Mo MONEY . . . MO Problems?

If you are wondering, "How much money can I borrow for my house purchase?" No money or need money or wondering what other monies you need . . .

 The answer is; it all depends. 

Depending on your target monthly payment or annual income and a few other factors that might not be on your radar, this affordability calculator will tell you the price of the home you can afford and the amount of money you can borrow.

Your affordability is calculated based on the percentage of your income spent on monthly debt. Most lenders limit how much of your monthly income can pay debt such as mortgage payments, car loans, and student debt (this is called Debt-to-Income ratio). The conventional limit is 36% of your monthly income, but this could be higher for FHA loans. Your remaining income after debt and taxes should be enough to cover living expenses and savings goals. It is also wise to have cash set aside to pay for any large unexpected repairs or financial emergencies.

If you are considering an FHA loan for 2014 in the S.Palm Beach Area beware that there are a changing.   Coming into 2014 changes will affect how much house you can purchase with an FHA loan . . . Come January they are reducing this max loan amount to $625,500 and they are reducing the max limits in most areas across the board.

PALM BEACH COUNRTY in 2013 Current Limits:  

            Single Family $423,750

            Duplex            $542,450

            Tri-Plex           $655,700

            Quad-Plex      $814,900

2014 Standard/High-Cost FHA Loan Limits

The ceiling (i.e. maximum loan limit) varies by county and if you’re shopping for an FHA loan, it’s crucial to make sure your desired home fits within these designated guidelines. Designated high-cost areas apply to approximately 70 metropolitan areas, including Los Angeles, California; New York City, New York; as well as the District of Columbia/Washington D.C. Below are the minimum to maximum loan limits in 2014:

Single Family Home   $271,050 to $625,500

Duplex                          $437,000 to $800,775

Tri-Plex                         $419,435 up to $967,950

Quad-Plex                    $521,250 up to $1202,925

Annual income

This is the combined annual income for you and your co-borrower. Include all income before taxes, including base salary, commissions, bonuses, overtime, tips, rental income, investment income, alimony, child support, etc.

Down payment

This is the amount of money you will put towards a down payment on the house. Make sure you still have cash left over after the down payment to cover unexpected repairs or financial emergencies.

Monthly debt

Include all of you and your co-borrower's monthly debts, including: minimum monthly required credit card payments, car payments, student loans, alimony/child support payments, any house payments (rent or mortgage) other than the new mortgage you are seeking, rental property maintenance, and other personal loans with periodic payments.

Do NOT include: credit card balances you pay off in full each month, existing house payments (rent or mortgage) that will become obsolete as a result of the new mortgage you are seeking, or the new mortgage you are seeking.

Interest rate

This is the interest rate for the loan you will receive over the term.

Debt-to-income (DTI)

Your DTI is expressed as a percentage and is your total "minimum" monthly debt divided by your gross monthly income. The conventional limit for DTI is 36% of your monthly income, but this could be as high as 41% for FHA loans. A DTI of 20% or below is considered excellent.

Income taxes

This is an annual tax that governments place on individuals' income. It includes federal tax. The national average is around 30% but can vary based on income, location, etc.

Property taxes

The mortgage payment calculator includes estimated property taxes. The value represents an annual tax on homeowners' property and the tax amount is based on the home's value.

Homeowners insurance

Commonly known as hazard insurance, most lenders require insurance to provide damage protection for your home and personal property from a variety of events, including fire, lightning, burglary, vandalism, storms, explosions, and more. All homeowner's insurance policies contain personal liability coverage, which protects against lawsuits involving injuries that occur on and off your property.

Mortgage insurance (PMI)

Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price. It protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Also known as PMI (Private Mortgage Insurance).

HOA dues

Typically, owners of condos or townhomes are required to pay homeowners association dues (known as HOA fees), to cover common amenities or services within the property such as garbage collection, landscaping, snow removal, pool maintenance, and hazard insurance.

Loan term

This is the length of time you choose to pay off your loan (e.g., 30 years, 20 years, 15 years, etc.)

All of these elements are important to consider when speaking with your Real Estate Agent/Realtor and Lender. I encourage you to generate a list and to really explore any questions honestly with your House Hunt Team!

