REAL Exclusive Magazine

Plymouth Harbor On Sarasota Bay

By Tracy Eisnaugle

Plymouth Harbor graciously opened its doors in 1966. A dream turned reality for The Rev. Dr. John Whitney MacNeil, who envisioned an inclusive, interfaith community based on shared values: trust, open communication, integrity, honesty, innovation, and superb quality. Over the years Plymouth Harbor has evolved into the area’s most distinctive community for active older adults, establishing a lasting tradition based on their strong principles, and attracting generations of exceptional residents. Read More

REAL Magazine April 2009

Featuring: 701 Riveria Dunes Way, Cheryl Loeffler, Charlotte Bertha, Ringling Wisconsin Rail Car, Coldwell Banker & Plymouth Harbor.

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RECHARGED….. on St. Armands Circle

By Lalaena Gonzalez-Figueroa
Photography By Chad Spencer

 
If there is one message Coldwell Banker International Previews broker/manager Michelle Burke-Phillips wants to share, it is this: There’s no need to compromise. Despite a transitioning market that has given rise to its fair share of challenges, Burke-Phillips and the professionals at Coldwell Banker International Previews, St. Armands Circle, continue to sharpen their skills, build their listing inventory portfolio, generate sales and focus on positioning for a stronger future. Read More

Coldwell Banker Residential Real Estate’s Southwest Florida Market Leads International Sales

By Sue Wolverton

The Southwest Florida region of Coldwell Banker Residential Real Estate, the leading real estate brokerage company in Florida, led international sales with over $49 million in closed sales volume in 2008. Comprised of 21 offices and nearly 1,000 sales associates in Manatee, Sarasota, Charlotte, Lee and Collier Counties, the Southwest Florida area represents 58 percent of Coldwell Banker international sales across the state. Coldwell Banker Previews International is a comprehensive marketing effort designed specifically for marketing luxury residential properties priced at $1 million and above to affluent buyers worldwide. The program has marketed luxury properties since 1933.

“Coldwell Banker Previews International has the connections that align our sales associates and their customers’ multimillion dollar properties with the most powerful network of luxury specialists in the world. The Coldwell Banker name is one of the most respected in the marketing of exceptional real estate,” said Sue Wolverton, Regional Senior Vice President, Coldwell Banker Residential Real Estate, Southwest Florida.

In 2008, Coldwell Banker Previews International property specialists participated in nearly 16,670 transactions priced at $1 million with a total sales volume of $31.2 billion.  The scope of experience in handling luxury residential properties has allowed the sales associates specializing in luxury property in Southwest Florida to close a lot for $10,500,000, and homes priced at $9,200,000 and over $4,000,000 in 2009.

Wolverton attributes the power of electronic marketing as a key element in attracting buyers. “The Internet has proven to be a dominant tool in reaching millions of potential buyers worldwide. Home buyers are using the Internet in increasing numbers to research information on properties.” The National Association of Realtors (NAR) 2008 Profile of Home Buyers and Sellers reports approximately 87% begin the home search process on the Internet. Potential homebuyers from 158 countries in six continents visited www.floridamoves.com in January of 2009. The top countries from which users visited the site were Canada, United Kingdom, Germany, France, Venezuela, Uruguay, the Netherlands and Switzerland.

The company recently appointed Lena White to the position of Manager of Luxury and International Markets. White, a real estate professional for 15 years and the company’s former events and executive services manager, will direct the luxury program and further develop international relations for Florida. According to White, “Coldwell Banker Previews International is a comprehensive marketing effort designed specifically for marketing luxury residential properties to affluent buyers worldwide.” Lena White may be reached at flpreviews@floridamoves.com.

Sue Wolverton oversees the operations of 21 offices throughout the Southwest Florida region. She began her real estate career in 1976 with Barton and Ludwig in Atlanta. Coldwell Banker purchased the company in 1979 and she was a manager from 1982 until 1997. From Atlanta, she moved to South Florida and became regional manager for the Miami/Dade and Fort Lauderdale beach offices. In 1990, she transferred to the Sarasota Bay market and managed the Longboat Key office. Ms. Wolverton serves as Regional Senior Vice President for the Southwest Florida area. She is a member of the Certified Residential Brokers, and is active on the Committee for Economic Development in Sarasota.

