Tampa Real Estate Blog

   I recently attended a seminar given by FAR (the Florida Association of Realtors) about the property tax legislation recently passed during the special session.

Prior to this seminar, I was against the changes our representatives made to 'fix' our property tax problems as I thought they did not do anything to resolve the biggest problem - gross inequity in the system, where next-door-neighbors, in similar homes, could have vastly different property tax bills each year.  And, although I still believe that not enough was done to bring equity back to property taxes in Florida, I do have hope.

There are changes that have already been made, and others that will be voted upon in the January 2008 Special Election (Primary Election), which will begin the process of bringing the real change needed to create an equitable property tax situation and a healthy real estate market here in Florida.  It is not perfect yet, but it is better than what we have now.

I am still concerned that the recommended changes could pass in the special election this coming January, and the state legislators, both Representatives and Senators, will use this as a photo-op and walk away, ignoring the real problems that still exist.  Those problems are potentially dire.  And, we know how lazy and unthinking politicians can become when they are actually asked to do make real changes (Remember the Home Owners Insurance problem - it is now worse than it was before the 'fixed' it).

However, I have been assured that there is a real consensus among lawmakers (and I know that the Florida Association of Realtors is committed to this) to continue the work to complete the process and create a fair property tax law for the state of Florida.  That being the case, I am likely to vote in favor of the proposed changes in the January 2008 election, but I will continue to work for more 'radical' change to provide real relief, especially for those living in the upper middle class homes found in the high demand neighborhoods of South Tampa, Davis Islands, WestChase, and more.

I live on Davis Islands and am astounded by some of the tax bills here -one new home could be taxed over $120,000 per year - and that's just for the taxes!  It is my belief that, just because one might be able to afford paying that much, they should not have to.  It isn't fair... to anyone!  I will continue to do whatever I can to make sure this issue does not go away until the real changes are made, and we have an equitable property tax situation here in Florida.

   Lately, much has been written about the mortgage failure rate, with particular attention given to the most unfortunate who have lost their homes.  It is a sad situation, but who is ultimately to blame?

Certainly, it is easy to point a finger at the Realtor®.  There are those who might mislead a buyer into thinking they can afford something more than they actually can.  However, a Realtor of high integrity, and with a comprehensive understanding of the real estate market isn't likely to do such a thing.  Why?  It's not good for business!  A good Realtor thrives on repeat business and referrals.  Would you refer or do business with a realtor again if they'd already advised you to do something that caused you to lose your home?  Probably not.

And, what about the lenders?  It is tempting to assign more blame here than to other parties to a transaction, as lenders have the ultimate power... They could have said "No" to applicants who didn't really qualify for the money they'd asked to borrow.  I have no pity for those large mortgage lending companies that recently went out of business, as their demise was their own fault.  They chose to make loans to the unqualified.

When people make decisions without asking the right questions, who is to blame when things don't go as they would have liked?  Not everyone can afford a million dollar home, and no amount of wishing will make it affordable.  Those who purchased more home than they should have are learning a tough lesson, but in reality, they only have themselves to blame.  Only they can be responsible for their actions and choices.  Buying a home is a wonderful and exciting experience, but make sure that your decisions are guided by practicality, and not by the need to impress the family, friends, and neighbors with the biggest or nicest house.

That being said, one should choose wisely the real estate professionals with whom they work, from the Realtor to the home inspector.  Look for integrity, not the most expensive car!  Trustworthy folks will help you understand the ramifications of your choices.  They can give you a pretty close estimate of what your house payments will be down the road, when the interest rate changes, or when you interest-only mortgage shifts into the time when the amount borrowed must also be included in the payment.

Unfortunately, when it comes to real estate, there are no free lunches!

    Many folks believe that the real estate market is suffering mightily.  While things are not what they were in 2005, they are not as bad as the media would have you believe.  Buyers are buying and homes are selling.  Unfortunately, many of the statistics reported by the media relate to the 'super-booming' market of 2005/2006.  It is very likely that those amazing days were a one time occurrence.  Today, we find ourselves in a more 'normal' market, where the real estate market is moving the way it did back in 2000 to 2003.  Those days were not bad ones for real estate.

Another misconception is that interest rates are high.  The phrase 'everything is relative' comes to mind.  Back in 2001/2002, when the last real estate boom was gathering itself for a wondrous explosion, interest rates were higher than they are today.  I purchased a home in October 2000 and paid 7.75% for a 30 year fixed rate mortgage.  That was the best rate available at the time and it was considered a great rate.  Today's rates are low by comparison.

The point is, it is my view that this is a great time to buy.  It is a buyers market and there are many amazing deals to be found.  Even more intriguing, there are lots of homes to choose from, which makes it much easier to find a home that meets your needs, and at a price that makes sense.