Top 5 Home Trends

Now that we’re halfway into 2011, what are the biggest home trends new homeowners are seeing this year?

 

1. McMansions are out.

 The era of the McMansion is over, according to the 2011 edition of “Emerging Trends in Real Estate,” co-published by PricewaterhouseCoopers and the Urban Land Institute. Baby boomers are scaling down to smaller, more manageable homes. Also, first-time homebuyers are buying smaller, more compact homes in walkable neighborhoods.

 Homebuyers are looking for more modest homes that accommodate a tighter budget and are more practical. According to the National Association of Home Builders, the median size of new U.S. homes fell from 2,277 square feet in 2007 to 2,135 square feet in 2009. 

 The problem? As the baby boomers downsize, who will buy their large, suburban homes?

 

2. Kitchens are in.

 The kitchen is the heart of the home.

 “Even as the footprint of new home construction shrinks, the size of the kitchen will not,” said Rebecca Kolls, senior director and consumer strategist of home and garden at Iconoculture. “It is the gathering place, and consumers will forego space elsewhere to keep their kitchens functional for everyone.”

 There is a growing trend in “invisible appliances” where the doors will blend with the cabinetry to create a unified kitchen decor.

 Although granite is still the number one choice for countertops, other interesting products like Butcher block tops, poured concrete, glass and aluminum are entering into some kitchens. Homeowners want products that reflect their individuality but still make their life easier.

 Multifunctional appliances are becoming increasingly popular. Kitchen carts that double as workspace and shelving and pullout faucets with different spray models are contributing to new, multifunctional kitchens.

 

3. Going Green isn’t going away.

 It’s not really a new trend, but going green is here to stay. You can make an impact on the environment – along with your utility bills – with a few simple switches, like replacing existing kitchen and bath fixtures with water-saving ones. Fixtures that have been certified to meet the Environmental Protection Agency’s (EPA) WaterSense® labeling criteria are the best bet, as they offer water-savings and provide superior performance. Buyers want better wall insulation, better insulated (higher “R value”) windows, better sealing duct work, low energy LED lighting, and Energy Star-rated appliances. Many builders are now offering energy-efficient homes as standard.

 

4. A little bit country.

 It’s not necessarily the country style from the 1980s with wallpapered farm animals in bonnets plastered all over your walls. In 2011, homeowners are going for a more casual, toned-down look. “Whitewash instead of pure white,” says Sarah Richardson, a Canadian designer and HGTV host. “Well-worn woods vs. exotic ones create a rustic elegance,” Richardson says, “and will stay around a while.” More barn-style wooden doors will make their way to basements, closets and bedrooms. They can save space or conceal a large area for privacy.

 

5. Scaled Down Bathrooms.

Just like big homes, big bathrooms with doorless showers and massive whirlpool tubs are losing steam.

 Many homebuilders aren’t even building large bathrooms anymore. People want more practical and functional bathrooms that take up less space – leaving more space for the kitchen and other living areas.

 Adding linen closets and more storage space to the bathrooms is also in.

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Fannie Mae Issues New Standards for Servicers

On Monday, Fannie Mae issued new standards for mortgage servicers related to the management of delinquent loans, default prevention, and foreclosure timeframes. The announcement of the new standards sprung from The Federal Housing Finance Agency(FHFA) initiative to bring Fannie Mae’s and Freddie Mac’s procedures for handling past-due mortgages in line with one another.

 “These new standards give homeowners facing difficulty making their mortgage payments a clear, consistent process,” said Jeff Hayward, Senior Vice President of Fannie Mae’s National Servicing Organization. “We want homeowners to be able to understand their options when facing foreclosure, and we want servicers to reach homeowners early in the process, communicate frequently and clearly, and help homeowners avoid foreclosure.”

 As part of this initiative, servicers are required to build stronger relationships with homeowners to determine reasons for delinquency, assess ability to pay, and educate homeowners on foreclosure prevention options.

 Homeowners will be contacted during the first 120 days of delinquency to discuss a mortgage modification or other solution to stay in the home or enter into an arrangement that will allow the homeowner to exit the home without foreclosure.

 The new guidelines are available to review on Fannie Mae’s business website.  

