As an old law enforcement type, I felt obligated to go to a memorial service for a fallen U.S Air Force Security Officer from Mac Dill Air Force Base in Tampa, Florida.

It was a very sad occasion when I learned more of the facts of this great and untimely death. It was a loss that greatly affected the officer’s family and friends, and it was a loss to all of the U.S. military forces, and as I learned, it was the first U.S Air Force Security Officer lost since Viet Nam.

1st Lt, Joseph D. Helton, Jr. lost his life on September 18th, 2009. Lt. Helton was an honors graduate in high school, where he also led the soccer team for three years and was also the Commander of the JROTC unit at his high school. Joseph Helton graduated from the U.S. Air Force Academy as a Distinguished Graduate in the upper 10% of his class in 2007. Lt. Helton was assigned to the 6th Security Forces Squadron at Mac Dill AFB and graduated from the Security Officer Basic Course as a Distinguished Graduate. Do you see a pattern here? This young man would have made any mother and father proud.

Lt. Helton sadly died during an IED explosion while advising the Iraqi Police in southern Baghdad. He was clearly one of best and brightest young officers in the military or what ever he chose to do with his life.

Lt. Helton was born in Milton, FL in September 1984. His parents moved to Georgia where he grew up, and yes he was only 24 at the time of his death.

Lt. Joseph D. Helton, Jr. will be missed and will not soon be forgotten for he has made the ultimate sacrifice.

            ”I have fought the good fight, I have finished the course, I have kept the faith”

Dave Tipton

Every year, countless people in the United States buy, sell or refinance their own slice of the American Dream.  Most, if not all, of these transactions include a simple line item for an appraisal.  It has become an understood and accepted part of a real estate transaction.  “Let’s bring in the expert and make sure we’re not spending too much on this property.” 

But is this the only reason to get an appraisal? Are there other times when the services of a certified, licensed, independent real estate professional might come in handy?  You bet.

PURCHASE OF A HOME- One of the most important issues involved in purchasing a property is developing an opinion of what it’s worth so that you can make an informed offer to purchase.  A professional appraisal report performed by a qualified, state-licensed appraiser can provide you with an objective, third party opinion of a property’s current Market Value.  And for the small price of this service, you can give yourself “peace of mind” prior to making an offer to purchase that you’re offering a fair price for the property. 

REFINANCE OR GET A HOME EQUITY LOAN- If you need to consolidate bills, have a college tuition to pay, or just want to tap into the equity of your home, you’ll need a new loan, which oftentimes requires a new appraisal of the property.
 
PMI REMOVAL- Private Mortgage Insurance or PMI is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan – whether through market appreciation or principal paydown – dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.

Many appraisers offer a specific service for home owners that believe they have met the 80% loan-to-value metric. For a nominal fee, the appraiser can provide you with a statement regarding the home value. Some will even take the next step and help you file a challenge with your mortgage company. The costs of these services are very often recovered in just a few months of not paying the PMI.

DIVORCE SETTLEMENT- A divorce can be a particularly traumatic experience for both parties and is often further complicated by the difficult decision of “Who gets the house?”.  In most divorce cases, the Court won’t usually force the parties involved to “buyout” the other party’s interest but it may however order the sale of the home so each party gets an equal share of the equity.  Regardless of the situation, it’s a good idea to order an appraisal so both parties are fully aware of what the true market value is.

If the parties want to sell the home, they’ll have a better idea of what price to set.  And on the flipside, if a “buyout” is the chosen option, both parties will feel like they’ve gotten a fair assessment.
 
ESTATE LIQUIDATION- The loss of a loved one is a difficult time in life and settling an estate from a death, or probate, often requires an appraisal to establish Fair Market Value for the residential property involved.  The ethics provision within the Uniform Standards of Professional Appraisal Practice (USPAP) binds us with confidentiality, ensuring the fullest degree of discretion.

Unlike many wealthy individuals, the majority of Americans do not have dedicated estate planners or executors to handle these issues.  Also, in most cases, a home or other real property makes up a disproportionate share of the total estate value.

Here too, an appraiser can help.  Often the first step in fairly disposing of an estate is to understand its true value.  Where property is involved, the appraiser can help determine the true value.  At this point, equitable arrangements can more easily be arrived at among disputing parties. Everyone walks away knowing they’ve received a fair deal.

RELOCATION- We understand the stress involved with an employee relocation.  We take great care in establishing a convenient appointment time for the appraisal inspection. During our thorough inspection, we encourage relocating employees to provide input on the positive attributes of their property along with information about any recent sales or listings in their neighborhood that they want considered.

HOME IMPROVEMENTS TO ADD VALUE- Before you decide to sell your home, there are several decisions to be made. First and foremost: “How much should it sell for?”  But don’t forget there may be other equally important questions to ask yourself such as “Would it be better to paint the entire house before we sell it?”, “Should I put in that third bathroom ?”, “Should I complete my kitchen remodel?”  Many things which we do to our houses have an effect on their value.  Unfortunately, not all of them have an equal effect. While a kitchen remodel may improve the appeal of a home, it may not add nearly enough to the value to justify the expense.

