When is the best time of year to buy a home?

RealtyTrac took a big data approach to the question and analyzed 32 million single-family home and condo sales over the past 15 years. They compared average sale prices to average estimated market value at the time of sale to determine whether buyers paid a premium or bought their home at a discount. They then broke down the data by month, weekday and day to see which buyers received the biggest discounts based on listing prices.

Florida discount days

• Cape Coral-Fort Myers: The best day of the year is May 28, when buyers' closing price was an average 22% discount off the original asking price.
• Lakeland: The best day of the year is Jan. 21, when buyers' closing price was an average 16% discount off the original asking price.
• Miami-Fort Lauderdale-Pompano Beach: The best day of the year is Dec. 31, when buyers' closing price was an average 13% discount off the original asking price.
• Orlando-Kissimmee: The best day of the year is Oct. 1, when buyers' closing price was an average 11% discount off the original asking price.
• Palm Bay-Melbourne-Titusville: The best day of the year is Oct. 8, when buyers' closing price was an average 20% discount off the original asking price.
• Sarasota-Bradenton-Venice: The best day of the year is Jan. 2, when buyers' closing price was an average 15% discount off the original asking price.
• Tampa-St. Petersburg-Clearwater: The best day of the year is Oct. 29, when buyers' closing price was an average 12% discount off the original asking price.

"The end of the school year and summer break accelerates our South Florida closings in the spring and summer months," says Mike Pappas, CEO and president of the Keyes Company in South Florida. "Historically, we close 60 percent of our sales in the second and third quarter of each year. Traffic is lower during the holidays and therefore January and February are our lowest closing months."

National overview

October is the best month to close

• Over the last 15 years, October buyers realized an average discount of 2.6% below full estimated market value at the time of sale.
• Following October, the best months to buy were February, July, December and January.
• The worst month of the year to close is April, when buyers over the last 15 years have purchased at an average premium of 1.2% above estimated market value at the time of sale.

Monday is the best weekday to close

• Over the last 15 years, Monday buyers saw an average discount of 2.3% below full estimated market value at the time of sale.
• Friday is the second-best weekday to close on a home purchase, and buyers realized an average discount of 2.0%.
• Thursday is the worst day of the week to buy a home, with a 1.0% average discount, followed by Wednesday (1.4% discount) and Tuesday (1.9% discount).

Oct. 8 is the best day of the year to close

• After removing holidays such as Christmas Day, New Year's Day, Veteran's Day and July 4, the analysis found that buyers who closed on Oct. 8 realized the biggest average discount – 10.8 percent below estimated market value at time of sale.
• After Oct. 8, the best days of the year to close on a purchase of a home were Nov. 26 (10.1% discount), Dec. 31 (9.7%), Oct. 22 (9.6%), and Oct. 15 (9.1%).
• The worst day of the year to close on a purchase of a home was Jan. 19, when buyers paid an average 9.6% premium above estimated market value at time of sale, followed by Feb. 16 (9.5% premium), Apr. 20 (9.5% premium), Apr. 6 (8.4% premium) and Apr. 27 (8.2% premium).

For more details, check RealtyTrac's interactive map posted online.

To Contribute to Buyer’s Closing Costs or NOT!

 

Is there a defined rule when it comes to closing cost assistance for financing buyers? Many might think there is an industry standard to expect. Buyer’s closing costs assistance or seller’s concessions are always a topic of discussion in any financing negotiations. Why not? If the Buyer is purchasing a home and paying for the down payment, closing costs, home inspections, appraisal, HOA applications, etc., a little money saved can go a long way. Thousands of dollars just vanish from the buyer’s pocket. I’m not saying it’s not worth the investment, but if the Buyer could save a little in their pockets, then Why Not?

Any new buyer I work with, I’ll explain to them that we’ll ask the seller to contribute and pay for up to half of their closing costs. In some cases, I can negotiate that all of their closing costs be paid. On the selling side, when I represent a seller, the seller’s net sheet is calculated to include 3% seller concessions as a variable cost. It’s not mandatory, but if a Buyer asks, at least the seller is able to make concessions as they see fit.

