Palm Beach County Real Estate Podcast with Joe DeSane

There are three questions I recommend asking any agent before partnering with them to accomplish your real estate goals.  What’s their experience? This doesn’t necessarily mean how many years they’ve been in business, but rather how many transactions they’ve completed in the last 12 months. The average Realtor sells about seven homes a year, so any agent selling less than this probably lacks the kind of experience you should expect from the person you hire.  What is the contact information for their last three clients? An agent who has had success with their past transactions should be happy to put you in contact with people who can vouch for them.“With the summer market approaching quickly, it’s important to find out how an agent plans to set you up for success.” What will this agent do to make your home stand out? The summer market is quickly approaching. It’s important to find out how an agent plans to set you above the competition, especially if you’re a buyer. Multiple offer situations are common in the summer months, so it’s important that the Realtor you hire has a strategy for your success. Sellers, on the other hand, need to work with someone who will be able to help them capitalize on these hot conditions. If you have any other questions, would like more information, or are interested in how my team and I may be able to help you with your real estate goals this year, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Looking to sell your Palm Beach County home? Click here for a free home value reportLooking to buy a Palm Beach County home? Click here to search the MLS Today we’re going to discuss appraisers and why it’s important to understand exactly what they’re doing when they’re conducting an appraisal. The common misconception is that an appraiser is there to determine the value of your home. In reality, an appraisal is simply the act, or process, of developing an opinion of value. In almost all cases, it’s not their job to assess value and it’s not what they should be doing.  The first step homeowners should take before selling their home is to interview agents so that they make sure they are hiring someone who understands the current market, has a custom marketing plan, and a proven track record. During these interviews, we spend a lot of time reviewing the comparable market analysis because I believe it’s my job to share my knowledge and provide you with actual market data to show you how I determine what price will cause your home to sell.  After you’ve hired a good agent and accepted an offer on your home, it’s time for the appraisal. The most common reason an appraisal is done is because a buyer’s mortgage lender sends one after the home has gone under contract to make sure the property is worth what the buyer is willing to pay for it. The appraisal can go one of two ways. “As long as we’re doing our job, you’ll be covered.” Here’s an example. Let’s say a buyer goes under contract for a home at $400,000 based on market data and comparable properties. It’s a great deal, and could be worth $415,000. When the appraisal comes back, however, it’s at $400,000. You could easily justify a higher price, so why the $400,000 valuation? It may have to do with the mindset of the appraiser. In some cases, there might be a higher number that comes in, but 90% of the time the appraisal comes in at value.  Here’s another example. We recently had a home right here go under contract at $525,000. The appraiser came out, conducted their appraisal, and I provided them with my data to justify the purchase price. They left, completed the report, sent it to us, and the appraisal came in at $475,000.  I was shocked, so I took a step back and decided to see if we could submit a rebuttal to show why our valuation is more accurate. I found a lot of inaccurate information throughout their appraisal, so I submitted the rebuttal. The lender saw enough holes in the report that they decided to order a second appraisal. A week later, the second appraiser comes out, they did their report, sent it over, and it came in at $525,000. That’s a $50,000 difference from the appraisal a week before, all because we did our research beforehand. At the end of the day, an appraisal is an opinion of value and it doesn’t make or break a deal. If you’re thinking about selling your home and you’d like to interview an agent like myself or you just have any questions about the Palm Beach County real estate market, don’t hesitate to give me a call or send me an email.

Looking to sell your Palm Beach County home? Click here for a free home value report Looking to buy a Palm Beach County home? Click here to search the MLS Today I have three different renovations that will provide the best possible return on investment when it comes time to sell your home: 1. Kitchen remodels. A kitchen remodel can dramatically upgrade the appeal of your home to potential buyers, as well as its value. The repairs can be as simple or as elaborate as you like, but a good rule of thumb is to keep the total price of the remodel under 10% of the value of your home in order to get a good outcome. A good outcome would be around an 85% return on investment. “Kitchen remodels bring the highest return.” 2. Bathroom remodel. A thorough bathroom remodeling project can cost thousands, but it’s worth it. It will pay for itself and give you an additional 80% return as well. 3. Deck or patio upgrades. These can cost anywhere from a few hundred to tens of thousands of dollars, depending on the size and upgrade. You can expect around an 80% return for this kind of project as well. These are just a few of the most common areas where you can get a good return. However, every home is different. To get an idea of what your home is worth in this market with and without renovations, don’t hesitate to give me a call or send me an email. I would love to hear from you and give you a hand.

