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I JUST LOST OUT, BIDDING ON ANOTHER HOUSE!

Thu, 06 May 2021 20:37:53 GMT

In today’s market listings are getting multiple offers. The sellers are happy, but only one buyer and their agent will be happy. Let’s look if you’re doing everything you can to be the successful bidder on the next house….

1. Never offer less than the listing price (unless there is only one offer)

Most houses are selling over the listing price. I talk to a lot of agents from all over the country and what we’re seeing is about 10% give or take over the list price is what the houses are selling for. So how do you put together an offer where you win?

2. Use an Escalatory Clause – okay so what is this you ask. It is a clause that is added to the contract stating that you will pay more than any other offer that is received by the seller up to a certain amount. So on a $200,000 house you’d offer up to 10% more or up to $220,000. You also do it in $1,000 increments. Say the seller receives a contract for $210,000. Your Escalatory clause would state that you would beat any other offer by $1,000, up to $220,000.

3. So what about the appraisal? Well if you’re paying cash, you don’t have to worry about the appraisal, but if you’re financing the home you will have to come up with the difference between what the house appraised for and whatever loan to value amount you’re doing.

So the $200,000 house only appraises for $210,000 but your contract is for $220,000. So if you’re putting 20% down, the bank will only lend 80% of $210,000 which is $168,000. So you’d have to come up with $52,000 instead of the $44,000. A difference of $8,000. A lot of buyers are waiving the appraisal, or a certain amount of the appraisal. It’s called a gap appraisal addendum. This means that the buyers will pay a certain amount over the appraised value. So in the case above the buyers would guarantee to pay up to $10,000 over the appraised value. If the house doesn’t appraise for $210,000 then the buyer and seller have to renegotiate the price.

4. What about the repairs? Many buyers are getting a home inspection, but waiving any of the repairs. This way the buyers know what they are getting into as far as what will need to be done to the home after closing, but not making the seller responsible financially for those repairs. If something major comes up the buyers can always walk away, but hopefully something can be worked out.

5. What about paying some of the sellers closing costs? This is totally backwards from what used to happen. But the seller has a dollar amount in mind that they want to net for the sale of their home. By offering to pay some of the sellers closing costs, you are not offering an inflated price for the house and therefore may not have to worry about the appraisal, but the sellers are still walking away with the same amount of cash.

6. You have a pre-approval letter from a local, reputable lender. The last thing a Realtor wants to see on an offer is a pre-approval letter from some institution they’ve never heard of before and it’s located 7 states away. Best to use a local lender with a great reputation.

Want to know more about how to submit a winning offer, give me a call!

Good News for Jacksonville Housing Market

Tue, 16 Feb 2021 01:47:37 GMT

June’s housing market numbers are the largest on record, according to the Northeast Florida Association of REALTORS , (NEFAR).

The number of home sales in the Greater Jacksonville area was the largest for any one month. The number of sales even surpassed those of 2006 and 2007.

Other statistics of interest from NEFAR June report were:

Pending sales spiked up 31.8 percent from a year ago to reach 2,779
Median sales price jumped 9.3 percent from a year ago to reach $183,590
Sellers enjoyed 94.5 percent of sales being made at the original listing price
Despite 3,455 new listings being added to the market, a low inventory of 9,667 ended the month, equating to 4.4 months of supply homes sold in an average of 81 days

When there is a lower inventory of homes, we see home prices rise. A 6-month inventory of homes indicates a normal housing market, meaning it’s neither a buyer’s not sellers. So a 4.4 month inventory of homes indicates that we are approaching a seller’s housing market.

How about $15,000 in down payment assistance?

There is a new mortgage program available to buyers in Duval County through Florida Housing. For qualified buyers, they can be entitled to up $15,000 in down payment assistance, which must be used for a primary residence. This money is then forgiven over a 5 year period. If you want to know if you qualify, give me a call and I’ll put you in touch with my lender. Feel free to pass on my number to a friend if they are in the market so they can find out if they qualify also.

Hurricanes And Homeownership – What You Need to Know

Tue, 16 Feb 2021 01:45:24 GMT

⋅ Hurricanes And Homeownership: The Facts on Florida Living ⋅

We are right at the height of the hurricane season. Erika just blew by and Fred is forming off the coast of Africa. Living in Florida, we track hurricanes like investors track the stock market.

