Ft Lauderdale Real Estate Review

I just listed a nice 3 bedroom 2 bath condo at 565 Oaks Lane Apt 203. The  unit overlooks the Oaks course at Palm Aire Country Club. Recently updated kitchen, Split floor plan. All windows have been replaced with impact resistant glass except for the sliding door. Washer & dryer in the unit. Enjoy two community pools and clubhouse. One is heated the other is not. Building is newly painted.

Asking Price is $349,000

See the complete listing details and photos here.

For inquiries or to request a showing call 954-895-2431

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Serving The Greater Fort Lauderdale area since 2006

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How can one area of the country see double digit declines in real estate values and another see double digit increases at the very same time? That is what is happening right now. Zillow's latest housing report shows Austin, TX has had declines of 10% year over year in September while Hartford Ct has had an 11.1% increase in values, all while interest rates are approaching 8.0%.

Of course supply and demand play a big part. Austin is a boom town. There is a lot of investor and builder activity and it may have been over built. Hartford is an older established NE city known for insurance more than anything. I am not going to try to explain why there is such a divergence in the direction of these local markets. The point here is all real estate is local. South Florida is different than both of those cities. There is less land to build on, the economies are completely different. Currently the Miami Metro area of which we are a part of is right in the middle of these two cities. Year over year for Sept 2023 is flat at 0.0%. 

There are a lot of moving parts when it comes to the movement in residential real estate values. Supply and demand, interest rates. The cost of renting versus owning. I like to watch the rental market. Rents are a leading indicator of values. Rents in South Florida are not rising as rapidly as they were. A lot of newly built apartment buildings are coming on line and could soften rates in the future. 

Residential real estate is hyper-local too. Within our metro area, some neighborhoods are doing better than others. For example neighborhoods that are popular for short-term rentals, the latest investing fad, have outpaced other neighborhoods. Ignore stats that look at the entire country as a whole. They have little relevance at all.

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In April The Real Deal featured an article that Fannie Mae keeps secret “blacklist” of properties. It reports that Fannie Mae keeps a list of 1400 condominiums that they will no longer finance. This list is growing and is currently more than 1700. It is supposedly to protect borrowers from unsafe and financially unstable buildings.

This is significant because Fannie Mae buys loans from banks, credit unions and other lenders that meet their standards and package them as Mortgage Backed Securities (MBS) to be sold to institutional investors. Condos that meet their standards have better rates and lower down payments from 5 to 20%. These loans are known as conventional financing. There are fewer lenders that will lend to condo projects that don't meet Fannie Mae eligibility. They will have interest rates generally 1 to 1.5% higher and down payments of 25% or more. 

The list is only shared with lenders. The only way most buyers find out is when they are turned down for a loan because the condo they are buying is on the list. Common reasons for making the list are insufficient reserves, insufficient insurance and pending litigation. Florida is among the states with the most condo on the list. This is one of the fallouts of the looming insurance crisis in Florida. I myself learned the hard way about all of this. I had a condo I own in Palm Aire under contract. The deal fell apart at the 11th hour because of recent changes to the master insurance policy deductible. That was all it took. I can this see this happening all over Florida. More so to older buildings and there are a ton of buildings built in the 60s and 70s in South Florida. 

Blacklisted condos can still get financed using non-conforming loans at a higher rate in most cases. This blacklist is only about 1% of all the condos in the country. Save yourself some trouble and expense if you are purchasing a condo and ask your lender if it is still Fannie Mae eligible before you go viewing them and making offers. 

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I am frequently asked by homeowners to remove photos of their home from my website. I have to tell them I can't do it. I understand the safety and privacy concerns they have, but listing photos are out of my control. All the major real estate websites get listings directly from the Multiple Listing Service (MLS). Agents and brokers like myself can have listings added to their website by purchasing a subscription to a service known as IDX. We have no control over which listing and photos show up in the MLS feed. If you see photos of your home on any site they they are likely on every real estate website you can can image and many more you have never heard of.

Listing agents and brokers sole control of the listing content and photos of the properties they have a listing agreement with. Only they can remove photos from their listings on the MLS. So before you start reaching out to all the real estate websites, just contact the listing agent that sold your home and request they remove the photos. Once they are removed from the MLS they will cease to show up of real estate sites. 

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As you may have heard recently some major insurers have exited the Florida market. This is causing rates to rise leaving some homeowners to have to resort to the state run insurer, Citizens. In fact Citizens is know as the insurer of last resort. Part of the problems is simply values and construction costs have risen so rapidly. But there is more to it than that. Here are 8 contributing factors to the insurance crisis in Florida. 

