to tolerate the turnaround time. 

In conclusion, a comprehensive visual inspection with the invasive, yet non destructive corroborating evidence is sufficient to identify homes that contain defective drywall (Chinese Drywall).

ORLANDO, Fla. - May 11, 2010 - Salesof existing single-family homes in Florida rose 24 percent in first quarter 2010 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 38,846 existing homes sold statewide in 1Q 2010; during the same period the year before, a total of 31,410 existing homes sold. It marks the seventh consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.

Statewide sales of existing condominiums in the first quarter rose 67 percent compared to the same time the previous year. This marks the sixth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.

"The first quarter data release from the Florida Realtors paints a picture of a housing market continuing down the long road to recovery," said Dr. Sean Snaith, director for the University of Central Florida's Institute for Economic Competitiveness. "Transactions in the single family market have extended quarterly year-over-year gains for nearly two years, and condo sales have also risen sharply. Median prices in most areas of the state continue to fall; however, the rate at which they are falling has diminished significantly and this is indicative of a bottom approaching.

"How long prices stay at the bottom and when price appreciation will reappear will depend in a large part on the improving fundamentals in the economy and credit markets."

The University of Florida's Bergstrom Center for Real Estate Studies' latest quarterly survey of real estate trends also notes positive signs of recovery in the state's real estate industry. The survey polls market research economists, industry executives, real estate scholars and other experts.

"Results indicate that the real estate market in Florida has hit bottom and is in the process of stabilizing across most property types," said Timothy Becker, the center's director. Private capital - both foreign and domestic - continues to enter the state in search of quality investment deals, he added.

Seventeen of Florida's metropolitan statistical areas (MSAs) reported increased sales of existing homes in 1Q 2010 compared to the same three-month-period a year earlier, while all of the MSAs showed gains in condo sales.

The statewide existing-home median sales price was $133,800 in 1Q 2010; a year earlier, it was $140,900 for a decrease of 5 percent. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.

Inthe year-to-year quarterly comparison for condo sales, 16,897 units sold statewide for the quarter compared to 10,131 in 1Q 2009 for a 67 percent increase. The statewide existing-condo median sales price was $95,800 for the three-month period; in 1Q 2009, it was $110,000 for a decrease of 13 percent.

Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5 percent in 1Q 2010; one year earlier, it averaged 5.06 percent.

© 2010 Florida Realtors®

History teaches that a lack of hurricane awareness and  preparation are common threads among all major hurricane disasters. By knowing your vulnerability and what actions you should take, you can reduce the effects of a hurricane disaster.  Hurricane hazards come in many forms: storm surge, high winds, tornadoes, and flooding. This means it is important for your family to have a plan that includes all of these hazards. Look carefully at the safety actions associated with each type of hurricane hazard and prepare your family disaster plan accordingly. But remember this is only a guide. The first and most important thing anyone should do when facing a hurricane threat is to use common sense.

Know Hurricane Terms:  

Hurricane Watch - A hurricane is possible within thirty-six hours. Stay tuned for additional information.

Hurricane Warning - A hurricane is expected within twenty-four hours. You may be advised to evacuate. If so, evacuate immediately.

Storm Surge - Storm surge is simply water that is pushed toward the shore by the force of the winds swirling around the storm. This advancing surge combines with the normal tides to create the hurricane storm tide, which can increase the mean water level 15 feet or more.

Ask your local emergency preparedness office about evacuation plans. Learn evacuation routes. 

• Plan a place to meet your family in case you are separated from one another in the hurricane.
• Assemble a disaster supplies kit ( See information below) 
• Board up windows. Permanent storm shutters offer the best protection. Also, you can use 5/8" marine plywood. Tape does not prevent windows from breaking.
• Know how to shut off utilities.
• Make a record of your personal property( take digital photos or video tape the contents of your home and/or business and keep in a waterproof with you along with your homeowners insurance policy) 
• Be sure trees and shrubs around your home are well trimmed.
• Clear loose and clogged rain gutters and downspouts.
• Determine how and where to secure your boat.
• Consider flood insurance and purchase it well in advance.  
  

30 Days To Hurricane Season: Time For Flood Insurance

The Atlantic hurricane season starts June 1 - 30 days from now. Since flood insurance takes 30 days to become effective after a homeowner applies, today marks your last chance to get flood insurance by the June 1 debut.

