Ever wonder what the City of Vero Beach was doing as the middle-man for electric services? Well, it's to make $$$$! And it's going so well that they can pay dividends to the stockholders. Those stockholders, the city and it's residents, add up to only 39% of the electric accounts within the city limits. 61% of the City of Vero Beach electric customers are OUTSIDE of the city. and for that, they pay over 21% MORE for their electric than if they were serviced by FPL!
There is a growing push for the city to get out of the electric business altogether, especially since they merely buy and resell it, rather than generate the power. And some would like to give those outside the city limits an opportunity to switch to FPL if they so desire. Others, chiefly city officials on the cash reaping end of this situation, think it's all just fine the way it is. And get this, those outside the city limits have no voting rights on the issue, even it were to come to a city-wide referendum.
Whatever side of this you might stand on, it IS something impacting some of the real estate transactions in this county. Now, about 30% of the time, I'm asked what entity provides the electric to the address BEFORE I'm asked the list price of the property! I am continually faced with both buyer and tenant prospects seeking to avoid the excess charges for electric from the City of Vero Beach.
Let's hope that when VB's contract begins on January 1st, 2010 with Orlando Utilities Commission, the new power provider, the bills for those receiving electric service from the City can be negotiated to fall more in line with what it would cost through FPL.
Thursday, April 30, 2009
Monday, April 27, 2009
National Law Week
From April 27 through May 1st, 2009 the Indian River County Bar Assosciation is participating in National Law Week, including 'Ask a Lawyer' which is FREE to all county residents.
Sponsored by the IRC Bar Association, the IRCBA Young Lawyer's Division, and the IRCBA Laywer's Auxilary, there are a number of ways to get free information on legal matters this week.
* Face-to-Face: Monday, April 27th
In the Law Library at the Indian River County Courthouse from 9AM to 5PM, lawyers will be on hand to answer questions covering nearly all areas of the law.
* Live TV show: Wednesday, April 29th
On Comcast channel 28 from 7PM to 9PM phone your questions to a panel of lawyers at 772-564-4800.
* FAMILY LAW CLINIC: Thursday, April 30th
In the IRC Courthouse Law Library from 12 noon to 5PM, lawyers will be available to the public "for assistance and guidance regarding family law issues."
*During the week lawyers will go into local schools to talk about the importance of the law and discuss legal issues
Sponsored by the IRC Bar Association, the IRCBA Young Lawyer's Division, and the IRCBA Laywer's Auxilary, there are a number of ways to get free information on legal matters this week.
* Face-to-Face: Monday, April 27th
In the Law Library at the Indian River County Courthouse from 9AM to 5PM, lawyers will be on hand to answer questions covering nearly all areas of the law.
* Live TV show: Wednesday, April 29th
On Comcast channel 28 from 7PM to 9PM phone your questions to a panel of lawyers at 772-564-4800.
* FAMILY LAW CLINIC: Thursday, April 30th
In the IRC Courthouse Law Library from 12 noon to 5PM, lawyers will be available to the public "for assistance and guidance regarding family law issues."
*During the week lawyers will go into local schools to talk about the importance of the law and discuss legal issues
Saturday, April 25, 2009
The New Sub-Prime
The proliferation of FHA loans that are being pushed on buyers, making them believe they can afford more expensive homes if they get the seller to pay up to 6% of the closing costs, has just gotten out of hand!
Nearly every buyer coming through the door, with a pre-qualification letter from a lender, is expecting the seller to absorb a large portion of the costs traditionally charged to buyers. And why is that? Well, it's really back to the issue of banks not wanting to loan money, whether they got bail-out funds or not. They're looking for government backed loans to carry them through. And they have no difficulty trying to push buyers into properties they really can't afford. Time was when Realtors were blamed for that...now the truth comes out!
FHA loans do ALLOW for up to 6% of the sale price of the home as a CONTRIBUTION from the seller. But now most of the buyers can't afford the homes without this infusion from the seller...and it amounts to blackmail. A contribution is something traditionally considered to be voluntary. But the way the banks are getting hold of the borrowers and morphing their buying power puts the seller into a situation that's anything but voluntary.
In this terrible market for sellers, where there are loads of homes listed for incredibly low prices, often well below what they cost years before, the sellers are being told to bite the bullet even harder. If they don't accept these conditions then the buyer moves on, looking for someone else who is desperate and will 'cave'.
This practice is painting an untrue picture of actual sales prices. If the seller is forced to give the buyer 6% back on the sale price, is it fair to report the full contract price in the county records and to charge the seller for title insurance and transfer tax on the deed at the full price? This misrepresentation just skews the tax rolls and inflates the recorded prices. If you look up past sales and think a particular home sold for $200,000, think again. If the seller had to give back 6% or lose the deal, then the sale price just sank to $188,000. Do the math at any price point you like. It's a huge chunk for sellers to give up, especially now.