In Jacksonville, it’s very rare to get a direct hit. Usually the hurricane gets bounced back out to sea or to the north or south. The last time Jacksonville received a direct hit was 1964 by hurricane Dora.

For over 50 years, Northeast Florida has escaped the direct impact of a hurricane. A director of FEMA (Federal Emergency Management Association) retired to the Jacksonville area. When asked why he picked Jacksonville, he said that he felt it was the safest place to live on the East Coast.

Even without a direct hit, Jacksonville and the Beaches get a lot of wind and rain. The worst of these storms is usually picking up the palm fronds and pine cones from your yard afterward. Sometimes there is an occasional power outage that can last anywhere from a few hours to a couple of days.

Being prepared with bottled water, candles and even a generator is always a good idea. Most people do any cooking on a gas or charcoal grill if the power goes out. Some families even look forward to having quality time together without the TV or computers. Cards and board games often come out to pass the time and a storm becomes an excuse for a party or family get together.

In addition to being prepared with food and water; it’s also a good time to review your home owner’s insurance policy and flood insurance. Most homeowners insurance policies have a deductible of 2% to 5% of the home’s insured value for hurricane damage. If the home has water damage, it is only covered if the water comes through the roof or windows. If there is rising water, that is only covered by flood insurance.

Once a tropical storm or hurricane nears the coast of Florida, insurance policy writing is suspended until the storm passes. That means if you are buying or selling a home and the insurance policy has not been paid for, your real estate closing could be held up because there’s no homeowners insurance in place.

If you have further questions about homeowners insurance, give me a call. I have some great insurance professionals that can answer your questions.

First Time Home Buyer Programs in Florida

Tue, 16 Feb 2021 01:42:27 GMT

How would you like to be given $15,000 to help you buy your first home? If you’re planning to buy in Duval County there is a mortgage program in place through the state of Florida that offers up to $15,000 in down payment or closing cost assistance. The money is received by the buyer as a $15,000 second mortgage. Each year one fifth or $3,000 is forgiven. So if you own the home for 5 years, all of the mortgage is forgiven.

First time Homebuyers are defined as someone who has not owned a home in the last three years. So you could have owned a home before, but sold it and have been renting for the last few years. You would still qualify as a first time buyer. This is perfect for the first time buyer who may not have been able to save up enough money for a down payment. Want to know about first time home buyer programs in Florida , or if you qualify? Call , text or email me and I’ll put you in touch with a lender who can answer all your questions.

Retirement Real Estate in Florida

Tue, 16 Feb 2021 01:40:06 GMT

Have you thought about retirement and where you want to live? If the answer is Florida, you’re not alone.

Why wait to buy your home after you retire?

Several clients of mine have purchased homes prior to retirement. Why would someone do this?

You can buy at today’s prices, before home prices go up any further. Home prices in the Jacksonville market have been increasing 3% to 5% a year. At the beach home prices have increased around 10% to 15% and new home builders are raising their prices sometimes after every 3rd or 4th home they put under contract.
You can rent the home out. For the last several years, it has been cheaper to buy a home than rent one in Jacksonville. This means that you can rent a home and cover most, if not all of your mortgage payment on the property. Check with your CPA too, because there can be additional tax savings as well. We do full time property management in our office, so we can provide that service too.
Any changes or improvements to the home can be done before you move in. If you decide to put in wood floors or travertine marble, maybe redo a bathroom or add a pool, this can be done before you move. You be able to save yourself the inconvenience of having the work done while you’re living there.

So where do you start? Usually clients have three or four places in mind that they might retire to. I recommend renting a furnished condo for a week and checking each place out. This way you’ll be able to check out the country clubs or other recreational activities that are available in the area, make sure shopping is convenient, make sure that medical care in the area is up to your standards, and what traffic is like. Find a Realtor who can help you answer these questions and show you available properties in your price range. Once you narrow down where you want to live; spend a month there.

How soon should you start? I’ve had clients that started a year ahead of retirement and others that have started 5 years out.

