Central Florida Real Estate Podcast with The Rodriguez Team

A detailed look at the different types of homeowners insurance. Today we're talking about homeowners insurance. Even though I'm not an insurance agent, this question seems to come up a lot: “What do I need to know about homeowners insurance?” The standard homeowners policy is divided into two sections: property coverages and liability coverages. Let's start by taking a closer look at the types of property coverage: Coverage A - Dwelling: provides protection for your home and the structures attached to your home. Coverage B - Other structures: covers the structures other than your home located on your property such as a detached garage or shed. Coverage C - Personal property: covers the contents of your home such as furniture, appliances, clothing, and toys. Coverage D - Loss of use: provides coverage for your additional living expenses when you have lost use of your home. For example, if you have to vacate your home due to damage from a covered loss such as fire or tornado, this coverage will pay for the additional cost of a hotel or other temporary living expenses until the damage to your home can be repaired. One important note about homeowners insurance is that not all causes of loss are covered. Since not everyone's home is within a flood zone, you might be able to purchase a separate policy to provide coverage. Your insurance agent can help with that. Now let's take a look at section two of the homeowners policy: liability coverage. Section 2 includes 2 coverages: personal liability and medical payments to others. “The most important thing to remember is your policy should protect YOUR needs.” Personal liability provides coverage when you are legally liable for bodily injury or property damage to others. It also covers injury or damages to others caused by any relatives living with you. Let's say you're having a cookout and one of your guests accidentally gets injured on your property because of a broken step at your door. Your guest can decide to sue you for the injuries received because of your negligence. That's when your homeowners policy's liability coverage will come into play. It defends you against lawsuits and helps pay for expenses associated with those lawsuits. The second liability coverage provided in your homeowners policy is medical payments. This helps cover medical bills incurred by invited people who are injured on your property as a result of your personal activities. Remember your injured cookout guest? Medical payments coverage will help cover the cast and stitches they may receive due to their injuries. Insurance and all of the details around it can be confusing. This video is just a short overview of the primary coverages provided by a standard homeowners insurance policy. Just like every home is different, so is every insurance policy. The most important thing to remember is your policy should protect YOUR needs. To ask questions and learn more about what coverages you need, contact your local insurance agent right away. As always, if you have any real estate questions or are thinking of selling, buying, or investing, give us a call or send us an email today. We look forward to hearing from you.

We're sharing four ways to buy a second home when you already own one. Can you buy a house while you already own one? The quick answer is yes. However, the qualifications are different depending on whether you're buying a second house for your personal enjoyment or as an investment property; banks look at the two scenarios differently. Here are four ways to buy a second house: 1. Buy another home and sell your current one. If you intend to buy one house and sell another, you first need to call your real estate agent. They'll show you what your house could potentially sell for and help you prepare for the process. Next, call your lender, tell them you intend to sell, that you've spoken with an agent, and that you want to get pre-approved with the condition that your current home sells. 2. Do a cash-out refinance. If you have untapped equity in your home, you can refinance your property for a higher amount and take the difference in cash. You can use the cash as a down payment for the next property, or if you have enough equity, you can buy the house outright with cash. Borrowers with good enough credit can borrow up to 80% of their home's value. “Before you get started on any of this, make sure to contact your accountant or financial planner.” 3. Use a home equity line of credit (HELOC). This option keeps your present mortgage in place and taps into your equity with a secondary loan and different terms. You can use the HELOC as a down payment for your second home, or if you have enough equity, you can buy it with cash. A HELOC has a floating rate, which is attached to the prime rate, so you can potentially get a lower rate than your primary loan. You may also be able to tap into 100% of your available equity. 4. Use a conventional loan. This is the most straightforward method of buying a second property. If you're buying a secondary or vacation home, you'll need about 10% to 20% down; if you're buying an investment property, you'll need 15% to 20%. Banks will expect you to have assets in reserve to cover expenses. If you're a W-2 employee, they'll likely want to see two months of expenses in reserves. If you're an independent contractor or self-employed, they'll probably want to see at least six months of assets in reserves. Before you get started on any of this, make sure to contact your accountant or financial planner to see which option works best for you. If you already own a home, you can buy another house to move into, a vacation home, or an investment property. You just have to go about it the right way. If you have any questions or need real estate help, give us a call or send an email. We would love to help you.

We're so excited to be offering this great program from KW. Are you hoping to get top dollar for your home sale but don't have the money to fix it up, don't know any contractors, and don't know where to start? We have a solution for you! This program is a complete game-changer and is going to be able to help a lot of people. Without further ado, I'm excited to announce that our team is officially certified for Keller Williams' Ready to Sell program which allows you to repair or renovate your home before putting it on the market with $0 out of pocket. The Ready to Sell program gives you 2 different options: 1. Apply for 0% financing for the cost of the renovation through one of our preferred partners. Once the property sells, you'll be able to pay that back with $0 upfront. 2. Access the equity you already have in your home. If you have enough equity, we'll be able to leverage it for the cost of the renovation and pay the contractor back once your home sells with $0 upfront. The key phrase to note here is “$0 upfront.” “We manage the entire construction process with our own contractors.” This money can be used for small projects such as paint, pressure washing, landscaping, and flooring, or it can be used for bigger projects like full kitchen and bathroom renovations. The goal is to figure out the minimum money we need to spend in order to get the maximum return on your investment. The great thing is that there's no cost, no pressure, and absolutely no obligation to move forward with the project once we present our estimates for the repairs. If you do decide to move forward, the whole construction process is taken off your hands and we manage the entire project with our own contractors and trades. Once again this program is hassle-free and requires $0 upfront. When your home is ready, we market it aggressively, negotiate all offers, and ultimately sell your house with the best terms and most money possible. If you have any questions about the program, the market, or otherwise, make sure you give us a call at (407) 519-0627 or send us an email. We look forward to hearing from you soon.

Today I'm sharing a quick walk-through of the typical foreclosure process in Florida. Today I want to talk about the foreclosure process: what it is, how long it takes, and important things to know. First of all, every foreclosure timeline can be different. Today's information is meant to be general and will be a good, average timeline here in Florida when it comes to foreclosure. The first thing that happens is that you'll get behind on your mortgage payments. People ask all the time, “If I get a month behind on my house payment, are they going to foreclose?” The answer to that question is generally no, but of course, there are exceptions. If you have tons and tons of equity in your house and the mortgage company thinks they can foreclose and get all their money back, they will do it sooner rather than later. If you're upside down on your mortgage, meaning you owe more on your home than what it's worth, then you might be able to get further past due on your house before they ever look to foreclose on it. I've heard stories of people being over two years past due on their house before foreclosure ever took place, and I've also heard the horror stories of somebody being only 30 to 60 days past due, so it all depends. “You have 20 days to respond after receiving your letter of foreclosure.” Next, the mortgage company will file the foreclosure lawsuit, and you'll be notified of a foreclosure hearing date. That foreclosure hearing date will take place in front of a magistrate or lay judge, in the county you're located in, about 30 days after you receive the letter. You have 20 days to respond and either admit or deny the allegations. You're not required to attend the hearing, but you can sometimes go in and explain your situation, let them know you're working on a modification of the mortgage, and that you're trying to sell the property. At times, the magistrate may be willing to give you an extension or a second hearing date. This doesn't happen all the time though. At the second hearing, they're not going to give you another continuance. After the hearing, if the mortgage company believes they can foreclose and the Final Judgement of Foreclosure is approved, they will enter a Foreclosure Sale date within 35 to 120 days. On the date of the sale, interested buyers can bid on the property at the county courthouse, and the highest bidder becomes the new owner. In the state of Florida, there's a statutory right of redemption which gives the previous borrower 10 days to buy back the property before the certificate of title is filed. After those 10 days, that ship has sailed, and there's nothing you can do to get your house back. This would be your final chance to file for bankruptcy if you choose to do so. The time from your initial letter of foreclosure to your actual foreclosure sale date is typically about eight to 14 months. I am not a foreclosure attorney, but I can get you connected if you need one or just have any questions. If you're faced with foreclosure and want to know your options, give us a call or send us an email today. We would love to hear from you.

