Archive for the 'Tampa Condos' Category

Tampa Condos: Tough Sell

March 30th, 2009 categories: Tampa Condos, Tampa Home Buyer Tips

E-mail of the day:

“Jason and I have decided against a condo …we are strictly going to be looking at houses in Tampa now!”

This has become a typical move once many would-be Florida condo buyers speak with a Realtor or speak with a lender.  The recent change in Fannie Mae lending guidelines have made it all but impossible to get on loan to purchase a condo in many condominium projects. And that in turn makes it all but impossible to sell the same. Condo projects in which 10%  or more of the units are owned by one entity do not qualify per Fannie guidelines. Same said for projects in which 15% or more of the association members are 30 days or more delinquent on fees. You can put many of the recent Tampa condo conversions into one or both of these groups.

This, in effect, will rule out all but cash buyers who will begin (continue) to pluck up the inventory in bulk deals I’m sure. Many of these projects have already returned to rentals in one form or another, and many others will continue to do so. Values will continue to deteriorate.

So condo buyers beware. Only the most established condominium buildings whose associations are in good financial health, will qualify for loans. Do your homework upfront and don’t waste time chasing something that won’t qualify for a loan.

Some related Tampa condo posts:

Tampa Bay Condos Attract Buyers By Using An Inexorable Force

This Just In: Speculators Are To Blame

Tampa Condo Clown In Demand

Posted by Lenny Gurvich | No Comments »

Insurance Changes For Tampa Condos

January 9th, 2009 categories: Homes For Sale in Tampa, Tampa Condos

A recent post regarding changes to Florida condo insurance requirements has generated a few questions. The biggest change is the requirement for individual unit owners to carry a policy to cover the interior of the condo.

According to Scarlet Doherty with The Webb Insurance Group in South Tampa, all condo owners will now be required to carry a policy that covers the interior of their unit. These policies are commonly known as stud-to-stud policies. Condo Associations maintain a master policy that covers the exterior of the building, but not the interior.

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According the Scarlet, the median cost of a stud-to-stud policy is around $600 annually. This is a cost that would be separate, and in addition to the portion of the condo fees that covers the association’s master policy. Most condo owners already maintain these policies but many do not.

SEE WHAT’S SELLING IN YOUR CONDOMINIUM

Own a Tampa condo? How do you feel about the new required insurance law? Feel free to comment below:

Posted by Lenny Gurvich | 3 Comments »

Madeira Beach Condo Buyer Gets “Free” 1964 Corvette

January 5th, 2009 categories: Tampa Condos

Received an e-mail from a broker for a Madeira Beach highrise condo project. These things usually don’t get my attention, but this e-mail had “Free 1964 Corvette” in the subject line. That did get my attention. I love old Corvettes, especially the mid-1960s vintages. So this condo developer is offering the car to the first closed buyer in the project. And let’s face it, if you’re going to own a beachfront condo in Florida, you may as well have a classic Corvette convertible to go along with it. Great incentive.

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Changes For Florida Condos in 2009

December 30th, 2008 categories: Tampa Condos, Tampa Home Buyer Tips, Tips for Sellers

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As we approach the New Year, Tampa condo owners and prospective Tampa condo buyers should be aware of some changes. For condo sellers in Tampa, you, or your Realtor, will have to make sure that a new disclosure is provided to your prospective buyers. Starting January 1st of 2009, Florida condo buyers will be entitled to receive a disclosure that specifies the rights of the condo boards, the rights of the individual unit owners, voting rights, and how meeting notices and other matters of governance are handled.

Even here at the end of 2008, condo sellers are required to provide a set of condominium documents to buyers, which I’m sure has all, or most of this info contained therein. But since these things are so damn voluminous, I guess the Florida legislature decided the more summary oriented disclosure will help buyers understand what they’re getting in to. Many condo buyers never bother to read the docs.  So if you’re condo seller, make sure you provide the new disclosure to your buyer. If you’re a condo buyer, it would behoove you to know your rights. You will be part of any association of condo owners. Read something.

The Florida legislature also made many changes to the statutes involving condos. Most of these changes became effective October 1st of 2008, but some make changes effective on January 1st of 2009. Many pertain to insurance, and if I’m a condo owner or condo buyer, that’s the part I want to make sure I understand.

If you’re a condo owner, you may also want to check with your insurance provider to make sure you’re adequately covered.

UPDATE 1/11/2009:

According to Scarlet Doherty with The Webb Insurance Group in South Tampa, all condo owners will now be required to carry a policy that covers the interior of their unit. These policies are commonly known as stud-to-stud policies. Condo Associations maintain a master policy that covers the exterior of the building, but not the interior.

The statute pertaining to Florida condo insurance (see paragraph 11)

Looking to purchase or sell a condo in Tampa? Give us a call.

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Own a Tampa condo? How do you feel about the new required insurance law? Feel free to comment below:

Posted by Lenny Gurvich | 4 Comments »

Tampa Condo Credit Gets Crunched

December 18th, 2008 categories: First Time Homebuyers, New Projects (Condos), Real Estate Market Reports, Tampa Condos

We work with a number of outstanding Tampa condo mortgage professionals. If you are curious to see whether loans are being approved for a particular condominium, give us a call.

The number of delinquent mortgages and/or mortgages in default secured by Florida condos is at an all time high currently according to Fannie Mae. So what does that mean for would be Tampa condo buyers? Well, in response to that fact, Fannie Mae has tightened up the standards for loan approvals for condos in Tampa (or anywhere else in Florida). This mainly applies to new condos or newly converted condos.

This is also bad news for sellers of these condos as well, as the pool of buyers who can qualify for these properties has dwindled. Many of the prospective buyers who may otherwise qualify for a loan, will be shut out because the property fails to qualify.

Basically, the downpayment requirements are now higher and the number of units that must be owner-occupied has risen as well. Standards on established condos are somewhat looser, but the fact is, buying or selling a condo in Florida just got a little harder.

Per Fannie Mae:

Requirements for Attached Condominium Projects in Florida:

“There are currently excessive unsold inventories of condominium project units in Florida
resulting from the increase in building new condominium projects and the conversion of
apartments to condominium ownership that occurred during the last several years. The
increase in the number of units available is one of the factors that caused home prices to
reach historical lows, particularly in the condominium market. As part of an ongoing
review of business activities, Fannie Mae assessed the performance of mortgage loans
secured by condominiums located in Florida and found that the number of loans currently
delinquent or in default is at an all time high. As a result, Fannie Mae is modifying some
of the terms under mortgage loans secured by attached units in condominium projects
located in Florida will be accepted.”

Fannie Mae memo

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