Looking to sell your Palm Beach County home? Click here for a free home value report Looking to buy a Palm Beach County home? Click here to search the MLS Buying your first home is a very exciting process, but it can also be very stressful. Before you get started, there are three tips I’d like to share that can help prevent issues as you move forward. Know what you can afford. Many first-time homebuyers only consider their mortgage when deciding on their budget. They forget about closing costs, taxes, insurance, and the ongoing maintenance that comes from owning a home. When you rent, you can call your landlord and ask to have maintenance done for you. But when you own a home, you are your own landlord, so these maintenance costs are your own responsibility.“Don’t forget about the closing costs, taxes, insurance, and the ongoing maintenance that comes from owning a home.” Choose your lender wisely. Choosing a lender isn’t something you should base solely on who offers the lowest interest rate. Work with a lending professional who is competent, will offer advice on improving your credit, and who will request and collect a list of documents they need to get you pre-approved. This documentation ensures your pre-approval is legitimate. You don’t want to go along with the process only to find out that your loan has been denied because your lender didn’t do the extra work up front.  Don’t overlook the details. Many details go into buying a home and missing any of them could be a costly mistake. For example, I always advise buyers to get a professional inspection. This will help alert you to any potential issues before you seal the deal. Another thing to pay close attention to is the contract. Your agent should help you review and understand any of the fine print. If you have any other questions, would like more information, or are ready to get started in your home search, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Looking to sell your Palm Beach County home? Click here for a free home value report Looking to buy a Palm Beach County home? Click here to search the MLS Today we have a brief recap of the real estate market in 2017 and a few very important points to be aware of as we move through the first quarter of 2018. Let’s start with last year. We started the year with an average sale price of $340,000 and throughout the year, we saw more and more homes sell each quarter as well as a steady increase in home price. The year came to an end with a total of 31,000 homes sold at an average sale price of $382,000, a 12% increase from the beginning of the year. As we move into 2018, there are a few things you should know about the current real estate market in Palm Beach County. 1. Housing inventory remains extremely tight. Since the first quarter of 2017, the inventory has decreased by 2% in our market. With fewer homes on the market, it’s easier to get your home sold for the highest price possible. That’s part of the reason we’ve seen such a large jump in the average sale price.2. Buyers are increasingly optimistic. Despite the tight inventory, homebuyers are increasingly optimistic and continue to look for homes. Some of this has to do with the recent growth in income and job stability. Loosening lending standards are also making many homebuyers eager to take advantage of current mortgage rates, which slipped under 4% recently. “It’s the perfect time to get in the real estate market.” 3. The new tax reform bill will impact the market. The federal government recently passed the Tax Cuts and Jobs Act, which majorly overhauled our tax code. While it’s unclear how this will affect the real estate market as a whole, there are several changes that do not favor home sellers.  As a result of the changes made to the tax code, the National Association of Realtors now projects slower growth for home prices in 2018, with an appreciation rate of 1% to 3%. By doubling the standard deduction, Congress has significantly reduced the value of mortgage interest and property deductions as tax incentives for homeownership. On the bright side, no changes were made in the rules surrounding capital gains for home sales, which is good news for home sellers. When you put all three of these trends together, two big conclusions emerge. First, now is a very favorable moment for home sellers, thanks to the shortage in the market, the many eager buyers, and the high and rising prices. On the other hand, higher cost, higher tax areas will likely see prices decline as the result of new restrictions on mortgage interest and state and local taxes. If you are looking to take advantage of the present moment to sell your home, please reach out by giving us a call or sending us an email. We look forward to hearing from you soon.