Here's what you should know before selling your home off-market. If you're thinking of selling your home and mention this fact to a neighbor, coworker, friend, family member, etc, there's a good chance one of them knows someone looking to buy a home who's having a bad time with current market conditions. The question for you then becomes: Should I sell my home off-market? The most honest answer I can give you is that it depends. There's no ‘yes' or ‘no' answer to that question because it depends on your situation and goals. That said, there are two costs to keep in mind when selling your home. The first is the agent's commission. This is usually the biggest cost of selling a home, and if you sell off-market, you don't have to pay it, which can lead to huge savings. However, since the buyer is buying directly from you, they're probably expecting to pay less for your home, so the monetary difference could end up being a wash—and you're still stuck handling the transaction and doing all of the work. “You could be leaving thousands of dollars on the table by not testing the free market.” The second cost comes in the form of not allowing the market to dictate the price. Even if you look at all of your neighbors' comparable sales, there's no way to test what buyers are willing to pay for a home in this market without putting that home on the market. Right now we're seeing buyers paying well over asking price for homes with little to no contingencies in their offers. One of the biggest benefits of the free market is being able to determine the most someone is willing to pay for your property. You could be leaving thousands of dollars on the table by not testing the free market. As a potential off-market seller, I recommend talking to an unbiased agent so they can provide specific information about your market and offer some insight as to what your home might sell for on the open market. They'll also explain your options if you'd still rather sell off-market. Ultimately, you want to reach out to someone who'll make sure you're doing what's in your best interest and will help you accomplish your real estate goals. As always, if you have questions about this or any real estate topic, don't hesitate to reach out to us. We're happy to help.

Here are your three options when you want to buy and sell a home. How do you sell your home and buy a home at the same time? Here are the three ways to go about this and some strategies for each method: 1.  Buy first. You can buy your house first and then sell. By buying first, you get to enjoy the search without the pressure of having to sell your house. You also won’t need interim housing, and you can prepare your current home for sale as you move out and transition into the next one. One of the risks that you do face is potentially having to pay multiple mortgages and not having the equity of the first house to put down on the next house. We will give you an estimate, but we won’t know exactly how much until the home sells. “Buying and selling at the same time is certainly doable.” 2. Sell first. You can also sell first and then buy. If you choose to sell first, the good thing is that you know exactly how much equity you’ll be able to put down for your down payment. You won’t have two mortgages to worry about either. On the flip side, you may have to plan for interim housing. 3. Concurrent sale. A simultaneous closing of both properties. Buying and selling at the same time is certainly doable. We’ve had the opportunity to help a number of clients with this in the past, and it just takes good planning, communication, and some clever negotiating. We’ve created a system to help streamline the process and are happy to share that with you.  Before you attempt any of these options, there are some things you need to do first. The most important thing is to review your finances and get pre-approved by a lender. You’ll know exactly how much you can afford and whether or not you have to sell your current home in order to buy the next property. This comes up with a lot of our clients who are either upsizing or downsizing locally, as well as clients who are moving from outside of the state. If you have any real estate questions we can answer or know of anyone who’s making a move or thinking about investing in real estate that might need our help, give us a call at (407) 519-0627.

Here are five mistakes you must avoid as a first-time homebuyer. As a first-time homebuyer, here are five mistakes you must avoid during the purchase process to ensure your transaction runs as smoothly as possible: 1. Not properly preparing your home insurance. Your lender will require you to get an adequate home insurance policy before closing on your loan. If you forget to secure one or your policy start date doesn’t align with your closing date, your transaction could get off schedule. In many cases, the home just isn’t insurable. This might happen if the previous owner made an insurance claim for some sort of high-risk condition, like mold or severe water damage. It also might happen if they have an open claim that hasn’t been closed yet. The best thing to do is stay ahead of these mishaps and look for home insurance as soon as you go under contract. 2. Not preparing for a low appraisal. Not many homeowners have a good understanding of appraisals. If your appraisal comes in lower than your offer, it could send things to the drawing board. You may have to pay the difference, renegotiate with the seller, or back out of the deal entirely if both parties can’t come to terms. Your lender won’t cover more than the appraised value. Since homes in our area are appreciating quicker, low appraisals are happening more and more often. In certain cases, a low appraisal can benefit a homebuyer because it ensures they’re not paying more than what the house is worth. On the other hand, in this insane seller’s market where every home seems to be getting 20 offers, it might be worth it to pay above the home’s appraised value if you think it’s the right home for you. Sometimes offering $1,000 over the appraised value is enough to make your offer stand out and get accepted. 3. Lowering your credit before your lender closes the loan. Many lenders will recheck your credit just before closing on the loan, which can be a problem if you’ve already made a major purchase or applied for additional loans or credit cards. Fortunately, this is an easy mistake to avoid. Just keep a tight rein on your spending in the weeks leading up to the purchase and save big-ticket purchases (e.g., a new car) until after you close on your loan. “Make sure you hire a great agent who can walk you through the home-buying process, answer all your questions, and make the purchase a great experience.” 4. Making errors in your homebuyer loan documents. If you spot an issue in your final closing disclosure or your name is misspelled on your loan documents, your closing could be delayed and your lender would have to append the paperwork before it can be signed and notarized. That’s why it’s critical for you to review all documents you receive right away so if there are any errors, you can report them to your loan officer as soon as possible. 5. Having problematic walk-throughs. Before you close on your loan, you’ll have the opportunity to perform a final walk-through of the house to ensure any repairs you’ve requested have been done, the homeowner has cleared everything out, and that the home itself has been maintained and is in the same condition as it was when you made your offer. If that isn’t the scenario you walk into, you’ll have to work with your agent to resolve this issue. They may need to ask for additional credits at closing to cover any additional repairs or schedule a cleaning or trash removal if the house is in disarray. The best thing you can do is ensure your agent works closely with the listing agent so that all repairs have been made and there’s proof of that before the final walk-through. You want your purchase to stay on track, so it’s important to be proactive leading up to closing. In addition to these tips, make sure you hire a great agent who can walk you through the home-buying process, answer all your questions, and make the purchase a great experience. As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to us. We’re happy to help.

