Life In Bonita Springs

Duct Tape Fixes Everything

One of the favorite local places to eat in Bonita Springs is Dolly’s on Bonita Beach Road.  A group of us got together for  lunch and on my way in I caught this truck in all of it’s duct taped tail light splendor. 

I’m permanently intrigued by red neck pick up trucks.  As the mother of Fred Sanford, AKA Lumberjack, I am continually amazed at the random scraps of junk /treasure that end up back there with my Tupperware.  He’s not really good at returning the take home boxes which would explain my birthday present which consisted of two big boxes of replacement Tupperware.  You see, you have to hit a man in his stomach to get his attention.  When the food quit going home with him he got serious about providing the vessels for future transportation.

Now I look in the back of trucks just to see how the other rednecks roll.  Read also: Touring The Florida Everglades. 

This guy had more going for him than duct taped tail lights.  He had a fish tail sticking up.  You don’t see that every day, do ya?

Besides the other requisite tools, tubes, cords, buckets, gas cans, boxes and tool box there was a full size taxidermy Tarpon.  I wonder what the story is. Who drives around with a fake fish in the back of their truck?  Seriously.

What I think is really funny is that it looks like the fish is laying on one of those little clear tackle boxes.  As if this guy caught the fish on a hook over the lunch hour. I’m thinking he caught it at a weekend, Bonita Springs community garage sale or something.

The Residents at Barefoot Beach: Ghost Crabs

Yes, these crabs were just as aggravated with being photographed as they looked.  They’ve very grumpy looking, aren’t they?  I didn’t even have melted butter with me or anything to provoke such anger. 

Little did they know that I get my crab and butter at Pinchers Crab Shack in Bonita Springs, Florida.

It’s Still All About The Real Estate Appraising

Recently there’s been a lot of hubbub about the effects of the new Housing Valuation Code of Conduct – HVCC. The HVCC was intended to create a system to eliminate inflated values by either bad or novice appraisers or by predatory lenders. The resulting unintended consequences have produced a severe pendulum swing in the opposite direction of what the program was intended to accomplish.

For the buyers that have to obtain a mortgage a home appraising at or above the contracted price is key. No matter how much anyone loves or needs a home if that appraisal is below the contracted purchase price things can get sticky fast.

There’s no doubt that novels can be written about real estate that hasn’t appraised since the Code was enacted in May of 2009. Purchase price adjustments are the common concession when seller really wants to sell. While buyers always have the opportunity to bring cash to closing to make up the difference they usually find attractive housing opportunities elsewhere instead of laying out cash when an appraisal comes in low.

With the implementation of the HVCC some properties have sold at bargain prices due to the resulting low appraisals. There’s a bit of seller disbelief or denial with the disparity of what a home was thought to be worth and what the most probable current value is. discouraged sellers, with their home languishing on the market, opt for an appraisal or a CMA - comparative market analysis just to make sure they’re priced accurately.

While the seller’s appraisal is a great tool to make sure they’ll not be leaving cash on the table by reducing their listing price too much, it’s important for sellers to know that the appraisal has a limited shelf life. How old does an appraisal have to be to make it old or out of date? It could be as little as hours, days or a few short weeks.

Those appraisals are based on closed sales of like kind properties and the real estate market is continuously changing. Depending upon the price range and popularity with buyers there could be closings within days that render the appraisal price obsolete.

Sellers struggle to understand that only a few short weeks ago they had an appraisal completed, priced their home appropriately and it is now currently above market value due to more recent closings. It literally can happen that fast, especially in production build communities where the biggest variable between homes is whether it has a pool or not.

An appraisal or a CMA is no more than a snapshot of value at a specific time. It’s imperative to closely follow the market after the home’s value is estimated. The homes that were pending sale at the time of the appraisal will close sale, maybe even the next day. They’re the new April fresh comparables used for appraisals and valuation whether the appraisal is a month or a week old.