If you have further questions about retirement Real Estate in Florida, give me a call at: 904-535-0544

Lease With Option to Buy Homes in Florida

Tue, 16 Feb 2021 01:38:18 GMT

Lease With Option to Buy Homes

There are several reasons why “lease option to buy” might be a good fit for you.
1) You haven’t quite saved up enough money for a down payment yet
2) You recently have gone through a divorce, short sale or foreclosure and are trying to get back on your feet.
3)You are moving to the area and not sure exactly where you want to purchase a home

It’s a pretty easy process. You can apply online to see if you qualify. The determination is based on your credit score (it doesn’t have to be perfect), your household income (a minimum of $50,000) and a stable work history.

Once you complete the application and pay a $75 fee for a credit and background check, you should hear back within 24 hours. They will tell you how much of a rental payment you qualify for.

You can then go to their website and find the properties that are currently for sale and the amount of rent that would be charged if Home Partners of America were to purchase the home. Home Partners has determined which houses and neighborhoods that they would be willing to purchase. This means that not every house in the MLS will qualify for this program and only single family homes qualify in this program, which means no condos.

Once you find a property you are interested in, then look at the property and provide a move-in list of items such as interior painting, carpet replacement, etc. Then Home Partners makes an offer on the house. If they are the successful bidder, Home Partners purchases the house and you will be able to move-in within 3 to 4 weeks.

You sign a lease for a year with the option of purchasing the house at a determined price at the end of the one year lease. If you decide not to purchase or not to renew the lease there are no penalties. Each year the price of the house increases between 3.5% and 5% each year. Rent will also increase 3.75% a year.

As you can see, there aren’t any downsides to this program. If you haven’t watched the video , please do so now to hear from some actual participants in this program.

Want to know more? Send me an email or give me a call at 904-285-5640 .

Florida Real Estate Trends – What to Expect in 2016

Tue, 16 Feb 2021 01:35:14 GMT

Florida Real Estate Trends

As 2015 comes to an end, people considering purchasing a home in the Jacksonville Florida area please feel free to reach out to me at (904) 535-0544 to discuss the current Saint Augustine, Ponte Vedra and Jacksonville, Florida Real Estate market. In the meantime, I’d like to share some information regarding the upcoming Florida Real Estate trends for 2016 and what to expect.

Zillow “Zestimates” Home Values

Interest rates – the consensus of opinion is that interest rates are going up. Most people believe that the increases will be minimal in 2016. The fed raised the rate by .25% last week and it looks like they intend to maybe increase every other quarter.
Home prices – we are starting to see home prices go up, but gradually. Not the huge increases we saw before the market crash in 2007. Florida seems to be the state with the most consistent appreciation of around 3.5 to 5%. However, new construction activity is very high. Most builders in Nocatee (a master planned community in Ponte Vedra, Florida ) are increasing the price of a new home for every 3 to 4 homes the builder puts under contract.
Green and smarter homes – Buyers are looking for homes that have energy saving features. Newer Air conditioning and heating systems are more energy efficient and cost less money to operate. So if you are considering updating your home, investing in programmable thermostats and controls that can be adjusted on your smart phone are features buyers are looking for.
Cheaper to Buy than Rent – Rental properties are still in high demand and rental rates are continuing to increase. Therefore, purchasing a home and locking in the amount of your monthly mortgage payment is still a very smart financial decision.
Word of Mouth when finding your Realtor – 75% of buyers and sellers ask someone they know who recently purchased or sold a home for a recommendation of who to use. Google and Zillow reviews are very important to an agent. Social media also plays a big role in connecting Realtors to their past clients and these clients friends.
Home design trends – Quartz countertops are becoming increasingly more popular because of the variety of choices, low maintenance and antibacterial properties. Larger pantries are in due to bulk purchasing at stores like Costco & Sams. Dedicated home offices are increasing, instead of using the dining room table or a corner in the kitchen. And open floor plans where the kitchen and family rooms are the central focus of the house will continue.
The suburbs aren’t dead – The average age of a first time homebuyer is 33. This is due to delaying marriage and families. 2007 saw young adults graduating from college and not being able to get a job in the field they studied. As the job market has improved these same young adults are now finally leaving home or moving out of their first apartment. They are now finally creating new family units and will be looking at moving to the suburbs. The millennials; ages 21-34; are going to be the largest group of home buyers in 2016.