New restrictions could make buying a second home much more costly. Interest rates and fees on investment properties and vacation homes have been skyrocketing, and there are a few reasons why. On March 10, Fannie Mae placed tighter restrictions on the number of second home/investment property mortgages that lenders can buy. Fannie Mae is one of the big banks that purchases loans after they close. In the past, around 14% of Fannie Mae loans were allowed to be used for second homes and investment properties. Due to the aforementioned restrictions, that percentage has been slashed in half to around 7%. Many lenders depend on Fannie Mae or Freddie Mac when selling their loans, so these rules are putting a lot of strain on mortgage companies. After the 7% cap is reached, these banks won’t be able to purchase any more loans. This also puts more risk on the lenders, as they could be stuck with loans that nobody wants to buy. However, they’re avoiding it by shifting the risk to buyers through higher loan costs. “These new rules may also encourage lenders to be even more selective when it comes to working with buyers.” It’s been reported that PennyMac, one of the largest loan servicing companies for these types of loans, has already added an additional 2.25% charge on loans for non-primary resident applicants. In other words, it costs more to get a mortgage on second homes or investment properties. This also includes people with down payments of 25% or more, and those who pay less face an additional 5% cost. For example, if you wanted to borrow $300,000 for an investment property and put 20% down, you could face an additional $15,000 charge or a higher rate to compensate for the fee. Though criteria like credit score, debt-to-income ratio, and cash reserves aren’t affected, it’d still be wise to save up additional money for the down payment on a second home. This can help cover fees and rates that are likely to be much higher on loans that have less than 20% to 25% down. These new rules may also encourage lenders to be even more selective when it comes to working with buyers. Even if you are selected, you can still expect to pay a higher rate—even when you’re in good financial shape—when buying a second home. The window of opportunity may be closing, but you can lower costs by increasing your credit score, paying debt, and saving up a sizable down payment. The strength of your application will matter more than ever, so these factors also help in this regard. If you have any questions or would like to know what this means for you, feel free to reach out to us. We look forward to hearing from you soon.

Here’s some more great info on our guaranteed offer program. Since we launched our guaranteed offer program, we’ve been getting a lot of questions like, “What’s the difference between your traditional listing program and a guaranteed offer program?” The biggest difference between the two programs is a matter of convenience. With our guaranteed offer program, you can basically bypass the traditional home sale process and sell on your timeline. Once we submit your property to our investors, we can have multiple cash offers in as little as seven days. This means you can close quickly, save the time and money of preparing the home, forgo all showings and open houses, choose your closing date, and move on your timeline. Another great thing is that we’ll still be here to help you negotiate the best offer and terms so you’re not dealing with the investors on your own. “Diverse home-selling needs call for diverse solutions.” On the other hand, our traditional listing program will be the way for our seller clients to make the most money possible by putting their home on the open market. This involves a little more work by default, but we do our best to make it hassle-free for our sellers. We follow a 14-step marketing plan to help maximize your property’s value, we follow up with all showings, and we ultimately negotiate the best offer and terms so you can walk away with the most money possible! So there’s really no wrong choice. At the end of the day, it’s a matter of convenience. We understand that every seller’s situation is unique, so we want to offer two great solutions to help them reach the next stage of their lives. As always, feel free to reach out if you have questions about this or any other real estate topic. We’re happy to be a resource for you and assist with whatever buying, selling, or investing needs you may have.

What is good faith money and why is it important? Find out here. What is good faith money? When a buyer’s offer on a home is accepted, they’ll include a deposit called the earnest money deposit with a deadline on when the funds will be deposited to the escrow agent. Normally, the escrow agent is also the one who will handle the closing. The earnest money deposit is supposed to show good faith that the buyer is serious about purchasing the home, and it goes toward their down payment and closing cost at settlement. In central Florida, the normal earnest money amount is between 1% and 3% of the sales price, though it can vary. If there are multiple offers on the home, a buyer might want to increase their earnest money deposit to make their offer look stronger to the seller. “The earnest money deposit shows good faith that the buyer is serious about purchasing the home.” If the buyer were to back out of the contract, both parties have to agree to this decision before the funds are released to either party. If the buyer has a home inspection contingency, finance or appraisal contingency, or another contingency, they can use them as options to void the contract and they will get their earnest money deposit back. Once the contingencies have expired, the earnest money deposit is at risk. If you have any real estate questions or needs, or if you know of anyone we can help, reach out to us anytime. We hope to hear from you soon.

As a seller, here’s what you can do if your home’s appraisal comes in low. What happens if your home’s appraised value doesn’t match its contract price? This is a legitimate concern for sellers in our market since so many listings are fetching multiple offers. The first thing you can do is have your Realtor check the appraisal for errors. Appraisers are super busy right now (along with everyone else), so there might be a typo somewhere in their report that threw everything off. In one of our client’s recent appraisals, for example, the home’s square footage was incorrect. After we identified the error and corrected it, everything was fine. If there are no errors in the appraisal, your Realtor can submit a rebuttal. In this situation, we’ll pull comparable sales in your neighborhood and show them to the lender. They’ll then decide whether any changes are necessary. This is still a challenge, though, and it doesn’t always work out in favor of the seller. However, it’s still an opportunity to increase the appraisal so that it’s closer to the contract price. “Appraisers are super busy right now (along with everyone else), so there might be a typo somewhere in their report that threw everything off.” If neither of these options work, your Realtor will have to go back to the drawing board and renegotiate with the buyer’s agent to come up with an agreed-upon price. Buyers and sellers understand that the market has been increasing these past few years. If you work with us, we’ll negotiate a win-win price to get you the most money possible for your home. As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to us. We’re happy to help.

Today we’re reviewing the most common forms of property ownership in our area. What are the most common forms of property ownership in Central Florida? Before we get into the answer, let’s start with a quick reminder: Title equals ownership. Title can be held in two different ways, the first of which being as “severalty” (meaning it’s owned by an independent person or entity), and the second being as a “concurrent estate” (meaning it’s owned by more than one person at a given time). So, now that we’re clear on those definitions, let’s move on to the two most common forms of ownership for both individual owners and multiparty owners. The most common forms of ownership for an individual in Central Florida are “fee simple” and “leasehold” ownership. Fee simple ownership is when an individual owns a piece of real estate outright, meaning they own all the land, dwelling, and air rights to a property. Fee simple tenure is also considered indefinite, wherein the owner has the right to sell or dispose of the property as they please. Leasehold ownership is basically where a parcel of land and the building on that land have different owners. So, in essence, the owner of the land is leasing the rights of the property to the tenant. Leasehold ownership is also referred to as “tenancy for years” because it generally lasts for a specific period. “Title can be held in two different ways: ‘severalty’ or ‘concurrent estate.’” Things get a bit more complicated when two or more owners take title to a single piece of real property. In fact, there are several different kinds of multiparty ownership. The two main types of multiparty ownership in Central Florida are “tenants in common” and “joint tenants.” Tenants in common refers to instances in which each owner retains separate rights over their share of the property. For example, let’s say two people own the same commercial building together. The deed specifies that Person A owns 60% and Person B owns 40%. Person A can sell or give away their 60% without telling Person B because the sale would not affect Person B’s ownership of his 40% share. On the other hand, if these co-owners were joint tenants, then each owner would have equal rights over the entire property. In other words, Person A could not sell a share of the property without Person B’s consent. Furthermore, if either co-owner were to die, the survivor would automatically take full possession of the property, a scenario which is also known as “joint tenants with rights of survivorship.” If you’re married, it’s called “tenant by the entireties,” which is basically the same thing. Hopefully this message helped clarify some property-related jargon you’ve heard being thrown around. If you have any questions about ownership or are interested in soon becoming a property owner yourself, reach out to us by phone or email anytime. We’re always happy to help!