April 2009 Exceptional Properties

Fine Homes and Luxury Estates Over $1,000,000.

Exceptional Properties Cover Feature

Deborah Beacham, Michael Saunders & Company, 941.376.2688

Villa Toscana, 1416 Casey Key Road, Nokomis, MLS #A3905279

After a short scenic drive on Casey Key you pass through a secluded circular motor court and encounter Villa Toscana. With 7,146 sq ft of living space the luxury waterfront estate home beckons one to explore. Entering the hand carved San Miguel de Allende doors your vision is immediately drawn across the room, through the central courtyard, to Little Sarasota Bay. Coming back to the interior you then move from room to room taking in the hand-crafted materials: carved book cases, stained glass insets in 8-foot mahogany doors, carved stone pedestals, hand forged railings, and a Renaissance library/dining table. Truly an Exceptional Property awaiting an exceptional buyer. 
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REAL Magazine Does Well On The Internet

By Melissa Fach

When Ed Bertha started planning REAL Magazine he contacted me and wanted to talk about creating an Internet marketing plan. This plan needed to effectively get his magazine articles indexed highly in the Search Engine Results Pages (SERPs). If we could accomplish this REAL could offer their advertisers and featured guests more than they have ever received with other magazine advertising; advertising in a magazine and effective advertising on the Web.
 
The Plan

To even hope to do well on the net you need a few basic things:

• Good Coding
• Effective Optimization
• A Search Engine Marketing Strategy
• Content, Content, Content

REAL Magazine was going to have the content and the kind of content Google wants, but to do well you have to know how to set up the pages and you have to create an optimization plan for each page. I am not sure if anyone knows just how much time REAL Magazine puts into Search Engine Optimization, but I do. It is not easy, but doing something right never is.

Ed did his research and interviewed many people on creating the right type of site. Of course the prices were all quite high and they did not offer everything REAL Magazine needed. After much thought and discussion we talked about WordPress. Ed wanted to promote his authors, featured articles, advertisers and the magazine as much as possible and we decided that WordPress was the best way to do this.

Each article is technically a blog article and to Google this is fantastic. Google likes content rich sites and they love blogs that update regularly with good articles. More importantly, REAL can market their RSS feed and use social media to market each article. By taking the time to do this REAL creates effective back links which improves their rankings in the search engines. REAL Magazine also brings in visitors from around the world with social media as soon as the publish button is hit on each page. Every time an article is added it pings the search engines and every other place we direct it to ping. Not all Web sites function this way.

What REAL Magazine Has Created

REAL Magazine has created a site that offers the search engines everything they want and REAL Magazine has been rewarded for it. You will be able to see on the next page how well the site ranks in the SERPs. REAL Magazine’s site has gained Google’s trust and it seems like whatever REAL publishes it ranks within the top five results within a week or so.

Ed Bertha is the kind of client I dream of having. He understands just how crucial it is to market on the Web in this time and in this economy. He knows he and his clients cannot survive without Web Marketing. More importantly he takes the time to optimize each page and he understands the importance of social media. Anyone that is featured in REAL Magazine is going to have a great place in the SERPs. It just shows that proper research can put your site over the edge. Congrats, Ed.

Click Here to See Ranking Examples

Melissa Fach is the owner of SEO Aware, LLC,. SEO Aware specializes in Search Engine Optimization, Internet Marketing and Consulting Services. Melissa’s education includes a Bachelors of Arts degree in Psychology and Master’s degree specializing in mental health. Both degrees have enhanced Melissa’s ability to create effective online advertising strategies and copy that sells. SEO Aware serves clients throughout the United States, but in the past year has seen a dramatic increase in Florida-based clients. Melissa can be reached at 941-350-3782 or melissa@SEOAware.com. Visit www.SEOAware for more information.

