Think of them as Hollywood set decorators for the real estate industry; professional home stagers are getting paid to strip houses of their personalities, or at least the personalities of their owners, and “stage” them for sale. Charging up to 1,200 for a day, home stagers depersonalize lived-in houses to make them look like model homes. They rearrange furniture if it obscures anything that would help sell the house, and remove furniture altogether if it makes the home look drab.

If you are a professional home stagers working in Miami, contact us and we’ll add you to our Home Improvemnet section.

Via: Miami Herald (registration required)

I had no idea one of the most expensive homes in the country is located right here in Miami on Star Island. Forbes magazine released their list of the 10 Most Expensive Homes in the U.S.; and a home on Star Island got 7th place.

This sprawling estate is possibly the shiniest property on the aptly named Star Island—Shaquille O’Neal and Gloria Estefan also own homes on the man-made lozenge of land. The architecturally diverse buildings encompass a total of 13 bedrooms, with the main house alone totaling 6,650 square feet. It has a brick kitchen and library walls covered inScalamandr é silk, as well as a 10,000-bottle wine cellar and a gun safe/safe room, both protected by fingerprint scanners.

I want to thank my real estate agent friend Bryan Sereney for taking the picture of the Star Island estate. Bryan is a good guy, and has a unique approach to showing properties. He likes to take his clients up for a helicopter ride for a birds eye view of the city.

Via: Forbes

Mark Zilbert, president of Zilbert Realty Group, will be featured on ABC’s network news program, 20/20, this Friday, October 7, at 10pm.

No a stranger to the spotlight; Mark Zilbert recently garnered national attention after the launch of his company’s new product, CondoFlip, a patent-pending, web-based online application that lets preconstruction buyers flip their condos. The 20/20 hour-long special will focus on South Florida’s real estate market and the ongoing debate of boom vs. bust.

Via: 20/20

Last week, analysts raised a warning flag over the Miami condo frenzy because 19,660 units were just finished, under construction or in the planning stage.

As of today, analysts will have to increase their estimate of condo construction in the works by adding 5,000 more units, and that is based on just five projects that have won city approvals in the past week.

Here is a project list of new condo construction in Miami:

Brickell CitiCenter, won approval for a three-tower cluster on both sides of South Miami Avenue, with 2,424 units.

Icon Brickell, at 495 Brickell Avenue, won approval for three towers with 1,705 condos.

Soleil, at 3100 Biscayne Boulevard, with 288 condo units.

Urban River, won approval for two towers with 577 units in for a project in Southeast Overtown.

Ehden Placea, at 54 NW 27th Avenue, won approval for a 14-story tower with 57 units

From Miami Today:

“Those who try to downplay warnings in the marketplace go both ways - they say there’s no condo overcapacity problem, then state the reason is that most of the announced projects will never make it out of the ground, so the total in the pipeline is vastly overstated.
 
That’s well and good for develpoers - especially those promoting projects that are at or near completion who want to gloss over the chances of competitors. It’s not so good for objective observers who are trying to provide rational advice to investors.”

It’s can be a full time job keeping up with Miami’s changing condo market, but for those whose money is going to be on the line, es muy importante.

The Keyes Company has acquired Contemporary Realty. Contemporary’s president Joyce Steinhorn will continue with Keyes. Contemporary’s 30 associates will work from Keyes’ Wellington office.

Via: South Florida Business Journal

Sun-Sentinel reports real estate sales cool as average prices increase:

“Statewide median sales price rose 31 percent last month to $246,500; a year ago, it was $188,700. In 2000, the statewide median sales price for single-family existing homes was $117,100, which translates to an increase of about 97.8 percent over the five-year period, according to association records.”

Florida cities reporting lower sales last month compared to August 2004 include:

• Fort Walton Beach (where 380 homes sold for of 33% decline)
• Fort Lauderdale (where 966 homes sold for a 25 percent decline)
• Miami (where 1,106 homes sold for a 5 percent decline)

However, the average sales prices were up in each of these cities.

