Peter Holahan

In preparing your home for sale, this has never been more true. We are in a buyers market and sellers must do all that they can in order to make their home stand out among all the other similar homes that are for sale. Much of this can be done for little or no cost and the result can add thousands of dollars to your bottom line. More importantly, it can reduce the amount of time your home stays on the market, thereby allowing you to get to where you're going quicker.

Let's start with curb appeal. You need to entice potential buyers to get out of the car. What do you see when you drive up to your home? Does it give you a positive impression? If your grass is brown or in need of a haircut, take care of it. How about the shrubbery? If it is dead remove it. If it is overgrown, trim it. These are no cost items. even if you replace the dead shrubbery you can do it with a minimal outlay of cash. Repainting the front door and replacing a worn lockset will definitely leave a good impression on your potential buyers. Also, if any screening is torn either repair it or remove the screen.

Once inside, pay attention to the amount of clutter in your home. Removing every item that is not essential will make your rooms appear larger. If necessary, put a fresh coat of paint on the walls and make sure all of your rooms have been cleaned, especially the bathrooms.

Remember, you will only get one chance at making a good impression on this buyer. Make it count!

Short Sale - Simply put, a short sale happens when a lender agrees to accept less than the outstanding balance of the loan on a property.

How will it effect my credit? The effect on your credit score will show up as a pre-foreclosure in redemption status, which will result in a loss of 200 to 300 points. If you had a previous FICO score of 700 you will see it fall to somewhere between 400 and 500. Generally, a waiting period of at least 24 months will be required before getting another loan.

Can the bank come after me for the difference in sales price and balance of the loan? Yes. The seller could be subject to a deficiency judgment for the difference between the loan amount and the amount paid to the bank from the sales proceeds.

If you are considering a Short Sale of your home, consult with a Real Estate Attorney before proceeding.

Federal Housing Administration loans can be a very good deal for homebuyers, especially those who don't have a lot of cash or whose credit rating isn't stellar, experts say. FHA loans now account for 20 percent of new mortgages, up from 3 percent in 2006. What's more, the number of authorized FHA lenders has increased 500 percent in two years.

Other benefits of FHA loans include easy loan modifications for borrowers who fall behind, easy refinancing plans if rates decline, and low rates overall, which don't rise if the borrower has a low credit score. There are no income restrictions on FHA loans, so even borrowers with good incomes may find them attractive.

FHA loans still require a pre-settlement inspection of the home, but the process isn't nearly as arduous as it once was, says George Hanzimanolis, past president of the National Association of Mortgage Brokers.

Source: CNNMoney.com

If you are a home buyer wondering if this is the right time to purchase, consider these new numbers. Nationally, according to the Florida Association of Realtors, in February new home sales rose 4.7% over sales in January, while Economists had predicted a decline in sales during that same period of 6.8%. Also, according to the Federal Housing Finance Agency, U.S. home prices rose 1.7% from December, 2008 to January, 2009(http://www.floridarealtors.org/NewsAndEvents/n1-032509.cfm).

With interest rates beginning to rise, sales and prices increasing and a great selection of homes still available, what are you waiting for?

For information regarding real estate in Jupiter, Juno Beach, Tequesta, Palm Beach Gardens and North Palm Beach, Florida, please go to my website www.LuxuryJupiterHomes.com.

So, Palm Beach County and State of Florida residents, didn't we all jump for joy that we were finally going to see a reduction in our property taxes? Why, we're getting a two times increase in the Homestead Exemption. In addition, because of the falling property values, our appraisals should also drop, thereby further lowering our tax liability, right? In the words of sports announcer Lee Corso, "Not so fast my friend".

How many of us have heard the term "Roll Back Tax Rate"? This is something that is calculated each year by taxing authorities that when applied to the total taxable value within their jurisdiction allows them to produce the same amount of dollars as they did in the previous year. It reminds me of something akin to my developments HOA dues increasing, not because we are receiving any additional amenities, but because of the foreclosed homes that are no longer contributing to the budget. Kind of like "Roll Back HOA Dues".

There are some bright spots, however. We did get the portability issue passed, that allows sellers of homes to take the increased value in the homes they have sold and apply it to reduce the taxable value of the new home they are purchasing. For example, if the market value of your homesteaded property is greater than its assessed value, you are allowed to transfer up to $500,000 of your actual assessment cap savings to your new property. Say your market value is $250,000 and the assessed value is $175,000 your assessment cap is $75,000. Now, lets say you are purchasing a home for $300,000. By backing out the assessment cap of $75,000 your new assessed value is $225,000, and after applying the $50,000 Homestead Exemption your taxable value is now $175,000. Without that portability, the taxable value on your new purchase would be $250,000. In Jupiter, Florida where I live, with an typical millage rate around 2%, that represents a savings of $1500!

The bottom line is that there needs to be a defined intake of monies to run each municipality. I think we all know that, absent a decrease in the budget, any benefit that we see as taxpayers will be balanced on the other side of the equation by an increase in taxes. Just one man's humble opinion. What do you think?

For information on homes for sale in Jupiter, Juno Beach, Tequesta, Palm Beach Gardens and North Palm Beach, Florida please visit www.LuxuryJupiterHomes.com.