Sarasota Style – Let’s Frame It!

By Pamela Hughes

In past columns, I’ve written about lighting, color, furniture placement and other elements of successful interior design. In this column, I’d like to write about the how’s and why’s of framing artwork. But first, let me share with you an adventure which brought me to this column’s topic.

It was difficult to leave Sarasota and fly to DC rather than spend some well-deserved time at the beach. But I did, and it was for a good cause. I had been asked to assist The Prince of Wales Foundation in their endeavor to preserve traditional artisan crafts (such as gilding, wood and stone carving, wrought iron and stained glass making) not only in Great Britain and the U.S., but around the world.

One of The Foundation’s specific goals is to teach the ancient craft of gilding to disadvantaged children through a robust international series of workshops and classes. Part of my “entrance exam” to work with The Foundation was to take an intensive two-day course in Water Gilding. The course was taught by one of the world’s foremost gilders and frame historians, William B. Adair of Gold Leaf Studios in Washington, DC. He is also the founder of The International Institute for Frame Study, and is one of the leading forces in providing education and a skill set in the art of gilding to young people around the world through The Foundation’s programs. It is an admirable task.

And what a fun course! I actually started with a rough frame and produced, at the end of two days and much work, a wonderful gold leaf frame! Throughout the course, which was attended by several of Britain’s top framemakers and gilders, I learned much about the art of framing.

I’ll pass on some nuggets of wisdom:

First of all, the frame is an extension of the artwork. It should always be subservient to the art.  It should be synchronous with the time and style of the artwork. When a frame is allowed “to sing”, it is when it is used on a mirror.

When framing a portrait, the width of the frame should try to match the width of the head.  Otherwise, the head could look too large or small.

The frame should be well-tailored and proportional to the work of art. This is achieved by the size and shape of the moulding, the texture and detail of the moulding and the color (gilt, paint or wood).

The frame should catch and reflect light (called “luminosity”). Gold is used frequently as the color of moulding as it reflects light so readily, and is neutral as a color.

In climates such as Sarasota, with lots of bright light, frames should often be soft and muted and not brightly gilded. Brighter frames work better in darker, Northern climates where there is less light to reflect.

Also in Sarasota, we need to protect our artwork from the sun. For prints on paper, we should use acid-free materials and ultraviolet filtering glass which reflects 97% of the UV light. The back of the artwork should be sealed to prevent moisture infiltration. It is also important not to hang valuable artwork in direct sunlight.

With regard to matting for paper pieces, matts should be weighted slightly on the bottom to counteract the optical illusion of being top-heavy. This means the matt dimension on the bottom should be slightly larger than the dimensions on the top and sides. Traditional matting techniques use weighting in a subtle way. For contemporary pieces, matts can be oversize, even to three times the size of the artwork with massive weighting on the bottom.

For contemporary and modern interiors, the frame should reflect the architecture and should be sleeker and without excessive ornamentation. The frame is still important for these pieces however, and the interest must be found in subtle detail, shape, and color.

Many wonderful contemporary frame designs of today are based on the work of modernist artists such as Willem De Kooning and Franz Kline, from the Bauhaus era in the 20’s and 30’s through the 1960’s. 

Picture lights used over valuable artwork should have filters so as not to “burn” or damage the top portion of the painting.

Period paintings should have a frame of an historically accurate period as well. However, there is one very famous artist who did not follow this rule and benefited greatly from it. Picasso! What Picasso did was use antique frames on his, at the time, very contemporary paintings. These antique frames added greatly to the value of his work because collectors could hang his paintings in their Old Masters collections and they looked great! The frames were all old and of an historical period so they all worked together. This gave him instant success. What a smart guy.

So, I guess that means that some rules can be broken, but most of us aren’t Picasso, so I tried to learn a few.

What a great way to spend the weekend. I learned so much, and hopefully will be able to help others with my involvement.

