What is a CDD and how will it affect market value of a home?

A Community Development District is a special purpose form of local government described as an independent taxing district. This district exist under Florida Statue Chapter 190 http://www.ccfj.net/FS190CDD.html . The district in my community is governed by a board of 5 supervisors.

There is a misconception that the Developer/Builder borrows money from the County in the form of bonds to pay for amenities. The District (CDD) as a government entity, issues municipal bonds on the lands within the boundaries of the district to fund public infrastructure in the community such as roads, storm water systems, drainage, Utilities etc. It does not normally cover amenities such as pools, clubhouses, golf courses, tennis courts etc.

The CDD imposes a special assessment against all land owners whether it’s a developer, builder, or end user within the community. The bond is usually paid over a 30 year period. So if you purchased a 5 year old home in a neighborhood with a CDD you would inherit 25 years of CDD payments. When the bond is paid off you may still have to pay a maintenance fee. This is called an “Operation and Maintenance Assessment”. This lower payment is for the day to day operations, management and maintenance of the CDD. This is the second component and may be seen on your annual Real Property tax bill.

To see details of your Lee County Florida tax history, or if a property has a CDD, go to www. leetc.com Look at the top middle of the page where it says,” did you know you can also” Click Search Real Property Records –That will bring you to this link.

http://www.leetc.com/search_criteria.asp?searchtype=RP&c=home&r=1&page_id=searchcriteria

You can search by Account number, Personal ID#, Name or Address. I have good luck with address. Click on Details, and then Tax Details then look under non ad valorem assessments. There you will find the Name of the Community Development District and the annual amount of the CDD. This may only show the total.  If you want an Operation and Maintenance Assessment breakdown, payoff date and amount or any other information, you can contact the CDD’s name listed. If Google doesn’t work you can contact the Tax Collectors office @ 239-533-6000 to get the phone number of the CDD.

Is a CDD different than an HOA? YES

A Homeowners Association is a not for profit Corporation which is made up of members or homeowners within a specific geographic boundary, and is considered private. These HOA fees are charge separately and have nothing to do with the CDD.

Before you get down on CDD’s, there should be many factors to consider.

1.       When purchasing a home, the CDD should be considered in your budget just as any other expense would.  Include them with P&I, taxes & insurance etc. This may be used as ammunition with your proposed offer.

2.       Is the community with the CDD where you want to live? Have location, demographics, infrastructure and amenities that fit your lifestyle and you will use? Does the price of the home compare to communities close by with no CDD?

3.       Some home owners like the fact that the above mentioned items in their community are for the people in that community and not shared. For instance, if you live in a City, that City may add a pool and recreation center across town that you will never use. Guess who helps pay for it? Everyone in the City, they don’t have a choice. (I am not mocking City living, I have friends that live in the City and love it, this is only an example)This way you have the right to pick a community with the amenities for you. I hope this makes sense.

To summarize, you may not want to disregard a community that has a CDD if you can get the Location, amenities, utilities and home you want. Look at the comparable sales and consider all the factors before you make an offer. So does a CDD affect the market value of a home? A CDD payment is an expense that has to be factored in with the homes price. So my humble opinion is yes.

Written by: David A. Foster Realtor, GRI, E-pro, www.davefoster1.realtor 239-246-5660

Some of the proceeding information was extracted from CATALINA AT WINKLER PRESERVE                                      COMMUNITY DEVELOPMENT DISTRICT GENERAL INFORMATION PRESENTATION.

        Furnished by Rizzetta & Company, Inc.
         8529 South Park Circle, Ste 330
         Orlando, FL 32819

Special Thanks to Valerie Barreto Senior Finance Associate for her professional assistance.

Struggling to make your Mortgage payment?

