Jon Zolsky, your Daytona Beach, Florida connection

Castaways Resort is a condo-hotel in Daytona Beach Shores.

16 units for sale today on MLS.

Prices for an oceanview studio start from $74,900 and up to $159,900. One of only few condo-hotel, where you can claim homestead and live full-time.

Since January 2008 only one unit sold in the resort, Asking price was $55,000. Sold for $50,000. As in other condo-hotel resorts, there is a serious gap between the asking and the seling price.

Jon Zolsky, Your Daytona Beach connections
www.BeautifulFlorida.com

People moving to Florida often complain that the taxes are high. At least the majority of them. Then there are always people who say it is low compared to their place, so we are not the cheapest, but not the most expensive.

However, we need to keep in mind that the State needs money and they get it one way or another. So, if something is much cheaper in other places, the State has the way to get that money imposing some other fees or taxes.

People, who come from the Carolinas brag about their very low property tax, but do they really pay less than in Florida? In both South and North Carolina if you make between $50,000 a year, your tax rate on every dollar on income earned is 7% and you will pay to the State $3,500. Add it to the low property tax, and you may notice that you can afford a luxury villa in Florida.

Property tax in Florida is set by Counties and cities and is not unified throughout the State. Millage rates vary from County to County and average just over 20, meaning that your property tax would cost you approximately $20 per $1,000 of value.

You can check you millage rate at Property Appraiser's office, as well as your taxable value, which is usually very different from the market value. Your rough calculation of the Property tax would be your taxable value divided by 1,000 and multiplied by the millage rate. For example, if you bought a home for $350,000 and your taxable value is $300,000 and your millage rate is 20, then you take 300,000 divide by 1,000 and multiply by 20. You tax is $6,000.

In the next installment we will look at homestead and Save Our Home exemption

Jon Zolsky, your Daytona Beach connection
www.BeautifulFlorida.com

My client, a couple from New York, is buying a condo. They liked the unit priced below any other one bdr. unit in the building. On a $230K unit we submit a $200K offer. They counter at $225K. We are trying to figure the trajectory, where we can get it. My guys would be happy to get for $210K, and ready to pay $215K. This is our goal, our magic number.

I am sure the agent representing the Sellers, does the same calculation, and I hope we have the same number in mind.

Ask my clients whether they want to counter at $210K, or they still would like to test the waters again and offer $205K. That's what they want. There is the understanding that $205 is unrealistic, and they understand it and are fine with it.

Submitting the offer for $205,000. Waiting and are ready to go with a higher number. The fax comes, the offer is signed at ....$205,000. I am looking at it in disbelief. I do not understand why the associate broker with tons of experience, who is representing the Seller, worked for my clients? She knew we were ready for higher number. Why didn't she advise her clients to counter? She just gave it to them and left them to decide whether they sign or reject.

By not advising to her Sellers, she allowed the price to be knocked $10,000 down. What good is it to set the right (realistic) price to win the Listing, if you do not fight for that price? There are so many situations that you have to agree so that the deal goes through, but that was not the case here, and she knew it...

There is one test that in my opinion she miserably failed. If she were the Seller, she would get her $215,000. She has the knowledge, has the skills, but after 25 years she is taking an easier route. They signed, screw them, that's their money.

Not that I am trying to pat myself on the back, but I would do crazy things fighting for the clients penny, actually I would do better for my clients than for myself. When I am hired, and my client want to pay 50c on a dollar, I go and offer, and do all the calculations, and the letter to the Seller in order to win. I would not feel comfortable doing it for myself.

But it is bothering that there are so many indifferent agents.

Jon Zolsky, your Daytona Beach connection
www.beautifulFlorida.com

I got that Closing yesterday. A small restaurant, the deal was very simple. The Buyer was buying a company, he is from Canada and he is working on his L-1 visa, so he needs a company that was in business for some time.