Photo: William Adair & Pamela Hughes

Pamela Hughes, the founder and owner of Hughes Design Associates, is well known nationally and internationally. Hughes Design Associates is one of the premier interior design firms known throughout North America for specializing in prestigious custom interiors. In Sarasota, Pamela has completed many exceptional projects including The Ritz-Carlton, The Members’ Beach Club, The Tower Residences, and Plaza at Five Points. Her portfolio also includes some of the most luxurious and distinctive residences in Sarasota. Pamelas’s work has been published in the best interior design magazines such as Architectural Digest and Veranda, as well as numerous other publications. Also, Home and Garden Television (HGTV) featured her in the program, “Public Places, Private Spaces”, showcasing her work on the Four Seasons Hotel, Philadelphia, and a luxurious private home in Chicago. In addition to their work in Sarasota, Pamela and her firm design projects throughout the US, Canada, the Bahamas and the Caribbean.  Pamela may be reached at 941.922.4767 or visit www.hughesdes.com.

“Unconditional Surrender”

By Tracy Eisnaugle

Various controversies surround the intriguing WWII commemorative statue that graces our bay front, the Unconditional Surrender. I was searching for vintage movie posters for a client recently when I ran across a photograph depicting the renowned embracing couple. It got me thinking about how this one image could stir such sentiment and popularity that it would later be resurrected into a towering statue.

The Unconditional Surrender by J. Seward Johnson is a twenty-six foot tall sculpture replicating the notorious photograph taken during the WWII’s V-J Day celebration titled, The Kiss at Times Square captured by Alfred Eisenstaedt for Life Magazine on August 14, 1945. The nameless sailor and nurse were wrapped in a tender embrace, a liberating expression of victory and an uninhibited celebration of freedom.

I must admit that I drive along the bay front a few times a week and the massive kissing couple always makes me smile. A romantic at heart, and also a graduate from our local Sarasota High School, “Home of the Mighty Sailors,” therefore I still have an affinity for a seaman in uniform. While waiting in traffic I always see numerous couples circling in delight, posing and taking photos, pointing and smiling. On Christmas morning while coming back from running the causeway I witnessed a young man proposing to his now fiancé under the romantic monument.

Evoking all ages, but why? I ask, so I attained my public relations representative, Miss Ladybyrd Divine, also our family dog and head of security. Leash in hand we headed down to the bay front to do some research. In just two short hours we met over a dozen groups of visitors, some local and some from as far away as New Zealand. They had all either driven by or had heard about the statue from someone else; “A must see!” they were told. Almost each group of sightseers took photos and more than half struck the famous pose. Old and young, veterans and civilians, all drawn to this tender display of affection, using words such as freedom, pride, glory, love, honor, hope and triumph to describe the art they were admiring.

The word art is the first of the many controversies that surrounds this popular statue. Many art critics claim that reproducing a famous image from a photograph is not original artwork, though the people who gather to enjoy the sculpture seem to differ on that opinion; whether it is true original art or not, it is being greatly enjoyed by a large group of people and attracting a lot of attention.

The art critics originally won the battle, but they did not win the war, after much criticism by the public art advisory committee the peaceful statue surrendered to its adversaries and traveled to the Navy loving town of San Diego. Sarasota locals adored the patriotic and romantic symbol and they fought to bring it back to the Suncoast. A local non-profit raised enough money to have the statue return and grace our bay front once again.

The original photograph itself is part of its own disparity; two photographers took the same image at the same time, so there are two of these pictures being rapidly reproduced for poster art across the nation. Alfred Eisenstaedt reflected on his account of taking the photograph on V-J Day; he was in Times Square rapidly taking photos to capture the celebration when he saw a sailor running down the street grabbing any and every girl in sight. Eisenstaedt was running ahead of him and when the sailor grabbed the nurse the composition was perfect, the sailor in his blue uniform and the nurse in all white created a stunning contrast. U.S. Navy photo journalist Victor Jorgensen took a very similar photograph of the same couple at the exact same time, the only difference is the angle is slightly to the right, changing the background and the photo is closer, cropping off both the nurse and the sailors’ legs.
 