Florida cities reporting higher sales last month compared to August 2004 include:

• Orlando (where 3,418 homes sold for a 9 percent gain)
• Jacksonville (where 1,796 homes sold for a 15 percent gain)
• West Palm Beach (where 1,319 homes sold for a 5 percent gain)

The average sales price rose in:

• Orlando (up 43 percent to $248,000)
• Jacksonville (up 18 percent to $197,200)
• West Palm Beach (up 27 percent to $411,400)

Via: Sun-Sentinel

The quick buying and selling of real estate is often called “flipping.”

Definition of condo flipping on the Web:

• To buy and sell an condo equity within a short period of time to take profits is called condo flipping.

Some real estate experts have compared the frenzy of condo flipping to the late 1990’s when investors were busy buying and selling dot-com stocks.

Miami has one of the most active markets in the country for flipping, because so many condo units are under construction or in the planning stages.

Flipping real estate contracts can bring quick bucks, but here is the rub: profits are taxed as ordinary income, not as capital gains, if the buyer’s contract is not held for at least one year.

Most developers open resale offices to help buyers sell their units. They sometimes turn a blind eye to owners flipping because they rely on pre construction sales to secure financing. Lenders often require having a certain percentage of units pre-sold before issuing the money needed to build a project.

Some developers are becoming more cautious. To avoid flipping, many force buyers to close on the condo or face penalties.

However, investors and real estate agents have been able to get around many developer roadblocks by purchasing condo units under the names of other family members or friends.

Also, condo flips never appear in the public record because it is done through selling contracts during construction.

Some are speculating that investors who sink all their money into pre construction will be the ones who will lose the most money when the market is flooded with thousands of condo units in the next few years. Many may default on their mortgages or sell for a loss.

Experts are saying that if the market declines, Miami may again be at the center of a condo bust. There are more than 64,000 condo units under construction or in the planning stages, according to the city’s monthly development report. There were 11,000 units under construction, 23,000 approved and 30,000 in the preliminary or application phase.

Fort Lauderdale has 6,000 new condos planned for its downtown and West Palm Beach will add 6,000 new units to their downtown and along the Flagler corridor. Also, apartment buildings being converted to condominiums will add thousands more units to the South Florida condo market.

Questions or concerns regarding condo flipping will be responded to with immediacy.

Miami-Dade commissioners unanimously passed a record $6.8 billion county budget, lowering the property taxes and raising water and sewer fees.

Despite the rate decrease, most residents can still expect their taxes to go up slightly because of skyrocketing property values.

The county has benefited greatly from the real estate boom, getting an additional $192.4 million in its general operating fund.

Among the top programs receiving more money than last year:

• $36.3 million for employee merit increases
• $33.4 million for cost-of-living salary adjustments
• an additional $18 million for Jackson Memorial Hospital
• an additional $2 million for new parks programs

There are two new fire stations and two libraries in the works. The government also has a launched a new 311 phone center for residents to navigate county bureaucracy more easily.

Via: BlackEnterprise

The U.S. Department of Housing shows us how not to fall victim to loan fraud, as well as 11 Tips On Being A Smart Consumer. I wanted to summarize the tips for you, but after giving it some thought, I feel they all should be addressed: 

#1. Before you buy a home, attend a homeownership education course offered by the U.S. Department of Housing and Urban Development (HUD)-approved counseling agencies.

#2. Interview several real estate professionals, and check references before you select one to help you buy or sell a home.

#3. Get information about the prices of other homes in the neighborhood. Don’t be fooled into paying too much.

#4. Hire a properly qualified and licensed home inspector to carefully inspect the property before you buy it. Determine whether you or the seller is going to be responsible for paying for the repairs. If you have to pay for the repairs, determine whether or not you can afford to make them.

#5. Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.

#6. Do NOT let anyone persuade you to make a false statement on your loan application, such as overstating your income, the source of yourdownpayment , failing to disclose the nature and amount of your debts, or even how long you have been employed. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and can result in criminal penalties.

#7. Do NOT let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.

