An appeal is obviously in the works, but it is unclear how long that could take. There is a 90 day waiting period before any amendments can make the (Jan 29th) ballot. This can postpone a general vote until November 2008. Marc Rubio (R-from Miami) is still adamant about this fight, stating “One way or another, we will give Florida taxpayers the relief they need”.

Marc Rubio has previously recommended that a property taxes be eliminated all together (for primary residences) and that the state sales tax be raised by 2.5% to a whopping 8.5%, the highest in the nation. We’ll see what the future holds for Florida’s residents.. property tax help and insurance help. This combination is vital as a catalyst to stimulate this market, as prices have already come down they would push buyers off the fence.. unless they are willing to lose the shirts of their backs in certain income and price ranges.

On the real estate forefront, the lack of property tax reforms raises the question of what will it take to kick this sluggish market back into gear? I see it in the eye of my clients as they ponder the monthly cost of taxes and insurance in addition to higher purchase prices (when compared to the past few years).

Especially when the future neighbor, who has lived there for 4 years, is paying about half of their proposed tax amounts. In the end, consumers are forced to make a decision to either overextend themselves, purchase smaller homes or wait on the sidelines for any tax reforms or breaks.

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An accurate and unbiased appraisal is the consumer’s first

I performed a viewing for an appraisal on a property in South Florida. There was damage to the property to put it midly. The most significant part was the mold growing in the bathroom and evidence of leaks due to half filled buckets in certain areas of the unit. There were water stains on walls and ceilings throughout the 1st and 2nd floor of this unit. I noticed a distinct smell (of moisture) that came from the downstairs half bathroom. I wondered how it must be behind (inside) the walls. I should mention that the central air conditioning did not work in this property and this only furthers the growth of mold. (Central A/C, by nature, is a de-humidifier, pulling water and moisture out of the air).

Appraisers are responsible, in their diligence of completing an assignment to speak with the management company or homeowners association to verify monthly/quarterly payment amounts and any possible special upcoming assessments. I was given the number to a management company that notified me that the association is now in control of this property, again. It became painfully obvious when I called the association to ask about possible assessments, that they mentioned the assessment paid in June of 2007 for Hurricane Wilma. Turns out the condo association was about the begin repairs on the roof from damage caused by Hurricane Wilma. That storm passed through this area in 2005, and here we are in 2007..! I also spoke with REALTORS® about the condition of the units that I was using as comparables and ask them about the buildings and maintenance issues to further verify what I already knew to be the case.. lack of good managing.

So in the end, the appraisal didn’t make their ‘magic number’. I received an email by the mortgage (who most likely got his license in a weekend course) and was clearly upset with my report. “This is a poorly done appraisal”, he said in his email. Fac is, the owner is out $325 for the appraisal and is probably upset with my report as well. In the long run, they are in better shape than if that refianance went through. Maybe they found another appraiser to go out and take the assigment as an invoice to get paid at closing.

I should mention, that the house had many materials on site, like tile, fixtures, sinks, sheetrock and more. When I asked the owner if they were pulling money to do the repairs, they confirmed it. I knew the value the broker wanted, I looked up the current mortgage on the property, and at a 80% loan-to-value ratio (minus what they owed), it just about matched the amount the owner said they were getting.

I should also mention, The order came in as a ‘no cash out refinance’.These homeowners would have been upside down in their mortgage, oweing more than their home is worth.. so in the end, being truthful and losing a client was the best thing for this borrower.

Even if they don’t know or care to admit it, I did my job to provide and unbiased opinion of vale. In the end, that protects the consumer from predatory lending. All in a day’s work for an ethical appraiser.

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Here are some thoughts for consumers, in order to help any undue stress to homeowners that are selling or refinancing. We hope that you will understand more of the things you can expect from your appraiser that comes to do the inspection/viewing of your home. It is smart and helpful to have this needed information available as preparation for the appraiser when they come to view/inspect the property.

SOME PREPARATION ON YOUR PART AS A HOMEOWNER:

• A home appraisal is normally ordered once your mortgage broker or bank has your completed application and paperwork. Before they can submit the loan to the bank loaning you the money, a home appraisal is needed.
• Be ready for a phone call to set the appointment once your broker or bank has all your documents. Be sure to answer calls from unknown numbers to avoid phone tag and delays. Making your home presentable may be a good idea at this time.
• Any upgrades/renovations since you moved into the house can be typed onto a ‘brag sheet’. You can decide whether to type them in order of importance from major renovations and remodeling first OR by date. I prefer to see the time line and then I highlight the major repairs or renovations. Computer printouts are preferred over handwritten notes. Your brag sheet will allow the appraiser to take or make more notes when viewing the property.
• If is a single family home or a townhouse, a copy of the survey of the property is helpful (if it’s available).
• Recent inspection reports or other reports that may indicate improvements to the property. (termite reports, etc)
• If you had a recent home appraisal that was done on the property within the past few years, make it available to the appraiser.
• Permits are a big deal if you have made any major renovation or additions. Copies of permits are best. This allows the appraiser to focus on the property while they are on site and review the permits at a later time.
• Copies of tax bills, title policy (with legal description of the property) are helpful in counties where records are not that great. Also is a bonus on new construction and may help the apprasier complete the assignment faster.
• If you live in a community that has a Condo or Home owner’s association, provide phone numbers for that association.
• Information of dues to any Homeowners Associations or Maintenance Companies (ex. 440 per Quarter, $180 / month) and any special assessment amounts that are expected will help also.
• Be sure that proper payment of the appraisal has been done or is available at the time of viewing the property. A bounced check will most likely delay delivery of the report to your mortgage broker or banker.
• All rooms in the home/condo/townhouse, need to be accessible, including bedrooms, bathrooms and areas of the home. Normally, the attic is normally not inspected in Florida, unless its an FHA loan. Please note that if a room that is locked and will require a second trip, you normally will have to pay another trip fee of anywhere from $75 - $100 and your report will be delayed.
• Conplete any maintenance or repairs. Although some minor details may not seem like much, your home will give off an impression of lack of maintenance. Broken windows, runny toilets, leaking sinks are not the most desired things for your appraiser to see during the inspection time. Clean the place up, as you would when you go on a job interview or a date!

INSPECTION (expectations):

• Your appraiser should be on time, but prior appointments, traffic or other delays may mean your appraiser is running a little late. Wait as long as you can so you can avoid a rescheduling (and possible additional fee if they have not called you).
• Your appraiser will be taking lots of photos, and may just knock on the door to let you know they are going to measure the outside of the house. This is a good time to let them know if you have a dog and tie him/her to a tree or make other arrangements. If you own a condo or townhouse, then invite them in and allow them to start taking notes and measuring, to get a feel for the unit.
• Once the exterior of the house or the inside of the condo is measured, you will be ready for the basic questions about your unit and the complex or association dues and other things related to your unit/home and the history of remodeling, etc.
• Please note that the appraiser will be taking photographs of the inside of your home, including bathrooms and bedrooms. So don’t be surprised when this happens, as its normal procedure. The bank wants to see the interior of your home and the appraiser wants to document things for liability purposes.
• If you have prepared any information is should be given to your appraiser at this time, to ensure an accurate home appraisal.
• Offer the appraiser your phone number, in case the appraiser needs to ask you any questions that may come up later.

BE PATIENT & WAIT:

• Although most assignment are completed within 48 hours after the inspection, sometimes there are delays for unkown reasons. Any difficulties in the report or gathering and confirming of data may delay the final re port aday or so. Please don’t keep calling the mortgage broker, as they will call the appraiser who is trying to focus on your file and report.
• From experience, many appraisals are ordered towards a little late and the more you call your broker to inquire, the more they will call the appraiser and the harder it is to work within this initial 48-72 hour time frame. Sometimes more research and verification, an extra drive to photograph and see other sales will get you a higher value.
• Your appraiser cannot tell you the value of the house, give you a range of the value OR discuss any other matters of the homes perceived value. Appraisers are bound to confidentiality by USPAP law, to discuss details of the assignment with only the bank or mortgage broker. Plus, the value amount is not known until the report is completed with many variables in play.
• This is a common misconception, but you MUST request your copy of the report from your mortgage broker. The appraiser cannot send you the report. Again, USPAP law states that appraisers can only deliver the report to the client (lender) not the borrower (homeowner or seller).

A real estate appraisal considers many different factors and details of other sales in your area, so a value is not known just from inspecting the property. So don’t ask at the inspection, because even IF they knew, legally they can’t tell you anything about value! Comparables must be viewed, data of nearby sales must also be confirmed.. so dont ask!

Remember, the client is the person or company that orders the real estate appraisal. The borrower (or buyer) pays for the real estate appraisal, but the report can only be delivered to the client, who is the lender/broker. The borrower can request the report from the lender / broker.

USPAP* is written, published, updated and ammened by the Appraisal standards board (ASB). *“USPAP represents the generally accepted and recognized standards of appraisal practice in the United States.”

Appraisers must comply with USPAP’s rules and guidelines regarding reporting, record keeping, confidentiality, ethics, and other standards.. The preamble to USPAP covers these guidelines.

Consumer & Brokers: Advisory Opinions are not a part of USPAP, but are to illustrate examples of how to apply USPAP to certain conditions or sample situations. Here are two samples on: (for homeowners)Inspection of the subject property (AO2), (for brokers) re-assigning reports (AO26).

More information can be found at: Appraisal Foundation’s website.

Hope this helps.

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This map will give you an aerial view of the infamous Peanut Island.

The videos are linked to the same ones throughout this blog.

Click on the image below to view the Google map Peanut Island.

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Wide open views of water, exotic cars, and lots to do.

The plants providing some charm and cover.

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West Palm Beach Intracoastal waterways.. a unique system of navigational canals throughout Florida. The perfect scenario for boaters and waterbugs.

Cruise the Intracoastal or head to the sea,. depending on the  conditions and your intents. Plan accordingly to maximize your fun! 

Consider your destination and options for various local boat ramps.

Sure those seagulls are cute..
but have you ever seen them steal?
( See video below! )

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