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Lack of Listings Slowing Down the Market

As the real estate market continues to move down the road to a complete recovery, we see home values and home sales increasing while distressed sales (foreclosures and short sales) continue to fall to their lowest points in years. There is no doubt that the housing market will continue to strengthen throughout 2018.

However, there is one thing that may cause the industry to tap the brakes: a lack of housing inventory!

Here’s what a few industry experts have to say about the current inventory crisis:

Lawrence Yun, Chief Economist for the National Association of Realtors

“Inventory coming onto the market during this year’s spring buying season…was not even close to being enough to satisfy demand, that is why home prices keep outpacing incomes and listings are going under contract in less than a month – and much faster – in many parts of the country.”

Sam Khater, Chief Economist for Freddie Mac

“While this spring’s sudden rise in mortgage rates [took] up a good chunk of the conversation, it’s the stubbornly low inventory levels in much of the country that are preventing sales from really taking off like they should… Most markets simply need a lot more new and existing supply to cool price growth and give buyers enough choices.”

Alexandra Lee, Housing Data Analyst for Trulia

This seasonal inventory jump wasn’t enough to offset the historical year-over-year downward trend that has continued over 14 consecutive quarters…Despite the second-quarter gain, inventory was down 5.3% from a year ago. Still, this represents an easing of the double-digit drops we’ve been seeing since the second quarter of 2017.”

4 Reasons Why We Are Not Heading Toward Another Housing Bubble

4 Reasons Why We Are Not Heading Toward Another Housing Bubble

 

With home prices continuing to appreciate above historic levels, some are concerned that we may be heading for another housing ‘boom & bust.’ It is important to remember, however, that today’s market is quite different than the bubble market of twelve years ago.

Here are four key metrics that will explain why:

  1. Home Prices
  2. Mortgage Standards
  3. Foreclosure Rates
  4. Housing Affordability

1. HOME PRICES

There is no doubt that home prices have reached 2006 levels in many markets across the country. However, after more than a decade, home prices should be much higher based on inflation alone.

Last week, CoreLogic reported that,

“The inflation-adjusted U.S. median sale price in June 2006 was $247,110 (or $199,899 in 2006 dollars), compared with $213,400 in March 2018.” (This is the latest data available.)

2. MORTGAGE STANDARDS

Many are concerned that lending institutions are again easing standards to a level that helped create the last housing bubble. However, there is proof that today’s standards are nowhere near as lenient as they were leading up to the crash.

The Urban Institute’s Housing Finance Policy Center issues a monthly index which,

“…measures the percentage of home purchase loans that are likely to default—that is, go unpaid for more than 90 days past their due date. A lower HCAI indicates that lenders are unwilling to tolerate defaults and are imposing tighter lending standards, making it harder to get a loan. A higher HCAI indicates that lenders are willing to tolerate defaults and are taking more risks, making it easier to get a loan.”

Their July Housing Credit Availability Index revealed:

“Significant space remains to safely expand the credit box. If the current default risk was doubled across all channels, risk would still be well within the pre-crisis standard of 12.5 percent from 2001 to 2003 for the whole mortgage market.”

3. FORECLOSURE RATES

A major cause of the housing crash last decade was the number of foreclosures that hit the market. They not only increased the supply of homes for sale but were also being sold at 20-50% discounts. Foreclosures helped drive down all home values.

Today, foreclosure numbers are lower than they were before the housing boom. Here are the number of consumers with new foreclosures according to the Federal Reserve’s most recent Household Debt and Credit Report:

  • 2003: 203,320 (earliest reported numbers)
  • 2009: 566,180 (at the valley of the crash)
  • Today: 76,480

Foreclosures today are less than 40% of what they were in 2003.

4. HOUSING AFFORDABILITY

Contrary to many headlines, home affordability is better now than it was prior to the last housing boom. In the same article referenced in #1, CoreLogic revealed that in the vast majority of markets, “the inflation-adjusted, principal-and-interest mortgage payments that homebuyers have committed to this year remain much lower than their pre-crisis peaks.”

They went on to explain:

“The main reason the typical mortgage payment remains well below record levels in most of the country is that the average mortgage rate back in June 2006, when the U.S. typical mortgage payment peaked, was about 6.7 percent, compared with an average mortgage rate of about 4.4 percent in March 2018.”

The “price” of a home may be higher, but the “cost” is still below historic norms.

Bottom Line

After using these four key housing metrics to compare today to last decade, we can see that the current market is not anything like that bubble market.

SOURCE

You DO NOT Need 20% Down to Buy Your Home NOW!

The Aspiring Home Buyers Profile from the National Association of Realtors (NAR) found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. The results of the survey show that the main reason why non-homeowners do not own their own homes is because they believe that they cannot afford them.

This brings us to two major misconceptions that we want to address today.

1. Down Payment

A recent survey by Laurel Road, the National Online Lender and FDIC-Insured Bank, revealed that consumers overestimate the down payment funds needed to qualify for a home loan.