And for your entertainment "Mo Money doesn't mean Mo Problems": http://www.youtube.com/watch?v=gUhRKVIjJtw

As always I am glad to talk real estate at: 

JillSellsFLHomes.com

Or email me at: info@jillsellsflhome.com

A Love Note about Boca Raton

In Spanish "Boca" means "mouth" and "Ratón" means "mouse" (not "rat" as is it is commonly mistranslated.) However, in nautical terms the word "Boca" refers to an inlet. The original name

"Boca de Ratones" appeared on eighteenth century maps associated with an inlet in the Biscayne Bay area of Miami. The beginning of the nineteenth century, the term was mistakenly moved north to its current location on most maps and applied to the inland waterway from the closed inlet north for 8.5 miles, which was called the "Boca Ratones Lagoon". The word "ratones" appears in old Spanish maritime dictionaries referring to "rugged rocks or stony ground on the bottom of some ports and coastal outlets, where the cables rub against".

The first settler was T. M. Rickards in 1895 who resided in a house made of driftwood on the east side of the East Coast Canal south of what is now the Palmetto Park Road bridge. He surveyed and sold land from the canal to beyond the railroad north of what is now Palmetto Park Road.

In the early 1900’s Boca Raton was a tiny agricultural community, many of the farmers specializing in pineapple cultivation. In May of 1925, the Town of Boca Raton was incorporated at the height of the Florida land boom. The town council commissioned noted society architect Addison Mizner to plan a world-class resort community. The exclusive hotel, was known as the Cloister Inn and was completed in 1926. It continues its reign as a city landmark as the Boca Raton Resort and Club. Although many of Mizner’s plans for the young community were stopped by the end of the land boom in 1926, a few of his architectural triumphs remain today but his style continues to influence the city and South Florida landscape. The 1969 addition of its "Pink Tower" hotel building is visible from miles away as a towering monument on the Intercoastal Waterway.  

Japanese farmers of the Yamato Colony  converted the land west of the city into Pinapple Plantations  beginning in 1904. The Japanese heritage of the Yamato Colony survives in the name of Yamato Road (NW 51st Street) just north of the airport and at the Morikami Museum and Japanese Garden just                                                                                     North West of the City in Delray Beach.

During WWII, much of their land was confiscated and used as the site of the Boca Raton Army Air Force Base, a major training facility for B-29  bomber crews and radar operators. Much of the airbas was later donated to Palm Beach County and later become the grounds of Florida Atlantic University and Boca Raton Airport, many of whose parking lots are former runways of the airbase; when viewed from above, the site's layout for its previous use as an

In 1991, the new downtown outdoor shopping and dining center, Mizner Park, was completed over the site of the old Boca Raton Mall. It has since become a cultural center for the southern Palm Beach County. Featuring a landscaped central park between the two main roads (collectively called Plaza Real) with stores only on the outside of the roads, Mizner Park resembles a Mediterranean suburban "town center" with a more contemporary look. It features many fine restaurants an outdoor amphitheater where concerts are frequently held and it is also home to the Boca Raton Museum of Art. Mizner Park has significantly aided downtown revitalization.

Boca Raton is the second most populous and southernmost city in Palm Beach County. It is located on the east coast of Florida between Delray Beach to the north and Deerfield Beach, of Broward County, to its south. Boca Raton is the core of the south Palm Beach Country metropolitan community, offering beautiful parks, beaches a unique quality of life that is coveted by many, I recommend that you visit and get to know Boca Raton! 

A few 60 Minutes to Home Improvement Recommendations

Below are a few helpful, quick and inexpensive tips to freshen up your home. Especially if you are starting to consider listing your home on the market in the near future. These tips make the difference buyers putting an offer on your home, and the one prospective buyers saw down the street! Many of these tips can be completed in 60 minutes . . . 60 minutes to SOLD!!   

Freshen Up an Old Room With Paint

Inexpensive and easy. Pick a fresh bold color then use it to paint just one wall in a room. Covering only one wall will cost less and won’t take as much time as painting the whole room.

Switch Out Your Faucet

Sick of your leaky faucet? If you can wield a wrench, you can easily install a new faucet. Before you start the job, turn off the water supply. Then just unscrew the connections from your old faucet and screw in your new faucet. Add an aerator, and you'll lower your water bill at the same time.

 

Clean Your Dryer Ducts

If your dryer doesn’t work as quickly as it used to, lint could be the culprit. Buildup not only affects efficiency, it also increases your risk of fire. To clean your ducts clean your ducts first you’ll need some muscle to move your dryer away from the wall. Then you just need a vacuum, I recommend investing in a shoppe vac. Unplug the dryer, disconnect the ductwork, and vacuum out the ducts as well as you can.

Inspect Your Electrical

Conduct an audit of your outlets. For childproofing purposes, insert outlet covers into unused wall and power strip outlets, and secure any loose wires. For general safety, look for overloaded circuits and power cords, and adjust as necessary. Frayed cords should be replaced as should any light switch that is hot to the touch.