#8. Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert “N/A” (i.e., not applicable) or cross through any blanks.

#9. Read everything carefully and ask questions. Do not sign anything that you don’t understand. Before signing, have your contract and loan agreement reviewed by an attorney skilled in real estate law, consult with a trusted real estate professional or ask for help from a housing counselor with a HUD-approved agency. If you cannot afford an attorney, take your documents to the HUD-approved housing counseling agency near you to find out if they will review the documents or can refer you to an attorney who will help you for free or at low cost.

#10. Be suspicious when the cost of a home improvement goes up if you don’t accept the contractor’s financing.

#11. Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.

Questions or concerns regarding loan fraud will be responded to with immediacy

Source: U.S. Department of Housing

With the addition of our new appraisal tool, it has brought up some good questions about property taxes and home appraisals in Miami-Dade County. We will do our best to answer any related questions here.

Who determines the amount of taxes I pay?
The Property Appraiser is the county officer charged with determining the value of all property within the county for tax purposes.

While the Property Appraiser determines the value of the property taxes, the local taxing authorities decide how much money is required to provide services.

The Property Appraiser’s office does not determine the amount of taxes you pay. The taxes can increase or decrease depending on the millage rate set by the school board, commissioners and other taxing authorities.

The Miami Board of County Commissioners, municipal governments and various governing bodies set the millage rates for properties within their boundaries.

How does the Appraiser arrive at the value for my property?
To find the value of a property, the Appraiser must first know what properties similar to it are selling for, what it would cost today to replace it, how much it takes to maintain, what income it may produce, and other factors affecting its value. Utilizing these factors, the Property Appraiser assesses the property’s value. The three approaches to value are:

#1. Comparable Sales Approach - One way to assess the property’s value is to find properties like yours - located in your vicinity - which have been sold recently. Their selling prices, however, must be analyzed very carefully to get at the true picture.

#2. Cost Approach - A second way is based on how much money it would take, at current material and labor costs, to replace your property with one just like it. If your property is not new, the appraiser must also determine how much it has depreciated.

#3. Income Approach - A third way is used if you happen to own property that provides you with a rental income, like an apartment house, a store, or a warehouse. Here the Property Appraiser must consider such dollar facts as your operating expenses, taxes, insurance, maintenance, and the return most people would expect to get on this kind of property.

What causes my home’s assessed values to change?
Property tax is based upon the value of your property. When the market value of your property changes, so does your appraised value.

A property’s value can change for many reasons.  The most frequent cause of a change in value is a change in the market.

As older neighborhoods with good housing stock are discovered by homebuyers, prices gradually rise as the neighborhood becomes fashionable. In a recession, larger homes may stay on the market for a long time, but more affordable homes are in demand, so their prices rise. In a stable neighborhood, with no extraordinary pressure from the market, inflation may increase property values.

If you were to increase the total market value of your property by adding a swimming pool or second bedroom, the appraised value would increase proportionately. Similarly, should your property’s value be decreased by flood or fire, the appraised value would decrease to show the downward effect of this damage on the market value of your property.

State law requires the Miami-Dade County to appraise property at 100% market value. The Florida Department of Revenue conducts an in-depth audit of the tax roll every other year to ensure compliance. If the levels of assessment do not comply to the law, the tax roll will not be approved.

What steps do I take if I don’t think my appraisal is unfair?
A Notice of Proposed Taxes is mailed to all property owners no later than August 24th. The notice states what the assessed value of your property is and how much your taxes should be.

For a period of 25 calendar days after the mailing of the notice, the Appraiser’s office will provide property owners with an explanation of their assessed value.

If your opinion of the value of your property differs from the Property Appraisal, they suggest visiting their office and discussing the matter with them. If you have information to show that the appraised value is above the market value of your property, they will conduct a review. The purpose of the review - which is not yet an appeal - will cover the following:

• To verify your property record information
• To show how your value was estimated
• To determine if you qualify for any exemptions
• To be sure you understand how to file a formal appeal
• To discover if the value is fair compared with the values of similar properties in your neighborhood

Typically, property owners who follow this process are satisfied with the end result because they are exposed to sales activity and current costs in their area that must be considered in the appraisal process.