According to the survey, 53% of Americans who plan to buy or have already bought a home admit to their concerns about their ability to afford a home in the current market. In addition, 46% are currently unfamiliar with alternative down payment options, and 46% of millennials do not feel confident that they could currently afford a 20% down payment.

What these people don’t realize, however, is that there are many loans written with down payments of 3% or less.

Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

2. FICO®Scores

An Ipsos survey revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores for approved conventional and FHA mortgages are much lower.

The average conventional loan closed in May had a credit score of 753, while FHA mortgages closed with an average score of 676. The average across all loans closed in May was 724. The chart below shows the distribution of FICO® Scores for all loans approved in May.

You DO NOT Need 20% Down to Buy Your Home NOW! | MyKCM

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but you are not sure if you are ‘able’ to, let’s sit down to help you understand your true options today.

 

GOT QUESTIONS?

Advice on Prepping Your Home for a Successful Open House

Advice on Prepping Your Home for a Successful Open House

Another long, cold Canadian winter is slowly giving way to bright green, warmer weather. That’s very good news if you’re planning to put your home on the market. Spring weather is ideal for staging your home and preparing for an open house that’ll have prospective buyers from far and wide flocking to your door. But it’ll take some work and a determination to keep things clean and orderly while your property is on the market. It can be easy to overlook some of the “must do’s” of an open house these days, with online marketing and personal websites getting the word out about your home. You still need to get buyers to engage with your home, and that means covering all the basics when you hold your open house, according to the Canadian Real Estate Association. 

Legwork

There’s nothing wrong with a little self-promotion when it comes to planning an open house. Actually, there’s nothing wrong with a lot of self-promotion. Sometimes, the old-fashioned approach is the best way to get the word out, so make up a few dozen flyers with photos of your house (nice and clean, of course) and as much detail as possible, in terms of square footage, number of rooms, bathrooms, etc. Include your website (or your realtor’s) and contact information. Hand them out to neighbors on both sides of your house and across the street. They may only be interested in comparing their place to yours, but they may also tell someone they know at work or in their family, someone who’s in the market for a new house, about how great your house is, their favorite features, and how great it’d be to live near each other. It can’t hurt.

Bang the drum online

The internet and social media are indispensable online tools for marketing a house these days. Post a gallery of images both inside and outside your house. You want to emphasize space, flow, and light, so be careful about staging any pictures you’ll be posting. Tweet early and often about your open house and start a detailed conversation among friends and family on Facebook. Before you know it, your home will be plastered all over the place, and people you’ve never met will be asking you questions. 

Signage

Believe it or not, signage still gets people’s attention and can influence behavior. Let’s face it, people love to rubberneck while they’re driving, and a sign announcing that an attractive local property is on the market can’t help but gain notice. Attach signs to light posts, fencing, and any other likely landmark that isn’t on someone else’s property. Don’t forget to give good directions and a street address or a website or email address to make it as easy as possible for passersby to find your home.

Pet damage

It’s a quirk of real estate that even people who own and love pets act as though a telltale urine stain or clump of hair means a dog or cat has all but destroyed your home. Consider having your carpeting professionally deep cleaned and air the place out by opening windows and lighting scented candles if lingering pet smells are a problem. Try a water and vinegar solution as a spray or stain remover. Vinegar is a powerful cleaner, and it’s remarkably effective at getting rid of bad smells.

An open house is your great opportunity to make a powerful sensory impact on prospective buyers. Be careful not to overdo it with personal photos and objects that might distract visitors from envisioning your space as theirs, which is the true aim of an open house. Take every opportunity to make it easy for buyers to fall in love with your home.

 

Courtesy of Pixabay

Top 5 Reasons You Shouldn’t FSBO

 

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

According to the 2017 Profile of Home Buyers and Sellers from NAR, last year 95% of buyers search online for a home. That is in comparison to only 15% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

  • 49% on the internet
  • 31% from a Real Estate Agent
  • 7% from a yard sign
  • 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale by Owner:

  • The buyer who wants the best deal possible
  • The buyer’s agent who solely represents the best interest of the buyer
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will almost always find some problems with the house
  • The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

study by Collateral Analytics revealed that FSBOs don’t actually save anything, and in some cases, may be costing themselves more, by not listing with an agent. One of the main reasons for the price difference at the time of sale is:

“Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.”

If more buyers see a home, the greater the chances are that there could be a bidding war for the property. The study showed that the difference in price between comparable homes of size and location is currently at an average of 6% this year.

Why would you choose to list on your own and manage the entire transaction when you can hire an agent and not have to pay anything more?

Bottom Line

Before you decide to take on the challenges of selling your house on your own, let’s get together to discuss your needs.

 

Selling Your House on Your Own Could Cost You

In this extremely hot real estate market, some homeowners might consider selling their homes on their own which is known as a For Sale by Owner (FSBO). They rationalize that they don’t need a real estate agent and believe that they can save the fee for the services a real estate agent offers.

However, a study by Collateral Analytics reveals that FSBOs don’t actually save anything, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.” (emphasis added)

Why would FSBOs net less money than if they had used an agent?