The busy winter season is just around the corner. If you’ve had your home for sale on cruise control over the summer it’s time to see at what’s recently closed sale and make sure your home is priced to not only sell but to appraise for the sale price.

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Real Life in Bonita Springs is a project by Chris Griffith dedicated to writing useful blog posts for consumers about the Bonita Springs, Florida area.  Find out what it is really like to live in Bonita Springs, Florida by reading about our fair city. You’ll get the latest in local real estate information, Bonita Springs real estate market reports and a little bit of humor.  If you have topic ideas, feel free to request a story about the idea, after all, this site is just for you.

You can subscribe to a weekly email newsletter by visiting www.LifeInBonitaSprings.com and entering your email in the subscription area on the left pane of the web page or by adding us to your reader by subscribing to this blog. Oh, and if you’re reading this content anywhere else but www.LifeInBonitaSprings.com or Naples Daily News it is probably stolen.

Record Low Rates, Get What You Need

"You can't always get what you want, but if you try sometimes, well you just might find, you get what you need." - Rolling Stones

What does that have to do with this week's mortgage rate report? Well, funny you should ask. I have heard from a very close friend of mine who works for Apple that many people are upset with the new release of iPods. Why? People were "wanting" a video camera in the iPod touch. Apple met the "need" for a video camera, but put it in the iPod nano.

Let's take this to mortgages now. Many people want, low rates, low prices, and the perfect home. Well, you can't always get what you want. Right now, the market is giving you at best 2 of the 3. Low rates still exist and low prices are still hanging on. But, the want to find the perfect home might just not be there. Go with what you need... a roof, walls, 2 or 3 bedroom, bathrooms, kitchen, etc. It might be the wrong shade of color. Or the kitchen might be a little outdated. Who cares!!! Get what you need before you cannot get anything at all.

So with that being said, here are the mortgage rates for today that you have been "wanting" to see:

30 Year Fixed: Interest Rate - 4.875%

APR - 4.966%

Payment - $793.81

15 Year Fixed:

Interest Rate - 4.375%

APR - 4.530%

Payment - $1,137.93

30 Year Jumbo:

Interest Rate - 5.375%

APR - 5.484%

Payment - $2,799.86

15 Year Jumbo:

Interest Rate - 4.875%

APR - 4.922%

Payment - $3,921.49

*The rates published on this page are applicable only to requests received from this site or by calling 352-308-7219. Mortgage rates published on this page are the current rates for a single-family, primary residence based on a 30-day lock period and are subject to change without notice. In order to receive a guaranteed rate, you must have applied for an application through Knightlines Mortgage Services, LLC and received a verbal confirmation from a mortgage broker that your desired rate is locked. Your guaranteed mortgage rate will depend on factors such as current market conditions, loan product, occupancy, property type and your credit profile.

Loan Product and APR Information

• Conforming rates are for loan amounts not exceeding $417,000 ($625,500 in AK and HI)

• Jumbo rates are for loan amounts exceeding $417,000 ($625,500 in AK and HI)

• Adjustable-rate loans and rates are subject to change during the loan term. That change can increase or decrease your monthly payment.

• Additional loan products, rates and lock periods are available.

Conforming Fixed, ARM APR calculation assumes a $150,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jumbo Fixed APR calculation assumes a $500,000 loan amount with a 20% down payment, estimated borrower paid finance charges of .75% of the loan amount plus discount and origination if applicable. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the APR.

Jason Price

Owner/Principal Broker

(352) 308-7219 Phone

For some time now, Knightlines Mortgage Services has been offering the people of Florida a convenient way to finance and re-finance their residential property.

But that isn’t the entire story - we are also doing commercial lending in all 50 states.  AND - now we can offer commercial financing OUTSIDE of the country as well.  Caribbean, South America, etc - just call for the details.