I never really gave this practice much thought until I submitted an offer on a property for one of my Buyers recently. The listing agent countered our offer stating that the Seller won’t contribute to our closing costs. The listing agent further explained that she never asks for closing costs for a buyer or recommends a seller to contribute to the Buyer’s closing costs unless it’s a foreclosure or new construction property. Foreclosures and new construction purchases are easy outlets to obtain closing cost assistance for the Buyer. New construction builders almost ALWAYS offer seller concessions as part of their appeal to Buyers. I was certainly taken back by her real estate practice. She eloquently added that, if a Buyer wants to buy a home, they should the necessary money saved to cover all costs. I chuckled to myself.

Perhaps this is the service she provides to her clients, but I feel this is a Disservice. Saving a few thousand dollars for a Buyer shows that you care. It shows that you understand that even after the  home purchase, there’s money that goes towards cosmetic improvements, furniture, utility connections, among other items. It hurts my heart that this is her belief and practice. I feel this is why when I speak to so many Buyers, they feel that home ownership is out of reach. They feel that they cannot afford it, and have to save for years. They eventually give up on this dream because of kids, bills, and other items that may slowly nibble at their saving opportunities.

I believe that Home Ownership is a dream. As your Real Estate Professional, it’s my job to make this dream come true. Anyway I can.

If you are wondering how to begin the journey to home ownership, call me today at 813-419-7009 or email me at info@gloriawalters.com.

Photo credit: www.totalmortgage.com

Viewing Real Estate Through the Eyes of Your Phone or Tablet.

 

Photo Credit: RISMedia.com

A recent survey conducted determined that many Realtors use FaceTime, an iPhone video app, to help overseas or out-of-state Buyers view homes virtually. Personally, I’ve used Google Hangouts, or even Skype to conduct such viewings. These outlets have also proven reliable when a Buyer cannot make it to the final walk-through and have chosen to close via mail-away.

Such applications as FaceTime, Google Hangouts, and Skype are all capable of sending video and sound using your smart phone or tablet. The user can also switch views between the front and back camera as needed to talk to a client and showcase a a home during the walk-through or tour. The Realtor can get up close and answer any questions on the home on the spot for the client.

Considering how hot the market is right now, homes can be under contract in one day. This method allows the Realtor to discuss all pertinent items with the Buyer in Real Time and the visual aspect offers added comfort for making quick decisions. If the client is unavailable at the time of the property viewing, I video record the property and outline all features and challenges of the home. The video is then shared with the client via Dropbox or Youtube, depending on file size.

In today’s market, having a Tech-Savvy Realtor is a plus. The Tampa Bay market is volatile and values are increasing daily. Buyer’s offers need immediate presentation to the sellers to increase chances for success. As I have listed many homes in the first quarter of the year, I see the first hand competition among eager buyers ready to secure a home and cease their long home search.

Looking to purchase or sell real estate in the Tampa Bay area? Your Favorite Realtor is here ready to assist. Feel free to call me at 813-419-7009 or email me at info@gloriawalters.com. Follow me at @GloriaSellsTPA or Facebook.com/GloriaSellsTPA.

Homeowner Flood Insurance Affordability Act

The United States Senate has just passed "The Homeowner Flood Insurance Affordability Act" by a vote of 72-22 (both US Senator Nelson and Senator Rubio voted in favor of the bill. This is the bill the US House passed on March 4. This is incredible news for Florida REALTORS® and property owners. The bill will now be sent directly to President Obama for his signature!

* Reinstates Grandfathering - This bill permanently repeals Section 207 of the Biggert-Waters Act, meaning that grandfathering is reinstated. All post-FIRM properties built to code at the time of construction will have protection from rate spikes due to new mapping - for example, if you built to +2 Base Flood Elevation, you stay at +2, regardless of new maps. Also importantly, the grandfathering stays with the property, not the policy.

* Caps Annual Rate Increases at 18% - This bill decreases FEMA's authority to raise premiums. The bill prevents FEMA from increasing premiums within a single property class beyond a 15 percent average a year, with an individual cap of eighteen percent a year. Pre Biggert-Waters, the class average cap was 10%. Currently (Post Biggert-Waters), the class average cap is 20%. The bill also requires a 5% minimum annual increase on pre-FIRM primary residence policies that are not at full risk. The updated legislation also states that FEMA shall strive to minimize the number of policies with premium increases that exceed one percent of the total coverage of the policy (e.g., 1% of $250,000 = $2,500).

