Allison Stewart BROKER/ASSOC/REALTOR ®St. Cloud Florida

As you are aware there have been recent changes made in Real Estate Appraisal practices which are having disasterous consequences and supressing the recovery of the housing market particularly here in Florida. Appraisers who are now assigned from a pool and are usually from out of the area, have been making aggregious errors in the estimation of property values.

SUPPRESSING VALUE AND ECONOMIC RECOVERY

They are suppressing the value of property in Central Florida, which is not only a disservice to consumers who are the key to the housing market recovery; but are, under the new guidelines, not allowed to consult with local area REALTORS® (who are State Licensed) and in the case of Real Estate Brokers, knowlegable area experts.

As a result of this rather limited pool of "pre-approved" appraisers home values are coming in drastically under current market value and transactions which should have closed are failing in large numbers. While foreclosures and short sales negotiated with lenders reflect an under market price-they are being used as the standard comparable in almost all cases.

CASE STUDY WHERE BUYER PAID CASH AND DISCOVERED HUGE EQUITY

In one such case a historic home sold the day before foreclosure preceedings for $85,000-the insurance company the buyer used valued the same home for $265,000.

NOT ALL SHORT SALES AND FORECLOSURES DEALS ACCURATELY REFLECT MARKET VALUE...

IF THEY DID THEY WOULD NOT BE DEALS OF THE DECADE

Florida is experiencing a housing market recovery,however it is greatly thwarted as transactions collapse under the new guidelines. Banks will not accept less than was negotiated, and in many (most)cases consumers are willing to make competitive offers, which later do not "appraise" under the new guidelines and shoddy appraisals these so called "experts" are writing.

LOCATION LOCATION

When comparing property values we have seen cases where the appraisers lack of knowledge regarding the differences in local neighborhoods has caused a devaluation of a property's worth in excess of $20-40,000.

Price is determined using several factors. Location, age, condition, improvements, and functionality.

METHODOLOGY OF FINDING THE VALUE

Replacement cost is one method currently not being employed. Neither is reproductive cost. Both of which would be more accurate representations of what a home's "value" is.
Highest and best use is only purposeful in estimating a commerical property yet we have seen references on residential properties regarding that term.

WHEN DISASTER STRIKES...

If there were to be a natural disaster for instance, reproductive or replacement appraisal methodology would be employed to determine the value of the property's loss. (In the billions) Under these guidelines that will be resuced to the millions. Which would mean less aid for Florida unless a double standard is in play.

CONSUMERS ARE AND HAVE BEEN THE DRIVING FORCE IN THE ECONOMIC RECOVERY

Florida has the ability to show enormous housing growth, and public awareness of this issue is important. Consumers are and have been the driving force to Florida's economic recovery via the housing market recovery. They are returning to the Real Estate Market only to be shot down and unable to close on homes as a direct result of this new law regarding HVCC Appraisals.

I urge you (Senator Nelson) to take a stand on this issue and am joined in this opinion by almost every Realtor, Real Estate Brokerage, Mortgage Company and Title Company who have been adversely impacted by this untenable law, which on a local level is causing harm to both consumers who wish to buy homes in Florida and professionals who are trying to sell them.
The result is continued property value, suppression of sales, which are the vital key to Florida's economic recovery.

Is that really what Mr. Cuomo had in mind? And if so, why?

Read more NAR member comments here

Disclaimer: Opinions expressed in this blog are entirely that of the writer.

WHEN SERVICE BUSINESSES CUT BACK DO THEY REALLY THINK NO ONE NOTICES? When was the last time you or your significant other went to a salon? Nail salons have gained huge popularity for a variety of reasons, including immigration eligibility by meeting the criteria of the E2 VISA requirements interestingly enough.

PUTTING YOUR FINGER ON THE PROBLEM

However, once establishing a regular clientele, most salon owners resort to cost costing devices and the quality of service seems to diminish.

The owners wrongly feel no one will notice. But regular customers really do.

Little things like the foam toe separators they suddenly replace with rolled up paper.