 

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How Long do Negative Items Stay on my Credit Report?

Have you recently been turned down for a loan due to negative information on your credit report? Are you just curious about how long items can remain on your credit affecting your score?

Accurate negative information will generally be reported for seven years, but there are exceptions:

  • Bankruptcy information can be reported for 10 years;
  • Information reported because of an application for more than $50,000 worth of credit or life insurance has no time limitation;
  • Information concerning a lawsuit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer;
  • Default information concerning U.S. Government insured or guaranteed student loans can be reported for seven years after certain guarantor actions; and
  • Tax liens stay on 7 years from the date paid

Some other rules to keep in mind:

The Statute of Limitations has nothing to do with the length of time something can stay on your credit report. They are two completely separate things. The length of time a negative mark can stay on your credit report starts from the time you were late or the late payment went into collection, not from the last time you made a payment on the account.

Sometimes negative items can be overlooked and not removed when they should be. That’s why it is important to check your credit report at least once each year (it’s free to view your report at annualcreditreport.com). Review all the items on your credit report to ensure there are no errors and that anything that can and should be removed is deleted.

Negative items on your credit report don’t necessarily mean that you absolutely can’t qualify for a home loan. There are loan options for those without glowing credit scores. Contact us to discuss your home loan options today.

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Why Isn’t My Home Getting Shown?

This is such a great article,  we wanted to share the whole thing.  Kudos to NashvilleBrian.  The same principles apply here in Tampa, Florida. We have found that reputation and professional photos are key. We’ll be happy to demonstrate how we apply all of these tips to our listings. Contact us at Info@PremierHomeStore.com

Why Isn’t My Home Getting Shown?

by NashvilleBrian

Post image for Why Isn’t My Home Getting Shown?We’ve all read the answers here on why homes don’t sell or get showings.  It’s a “no duh” moment when people say (1) it’s priced too high, (2) it needs to be staged, (3) the location is bad, (4) it’s in poor condition.  We all know that.  Your problem here is you’re listed with someone who is afraid to be honest with you.I’ve been helping several agents recently with their listings and marketing through consulting, and I have found some very simple fixes above price, condition and location that MIGHT be the cause for lack of showings or lack of offers above the biggees.  Ask your agent today to check these things or audit them yourself.

Problem 1:  The home isn’t mapping in the MLS system. Many agents search for properties in the agent-only section of the MLS via the “Mapping” feature.  When the home is being data entered into RealTracs, one typo or not checking the “geo-coding” can cause your home not to show up to the agent.  Remember, 78% of buyers report that they found their home through their agent.

MLS is not mapping the address.Notice the yellow arrow I drew in for you. The red star means that the home is not mapping. If someone is searching for a home via the Geo-Coding/Mapping feature, and you’re home isn’t mapping correctly, it will not be found…period!

Problem 2:  Your pictures suck. You should expect only professional level photography in this type of market.  If your agent shows up with a point and shoot camera, this should be flag #1.  Lighting, angles, point of view and equipment matter.  I listed a home recently that was on the market with another agent for over 30 days and had average photos.  The sellers said they received three showings before releasing their agent.  In 29 days, with my marketing, we had 33 showings and an accepted offer.

Bad Dining Room PhotoSame dining room, different photo and stagingThe dining room’s photo (even without staging) was dark and shot from a poor angle. The new photo focuses on the room’s light rather than the outdoor area outside the window. (8/22/2009 note: Home under contract in 30 days after over 120 days on market with other representation)

Problem 3:  The square footage, bedroom numbers or bathroom totals were incorrectly entered. My heart breaks every time I think of a story I had in Green Hills a few years ago.  A home was priced amazingly well and had been on the market for over 250 days.  A senior couple owned it and had used “a friend” to list the home.  The “friend” entered it in the MLS as a 1 bedroom, 1 bath with 1200 square feet.  In actuality, it was a 4 bedroom, 2 bath home with well over 2300 AMAZING square feet.  To top it off, it had no pictures either.  I called the agent’s broker and reported it immediately after I had a buyer ask to see it via a drive-by, however, you may not be so lucky if you’re not on a major thoroughfare!

