real estate market

Should You Buy Your New House Before Your Last One Sells?

November 11, 2021 By Deborah Ward

It used to be a moot question. When the real estate market was super hot there was no question about whether you should buy your new home while still selling your current one. You’d lose the new one and the old one would sell likety-split anyway. Today it’s not such an easy question to answer, even though the market value is trending upward.

Sell first?

So today do you sell your old home first? Or do you buy and then sell? It’s a good question and the answer depends on a few different things. One is you, the seller/buyer and whether you fall into one of two categories: someone who has to know where you’re going before you sell or someone who has to know you can sell before you buy.

Some things to keep in mind

First, those who are able to make an offer without the contractual out of selling their current property are favored over those who make offers contingent on selling their home.

If it’s a buyer’s market, you are at a disadvantage trying to sell, but at an advantage in looking for a new home since there are more to be seen. So selling first is probably a good idea.

In a seller’s market you could probably get away with listing while you look, just remember that there will be competition for the home you want to buy, so don’t offer on a new one unless you are sure yours is sold or just about sold.

Do your homework

Your best bet if you are going to take the chance and buy and sell simultaneously, then do some homework first. Start by talking to real estate agents to get an idea of market value of your home. Then talk to your mortgage company and find out two things: first, if you qualify for a loan for a new property, second, if you can get that mortgage before your current home is sold. Then be prepared to have a time period of paying both mortgage payments. If you can’t stomach that thought, sell first, then look and buy.

Look at the options

If you sell first, then buy, there are a few things you can do as well. First, look at the options for temporary housing while you look for your new home and close on it. Don’t rely on the assumption that the buyers of your current home will allow you to rent back from them. Then enjoy the experience of buying and having the negotiating edge!

Is It Time For Millennials To Start Buying Florida Real Estate?

November 11, 2021 By Deborah Ward

The real estate market has been slow in recovering from the bubble burst, and one reason for this is because one segment of society has been rather slow to jump back into home ownership: millennials. But is it time now for millennials to start buying Florida real estate?

Fear of another bust

One reason millennials have been staying out of the real estate buying market is fear. They saw what happened to their parents and it had many shying away. Another is the ability to be mobile for employment. So many have been renting. The problem with that now is the rental market is pricing them out. Apartment and home rents are rising. Once having a mortgage becomes more affordable than renting, the logical conclusion for many will be to buy.

Confidence in the housing market

Another reason that will draw them in is a rising confidence in the housing market. It’s been 8 years since the crash and while the market has been slow to recover, it is recovering. So much so that some places have moved from buyers markets to sellers markets. Florida isn’t quite there yet, but it’s strengthening.

Supply of homes will grow as well

Their parents, baby boomers and the older end of Generation X are now in empty nest syndrome and will sell their houses to downsize. On top of that mortgage rates are and have remained low, below 5%. Even though experts say rates will rise, the chance that a 30 year fixed rate mortgage will go above 5% is extremely low. Credit requirements to get those mortgages are relaxing a bit as well.

Florida has plenty of homes to be purchased and millennials may just be the ones to buy them.

Why You Have To Price Your Home Right Even In A Sellers Market

October 27, 2021 By Deborah Ward

The time has come to sell your home and you have heard that the real estate market in your area has turned around and you find yourself in a sellers market. Great! Now you can price your home right where you want and get your price, right? Well, not so fast. Pricing your home right is important in any market and a sellers’ market is no different.

Think back to when you bought your home

Would you have even looked at it had it been priced above what you thought it should be? Of course not. So why is it any different now that you are on the opposite side? You asked your Realtor to help you sell, so why would you go against their advice and price your home too high just because the advantage is a bit more on your side because of the market? No matter the market, an overpriced home won’t sell. The housing bubble burst put an end to that.

Pricing your home right is the most important part of getting it sold, hands down

Overpricing a piece of real estate keeps appropriate buyers from looking. Dropping the price after it’s been sitting means a stale listing that prospective buyers will pass over. Mostly because they will wonder what is wrong with it. The longer it sits, the lower you drop and then you find that the price you get is probably much lower than the price your Realtor originally suggested. So by being obstinate you cost yourself time and a lot of money.

Your home’s worth

You have to keep in mind that no matter what the market may be, buyer or seller, your home is only worth what people are willing to spend. Your home is only worth what the market will bear. You know what else? Pricing a bit below market price may even work to your advantage in a sellers’ market. In theory it may just mean that you can find yourself with multiple offers for your home. Bidding war anyone? A bidding war may just mean you get something above market price.

Your Realtor has the experience and knowledge to tell you what that is. Listen to him or her and you will be on your way to your next home before you know it.

Does It Still Make Sense To Buy Your Own Home?

October 27, 2021 By Deborah Ward

With the real estate market doing well, you’ve been thinking about whether it makes sense for you to buy your own home. Well, given that rent payments are now just about on par with or sometimes even higher than mortgage payments, it just may make sense. Here are some other reasons to seriously consider buying your own home.

First, is that rental payment each month

Being the same or higher is reason enough, but those rental payments don’t benefit you, they benefit your landlord. When the payment is rent, the landlord uses it to improve the property and pay his or her mortgage.

Yes, a mortgage payment includes things like property taxes and homeowner’s insurance, but each payment you make on a mortgage earns you value in your home. And that homeowner’s insurance payment? It provides you a lot more coverage than renter’s insurance.

So no matter how you look at it home ownership gives you a lot more bang for your buck.

Stability

Owning a home also provides you with stability and the ability to make your home yours. You aren’t living at the whims of a landlord, hikes in rent or having to move and find another home.

This is especially important if you have children. Stability in where they live, go to school and grow up is important. It’s also important that you can make your home yours. You can take out walls, paint whatever color you want and change it up whenever you want. Your landlord wouldn’t let you do that.

Appreciation in value

Of course, that appreciation in value is important too. Not only in the difference in what you own on your mortgage versus what you bought it for, but also in how the value of your home goes up. Despite the fall in values when the bubble burst, over the decades it takes to pay off a mortgage home values do tend to increase. While not usually as quickly as before the bubble burst, but it goes up over time.

So go ahead and think hard about buying. It will be the best decision you could make.