The biggest and still debated controversy is the kissing couple themselves; our photographers were so busy taking photos, freezing moments in time that they did not get their subjects names. In August of 1980 the editors of Life Magazine requested that the kissing sailor and the nurse come forward, eleven men and three women claimed to be the famous couple. After extensive research Edith Shain and Glenn McDuffie were declared the probable duo. It is quiet ironic that we find the statue so romantic when in reality it is a snapshot of two people who did not know each other and never saw each other again sharing a quick celebratory moment.

As the statue resides on our scenic bay front with the Sarasota Bay as its serene backdrop it sits in great contrast to where the original event took place, in the busy streets of New York’s Times Square. We can debate the art aspect, the actual people in the photograph, and even the location, but what we cannot debate is that Sarasota and her visitors love this statue and hope to become the lasting home of the inspirational Unconditional Surrender.
Tracy L. Eisnaugle has practiced interior design in Sarasota since 1997 and is currently self employed providing design consultation services in the area. She is a graduate from Florida State University with a Bachelor of Science in Interior Design and continues her education by attending annual conferences. Her past experience includes, Design Center Manager for Lee Wetherington Homes, high-end residential design and model merchandising. Tracy may be reached at 941.232.3358 or by e-mail at tleisnaugle@msn.com.

To The Rescue

By Steven Greenberg

“Foreclosure rescue,” the very term conjures up an image of someone riding in on a white horse, sword raised, ready to take on the evil lender who is foreclosing on a homeowner in distress. Unfortunately, sometimes the “white knight” is really a devious villain in disguise, with the intent of defrauding the distressed homeowner.

As a REALTOR®, you may have received inquiries from homeowners with regard to “foreclosure rescue” and “foreclosure fraud.” The following may help you better understand the implications of a “foreclosure-rescue transaction.”

To protect homeowners from unscrupulous foreclosure rescue consultants and equity purchasers, the legislature recently passed a “foreclosure fraud” bill. The new legislation created section 501.1377, F.S., and went into effect October 1, 2008. The stated intent of the legislation is to provide homeowners who are at risk of losing their homes due to foreclosure or nonpayment of taxes, with the information necessary to make informed decisions regarding the sale or transfer of his or her home to on equity purchaser.

The first thing to remember is that the statute only applies to “foreclosure-rescue transactions,” which is specifically defined as transactions in which (i) residential real property in foreclosure is conveyed to an equity purchaser (“equity purchaser” is defined in the statute as any person who acquires a legal, equitable, or beneficial ownership interest in any residential real property as a result of a foreclosure-rescue transaction, but specifically excludes interests obtained through foreclosure, court order and various intra-family conveyances), (ii) the homeowner maintains a legal or equitable interest in the residential real property conveyed (i.e. an option, lease option, beneficiary or trustee) and (iii) it is designed or intended by the parties to stop, avoid, or delay foreclosure proceedings against a homeowner’s residential real property.

The statute includes numerous safeguards to protect homeowners who are involved in such transactions. Of particular importance is a provision that creates a rebuttable presumption that the foreclosure rescue transaction is really a loan transaction. While the definition of a “foreclosure-rescue transaction” is quite broad, this presumption only applies to those foreclosure rescue transactions that specifically include an agreement allowing the homeowner to repurchase the property, such as a lease option. In such situation, the statute provides that the deed from the homeowner to the equity purchaser is deemed a mortgage rather than a conveyance. It is important to note that the above presumption does not apply as against creditors or subsequent purchasers for valuable consideration, without notice, unless the repurchase agreement (or a memorandum thereof) is recorded.

Although many equity purchasers include “foreclosure rescue” in their name, it is not always going to be obvious when the statute applies. Accordingly, if there was a foreclosure action filed against the homeowner and then a subsequent conveyance of the property which includes a right of repurchase by the homeowner either in the deed or in a separate writing, one must assume that the deed into the equity purchaser will be treated like a mortgage. For a conveyance from the equity purchaser, it will be necessary to obtain and record a deed from the original homeowner as well as a deed and satisfaction of mortgage from the equity purchaser. Furthermore, a mortgage from the equity purchaser will require a deed from the original homeowner which specifically releases its option to purchase and a satisfaction of mortgage from the equity purchaser.