"Past hurricane seasons have shown that storms can form as early as the beginning of June, so property owners can't afford to wait to buy flood insurance," says Ed Connor, acting federal insurance administrator and acting assistant administrator, FEMA Mitigation Directorate.

Many homeowners still wrongly believe that their property insurance policy will cover all damage from a hurricane.

"Homeowners insurance doesn't cover flood damage and, without flood insurance, property owners may have to absorb the financial losses on their own," says Connor. "Just a few inches of water can cost thousands of dollars in repairs and, in this economy, few can afford that potential drain on their savings."

Flood insurance is available through about 85 insurance companies in approximately 20,600 participating communities nationwide. National flood insurance is available to renters, business owners and homeowners, even if it is not required by the terms of a mortgage. While the average flood insurance policy costs about $540 a year, homeowners can protect their properties in moderate-to low-risk areas with lower cost Preferred Risk Policies (PRPs) that start at just $119 a year.

Individuals can learn how to prepare for floods, how to purchase a flood insurance policy and the benefits of protecting their properties against flooding by visiting Floodsmart.gov (http://www.floodsmart.gov) or calling (800) 427-2419.

Preparing Your Pets for Emergencies Makes Sense.
Get Ready Now.
 If you are like millions of animal owners nationwide, your pet is an important member of your household. The likelihood that you and your animals will survive an emergency such as a fire or flood, tornado or hurricane depends largely on emergency planning done today. Some of the things you can do to prepare for the unexpected, such as assembling an animal emergency supply kit and developing a pet care buddy system, are the same for any emergency. Whether you decide to stay put in an emergency or evacuate to a safer location, you will need to make plans in advance for your pets. Keep in mind that what's best for you is typically what's best for your animals.
If you must evacuate, take your pets with you if possible. However, if you are going to a public shelter, it is important to understand that animals may not be allowed inside. Plan in advance for shelter alternatives that will work for both you and your pets.
Make a back-up emergency plan in case you can't care for your animals yourself. Develop a buddy system with neighbors, friends and relatives to make sure that someone is available to care for or evacuate your pets if you are unable to do so. Be prepared to improvise and use what you have on hand to make it on your own for at least three days, maybe longer.



Disaster Supply Kit:    I personally prepare a hurricane closet in May with all the needed supplies and materials so that there is never a last minute rush to the store when the shelves have been cleaned out. 

   Water :

• Plan on one gallon of water per person per day for at least 3 days, for drinking, washing, cooking, and sanitation. Extra water for pets
• Store as much as possible in plastic containers such as soft drink bottles.
• Avoid using breakable containers, such as glass bottles or mason jars.
• Fill bathtubs with water for bathing and washing dishes

Food :

• Store at least a three day supply of non perishable food.
• Choose foods that do not require refrigeration or cooking.
• Choose foods that are healthy and high nutrition type.                                                 (Canned meats fruits and vegetables,protein or fruit bars, dry cereal or granola, peanut butter, dried fruit, nuts, crackers, canned juices, non-perishable pasteurized milk, high enery foods, vitamins, food for infants and pets, comfort/stress foods)

Supplies and Equipment:

• A battery operated radio with extra batteries
• NOAA Weather Radio with tone alert and extra batteries
• A flashlight with extra batteries
• Blankets or sleeping bags ( store in trash bags to keep dry)
• Paper plates and utensils, including a non electric can opener
• Candles and matches in a waterproof container
• Plastic sheeting and duct tape to shelter-in-place
• Toothbrushes, toothpaste, soap, moist towelettes, and other personal grooming items
• Paper towels and toilet paper
• First aid kit and medicines ( ask your pharmasist or drug supply company for a one month hurricane supply and store in water proof container)
• Fire extinguisher
• Wrench or pliers to turn off utilities
• Cell phone and plug in battery operated charger
• Infant formula and diapers
• books, games and toys to keep kids occupied ( remember those batteries)
• Important family documents such as copies of insurance policies, identification and bank account records in a waterproof, portable container
• Complete change of clothing including long sleeved shirt, long pants and sturdy shoes
• Insect repellent and sun-screen
• Paper and pencil
• Local Maps

Useful Links:  

General Hurricane Information:  
National Hurricane Center

 NWS Hurricane Awareness site

NOAA Hurricanes site Frequently Asked Questions

FEMA Hurricane Info

FEMA for kids NCDC: Hurricanes

Hurricane Safety Information:

American Red Cross

FEMA EPA - Drinking Water, Waste Water, and other Hurricane Hazards

The current market conditions make it a perfect time for an investor to purchase one or more foreclosure properties for their private residence, rental or resale.  First, you have to decide at what stage of foreclosure you want to buy; pre-foreclosure , also known as a short sale, sheriff's auction, or repossession, called REO (for real estate owned by the bank).