1. Hurricanes and Natural Disasters:

Florida is prone to hurricanes and other natural disasters, which can cause significant damage to properties. The frequency and severity of these events have increased, leading to higher insurance claims and payouts, which in turn increase insurance premiums.

2. High Risk of Property Damage:

Florida's geographic location and topography make it highly susceptible to property damage from hurricanes, flooding, and other weather-related events. Insurance companies view the state as high-risk, resulting in higher premiums to cover potential losses.

3. Cost of Reinsurance:

Insurance companies purchase reinsurance to help mitigate their risk of large losses due to catastrophic events. The cost of reinsurance, which has been increasing, is passed on to policyholders through higher premiums.

4. Litigation and Assignment of Benefits (AOB) Abuse:

Florida has seen a rise in insurance litigation and abuse of Assignment of Benefits (AOB). AOB allows a third party to make insurance claims on behalf of the policyholder, often leading to inflated claims and legal disputes, driving up insurance costs.

5. Rising Construction Costs:

The cost of construction and repair has increased, making it more expensive for insurers to rebuild or repair damaged properties. This also contributes to higher insurance premiums.

6. Regulatory and Legal Environment:

Regulations and legal framework in Florida can impact the insurance market. For instance, regulatory decisions, mandates, and laws can affect insurance pricing and availability.

7. Market Competition and Market Dynamics:

The competitive landscape of the insurance market in Florida, including the number and size of insurers operating in the state, can affect insurance pricing and availability.

8. Population Density and Growth:

Florida's population density and continuous growth increase the number of properties needing insurance coverage. A larger population also means a higher risk of claims in the event of a disaster.

Efforts are being made by the state government and insurance industry to address these issues and stabilize the insurance market, but it's an ongoing challenge that requires a multifaceted approach involving regulation, risk management, and public awareness. For the most up-to-date and detailed information, I recommend consulting recent and reliable sources on the current state of the insurance crisis in Florida.

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Homeowners have been falling behind on their HOA and Condo dues with more frequency lately. When money is tight and you are juggling bills the HOA or Condo dues can be tempting bill to let slide, partly because they don't report to credit agencies. Some have the misperception that the only consequence will be a late fee. It's a trap many fall into. Letting your HOA dues pile up can be very expensive and even cause you to lose your home in foreclosure. This can happen whether you own your home free and clear or have a mortgage.

Florida is a "Super Lien" state. One of 18 states where Condo and HOA liens have superiority to any other liens. This gives them the ability to foreclose in order to collect back payments. 

How long does it take for the HOA to foreclose?

First you have to fall behind at least $2500. Then the HOA or Condo will have their attorney subject your property to a lien which will include not just missing payments, but

1. Late fees
2. Interest up to 18% per month unless the HOA by-laws have a lower amount.
3. Attorney and court fees. These can be substantial.

In Florida the first step is a lien. Then a Lis Pendens notice is served. Both of these become public record. A lien will certainly have a negative affect on your credit. After the Lis Pendens notice is served a hearing is set where a Judge will determine the Final Judgement amount approving court and attorney fees. Then a foreclosure auction date is set at least 45 days later. From the time a lien is levied to the auction can be 3 to 4 months.

At the auction anyone can bid on the property. The high bid wins. The HOA will only bid as much as they are owed. If there is excess equity and investor will likely win the auction. Then they are the new owner and can force an eviction. I have seen Condo Associations win the auction. Force the owners out and rent the unit out while they wait for the mortgage holder to foreclose on them. It can get wacky. Don't let this happen to you.

How to prevent a HOA foreclosure

Before you end up with a lien on your property try to work out a payment plan with your association. Most of them will work with you to get you up to date. You can also pay off the lien anytime up to the foreclosure auction. Always consult an attorney. If your financial situation is temporary they can likely get the foreclosure auction delayed. Lastly it may be best to sell your home before your credit is further damaged and it doesn't look like you will be able to continue to make the payments. I see too many homeowners go through a constant cycle of having liens levied, then getting it all paid off, only to fall behind again and suffer the same huge expenses needlessly.

I have been helping South Florida homeowners in distress since 2007. If you need help avoiding foreclosure contact me for a confidential consultation.

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Today my listing at 4025 W. McNab Rd closed after just 5 days on the market and 30 days in escrow. The 3 bedroom 2 bath condo is ideal for an investment property. The Windward Lakes condo association has few rental restrictions and allows renting immediately after purchasing. It sold in an all cash deal for it's original asking price of $245,000. 