The lack of electric filing with the drummels to soaking for extended periods of time or using plastic tip nails to pry off existing acrylic applications.

There was no complimentary beverage or signature back rub when it was over....

Changes from just the last time about a month ago before the operating costs of that business cut deeply into the profit margin. Yet they charge the same, while offering less than they used to.

There is rent, electric costs, insurance, employee payroll, and the cost of products sold which all play important factors in determining service pricing. Recently, OUC here in Florida as well as several other power companies had a significant increase in the cost of providing electricity. Homeowners complained as the average bill increased by $200 from one month to the next for similar usage. Now averaging over $400 a month for a 2000 sq ft home. Up almost 80% of the cost to operate the same home 1 year ago.

Businesses however pay a higher rate than residential users do. One can only imagine how much their bills were impacted by the latest increase. In difficult economic times, cutting cost is the first pre-emptive steps taken to survive.

As costs rise both for businesses and private residences, so does the amount of disposable income proportionately. Absent are the crowds at Malls, Hair Salons, Nail Salons, Pet Grooming shops and grocery stores. Video rental stores are empty, so are most restaurants.

Real Estate is a service based business. It seems that when the last postage increase went through, the majority of junk mail stopped almost overnight. Certainly a response to the increased cost of marketing in that manner. Did customers notice? Probably when their trash cans got a whole lot lighter.

Service does not always translate to material items, it is simple stuff, like returning phone calls, responding to concerns, resolving issues, and investment of time- fortunately there is not a tax imposed on that yet. In tough times the level of service should increase to keep the customers you have. While income may be disposable, certainly customers should not be.

Are you cutting back? Do you think no one has noticed?

A Four point Inspection is sometimes required by Insurance Companies for the purpose of issuing a Home Owners Insurance Policy. A certified inspector will visit the home, and examine the crawl space, electrical system, plumbing, and roofing. They will put their findings into a written report including photographs.

Recently one of my customers was asked to have a four point inspection performed on a house he is attempting to purchase. A lovely vintage home, with large wrap around porch located on a tree lined street situated on a corner lot. The Inspector came, took pictures and issued a written report.

Crawl Space- is serviceable.

Plumbing is serviceable.

Electrical is serviceable.

Roof- serviceable, and estimated to have 5-7 years of life remaining.

Under notes: There was this comment:

The roof is original and is 94 years old. The house was built in 1915.

Now that is what I call a lifetime guarantee! Image that a 94 year old roof that "still has 5-7 years of life left"

FAMILIES TODAY COME IN ALL SHAPES AND SIZES TAKING A LOOK AT St.Cloud Florida, which is celebrating its 100th Anniversary this year, one sees an eclectic diversity of houses. There are still fine historic homes dating as far back as 1900 in St. Cloud, Florida which have been upgraded over time as well as the new housing which was built during the boom years 2006-2007. A reflection of how American families have changed and how their needs have evolved over time as well.

From the very small bungalow style homes which replaced the tents supplied in 1900's by the Seminole Land Investment Company, in Washington DC, to today's sleekly designed modern homes you will find them all here in St. Cloud, Florida.

St. Cloud, Florida is nestled along the shores of East Lake Tohopekaliga- a Seminole Native American word meaning "Sleeping Tiger" known to the locals as East Lake or Toho, it is an 11,000 acre fresh water lake with some of the best bass fishing to be found in Central Florida. As a result, it has attracted sports enthuiasts who enjoy fishing tournaments, watersports, and jogging trails along the St. Cloud waterfront.

Of the original 100 Historic homes, currently there are about 40% are on the market today.

These homes typically feature ten foot high ceilings, fireplaces and real wooden floors.

Many have been retrofitted with central heat and air conditioning, and have had upgraded plumbing and electrical work done with each passing generation.

These homes are unique. Rooms are typically smaller, but are very economical to own. Larger ones like the one shown here which was owned by a doctor in 1925, feature large rooms, large fireplace, butlers pantry and wood floors.

They date back to a time when St. Cloud, Florida was called "Soldier City" established by the Seminole Land and Investment Company in the late 1880's.