While doing research on foreclosure procedures and information, I stumbled across a web site that is stuffed with information about loan modifications, tools and recourses that are proven to prevent foreclosure.
Operation Restoration http://www.operationrest.org/Home is a web site devoted to help consumers avoid foreclosure and help with information referring to loan modification's. As Realtors, we should keep the American dream of home ownership alive. I am blessed enough to own several properties. I hope that the true hard working people that are struggling can use this link to help save the homes their family's enjoy.

David Foster GRI E-Pro

Hero Program! Thank you to Heroes with Cash Back

 As a local Fort Myers firefighter for over 20 years, I understand how important Firefighters, Police Officers, Federal Officers, Medical Professionals, Teachers, and Military men and women are to our community! So I would like to say Thank You heroes for what you do!! US armed forces & Vets, Police, Fire, EMS, Teachers, Doctors, Nurses; Buying or selling a home? Whether you are retired or in service, get cash back at closing! Why? Because I appreciate your service! I've been doing this since 2006 and have saved my clients thousands of dollars. Put $500.00 of my commission for every $100,000 of contract price, in your pocket to do whatever you want with!! Up to $10,000. Buy appliances, furniture, pay bills, go on vacation. No catches, no gimmicks. Call me today at 239.246.5660 to get started 
David Foster GRI E-Pro
www.davefoster1.realtor

example: $350,000 contract price. $500.00 cash back to you for every $100,000 = $1500 cash in your pocket at closing. $100,000-$200,000 = $500.00 Cash Back $200,000-$300,000 = $1000 Cash back
$300,000-$400,000 = $1500 cash back etc..

The most Important step in selling your home.

The most important step in selling your home is finding that sweet spot, the accurate market value of your home. If it’s priced too high, you will know in the first few weeks.

The biggest mistake home sellers make is pricing their new listing too high thinking they can always lower the price later.

 Seasoned Realtors watch the new listings coming on the market each day. These new listings are introduced on all the international Real Estate web sites and viewed by thousands of potential home buyers. This is when your listing gets the most exposure.  You only get one chance to make a great first impression.  A high priced listing is going to help your neighbor sell their home & waste precious time. The first 2 or 3 weeks are critical!! If the listing is priced to low a Realtor is leaving the seller's money on the table. This to me is a disservice to the customer.  

Getting a true accurate market value of your home takes research, market knowledge and experience. There are so many factors that equate into the formula.  A computer based home value engine treats all homes by price and square footage. It doesn’t take into consideration if a home was well cared for, has an updated master bath or is backed up to a main road. When a buyer applies for a mortgage the new lender sends a competent appraiser out to evaluate the property.

 If the contract price is higher than the appraised value, the whole process of showing your home, taking it off the market when the contract was signed, etc., was all a waste of time. This is a very complex evaluation reviewing recent sold properties in your area and comparing them to the subject property. Every detail of the property will be considered and compared with the recent sold properties in your area.

 If you are considering selling your home it may be worth more than you think. For a true, accurate market value of your home that is backed up by facts,  contact me and I will visit your home and do a complete comparable market analysis. Then I will show you my international marketing plan that will get more qualified buyers into your home.

David Foster GRI

239-246-5660

Web Site www.davefoster1.realtor

I can't afford my mortgage payments but I can't sell because I'm UPside DOWN!!!!

I wanted to share something with you that may benefit your finances in regards to your current mortgage.  IF you are currently upside down on your loan which many people are, and have unsuccessfully tried to get your lender to modify your balance or rate with no luck, then this might work.  I have not sent out any mortgage modification e-mails in the past, because the majority of the ones that were rolled out were simply glorified forbearance programs that most families did not qualify for anyway and had to spend 6 months sending in paperwork.  This is being done for primary residences only.

This will be very fast and easy, I promise.  You do need to meet 3 things first to see if you are eligible and then take step 2.  Follow instructions below:

1.       Go to the following links and input the minimal information requested to see if your loan is insured by either Fannie Mae or Freddie Mac.  If you know you have an FHA loan, then STOP as they are not participating in the HARP 2 program

http://www.fanniemae.com/loanlookup/  This link is for Fannie

https://ww3.freddiemac.com/corporate/  This link is for Freddie

If your loan is currently insured by either one of these, then proceed to step 2

2.      You must be current on your last 12 months payments to be eligible for this program, and will be qualified with a simple debt to income formula to be sure you meet the guidelines.  If you are current, then proceed to step 3.

