2010 is upon us and it promises to be another INTENSE year for Real Estate in the Tampa Bay area. There are a few preconceptions that today’s buyers have, that need to be discussed…

BELIEF #1: Finding a home to buy is going to be a fun easy process of selecting from a large inventory of homes.

REALITY: The inventory of non-short sale homes is VERY low. In some price ranges, the ones that come on the market priced right go under contract in 3 to 5 days. Buyers need to be able to react very quickly to new listings entering the market. As of year end, inventory was around the 13,000 home level—while this sounds like a lot, we’ve had several years of enormous inventory levels….we’ve had many months with over 20,000 active listings. Last time the inventory was this low was in March 2006.

BELIEF #2: Buyers think that they have two years to find a home because pricing will continue to drop for the next year or two.

REALITY: While prices will drop from 5-7% in 2010, interest rates will rise to at least 6% by the end of the year, and should be pushing 8% by the end of 2012. Waiting will cost thousands of dollars in the mid to long term.

BELIEF #3: All Realtors acting as Buyer’s Agents act in the same capacity.

REALITY: Nothing can be further from the truth. Most Realtors today act as Transaction Agents, meaning that they are agents of the transaction, having no fiduciary relationship to the buyer. Transaction agents do not operate in a capacity to talk value, pricing, or buying strategy/ negotiating with the Seller. On the other hand, a Realtor acting as a Single Agent has a fiduciary relationship with the buyer, has all the duties of a Transaction Agent with some important additions: Loyalty, Confidentiality, Obedience, and Full Disclosure.

A Single Agent has a fiduciary relationship with the Buyer, and has the right to talk about the value of home before an offer is written, having input on the buyer strategy, and can let the Buyer know if they are overpaying. Did you know this? Did you even know what your agency relationship is with your listing or buying agent? Florida Law presumes that we are all Transaction Agents unless we disclose otherwise. At Tampa Home Group, we provide this higher level of service to our clients, we choose to act as Single Agents, and we take the time to explain our relationship to you. As Buyer’s Agents, our commission is paid by the Sellers, so you pay us no commission.


Maria Hoffman
John & Maria Hoffman, Realtors
Keller Williams Realty
20701 Bruce B. Downs Blvd. Suite 200
Tampa, FL 33647
Direct line: 813-991-1406
Fax 1-866-897-0571

Friends,

Great news for anyone who missed out on the $8,000 First Time Homebuyer Tax Credit AND for existing homeowners purchasing another home--you now have until April 30, 2010 to write a contract on a purchase, and until July 1, 2010 to close on the home.

Who Gets a Tax Credit?

First-Time Homebuyers: First-time homebuyers (that is, people who have not owned a home within the last 36 months) may be eligible for the tax credit of up to $8,000.

Current Owners: The tax credit program now gives those who already own a residence a new incentive to purchase in the form of a tax credit of up to $6,500 if you have owned and occupied a primary residence 5 consecutive years during the last 8 years. The maximum purchase price for the credit is $800,000.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

Are There Income Limits?

Yes, for the complete details just shoot us a quick email at info@tampahomegroup.com and we'll e-mail you back a Tax Credit Summary.

Do you know anyone who is trying to take advantage of the market, but trying to go it alone?  Have they been frustrated?  Many buyers don't know that IT COSTS NOTHING for the professional services of our veteran BUYER'S AGENTS, who can help them avoid the pitfalls in today's market and achieve their goals while saving, time, stress, and money.

Our Tampa Home Group team has helped many buyers who have come to us after spending months on their own -- if you know someone like this, please call us so our team can be sure to give your associate or loved one the highest caliber service possible.

Click here to Search Homes Now .

We're bombarded daily with headlines about real estate, the economy, home prices...our commitment to our clients and friends, on a regular basis, is to boil down the national headlines and hype into what you need to know to make important decisions.

In a nutshell, expect interest rates to start climbing shortly.

To our clients who have already taken advantage of this buyer's market and these historic low interest rates, or successfully sold your home, congratulations!

To those who have been WAITING to take advantage of this market, it's time to jump.

Many analysts are predicting that interest rates will be rising within 180 days. No one has a crystal ball, yet let's not ignore the signs we see. Details attached.

For buyers who are financing, higher rates mean thousands of dollars in extra interest over the life of a loan.

For sellers, higher interest rates translate into a smaller pool of buyers who can qualify to buy your home.

