Archive for November, 2006

Please Get Rid Of The Knob And Tube Wiring!

November 30th, 2006 categories: Tampa Real Estate, Homes For Sale in Tampa, Seminole Heights Homes, Home Inspection Tips, Tips for Sellers

One of the most important revelations of a home inspection I attended yesterday was that the home, built in the 1940’s, still has some live knob and tube wiring. Why was this important? Well, my client will be unable to obtain basic homeowners insurance on this home as long as this old wiring is still active. No insurance-no loan-no deal!

Photo of knob and tube wiring in a 1930s home in Pittsburgh, PA., taken by Laura Scudder and obtained from:http://commons.wikimedia.org/wiki/Image:Knob_and_tube_1930.jpg through GFDL licensing.

This wiring type was used in homes built prior to the ’50’s and does not include a ground wire, making it unsafe it the eyes of many insurers, including Citizens, the insurer of last resort in Florida. The cloth insulation deteriorates over time as well, making it a fire hazard.

So where do we go from here? Anytime I represent a client on the purchase of an older home, I make sure to have an inspection contingency that gives the buyer the right to cancel for any reason, based on the results of the inspections, be they a home inspection, pest (termite) inspection, structural inspection, etc. Most sellers, in this market especially, will accept such a contingency as long as the right to cancel period expires after a reasonable amount of time.

But in this case, the seller will not be able to sell the home to a buyer who needs a loan to purchase the home. Without insurance, the loan cannot be obtained and the buyer has an out, and the right to get her deposit refunded.

So the seller has to look for a cash buyer, who would not need insurance prior to closing, or remedy the problem. So the next step is an estimate to replace the old stuff with the new stuff. We’ll then ask Mr. Seller to pay for this replacement. And if the seller refuses? Then we’ll most likely play the right to cancel card and walk away from the deal.

The sellers could have made things easier on themselves by getting a home inspection prior to putting the home on the market. A good inspector would have notified the seller of the problem and the seller could have made the repairs beforehand. I always suggest a pre-listing home inspection. Sure, there is some additional upfront costs, but correcting this problem in advance could go a long way in making the sales process flow much more smoothly.

My client is a first time buyer, so this is something that immediately puts a bad taste in her mouth. The old wiring, along with some of the other old-house issues, may be enough to make her play the right to cancel card without asking for the wiring fix. We’ll see.

Sellers: Consider a pre-listing home inspection. If you have active knob and tube wiring in your home, nix it before trying to find a buyer!

Posted by Lenny Gurvich | No Comments »

Disclosing Death In A Home For Sale In Florida

November 28th, 2006 categories: Tampa Real Estate, Tampa Homes, Tampa Florida Real Estate, Home Inspection Tips, Tips for Sellers

I recently had a prospective client ask me to list his home for sale. During our initial conversation he noted that his mother had recently passed away in the home and that she was discovered by a visiting relative.

Sellers are required to disclose anything that will materially affect the value of the real property. So is this something he needs to disclose? I will surely be asked by buyers and/or their agents the reason why the home is for sale. “Estate sale”, will be my answer. If the question of whether or not the owner died in the home is asked, I ethically have to provide the correct answer. If it matters to the buyer, then the buyer needs to know. In this case it was a natural death.

But what are the legal issues? According to the 2006 Florida Statute 689.25:

(b) The fact that a property was, or was at any time suspected to have been, the site of a homicide, suicide, or death is not a material fact that must be disclosed in a real estate transaction.

So no, my client does not need to offer this information upfront on the Seller’s Real Property Disclosure.

Furthermore, the same statute states the following:

1)(a) The fact that an occupant of real property is infected or has been infected with human immunodeficiency virus or diagnosed with acquired immune deficiency syndrome is not a material fact that must be disclosed in a real estate transaction.

and

(2) A cause of action shall not arise against an owner of real property, his or her agent, an agent of a transferee of real property, or a person licensed under chapter 475 for the failure to disclose to the transferee that the property was or was suspected to have been the site of a homicide, suicide, or death or that an occupant of that property was infected with human immunodeficiency virus or diagnosed with acquired immune deficiency syndrome.

So Florida law protects sellers and their agents from not disclosing these things to prospective buyers. If you’re a buyer and any of these things concern you, don’t expect the answers to be offered by the seller. You’ll have to ask and hope someone knows the answer.

Posted by Lenny Gurvich | 1 Comment »

Southeast Seminole Heights Presents Holiday Home Tour

November 24th, 2006 categories: Tampa Real Estate, Homes For Sale in Tampa, Seminole Heights Homes

The Southeast Seminole Heights Civic Association is sponsoring their third annual “Homes For The Holidays” home and garden tour on Sunday December 3rd. Southeast Seminole Heights is bounded by I-275 to the west, 15th St to the east, Hillsborough Ave to the north and MLK Blvd to the south. Eleven homes will be featured on the tour and a map is available.

The Seminole Heights area of Tampa is very centrally located and due north of downtown Tampa. The area was developed in the early part of last century and has many historic homes, many of which are bungalows in the American Craftsman style of architecture. Many of these homes have been restored and the area has seen an increase in property values as a result.

Posted by Lenny Gurvich | No Comments »

Median Price Of A Home In Florida Same As A Year Ago, Condo Prices Fall

November 21st, 2006 categories: Tampa Real Estate, Tampa Condos, New Projects (Condos)

For the third quarter of 2006, sales of existing single family homes were down by 34% as compared to Q3 of 2005. Furthermore, the median price statewide remained about the same as it was for the third quarter of 2005.

However, the median price of a Florida condo did decline by 3% with sales down by 41% for Q3. With so many new construction condos as well as condo conversions, this property type was primed for a price correction and I think this is just the start for them. Many speculative investors bought condos that were recently converted from apartments with the intent to flip them to buyers as the market marched forward. Many of these are sitting empty or looking for rental tenants.

If you are in the market for a condo in Tampa, there are some good choices. When considering a condo ask yourself the following:

• Is there a large supply of this type of housing available?
• Are there many units in the building on the market?
• Are many of the units vacant?
• Why would I want to live here?
• Why would someone else want to live here?
• Is there anything special about the location or the building (project)?
• Are there any amenities available that I can’t get elsewhere?
• What’s the rate of turnover in the building?

The answers to these questions will go a long way in helping you to make a decision on what’s best for you now, and later, when it’s time to sell.

Posted by Lenny Gurvich | 1 Comment »

Tampa Listings Inventory Remains Flat

November 17th, 2006 categories: Tampa Real Estate, News on Interest Rates, Tampa Market Conditions

The amount of available residential listings in Tampa continues to remain steady, a trend that began back in early October of 2006. Since April, the listings inventory had been on a fairly rapid climb, while the number of listings going under contract had been falling.

These numbers began to stabilize in early October and have remained fairly flat since then. There was a slight downward tick in the number of listings available in Tampa as compared to a week ago.

As of this morning there are 7547 residential properties listed in Tampa with another 1682 listings under contract and pending closing.

Thirty year mortgage rates averaged 6.24% for the week just ended, the lowest we’ve seen since March of this year.

Data used is from the Mid-Florida Regional MLS and does not include any “For Sale By Owner” properties.

Posted by Lenny Gurvich | No Comments »

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