I attended a very informative windstorm insurance session at the Miami Realtors Association this afternoon. The presentation by Lee Gorodetsky, The Home Insurance Guru and President of L & S Insurance, was my third insurance update of the year because that is how much of a moving target Florida insurance has become.
So why is property insurance a more important issue than taxes in South Florida? It is not because hurricane Sandy is churning off the coast of our neighbors in the Bahamas. It is because we only have a sales tax and property tax, no state income tax and Citizens, what has been the major insurer in Florida, is so grossly overexposed that it is changing all of the rules to minimize it’s exposure if The Big One hits.
In Miami, property insurance prices for a primary or secondary home range from 1-3% of the replacement cost of the home, calculated by multiplying the living area square footage by $135 for an average standard home. Luxury homes would use a higher dollar amount. The 1% is for homes built after 2006 that receive all of the current wind mitigation credits. Most homes are closer to the 3% range. Property insurance runs at about 2% of the purchase price and as long as you have homestead exemptions, it cannot go up more than 3% or CPI per year, whichever is lower.
The rates on Citizens insurance are expected to increase dramatically next year to raise money to try to close the gap they have between their reserves and their risk exposure. They will also be dropping an estimated 300,000 policies, mostly in south Florida.
There are three amendments relating to property taxes on this November’s ballot and not one amendment addressing insurance.
I have written several posts about short sales and the benefits of short selling versus a foreclosure. An article in the Miami Herald last month stated that a short sale can cause a person’s FICO score to drop by 150 points or more, thereby making it difficult for the seller to borrow in the future. This is true, but the hit of a foreclosure is even higher.
The lush, gated entrance to these 18 single family homes, is located just off of 77 Avenue in Pinecrest. The Hollub-built homes were constructed between 1988 and 1993 and range from between 3,000 to just under 4,000 square feet. Located in northwest Pinecrest, Arabasque has wonderful access to U.S. 1 and the Palmetto, and is walking distance to parks, Miami Palmetto Senior High School, shops and restaurants. The quarter acre lots make these homes some of the most affordable single family homes in a gated community. The last home sold in Arabesque sold in May of 2012 for $652,000 or $174 per square foot. The annual maintenance for homes in this gated community is $1700.
I want to preface this blog with the statement that I did not wake up on the wrong side of the bed this morning. As a matter of fact, I had a perfect morning. Woke up before the sun was up, had coffee, read the paper, had a nice long walk with the dog, chatted with other neighborhood walkers and came back home to start work. While I was leafing through my daily Google alerts, I came across a listing in Pinecrest. I clicked on the link and was immediately familiar with one of Josie Wang’s listings. It happens to be a modern home in Pinecrest at 9500 SW 60 Ct., and is just around the corner from my house.
As I scrolled through the link, I did not see anything that mentioned Josie or AVATAR, her broker. I know that a lot of agents and brokers have a myriad of websites, blogs, and aggregators (such as Trulia and Zillow) in order to promote their listings and maximize a seller’s internet exposure. However, I also know that most agents and brokers clearly advertise themselves on these pages as well, so I immediately realized that this was someone hijacking Josie’s listing as their own. Sure enough, when I scrolled to the very bottom of the page, the last line read that the listing was AVATAR’s. I can assure you, I am going to be one of the few who reads that very last line. I immediately sent an e-mail to Josie and contacted leaders in the Miami Realtors Association. This is an increasingly common occurrence that needs to be stopped.
This exact thing happened to Carole Smith, a Realtor in my same EWM office. Carole took action on the hijacking of her listing and I applaud her and urge all Realtors and sellers do the same. Even though she is extremely busy, she took the time out to file a complaint, blog about the issue and post the blog on her Facebook page. The feedback and frustration she heard back from other agents and individuals shows how rapidly this unscrupulous practice is spreading.
Why should you care?
1) If you are a Realtor, it should be obvious. As a listing agent, we spend hundreds to thousands of dollars to develop a marketing strategy as unique as each property. This includes pictures, videos, and verbiage to highlight the property. We also take time to get to know other features about the property and the neighborhood it is in. When someone takes that information and passes it off as their own, it should be the same as plagiarism or copyright infringement.
2) If you are a seller, number one above applies to you as does the following: the listing agent has information that may need to be shared with a buyer or buyer’s agent but that isn’t specified in the marketing literature. If the hijacker is passing your property off as being their listing, you have no control over what they are saying to hook the buyer. The listing agent also has spent the time getting to know you, your home, neighborhood and the specific properties that make your home special. This added knowledge helps you get the most money for your home and allows for disclosure of issues that may affect the buyer upon their purchase, thereby avoiding potential problems after the sale.