For most consumers, however, the foreclosure process can prove daunting, Reed says. Good buys are available, but they require research, preparation, patience and persistence.

Pre-foreclosure(Short Sales): These homes are in the foreclosure process, but they have yet to be sent to auction. Owners are typically trying to unload them because they are "underwater," owing more on the homes than they are worth.

As a result, potential buyers must negotiate a deal with the lender as well as the owner. That makes buying at this stage of foreclosure complicated and slow. But, you have the advantage of being able to inspect the home before purchase -- which isn't the case in other types of foreclosure sales. More often than not, these properties sell for a higher price than if the bank were to take it through the foreclosure process and sell it as an REO.

Sheriff's auction: These sales yield the lowest prices, but they are the riskiest investments. The foreclosure process starts when a property owner falls behind on mortgage payments. Many owners of homes that go into foreclosure have been struggling financially for almost a year before they give up, which usually means that the house has not received needed repairs or general maintenance for a while. Often the house is unavailable for inspection, leaving buyers with a long list of expensive repairs -- and much larger bill than they intended. The buyer gets the property "as is", caveat emptor (let the buyer beware) and that may include any liens or taxes due on the property. 

There is no guarantee of clear title when you purchase a home through a Sheriff's auction and you may need to clear the liens on the property to sell if in the future.  Make sure you have a thorough understanding of the condition of the property, the liens, and the cost for repairs.  These are all out-of-pocket expenses and will need to be added to the purchase price of the property to get a true assessment of what you are paying for the property.

Repossession ( REO): This occurs after the home has gone through a sheriff's auction but does not sell and the bank gains possession of the property. Homebuyers may not get the best bargains during this stage, but they can nearly always perform a thorough inspection before closing, minimizing costly surprises. Plus, the property comes with a clear title.

An REO is the least risky way to buy a foreclosed home. Before a bank hangs a "For Sale" sign, it pays off all the existing debts and taxes, and in many cases, repairs the home to bring it up to the standards of the neighborhood. Best of all, you should be able to buy a bank-owned property with a traditional mortgage. In addition, the banks selling these places may extend preferential financing terms to the buyers. 

"You can buy foreclosures for as cheap as 30% or 40% below market, but most foreclosures sell for 5% below market," said John T. Reed, editor of Real Estate Investor's Monthly, a newsletter based in Alamo, Calif.  Banks order appraisals on the properties once they agree to a short sale or take the property back as an REO.  The banks are fully aware of the market value of the property and tend not to discount too far off the appraised value. 

Even in this safer stage, though, homes are still usually sold in "as is" condition. "That means the bank won't pay for cosmetic issues," said Adam Wiener, a spokesman for the Redfin, the online real estate marketer. "Although, they will often pay for some or all of repairs that are health and safety issues. That makes the home inspection even more critical."

Making an Offer.......
Usually the offer amount is somewhere below the market value but above the total outstanding liens and estimated repair costs. If the property is a pre-foreclosure or bank-owned, you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search ( paid for by the buyer).

If the property is selling at auction, you will need to make your offer, or bid, at the auction. In many states, bidders are required to pay in cash in the form of a cashier's check at the auction. You probably won't be able to conduct a full inspection and title search when you buy at an auction, so it's important to do careful research beforehand.

Once you've decided which type of home to buy, there are several common mistakes foreclosure buyers should take care to avoid. These include:

Getting caught up in a bidding frenzy: The banks often under-price repossessions, hoping to generate excitement, attract multiple bids and sell them quickly. The problem is, as in any auction-type sale, bidders get excited and pay too much.

Underestimating repair costs: Take full advantage of the home inspection and don't delude yourself about much the repairs will cost.