Foreclosure & Short Sale Replacement Properties

I've been getting a few questions from exchangers asking how to identify replacement property in a 1031 exchange if you want to buy a short sale (SS) or foreclosure  (REO) and cannot rely on the bank to give you a definite answer by day 45.

As you know, in a 1031 exchange you have 45 days to identify new property to buy, and 180 days to close. So what are your options when you want to buy a short sale or REO foreclosure real estate and the bank is in control but couldn’t care less about your exchange deadlines?

The rules for identifying new property in a 1031 are no different in a short sale situation. You can identify up to three parcels of real estate or  properties with no limitations as to price or location. If you ID more than three, the 200% rule kicks in, which says if you ID 4 or more, the total asking prices of the 4 or more properties on your list cannot exceed 200%, or 2X, the sales price of the one piece of real estate that you sold.

The problem is if you find a really cool short sale at a great price and are submitting an offer on it, you may not hear back from the bank until 60 to 90 days out, well past day 45. If you ID that property and the bank rejects your offer, you can either resubmit another offer, and wait, or move along to the next one on your list.

One solution is to ID three pieces of real estate  since there are no price limitations. Identifying more than three and you risk toasting your exchange. Place bids on those three, and as soon as one is accepted, withdraw the other two offers immediately so as not to lose deposits or get yourself in a bind.

Don't make the mistake of only identifying one property, take advantage of what the IRS gives you and stay on top of it with your realtor. Call me anytime if you have questions during the process, toll free 888-659-1031.

~Nace

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Nace Cohen is the President and founder of 1031 Exchange Connection, Inc., an IRC §1031 exchange consultancy based in Naples, FL. He lectures extensively on IRC §1031, consults and structures tax deferred exchanges for Real Estate and Personal Property Exchanges, and provides replacement property alternatives . He is also a CPA and operates an accounting and tax practice specialized in real estate taxation and property management. Call toll-free 888-659-1031 for a free consultation, or visit their web site at www.1031-connection.com.

When Enough is Enough at The Guard Gate

On the heals of the recent public outbursts of a tennis player, a congressman and a rapper I found this sign as I was going through the guard house at Stoneybrook Golf and Country Club in Estero, Florida.  I had buyers in the car and they asked if the picture would end up on my blog … you know it!

The guards are there to restrict entry from communities.  If you don’t have a reason to be in the community or a resident hasn’t called the guard to leave your name, you don’t get in.  Some security guards are a little more lenient than others.  Stoneybrook Golf and Country Club has particularly strict security guards, which isn’t a bad thing.  It keeps the community and the residents safe.

From the looks of it, they must get verbally abused on a regular basis.  I wonder if it’s because it almost seems acceptable to be without manners or less than courteous these days.  I’m sure they have their work cut out for them.  The community is fair sized and the gates are always busy.

Next time you go through a guard gate be nice.  They’re just doing their job. 

Watch me get denied entry tomorrow!  Just watch.

Barefoot Beach Bonita Beach 

This mailbox is in the community of Barefoot Beach.  You’ll pass it on your way back to Barefoot Beach Preserve, the park at the end of The Community of Barefoot Beach.  I’ve passed it a couple of thousand times and never taken a picture of it until just a short time ago.

Barefoot Beach is one of my favorite Beaches.  If I had to pick, Barefoot Beach would be my first favorite and beach access 7-9 on Bonita Beach on Hickory Blvd. would be my next favorite.  Parking is free, but limited, on the beach accesses. 

If you come to the area be sure to take advantage of our great beaches, especially at sunset.  We’ve had some doozies lately.  You just don’t see the sun set anywhere like that except over the Gulf of Mexico in Bonita Springs, Florida.

Finance Barbie: Fake Currency Included

Party Dress & Yacht Sold Separately

Several days ago I was crossing the state in my car. While listening to the radio I overheard a report of senior vice president, banking executive who had “borrowed” a bank owned home in Malibu, California for her own personal use and entertainment.

