A Florida Housing Market Q & A
The Sun-Sentinel’s Paul Owers answers readers questions about the Florida housing market and how the latest real estate trends will affect you.
Q: What do you think will happen to the real estate market if they vote to do away with property taxes on homesteaded properties in Florida?
A: The short answer is that people who intend to use homes as their primary residences would feel better about buying because their monthly payments would be more affordable. That could lead to a surge in sales, and some experts fear the [Florida mortgage loan] demand would help drive up home prices and again create affordability issues. But Lewis Goodkin, a Miami real estate consultant, is skeptical of that scenario and said he doubts that the market ever will reach the level it did in 2000 to 2005.
Q: I am in a real estate nightmare. I accepted an offer to sell my home in November with a closing in December. To date, I have not closed and the buyer’s agents and mortgage lenders will not explain the delay. I have hired an attorney, and even he can’t get any information. Can I try to sell my house to someone else if I get an offer? How can I find out what is causing the delay? Do I have the right to know? If this is how people are treated, I can understand why the housing market is in such a slump!
A: Your attorney is best suited to answer questions as they relate to your specific case. But Beverly Rothstein, an agent for Exit Team Realty in the northwest Broward County housing market, said you might want to entertain backup offers until the matter is resolved. Make sure potential buyers know that you have another deal pending. Generally speaking, sellers have the right to know what’s causing delays and they should demand that their real estate agents keep them informed.
Q: If I do a quitclaim deed to add my daughter’s name to my title, does that cause a reassessment and subsequent tax increase like a sale does?
A: No, provided that it’s done as “joint tenants with rights of survivorship” or through a legal trust. That’s according to Broward County Property Appraiser Lori Parrish. She recommends you consult an attorney for more information.
Q: Have you any feedback on the success of real estate auctions these days?
A: There are two main types of auctions: absolute and reserve. In an absolute auction, the seller is committing to sell the property to the highest bidder, regardless of price. Completed sales, then, always happen, unless the highest bidder fails to come up with the money, and then he loses his deposit. In a reserve auction, the seller retains the right to turn down the highest bid. These auctions aren’t as successful. The National Auctioneers Association says it does not have any statistics on the success rate of reserve auctions.
Q: I’d like to see you address the rent vs. buy debate given the current market conditions. For a couple like my wife and me, four years out of college, renting an apartment and considering taking the plunge into home ownership [and Florida mortgage borrowing], how can we justify buying (even an average-priced home in Broward County) and paying more in property taxes and insurance than we are paying now in rent?
A: Your question is one that many people are asking themselves in light of the huge property tax and homeowner insurance problems facing Florida. It sounds as if you’re better off renting for the time being. If, for example, a proposal to eliminate property taxes on homesteaded properties passes, then buying might make more sense for you. Another option - one that plenty of frustrated Floridians are taking - is to move to another state where the costs of home ownership aren’t as great.