SELLING A HOME- Whether you choose to sell your home on your own or use the assistance of a real estate agent, a professional appraisal can help you make a better educated decision when determining your selling price.

Unlike a real estate agent, an appraiser has no vested interest in what amount the house sells for.  It’s easy for them to step in and give you the information to help you make your decision.  Appraiser fees are based on efforts to complete the report and not a percentage of the sales price. So seeking a professional appraisal can often help homeowners make the best decisions on investing in their homes and setting a fair sales price.

Jon Tipton, Florida Certified Residential Appraiser

813-391-6121

So, buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent down payment.

There remain many sources of assistance for buyers needing help with the 3.5 percent down payment, including many state and local government instrumentalities and nonprofit lenders.

The first-time homebuyer tax credit was enacted last year–and improved upon earlier this year–to help encourage households to enter the housing market while interest rates are low and affordability is high. The credit is worth up to $8,000 and is available to households that haven’t owned a home in at least three years. The credit does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment.

Learn more about the credit, including how to apply for it this year even if you’ve already filed your taxes, call or e-mail Rick Frissell at 813-653-1241 or Rick@DiamondDwellings.Com 

Diamond Dwellings Realty- Florida

NO! You’re thinking of a Greek pocket bread for sandwiches.

How Can PITI Figure Into Your Monthly Budget?

If you are in the real estate business, you are probably familiar with the acronym: P.I.T.I.

This is one acronym that first-time home buyer should know about and it’s a handy, simple group of letters — that could save you money and help with your monthly budget planning concerning your house payment.

P.I.T.I = Principal, Interest, Taxes and Insurance.

Let’s examine each of the four areas separately.

Principal: This is the total amount of money you will owe the bank for your loan. The “principal balance” of your loan is divided over the life of your loan AND there will be a monthly amount of principal that you will be obligated to pay back.

Interest: This is the “fee” . . . the interest amount that you agreed to pay the bank for the loan. If you have a 4.75% interest rate, you will have this amount calculated as a per monthly amount.

NOTE: I might as well add that the bank ‘amortizes’ your loan. The principal balance is not really being reduced the first seven, or so, years of the life of your loan (if you have a 30 year fixed). You are paying the mortgage per month and the majority of that amount will be INTEREST. The banks have set this system up by design. There has been study after study done that buyers live in a home, on average, 5 to 7 years. So . . . the banks make their money upfront with the interest on the loan.

Taxes: Taxes are the taxes due each year on your property. These taxes can be set up to be paid with your mortgage, and the yearly amount is divided by 12 months and can be added to your monthly mortgage payment. You may find that it is more convenient to have your taxes included in your monthly payment.

Insurance: This hazard insurance for your property. Do NOT confuse this “insurance” as Mortgage Insurance, which is a different type of insurance that lenders require to insure your mortgage.

The Sum Total will be your P.I.T.I. monthly payment.

Be sure to ask your Realtor, mortgage professional, or banker if the monthly payment they’re quoting you is P.I.T.I . . .  the total amount of what you will be obligated to pay each month. They could be quoting the P&I (Principal and Interest) and NOT include the Taxes and Insurance.

Call or E-mail: Rick Frissell, Agent- Brandons Beautiful Homes

813-340-6828

Preparing Your House for Sale

One of the first things I will do before putting your house on the market is prepare your house for sale. I want to show your house off in its best light to maximize your earning potential. I will tour your house with the eye of a buyer – see what works and what doesn’t work.

Curb Appeal- Does your house have curb appeal? Can we give it a little more pizzazz to draw the buyer in? Would a bit of touch-up paint add dollars to the sale? What about the garden? Is the lawn in order and neatly edged? Are trees and bushes neatly pruned? Are flowers in bloom? If not, it may be time for a garden upgrade. Adding colorful annuals to the front garden will make a big difference. Remember, creating curb appeal will add dollars to your house's final selling price.  Curb Appeal Checklist 

Welcome Home- As I walk in the door of your house, I will ask myself, "Will this house say, 'Welcome home' to a buyer?" Looking through the eyes of a buyer, I will recommend changes that will enhance sales appeal. I'll help you eliminate anything that gives the appearance of clutter. Countertops should be free and clear. Knickknacks, souvenirs, family photos, refrigerator artwork - it's gone. We need to "de-personalize" the house so buyers can imagine it as their home. 

Closets and cupboards should appear large and roomy. It's time to make a donation to a local charity or store belongings at a friend's or family member's home. Reviewing your home room-by-room, I will make recommendations that impact the sale. I'll point out the pieces of furniture that should be removed, rooms that need new paint, carpet that needs to be changed, fixtures that need polishing, windows that need cleaning, and any other improvement that can easily be made to promote the sale. 

Setting the Stage- Before the first buyer walks in your door, I'll show you how to set the stage. We want to engage the buyer's senses. Lighting is critical. We'll draw back curtains, open blinds, change light bulbs and add lighting where needed to welcome the buyer. We'll enhance the ambiance with music playing lightly in the background and insure a pleasing aroma emanates from every room.

Rick Frissell ~ Diamond Dwellings Realty- Florida

813-653-1241