Problem 4:  The narrative and wording isn’t present or simply stinks. In the MLS, agents can enter “Remarks” that the consumers see on all the websites (quiet, cul de sac street on level acreage), “Realtor Remarks” which are for agents only (agent bonus of $500, disclosures are available at…) and “Photo Captions” which appear below of the photos and allow 250 characters (Sitting on a large corner lot, the seller is providing a one-year home warranty and is willing to pay up to $4000 in closing costs).  Is your agent using all these text areas to tell your story?

The “Remarks” section is the spot in the MLS that is picked up by every other website and agency site to describe your home. Example 1 chose to brilliantly use exclamation points instead of giving the seller their full potential narrative. Example 2′s agent just didn’t care enough to take the three minutes to write anything at all. Heck, I’d be happy with exclamation points at least here!



Problem 5:  Your representative has a bad reputation in the agent community. Stock is too heavy and life is too short for agents and consumers to deal with jerks.  Ask other agents candidly about your agent’s involvement in the REALTOR community.  While our code of ethics is clear that we can’t bad-mouth another REALTOR, if you ask around enough in your community or find former agents, you’ll get the scoop (See Section 15 of the NAR Code of Ethics).  If a buyer’s agent has seven homes that are perfect for his/her buyer and your home is one of those perfect seven, why would he/she show the home of an agent that has a lose-win attitude, doesn’t return calls or hasn’t upheld the ethics the “good ones” keep.  Is that fair?  No.  Is it illegal?  No.  A buyer’s agent is actually representing his/her client BEST by safegarding them from potentially difficult negotiations and contract situations.  Ask your agents about the designations they hold (all the letters that make no sense to you after their name), their involvement in their association, the awards they’ve won outside of sales production or better yet, check out their RECENT education history here:  http://licsrch.state.tn.us/

Problem 6:  You don’t have enough visuals. Again, we are in a heavy stock cycle, and buyers are “stalking” home on the net first. If 45 homes fit their needs, they will likely look at the ones they’ve seen the most of.  If your home has been on the market for over 90 days, recently, the MLS migrated to allow agents to upload 20 photos instead of the previous 10.  I can’t tell you how many times I’ve seen three or six photos presented on a 2000+ sq ft home!

Problem 7:  The buyers’ agents can’t get in! This is my top pet peeve when I’m representing a buyer!!  Most agents have a showing desk to set up the showings.  If your agent handles the showings directly, this is a big red flag!  “Oh, Mr. Seller, I always have my phone with me and this assure you will get the showing AND I will be able to speak to the agent myself to prep them.”  This is pure bull crap!  WEEKLY, YES, WEEKLY I call within 24 to 48 hours to show a home and at least one or two of the homes don’t get a return call.  I’ve called many an agent’s supervisor and had some nice talks!

Call The Agent

Additionally on Problem 7, as stupid as it sounds, check the key often and make sure it still works to the correct door and the lock box is clearly available.  The key to my personal home stopped working last month alone!  While I always call the agent and tell them there’s an issue with the key, many agents won’t.  Consumers may be coming to your door, never getting in, finding another home and you never know!  I had another key two weeks ago on one of my listings stop working, too.  Obvious, but a potential problem!

Problem 8: Your home has expired or been withdrawn. Last week, my heart broke when I entered a home of the sweetest lady.  She couldn’t figure out why she couldn’t find her home listed on-line.  More issues than that existed, but the biggest issue was that the home had expired from the MLS, and she had no clue.  Every agent in Tennessee is required to give you a copy of everything you have signed within 24 hours of signature.  Her agent had not done this; so, she had no way of knowing she was out of contract and had been off the market for over a month!

Problem 9:  The buyer’s agents commission is not competitive. While there are no set commission rates for real estate, the more commission you are paying your agent, the more commission the buyer’s agent will make.  If a home fits my buyer’s needs, I will show it regardless of commission offered, however, many agents don’t share this opinion.  In the new Tennessee Association of REALTORS listing agreement (which is widely used across the state, on line 81 of page 2 [as of 7/10/2009] there is a blank that shows you what the buyer’s agent will receive.  If your agent hasn’t shown you their value enough to the point you’ve asked them to discount their normal rate, you need to make sure they are not placing your home in an inferior commission position. What percentage the listing agent shares with the buyer’s agent is between those two agents, you NEED to know what that percentage is.