View the listing here.

If you have property in the area that you wish to sell contact me for a consultation at 954-895-2431.

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Serving The Greater Fort Lauderdale area since 2006

You can reach me 954-895-2431

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Banks really don't want to foreclose on homeowners. It is expensive for them. Don't ruin your credit or limit your future housing options. Watch this video on how to avoid foreclosure. Then take action before it is too late.

Thanks for watching. Contact me at 954-895-2431

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Serving The Greater Fort Lauderdale area since 2006

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My most recent sale was a one bedroom condo in the Eastway Harbor community, of Deerfield Beach, that closed on Aug 24, 2023.  I represented the buyer on this deal. It was listed at $300,000 and we negotiated a cash deal at $277,500 that included all the furniture. The market has soften a bit. This was a fair deal for all and it closed with no serious trouble. The buyer ended up saving 8% from the asking price. 

Eastway Harbor is a unique condo complex that has boat slips available at no extra fee. There is a wait list however for slips. One building overlooks the Intracoastal Waterway. Owners also have special access to a Degroff Park that is next door along the Intracoastal.

To see other units available follow this link

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Selling a home can be a complex and multifaceted process, involving various decisions and considerations that impact both the seller's financial well-being and the potential buyer's ability to secure the property. One option that has gained popularity in recent years is seller financing, a unique arrangement where the homeowner acts as the lender and provides financing to the buyer. This alternative to traditional financing methods offers several advantages for homeowners willing to explore this avenue. In this article, we delve into the benefits of seller financing for homeowners when selling their homes.

1. Expanded Buyer Pool

One of the most significant advantages of seller financing is the potential to attract a broader range of potential buyers. Traditional lending institutions often have stringent requirements that some buyers may struggle to meet, such as a high credit score, substantial down payment, or stable employment history. By offering seller financing, homeowners can open the door to buyers who might not qualify for conventional loans, expanding the pool of potential buyers and increasing the chances of a successful sale.

2. Competitive Edge in a Stagnant Market

In a slow real estate market where properties might linger on the market for extended periods, seller financing can give homeowners a competitive edge. Buyers who are finding it challenging to secure financing through traditional avenues might be drawn to homes with seller financing options. This advantage can help homeowners sell their properties more quickly, reducing carrying costs and the potential stress of a prolonged sale process.

3. Steady Income Stream

Seller financing provides homeowners with a consistent income stream in the form of monthly mortgage payments from the buyer. This steady cash flow can be especially appealing for those who are looking to supplement their retirement income or generate passive income from the sale of their property. Additionally, the interest charged on the seller-financed loan can offer a higher return than other investment options in today's higher interest rate environment.

4. Flexible Terms

Seller financing allows homeowners to negotiate flexible terms that suit their financial needs and goals. This flexibility extends to factors such as the down payment amount, interest rate, repayment schedule, and even the possibility of balloon payments. Such customizable terms can make the property more attractive to potential buyers who are seeking a more tailored financing arrangement.

5. Potential for Higher Sale Price

When offering seller financing, homeowners have the potential to ask for a higher sale price for their property. This is because the seller is providing a valuable service—financing—alongside the sale of the property. Buyers may be willing to pay a premium for the convenience of obtaining financing without going through a traditional lender. This can lead to a more profitable sale for the homeowner.

6. Tax Benefits

Seller financing can offer certain tax benefits to homeowners. By spreading out the proceeds from the sale over time through regular payments, sellers may be able to reduce the immediate tax burden associated with a lump-sum sale. Consulting with a tax professional is essential to understand the specific tax implications of seller financing in a given situation. You can also refer to the IRS rules for installment payments here.

7. Faster Closing Process

Closing a real estate transaction through traditional lending methods can involve extensive paperwork and delays. With seller financing, the closing process can often be expedited since the transaction is primarily between the homeowner and the buyer. This can be particularly advantageous for homeowners who are looking to complete the sale quickly.

Seller financing offers numerous advantages for homeowners looking to sell their properties. From expanding the potential buyer pool to generating steady income and offering flexible terms, this alternative financing option can be a win-win for both sellers and buyers. However, it's crucial for homeowners to carefully consider their financial situation, the potential risks, and seek legal and financial advice before entering into a seller financing arrangement. By doing so, homeowners can leverage this option to their advantage and successfully navigate the real estate market.

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Serving The Greater Fort Lauderdale area since 2006

You can reach me 954-895-2431

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