Not knowing what comparable properties cost: This is important in any market but especially in this endeavor. In high foreclosure areas, prices can be eroding very quickly. You want to have the latest homes sale prices on repossessed properties and try to keep your bid comparable or lower.

Buying in a neighborhood flooded with foreclosures: This is most important for people buying for the short-term. Any neighborhood saturated with REOs and foreclosures may be headed for further price falls. If you're planning to relocate within a few years or buying a bigger house, that could mean selling at a loss. A better bet, if you can find it, is to buy the only foreclosed home in an otherwise stable community. That's more likely to hold its value.

Banks want to know that you have already secured the financing to purchase the home or that you are paying cash.  Offers contingent on financing or selling your existing home are often summarily rejected by the bank.  Individuals with a large amount of equity in another home may get a line of credit from their bank to purchase a foreclosure. When they  convert the line of credit to a mortgage, no down payment may be required.

Whether you use cash, a home equity line of credit, resources from other investors or mortgage products, secure the money for your purchase in advance. Sellers only want to work with serious buyers who are ready to buy quickly. You could miss an opportunity if you don't have your financing in place.

Foreclosure homes bought in good areas at below market values that appreciate annually can be a sound investment strategy for many investors. The appreciation of the homes is tax-exempt until the home is sold. If the home is a primary residence, the appreciation may be tax-free.

Homes used as rental properties give most investors valuable tax deductions while the house increases in value and builds equity. Real Estate investment is a good way to diversify your portfolio.

SPRING CLEANING & HOME MAINTENANCE GUIDE 

As current homeowners you need to keep your property in good condition so that the small maintenance issues do not become major and expensive repair items.  Here are some annual maintenance items that you should make on your calendar to keep your home in good repair and maintain its value. 

Do not read this list and become overwhelmed, it is an extensive list meant to cover maintenance items you should do once a year....schedule these tasks for weekends and as the season dictates.  You will enjoy your home more knowing that these items have been addressed.

•·         Clean the vents behind your dryer.  This will help your machine dry clothes more quickly, last longer and you will lower your risk of a fire.  Hardware stores carry kits that can help and there are service providers that will do this for you as well.

•·         Check your furnace filter once a month while in use for excess dust; you will want to change it once or twice a year so the unit operates more efficiently.

•·         Replace or wash out your Air Conditioner filters every three months while in use.  This will help lower your electric bill and improve the air quality in your home.

•·         Make sure your sump pump is clean and operating property before spring rains arrive.  Left the lever on the sump to make the float go up and wait for the motor to click on.  If you have a battery backup, unplug the unit and test the pump again.

•·         Now is the time to remove your storm windows and store them properly.

•·         Vacuum the refrigerator condenser coils.  Remember to unplug the unit first and use your vacuum's brush attachment.

•·         Check your fire extinguishers to ensure they have not passed their expiration date.  At a minimum you need one in the kitchen.

•·         Test all your GFIs (Ground Fault Outlet Circuit Interrupters) to see if they are working properly ( hit the "Test" button and the "Reset" button should pop out.  Replace those that are not working.  GFIs should be found in kitchens and bathroom or anywhere there is an electrical outlet near a water source.  If your home is older, you may not have them installed.  It is a good idea to have the old outlets replaced for your own safety.  They will show up as a deficiency in an inspection report when you go to sell your home as well.

•·         Change the batteries in your smoke detectors and carbon-monoxide alarms twice a year.  The best way to remember is the change them when you switch your clocks for to and from daylight savings time.  If you did not do this in March, then make sure you do it soon.

•·         Test your smoke detectors by blowing out a candle underneath them.

•·         If you have a home alarm system that is tied to a central HUB, call them and tell them you are running a test to ensure that they are receiving the notice of the alarm activation.

•·         If you have a wood burning fireplace, schedule an inspection and cleaning of your chimney once a year.  Many sweeps offer a discount in the Spring and Summer.  Also make sure to remove and ashes from your fireplace to prevent moisture buildup, which can damage your masonry.

•·         Inspect your home's exterior for loose siding or trim, cracks, and crumbling mortar. Examine the attic for any signs of leaks.

•·         Clean and repair gutters

•·         Wash and treat ( or paint) wood decks to prevent cracking

•·         Make an appointment to have your air-conditioning system professionally inspected and adjusted before the temperatures start to get into the 80s.

