Thinking of going For SALE BY OWNER . . . Things to consider

Homes Continue to Sell Quickly Nationwide

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The National Association of Realtors (NAR) recently released their latest Existing Home Sales Report, which revealed that homes were on the market for an average of 47 days in March. This is a decrease from the 59 days reported in February, as well as the 52 days reported back in March 2015.

42% of homes across the country were on the market for less than a month, which is the highest it’s been since July 2015 (43%)!

Among the states with homes selling in 30 days or less are Washington, Oregon, and Minnesota. The map below was created using results from NAR’s Monthly Realtor Confidence Survey.

Bottom Line

Buyer demand is increasing as the inventory of homes available for sale remains low. If you are thinking about listing your home for sale this year, let's meet up so I can help you take advantage of current market conditions!

The Real Estate Market needs your listing . . . Here's why

The housing market is really heating up and buyer demand is dramatically increasing as we enter the spring season. However, one challenge to the current market is a major shortage of inventory. Below are a few comments made in the last month by industry experts.

Lawrence Yun, Chief Economist of NAR

“Looking ahead, the key for sustained momentum and more sales than last spring is a continuous stream of new listings quickly replacing what's being scooped up by a growing pool of buyers. Without adequate supply, sales will likely plateau."

Jonathan Smoke, Chief Economist of Realtor.com

"Low inventories and tight credit will limit the gains we will see in 2016. However, given the level of pent-up demand evident in web activity and stated buyer intentions for 2016, we should see this spring materialize as the busiest season of sales since 2006."

Rick Sharga, Ten-X's EVP

“Inventory is too low to support much higher sales. There's virtually no inventory available at the entry level, and single family housing starts and permits continue to languish at levels far below where they should be at this point of the recovery.”

David Crowe, Chief Economist of the National Assoc. of Home Builders

“Many sellers may not have an absolute decision as to whether to buy an existing home or a new home. So the low inventory of existing homes is locking them in place.”

Freddie Mac

“Challenges remain, with low housing supply and declining affordability being a key concern in many markets.”

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.

Snow Birds and International Buyers

Are you and International home buyer, considering an investment in 
South Florida Real Estate?

Below is a brief list of elements to consider:

1. Consider the Cost of Hurricane Shutters When Buying a Home in Florida
Hurricane Shutters are not a small investment. Most small homes are looking at a spending a minimum of $3,500 to protect their homes. If you are interested in buying a larger home and they have installed quality hurricane protection you should keep in mind how much money the sellers invested when negotiating a price.

2. Sprinkler Systems
I am sure you are aware that it can get very hot in Florida. Homes need built in sprinkler systems to maintain the beauty of the landscaping. However, there are many homes that do not have sprinkler systems and there are those that do not have functioning sprinkler systems. The cost of adding or repairing a sprinkler system is considerable.

3. Maintenance Fees
Maintenance fees can be quite high depending on where you buy. You will also have taxes and homeowners insurance costs to consider and sometimes the maintenance fees will put home buyers over their yearly budget.

5. Neighborhoods
A knowledgeable South Florida Realtor will know which neighborhoods are best suited to your needs.

6. Homeowners Insurance Deductions
Talk to your Realtor about which aspects of a home will give you a deduction on your homeowners insurance because they could save you a lot of money in the long run.

7. Owning a Home with a Pool and/or Jacuzzi
The Florida Department of Health reports, "Deaths from drowning for children less than age five in Florida are more than double the national average and are higher than any other state in the nation. More than two-thirds of these deaths occurred in swimming pools."Most people dream of having a home in Florida with a pool and it is a great dream, but everyone needs to consider pool safety. Again, ask your Realtor what you should be looking for and/or avoiding.

There are many more tips and laws that are important to International buyers. It is important for International home buyers to choose a Realtor that they can effectively communicate with who knows the Florida real estate market well and can help you choose the perfect home that meets the needs of your lifestyle.

First Time Home Buyer Steps

Are you a first-time Home Buyer in the South Florida Real Estate market (Boca Raton or Delray Beach) Here are steps to take to help you decide whether you're ready to take the plunge.

1.) Do some reconnaissance . . . of comparable homes' selling prices in your area. Do a quick search of actual multiple listing service, or MLS, listings in your area on a number of websites, including the National Association of Realtors.

2.) Get an idea of what you can afford, by using a mortgage calculator to figure out if you made a purchase today what your cost would be.  

3.) Don't forget to factor in taxes and homeowners insurance. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment.

4.) To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you do buy. For an idea of what you'll pay in taxes, check your local property appraisers website. Just remember that exemptions and the intricacies of local tax law can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.

5.) Learn about your closing costs, the upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items like homeowners insurance or homeowners' association fees. 

6.) Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing costs. Go much past 30 percent and you risk becoming house poor.

7.) Find a reputable Realtor in your area and sit down for a consultation about the real estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon? 

8.) Think of your future plans, long range. While a buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, mentally and financially prepare yourself for the new responsibilities that accompany homeownership.  

Tips to prepare for your house hunt: 

A.) Examine your credit 

Right now, blemished credit or the inability to make substantial down payment can put the kibosh on your homeownership plans. That's why it pays to look at your creditworthiness early in the home-buying process.

B.) Organize all your documents

Collect pay stubs, bank account statements, W-2s, tax returns for the last two years, statements from current loans and credit lines, and names and addresses of your landlords for the past two years. Have them ready to show to the lender. This may seem like a lot, but in this age of tight credit, don't be surprised if your lender needs a lot in the way of documentation.

C.) Find a Lender and get Pre-Approved-- Getting pre-approved for a mortgage helps you bargain from a position of strength when you are house hunting.

D.) If at first you don't succeed - keep trying . . .

If you can't find a bank willing to lend to you -- and in the current tight credit market, it's possible you won't -- consider getting an FHA loan. The Federal Housing Administration has a program that insures the mortgages of many first-time homebuyers. As a result of this guarantee, lenders who might otherwise feel queasy about your qualifications will be more inclined to lend to you. As a bonus, the FHA only requires a 3 percent to 3.5 percent down payment from first-time homebuyers.