 

Build Raised Flowerbeds

You can build an 8-foot-square garden bed in less than an hour, using eight 8-foot-long sections of pressure-treated lumber, screws, construction adhesive, and landscape adhesive. Using a saw and a drill, cut pieces to size and secure them together. Add landscape fabric to the base to prevent the growth of messy-looking weeds this can add instant charm and interest.

 

Scrub Your Pathways

Sidewalks, walkways, and driveways can become stained by wet leaves, rain, mildew, and automotive leaks. Get rid of these eyesores with a thorough power-washing. Makes a big impact. 

 

De-Grime Your House

With a pressure washer, there’s no need to crawl on the roof to clean your gutters—just aim and spray. A pressure washer can also clean grime off your gutters and your stucco walls as well. It can even be used to clean your second floor windows. Just be sure that all your windows are securely closed before you start.

 

Update Your Hardware

Once you select new door-knob or cabinet pulls, installation often requires nothing more than a screwdriver. To mount pulls on doors that never had them before, create a template to ensure that you drill your holes in the same spot each time. 

Install Weather-stripping

Weather-stripping will make your home more comfortable while ensuring that your AC and Heating Equipment won’t have to work so hard to cool and heat your home. Permanent weather-stripping, which has adhesive, is recommended around doors and windows that are opened throughout the season. For windows that will stay shut until fall, consider temporary weather seals or sealant that peels off when it’s no longer needed.

To err is human . . . but don’t err on having your future home Inspected

 Mistake No. 1: Not having new construction inspected

Even experienced homebuyers sometimes make this rookie mistake. They assume that because a home has passed all local codes and ordinances, it must be in good shape. Don't be so sure. I have seen and heard of brand new homes that had just passed the final municipal and county building inspections. But when a certified inspector explored the crawl space beneath the house, they discovered someone had removed about 3 feet of the home's main support beam to accommodate duct work.

Thus the house was already beginning to sink in that area. The moral of the story: Don't assume your builder -- or the contractors -- did everything right just because the home passed code. An inspector is your last line of defense against major defects that could quite literally sink your financial future no pun intended.

Mistake No. 2: Choosing an inspector for the wrong reasons

When you choose an inspector, you're selecting the professional who will give one of your biggest investments a full physical checkup, just like a physician gives you a physical. You want to choose someone you know who is competent, thorough and trustworthy. Unfortunately, too many buyers just go with the cheapest inspection company or the one recommended by their Realtor, do you homework, this is usually your biggest investment!

If you want a referral from your real estate agent, ask for two or three different names, and then interview each one to determine who you feel most comfortable with. Always ask about licensing, professional affiliations and credentials, and whether the inspector carries errors and omissions insurance.

Mistake No. 3: Not going along on the inspection

The written report you get from the inspector doesn't give you nearly as clear a picture of the condition of the house as you might think. It has been shown that buyers who don't go along on the inspection can overemphasize minor problems, or worse, not realize how serious a defect is. You really follow along with the inspector; ask lots questions and REALLY LISTEN when he gives you his professional opinion on the house, villa or condo.

Mistake No. 4: Not following up on the inspector's recommendations

Sometimes, buyers don't follow up on items discovered in the inspection before they close. Like the man who didn't grasp that the carbon monoxide coming from his water heater was a big problem, you may not realize how much it will cost to fix a given defect. Often inspectors will recommend buyers get an issue evaluated further, but the buyers wait to do it until after closing this could yield more expensive than anticipated results. You should always get several estimates on repairs before closing, and you should feel comfortable calling your inspector to discuss these estimates.

Mistake No. 5: Expecting your home inspector to be a Clairvoyant

No matter how experienced or skilled your home inspector is, he can't see the future; they don’t have a crystal ball. I urge you to be realistic and cautiously optimistic many homebuyers think a system still has a few good years just because there aren't visible signs of malfunction at the inspection.

A home inspector can tell you that an A/C system like the one in the home you're buying usually only lasts 10 years, and yours is 11 years old. But keep in mind he can't tell you exactly when it will fail. That's when you need to follow up with people who know more about each specific system, they have the knowledge and skills to answer your questions.

The home inspector is hired by you! The inspector is there to give you an honest straight 3^rd party objective opinion about the property. They're paid to inspect, not to sell. So they're in a better position to be neutral and to be your conscious about additional cost you could incur in the future as a homeowner.