The study makes several suggestions:

  • “There could be systematic bias on the buyer side as well. FSBO sales might attract more strategic buyers than MLS sales, particularly buyers who rationalize lower-priced bids with the logic that the seller is “saving” a traditional commission. Such buyers might specifically search for and target sellers who are not getting representational assistance from agents.” In other words, ‘bargain lookers’ might shop FSBOs more often.
  • “Experienced agents are experts at ‘staging’ homes for sale” which could bring more money for the home.
  • “Properties listed with a broker that is a member of the local MLS will be listed online with all other participating broker websites, marketing the home to a much larger buyer population. And those MLS properties generally offer compensation to agents who represent buyers, incentivizing them to show and sell the property and again potentially enlarging the buyer pool.” If more buyers see a home, the greater the chances are that there could be a bidding war for the property.

Conclusions from the study:

  1. FSBOs achieve prices significantly lower than those from similar properties sold by Realtors using the MLS.
  2. The data suggests the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

As Dave Ramsey, America’s trusted voice on money, explains:

 

GOT QUESTIONS?

Don’t Wait to Sell Your House! Buyers Are Out Now

Recently released data from the National Association of Realtors (NAR) suggests that a now is a great time to sell your home. The concept of ‘supply & demand’ reveals that the best price for an item is realized when the supply of that item is low and the demand for that item is high.

Let’s see how this applies to the current residential real estate market.

SUPPLY

It is no secret that the supply of homes for sale has been far below the number needed to sustain a normal market for over a year at this point. A normal market requires six months of housing inventory to meet the demand. The latest report from NAR revealed that there is currently only a 3.6-month supply of houses on the market.

Supply is currently very low!

DEMAND

A report that was just released tells us that demand is very strong. The most recent Foot Traffic Report (which sheds light on the number of buyers who are actually out looking at homes) disclosed that “foot traffic grew 10.5 points to 52.4 in March as the new season approaches.”

Demand is currently very high!

Bottom Line

Waiting to sell will only increase the competition between you and all of the other sellers putting their houses on the market later this summer. If you are debating whether or not to list your home, let’s get together to discuss the conditions in our market.

GOT QUESTIONS?

Renters Under 50 Want to Buy a Home!

Every year, the New York Federal Reserve publishes the results of their Survey of Consumer Expectations (SCE). Each survey covers a wide range of topics including inflation, labor market, household finance, credit access and housing.

One of the many questions asked in the housing section of the survey was:

Assuming you had the financial resources to do so, would you like to OWN instead of RENT your primary residence?

Over three-quarters of respondents under the age of 50 said that they would prefer to own their home, rather than rent. While only 52.6% of those over 50 would prefer to own. The full breakdown can be found in the chart below.

Renters Under 50 Want to Buy a Home! | MyKCM

When renters were asked what the average probability of owning a primary residence at some point in their future was, 66.4% of those under 50 believed that they would eventually own their home, while only 23% of those over 50 did.

Renters Under 50 Want to Buy a Home! | MyKCM

Bottom Line

Many had wondered if young Americans had lost their desire to own a home, but for those renting now, that dream is still alive.

 

GOT QUESTIONS?

Top Questions to ask a Real Estate Broker

 

It is easy to fall in love with what seems like the perfect home, only to end up with major financial headaches down the road. While immediate issues such as water pressure are important, it’s key to ask a real estate broker questions to help prepare for the future. Here are some top questions everyone should keep in mind before buying a home.

Pricing

Buyers should set a budget upfront and see which homes fall in the range. A real estate broker may also be connected with mortgage brokers who can pre-qualify buyers. This way, a loan is already in place if needed.

Ask what the offering price of the home is based on. Some homes may be extremely low for a reason. Others may have a higher price due to a recent addition or home upgrade such as a modernized kitchen. Buyers should base their offer on what other homes in the area have sold for, not the asking price.

See how many offers the home has received. Homes with multiple offers sell quickly, so a buyer may need to make a strong offer for something they are set on. It also helps to find out how long a home has been on the market. The longer a home is up for sale, the more likely a buyer could get a discount.

Location

Location is key, especially if a buyer eventually plans to sell the home they pick. A good real estate broker will be able to provide some insight into if the area is growing or declining. One area used to be prone to foreclosures could be the next hottest market.

Check to see which school district the home falls under, and review the ratings of local schools in the area. Families should also see how long it takes to commute to school or to work. Those who want to live closer to a city’s bustling social scene may have to sacrifice time sitting in the car during rush hour.

Looking to buy a new car along with the house? Consider buying a car that is the appropriate size and runs on alternative fuels. Many real estate brokers say buyers end up with vehicles that are not the appropriate size or that they cannot afford.

Review any nuisance factors. Living next to a restaurant can be a nice convenience during the day but a headache at night with extra traffic. Also, highway noise may keep a light sleeper awake.