* Refunds policyholders who purchased pre-FIRM homes after Biggert-Waters (7/6/12) and were subsequently charged higher rates

* Permanently Removes the Sales Trigger - This bill removes the policy sales trigger, which allows a purchaser to take advantage of a phase in. The new purchaser is treated the same as the current property owner.

* Allows for Annual Surcharges - This legislation applies an annual surcharge of $25 for primary residences and $250 for second homes and businesses, until subsidized policies reach full risk rates. All revenue from these assessments would be placed in the NFIP reserve fund, which was established to ensure funds are available for meeting the expected future obligations of the NFIP.

* Funds the Affordability Study and Mandates Completion - This legislation funds the affordability study required by Biggert-Waters and mandates its completion in two years.

* Includes the Home Improvement Threshold - This bill returns the "substantial improvement threshold" (i.e. renovations and remodeling) to the historic 50% of a structure's fair market value level. Under Biggert-Waters, premium increases are triggered when the renovation investments meet 30% of the home's value.

* Additional provisions: This legislation includes several other provisions including preserving the basement exception, allowing for payments to be made in monthly installments, and reimbursing policy holders for successful map appeals.

South Pointe, Riverview FL Home For Sale

 

Click Here to View Property Video

Your Home Search is over! This South Pointe home showcases an owner's pride. Well maintained from roof to floors. Your future home features three well-sized bedrooms, two full bathrooms, an entertainment alcove, modern light fixtures, sparkling baseboards, immaculate carpet and tile flooring, high-ceilings, contemporary interior colors, a two car garage, and a great open patio area for enjoying the Florida weather. The master bedroom is well adorned with high ceilings, modern paint colors and the master bath boasts a stand-up shower, water closet, double-sinks, a large walk-in closet, and a garden tub. South Pointe is centrally located less than 30 miles away from Tampa, Sarasota, and I-4. Furthermore, a number of shopping areas and restaurants are located within minutes of this humble abode including Publix, Panera Bread, Sam's, Qdoba, and many more... Call 813-419-7009 or email info@gloriawalters.com for more information or to make an offer. This unit is being offered for sale and for rent.

Real Estate Q&A August 2013

Dear Gloria,

I am planning to move to Florida within the next year and would like to purchase a new construction home in the Wesley Chapel area. I have heard that a buyer can incur additional charges during construction. I would hate to purchase a new construction property and pay much more than I originally planned. Have you ever experienced a similar situation with a past buyer?

Jenny F., Boston, Virginia

Jenny,

I have never experienced this situation with any of my new construction buyers. Typically the process is similar among many builders. After a buyer has viewed the model and has made the decision to move forward with the builder, they sit down with the sales consultant to discuss floor plan, home site, and designs. An initial estimate is provided at that time. The buyer further discusses the interior design material details at the design center.

After all of the fixings have been secured, the final price of the property is provided. After the design, home site and floor plan have been finalized for the new construction home, there should be little to no price changes. Should the buyer decide to change or alter the originally discussed design elements listed within the contract then the buyer can expect a price change. For example, let’s say a buyer decides to have a new construction home built with all of the design upgrades that were shown in the $245,000 model. Let’s say one night the buyer had a change of heart and decided they wanted to change the kitchen floors from tile floors to hard wood. This material change to the property may require a change in the original agreed price.

Thanks for your email Jenny and I look forward to helping you further with this process.

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.”

Investor Corner ~ Monthly Distressed Market Summary (January 2013)

 

This report will compare the distressed single family home sales of January 2013 to that of January 2012 in Hillsborough County. Over the past year, distressed property sales have increased and price points have decreased. The chart shows a slight increase in traditional and foreclosures sales. Although there was a minuet decrease in short sales in comparison to January 2012 sales, the median sale price rose by $13,000. Subscribe to receive the latest news on Tampa’s Real Estate climate, trends, and more.

Single Family Homes (Hillsborough County)