Haunted Houses & Some Spooky Locales

Have you ever been in a house or place and gotten creeped out for what seems like no reason? A cold breeze without wind or just an eerie feeling you can't shake. Growing up in New England, Connecticut I am no stranger to a haunted houses. I remember my parents house hunting when I was 6 in a stately Victorian house from the early 1900s and my being so strung out, crying until we left it. Where shortly after Mr. Stamp my parents' Realtor disclosed the house was allegedly haunted. Clearly the experience was memorable many, many, many years later.  
But how can you determined if your house is haunted? 

Notable signs a place might be haunted: 



You hear heavy footsteps in the upstairs hallway when you know no one is up there. Doors slam without explanation. Commonly used items disappear and reappear without cause. Lights that turn on and off themselves with no reason. There's the unmistakable scent of a strange perfume in the air.  Unexplained shadows - the sighting of fleeting shapes and shadows, usually seen out of the corner of the eye. Strange animal behavior - a dog, cat or other pet behaves strangely. Dogs may bark at something unseen, cower without apparent reason or refuse to enter a room they normally do with no reservation. 

Other symptoms include: 

Feelings of being touched - the feeling of being watched is one thing, and actually feeling like you are being touched is quite another. Some people feel something brush past them, something touching their hair or "a hand" on the shoulder. Some feel a gentle poke, push or nudges.

Cries and whispers on occasion, muffled voices, whispering and crying can be heard. Sometimes it's music from some unknown source. People hear their names being said. This phenomenon, as is true for the one above, gains more credibility if more than one person hears or sees the same thing at the same time.

Cold or hot spots, cold spots are classic haunting symptoms, but any instance of a noticeable variance in temperature without a distinct cause could be evidence.

These may be indications that your house is haunted. True hauntings are rare occurrences, and it may be difficult to determine whether or not any strange phenomena you are experiencing in your home is a haunting or an explainable scientific occurrence.

What would Halloween be without a little local lure about some places you may frequent or pass by and say hmmm. I wonder if it's haunted?

Some Local Places Rumored to be haunted: 

Flagler Mansion on Palm Beach - There is said to be ghosts all throughout the many rooms of the Henry Flagler Museum and mansion. 

Palm Beach Island - Is often called the witches road, numerous reports of peoples electronics in there cars messing up while on this road 

The Blue Anchor in Delray Beach was named “Florida’s Most Haunted Pub” by the Travel Channel in 2004, the Blue Anchor’s history is rooted in England and dates back to 1864, in the days of Jack the Ripper. In 1996, the whole of the outside of the pub with its beautiful, dark oak doors and distinctive stained glass windows was moved to Atlantic Avenue in Delray Beach. Also making the trek across the ocean? The spirit of a young woman named Bertha Starkey who was stabbed to death at the bar over 100 years ago by her jealous husband. The eerie sounds of footsteps in the ceiling late at night or the sudden shattering of a half-inch thick reinforced glass shelf behind the bar on the anniversary of Bertha’s gruesome demise? Check out it for yourself if you dare.

Florida Atlantic University, Humanities Building in Boca Raton has a rumored ghost that has been spotted by employees on night shifts. She was seen at the top of the amphitheatre crying, when approached, she vanished. When locking building up at night, one person started on the third floor, checking & locking all the classroom doors. When he got to the second floor, he radioed in that there was someone on the third floor running through the halls slamming the doors. He and another unit went to the third floors from opposite ends and found all the doors locked, nothing out of place, and no one in the building. 

The Boca Raton Inlet - During cold nights warm spots felt though an area and 
sometimes appear during cloudy nights. A young lady was said to be buried in this Park. No body was ever found. Also an image of a person sometimes seen through out the park. the ! park being searched nobody would be there. 

Fort Lauderdale - Las Olas - Riverwalk - Oldest hotel in Ft. Lauderdale, supposedly been there since the early 1900(s) and was recently made in the last thirty years a Museum. Been known to be the most active around the hours of late, between 11:00pm and 3:00am. Countless spirits haunt the establishment, as most popular apparitions making appearances seem to be; a man seemingly in his mid-40's wearing a duster pacing the downstairs area. A younger man, whom is in no terms of the word 'shy' as he will in static motion creepily advance to the front door, press palm and face against the glass and scare the passerby if they're caught staring and a little girl with shoulder-length curly hair, wearing a ruffled dress around the ages of 5-7, looking sullenly out the window. Several more can be seen upstairs as well as looming in the hallways, nevertheless, their presence is very clear and realistic like. Some cold spots and overwhelming energies, though experiences vary with the person.

Happy Haunting & have a Happy Halloween,

*Warning
Any places listed requires permission to visit or investigate. Many of the places are patrolled by the authorities, trespassers will be prosecuted. 