Home Condition

A broker can help buyers estimate repair costs for major projects. Ask about the roof’s age, as newer roofs can last for decades. If a roof needs repair, it’s important to determine if the buyer or the seller will end up paying.

Check to see if the walls and attic have insulation, especially if the home is located in a colder climate. The U.S. Department of Energy previously recommended an upgrade if a home has insulation with a thickness of less than 11 inches. And a proper upgrade can help a family save up to $600 a year on energy costs.

Review the home’s plumbing history with the real estate broker. Ask if the sewer line has experienced any issues, as well as the plumbing. Burst pipes are one of the top homeowners insurance claims, so homebuyers should make sure exposed pipes are protected.

Previous owners should disclose any water damage, but an inspector can review the home in case. Long-term water damage can lead to mold and rot wooden beams. Both are dangerous for people’s health and expensive to fix.

Five Quick Road Trips from Deltona, FL

Road trips are a classic American pastime. You are able to explore the country with friends and family while making lifetime memories. One of the top places to road trip to is the “Sunshine State” known as Florida. Although, Florida is a great state to travel to, it is important to note the weather.In the state, few businesses will be open for inclement weather. Be sure to be always prepared for the worst since weather in Florida is unpredictable. 

 

Florida has endless entertainment, and Deltona is perfectly located to take advantage of the more well-known attractions of the state as well as local hidden gems.

 

Here are 5 cities that are perfect for short road trips from Deltona and some ideas for what to do on your staycation.

Orlando - 30 Miles, about 30 mins

Orlando is known the world over for its theme parks, nightlife, and its incredibly lively local culture. Being 30 minutes away, this trip is very short, so don’t pack the car snacks just yet.

 

For kids, and indeed the whole family, there is a plethora of theme parks like Universal Studios or Walt Disney World. If you want to spend a little less money, consider checking out wax museum Madame Tussauds, the Crayola museum, or the famous Medieval Times Tournament.

 

There is plenty of entertainment for adults as well, including tours of the Kennedy Space Center, boat tours of Everglades National Park, and a museum dedicated to the Titanic disaster.

Kissimmee - 52 Miles, about 1 hour

Kissimmee is instantly recognizable by its unique name, and it has an interesting and unique local flair. This trip is only about an hour away from Deltona.

 

Kids can check out Gatorland, dedicated to conservation of alligators, and the whole family can take a ride in an Airboat around the wetlands and marshes of Boggy Creek.

 

There is a military history museum in town, as well as a monument to Pearl Harbor to look for while perusing the Old Town section of Kissimmee. Your partner might ask you to kiss-a-me after taking them here!

Tampa - 114 Miles, about 2 hours

Tampa is a little bit further from Deltona, so get ready for a short journey with some snacks and water. For people who love animals, Tampa is the place to be.

 

Check out Busch Gardens for a very unique Zoo-Theme Park pairing, with over 12,000 animals as well as food, games, and rides. The Florida Aquarium is a beautiful place to spend some time, but you might get lost in learning about 20,000 different types of aquatic animals.

 

With museums all over town, a 60 acre zoo, boat tours and more, Tampa will keep you captivated all day long.

Jacksonville - 115 Miles, about 2 hours

Jacksonville is known for its nearby beaches, and the city boasts a few of its own cultural attractions. Jacksonville is just about as far as Tampa from Deltona, a 2 hour journey.

 

Check out Amelia Island, a free natural area 30 miles north of the city with 13 miles of beaches, or Atlantic Beach and Ponte Vedra beach which are a little closer. In Jacksonville itself, go to the downtown area to explore the Riverside Arts Market or the beautiful garden-oriented Cummer Museum of Art.

Saint Petersburg - 136 Miles, about 2 hours 30 mins

Saint Petersburg is the last destination on this list, and it is also the furthest at 2 and a half hours away from Deltona - make some playlists, and leave early.

 

The city has things for kids to do, but they are mainly based around parks and natural areas. The Sunken Gardens are a gorgeous place to take your kids to appreciate over 50,000 flowers and fauna along a waterfall and grove-lined path.

 

The city’s major claim to fame among art lovers is its Salvador Dali Museum, designed to be a tribute to one of the greatest surrealist painters of all time, and there are other art museums and creative spaces to intrigue your creative side throughout St Petersbu

Setting the Price

The price is the first thing buyers notice about your property. If you set your price too high, then the chance of alienating buyers is higher. You want your house to be taken seriously, and the asking price reflects how serious you are about selling your home.

Several factors will contribute to your final decision. First, you should compare your house to others that are in the market. If you use an agent, he/she will provide you with a CMA (Comparative Market Analysis). The CMA will reflect the following:

  • houses in your price range and area that were sold within the last half-year
  • asking and selling prices of houses
  • current inventory of houses on the market
  • features of each house on the market

From the CMA, you will learn the difference between the asking price and selling price for all homes sold, the condition of the market, and other houses comparable to yours.

Also, try to find out what types of houses are selling and see if it applies to your area. Buyers follow trends, and these trends can help you set your price.

Always be realistic. Understand and set your price to reflect the current market situation.