The penalties for violation of the act are severe. The section provides that any person who violates any provision commits an unfair and deceptive trade practice and is subject to the penalties and remedies provided in part II of Chapter 501, including a monetary fine of up to $15,000 per penalty

Steven R. Greenberg has practiced Real Estate law in Sarasota since 1986 and is a shareholder in the law firm of Icard, Merrill, Cullis, Timm, Furen & Ginsburg, P.A. He is board certified by the Florida Bar in real property law and frequently lectures on matters involving real estate transactions. Steven may be reached at (941) 365-6216 or by calling Linda Witt, Director of Marketing, directly at (941) 586-4412 or by email at MzWitt@aol.com.

Benefits Of Investment And Rental Real Estate

By Jeff Riddell

The benefits of owning investment and rental real estate are pretty obvious: wealth building and cash flow. Don’t let the current market discourage you. The time to buy is when prices are low. Now let’s expand on that with some tax talk.

For rental properties one of the benefits is income, but another benefit is depreciation (sometimes referred to as cost recovery). Conceptually IRS treats the improvements (buildings, parking lots, exterior lighting, etc.) on rental and business real estate as if the improvements were deteriorating year by year and becoming less and less valuable—almost like a depletion allowance for oil and gas. Depreciation allows you to write off the theoretical deterioration each year even though we all know such properties do not deteriorate if they are well maintained—and usually go up in value over time, not down.

To compute the depreciation allowed for a rental property, first subtract the land value from the total value to determine the depreciable basis. For rental houses, condominiums and apartment complexes (residential), you then divide the depreciable basis by 27.5 years to determine your annual write-off. For other rental real estate such as office buildings and shopping centers (commercial), you divide the depreciable basis by 39 years—these are approximate because they do not take into consideration what month you bought the property, but otherwise the annual percentage write-off for residential is 3.636% for most years and non-residential is 2.564%. Why the difference in depreciation schedules? The answer is: our government encourages residential (housing) development through the bigger depreciation deduction.  So, for a $300,000 property with a $50,000 land value, the yearly depreciation deduction would be about $9,091 for residential property; $6,410 for commercial property.

For example, suppose you buy a $250,000 rental house, allocating $50,000 to nondepreciable land value. Dividing the $200,000 cost of the structure, each year for 27.5 years you can deduct on Schedule E of your tax return approximately $7,300 without having to pay even one dollar in cash for any actual depreciation expense.

If the depreciation tax loss on a rental property exceeds the rental income (where, for example, Schedule E of your tax return shows a negative number for a particular property), the rules passed in 1986 to stifle tax shelters (passive activity loss limitation rules or PALs) prevent you from writing off the excess losses against other income. There are two exceptions: active participation and material participation. Active participation allows real estate investors whose adjusted gross income (AGI) does not exceed $100,000 to deduct up to $25,000 of losses (after AGI reaches $100,000, the deduction phases out up to $150,000). Active participation requires involvement in management decisions and ownership of at least 10% of the property. Active participation is less stringent than material participation. Although Material participation may allow a real estate investor to write off all excess losses against other income, the investor must spend at least 50% of his working time in real estate activities (with minimum of 750 hours annually). Such activities include property development, construction, management, leasing and brokerage activities.

To summarize, depreciation deductions shelter approximately the same amount of the property’s rental income from tax, so an important benefit of owning rental real estate is the tax free income (cash flow) that results from depreciation deductions. By the way, taking depreciation on rental properties is mandatory under the IRS rules; if you don’t take the deprecation deductions along the way, you may have to account for them when you sell.