7 Tips & Techniques to Survive Homeownership without going MAD as an Uncoordinated, Inexperienced Do It Yourselfer

Too bad at the closing table you weren’t handed an owner's manual or tickets to a week-long seminar where you learn what every button, switch, and wire is for. As a closet DIY’er, OCD person and owner of a 30+year old condo that I have renovated in South FL. I feel your pain as a new or first time homebuyer; please find a few tips & techniques that have come in handy for me.

How to pick up a paint spill on your wall to wall carpeting

Yes, this happens and for me it’s a true story. 

Cut two pieces of cardboard from a box. Use the edges of the cardboard to corral the pool of paint. Then use the pieces to form a scoop, and lift the liquid back into the bucket. When most of the liquid has been cleared, get two more buckets one with fresh water and one empty. Saturate the remaining spill with the clean water, then scrape and scoop it up with a fat spoon and put it in the empty bucket. Work fast and continuously, replenishing the clean water as necessary. Rent a carpet cleaner to follow up; just be sure to keep the paint spot wet until it gets there.

Pull Out a Nail without harming the Trim or the Wall

Use a block of wood as a fulcrum under the claw of your hammer. The additional height will give you more leverage and the hammer head will push against the block without damaging the trim.

Catalog your home for insurance purposes

From my own personal experience of being flooded several times. I want you to have the answers to questions like. . . What should make the master list?

Whatever's not nailed down, from furniture and rugs to furs (yes even in S.FL), dishes, jewelry and art. If you kept the receipt when you bought these items, great; jot down the value. If not, note where and when you got it.

Then photograph, or better yet, video every room, from every angle. Burn the information onto a couple of disks and send one copy for safekeeping to Aunt Becky on the other side of the country. A tip: Go to knowyourstuff.org for free software that lets you create a virtual replica of your home online and then tally the value of what's in it.

How to Locate a Stud, No not a hot guy to help you!

Say you want to hang a shelf. Knuckling the wallboard can pinpoint a stud. But to better the odds when your electronic stud finder's gone missing, use deductive reasoning. Most studs are placed at 16-inch intervals, so once you know where one is, you can usually find the rest.

Start at a corner, where there's always a stud. Or take the cover plate off an electrical outlet and find out on which side it's mounted to the stud. From there, measure 16, 32, 48 inches, and you should hit a stud at each go. Eliminate all guesswork by using a thin bit to drill a test hole at the top of the base molding, which you can easily repair with a dab of caulk.

How to reuse Paint Thinner

Clean brushes used to apply oil-based finishes in a wide-mouthed jar filled with paint thinner, then cover the jar and let the paint residue settle to the bottom. After a few days, carefully pour off the clarified solvent into another jar. Cap the jar and save it for the next cleaning. Let the residue in the first jar dry and harden (keep it away from any flames), then discard.


Ask questions of your new Besties at the Home Depot, Lowes or your local Hardware Store!!

Home improvement is their job and in some cases their passion, and they really know a lot of very important information. Make this your business . . . make it a regular stop and chat, when you are there for essentials on the way home from work or in the afternoon; avoid Saturday mornings when they are bustiest. Make friends in his or her down time, and that way you're guaranteed special attention when you need it.


And my personal FAVORITE . . . Know when you are in need of a Handyman

Be honest with yourself when a task is out of your realm. Ask for friends, colleagues or your Realtor to find out who does the maintenance around town. Be sure to check references, with former customers and find out whether your town or state requires a license. Also ask if he carries liability insurance—otherwise, be sure your homeowner's insurance will cover him.

Living Well at the Village by the Sea

Delray Beach certainly caters to an active lifestyle for all ages. Delray Beach is centrally located in the heart of Palm Beach County coast, it is an amazing “Village By The Sea”. It is a laid-back resort style town with an all-seasons residential core, although there are also a number of vacation properties frequented by snowbirds in the high season.  It is a historic center for artists’ colonies and vacationers; Delray Beach retains relics of a lavish past while new neighborhoods, flavorful restaurants, fantastic unique boutiques, and bars give it a modern flare.

History

This resort town has a long history and an authentic character of its own. Among newer developments are numerous examples of historic architecture in the style of design icons like Addison Mizner, and John Volk. Many of the homes dating back to the 1920s and ‘30s serve as exemplary examples of the Mediterranean Revival, Beachside Cottages, and Art Moderne design.