Low CommissionUsually we see lower commissions on multi-million dollar properties or commercial listings. This $200K home is listed giving the co-op agent 1% when all of its competing home sellers are offering 2%, 2.5% and 3%!

Problem 10:  You! So many times we want to point the finger at the agent or his/her marketing deficiencies, however sometimes you’re the problem.  You are consistently turning down appointments or you don’t check your voicemail to confirm showings until the showing request time has long passed.  As kindly as possibly, I remind my sellers in the listing consultation of these obvious principles.  If you want to sell, you have to show!  A few Fridays ago, I was trying to show my buyers a home and had been canceled on TWICE by the owner’s daughter.  If an agent is working to get you the showings, but Aunt Erma’s overnight stay, Sally’s birthday party or your need for an extra two hours of sleep on Saturday morning is causing you to say “no” to the showings, you need (1) to not be on the market or (2) find an agent who will keep you in line (kindly, of course).

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Beware of Foreclosure Rescue Scams

The threat of losing your home can lead some homeowners to take desperate measures to find companies who claim to reduce your monthly mortgage payment or take other steps to save your home.

Unfortunately, there are many scam artists stealing millions of dollars from distressed homeowners by promising immediate relief from foreclosure. Keep this in mind: If the advice or information sounds too good to be true, it probably is. Don’t be taken advantage of.

Here are some tips to help you avoid these scams: 

  • Help is free! There is never a fee to get information from us. HUD-approved housing counseling agencies can also help you at no cost to you. Beware of any person or organization that asks you to pay a fee in exchange for housing counseling services or modification of a delinquent loan.
  • Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your house. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
  • Don’t sign papers in exchange for a promise that someone else will pay off your mortgage. Always be sure to read and understand all paperwork before signing to ensure that you are not unknowingly giving someone else ownership of your home. 
  • Never submit your mortgage payments to anyone other than your mortgage company without your mortgage company’s approval. Scammers might ask you to make your payments to them; however, they usually pocket your payments instead of sending them to the lender.
  • Beware of anyone who says that you don’t need a real estate professional or title company when selling your home. You should always have a real estate professional, attorney, or a title company to help you with any transaction involving your home.

The FTC warns:

The scam artists use simple but potentially deceptive messages, like:

“Stop foreclosure now!”

“Get a loan modification!”

“Over 90% of our customers get results.”

“We have special relationships with banks that can speed up the approval process.”

“100% Money Back Guarantee.”

“Keep Your Home. We know your home is scheduled to be sold. No Problem!”

Once they have your attention, they use a variety of tactics to get your money.

If you’re struggling to make mortgage payments or facing foreclosure, there are legitimate options available to help save your home. Contact your lender immediately. You may be able to negotiate a new repayment schedule.

If you believe you’ve been the victim of foreclosure fraud, contact the FTC, or your state Attorney General’s office, or the Better Business Bureau.

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Choosing the Right Price for Your Home

Choosing the right price for your home is one of the most important aspects of selling your home. If your price is above market value, you run the risk of it sitting on the market too long.

An overpriced property:

  • Minimizes the number of offers
  • Limits qualified buyers
  • Reduces the number of showings
  • Lowers prospects
  • Limits financing
  • Will attract buyers in a higher price range that have high expectations

 Most buyers today are educated about the home buying process and have done their homework before purchasing a home. They will know if your home is overpriced.

 In choosing the right price for your home, the market is the most accurate indicator. The condition of the current market, the number of buyers, and current competition will dictate your home’s value. If your home does not meet the competition price, it simply will not sell.

 Keep in mind that the value of your property is not dictated by what you’ve invested in the property, what you paid for the property, or by the amount you feel you need to receive from the property.

 Choosing the right price for your home will increase advertising response, stimulate buyer interest, compensate for property shortfalls, and provide you with a negotiating advantage.

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How the Real Estate Industry is Using Social Media

It’s no secret that social media has become an essential tool in the Real Estate industry. Real Estate professionals are using social networking to provide online listings, host virtual property tours, schedule showings, showcase industry expertise, and build professional relationships.