Haven't we, as consumers, learned out lesson yet? I know that giving each other a helping hand or a leg up is part of the wonderful American spirit. But this 6% 'shakedown' isn't right. Approximately 3% will usually cover the buyer's necessary closing costs. Most sellers understand that and, if they are able, are often willing to go that far to help make a deal come together. But why 6%? What's the other 3% for? The other 3% is going toward covering all the costs built into the loan...all those charges due to the lenders...who keep this charade going!
It's the new 'sub prime'.
Nearly every buyer coming through the door, with a pre-qualification letter from a lender, is expecting the seller to absorb a large portion of the costs traditionally charged to buyers. And why is that? Well, it's really back to the issue of banks not wanting to loan money, whether they got bail-out funds or not. They're looking for government backed loans to carry them through. And they have no difficulty trying to push buyers into properties they really can't afford. Time was when Realtors were blamed for that...now the truth comes out!
FHA loans do ALLOW for up to 6% of the sale price of the home as a CONTRIBUTION from the seller. But now most of the buyers can't afford the homes without this infusion from the seller...and it amounts to blackmail. A contribution is something traditionally considered to be voluntary. But the way the banks are getting hold of the borrowers and morphing their buying power puts the seller into a situation that's anything but voluntary.
In this terrible market for sellers, where there are loads of homes listed for incredibly low prices, often well below what they cost years before, the sellers are being told to bite the bullet even harder. If they don't accept these conditions then the buyer moves on, looking for someone else who is desperate and will 'cave'.
This practice is painting an untrue picture of actual sales prices. If the seller is forced to give the buyer 6% back on the sale price, is it fair to report the full contract price in the county records and to charge the seller for title insurance and transfer tax on the deed at the full price? This misrepresentation just skews the tax rolls and inflates the recorded prices. If you look up past sales and think a particular home sold for $200,000, think again. If the seller had to give back 6% or lose the deal, then the sale price just sank to $188,000. Do the math at any price point you like. It's a huge chunk for sellers to give up, especially now.
Haven't we, as consumers, learned out lesson yet? I know that giving each other a helping hand or a leg up is part of the wonderful American spirit. But this 6% 'shakedown' isn't right. Approximately 3% will usually cover the buyer's necessary closing costs. Most sellers understand that and, if they are able, are often willing to go that far to help make a deal come together. But why 6%? What's the other 3% for? The other 3% is going toward covering all the costs built into the loan...all those charges due to the lenders...who keep this charade going!
It's the new 'sub prime'.
Let the Games Begin!
Good News ?!?!
Well, here goes... I'm creating this blog site to keep up-to-date on recent events that I believe can effect the local, state and national real estate markets. I'll post commentary every week, sometimes every few days. I hope that this, along with my monthly newsletter, will keep you all informed and maybe even entertained.
OK, so for the first of the commentaries is the news that our revered Dodgertown has been 'leased' to Minor League Baseball for $1 per year, along with their agreement to maintain the facility to the tune of approximately $100,000 per year. The contract was forged for an initial 5 years and is apparently renewable.
Is Minor League Baseball in Vero Beach a good thing? Who knows? Will it draw the interest and loyalty of visitors that came for the Dodgers? Will it be a boon to our ever-so-slow economy? Will it help to stem double digit unemployment here in Indian River County? Will county residents flock to the practice fields to watch and find any enjoyment there again, after decades of the Dodger connection?
There is talk of the golf course being revitalized. It was a shame to let it go in the first place. But now, with the economy slow and fewer visitors showing up during 'season', why do we need another golf course? So that the minor league players can relax on the links, along with those attending the proposed fantasy camps, United Football League practices, umpire training and grounds keeper training programs? Is this all sounding a bit honky-tonk to you, too?
Seems a shame. At a time when the county could have aimed high, going after another Major League team, instead they just aimed. Let's hope that this deal doesn't leave us all out in left field.
Well, here goes... I'm creating this blog site to keep up-to-date on recent events that I believe can effect the local, state and national real estate markets. I'll post commentary every week, sometimes every few days. I hope that this, along with my monthly newsletter, will keep you all informed and maybe even entertained.
OK, so for the first of the commentaries is the news that our revered Dodgertown has been 'leased' to Minor League Baseball for $1 per year, along with their agreement to maintain the facility to the tune of approximately $100,000 per year. The contract was forged for an initial 5 years and is apparently renewable.
Is Minor League Baseball in Vero Beach a good thing? Who knows? Will it draw the interest and loyalty of visitors that came for the Dodgers? Will it be a boon to our ever-so-slow economy? Will it help to stem double digit unemployment here in Indian River County? Will county residents flock to the practice fields to watch and find any enjoyment there again, after decades of the Dodger connection?
There is talk of the golf course being revitalized. It was a shame to let it go in the first place. But now, with the economy slow and fewer visitors showing up during 'season', why do we need another golf course? So that the minor league players can relax on the links, along with those attending the proposed fantasy camps, United Football League practices, umpire training and grounds keeper training programs? Is this all sounding a bit honky-tonk to you, too?
Seems a shame. At a time when the county could have aimed high, going after another Major League team, instead they just aimed. Let's hope that this deal doesn't leave us all out in left field.
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