There are three main reasons why filing for a homestead exemption is so important. Today’s topic is especially important for anyone who bought a home this year: What is the homestead tax exemption, and why is it important? First, let’s determine what Florida property taxes actually do. Well, they help your city and local officials raise funds. They pay for police, firefighters, schools, roads, etc. Every November, the tax bills come out based on the assessed value of your property. Now let’s talk about the homestead exemption, what that is, and how it benefits you. First of all, your homestead property is considered your primary residence. Therefore, you can only homestead one property at a time. “If you’re a veteran, disabled veteran, or senior citizen, you get additional exemptions.” The first benefit of the homestead exemption is that you can get a discount on your property tax assessed value. Your tax assessed value is the amount the government can tax you on and is slightly less than your home’s market value. The general rule of thumb is that it’s about 85% of your market value. So for a $100,000 property, your tax assessed value is about $85,000. Off the top, in the state of Florida, you get a $25,000 discount if you file as a single person and a $50,000 discount if you’re married. So if you have a $50,000 exemption, you reduce that from the $85,000 to get your tax assessed value, and the government can only tax you on $35,000 of that. Also, if you’re a veteran, disabled veteran, or senior citizen, you get additional exemptions. Check with your local property appraiser’s office to see what exemptions you’re eligible for. The second benefit of the homestead exemption is creditor protection. If for any reason you are sued civilly, they can’t touch your homestead or the equity on that property. So creditor protection is very important. The third benefit is the 3% cap. In terms of tax assessed value, there is a ceiling on appreciation; even in areas that have appreciated more than 3%, the maximum they can assess you is 3% per year. We hope this shines a little bit of light on the subject. If you have any further questions, give us a call at (407) 519-0627. We’d love to hear from you.

Here’s a quick message of thanks to you in the spirit of the season. The 2020 holiday season has officially begun, and we hope you are as excited about it as we are. I know it’s been a crazy year, and even so, I feel like there’s so much to be thankful for. We’ve met some truly incredible people this year and have had the privilege and honor of being able to assist many of you in accomplishing your real estate dreams. Without all of you and your support, we wouldn’t be where we are today. We hope you enjoy your Thanksgiving with your family and your friends. In the meantime, if you have any real estate-related questions, please feel free to reach out to us because we’re here to help.

Why are buyer consultations so important to first-time homebuyers? Today I want to address a question that often comes up, especially for new buyers: Why are buyer consultations important? There are three primary reasons: 1. They provide a detailed needs analysis. One of the first things we do during our buyer consultations is the needs analysis, which allows us to cater specifically to our clients’ needs and wants. We’ll discuss things like motivation, time frame, location, and home criteria. Using that information, we’ll be able to better search for homes on your behalf and only send you listings that meet your criteria. 2. They educate you on the current market and let you review the buying process. The market is constantly moving, so when it’s time for you to buy, we want to make sure you have a great understanding of what’s happening based on up-to-date market statistics, not just our opinions. Since this may be your first time buying a home, we’ll also review the buying process with you and address any questions or concerns you have. 3. You’ll become familiar with your agent. You’re preparing to purchase one of the largest assets of your life, and you should feel comfortable and confident that your agent will get the job done for you. Not every agent works the same, so this gives you the opportunity to interview your agent and make sure they have the skills, experience, and qualifications you’re looking for. There are no bad buyers—only bad Realtors. If you’re thinking about buying a home, reach out to us. It’ll be our pleasure to walk you through the process to make sure your home buying experience is a great one.

Here are my thoughts about a possible foreclosure crisis on the horizon. Today I want to talk to you about a foreclosure crisis that might be looming on the horizon, and what it could mean for you. I’m sure you know how the pandemic and lockdowns have hurt the economy. Many people have lost jobs or had their hours cut significantly. As a result, they are struggling to make regular mortgage payments. You’ve probably also heard about various forbearance programs. These are temporary private and government programs that allow mortgage borrowers to postpone or even reduce their monthly mortgage payments. As it stands, 3.7 million borrowers are in mortgage forbearance programs. That’s about 7% of all active mortgages. Many of these folks just hit the six-month mark of mortgage forbearance. The big question is what will happen in another six months when the maximum term for these forbearance programs comes to an end? That brings me to the possibility of a foreclosure crisis. Indeed, many people will still not be able to make their mortgage payments as forbearance programs run out. Unfortunately, some will be forced into foreclosure. However, I’m not expecting a scenario like 2008. The difference comes down to current sky-high home prices and record-low mortgage rates. These unique circumstances mean that most homeowners have equity in their homes right now. In fact, home equity for homeowners with a mortgage rose 6.6% annually in the second quarter of this year. This rise in equity means homeowners have options, even if they are struggling to make payments. In other words, they can put their homes on the market and sell them rather than lose them to foreclosure. “About 7% of all active mortgages are in forbearance.” So what does this mean for you? Well, the current real estate market is severely short on its supply of homes. Homes are selling very quickly and at record prices simply because demand is so much higher than supply. Even if we don’t see a foreclosure crisis in the coming months (and I do not believe we will), there is likely to be a flood of new homes for sale on the market. It’s likely to put a chill on home price growth or even reverse it. We will enter a more balanced market, where buyers have more of a say. I bring this up in case you have been thinking about selling soon but are still on the fence. The current moment might be golden. The lack of supply right now means you could sell quickly and for top dollar. If you have any questions, whether you’re buying or selling, give us a call or send a quick email today. We have our fingers on the pulse of the Central Florida real estate market, and we can help you make the right decision for your specific circumstances. We look forward to hearing from you.

Here’s what to know about credit score and down payment requirements. Today we’re joined by our good friend Trey DelGreco with Movement Mortgage to answer a two-part question: What is the minimum down payment and credit score needed to obtain a loan these days? This is a question Trey hears all the time and the right answer depends on your situation. Typically, the higher your credit score is, the less of a down payment you’ll need, while a lower score will require a higher down payment. “There are down-payment assistance programs out there.” The target minimum for most loans is a 620 credit score. You can get a conventional or FHA loan with this score, but you might need more of a down payment. If you don’t have a big down payment or any down payment, there are options for you. There are down-payment assistance programs as well as 0% financing programs available. Just be ready to have a higher credit score if you apply for one of those programs. They typically require at least a 640 score. If you have any questions for Trey, give him a call at (407) 240-7063. If you have any other real estate-related questions for us, feel free to contact us via phone or email anytime. We look forward to hearing from you soon.

This is how I suggest you spend your money on home improvements. One question we’ve been hearing a lot recently is, “What can I do to improve my home so I can get top dollar in the resale market?” One example comes from a client who recently sold their home in Kissimmee. She needed to paint, change some flooring, freshen up landscaping, and basically reset the home for the next owner. With our help and that of our staging consultant, we were able to guide her through this process and suggest simple improvements that ultimately got the property sold with multiple offers and above market value. Today we’re sharing tips that will ensure your home improvements make money for you. 1. Neutralize the color palette. It is always best to neutralize any bold or unique colors, and make more neutral color selections for the walls. 2. Shore up curb appeal. Make sure the curb appeal of your home is attractive to any buyer driving up. That could mean changing a front door, painting, or restaining. Those are very simple things to do. Trimming trees away from your rooftop is a great idea as well. “It is always best to neutralize any bold or unique colors.” 3. Focus on flooring and the kitchen. It may be as simple as replacing old carpet to give more of a refreshed look or possibly putting in faux wood tile, laminate, or vinyl. We have great contacts if you ever need to talk to someone about it. Freshen up the kitchen cabinetry as well. That could be as easy as getting some different fronts for the cabinetry so you don’t have to replace the full box, or painting and adding some updated hardware to it. 4. Let the natural light shine. Make sure all the light bulbs match, have warm light, and aren’t too bright. If you have any solar screens on your windows, take those off to let the light in, and make sure you get the windows cleaned, or do it yourself. An easy thing is to get Fabuloso, water, and a mop, and go to town on the inside and outside of your windows. Those are just some of the things we recommend to get your home ready for the market. If you have any questions for us, don’t hesitate to reach out via phone or email. We look forward to hearing from you.