Top 5 Family Friendly Things to Do in Daytona Beach

 

 

Sounds of race cars zipping around the track and images of tranquil sandy beaches may seem to be at odds anywhere else but Daytona Beach. Here, visitors will find the raceway and beautiful oceanfront as not only a fact of life, but the perfect, if not unique, combination of fun. Daytona Beach offers endless opportunities for things to do that can only be found in this side of the Sunshine State.

1. Take a Tour of Angell & Phelps Chocolate Factory

Since 1925, Angell & Phelps have been a generational family favorite in Daytona Beach. This chocolate confectionery crafts high-quality, handmade fine chocolates and offers free samples with every free, guided tour. The factory offers ADA accessibility for wheelchair use and strollers. Each 20-minute tour invites guests to view the behind the scenes operations of chocolate making. Tours run once every hour between 10:00 AM and 4:00 PM throughout the week and including Saturday. On Sunday, tours are open between noon and 5:00 PM. Small groups are welcome to arrive at any of the designated tour times, however it is encouraged for groups larger than 15 to call ahead to schedule a reservation.   

2. Jump into the Daytona Lagoon

This one-stop destination for family fun packs a water park, arcade, and an 18-hole mini golf course all into one place. For those looking to stay dry, Daytona Lagoons MEGA arcade offers over 70 immersive games with select games offering the opportunity to earn points to be redeemed for major prizes. The Lagoon also offers indoor laser tag, a rock climbing wall, and go-karting. The water park offers a variety of open and enclosed slides for older riders and an activity park with water options for smaller guests. Daytona Lagoon is located in the heart of Daytona Beach in convenient proximity to a variety of hotels and resorts. Boasting the most attraction activities in Daytona Beach, Daytona Lagoon offers a huge range of entertainment options to be enjoyed by all ages.

3. Relax at Daytona Beach

Both the shore and the pier are bustling with crowds and excitement. The beach is known for its hard-packed sand suitable for driving cars onto the beach. Although the cars driving along the shore have raised concerns by parents and sunbathers alike, the beach also features a mile-long pedestrian only zone along the pier. To deter drivers, walking on the beach is free but driving on the beach will cost you a fee of five dollars. The 23-mile long stretch of sand and surf is universally enjoyed by all visitors. Alongside umbrellas and beach chairs perfect for lounging, guests are invited to rent all-terrain vehicles, bicycles, and golf carts to zip around the coastline.

4. Sign Up for a Stand-Up Paddleboard Tour

Ready to get up close and personal with Daytona Beach? Sign up for a stand-up paddleboard group tour to spot manatees and dolphins alongside a trusted tour guide. A truly unique experience, guests that embark on the two-hour guided tour will paddle along the ocean surf wading through calmer water to greet groups of friendly dolphins and manatees. New to paddle boarding? You wont be alone. Most guests signing up for the tour are far from pros. Each tour begins with a demonstration on dry land before moving on to a lesson on the dos and don’ts of paddle boarding. The tour takes visitors on a scenic adventure encompassing beautiful coastline sights. Points of interest along the tour include a nearby island, bridges, canals, and a Yacht Club. The selected waters traveled by the group include marine life hot spots with high concentration of manatee and dolphin activity to increase the chances of greeting one of these sought after marine mammals. Be sure to make reservations in advance as this attraction fills up quickly!

5. Visit the Daytona International Speedway

Since its opening in 1959, the Daytona International Speedway has been attracting racing fans from across the country. The Speedway is home to the Daytona 500 and the Coke Zero 400 held each year. The Daytona 500 is regarded as one of the most important races in NASCAR being the first race of the Monster Energy NASCAR Cup Series. The raceway also hosts an annual country music festival and smaller, 250-mile race near the Fourth of July. If youre not in town for the Speedways two premiere events, stop by the track on your visit to Daytona and take a ride in a race car! The Richard Petty Driving Experience allows guests visiting the raceway to ride shotgun inside a real NASCAR race car for three exhilarating laps around the track! Your experience package includes a meet-and-greet with an instructor including a safety lesson before suiting up in head-to-toe professional gear. Buckle up and prepare to zip around the track at speeds topping 145 mph!

Tips will help you with buying a new home

You are finally ready to buy a new home -- congratulations! Buying a new is a huge step and can provide you security for years to come. Of course, it’s a big investment, so you want to be smart about it. If you are feeling overwhelmed by the commitment and cost that come with home buying, you’re not alone. Anxiety over buyer’s remorse is real. However, you can help prevent that stress by adequately preparing for this venture. Use the following tips and resources and you’ll be happy with your experience.

 

The Home Inspection

 

If you want to avoid buying a lemon, you want a home inspection that will catch any and all flaws in the home. It doesn’t matter if the house is new, a historic treasure, or a basic 30-year-old home on the market, you’ll definitely need an inspection. When finding an inspector, don’t just settle with one your real estate agent recommends. Ask friends and family if they have someone whose work they were happy with and cross-reference with the American Society of Home Inspectors. You’ll be grateful for putting in that bit of extra work when you end up buying a house free of serious flaws that will cost you big down the road.

 

Don’t Be Afraid to Negotiate

 

Most transactions we make in our day-to-day lives involve fixed prices. But when it comes to buying a home, you get to use your negotiating skills.  Don’t be afraid to ask the seller how flexible they are willing to be on the price. While you don’t have to offer exactly what’s being asked, you definitely don’t want to offend them with something that is way too lowball.

 

While negotiating your purchase price, don’t forget you can save money by asking for credits to repair or replace things in the home that your inspector says needs fixing. There’s also room to negotiate on closing costs. Talk with your real estate agent about where they think you can save money.

 

The Final Walk-Through

 

There’s no such thing as too careful when it comes to making such a huge purchase. Before you close, you want to be sure this is the house for you. A final walk-through to see the property sans carpets and furniture can give you a better idea of what you are getting yourself into. This way, you can avoid unpleasant surprises after you’ve gotten in too deep. 

 

Leave Nothing Behind

 

Once you’ve closed and you’re ready to move into your new home, you want to make sure you are leaving a clean slate behind in your old home or apartment. Not only will this help you recover your deposit, it’s simply the polite thing to do. If you hire a professional cleaner, you can turn in the receipt to your landlord as proof. Also, professional house cleaning can be pretty affordable. According to HomeAdvisor, the average price for a maid service to clean a house interior runs from $115 to $205. If you like the work your house cleaner does, you can use them in the future to make your new home clean and bright, as well.

 

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Buying your a new home is a big investment, so you want it to be in the right direction. Rushing into a purchase can lead to buyer’s remorse. To avoid that, take it slow and be cautious. Use a licensed home inspector with references you trust. Don’t be afraid to break out your negotiating skills to work down the price. Before you commit to buying, do a final walk-through to be sure it’s the home for you. Finally, be sure to leave your old place in great shape by paying for a professional cleaning that can help you recoup your deposit.

Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised!

CoreLogic’s latest Equity Report revealed that 675,000 US homeowners regained positive equity in their homes in 2017. This is great news for the country, as 95.1% of all mortgaged properties are now in a positive equity situation.

U.S homeowners with mortgages (roughly 63% of all the properties) have seen their equity increase by a total of $908.4 billion since the fourth quarter 2016, an increase of 12.2%, year over year.”

Price Appreciation = Good News for Homeowners

Frank Nothaft, CoreLogic’s Chief Economist, explains:

Home-price growth has been the primary driver of home-equity wealth creation. The CoreLogic Home Price Index grew 6.2 percent during 2017. The largest calendar-year increase since 2013. Likewise, the average growth in home equity was more than $15,000 during 2017, the most in four years.”

He also believes this is a great sign for the market in 2018, saying:

“Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years. 

This is great news for homeowners! But, do they realize that their equity position has changed?

A study by Fannie Mae suggests that many homeowners are not aware that they have regained equity in their homes as their investment has increased in value. For example, their study showed that 23% of Americans still believe their home is in a negative equity position when, in actuality, CoreLogic’s report shows that only 4.9% of homes are in that position (down from 6.3% in Q4 2016).

The study also revealed that only 37% of Americans believe that they have “significant equity” (greater than 20%) when in actuality, 83% do!

Are You Aware of How Much Equity You Have in Your Home? You May Be Surprised! | MyKCM

This means that 46% of Americans with a mortgage fail to realize the opportune situation they are in. With a sizeable equity position, many homeowners could easily move into a house (either larger or smaller) that better meets their current needs.

Fannie Mae spoke out on this issue in their report:

“Homeowners who underestimate their homes’ values not only underestimate their home equity, they also likely underestimate 1) how large a down payment they could make with their home equity, 2) their chances of qualifying for mortgages, and, therefore, 3) their opportunities for selling their current homes and for buying different homes.”

Bottom Line

If you are one of the many Americans who is unsure of how much equity you have built in your home, don’t let that be the reason you fail to move on to your dream home in 2018! Let’s get together to evaluate your situation!

Florida: Your Home Away From Home

 

Photo By: Pixabay

 

Florida: Your Home Away From Home

 

Maybe you’ve finally retired, and you’re looking for the perfect place to get away to enjoy that sweet freedom. Perhaps retirement is in the near future, or maybe you’re just on the hunt for your next big investment. Whatever your situation may be, Florida just might be your answer. Are you ready to make the leap? What are your options? Read on to find out.

 

Look at Your Finances

 

Trying to figure out if you are ready to buy a vacation home is probably one of the top questions you’re asking yourself. Start by considering how affordable it is. On a list of the top 15 most affordable beach towns to purchase a vacation home, Florida dominates seven of those spots, making it the prime spot to buy. Not so fast. It might be a bargain, but you need to take a moment to seriously think over your current financial state and consider every single expense. There’s the down payment, closing costs, utilities, insurance, and maintenance. If you plan to rent the property out when it isn’t in use, you’ll need to factor in a marketing plan to attract buyers, as well as repairs and upkeep.