On a daily basis real estate agents are hounding banks for answers to get inventory sold and absorbed. While they’re hammering the powers that be for answers and approvals, Executive Malibu Barbie was spending more time planning weekend parties at the beach front home than thinking of ways to streamline a short sale.

How did this sense of entitlement come to those in finance and on Wall Street? Besides exploiting loop holes and creating a stupendous disaster they’ve found ways to bonus themselves, plan vacations and throw parties in homes they’ve taken back from owners.

A neighbor of the bank owned home was interviewed and said, “It makes you wonder whether it isn't a bigger systemic issue in banking and Wall Street and the economy."

If you’re like me you’re thinking, “It just now makes you ‘wonder’ if there’s a bigger systemic issue in the banking industry?” Seriously?

Personally, I am still amazed that there has been this big of a systemic failure and absolutely no mandate to fix it or even a feeble attempt, just for show. There has still been no progress made for processing a short sale transaction or modifying a loan to keep a family in their home.

The banks have done nothing to evolve and the government, while passing out freshly printed stimulus currency, didn’t set any rules to motivate a bank to help distressed home owners. Not even to Malibu Barbie’s bank, which received about a $25 Billion, with a ‘B’, pile of stimulus money.

Maybe you’re lucky enough to be of means, employed or able to still afford your mortgage. Even if you aren’t struggling, this situation is affecting the property values in your neighborhood because it’s going on nearly everywhere, even Malibu.

It should interest you to know that there are plenty of people who are really struggling in Lee and Collier Counties. Right now, about seven-teen percent of the homes in southwest Florida real estate market are considered potential short sales.

Short sales are homes that are valued and sold at a price below the outstanding balance of the mortgage. In order to sell the home the bank must participate by forgiving a portion of the debt owed. For the most part, the process is painfully difficult and takes months to conclude due to the bureaucracy of the process and the blatant indifference of the bank.

It doesn’t matter if it’s a $20,000 or a $20,000,000 home, the struggle is the same. Even the original owners of the Malibu party home had buyers lined up for their home and the bank didn’t cooperate to help them sell.

The lack of cooperation proves the failure of the system on an enormous scale. While it could have simply been blatant indifference or a lack of organization I can’t help but wonder if maybe the bank wasn’t cooperating because they already had party invitations ordered.

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Real Life in Bonita Springs is a project by Chris Griffith dedicated to writing useful blog posts for consumers about the Bonita Springs, Florida area.  Find out what it is really like to live in Bonita Springs, Florida by reading about our fair city. You’ll get the latest in local real estate information, Bonita Springs real estate market reports and a little bit of humor.  If you have topic ideas, feel free to request a story about the idea, after all, this site is just for you.

You can subscribe to a weekly email newsletter by visiting www.LifeInBonitaSprings.com and entering your email in the subscription area on the left pane of the web page or by adding us to your reader by subscribing to this blog. Oh, and if you’re reading this content anywhere else but www.LifeInBonitaSprings.com or Naples Daily News it is probably stolen.

  Anyone Could Have Taken Daytime Pictures 

Actually, I had guests come visit the Bonita Springs area and they asked me if there was a skate park.  Why yes, there is.  It was after dinner and the skate park was closed so we just stopped by for a look.

At the B3 Skate Park boards, bikes and blades are all welcome. There’s even a skateboard Pro Shop. For everyone's safety, the B3 Skate Park is supervised by a skate park attendant at all times.  Helmets are required, too.

To contact the recreation center/skate park by phone: (239) 992-2556 

Their official website is: www.bonitaspringsrecreation.org

If  you are interested in taking a good look at this skate park in day light hours you can find it near the Bonita Springs Public Library right behind Bonita Springs Middle School.

The B3 Skate Park is located at our Recreation Center Complex at 26740 Pine Avenue off of West Terry Street in Bonita Springs, Florida. Here’s a handy map, too: