The September 2010 Case-Schiller Index showed the slowest year-over-year growth for any month in the year. Property values rose only 0.6% for September 2010 over September 2009.
The two biggest factors seem to be over-supply of homes and the economy (i.e., almost 10% unemployment). The CEO of homebuilder D.R. Horton recently said he expects sales to remain weak in 2011. He said the company would adjust price points to demand (editors note: seems to be indicating price reductions).
Here's some information from Case-Shiller Index of interest:
============================================================
1-mo 3-mo 1-yr 2-yrs 3-yrs
earlier earlier earlier earlier earlier
============================================================
US Composite-20 -0.71% -0.34% 0.59% -8.75% -24.63%
New York -0.34% 1.01% -0.13% -8.91% -15.41%
Miami -1.24% -0.87% -2.71% -18.51% -41.65%
Boston -1.31% -0.98% 0.42% -2.92% -8.46%
Chicago -1.53% -0.11% -5.58% -15.61% -24.12%
The indications seem to be for continued pricing pressure in the near-term. As we stated earlier, we still believe there is potential for another 5% to 10% slide in home prices during the next 12 months in the South Florida real estate market.
If you are buying or selling a home, please feel free to contact me.
I have provided a link to a property search engine below where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Showing posts with label property. Show all posts
Showing posts with label property. Show all posts
Tuesday, November 30, 2010
Wednesday, November 24, 2010
US: Jumbo Mortgage Loans Up; To Increase Sales Of Luxury / Country Club / Waterfront Real Estate In Delray Beach / Boca Raton, Florida?
Lenders wrote $18 billion in jumbo mortgages during 2Q 2010, which is up 20% sequentially. Some analysts feel this reflects a confidence the stability of the US real estate market on the higher end of the market. Jumbo loans are usually more than $417,000; as such, these mortgages tend to be for homes in the higher-end of the market.
These jumbo loans are considered more risky because they are not guaranteed by FHA, Fannie Mae or Freddie Mac because the amount is above the conforming limits set by these government-backed agencies. Could this mean the higher-end real estate market is set for a rebound in price?
Working with both buyers and sellers in the country club and luxury housing market in South Florida, I can attest to the fact that there are worries on both sides of the equation. The result is gridlock as there is in many other segments of the real estate market.
As a Realtor who specializes in luxury, waterfront and country club communities, I believe the higher-end market segment is beginning to show signs of increased movement. The recent increase in the amount of jumbo loans underwritten is another sign things are moving in a positive direction.
Those who want to sell their homes have more potential buyers due to the increase in loan activity. On the other side of the coin, those who would like to upgrade into, or upgrade within, the luxury market now have more financial flexibility at their disposal to do so.
With the apparent mitigation of lenders' anxiety in writing the riskier jumbo mortgages, I think it will give buyers and sellers more confidence in the upper-market housing segment. As a result, I expect to see more activity in the next year.
If you are buying or selling in a luxury home or country club community or looking for waterfront homes in South Florida, please feel free to contact me.
I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
These jumbo loans are considered more risky because they are not guaranteed by FHA, Fannie Mae or Freddie Mac because the amount is above the conforming limits set by these government-backed agencies. Could this mean the higher-end real estate market is set for a rebound in price?
Working with both buyers and sellers in the country club and luxury housing market in South Florida, I can attest to the fact that there are worries on both sides of the equation. The result is gridlock as there is in many other segments of the real estate market.
As a Realtor who specializes in luxury, waterfront and country club communities, I believe the higher-end market segment is beginning to show signs of increased movement. The recent increase in the amount of jumbo loans underwritten is another sign things are moving in a positive direction.
Those who want to sell their homes have more potential buyers due to the increase in loan activity. On the other side of the coin, those who would like to upgrade into, or upgrade within, the luxury market now have more financial flexibility at their disposal to do so.
With the apparent mitigation of lenders' anxiety in writing the riskier jumbo mortgages, I think it will give buyers and sellers more confidence in the upper-market housing segment. As a result, I expect to see more activity in the next year.
If you are buying or selling in a luxury home or country club community or looking for waterfront homes in South Florida, please feel free to contact me.
I have provided a link to a property search engine where you can find and view listings. Contact me for more details on those listings and/or information in the area.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sunday, November 21, 2010
Predictions On Foreclosure and Short Sale Real Estate In Boca Raton, Florida
Executives at major US banks and real estate experts recently testified before the US Senate Banking Committee in Washington, DC about problems with the foreclosure process. Much of the recent problems stem from the litigation regarding the irregularities of the foreclosure process; prior pieces have discussed the issue in detail.
The Congressional Oversight Panel recently released a report predicting the potential problems in the foreclosure process could be significant. Greater disrputions than we've already experienced in the US housing market has been predicted as a possibility.
The current problem of lenders having to prove they own the mortgage loans is predicted to lead to a drop in foreclosure sales. The theory is the banks would favor short sales during this period of difficulty in actually foreclosing on homes.
Experts believe the delay in foreclosures will mean less price competition in the short-term and long-term a record high amount of bank foreclosures by mid-2011. The theory is that after the ligitation mess is worked out, the delayed foreclosures, and those that were in limbo because of the litigation, will all be worked out at the same time. Should that happen, one might expect to see US home prices fall yet again, as a new wave of lower-priced inventory enters the market.
As a Certified Distressed Property Expert (CDPE) and a Realtor, I can help both buyers and sellers navigate the ever changing distressed property landscape.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
The Congressional Oversight Panel recently released a report predicting the potential problems in the foreclosure process could be significant. Greater disrputions than we've already experienced in the US housing market has been predicted as a possibility.
The current problem of lenders having to prove they own the mortgage loans is predicted to lead to a drop in foreclosure sales. The theory is the banks would favor short sales during this period of difficulty in actually foreclosing on homes.
Experts believe the delay in foreclosures will mean less price competition in the short-term and long-term a record high amount of bank foreclosures by mid-2011. The theory is that after the ligitation mess is worked out, the delayed foreclosures, and those that were in limbo because of the litigation, will all be worked out at the same time. Should that happen, one might expect to see US home prices fall yet again, as a new wave of lower-priced inventory enters the market.
As a Certified Distressed Property Expert (CDPE) and a Realtor, I can help both buyers and sellers navigate the ever changing distressed property landscape.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Saturday, November 6, 2010
Real Estate Appraisals: What Sellers and Buyers Should Know
What some sellers and buyers do not understand is that a home appraisal can kill some deals.
Sellers must realize the home should be priced within a reasonable range of the appraised value. The reason is that a buyer may want to purchase the home at a higher price; however, the mortgage company may deny the loan based on the appraised value of the subject property.
Three common issues to be aware of as it relates to home valuation/appraisals:
1) In areas with many foreclosures and short sales, appraisers are sometimes left with little choice but to include them in the comparable analysis. This tends to reduce the appraised value of the subject property. Certain states that have a large number of distressed property sales, such as Florida, should be mindful of this.
2) Lower the credit score and/or the higher debt-to-income level, the greater the scrutiny of the colleral's value (i.e., home valuation). If there is some uncertainty, the extra focus on value could impact whether or not the lender approves the loan at the appraised value.
3) The fluctuations of the market can make some sellers apprehensive about selling at market value as they may start to believe the value will appreciate.
Sometimes sellers tend to want to get as much for the home as they can. And this is reasonable; however, it may wind up killing a deal when a lender is involved. On the other hand, some buyers fall in love with a home and are willing to pay more than fair value. If the buyers have "iffy" credit history or "just enough" to meet the loan-to-value requirements for a loan, they may be denied by their lender.
Please see some of our previous pieces on home and market valuations.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sellers must realize the home should be priced within a reasonable range of the appraised value. The reason is that a buyer may want to purchase the home at a higher price; however, the mortgage company may deny the loan based on the appraised value of the subject property.
Three common issues to be aware of as it relates to home valuation/appraisals:
1) In areas with many foreclosures and short sales, appraisers are sometimes left with little choice but to include them in the comparable analysis. This tends to reduce the appraised value of the subject property. Certain states that have a large number of distressed property sales, such as Florida, should be mindful of this.
2) Lower the credit score and/or the higher debt-to-income level, the greater the scrutiny of the colleral's value (i.e., home valuation). If there is some uncertainty, the extra focus on value could impact whether or not the lender approves the loan at the appraised value.
3) The fluctuations of the market can make some sellers apprehensive about selling at market value as they may start to believe the value will appreciate.
Sometimes sellers tend to want to get as much for the home as they can. And this is reasonable; however, it may wind up killing a deal when a lender is involved. On the other hand, some buyers fall in love with a home and are willing to pay more than fair value. If the buyers have "iffy" credit history or "just enough" to meet the loan-to-value requirements for a loan, they may be denied by their lender.
Please see some of our previous pieces on home and market valuations.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Sunday, October 3, 2010
Foreclosure Report: Almost 1 in 4 US Home Sales a Foreclosure During 2Q 2010
Many of my clients looking to buy are asking about foreclosures and short sales. With nearly 25% of all home sales in the US being a foreclosure during the second quarter of 2010, it does not seem like my experience is unusual.
How much longer can we expect high levels of foreclosure activity? According to Realty Trac, the market is on pace to work through distressed properties in about three years. Realty Trac thinks the distressed inventory will largely be worked through by the end of 2013.
How much of a discount to market is the buyer getting with a foreclosure? The latest data suggests a 26% discount when compared with homes not in the foreclosure process. During 1Q:10 homes in foreclosure sold for 27% below the market, according to industry data. So we can see, there's not much movement in price discount.
Is the percentage discount the same in every US home market? No. The highest discounts were in Ohio, Kentucky and California-- at about a 43% discount. So, you need to know your local market trends.
Lenders are expected to take over a record 1.2 million homes in 2010; this compares with around 1 million last year. To give an frame of reference, there were about 100,000 foreclosures in 2005 before the housing bust. And in a normal market, foreclosures account for less than 5% of sales, according to Realty Trac.
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
How much longer can we expect high levels of foreclosure activity? According to Realty Trac, the market is on pace to work through distressed properties in about three years. Realty Trac thinks the distressed inventory will largely be worked through by the end of 2013.