3.      Call your current lender and ask them IF they are participating in the HARP 2 refinance or loan modification program and go from there.  There is NO appraisal done on this program and it does not matter how upside down you may or may not be.  PRMI is not writing these deals, but the majority of people I have spoken to have completed them in 2-3 weeks w/ little hassle.

Thank you to our Guest Blogger.... Brad Stahlhut from Primary Residential Mortgage!

David Foster GRI E-Pro



Buying a waterfront home in Southwest Florida?

Buying waterfront property in Southwest Florida? Hire a Realtor that knows how to navigate the waterways, find the fish and present the property by boat. A Realtor that is experienced in Waterfront Property closings knows the many factors that determine market value of a particular property. Visit my web site for more Real Estate and buyers info http://www.davefoster1.realtor

Here are some factors in a waterfront home that affect its market value.

1.      Elevation: Insurance Company’s will require an Elevation Certificate. This is basically a finished height of the properties slab compared to the sea level elevation.

 To reflect the most current flood risks, the Federal Emergency Management Agency (FEMA) is updating the nation’s flood maps using the latest data gathering and mapping technology. New flood maps (known as Digital Flood Insurance Rate Maps, or DFIRMs) are being issued nationwide.  With these ever changing elevation flood level requirements, waterfront homes are getting harder and more expensive to insure. I work with Insurance agents who know the rules and can write the proper policy’s for your needs. For instance if a home was built in the 1970s and was compliant to the elevation rules at the time it was built, that home could be protected under the grandfather rule, resulting in lesser premiums. See FEMA web site for more information on flood zones and Grandfather Rules. http://www.fema.gov/library/viewRecord.do?id=3745  I would recommend getting at least two insurance estimates (with Flood insurance) before making an offer on a Southwest Florida Waterfront home.

2.       Which way is the back yard facing? (Rear Exposure) In my opinion, Southern exposure is most desired & valuable. Especially if the property has a pool or a pool is part of the future plans.

In the Winter, the SWFL  sun dips lower in the  southern sky. When the temperatures are cooler the sun sparkles and warms the pool and back yard all day. My second choice would be Eastern exposure. We spend a lot of time on the back patio in the afternoon. So we enjoy the shade at that time. Some Buyers prefer Western exposure so they can enjoy the beautiful SWFL evening sunsets from the back yard. Every buyer is different. My former neighbor lived across the street and preferred his western exposure. He liked to work in his garage in the late afternoon after work. So when my garage was 100 degrees in the summer afternoon his was in the shade. It’s very important to meet with and get to know your buyers before viewing potential properties. This saves both parties a lot of precious time in choosing the right property for them.

3.       Location of the Lot: If you’re a Boater or like to fish, how far, and more importantly how long does it take to get to your favorite beach or fishing spots. A boat visit to the property is a must before you buy!! Some areas may not be accessible at low tide for the size or type of boat you have.

4.       Permits: Do you want to build a pool? Boat lift? Dock? Add square footage? Better bring a survey down to the zoning department and or Southwest Florida Water Management Etc. to make sure your project is acceptable.

An experienced Realtor can guide you through this process and even write the contract contingent upon buyers obtaining a permit for boat lift or any other project that’s high on your priority list.

David Foster GRI E-Pro 239-246-5660     www.davefoster1.realtor

 

Tired of the stock market roller coaster? Want to make some real money? I know where the deals are and I have a system in place to buy fix up and sell SWFL Real Estate. If you think you may be interested contact me through my web site. Could be the best financial decision you ever made.

www.davefoster1.realtor   239-246-5660