Realtors say Amendment 1 a good start but more is needed
Real estate pros react to amendment passage
PETE SKIBA Florida Weekly correspondent

Real-estate professionals held out dim hopes that the recently adopted Amendment 1 property tax amendment would jump start the housing market.

"The tax benefits might help people who have lived in their homes for more than five years," said Ken Worthington, a Realtor with Century-21 Sunbelt Realty. "Saving $240 a year in taxes doesn't really help anyone. It won't influence a new buyer."

However, another round of interest rate cuts by the Federal Reserve means rates have dropped nearly two percentage points since September. That will likely spur buyers, realtors said.

And most agreed that while Amendment 1 is a good beginning, more strategies need to be funded and employed.

"It only really helped move-up buyers with good income and equity," said Michael Polly, vice president of Denny Grimes and Company. "It is the first step in the right direction, but we can't stop. We must become more competitive with other states."

Amendment 1 increases the existing $25,000 primary residence homestead exemption from $25,000 to $50,000 on taxes other than school taxes.

That amounts to about a $240 savings for an average homeowner.

The other benefit offers a portability provision, allowing homeowners to take up to $500,000 worth of Save Our Homes tax benefits to a new residence. It is retroactive to homes sold in 2007.

"I think that the portability will help the market," said Susan Ritter, a realtor with Century 21 AAIM Realty Group. "Older people downsizing will be able to carry their benefits with them. It is also a selling point to people just moving here. When the market gets back to normal they can sell and move up, taking their homestead with them."

Without giving specific details on his home price, William Bell, a Fort Myers general contractor, said the amendment's portability will benefit him.

"I'm building a new house. I plan to eventually sell my old house," he said. "I'll be able to move $500,000 in tax savings to the new house. That should work across the board for everyone."

The amendment might not work so well in other price ranges, said Renay Montague, owner of RE/Max Sundance Realty II. The middle-class housing market wouldn't be affected.

With more than 20,000 homes for sale, Montague said, the amendment would have no effect because people are losing their homes.

Her sales force has been selling many homes short, or for less than the lender is owed, or selling homes that are already in foreclosure.

"There are 11,000 homes in Lee County for short sale or in foreclosure. People are looking at them but not buying," Montague said. "The $240 and the portability do nothing for those (sellers). We are in a recession and we need something to stimulate the economy and get it back on track."

When the construction industry tanked, Melissa Morris and her truck-driver husband lost income.

"We are just trying to sell our house and cut back, maybe rent, maybe move out of the state," said Morris, a Bonita Springs resident. "I don't see how (Amendment 1) can help us."