St. Cloud, Florida was incorporated in 1909 as a "City Celebrating Small Town Living"

The Grand Army of the Republic (G.A.R.) Memorial Building is on the National Historic Registry

During the Building boom of 2005-2007 Osceola County Florida became one of the fastest growing counties in Central Florida, specifically St. Cloud, Florida which again became the focus for developers.

What attracted them was the lush farmlands and large parcels of land they could build new modern housing on.

Developments featured many community features, influenced by what consumers deemed desireable. Communities within a community.

Club houses, community pools, gated communtiies, and easy access to all major roadways and Orlando International Airport were some of the contributing factors which lead to the growth of St.Cloud, Florida.

Today, these homes are very affordable. Many are offered for less than half of original asking prices.

As families change, the landscape of our community has changed along with them.

From the simple turn of the century homes to the modern sleek new style construction, St. Cloud Florida offers families of all shapes and sizes home which are designed to fit their specific needs. Because one size does not fit all.

Historic Homes

New Homes

They say timing is everything. A short sale closing in 7 days? Impossible. No, it happened. Through divine intervention, serious trust , perspiration, determination and a case of really good timing. It all came together.

We had been in listing limbo (the gray area) called pending for almost 12 weeks. It wasn't a house my buyer loved, but it was a good investment. Checking the change of status on MLS daily is a good habit to develop.

Seven days ago, a listing changed status as many do everyday. With the foreclosure clock tickling in what seemed to be accelerated speed, the nervous seller thought all hope was lost along with her beloved home. The buyers who had it under contract, would not make the closing deadline. The listing agent relisted the house and needed a cash buyer

NOVATION- THE MOTHER OF REINVENTING THE DEAD DEAL

I contacted the listing agent immediately. Turns out we once worked together. A friendly chat turned into a collaborative effort to save the seller from the throws of foreclosure, and to get my buyer the house she had dreamed of.

We submitted a cash offer, working late into the evening, getting the long distance buyer, seller's agent and myself, all on the same page with transfer of signed documents. Technology can be so helpful.

With all the papers signed, they were accepted the following day and sent off to the Title company along with an explaination that we HAD to close this one with 5 days to go.

The buyer had never seen the house- Trust was a key component here. Armed with a video camera and about 60 still shots, I was able to walk her through the home 1200 miles away. She instantly loved it and and we moved forward at warp speed.

We used wire transfer for the fund transfer and everythng was ready to go with 2 days remaining.

INCREDIBLE COMING TOGETHER

In an incredible turn of events, the seller would be saved from foreclosure on her credit, the buyer would get the home she abslolutely wanted, and listing agent and selling agent would both earn the respect , love and loyalty from their clients.

Thoroughout the weekend there was a flurry of activity in and out of the house. Interestingly, no one saw anyone else. Yet all played a vital role in a combined surprise.

The seller helped the Listing agent, scrub, clean and prepare the home for the new buyer. The buyer had planned to spend the night in the home day of closing. The home inspection was on Sunday.

Wednesday, the buyer flew in to attend the closing (still never having seen the house) After we signed the final documents, it was off to see the house, for the very first time. Upon arriving I gave her a welcome basket of wine, choclate and a gift card for incidientals, in addition to making sure the floor had been freshly mopped again after the home inspection.

Instead of dirt, debris, and a week's worth of work waiting for her, when we opened the door, it was spotless, shining and lovingly tended to. That was the best closing gift ever! The listing agent had given her new sheets and pillows for the futon the seller had left there, all cleaned and ready for its first guest-the new owner.

We can accomplish incredible things-when we all work together to achieve a common goal. Not every deal comes together, in fact many fall apart despite our best efforts. But going the extra mile in this case, made everyone a winner in the transaction.

The true unsung hero of this success story,wasn't the buyers agent who worked hard, or the seller's agent who also worked very hard, or the seller who was saved, it was the buyer, who acted on blind faith and trusted her Realtor enough to "go for it" based on some photos and videos.

Have you ever gone "Above and Beyond" to make a someone's dream come true? Share your story here.