 Alexis Lamster, VP of customers at Postling, reported that the company analyzed more than 500 Postling accounts specific to Real Estate and more than 7,000 small business accounts to extract information on how the Real Estate industry is using social media.

 Here are some of Postling’s findings:

  • 84% of Real Estate professionals are using some type of social media
  • 79% of those using social media are using Facebook
  • 48% use Twitter

Postling reports that video and YouTube are more important now than ever. 73% of homeowners say they are more likely to list with an agent offering to do video, yet only 12% of Real Estate professionals have YouTube accounts.

Social media has also played a part in the home buying process.

  • 45% of potential homebuyers walked through a home initially viewed online
  • 29% located an agent online

It’s evident that while social media may be a developing means of business communication, it’s not a fad that is going away any time soon. Social media offers any business a free marketing platform, a convenient information medium, and a way to build relationships with clients.  The future of the Internet is social.  Are you going to be a part of it?

You can become a Fan/Like:  Facebook.com/REMAXPremierGroup, follow us on Twitter.com/REMAXPremierGrp or YouTube.com/REMAXPremierGroup. We highly encourage you to do so because we post valuable information and more.

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FHA Loan Mistakes to Avoid

When buying your first home, there are many mistakes that can cost you thousands and hinder the process to get you into the home that is right for you.

One long-standing program that has assisted millions of first-time homebuyers is the FHA (Federal Housing Administration) mortgage program. An FHA loan is a loan the government agency insures against default. Approved lenders can issue these loans, which tend to be less restrictive to borrowers facing economic hardship.

Here are a few common mistakes to avoid when considering an FHA loan for your first home:

  • Failing to consider an FHA loan. If you are thinking of purchasing a new home, considering an FHA mortgage could be a vital step. The FHA program allows lenders to offer home loans to borrowers with limited or less-than-perfect credit histories. While FHA mortgages require that you pay a mortgage insurance premium, FHA mortgage rates could be lower than you would get otherwise.
  • Making a major credit purchase immediately prior to applying for a loan. Your debt-to-income ratio is a major determining factor in whether or not a lender will approve your loan application. Your debt-to-income calculation is based on your current debts and the percentage of that debt against your income. Major credit purchases will seriously alter that ratio sometimes enough to significantly hurt your chances for obtaining an FHA loan. You can also improve your debt-to-income ratio by paying off credit card balances or other outstanding loans.
  • Not reviewing your credit report. An FHA-loan approved lender will always look at your credit report and credit score. Your credit report gives the lender an idea of your debt, your ability to pay your bills on time, and your overall credit reliability. Before you apply for an FHA loan, review your credit report and score. It could contain errors that could affect your ability to purchase a home. Once you’ve carefully reviewed your credit report and are confident in your credit history and score, you should initiate the preapproval process.
  • Neglecting to save enough money upfront. While an FHA loan generally requires a lower down payment than other loan types, there are still upfront costs involved in an FHA mortgage. Ensure that you’ve budgeted carefully and saved enough for the necessary down payment. There are also fees and expenses due at closing for things such as mortgage processing, insurance, home inspection, and title fees. Make sure you have a generous amount of savings above and beyond your down payment to cover any closing costs and upfront expenses.

FHA loans have helped countless homeowners in the past. An FHA mortgage may be a good fit for you as long as you avoid these common mistakes. For more information please contact our preferred lender.

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Must-Have Mobile Apps for Home Buyers

There’s an app for nearly everything these days. The real estate market is no exception. Here are a few helpful apps for people searching for a home or those who may just be interested in the market and new technology: 

App: Move Inc.’s Realtor.com Home-Search

Price: FREE

Realtor.com’s home-search app provides users with new listings, saved searches, and open house information, among many other things. It lets consumers rate and comment on listings for personal reference and share listings of interest.

App: Quick Mark

Price: FREE

 

Have you seen barcodes like this one all over lately?

These barcodes are everywhere including the real estate market right now. Once you download the app, you can take a picture of the barcode with your phone, and it will send you to a website. The Quick Mark barcode function is similar to clicking a link online.