The agent, who called me, was very knowledgeable, pleasure to work with. The Buyer is not a native Canadian, he speaks English pretty well, but is a bit confused by all the different terminology, transaction details, and business details. He was always accompanied by a young smiling guy, who was translating and explaining things to the Buyer.

Later it turned out the guy was there for his wife, who is not only related to the Buyer, but is an agent. The smiling guy is not licensed.

I do not know what the arrangement was there, but the agent was, obviously, getting very little out of that deal. I felt sorry for him. He was easy to work with.

All the time in this transaction there was not a single time any tension, but it was sort of going along with it. The Buyer was not sure that I was telling him the truth, and confirming was always on the agenda. It was easy because there was all paperwork. No double books, no unaccounted stuff. Very clean, every piece of paper for all the years. The buyer knew there was no money, but he did not care as he already made the arrangement with the national franchise, and basically was taking the lease over.

My attorney was, as always, very professional. And with all that we were able to navigate between the Landlord, his Franchise, his immigration attorney, licensed agents and unlicensed 'friend'.

Me and my wife were the happy Sellers, enormously tired after 6 years of desperate attempts of making any sense of this business.

Now she will sleep better. This was sucking out all our energy. So, at least for now, we are officially 100% involved in real estate. And we wish the buyer the best of luck.

Jon Zolsky, your Daytona Beach Connection
www.BeautifulFlorida.com

I recently read a blog calling for using Common Sense. I commented, because certain statements were not making much sense at all.

I remembered about this Common Sense thing while driving from the showing. I veered from the Highway and picked a narrow road along the Intracoastal. Homes on the right side, and the river is on my left side. I enjoyed the view slowly (35 MPH limit) driving back to the office. The minute I crossed from Ormond Beach to Holly Hill the speed goes to 25 MPH. Nothing else is changed. Only the speed.

Speed limit is the law, and even the proponents of using Common Sense are very much for the law. So, if you drive 35 mph in Ormond Beach, you are a law abiding citizen. However, if you continue driving at 35 MPH, you are doing something illegal.

By the way, pretty much like with illegal immigration. You were 'driving' in America and it was fine, and then the visa date expired and you are suddenly illegal to the dismay of law abiding citizen. I mean that it is strange, that you can become illegal WITHOUT DOING ANYTHING.

However, in both examples there is no common sense.

If you are in Central Florida on I-4, the speed limit is 70 MPH. I can drive at this speed rain or shine, fog or hail. Is there any common sense behind it? Driving in thunderstorm when you can't see 5' ahead of you, you can legally still go 70 MPH. When in winter morning fog thickens, you can still go 70 MPH. And when it is a perfect sunny day, you still can go 70 MPH. What does it have to do with safety? Common sense means adjusting speed to weather and road conditions. Speed limit is only a measure, showing you the point at which the safety of your wallet is not guaranteed.

These quantitative measures are in place of qualitative, which we don't know how to set, and how to enforce. Hence those requirements to the heights of buildings. Anyone driving A1A through quiet Ormond-by-the Sea can "enjoy" a row of crappy 5-story buildings with flat roofs. Why dot the shoreline with so poorely looking condo buildings? Oh, because the height limit was 45' at that time, so the developer has no other way but go with 8' ceilings and flat roof, and that's why you practically do not have the view from the first floor as it is lower than the dune and State Rd A1A.

You see, the goal is the beauty. But it is so subjective, how on earth can you define it. So, criterion is not the beauty, but the height. How are you going to argue with that? One foot higher, forget it. Because we can't regulate the beauty, we regulate whatever we can regulate. The result is not the beauty but uniformed plain ugliness. And this is unfortunate. What Common Sense tell us about it. Well, for one, you can do it like they do it in US Virgin Islands. On St. Croix they limit the height to 6 stories... but you can go 9',10',11'..... so much for the freedom

Jon Zolsky, your Daytona Beach Connection
www.BeautifulFlorida.com