Jefferson F. Riddell is a Florida Board Certified Real Estate attorney with thirty-five years of experience assisting people with a variety of residential and commercial real estate matters. U.S. 1031 Exchange Services, Inc is a 1031 exchange qualified intermediary (QI) and a member of the Federation of Exchange Accommodators (FEA). As President of U.S. 1031 Exchange services Jeff has been facilitating 1031 exchanges for more than twenty years. Jeff has been awarded the Certified Exchange Specialist (CES) certification. Jeff may be reached at 941-366-1300 or via email at jeff@us1031.com. www.us1031.com

Setting The Right Expectations Will Reduce Stress

By C. J. Coury

Today, more than ever, setting the right expectations up front is paramount. This is easier said than done in the current environment with its proliferation of short sales and foreclosures that have placed the servicing bank or lender in the position of seller. This dynamic has made setting a realistic closing date extremely difficult at the time of presenting an offer. Unlike setting a short deadline to a homeowner for a response, the submission of an offer to a lender/servicer could take several weeks to be accepted. How much time is enough time to give them? The answer to that question will vary widely from one transaction to another but it is always better to over estimate the time line. I have always found it better to under promise and over deliver in every aspect of my business and personal life.

Now that your offer is accepted it is time for the buyer to finalize their financing, if any, in time to meet the agreed upon closing date. As the leader of a high volume mortgage lending team I have the unique opportunity to observe hundreds of closings each month. By far, the most frequent cause of a stressful transaction is the dreaded quick closing. During a normal market the average turn time on a new loan application is 14 – 21 days for a smooth closing. However, the market we currently find ourselves in is anything but normal and is unlikely to slow down anytime soon. A number of factors are contributing to the current phenomena we are experiencing today: Low rates, extremely attractive housing prices, payment modifications, short sale negotiations, foreclosure action and prevention, refinance demand, etc. Add to that the need to fully document every aspect of the loan application and you create a level of demand on lenders that is causing them to work well above capacity. That coupled with the fact that staffs have been significantly reduced over the past 2 years is causing a back log in the processing of loans for closing. This is being felt not only by lenders but by title agents and appraisers as well.

For the above reasons lenders have seen their average turn-times increase to 30 or 45 days from the time they are presented with a contract to purchase. What can you do to help set the right expectations in this market? When submitting your offer to purchase, make sure that you are leaving ample time to meet the demands of the current environment. Perhaps a closing date set as “30 days from acceptance” or “45 days from acceptance” would be the best approach at this time. I understand that this may not be possible all of the time but it will make for a much more pleasant and less stressful transaction for all parties involved. With the recent passing of the Homeowner Affordability and Stability Plan (HASP) the demands on lender/servicers will become even greater in the weeks ahead. Help eliminate a stressful situation by setting the right expectations up front and grow your business with happy customers!

C. J. Coury is a Senior Vice President with Bank of America and oversees their residential mortgage division serving Sarasota, Manatee and Charlotte Counties. Prior to joining Bank of America in 1995, C. J. was President of Mortgage Brokers of America in Birmingham, MI for 7 years. He has been an active mortgage finance professional since 1983. C. J. may be reached at (941) 952-2888 or by email at charles.j.coury@bankofamerica.com.

Go Global…
Exploring European Real Estate

By Patricia Tan

For the past few years, the weakness of the U.S. Dollar has made it relatively expensive for Americans to purchase property in Europe. Recent changes in the global currency landscape have changed that. At the time of going to press, the British Pound was trading 30% lower than its peak, and the mighty Euro had taken a significant tumble too. This shift in exchange rates, coupled with falling prices and over supply of real estate in many European countries, suddenly makes an investment there look attractive to those holding U.S. Dollars.

So for those Dollar-rich investors looking to make a real estate investment in Europe, what are some of the issues they may encounter along the way?

The first and best advice to heed is don’t assume anything is like the U.S.A. The method of buying property will undoubtedly vary from country to country, but you can rest assured that it will not resemble a U.S.A. real estate transaction in any way!