Zillow or Not to Zillow

Tue, 16 Feb 2021 01:31:43 GMT

What is Zillow ?

By now most people are familiar with Zillow, the popular real estate website and mobile application that has revolutionized the way the public searches for real estate listings. Zillow features “ Zestimates ” on what they think your home would sell for if it were on the market today, but is Zillow.com the best place to get your real estate information?

Zillow boasts more real estate listings than anyone else. Well there’s a reason for that! Zillow does not remove the Sold and Under contract listings out of their database. If you want to know what a Realtor’s nightmare of a day looks like; its getting emailed 10 listings by a buyer you’re working with who has been searching on Zillow over the weekend. Half of the listings aren’t even on the market, but it will take the Realtor about an hour of research to find this all out.

Well I saw this foreclosure on Zillow….

When a homeowner stops paying their mortgage the bank will file the initial paperwork to begin a foreclosure on the property. This process can take anywhere from 6 months to 4 years depending upon the circumstances. So yes the house is in foreclosure, but no it is not on the market for sale, or it has been foreclosed on but the bank hasn’t listed it with a Realtor yet.

But maybe we can go to the bank directly and buy it….

No you can’t. With all the shenanigans surrounding the financial crisis the banks have insisted that the bank take an “arms length” approach to selling and marketing these properties. They want to make sure in some cases that employees of the bank aren’t buying these properties up either. After the foreclosure has been issued by the court, it can sometime take up to 6 months before the house is listed with a Realtor and placed in the MLS.

Zillow “Zestimates” Home Values

Let’s talk about those “Zestimates” too. Zillow has an algorithm (that’s computer speak for a round about system of how something works without actually having to explain it). They take the sales prices of homes that surround a certain home and on a price per square foot basis come up with a value of the property. Sometimes they are spot on and sometimes they are way off. It works best in neighborhoods where the houses are of similar size and similar amenities. It is less accurate when homes vary in age, size and whether or not they have an incredible location, like oceanfront or navigable water. Again a Realtor’s nightmare is also having to explain to someone why their house is worth $50,000 to $100,000 less than the Zillow Zestimate.

Obviously Zillow is a great tool for someone getting started looking at Real Estate. They pull county records and can tell you what the home last sold for, where the schools are and give you an idea of what your house payment could be if you purchased the home. But just like everything else you need to then consult with an expert. Let’s face it you’re not going to treat your child for an illness based on information on the internet. Just like you shouldn’t try to buy a house based solely on the information found on Zillow.com. Your local Realtor is invaluable for fine tuning the information you have and dispelling any inaccuracies that you might find there.

Have questions about other real estate related topics? Give me a call at 904-834-9770 or shoot me an email.

Why Owning a Home Is Good For You

Tue, 16 Feb 2021 01:27:13 GMT

There are several financial reasons why buying and owning a home are good for you. Besides this last recession, most of the time a home increases in value over time. With each mortgage payment you make, the amount of the mortgage goes down and your “equity” in the home increases, all the while the value of the home is increasing, too. This means owning a home is like a forced savings account.

When it comes to paying income taxes, people who own their own home are allowed to deduct the amount of interest that they paid on their mortgage, along with the property taxes on that home. This means more money in your pocket and less goes to Uncle Sam.

Studies of people who own their own homes versus those who rent show a lot of other positive outcomes for homeowners. Take a look at the list below:

Homeowners tend to be more involved in community & national
They have a greater awareness of the political
They have a greater attachment to their neighbors and neighborhood
Children living in homes that are owned have higher test scores and higher graduation rates
Children living in homes have lower teenage delinquency rates
Homeowners report an increase in positive outlook on life
Homeowners also report higher self-esteem, happiness, and higher perceived control over their lives.
Homeowners are less likely to become crime victims
Housing prices are higher in neighborhoods with higher rates of homeownership
Homeowners make better employees by taking less time off work

Homeownership is the American Dream. It’s one the things that make this such a great country!

Income Tax Refund Could Be a Down Payment for a Home Purchase

Tue, 16 Feb 2021 01:25:56 GMT

You’re gathering all your income and expense information for your CPA or tax preparer: W-2s, 1099s, etc. You’re dreading spreading out all your receipts on the dining room table. Sound familiar?