Here are the three keys to standing out in a multiple-offer situation. Lately, we’ve had several buyers ask us, “What can we do to make our offer look stronger?” In today’s highly competitive market where we’re seeing more and more multiple-offer situations, this question is only natural. If you find yourself competing against other buyers for the same property, remember these three tips for making your offer stand out to sellers: 1. Write your contingencies to be as brief as you feel comfortable, or eliminate them altogether. For example, shortening your inspection contingency from 15 to seven days shows the seller you’ll be quick to order your inspections, meaning they’re only at risk of having their property off the market for seven days instead of 15. Alternatively, if you’re receiving a loan, you may reduce or remove your appraisal contingency since you can order your appraisal during your inspection contingency period. For example, if you have 15 days to do your inspections and you remove your appraisal contingency altogether, just arrange for your appraisal to be done in that 15-day window. Since the inspection contingency is considered a ‘free look,’ you don’t need to give a reason for backing out. 2. Increase your escrow deposit amount. We advise our buyers to offer a minimum deposit of 2% of the home’s purchase price. This deposit is made in good faith to show the sellers you are serious about purchasing their property. A large part of our job as real estate professionals is protecting a buyer’s deposit, so the more money you feel comfortable with depositing, the stronger your offer appears. “Never underestimate the power of a determined buyer and an experienced agent.” 3. Go above asking price and appraised value. In our current market, this approach is becoming more common. If you happen to find that perfect 10-out-of-10 dream home, there will most likely be multiple offers on it, and you may have to pay above asking price. We recently competed against 13 other offers on a home in Winter Garden! The home was a flawless fit for our buyers, and they wanted us to do whatever it took to get their offer accepted. The home was priced at $400,000, so we decided to offer $405,000, and pay $1,000 above appraised value up to $405,000. In other words, if the property only appraised for $400,000, our buyers communicated to the seller that they would still be willing to pay an additional $1,000 out of pocket. Since no other buyers offered to pay above appraised value, our buyers got the house! No matter how fierce the competition is out there, you can never underestimate the power of a determined buyer and an experienced agent. If you have questions about this topic, or if you hear of anyone looking to make a move that we can help, feel free to give us a call or send a text to 407-519-0627. As always, make sure you like, share, comment, and subscribe to our channel—hit that notification button so you never miss a video!

If you’ve inherited a property, these four steps will help you deal with it. If you inherit a property, you may not know what to do with it. These are the first four steps to follow if you inherit real estate: 1. Meet with a probate attorney. An attorney can help you find out who has assumed the various rights and responsibilities associated with the property so you can get a full picture of what you’ve inherited. 2. Have the property inspected. We recommend treating the inherited property as you would a real estate purchase. Before you buy a property, you have to have it inspected, so do the same when you inherit a property. Knowing what shape it’s in will help you with later decisions. 3. Find out whether there are any obligations attached. Ideally, the inherited property will be paid off, but that’s not always the case. Contact your trusted local real estate professional to see whether there are any ongoing or imminent obligations such as payment of taxes, landlord-related obligations, or mortgages. Some loans are required to be paid immediately if the borrower passes away; if the beneficiary wants to keep the property, they’ll need to consider whether they can pay it off or have the credit and financial ability to refinance. 4. Decide whether to sell or keep the property. Once you have all the other information we’ve covered, you’ll be ready to decide what to do with the property. It’s important to determine the property’s current market value for both renting and selling. Consider both options because inheriting a property can give you a massive boost in building long-term wealth. It may be tempting to sell it at first, but consider the long-term cash flow potential of renting it out. Contact your trusted real estate agent to talk through your options. “We recommend treating the inherited property as you would a real estate purchase.” If you have further questions about inheriting property or real estate in general, contact us via phone or email or leave a comment. We would love to be your chosen local Realtors. Remember: Your goals are our priority.

Here are some ways you can save on your next mortgage or refinance. Today we want to tell you about a few quick and easy ways to save hundreds or even thousands of dollars when you’re refinancing or taking out a mortgage on a new home. First is a little-known option called an appraisal waiver. In a nutshell, when a lender decides to give you a loan, they want to have a good idea of what your property is worth. The typical way they do this is by sending out an expert to examine the property. This appraisal typically costs between $270 and $750. As you can probably guess, it’s you, the borrower, who is on the hook for paying this fee. The appraisal waiver, on the other hand, is simply a way to skip this fee. Instead of sending an expert to visit your home (or future home) in person, the lender uses analytics and calculations to figure out what your home is worth, without any inspection. This has been an option for a long time, but it’s jumped up significantly in popularity over the past several months because of the pandemic and subsequent desire to do business virtually. Plus, an appraisal waiver saves you the money, time, and hassle of having an appraisal expert visit. What’s more, it could even result in a higher appraised value for your home, which would mean better terms for your new mortgage. But what if the virtual appraisal comes back with a number that’s less than you hoped for? “The ZeroPlus program has been saving our friends and family thousands.” In that case, you can still request an in-person appraisal, or simply deal with another lender. You’re not bound in any way. You can see now why this is such a risk-free and easy way to shave off a few hundred dollars of fees when refinancing your home or taking out a new mortgage. The second option is the ZeroPlus program through Keller Mortgage. When you refinance or take out a new loan with Keller Mortgage, there are no lender fees, no origination fees, PLUS they contribute $1,000 toward any third-party closing costs. This program has been saving our friends, family, and customers thousands of dollars and is definitely worth looking into. If you’re looking to get started, all you have to do is download our mobile app, tap on the “More” tab at the bottom, and under “Tools” tap on Keller Mortgage. It’s that easy. If you have questions about your local market or if we can help in any way, please give us a call or send us an email today. We would love to hear from you.

Here are our predictions for how our market will be for the rest of 2020. What will our real estate market look like for the rest of 2020? We’ve received a ton of questions about our market and where it’s heading. Many people have been drawing comparisons between our current market and the housing crisis we faced from 2008 to 2010 and fear we may be heading in a similar direction. However, in those years there was a ton of inventory, and mortgages were given to virtually every applicant. There was almost no income verification or money down, so almost anyone could get a mortgage. Home prices were also higher and growing rapidly, and rents were significantly lower in those days. In 2020 we have historically low interest rates, and qualifying for a mortgage is more difficult. Today we have a shortage of houses for sale, and you have to document everything and prove you have the income and assets to qualify for a mortgage. Rental rates are much higher now, so walking away from your property and letting it foreclose doesn’t make sense because you’ll end up renting for just as much, if not more in some areas. So comparing our current market to that of the housing crisis is like comparing apples to oranges. “Comparing our current market to that of the housing crisis is like comparing apples to oranges.” Today we’re seeing a lot of consistency in our market, and buyer demand is there. Before the pandemic, over 900 residents were moving to Florida every day, so we may see more people moving here again soon. We’re seeing some great trends as we continue to move through the health crisis, and many businesses have begun opening back up. At the end of all this, we should have a checkmark shaped recovery, and we expect the third and fourth quarters to be strong. With historically low interest rates favoring buyers and low supply benefiting sellers, it’s currently an opportune time to enter the market. We’ve been seeing more and more clients sell their current home and upsize to another bedroom or three-car garage by taking advantage of our market. If you’re sitting on a lot of equity, you may want to consider leveraging that by investing in a rental property. Our goal is to create opportunities for you and help you build wealth through real estate. If you have questions about your house or the market, or if we can help in any way, please give us a call or send an email. We would love to speak with you.