Weather
Peak season is from mid-November to March or so, which means that the rest or the year, although the weather is still gorgeous (although rather hot and humid for some), you can get some incredible travel deals. There are a number of resorts in the vicinity, the kinds of places where you can just rent a cabana and while away the hours by the beach, never bothering to leave the premises. But, should you choose to venture out, a number of intriguing options await you.

Things to do:
Take a boat cruise along the Intracoastal Waterway and gawk at all the palatial estates - some of them are only lived in for a week or so per year. Stroll along Atlantic Avenue, where you’ll find a number of shops and small galleries, bars and dining options sure to please any pallet. Increasingly, Delray Beach is turning into a foodies delight town, with spots like Area 34 East, J&J Seafood and Tramonti (A personal favorite) on Atlantic Avenue.

The Morikami Museum & Japanese Gardens, the landscape of which showcases the evolution of the Japanese garden from the 8th to the 20th century -- as you walk the winding paths around its central lake, you can witness the changes in landscaping trends over the years.

Delray Beach is home to a number of artists, has a vibrant cultural scene with a considerable history. And the art scene is not limited to seaside-inspired watercolors either. The Arcade Building on Atlantic Avenue was constructed in 1925, and by the 1930s and well into the ‘40s and beyond, The Arcade and Tap Room there became a gathering place for cartoonists from all over the U.S. Around them, writers and socialites converged for stimulating conversation, sometimes joined by Delray Beach's growing ranks of polo players, golfers and political figures. Winston Churchill and Edna St. Vincent Millay were among its patrons. The building still exists on Atlantic Avenue.

There is a bike path along the A-1A, the highway that hugs the Intracoastal Waterway and looks out on the Atlantic. The beach is lined by sea grapes, and sand dunes together in case of storm. However, outdoor activity options don't end at the beach: Delray Beach features 12 city parks in addition to marinas, bike and walking trails and a skateboard park. The International Tennis Championships (ITC) is an ATP World Tour 250 Series men's tennis tournament, and yes you guessed it. It is held here each year. Played on hard courts Delray Beach has also been awarded the title of being home to major tennis events. 

In 2012 Rand McNally and USA Today set out to begin their second Annual quest for the BEST Small Towns in American. In July of 2012, their search came to a halt in Delray Beach . . . And we were awarded Most Fun Small Town in America.   

If you’re inclined to wear a T-shirt and flip flops all year round, enjoy fine living and fun in the sun then Delray Beach is the place for you!

How to Prevent Home Buyers Remorse

It happens now and again to just about everyone at some point . . . You buy something you REALLY, REALLY, REALLY want but then 24 to 48 hours or so you begin to doubt your choice just a smidgen . . . and then worry seeps in, I think I made a mistake. . . . And then situational worst case scenarios start to play out for you, hypothetically!

Below are some of my tips on how to avoid this as a first time home-buyer or a seasoned home purchaser.

1. What is the home’s proximity to YOUR important places?

The three most important considerations when buying real estate are location, location and location. After all, you can change much about how a home functions and looks after you purchase it . . . but you can’t change the location of the lot on which it is built.

But there’s more to it.

Proximity is where the place is in relation to what you do every day. Consider where you have to go to take the kids to school, where you go to work, how close it is to major roads and arteries. What will your transportation costs be?  Where you go to get groceries? What do you want your lifestyle to be in your free time?

A well-placed home will buy you more free time, which can be very valuable to a busy professional or a family with a hectic schedule.

2. Beware of hidden costs?

Maybe your list of must-haves includes a large yard for the kids to play in. But before buying all that land, you need to consider whether it’s worth the expense of keeping it up. What will you upkeep costs be? After all, many kids today spend large chunks of their days engaged in activities away from home.

Please consider how you want to engage with your outdoor space before committing to a rent or mortgage. If all you want is a pretty scene through a window, maybe a unit in a condominium makes more sense for you.

Additionally what are the heating and cooling costs of the space before buying it? Ask for a ½ a year’s worth of utility bills from the seller. In South Florida consider the costs for July, August and September traditionally the hottest time of the year.

3. Ask yourself: Is it what you really want?

Or is it what someone is telling you that you want? It’s easy to go with the flow and do what you think most people do: rent after college, then buy a starter house, then a move-up house, then a retirement home. Instead, you need to focus on what’s meeting your needs. What do you want and be really honest with yourself!

4. Ask yourself: Is this what you really NEED?

Take a reality check. Will it be enough space for your family a few years down the line, or will you have to move if your family grows?

Can you afford this home now and in the future? Don’t stretch, figuring you’ll have a bigger income down the line. Make a selection that is good for you today fiscally, it can become really easy to push your limits especially if you can become qualified for a bigger mortgage than you anticipated.