•·         Run a zone check of your underground sprinkler system.  Check for leaks around the hub and make sure that all your pop-ups are working and that none have grown over.  Check on the direction of the spray to ensure that you are getting full coverage of your foliage and limited watering of sidewalks, driveways, and streets.

•·         In preparation for the winter...If you are in an area that freezes, have your sprinkler system professionally blown out since water in the pipes can freeze and cause damage.  Take down garden hoses, drain and store, and put insulation around spouts.

•·         Look for signs of leaks and moisture in your basement which can cause mold, fungus and rust.  Water on the wall usually indicates a bad downspout or grading that is sloping toward the house.  Standing water usually requires a professional.

•·         Inspect your roof and look for loose shingles, mold, mildew or cracked mortar.  Fix problems early to avoid extensive and expensive repairs in the future.

•·         Check all the fascia and trim for deterioration

•·         Test your garage door beam sensor by waving a broom across the beach while the door is in motion.  The door should not close and raise back up if everything is working properly.

•·         Check the caulk around tubs, showers, sinks, shower fixtures, and toilets to make sure moisture cannot penetrate.  If the caulking is black or discolored that means that mildew has gotten below it.  This needs to be removed and recaulked to prevent further water damage to flooring or drywall.

•·         Drain and refill your hot-water heater to remove sediment.  Also test the heater's pressure valve according to the manufacturer's instructions.

•·         Check your attic for holes or thin spots in the insulation and make sure that the caulking around doors and windows does not leak.

•·         Empty kitchen cabinets, pantries and drawers and clean out all crumbs, etc.  This will significantly reduce the chance of attracting ants and roaches.  Throw our anything that has expired.

•·         Wash windows, wipe down sills, and clean screens to allow the great light into your home.

•·         Dust your home thoroughly. Take everything off shelves, tabletops anddressers to dust. Now is also the time to get to all the places you've been neglecting throughout the year, including ceiling fans, above kitchen cabinets and baseboards and doorways.

•·         De-clutter your garage.  Sort your things into different areas of the garage; one pile to keep, one sale, and a bunch of trash bags for the rest.

•·          Wash out trash cans. To really clean garbage cans, spray them with a hose and dump out the water. Next, spray the inside with a disinfectant spray, scrub with a handled brush and rinse. Leave them upside down to dry.

•·         Deep clean your flooring. Have your carpets professionally cleaned and wax wooden floors.

•·         While you are cleaning the floors look for cracked or missing grout and repair quickly. A small crack in the grout or caulk can lead to an expensive repair later. If necessary, re-seal as soon as possible

•·         Clean upholstered furniture. Vacuum pillows, as well as underneath the cushions. Look for stains and clean according to the care label.

•·         Investigate all doors and windows for leaks and drafts, particularly near the corners. Look for peeling and chipping paint, which can signal water intrusion. Seal any open areas between the frame and the wall to keep out water, which can deteriorate building materials.

•·         Set your oven to self-clean. Be sure to wipe up major spills before setting it to self-clean.

•·         Clean out refrigerator and wipe all surfaces clean of stains or spills.  Check all your bottles of dressings, etc. for expiration dates.

•·         Vacuum inside closets and watch for signs of insects. Be sure that the closet or area is also clean and free of anything that bugs might find delicious. Dust, other insects, crumbs or food and beverage stains are all attractive to pests.  Now is a good time to donate items to local charities.

•·         Sweep porch and deck, as well as around doors and windows to get rid of cobwebs and debris.

•·         Clean the kitchen exhaust hood and filter

•·         Repair all cracked, broken or uneven driveways and walks to help provide a level walking surface

•·         Check the shutoff valve at each plumbing fixture to make sure they function

•·         Replace all extension cords that have become brittle, worn or damaged

•·         Look for burn marks at the main electrical panel; they can be a sign of arcinginside the panel, which can easily lead to a fire. Loose connections or damaged insulation can cause the arcing. Note: Only a qualified electrician should remove the front panel cover.

•·         Check all electrical outlets for loose-fitting plugs they are an indication of a worn out receptacle. Worn receptacles should be replaced as they cause overheating and fires. Also check electrical outlets and switches to be sure they work properly. If any switches, outlets or receptacles do not work, have a qualified electrician determine the problem and fix it to avoid fires inside the walls of your home.