Maybe you need a different perspective. If you’re getting a refund, that money could be used towards a down payment on a house purchase. Once you’ve met with your tax preparer and have the return done, you should call your mortgage professional and see if you qualify for a mortgage. Most people are afraid that they don’t have enough money saved up to buy a house. But, your tax refund could be just the money you need to make owning a house a reality.

Plus, there is a program available in Duval County for first time homebuyers (or people who haven’t owned a home in the last 3 years). This program offers $15,000 in down payment assistance. If you stay in the house for 5 years, then the $15,000 is forgiven. So, in essence it’s free money from the state of Florida.

If you have any questions, please give me a call at 904-834-9770 .

Eileen McVeigh Winner of the 2015 Circle of Honor Award

Tue, 16 Feb 2021 01:24:45 GMT

Eileen McVeigh won the Circle of Honor Award which is given to an Northeast Florida Association of Realtors (NEFAR) member for years of exceptional service and contributions to the community, state, and the real estate profession. Eileen has been an active NERAR member in good standing since 1993. Throughout her 22 years of service, she has participated on both the local and state level. She has served as either a board of director or committee member every year since 1998.

Eileen is not only generous with her time, but also her wallet. She contributes to Children’s Miracle Network on a corporate level, RPAC, and NEFAR’s Charitable Foundation. She also volunteers to help local families during the holiday season through “Adopt a Family” and is very active in her community, church, and local BNI chapter.

Does Spring Cleaning Have You Thinking About Selling Your Home?

Tue, 16 Feb 2021 01:23:35 GMT

As we approach the warmer Spring weather, a lot of people see signs going up in the neighborhood and wonder if it might be a good time to sell.

Since the real estate recession, we have seen a large increase in property values throughout Jacksonville. Depending upon when you purchased your home and how much your home is worth today, will help you decide if it’s the right time to sell. Sometimes sellers find out that they don’t have enough equity (the difference between what your home is worth and how much you owe on your mortgage) in their homes to sell. So what do you do when that happens?

I usually have two or three sellers a year that fall into that category. Since we do property management as well as home sales, we can give the sellers an idea of what they can expect to receive in rental income if we were to rent their current home. If we can offset the amount of the mortgage payment with rental income, some homeowners are willing to speak to a mortgage broker to see if they would qualify for the current home and purchasing a new home.

If this sounds like an idea you’d like to explore, give me a call at 904-834-9770 .

Walkability – Is that Really a Word?

Tue, 16 Feb 2021 01:03:47 GMT

Something buyers are looking for in the Marketplace are homes that are within walking distance to schools, neighborhood amenities, restaurants and shopping. So in response to this demand developers are designing neighborhoods with this in mind.

As a city, Jacksonville, FL gets a very low score on walkability. Being the largest land mass city in the country, EVERYTHING is very spread out. However, if you look at some recent developments you’ll see a trend. Take the community of Nocatee. There is a Town Center with new restaurants popping up, a huge Publix and of course the incredible Water Park.

The Jacksonville Beaches are also buying into this concept. There has been a huge increase in the number of restaurants and shops that have opened within walking distance of several neighborhoods. For example, the Town Center in Atlantic/Neptune Beach. There are also several condos east of Third Street in Jax Beach. On any given day you’ll see people walking, jogging and riding their bikes.

Sitting has been referred to as the new smoking because sitting can be as harmful to your health as smoking. People want to be more active and being able to take a walk to the store for some milk instead of jumping in the car is more appealing.

Want to learn more about neighborhoods with “Walkability”? Give us a call at 800-904-834-9770 .

5 Home Design Fads Fading Out in 2017

Tue, 16 Feb 2021 00:58:06 GMT

If you are thinking of remodeling the kitchen or prominent room in your house; you may want to take a look at these at these recent trends that designers are moving away from. Your home should always be a reflection of your lifestyle. But if you’re considering putting your home on the market in the next couple of years; you want to make sure that what you’ve chosen; is not going to make your home appear dated.

If you want to know what you can do to get the most bang for your buck, give me a call and I can help you make the smartest choices. 904-834-9770 .

http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=346545