After talking with them, if you still find a significant difference between the appraisal and what you feel your property’s market value is, you may file a petition to be heard before the Value Adjustment Board.

When you receive your assessment notice in mid-August, read it for instructions about deadlines and filing procedures. If you need clarification, call the Property Appraiser’s office. Be sure you understand and follow instructions. A missed deadline or incorrect filing can cause an appeal to be dismissed.

An assessment appeal is an attempt to prove that the estimated market value of your property is either inaccurate or unfair. You are required to present evidence supporting your estimate of market value to the Value Adjustment Board.

The Value Adjustment Board has no jurisdiction or control over taxes or tax rates. Their only function is to hear evidence as to whether or not properties called to their attention are appraised at more or less than their market value. If such is the case, the Board has the authority to change the appraised value. They cannot change your appraised value for any other reason. The Board can also hear appeals on denial of exemptions.

How can I block property information?
Certain sworn personnel can block public access of their property information. For help on who qualifies and how to apply, please visit the Property Appraiser’s block public access page.

When should I receive my tax bill?
If you live in Miami-Dade, combined Tax Notices are mailed each year in November for the calendar year January through December. Taxes become delinquent on April 1 each year, at which time additional interest and fees are added to the bill.

According to Florida Statute 197.122, the taxpayer is “held to know” when taxes are due and payable. If a taxpayer does not receive a tax notice in November, it is the taxpayer’s responsibility to contact the Tax Collector’s Office to request a duplicate tax notice.

How do they calculate how much property tax I owe?
The assessed value provides the base for the equation. The formula is a bit confusing, but I will try to explain:

One mill equals $1 per $1,000 of property value.

You can estimate your property tax by using the assessed value, minus any exemptions, multiply by the millage rate, and divide by 1,000.

For instance, $100,000 in taxable value with a millage rate of 5.0000 divided by 1,000 would generate $500 in taxes.

The Property Appraiser’s office archives Millage Rate tables back to 2000.  You can download a PDF file here.

Where is the Miami Appraiser’s Main Office Located?
Miami-Dade County Government Center

111 NW 1 Street
Miami, Florida 33128
Suite 710 Public Information Counter

Phone: (305) 375-1205
Fax: (305) 375-3024
Hearing Impaired: TDD (305) 375-3607
Web: MiamiDade.gov

Office Hours are 8am to 5pm.

Question and comments about Property Taxes in Miami-Dade will be answered promptly.

Recently here at miamibeach411.com an on line mortgage application was added.

The purpose of an on line mortgage application is to condense specific personal data and match the data with a variety of mortgage products.

The borrower should determine if he/she has the capacity to repay the mortgage.  If the borrower in fact has the necessary “capacity”, the next step is to determine based on credit worthiness what products are available to them.

In most cases, an on line mortgage application should be completed (name, address, date of birth, and employment status).  Upon completion of the mortgage application; telephone contact should be made. 

When making contact with a mortgage professional, be prepared to release your social security number for free credit evaluation to be done.

Any questions or comments our on line mortgage application will be responded to promptly.

Related stories:
Florida Mortgage Application

Since the chief here added a very handy home appraisal tool to the site; and since he asked me my opinion of it,  here is my review of the Miami home appraisal tool.

Perhaps in the future we can “review” other products or items of interest which could lead to contraversy/insight.

Anyway, back to the subject at hand. 

Here is what I like about this appraisal tool:  Lets say Mr. and Mrs. Buyer are out shopping for a home; and, as most home shoppers do, they’re driving by some properties which may be of interest to them.  As they drive by a beautiful property, they jot down the address. 

When they return to a computer, they enter the address of the beautiful property..and ..walla they now have: a legal description, square footage, year built, the date the property last sold, and very importantly the amount it last sold for.

Now, the Buyers can determine with some expertise whether or not they wish to contact the owner, or their real estate agent for a viewing.