First, finding the property is much more difficult. The concept of a Multiple Listing System (MLS) is alien to all European countries. While there may be some level of cooperation between agents in a local area, it is not unusual to see a property listed by several agents, and often at different asking prices. The buyer must work with several agents and look at each of their personal listings to find the right property. This may be very time consuming and costly. American buyers will find the concept of a buyer’s agent, someone acting in the best interests of the buyer, to be unknown in many markets.

It is very unusual in most European countries to find any kind of required licensing for real estate agents. In some countries there may be trade associations, but membership is usually voluntary. The consumer needs to be aware that the protections afforded by America’s stringent licensing requirements for REALTORS® do not exist in Europe.

The seller’s duty to disclose any known defects with a property is not something that can be relied upon in Europe. Furthermore, many European homes will be “old”, and potentially much older than the buildings Americans are used to living in. Buildings can date from 1500s and before, and may have been in the same family ownership for many generations. The phrase buyer beware certainly springs to mind when purchasing an older property. Licensed home inspection is not a recognized trade in most countries. Thorough inspection of a property will probably involve several tradesmen who will each examine the property from the point of view of their own expertise. The electrician may uncover some plumbing problems. The plumber may observe some potential structural issues, the engineer may highlight potential roof problems and so the list goes on. It is the buyer’s job to make sense of these often conflicting reports and decide just how much maintenance and renovation may be needed!

In most, if not all countries, it is imperative that an attorney draws up the contract of sale. This will usually be done after all negotiations have been completed verbally, and the buyer’s attorney will work with the seller’s attorney to document the agreement between both parties. Each attorney will obviously be looking to protect his client’s best interests, and it can be some time to get to a fully executed contract. In some countries, advances have been made towards a standardized contract of sale, but even negotiating this can take time.

The way title to a property is recorded in each country will differ, and the method of ensuring that good title is passed will be different depending upon the country and its history. Title searches may take a several months to complete. This is usually part of the attorney’s duties, and happens once contract terms have been agreed. Title insurance may not be the norm, or even available in many countries

The options for financing a purchase will vary from country to country, as will the ability and ease of moving funds from U.S.A. to another country. Most countries have stringent money laundering rules in place, and buyers should allow time to fulfill any local requirements for sourcing funds. The timing of currency exchange is also a vital consideration, and one which should be tackled with the assistance of a specialist currency company, rather than the purchaser’s local banker.

Having said all of that, finding and owning your own little piece of Europe can be most fulfilling. Americans are often drawn to Europe by a desire to uncover their personal heritage and family roots. Once there they fall in love with the people, culture, history, food and wine, and general joie de vivre of their chosen corner of this very varied continent!

The International Division of Prudential Palms Realty in Sarasota employs real estate professionals from many European countries, fluent in 14 different languages. They will be happy to advise on aspects of European property ownership. Call Patricia Tan on 941-504-9232 for more details.

Patricia Tan was born in England, and moved to Sarasota in 1997. Her career afforded her the opportunity to live and work in many countries around the world, including Australia, Hong Kong, Singapore, Malaysia, Indonesia, Germany, France, Belgium, Netherlands and the United Kingdom. She spent five years as a Director of an American real estate franchise in England in 1990s.  Patricia has served as Chairperson of Sarasota Association of REALTORS®’ International Council, and serves on Florida Association of REALTORS®’ International Operations Committee. She currently works as International Sales Director for Prudential Palms Realty.  Patricia may be reached at 941-487-5107 or patriciatan@prudentialpalmsrealty.com.

Lake Club REAL Networking Event

May 22, 2009          11:30AM to 1PM          Lake Club Clubhouse

Annual Update on Lakewood Ranch

Featuring Rex Jensen & Brian Kennelly

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7551 Tortoise Way – Gator Creek
Equestrian Estate Home

By Tracy Eisnaugle

Everything begins to gently slow as one weaves their way through the prestigious Gator Creek community; an ultra exclusive gated neighborhood with long-established men’s golf club, secluded acreage home sites and equestrian friendly environment. Read More

Plymouth Harbor REAL Networking Event
April 17, 2009
11:30am to 1pm
Guest Speaker: Tim Dutton of SCOPE Read More