5. Have you mastered Juggling?

Buying a home is a juggling act among function, price and enjoyment.

Make sure you are focused on a home that is sustainable. If you can’t easily live in it, or can’t afford the payments, or if you simply don’t like living there, it’s just not for you something better more well suited will come along.

And don’t rule renting out, either.

Since the housing bubble’s burst, in the new rules of real estate, I think that home-ownership is not a given for all. We are redefining what the American dream is and it does not always include owning a big house in the suburbs. Be true to yourself during your search for home!  

How Interest Rates Can Effect You and Your Payment When Buying a Home

The Standard Explaination . . .

Basis points are a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. In most cases, it refers to changes in interest rates and Bond yields.

For example, if the FED, the federal Reserve Board raises interest rates by 25 basis points, it means that rates have risen by 0.25% percentage points. If rates were at 2.50%, and the Fed raised them by 0.25%, or 25 basis points, the new interest rate would be 2.75%.

In the bond market, a basis point is used to refer to the yield that a bond pays to the investor. For example, if a bond yield moves from 7.45% to 7.65%, it is said to have risen 20 basis points.

The usage of the basis point measure is primarily used in respect to yields and interest rates, but it may also be used to refer to the percentage change in the value of an asset such as a stock. It may be heard that a stock index moved up 134 basis points in the day's trading. This represents a 1.34% increase in the value of the index.

The easiest way to convert basis points into a percent form is by taking the amount of basis points and multiply by 0.0001 which will give the percent in decimal form. So if you have to convert 384 basis points into a percent, simply multiply 384 by 0.0001. This will give you 0.0384 which is 3.84% (0.0384 x 100).

Why you need to care?
 

If you are reading this and wondering how does this actually effect my affordability when buying a home, you are on the right track as to where I am going with this information.

The difference between 4½ and 6¼ can mean a big change to your affordability.

For example a single family home, where the borrowers have good credit ranging from (700-750), in Delray Beach FL for 250,000.00 with a conventional mortgage with 20% down ($50,000.00).

Your monthly payment for 30 years for an interest rate of 4.50 % on a loan amount of $200,000.00 would be $ 1013.37 a month

The same loan with an interest rate of 6.25 % on a loan amount of $200,000.00 would be  
$1231.43 a month.

That’s a difference of $218.06 each month 2,616.72 a year! Could you use $2600.00+ or so extra each year? I know I could.

Next time you hear interest rates may rise, and you are in the swing of a home purchase please consider this information, it really does affect your home buying affordability.

So You Want A Great Deal . . .Tips For Buying A Forclosure

I love a deal. Don’t you? According to Realty Trac, that released a report that shows foreclosure filings are down this year. Realty Trac touts foreclosure filings are down nationally by over 23 percent when compared to the same time last year. And as home prices continue to increase, many real estate experts say that the number of foreclosures will drop even more. However there are still opportunities out there.

As a home owner that has previously purchased a foreclosure in South Palm Beach County I want to take some time and talk about a few tips that helped me get the deal and hopefully will help you.

Do your RESEARCH on the market and the area you want to live in! Find out the dish — in troubled times, no more than the past three months — selling prices on neighboring homes. Comps or Comparables which show what the comparable homes in the neighborhood are selling for are imperative to help you gain perspective. To be realistic, the comp prices should factor in all auction-purchases and short-sale homes in addition to standard multiple listing service sales.

Open Houses . . . Don't miss those open houses; they typically run from one to three days. Try to come to auction in love with 5 properties instead of just one. Bring detailed information and photos of each house you're interested in to avoid confusing homes and or properties and to help you get the house you want.

Timing is Key . . . When several bidders are jockeying for a property, wait until the bids start to die down before making yours.

Think about what you are wearing . . . I know it sounds silly but, often some buyers will dress like bankers and arrive early to position themselves near the auctioneer. That's so other bidders will assume they're representing the lender and possibly shrink back from a bidding war. It’s not a bad strategy.

Big in your Contractor in toe, they know costs. And this will keep you from overlooking hard-to-spot damage and flaws like mold often a four letter word in Real Estate. Contractors are able to give you a more accurate picture of what you're buying. Pay special attention to plumbing and mechanical systems as they can be expensive and challenging to repair.

I bought a foreclosure because, I walked in and just fell in love with it . . .But I am the first to warn that it’s not for everyone. My purchase accompanied a lot of hard work, sweat, additional monies and professional help in order to get my purchase to feel like my home.

When I should start searching for a Realtor?”