 

Think Realistically

 

Another key piece to consider is how much use you’ll get out of your vacation home. While a vacation home can certainly be a source of income, how often can you visit? Is it close enough that you can easily get there? It’s easy to say that you’ll use it five or six times a year, but when you combine work, family, and life in general, you might find that you don’t have as much free time as you thought. However, if you are already spending weeks or more in Florida and have practically become a local, investing in a vacation home might be the best route to give you the most bang for your buck. Keep in mind, if you plan on renting it out, you need to factor in the usage here too. The good news is that Florida is one of the top vacation destinations, and the reasons you are attracted to it will be the same ones that bring renters in.

 

All Vacation Homes Aren’t Created Equal

 

While you can buy a second home, you should know that there are other options when it comes to vacation homes such as a condo or a townhome. With a condo, you own a single unit within the building and are responsible for maintenance only through your association fees. With a townhome, you own the structure itself as well as the unit, and it is common for there to be a shared wall between two neighbors. In this case, you are responsible for the maintenance both inside and outside the residence. Both condominiums and townhomes typically have communal areas, such as a pool and gym that is maintained by the property manager. Florida is sunny and hot, so having a pool that you don’t have to manage or clean is a huge bonus. With a house that you turn into a vacation home, you are essentially the property manager unless you have it in your budget to hire one, along with a housekeeper, landscaper, etc.

 

Florida Has So Much to Offer

 

If you are still on the fence as far as Florida being the prime location for your second home, the Huffington Post offers no shortage of reasons why Florida is great. The weather is perfect all year long, and the various cultures and landscapes within a few minutes to a couple hours make it a vacation within a vacation. So, if you are considering purchasing a vacation home, Florida should be number one on your list. Before you jump right in, go over your finances, make sure all your questions are answered, and weigh all your options. Your second home is calling!

 

FOR RENT: 101 BENT OAK DR #79



101 Bent Oak Dr, Unit #79
Daytona Beach, FL 32114
MLS#: V4722147 ( 1037165 for Daytona Board MLS)
MONTHLY LEASE: $1,175


Cozy 1 bedroom, 1 bath condo with 861 suare feet located in a quiet community. Community features include an in-ground concrete pool and a club house. Enjoy the quiet summer nights on your balcony while being located nearby shopping, schools, and local night life! Don't wait, this rental wont last long!


PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS!

FOR SALE: 11 RIO PINAR TRAIL



11 RIO PINAR TRAIL
ORMOND BEACH, FL 32714

MLS#: V4721936      
LIST PRICE: $204,900


This 3 bedroom, 2 bath 1834 square feet home has great bones and a good location in a quiet neighborhood, just needs a little bit of TLC! Seated in a corner lot with plenty of room for the whole family. This home would make a great fixer-upper for a new family or a potential investor. Don't wait, schedule a showing today!

PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS!


 

3062 Wild Pepper Ave

 

 

This home has a great location. It is situated in a quiet neighborhood that is located Deltona High School, and interstate exit,and shopping. The surrounding area as a whole is becoming much more developed with a new movie theater, hospital, and restaurants! Community features include an in-ground pool and a community playground. The home features an open lay out and ceramic tile flooring. It also has plenty of backyard space for your family or your pets. Featuring  3 bedrooms, 2 full baths and a 2 car garage. Don't wait, schedule a showing today!

MLS# V4722401

$159, 900

 

CLICK HERE for the virtual tour

The Benefits of Homeownership Go Beyond the Financial

Homeownership is a major part of the American Dream. As evidence of that, 91% of Americans believe that owning a home is either essential (43%) or important (48%) to achieving that “dream.” In a market where some people may be unsure about the benefits and possibilities of buying a home, it is important that we remember this.

Homeownership is NOT just about the money. In fact, some of the major benefits are non-financial. Here are a few of those benefits as per the National Association of Realtors:

  • Consistent findings show that homeownership does make a significant positive impact on educational achievement.

  • Several researchers have found that homeowners tend to be more involved in their communities than renters.

  • Early studies of homeownership and health outcomes found that homeowners and children of homeowners are generally happier and healthier than non-owners, even after controlling for factors such as income and education levels that are also associated with positive health outcomes and positively correlated with homeownership.

Bottom Line

Homeownership means something more to people and their families than just the financial considerations.

 

GOT QUESITONS?

Use a Buyer’s Agent

 

It’s important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.

First, find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer’s agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.

Also, when you use a buyer’s agent, you will see more properties. Not only are they plugged into their Multiple Listing Service, but they are also actively finding homes that are listed as FSBO, or homes that sellers are thinking about listing.

PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS!

FOR SALE: 11 RIO PINAR TRAIL

11 RIO PINAR TRAIL, ORMOND BEACH, FL 32714
MLS: 
V4721936      

This 3 bedroom, 2 bath 1834 square feet home has great bones and a good location in a quiet neighborhood, just needs a little bit of TLC! Seated in a corner lot with plenty of room for the whole family. This home would make a great fixer-upper for a new family or a potential investor. Don't wait, schedule a showing today! Listed at $214,900, this deal wont last long!

PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS!

FOR SALE: 8 Forest Oak Dr

8 Forest Oak Dr, Ormond Beach, FL 32714
MLS#: 
V4721562   

OPEN HOUSE 1/20/2018 11 AM - 2 PM

This is a beautifully remodeled house that is waiting for new owners to turn it into a home. At 1950 square feet with 3 bedrooms and 2 baths, it's just perfect for a small family. Upgrades include a complete kitchen redesign with all new cabinets, spacious 10' granite kitchen island, LG fridge, GE oven, new dishwasher, disposal, ceiling exhaust, large farm sink, and brand new kitchen hardware throughout. Both bathrooms have been completely renovated with a granite counter double vanity mirror installed and the master sports a custom built marble shower with a frameless glass surround. The roof is brand new, electrical panel upgraded to 200 AMP service, new AC system has been installed, and the hot water heater has been replaced wit a new high capacity energy efficient tankless water system. All new windows, baseboard, and molding have been installed throughout the house. The swimming pool has been drained and resurfaced with a new screen enclosure built. Custom built rear yard access gates/fence at driveway. The garage has had a new insulated door and security access pad installed. New doors, new tile floors, new carpets, there really isn't anything else that needs to be done for this to be your next perfect home! Listed at $334,000, don't wait to make an offer because this wont last long!

PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS!
 

FOR SALE: 1952 English

1952 English Dr, Deltona, FL 32725
MLS#: V4722088


OPEN HOUSE 1/6/2018 11 AM - 2 PM

Wow, this 3 bedroom 2 bath house has been completely remodeled and is just beautiful! The home has 1,492 square feet and sits on a half-acre lake front lot. It has a brand new roof, new kitchen cabinets, counters, and appliances. Featuring a nice open layout, gorgeous hardwood floors and a large backyard, this home would be just perfect for cookouts and get-togethers. It's located nearby locals schools, shopping, and I-4. It's priced to sell so don't wait, schedule a showing today! It's listed for $170,000 and it won't last long!

PLEASE CONTACT US IF YOU HAVE ANY QUESTIONS!

What affects property values?

 

 

Some the features that increase property values are obvious-like a remodeled bathroom, a modern kitchen, or a sought-after neighborhood. But here are a few features and circumstances you have not have realized can affect property values.

  1. The neighbors: Not every neighborhood or community has an HOA that can keep the neighbors from going overboard with decorations or neglecting to care for their home. Homes adjacent to crazy neighbors can potentially be undervalued.
  2. Trendy groceries and coffee: Recent statistics suggest that if your home is a short walk from popular grocery stores like Whole Foods or coffee chains like Starbucks, it can actually appreciate faster than the national average.
  3. Mature trees: A big beautiful tree in the front yard is enviable, and it's not something that can be easily added to any home. Homes with mature trees tend to get a little boost in value.
  4. Parking: This isn't too much of an issue if you live in the suburbs or in a rural area, but residents in dense cities can have real problems with parking, and homeowners might need to rent a spot just to guarantee a place to park each night. That's why having guaranteed parking in urban areas will raise property values.
  5. The front entrance: First impressions matter to buyers-many will cross a home off their list within 10 seconds of stepping through the front door. An appealing front door, a friendly entryway, and a functioning doorbell are all necessities for getting top dollar.

JULIE CVERCKO
386-668-8668
840 Deltona Blvd. St. F-1
Deltona, Florida 32725
Julie@primerealestateinc.com

Here's What Our Clients Say About Us

Julie and Jake were wonderful. They both went above and beyond helping me in the entire process of finding and buying my new home! Leslie Doherty
This sales associate team has the best experience and guidance to provide any home buyer. I could seriously go on and on. They are authentic. They have integrity. They approach each case covering all the bases. It has been two weeks since I moved into my home and I am still a bit reactionary yet, they have reached out to check on me. I am so grateful. They have real knowledge and experience in so many ways, other parts of the country, the market, dealing with other agents, experience with lenders; they gave me confidence. I feel they treated me with respect and whether I was a multi millionaire or the truth, a person with a tenuous credit score, they did their best for me and with me. Every home we looked at, they provided positive options to flaws or problems. They utilized every communication modality possible to assist me and get thru the whole process. They are down to earth authentic people that understood my fears and gave me time for explanations every time. I learned so much from them. Plus, they dont stop at the end of the sale! They continue to provide excellent service with contacts and advice. I am seriously very grateful. Mary Robison
Julie and Jake best team ever. They are easy-going to work with. Their genuine interest in our needs and desires made buying our property a fantastic experience. They were patient, extremely attentive,and offered sound advice during the entire process. We couldn't be happier with our new home or with the service we received from them. Isabel Candelas Sanabria
Thanks to you and Jake for a great job done. When I first called you I received a wonderful service from you. Thank to your son for being there at the closing. Anthony Mangogna
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