The only down side to the appraisal tool is the fact that it cannot produce an appraised value.  Appraised values can only be done by comparison of the property to 3 sold properties and that’s a process unto itself. 

One other drawback is that this tool can only be used for properties in Miami-Dade County.

Any questions or comments concerning the home appraisal tool will be responded to promptly.

Whether you’re buying your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your budget. These extra costs, could surprise you with an unwanted financial nightmare on closing day if you’re not prepared.

Read through the following checklist to make sure you’re budgeting properly for your next move.

1. Appraisal Fee - Your lending institution may request an appraisal of the property, which would be your responsibility to pay for. Appraisals can vary in price from approximately $175 -$ 300.

2. Property Taxes - Depending on your down payment, your lending institution may decide to include your property taxes in your monthly mortgage payments. If your property taxes are not added to your monthly payments, your lending institution may require annual proof that your taxes have been paid.

3. Survey Fee - When the home you purchase is a resale (vs. a new home), your lending institution may ask for an updated property survey. The cost for this survey can vary between $190 - $1,000.

4. Property Insurance - Home insurance covers the replacement value of your home (structure and contents). Your lending institution will request proof that you are insured as it protects their investment on the loan. Beware! Some homes may not be insurable. Make sure you have an insurability clause in your purchase contract.

5. Service Charges - Any new utility that services your hook up, such as telephone or cable, may require an installation fee.

6. Escrow and Document Preparation Fees - Escrow fees are split between the buyer and the seller in Colorado. However, additional fees will be charged for the buyer’s mortgage closing. This can include first and second mortgages. In addition to the “Doc Prep” fees charged by the lender, some lenders will e mail the loan documents and therefore the escrow or title company may charge a electric to paper fee.

7. Mortgage Loan Insurance Fee - Depending upon the equity in your home, some mortgages require mortgage loan insurance. This type of insurance will cost you between 0.5% -3.5% of the total amount of the mortgage. Usually payments are made monthly in addition to your mortgage and tax payment.

8. Mortgage Brokers Fee - A mortgage broker is entitled to charge you a fee in order to source a lender and organize the financing. However, it pays to shop around because many mortgage brokers will provide their services free to you by having the lending institution absorb the cost.

9. Moving Costs - The cost for a professional mover can cost you in the range of: $75-$200/hour for a van and 3 movers.

10. Maintenance or HOA Fees - Condos charge monthly Home Owners Association Fees for common area maintenance such as grounds keeping and carpet cleaning in hallways. Costs will vary depending on the building.

Just when you think you’ve heard everything here comes some new mortgage scams—Welcome to the world of “asset rentals” now being investigated by bank and mortgage industry fraud experts.

On some mortgage transactions borrowers are qualified based on cash reserves and on proof of employment. Now there are companies who advertise they will “rent” you the reserves and “create” your employment.

It works like this: Say your loan officer discovers that you lack the financial wherewithal needed to qualify for the mortgage you want. Rather than lose your business, the loan officer turns to a service that offers’’ asset rentals.’’ For a flat fee of 5 percent of the amount you need, the service will verify to anyone who asks that the $100,000, $500,000 or $1 million in bank deposits you’ve claimed on your loan application documents are yours.

I don’t know about you, but for me I don’t think I would sleep well in the bedroom of a home that I purchased under fradulent circumstances.

Mortgage scams hurt lenders and their consequences reach out to hurt the public in general.

Questions or information regarding mortgage scams will be responded to promptly.

Source: Miami Herald (registration required)

Interesting how major airlines are offering bushels of frequent flyer miles if you sell or purchase a home using their sources: American Airlines recently sent me this post and I would have a difficult time not checking it as it could be a free excursion and I love a freebie.  FYI a property which sells for 350,000 qualifies for 70,000 air miles.

American Home Miles provides a handy calculator which will determine how many miles are awarded based on the sales price of the property. 

Also see the American Airlines Advantage Program which specifies choices of awards.

Questions or comments regarding frequent flyer air miles in conjunction with the purchase or sale of a property will be responded to promptly