I recently was posed this question by an international buyer looking to buy her first home: 

“I'm in the early stages of planning to purchase my first home within the next 12 months, and I'm not sure when I should start searching for a Realtor?”

That's a great question. If you'd like to build a relationship with an agent, I would suggest you talk to some now. You can set up a time to meet with them to discuss your needs and get a feeling on how they work. I've been interviewed by buyers many times. 

Ask questions about the process, market areas, what services they provide. You are making the biggest purchase of your life and you should feel comfortable with who you choose to work alongside.

There are great resources like REALTOR.com's® which is an extensive listing of community professionals and properties. Other sources include open houses, local advertising, Web sites, referrals from other REALTORS®, recommendations from neighbors, friends and suggestions from lenders, attorneys, financial planners and CPAs. The experiences and recommendations of past clients can be invaluable to your search.

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What should you expect when you work with a REALTOR®? 

Once you select a REALTOR® you will want to establish a proper business relationship. You likely know that some REALTORS® represent sellers while others represent buyers. Each REALTOR® will explain the options available, describe how he or she typically works with individuals and provide you with complete agency disclosures (the ins and outs of your relationship with the agent) as required in your state.

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Once hired for the job, they will provide you with information detailing current market conditions, financing options, pre-approval steps and negotiating issues that might apply to a given situation.

Remember: Because market conditions can change and the strategies that apply in one negotiation may be inappropriate in another, this information should not be set in stone. During your time in the marketplace it’s their job to keep you updated and alert you to each step in the transaction process.

If you’re looking in the South Palm Beach Area in Florida, I’m always happy to help, please don’t hesitate to ask and or submit questions to me.  

www.jillsellsflhomes.com

Delray Beach to hold Education Town Hall meeting

Any family with school aged kids in the Delray Beach area should check this out! On October 17, 2013 at 7pm the City of Delray Beach is hosting a Town Hall meeting for residents to get their questions answered about the education in the city. The meeting will be held in the auditorium of Atlantic High School, 2455 W. Atlantic Ave.

(To check out, how your local schools stack up click on the bus picture) 

As reported by Jason Schultz of the Palm Beach Post, Mayor Cary Glickstein said “City officials didn’t call the meeting in response to any particular concern or complaint expressed by residents over education, but rather as a general effort for the city to become more proactive in making its overall vision for the education provided at schools in the city a reality. “He continued “Washington and Tallahassee aren’t going to solve our problems and the school board has limited resources. We need to be more proactive in moving things down the road.”

The Goal is to outline four or five key goals the city of Delray Beach would like to see from the Palm Beach County school district and ways the city and school district can partner as a team to make those goals a reality.

One of the previously discussed priorities is getting a future arts-themed middle school magnet program that the school district is considering building somewhere in southern Palm Beach County, perhaps at the former Plumosa Elementary School campus in Delray Beach.

A serious sign that today’s housing recovery is in need of antipsychotics . . . not your quintessential rebound

Trulia; Where has your “Housing Barometer” gone?

According to the site, it’s metrics that the index uses to gauge the market recovery, that might normally provide a telling snapshot of its health,  however truth be told they no longer parallel  in producing an easily viewable picture.                                                                                                

The site uses three metrics that the gauge uses to compute:

1            Construction starts

2               Existing-home sales

3            Delinquency and foreclosure rate

However lately these findings show a seemingly schizophrenic symptoms that confound the index’s and is inhibiting its ability to diagnose the market’s health accurately.

So you are asking why I asked where our the drugs to counter act this illness? Why is it that today’s market, were it a human patient, and might be prescribed antipsychotics?

What’s throwing the digits?

Improvements in existing-home sales and delinquency and foreclosure rates have far outpaced improvement in construction. The good news: Exsiting-home sales are 99% back to normal and the not so good news, construction is just 40% back to normal. So as a byproduct using a single number to gauge the recovery is not the best approach, at least for right now.   

So as for Trulia reasons they disclosed  for the discrepancies include:  Sluggish construction growth is that household formation, which fuels demand, is only at half its normal rate. Trulia’s final and most recent Housing Barometer found that the housing market was 67 percent back to normal in August 2013, its healthiest state since the “Great” Recession as it has been dubbed.

Trulia’s barometer is based on the following data:

• Construction starts increased to 891,000 in August, up 1 percent from July but still only 40 percent back to normal.

• Existing-home sales hit 5.48 million in August, their highest level in 6 1/2 years and 99 percent back to normal.

• The delinquency and foreclosure rate dropped to 8.86 percent, its lowest level in more than five years and 60 percent back to “normal”.

Just a little something to think about as you peruse homes online.