Our final COVID-19 market update comes with plenty of great news. For your final COVID-19 market update, we have some great news to share from the statewide economy and real estate market. First off, the Pandemic Emergency Unemployment Compensation program has granted unemployed Floridians at least 13 more weeks of benefits. Also, all Universal Studios parks will reopen on June 5! With much of Florida reopening and so many accompanying jobs coming back, our Lake County market is sure to see an upswing in real estate activity.

More businesses have been allowed to reopen, and our market is moving along steadily. For your latest weekly coronavirus update, we have some more important news to share from the economy and our real estate market. Monday, May 18, ushered in a new wave of reopenings across Florida, including gyms and fitness centers. Theme parks have also been given the green light by Governor DeSantis to submit their plans for reopening. In real estate news, there were 139 new homes listed last week and 195 that went under contract, which means the market is still moving steadily.

Here are the latest COVID-19 developments you should know about. What’s the latest news regarding COVID-19, the Florida economy, and our real estate market? On May 8, Governor DeSantis signed an executive order extending Florida’s state of emergency for 60 days, which means we can continue to receive federal assistance and resources. On May 11, barbershops and hair salons were allowed to reopen. Furthermore, Disney Springs plans to begin reopening on May 20. There are a limited number of shopping and dining options that will be open while the rest of the park will remain closed.

Our state is slowly reopening and things will start ramping up this week. We hope that you and your loved ones are staying healthy and safe. Governor DeSantis announced his plans to reopen the state of Florida starting on May 4, but Phase 1 will exclude Miami-Dade, Broward, and Palm Beach counties. The first phase is opening retail stores and restaurants at 25% capacity, resuming elective surgeries, continued distanced learning for schools, and more. In real estate, we’ve had a subtle decrease in home values in Lake County, but we’re hopeful that things will bounce back this summer. For a full breakdown of reopening efforts, check out this link.

If you’re suffering from financial strain due to the pandemic, you can apply to postpone your mortgage payments. Given the current pandemic, mortgage lenders are currently providing mortgage relief to struggling homeowners. The coronavirus has led to a deluge of layoffs all over the U.S. If you’ve been struck financially by the health crisis, you may want to consider postponing your mortgage payments. You can apply for up to a 12-month deferment in certain cases. So today we’re discussing the three essential questions you should be asking your lender about mortgage forbearance.

How has the market has been affected by the pandemic? Here’s a peek at what we’ve seen, and how we’ve risen to the challenge. In today’s update, our goal is to keep you informed on how the coronavirus has impacted the market. We hope you and your loved ones continue to stay safe and healthy! Last week, the director of the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) authorized real estate services as part of the nation’s critical infrastructure, including residential and commercial real estate services, as well as title companies, notary services, leasing offices, and mortgage lenders. On March 30, the World Health Organization released guidelines to help countries maintain essential health services during the coronavirus pandemic. You can read the protocols here. So since we’ll be continuing to operate during the pandemic, what have we done to adapt? Watch our video above to find out. If you have any questions, don’t hesitate to reach out. We look forward to hearing from you.

Here’s how the coronavirus is affecting our housing market and economy. With the coronavirus continuing to dominate our daily lives, it can be hard to keep up with all the latest news, but today we’ll update you on how it’s affecting our economy and housing market. The good news is, according to a recent Zillow study, the behavior of the housing market during previous pandemics paints a reassuring picture for sellers. Home sales dropped, but prices stayed roughly the same. Essentially, the market shifts into “pause” mode during these situations. As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to us. We’d be happy to help.

If you’re a first-time homebuyer, it’s time you learned about FHA loans. If you’re thinking of buying your first home, you may have heard of FHA loans. If not, you certainly will once you start working with a lender. These types of loans are some of the most popular, especially among first-time homebuyers. What makes them so ideal? Should you consider using one for your home purchase? Before we answer those questions, let’s define the FHA loan. This loan is a type of mortgage guaranteed by the Federal Housing Administration (FHA). Since the FHA insures these loans, if a borrower defaults on them, the government pays the lender for any losses. The FHA itself doesn’t lend money; it merely guarantees the lender won’t incur losses. The popularity of FHA loans is due to two factors: low down payment and credit score requirements. They’re designed for first-time homebuyers with lower and moderate incomes. That’s why, when they ran the numbers, the FHA calculated that 82% of its loans go to first-time homebuyers. That being said, the loan is available to any buyer who meets FHA criteria. Even if you’ve owned homes in the past, you can use the FHA loan to buy another property as long as it’s your primary residence. Specifically, you can qualify for this loan with a credit score as low as 500—far below the minimum score of 620 most lenders require for conventional loans. Also, you only need to pay as little as 3.5% down, which is among the lowest in the industry. Keep in mind, the 3.5% mark is generally reserved for those with a credit score of 580 or better. To purchase with a score of 500, you’d need to pay 10% down. FHA loans also allow some flexibility in terms of the sources of your down payment funds and closing costs. Down payment funds can come from a gift or grant, and sellers are allowed to pay up to 6% of your closing costs. For most conventional loans, sellers can only pay up to 3%. “The popularity of FHA loans is due to two factors: low down payment and credit score requirements.” The downside to FHA loans is that you’ll need to factor in a little more toward your closing costs and monthly payments. You’ll also need to pay FHA mortgage insurance, which is similar to the private mortgage insurance lenders require you to pay when you put down less than 20% for a conventional loan. FHA mortgage insurance can be paid upfront as part of your closing costs or as part of your monthly payment. The upfront cost is 1.75% of your total loan amount, and the monthly cost varies based on your down payment, length of the loan, and the initial loan-to-value ratio. For example, on a $300,000 loan, the upfront mortgage insurance premium would be upwards of $5,200, and the premium would be between $112 and $260 per month, depending on the loan terms. There are limits to how much home you can purchase with this loan, and it varies greatly from county to county in Florida. In 2019, the FHA loan limit for most counties in Florida was $314,827 for single-family homes. In Monroe County, though, the limit is $529,000—the highest limit available. In addition to your credit, down payment, and maximum loan amount requirements, qualifying for an FHA loan means meeting these criteria: Borrowers must be a legal resident of the U.S., live in the country, and show two years of steady, verifiable employment The property must be your primary residence—no vacation cabins or rentals. However, you can buy a multi-unit property as long as you live in one of the units The property must be appraised by an FHA-approved appraiser Your front-end debt ratio should not exceed 31% of your gross monthly income Your back-end debt ratio should not exceed 43% of your gross monthly income If you have any further questions about FHA loans or other real estate topics, don’t hesitate to reach out to us. We’d love to help you.