3) If you are a buyer BEWARE. The main reason these agents/brokers hijack other agent/broker listings is to find you! Some of them may be new in the business, focus on buyer representation vs listings, or simply not have enough of their own listings. If they clearly acknowledge that this listing is another agent’s/broker’s, most agent’s have no problem with the practice of having their listings posted on another agent’s website or blog. Most of us want the maximum exposure for our listings and are happy to “share” (that is basically what IDX is about) our listings to get them sold faster and at market price, which is the price you and the seller agree to.
If these hijackers act unethically with their own peers, is this someone you want representing you in your purchase, when your money is on the line?
I want to preface this blog with the statement that I did not wake up on the wrong side of the bed this morning. As a matter of fact, I had a perfect morning. Woke up before the sun was up, had coffee, read the paper, had a nice long walk with the dog, chatted with other neighborhood walkers and came back home to start work. While I was leafing through my daily Google alerts, I came across a listing in Pinecrest. I clicked on the link and was immediately familiar with one of Josie Wang’s listings. It happens to be a modern home in Pinecrest at 9500 SW 60 Ct., and is just around the corner from my house.
As I scrolled through the link, I did not see anything that mentioned Josie or AVATAR, her broker. I know that a lot of agents and brokers have a myriad of websites, blogs, and aggregators (such as Trulia and Zillow) in order to promote their listings and maximize a seller’s internet exposure. However, I also know that most agents and brokers clearly advertise themselves on these pages as well, so I immediately realized that this was someone hijacking Josie’s listing as their own. Sure enough, when I scrolled to the very bottom of the page, the last line read that the listing was AVATAR’s. I can assure you, I am going to be one of the few who reads that very last line. I immediately sent an e-mail to Josie and contacted leaders in the Miami Realtors Association. This is an increasingly common occurrence that needs to be stopped.
This exact thing happened to Carole Smith, a Realtor in my same EWM office. Carole took action on the hijacking of her listing and I applaud her and urge all Realtors and sellers do the same. Even though she is extremely busy, she took the time out to file a complaint, blog about the issue and post the blog on her Facebook page. The feedback and frustration she heard back from other agents and individuals shows how rapidly this unscrupulous practice is spreading.
Why should you care?
1) If you are a Realtor, it should be obvious. As a listing agent, we spend hundreds to thousands of dollars to develop a marketing strategy as unique as each property. This includes pictures, videos, and verbiage to highlight the property. We also take time to get to know other features about the property and the neighborhood it is in. When someone takes that information and passes it off as their own, it should be the same as plagiarism or copyright infringement.
2) If you are a seller, number one above applies to you as does the following: the listing agent has information that may need to be shared with a buyer or buyer’s agent but that isn’t specified in the marketing literature. If the hijacker is passing your property off as being their listing, you have no control over what they are saying to hook the buyer. The listing agent also has spent the time getting to know you, your home, neighborhood and the specific properties that make your home special. This added knowledge helps you get the most money for your home and allows for disclosure of issues that may affect the buyer upon their purchase, thereby avoiding potential problems after the sale.
3) If you are a buyer BEWARE. The main reason these agents/brokers hijack other agent/broker listings is to find you! Some of them may be new in the business, focus on buyer representation vs listings, or simply not have enough of their own listings. If they clearly acknowledge that this listing is another agent’s/broker’s, most agent’s have no problem with the practice of having their listings posted on another agent’s website or blog. Most of us want the maximum exposure for our listings and are happy to “share” (that is basically what IDX is about) our listings to get them sold faster and at market price, which is the price you and the seller agree to.
If these hijackers act unethically with their own peers, is this someone you want representing you in your purchase, when your money is on the line?
With real estate sales increasing and decreasing inventories, many developers are starting to launch new condominium projects. Many, such as the Porsche Tower in Sunny Isles, are aimed at the uber luxury market. This building is going to have special elevators to bring the resident and their cars up to the actual condo unit.
The Bellini on Williams Island, another luxury building, is requiring that buyers be primary or secondary home owners, not investors.
Most of these developers are counting on cash buyers putting significant down payments on their purchase in order to fund the construction. Considering how low prices are in comparison to the peak and how many mortgages are under water, I wonder if the real estate industry isn’t feeling just a little too confident.
I saw two great homes during a Coconut Grove open house. The one above, listed by Carole Smith and Ken Tate of EWM, is a two-story Old Spanish built in 1924. It is beautifully restored with a spacious, modern kitchen.
The one below is a modern home, built in 2008 with wonderful open spaces. It is listed by Javier Gonzalez with ReMax Advance Realty. Both homes are approximately the same size, 3,817 and 3,678 square feet respectively, with very nice outdoor entertaining spaces. Which one would you choose? The Old Spanish or the modern home?
The entrance to Pincrest Grove is located on 60 Avenue, a short walk or bike ride to the Community Center, library, Pinecrest Gardens, Pinecrest Elementary School, and Wayside Market. This gated community in Pinecrest consists of 9 single family homes built on one acre lots. Most of the homes were built in the early 1980’s and range in size from 5,300 – 6,900 square feet. There is an annual maintenance fee of $1,050 per year.