How much of a discount to market is the buyer getting with a foreclosure? The latest data suggests a 26% discount when compared with homes not in the foreclosure process. During 1Q:10 homes in foreclosure sold for 27% below the market, according to industry data. So we can see, there's not much movement in price discount.
Is the percentage discount the same in every US home market? No. The highest discounts were in Ohio, Kentucky and California-- at about a 43% discount. So, you need to know your local market trends.
Lenders are expected to take over a record 1.2 million homes in 2010; this compares with around 1 million last year. To give an frame of reference, there were about 100,000 foreclosures in 2005 before the housing bust. And in a normal market, foreclosures account for less than 5% of sales, according to Realty Trac.
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Wednesday, September 29, 2010
Florida's Broward County Median Home Prices Fall in August 2010
Florida's Broward County has seen median prices fall in August 2010 and some analysts think the trend could continue through the end of 2010.
Florida's Broward County posted 683 sales of existing homes in August 2010, down 5% on a sequential basis and 16% from August 2009.
The median single-family home price was $206,000 or 5% below August 2009.
The median price of a single-family home dropped 47% since the peak of $391,100 in November 2005.
What has been the main causes?
The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.
Where do we go from here?
Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.
I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Florida's Broward County posted 683 sales of existing homes in August 2010, down 5% on a sequential basis and 16% from August 2009.
The median single-family home price was $206,000 or 5% below August 2009.
The median price of a single-family home dropped 47% since the peak of $391,100 in November 2005.
What has been the main causes?
The high unemployment rate in Florida at double-digit rates, and an excess supply of homes with many foreclosures in the market.
Where do we go from here?
Zillow.com's chief economist said he'd be surprised if the South Florida region's home prices did not hit "bottom" in 2011.
I think it is important to watch the factors we have previously discussed in an article to get a sense of any particular real estate market (i.e., South Florida or Broward County).
Individual markets and submarkets are important to follow when you are looking to buy or sell a home. A person who understands these markets is very important when taking on a big decision, such as buying or selling a home.
If you are looking to buy, sell, rent or invest in the South Florida real estate market, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
http://michaelfriedman.rmlsfl.mlxchange.com/?Page=7395217 <--property search link to cut and paste into your Web browser
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
Wednesday, August 11, 2010
New Act Expected To Help Bulk Distressed Condominium Buyers in Florida
The large amounts of housing inventory needs to be reduced in order to prices for begin rising, in my opinion. The increased number of distressed properties has been a major reason for the enlarged inventory of properties. Investors with large amounts of pooled funds can help balance the housing inventory level back towards a normal equilibrium.
The Distressed Condominium Relief Act that took effect on July 1, 2010 should help increase the number of sold distressed condominiums throughout Florida. The new Act is primarily focused on condominium investors, as it pertains to bulk condominium buyers, which is defined as seven or more units within the same condominium project.
Below are some of the features of the new Act:
- Condominium purchasers as defined by the Act will no longer assume liabilities of the original developer. For those buyers who qualify, there is no need to set aside reserves for potential litigation.
- The new Act makes foreclosing lenders liable for 12 months of delinquent association fees when they take possession of the condominium; previously the lender was only responsible for six months.
- Condominium Associations will also be able to collect rent revenue from tenants where owners are not paying association fees. In addition, delinquent home owners could have their use of common area suspended subject to notice and a hearing.
The new Act should help both buyers and sellers. Despite the expectation of slightly increased prices due to the elimination of potential litigation reserves, buyers still have the opportunity to purchase condos at historically low prices. Current owners should get help with the burdens of association fees through the added collection of fees. This should allow for better up keep and improve pricing.
I am and working with and have worked with investors in the past. My Certified Distressed Property Expert (CDPE) designation should help in the buying and selling process. Those seeking to buy or sell bulk distressed condominiums please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
The Distressed Condominium Relief Act that took effect on July 1, 2010 should help increase the number of sold distressed condominiums throughout Florida. The new Act is primarily focused on condominium investors, as it pertains to bulk condominium buyers, which is defined as seven or more units within the same condominium project.
Below are some of the features of the new Act:
- Condominium purchasers as defined by the Act will no longer assume liabilities of the original developer. For those buyers who qualify, there is no need to set aside reserves for potential litigation.
- The new Act makes foreclosing lenders liable for 12 months of delinquent association fees when they take possession of the condominium; previously the lender was only responsible for six months.
- Condominium Associations will also be able to collect rent revenue from tenants where owners are not paying association fees. In addition, delinquent home owners could have their use of common area suspended subject to notice and a hearing.
The new Act should help both buyers and sellers. Despite the expectation of slightly increased prices due to the elimination of potential litigation reserves, buyers still have the opportunity to purchase condos at historically low prices. Current owners should get help with the burdens of association fees through the added collection of fees. This should allow for better up keep and improve pricing.
I am and working with and have worked with investors in the past. My Certified Distressed Property Expert (CDPE) designation should help in the buying and selling process. Those seeking to buy or sell bulk distressed condominiums please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-989-2100
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