Looking to sell your Palm Beach County home? Click here for a free home value report Looking to buy a Palm Beach County home? Click here to search the MLS Something we’ve learned over the last few years is that the holidays are a great time of year to sell your home. Many agents like to take this time of the year off, but we don’t. That isn’t to say we don’t enjoy time with our friends and families. Rather, we simply owe it to our clients to keep working as hard as it can. If you’re thinking of listing your property, here are a few reasons to do so during the holidays: “The holidays are a great time of year to sell your home.” Less competition. People who aren’t serious about selling their homes aren’t going to do so during the holiday season. As a seller, this will help your home stand out because buyers have fewer to choose from. Homes show well during the holidays. Lights, decorations, and other signs of holiday cheer all increase the success rate of a home showing. Fewer casual buyers. Similarly to the first point, buyers looking for homes at this time of year are doing so because they are serious. Although there are fewer homes for sale during the holidays, there aren’t fewer buyers. Relocation buyers are also very active during this time of year. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to go over a situation that is common among my clients. Many people I work with wonder how they can deal with the issue of buying and selling at the same time. There are actually a few different options for people in this kind of situation. The first and least effective option is to go out and find your next home without already having yours under contract. Writing an offer on a home that is contingent on the sale of your house before you have a buyer lined up is something I don’t really recommend. Then there’s the second option, which is to list your current property, find a buyer, come to an agreement, go under contract, and set a closing date. After that, you can go out and find your next house. When you’ve found the right property, you will write a contingent offer. The difference with this second option is that you can let the seller of your next home know that you already have a qualified buyer lined up. This way, they can feel assured your deal isn’t going to take forever or fall through. “No matter which route you take, the important thing is that you’re represented by someone who can guide you through the process.” This option is much stronger than the previous. You should always remember that contingent offers are weak until they’re under contract. Next, you could go the route of a leaseback or rent-back. With this option, you go under contract on your current property and then rent it back from the buyer while searching for your next home. If all parties agree, this can be a good option. Finally, there is the option of a short-term rental. Utilizing this route will be a good way for you to be sure you like the area before you commit to a long-term residence. By renting for three to six months, you can get a feel for whether you truly want to buy in a given area. No matter which route you take, the important thing is that you’re represented. Going through this process may be too overwhelming to tackle alone. As your Palm Beach County real estate agent, I would love to help by guiding you through whichever option is best for your circumstances. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today we’re going to discuss a topic that may sound a little boring, but it’s actually very important. The Federal Reserve just announced that they’re going to start rolling back the balance sheet. This may not sound exciting, but it’s a very big deal. When the financial crisis hit a decade ago, the Federal Reserve needed to take emergency measures. They bought up various assets totaling about $3.5 trillion in order to inject some money into the economy. This is an enormous sum that made up almost 25% of the US economy at that time. This money helped stabilize the nation’s markets. But now, the Federal Reserve is confident that our economy has improved enough for them to slowly start taking back some of that money.This is exactly what they just announced. As you can imagine, this is going to have a massive impact throughout our economy and in the real estate industry. “If you’re thinking of buying or selling, don’t wait.” There’s going to be upward pressure on mortgage interest rates, which were previously staying fairly low. The bottom line is that if you’re thinking of buying a home, you need to realize that these recent actions will eventually make it more expensive for you to do so. This is because you’re going to be paying more in interest. If you’re looking to sell, you also need to understand that there will eventually be fewer interested buyers. This isn’t going to happen overnight. For now, they’re only rolling back the balance sheet by about $10 billion a month. This sounds a lot, but it is just a drop in the total $4.5 trillion. If you’re thinking of buying or selling, don’t wait. Acting right now is crucial to staying ahead of this change and taking advantage of our currently strong market. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why can’t you trust Zillow’s Zestimates to give your home an accurate valuation? Because Zestimates are often inaccurate and can cause tension between the buyer and the seller. Zillow’s own CEO stated that the Zestimate’s error rate is about 8%. If you apply that 8% error rate to the average home value in Palm Beach County, it equates to $30,000 plus or minus. Zillow understands this inaccuracy, and they’re now offering $1 million to anyone who helps them create a more accurate algorithm to provide estimated values. “Relying on a Zestimate can cost you up to $30,000 in Palm Beach County.” Don’t wait for this to happen to get an accurate valuation of your home or know what you should be paying for a home that’s on the market. Instead, call a real estate professional such as myself to help you. If you’re interested in a free home value report or you have any other real estate questions, give us a call or send us an email. We’d be glad to help you.