Hire a Buyer’s Agent Even for New Construction

 

I love receiving referrals from my past clients. I often receive phone calls from potential clients stating, “my friend spoke highly of you, he/she recommended you as a Realtor to help us with our home search.” Elated that my clients continue to think and speak of me when it comes to Real Estate, is not only a compliment, but an indicator that I have exceeded my client’s expectations.

This call was very similar. My past client gave me a ring, which I thought was a “just touching base” phone call. However, as it turned out, one of his co-workers were stressing about getting into a new place by December. He said my Realtor will take care of you. Within the same phone call, my past client asked me to hold on. Not knowing what to expect, I heard another person speaking on the phone. Hello she said. My co-worker spoke highly of you and said I should speak to you about helping me find a home. She said, “I looked at resales but wanted to take advantage of the new construction incentives while they last”. She then explained to me that she has worked with another Realtor that was recommended, but she was not very response and that she has been to a few builders already to look into the option of new construction.

Armed with the information I needed, I asked that she gave me a couple days to do some research and see what I can come up with. I emailed her two options that would be best. An option A and option B. She loved both, but thought option A would be best. We visited the site and she loved the new construction community. After meeting with her, she got a second opinion from family members then contacted me the next day and said that she wanted to sign a contract. I was able to work with the builder to get my client a great down payment to get the process started. After a month of frustration, I was able to turn it around for this hopeful buyer in just two days. This is why it’s best to hire a Buyer’s Agent even when considering new construction homes. They can narrow in on your needs and provide the best options that meet your needs, saving you time and frustration. Contact me today to begin your home search.

Cheaper to Own Than Rent Regardless of Mortgage Rate

 

 

Trulia’s Winter 2013 Rent vs. Buy Report looked at homes for sale and for rent on Trulia between Dec. 1, 2012, and Feb. 28, 2013, and compared the costs, factoring in transaction costs, taxes and opportunity costs. For homeownership costs, study authors assumed a 30-year fixed-rate mortgage, 20 percent down, itemizing tax deductions at the 25% bracket and a stay of seven years in the home.

Overall, buying a home is 44 percent cheaper than renting nationwide – down just slightly from 46 percent in 2012. In each of the 100 largest metros, buying is more affordable than renting, though it ranges significantly – from 70 percent cheaper to buy than rent in Detroit to only 19 percent cheaper in San Francisco.

In the 10 Florida markets checked by Trulia, savings ranged from 40 percent to 60 percent. They include:

Miami: 43% cheaper to buy
Fort Lauderdale: 53% cheaper to buy
West Palm Beach: 56% cheaper to buy
Cape Coral-Fort Myers: 45% cheaper to buy
North Port-Bradenton-Sarasota: 51% cheaper to buy
Lakeland-Winter Haven: 55% cheaper to buy
Palm Bay-Melbourne-Titusville: 50% cheaper to buy
Orlando: 51% cheaper to buy
Tampa-St. Petersburg: 55% cheaper to buy
Jacksonville: 54% cheaper to buy

Individual own-versus-rent savings will vary depending on details, but Trulia posed an adjustable map on its website.

Visitors can change the map to suit their circumstance by choosing the mortgage rate they expect to pay (3.5%, 4.5% or 5.5%), their IRS tax bracket (none, 15%, 25%, 35%) and the length of time they expect to be in the house. The map then changes its buy-versus-rent estimates based on input.

For example, changing a Miami buy-versus-rent decision to a three-year stay, 15 percent tax bracket and 5.5 percent mortgage interest rate makes it wiser to rent for a 1 percent savings.

“People who didn’t buy a home last year may have missed the bottom of the market, but they haven’t completely missed the boat,” says Jed Kolko, Trulia’s chief economist. “Buying remains cheaper than renting in all 100 large metros. Even buyers who can’t get today’s lowest mortgage rates will still find that buying makes more financial sense than renting in nearly all local markets – so long as they can get a mortgage in the first place.”

2013 Projected to be A Great Year for Florida’s Buyers and Sellers

Florida Realtor’s chief economist, Dr. John Tuccillo predicts that Florida’s real estate market will improve in 2013, considering the stronger economy. Over the past two years, job creation has improved across the state. Better jobs, equals higher standard of living and better housing conditions.

Another positive sign includes the low mortgage rates. Some buyers may find it difficult to secure a mortgage, due to stringent credit criteria. However, it still remains an attractive incentive to secure a 30-year, fixed loan with an interest rate under 5%.

Cash is still King. Sellers are seeing more and more cash offers which prove to be very favorable in multiple offer situations. These cash offers are often from investors who will remain active throughout 2013.