Is a recession coming? These three factors will tell us what to expect. As we begin 2020, are we going into a recession? There are three indicators we look at to answer that question: the GDP, unemployment and wages, and interest rates. GDP stands for “gross domestic product,” and it represents the total monetary value of all goods and services produced and sold on the market in a certain country, typically in a one-year time frame. GDP is the most commonly used measure of economic activity, and we’re in year 11 of the longest expansion in American history. President Trump and many analysts are optimistic that our country will continue to be healthy, and we can continue to hit these record-breaking marks if our politicians reach a trade agreement. I’m sure you’ve heard about the trade war that keeps dragging on, and these pullbacks in corporate investment remain a risk in terms of our economic outlook. A short-term partial agreement could possibly encourage businesses to resume spending, allowing the economy to muddle along at a slower growth rate of about 2% through next year, according to Michael Skordeles, head of U.S. macro strategy at Centrist Private Wealth Management. About 90% of the world’s economy grew slower in 2019 than it did in 2018. In 2019, the U.S. was the world’s leading economy in terms of GDP, followed by China, Japan, and Germany—the same ranking as 2018. These economies are an engine of growth, in addition to commanding the majority of the global wealth. Since 1980, 17 of the top 20 economies remained in the top 20. Unemployment is a lagging indicator, meaning it’s an untimely but still reliable source. When the unemployment rate rises quickly, a recession is almost certainly on its way (or has already arrived). As of now, our unemployment rate is trending downward and is just over 3%, which is a 50-year low. Fortunately, wages are rising because people have options. “Mortgage loans aren’t handed out like candy anymore.” When interest rates increase, the government tends to want to slow the economy down. When they decrease, the government tries to accelerate the economy. In October 2019, Federal Reserve Chairman Jerome Powell said that officials believed the monetary policy was in a safe place. They also signaled that the central bank would hold off on any further interest rate cuts unless the economic outlook changed materially. After lowering borrowing costs three times last year, the central bank has very limited means to stimulate the economy if things were to worsen. Ahead of the Great Recession, interest rates hovered around 5%, which left ample room for them to be reduced. There’s been a lot of fear since 2008, and understandably so. Back then, we experienced a very consumer-driven recession. However, mortgage loans aren’t handed out like candy anymore. We’ve seen a significant increase of millennials entering the market, which has increased market activity significantly. If a recession does occur, it could reduce home prices. However, this recession would be a mild one because our economy is doing well right now. If you’re thinking of buying or selling in our 2020 market or have any questions for us, don’t hesitate to call or email anytime. We’d love to help you.

If you have plans to become a real estate investor, we’re here to take you through the process step by step so you know what to expect. If you’re curious about investing in real estate and want to become a real estate investor, the first step you need to take is to begin thinking like an investor, which starts with your personal finances. You have to hold every dollar accountable now, because that’s exactly what you have to do as an investor. If you develop that discipline now, it makes those habits so much easier. Next, have a written budget of all the money that’s coming in and all of the money that’s going out. Of the money you have left, you always want to make sure you have two to three months’ salary in your savings first before you even start thinking about investing, in our opinion. The next step is to speak to a lender. The rule of thumb is that you should put down 20% to 25% on your down payment so you can minimize that mortgage payment by eliminating PMI and increase your monthly cash flow. You’ll also want a credit score of at least 740, preferably, so you can get the best interest rate possible. The lender will help you gather all of your financial documents, such as your bank statements and tax returns. Once your finances are in order, it’s time to decide on an investment strategy. There are so many different ways to go about it depending on what your goals are. You can go the fix-and-flip route, where you buy low, renovate, and sell to make a quick profit. You can also look at the long-term strategy of buying and holding a property, where you rent out the property, have the tenants cover the monthly mortgage payment, and ride the market for appreciation. Now it’s time to decide what kind of property in which you want to invest in. It could be a single-family home, duplex, or four-plex. Any property with more than four units does turn into a commercial investment property, which calls for a different kind of financing. “Stay patient, look for a gem, and don’t sway from your goals.” The best thing to do at this point is to focus on the investment strategy that you chose and try to master it to the best of your ability. When it comes to investing, the numbers are really what matter at the end of the day. Educating yourself with the numbers in the market is very important. You want to know things about maintenance costs, vacancy rates, repair costs, and more. Finally, it’s time to find the property. The rule of thumb is that you want to buy a property for at least 10% below its market value, and negotiate terms to best serve the investment strategy you chose. Stay patient, look for a gem, and don’t sway from your goals. When you’re ready to get started on the path of becoming a real estate investor, give us a call or send us an email. We’d love to help you map out a strategy that will help you and your family succeed. If you have any questions for us, don’t hesitate to reach out. We would love to hear from you.

Having multiple offers is a great problem for homeowners to have. Here’s how to solve it. In our market, multiple-offer situations are rampant. If you’ve just listed your home and you’ve received more than one offer, how do you know which one to choose? The first thing we can do is go back to all the buyers and their agents to confirm that they’ve submitted their highest and best offer. If they haven’t, we allow them to make changes to those offers, which in turn will enable you to choose from the highest and best ones. Of course, the price is a significant factor in this decision. With that said, the offer with the highest price is not always the best decision for you. There are other factors that you should consider. For example, consider the offer that best matches your timeline. Do you need to get out of your current house quickly, or do you need some time to shop around for your new home? “Cash isn’t always king.” Another thing to pay attention to when weighing offers is the amount of money that the buyer puts down. How much skin in the game do they have? This is especially important in an urgent market like ours, where buyers can be rushed into a decision and get cold feet later on. They’re much less likely to back out if they have a higher earnest money deposit. Financing is another big component. Cash isn’t always king. If a buyer has been pre-approved by a reputable lender, their offer is as good as a cash offer. We’ll help you lay out all the offers on the table and figure out which one is best for you. If you have any questions for us about dealing with multiple offers or about anything else related to real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

If you list now, you’ll have less competition and deal with more serious buyers. “Should I sell my home during the holidays?” That was the question one of our subscribers, Frank B., recently asked us. We told him it really depended on whether he was hosting this year—if you have messy guests, you might want to wait. In all seriousness, though, there are two main reasons why selling during the holidays is a great opportunity. First, there is less competition. Many homeowners decide to pull their homes off the market until the holidays are over. Then, once January arrives, those sellers all list at the same time, resulting in an upswing in inventory and an increase in competition. “There are two main reasons why selling during the holidays is a great opportunity.” Second, buyers are more serious during the holidays. Most buyers typically wait out the holiday season, but this year we’re seeing more activity due to the low interest rates. This has also resulted in more multiple-offer situations. Also, many buyers want to buy now so they can file their homestead exemption in time and save in property taxes. So if you want to get the home selling process started, your first step should be to call our team. Next, don’t forget to subscribe to our YouTube channel. Remember, if you have any questions you’d like us to address in a future video, leave them in the comment section below. If we select your question, you’ll receive a gift card in the mail. As always, if you have any other real estate needs, feel free to reach out to us as well. We look forward to hearing from you.