App: Google Maps 

Price: FREE

Google Maps comes standard on most Android phones, so you may already have it installed. The Google Maps app is especially helpful when you’re searching for a home or have lost your way while house hunting. It offers step-by-step driving directions as well as map views .

App: Zillow

Price: FREE

The well-known online real estate community’s app allows you to search for nearby homes for sale and get “Zestimates” using your phone’s GPS. You can also filter homes by bedrooms and bathrooms, save your searches, and view full size photos.

App: Suburb Scout

Price: $1.99

Suburb Scout is an app that searches for possible neighborhood nuisances like airports, sewage plants, nuclear plants, landfills, railroads, and prisons. If you’re searching for a new home, this can be a useful tool in helping you make your decision.

App: Where

Price: FREE

Where is an app that provides information on the surrounding amenities of a specific area. You can find anything from nearby news, dining, movies, events, gas prices, coupons for local businesses, and reviews. Conveniently explore the area around a home without even getting in your car.

App: Karl’s Mortgage Calculator

Price: FREE

This app is useful for determining how much your monthly house payment may be.

App: iHandy Carpenter

Price: $2.99

Do you need a plumb bob, surface level, bubble level bar, steel protractor, and/or ruler, but you don’t find yourself often carrying around a carpenter tool kit? Then this app is for you!

App: Evernote

Price: FREE

This app is great when you’re out looking at homes. There are a lot of things you need to remember about each home you look at. Evernote allows you to take notes, pictures, or even use the voice recording function so you can have all your notes handy. You can then load the information from Evernote right to your computer of laptop.

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Will My Home Appreciate?

The bad news: It’s unlikely that we will ever see homes appreciate the way we did leading up to 2006. Or at least anytime soon.

 The good news: It’s likely home prices will eventually rise, and your home could appreciate.

 So what do you look for in a home when buying to increase the chances of appreciation?

  • Location, location, location! It’s a real estate cliché, but it makes sense once an investor understands the impact of land value on appreciation. The reason that land is an appreciating asset is because of supply and demand. Land is in limited supply, and no one is producing any more. The demand for land is constantly growing as the population increases. The reality is that the physical structure will likely depreciate over time. With regard to appreciation, homebuyers should look past the physical attributes of the home and focus how its location in the market will affect overall return. Other considerations regarding the location of a home that is more likely to appreciate: Is the home in a more private and desirable cul-de-sac or on a more frequently used street? What is the condition of the neighborhood? What is the proximity to recreation such as golf courses, parks, also shopping and places of employment?

 

  • Buy during the off-season. Often, many sellers who choose to sell during the wintertime/holidays are looking to sell quickly. Also, many homes listed for sale in the winter are generally not new homes and may consequently have price reductions. You will have less competition during the winter because most people don’t want to move during  the month of December. If you buy your home during a time when there is less competition, the chance of appreciation will increase. 

 

  • Be mindful of potential future development. Future development can change your property’s value for better or worse. Be mindful of the present state of local amenities as well as the future prospects for commercial and governmental development. The demand for real estate is affected by the availability of jobs, the availability of land, proximity to shopping, schools, parks, churches, population changes, desirability of an area, crime levels, zoning changes, etc.

 

  • Consider cost-effective improvements. Certain improvements can increase the value of your home. However, other improvements, dollar for dollar, produce a low return.  Plan carefully and make improvements that result in the highest level of appreciation for the money that you spend.  If you make too many costly improvements, you will likely not recover those costs when you sell. Adding a garage door can get you a higher return on your investment than some other upgrades. A wood deck or a minor kitchen remodel can recoup a higher percentage of their costs than major remodeling projects such as adding a wing to your home. Remodeling your basement or adding an attic bedroom can also generally get you a high return. 

 

When asking yourself, “Will my home appreciate?” it’s important to look beyond the physical attributes of the home and focus on the potential for land appreciation. When buying a home, concentrate on properties that provide opportunities for improvement to enhance the value of the land. If you are interested in tracking appreciation, visit the site of the Office of Federal Housing Enterprise Oversight , which allows you to check the housing appreciation in your area or if you are in the Tampa Bay area just contact us for a free home evaluation. Yes. We said it: FREE.

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