Foreclosures, short sales and other distressed properties will also remain very much prevalent in 2013. Although in abundance, the foreclosures and short sales have stabilized and both real estate professionals and buyers have adjusted to this market. Foreclosures and distressed properties are so prevalent that they have become their own property type like condos, single family homes, vacant land, etc.

New home developers will also move forward with some projects this year. They won’t build in large volumes; however, there is enough confidence in this year’s market to build new homes in niche markets.

International buyers and investors are anticipated to continue to acquire homes in bulk. The largest acquisitions are said to be had by Canada and Latin American, specifically narrowed down to Brazil and Venezuela. Florida can also look forward to a number of new residents. Many retirees who lost money back in 2008/2009 are slowly regaining this wealth and are anticipated to move to Florida to retire.

Why Take the Key? It Won’t Help Your Buyer’s Chances.

 

I recently attempted to show a bank-owned property that was priced considerably below market-value. One of my eager buyers was hoping to view this property and ultimately submit his highest and best bid. The property had been on the market for two days and there was a mandatory seven day waiting period before any offers were considered. When we arrived at the property, I unlocked the lockbox, only to find that the keys were missing. Confused and a little annoyed, I informed my buyer and called the listing agent. The listing agent was aware of the situation and placed a call into the property manager to have the property re-keyed.

ATTENTION REAL ESTATE AGENTS!
Removing the key from the lockbox to reduce the likelihood of the property being shown to other potential buyers is not only very unethical but may prove to be a disadvantage to your buyer. The seven-day waiting period could be extended to rectify the inconvenience and allow interested buyers time to submit their highest and best offers. Also, your buyer could change their mind making your efforts futile and unnecessary.

As a Real Estate professional, you should inform your buyer of the competition associated with the property purchase. Review the comparables (Comps) with your buyer, as well as strategize and determine the best offer for the property. As a real estate agent it is important to be professional and ethical in all business endeavors.

ATTENTION BUYERS!
If your Real Estate Agent suggests removing the key from the lock-box, please ask them to reconsider. As a buyer, if you were viewing properties, you too may be a little annoyed to know that you cleared your schedule for this viewing only to find out, there is no key to access the property. Additionally, if you were successful in securing the property, the absence of the key could delay other areas of your home purchase process including the inspection, appraisal, etc.

I am always disappointed with agents who employ this unethical practice. As a Realtor, your success is not measured by how many keys you can remove from a lockbox or how you can block the other buyers and agents through unethical practices. As a Real Estate Professional, buyers seek your services in a real estate transaction to be informed, educated, and navigated through this process. Buyers look to their real estate agent to negotiate on their behalf, and more importantly to be honest and ethical in all they do. Sometimes I wonder if I’m the only agent who works by these practices.

Special Report: Real Estate Provisions in 'Fiscal Cliff' Bill

Published by:  Daily Briefing: Wednesday, January 2, 2013
A service for members of Florida Realtors

WASHINGTON - Jan. 2, 2013 – Tuesday, January 1, 2013, the House and Senate passed H.R. 8, legislation to avert the so-called "fiscal cliff." Following are real estate-related provisions of the bill, which President Obama plans to sign into law today:

• Mortgage Forgiveness Debt Relief Act extended to January 1, 2014. In place since 2007, the act provided a tax break for homeowners who struggled through financial hardship such as a foreclosure, and were granted mortgage debt forgiveness. In the past several months, National Association of Realtors (NAR) issued numerous calls to action urging its million-plus Realtor members to ask lawmakers to extend the tax break for another year. More than a quarter of all transactions involve distressed properties, the NAR said in its plea. "Homeowners shouldn't be forced to pay a tax on money they've already lost with cash they never received."

• Deduction for mortgage insurance premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012.

• The 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.

• The 10 percent tax credit (up to $500) for homeowners for energy efficiency improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

• "Pease limitations" that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high-income filers. "Pease" limitations will only apply to individuals earning more than $250,000 and joint filers earning more than $300,000. The thresholds are indexed for inflation so will rise over time. Under the formula, filers gradually lose the value of their total itemized deductions up to a total of a 20% reduction.
First enacted in 1990 and named for Ohio Congressman Don Pease, who proposed the idea, the limitations continued throughout the Clinton years. The limitations were gradually phased out starting in 2003 and eliminated in 2010. Reinstitution of these limits has far less impact on the mortgage interest deduction than a hard dollar deduction cap, percentage deduction cap or reduction of the amount of mortgage interest deduction that can be claimed.

• The capital gains rate remains at 15 percent for individuals earning less than $400,000 per year and couples earning less than $450,000.  Any gains above these amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for the sale of principle residence remains.