The mortgage patch may expire soon and this could impact many people’s ability to qualify for a home loan. Here’s what you should know. Mortgage rates are currently low but mortgages themselves might soon be hard to come by. After the financial crisis, the Consumer Financial Protection Bureau created something called a “qualified mortgage patch.” This allowed Fannie Mae and Freddie Mac to buy mortgages from borrowers who had debt-to-income ratios that were higher than normal. There were a lot of these mortgages — 3.3 million over the past five years, or over a quarter trillion dollars’ worth in the last year alone. In fact, mortgages that fell under this “patch” accounted for 19% of all loans bought by Fannie and Freddie. That’s a huge chunk of the market, considering that Fannie and Freddie guarantee roughly half of all mortgages out there. Now, here’s the news: The “qualified mortgage patch” is set to expire in January of 2021. Proposals that have come out in the past month seem to favor abolishing the patch, so Freddie and Fannie could no longer buy mortgages at the greater debt-to-income ratios. How might this affect you? Well, one obvious impact would be fewer homebuyers. At least some of the homebuyers who got a “patch mortgage” probably wouldn’t have gotten a mortgage if the patch weren’t in effect. In other words, abolishing the patch might mean fewer homebuyers, which will make it more difficult to sell a home. “It’s not 100% certain the qualified mortgage patch will be allowed to expire.” Second, there is likely to be an effect on home price growth. The fewer buyers there are, the lower the demand. And lower approved mortgages means less money to spend on homes. In time, this could lead to a slowdown in home price growth or even a decrease in home prices. Third, these changes might make it more difficult for you to personally get a mortgage. The large number of homebuyers who would no longer have access to Freddie and Fannie credit would have to look elsewhere. This might put added pressure on mortgage lenders — and make mortgages more difficult to obtain for everyone. So are these changes something you should worry about? Well, it’s not 100% certain the qualified mortgage patch will be allowed to expire. Even if it is allowed to expire, it won’t do so for another 18 months. But if it does happen, it’s not likely to benefit those who are looking to buy or sell a home. If you have been considering buying or selling, it might be a good idea to get the process going before these changes come into effect. If you have any questions for us or want to get the process started today don’t hesitate to reach out and give us a call or send us an email today. We look forward to hearing from you soon.

There are four key factors to keep in mind as you prepare your home for the market.   To best prepare your home for the market, there are four key factors to keep in mind: 1. The market’s condition. In a strong seller’s market, you don’t need to do much—there’s little inventory and not much competition. You can price your home reasonably and it will sell no matter what. This was the case here in central Florida until the end of 2017 when conditions started to shift. 2. Price point. In the average price points, you don’t need to do a lot to sell a house. However, in the higher price points (i.e., $400,00 and above), your home’s condition becomes more and more of a factor. 3. Selling conditions in your neighborhood. If every home in your neighborhood has granite countertops and yours has Formica, for example, that could negatively impact your sale. Also, if all the listings in your neighborhood are renovated and cleaned before they sell, you need to do the same to your home. 4. The resources at your disposal. Do you have the money or skills to make the necessary changes to your home? If you don’t have the resources to do anything, you’ll have to use whatever strategies are available. Be sure to ask your Realtor for their advice on which approach to take. “The more personal items you can remove from your home’s living areas, the better off you’ll be.” Now, if you do find yourself in a situation with limited resources, the good news is that these four tips will help you regardless: 1. Declutter. The more personal items you can remove from your home’s living areas, the better off you’ll be. Buyers want to be able to see themselves in your home, and decluttering doesn’t cost you a thing. 2. Paint. Generally, painting is inexpensive. Repainting the entire interior of your house can cost as little as $2,000, and doing so will dramatically change the perception of your home. 3. Boost your home’s curb appeal. First impressions are everything in real estate, so do everything you can to make the first glimpse buyers will have of your home look as good as possible. Cleaning up your front yard and updating your landscaping will take you far in this regard. 4. Eliminate odors. If your home smells like pets or stale cigarettes, it may turn buyers off. These odors are relatively easy to get rid of, but you’ll have to do some research as to how. If you have any questions about this or any other real estate topic, don’t hesitate to reach out to us. We’d love to help you.

Could 2019 be the ideal year for you to sell your home?   Since the market has been on a tremendous upswing since 2012, we’re often asked if this means that there will soon be another crash. That’s a great question, and the answer is: Not necessarily! It does mean that the market is becoming more favorable to buyers; even though we’re still in a seller’s market, it just doesn’t have the same level of intensity that it did even just two years ago. What does this mean for sellers? Does it mean you’ll sell your house for less money than you could before? Luckily, that is not necessarily the case! In the past couple of weeks alone, we’ve had multiple properties sell for all-time highs in their respective neighborhoods. Right now can still be a great time to sell your home, especially since inventory has dropped by 29% over last year. That’s 29% less competition for you if you decide to list your home, and you’ll still have a bunch of buyers interested in your home because of the dip in interest rates. These factors all indicate that sellers have lots of great opportunities to pursue in our market. “These factors all indicate that sellers have lots of great opportunities to pursue in our market.” Homes that are in good condition are still selling with multiple offers on them. There have been many homes in our market that have undergone price reductions; you can no longer just list a home that’s in need of a lot of work and expect to get multiple offers. That aside, it’s still a fantastic time to sell. Another factor to consider is interest rates. Last year, rates shot up, but since then they’ve dropped even lower than they were before. Nationwide, rates are still hovering around 4% for a 30-year fixed mortgage, meaning that more buyers can afford to purchase homes. While we can’t predict with 100% accuracy what will happen in the future, we certainly don’t think that we’re headed for a crash—especially not here in Central Florida. However, we do expect the market to become even more favorable to buyers over time. If you’re thinking about selling your home and are curious about its value, reach out to us. We’d be happy to let you know if now is truly the best time for you to take advantage of the 2019 market and sell your home.

If you’re going to live in your home while you sell it, there are a few things you can do to make the process easier. Here are our top tips.   Your home has always been your sanctuary. Your own personal space. However, when that “For Sale” sign goes out on the front lawn, you need to be prepared to bare all. Prepare for your new home while living in your listed home with these helpful tips: 1. Start packing now. The secret to getting a house clutter-free is to remove the things you can live without while your home is on the market. 2. Store it, sell it, chuck it, or donate it. While you’re packing, work on decluttering and throwing away or donating the items you no longer need. It won’t just give you a head start on moving. Buyers appreciate the extra space when searching for homes. 3. Get squeaky clean. Lacking the motivation to clean every cobweb on the ceiling or scrub the floor? A clean house can gain you up to $10,000 extra on your home sale. Aim for five-star hotel perfection when cleaning sinks, glass, mirrors, and light fixtures. “Make the prep process a game for your kids.” 4. Maintain your privacy and safety. People tend to look through drawers, closets, and medicine cabinets at showings or open houses. Protect your valuables by locking them up or removing them from your house. 5. Involve your kids in the process. Make the prep process a game. Challenge your kids to a contest of who can clean up their room the fastest. You might be surprised at how cooperative the kids are and how much fun they have when you say that it’s showtime. Moving is never easy, but hopefully these tips can make the process a bit easier. If you have any questions in the meantime or any real estate needs that we can assist with, don’t hesitate to give us a call or send us an email today. We look forward to hearing from you soon.

Low interest rates are really driving our market right now. Here’s how.   We have some exciting news to share with you today. Recently, the interest rates took a second dip. Last year, they were around 5%, but have dropped to under 4% since. What does this mean for you as a buyer? More power! If interest rates drop 1%, it increases your affordability by 10%. If you were approved for $300,000 last year, you can afford up to $330,000 now while maintaining the same monthly payment. “These low rates should remain steady until the end of the year.” This is great news if you have been on the fence about home buying. From what we’ve heard, these low rates should remain steady until the end of the year. This will allow you to buy a home and file for your homestead exemption by the end of the year. If you have any questions for us about interest rates, home buying, or real estate in general, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Our market remains busy, and it’s still an opportune time to command a high price selling your home.   We know what’s happening in Central Florida, specifically pertaining to home values, that will directly affect you. So, we’ll be posting two monthly video messages on this blog to keep you updated.   They will be valuable and useful in helping you stay on top of what’s happening in the community. Check back because content will be coming soon! We’re excited to keep you updated on what’s happening in Central Florida!