If selling or buying has been on your back burner, the time has come to move it up front.

Where are we going in 2010? Is the worst over?

First, let's take a look at where we've been.

Late 2006 to present: We predicted the market was going to drop at least 20% per year for the next 2-3 years, and that’s exactly what happened over these past 30 months.

Spring & Summer 2009: Buyers jumped back in, finding value in the real estate market once again. Appraisal issues have kept prices down over the summer despite a healthy supply of buyers and strong sales. As we look back at 2009 we will find that home prices dropped at annual rate of 9-12 % not the 20% plus of 2007 & 2008.

What will occur in 2010?

We will see inventory start to build back up from November 2009 through February 2010, the best values based on price and condition will sell, with a large percentage of sales still coming from the distressed category. Expect low appraisals to remain an issue. 2010 should see an increase in bank-owned foreclosures on the market, 90% of these bank-owned will be priced under $175,000. Downward pressure will continue on prices. 2010 will also be the last year that we see interest rates below 6%.

Let's take a minute and look at the interest rates. What's keeping them low is the Fed's expansionary policies. The rapid increase in the money supply, funded by enormous purchases of Treasuries from banks, is holding down the short-term rates that the Fed directly controls. When the Fed cuts back its purchases of Treasuries, this will lead to higher interest rates. Don't be surprised to see home mortgage interest rates to be in the 8%-10% range by 2012.

THE BOTTOM LINE:

If you're thinking of buying real estate for investment or a upsizing/downsizing your home, now through mid 2010 is the time to do it!

Call us to make a appointment so we can be prepared for the great opportunities ahead. If you know of anyone who is trying to enter the real estate market, the market is complicated and this is not the time to "go it alone". Call us, and let's get them the help they need. We are never too busy to help your friends and family.

Respectfully,

John & Maria Hoffman, Realtors
Tampa Home Group
Keller Williams Realty
20701 Bruce B. Downs Blvd. #200
Tampa, FL 33647
Maria: 813-991-1406
John: 813-907-2555
Fax: 866-897-0571
mariahoffman@verizon.net
johnfhoffman@verizon.net
www.TampaHomeGroup.com

Monthly sales at 1,714, a level we haven't seen in Tampa in almost 3 years! Buyers are taking advantage of low prices & rates.

Inventory has fallen to an 8.34 month supply (off a high in January 2008 of 25 months supply).
Our sources inside the banks tell us that the supply of bank-owned inventory has yet to hit its peak. We will continue to monitor the market and keep you informed.

This week (July 20-24) I will be attending a sales seminar along with 4,000 of the nation's top real estate agents. We will be working on the best strategies to keep our clients ahead of the market and get through these tough economic times. No matter what is going on in the market, we are continually educating ourselves to help you reach your long-term and short-term goals.

My wife, and business partner, Maria, will be running the office. I will be checking voicemail and email several times a day. We're always here to serve you, your families, and friends.

Don't forget we have new phone numbers at our new Keller Williams office in the Central Bank Building on Bruce B. Downs Blvd. (See below) While the old numbers will continue to be forwarded to us for a few more months, we want to make sure you are always able to reach us.

Best wishes,
John Hoffman

John and I get asked the question almost daily from our Tampa real estate buyers, from luxury homes to investment property, "We really want a DEAL on a foreclosure...should we be going to the auction to get the best deal?"

The answer to that question is more complex than you might think. For a few willing to put in the hours and weeks of time and research, and the tolerance to put up with the potential frustration of homes coming off the table at the last moment, the answer might be yes. For others, once they understand what it entails, the answer is a resounding NO WAY!

I came across this article in Saturday, July 4th's St. Petersburg Times that explores the issues surrounding buying property at auction, and the obstacles to overcome. If you've ever wondered if you should be going to the auction to buy foreclosure investment property, reading this article would be a good start for your research. Decide for yourself. If you want to avoid the potential pitfalls mentioned in this article, you will probably decide to enlist the help of a professional Buyer's Agent, whose services are customarily paid by the Sellers.

To read the article, go to http://www.tampabay.com/features/homeandgarden/article1015010.ece.

By now you may have heard how new appraisal guidelines are affecting real estate transactions. If you are thinking of buying, selling, or refinancing, you need to be aware of what is going on. We educate our clients so we can help them stay ahead of the market. The link below is a great article that explains the issue well. Click here.

Link: Appraisers attack new HVCC rules