Homeowners trump renters in wealth

NEW YORK – Oct. 20, 2015 – Homeowners' net worth is significantly higher than renters. A typical homeowner's net worth is $195,400 compared to a renter's $5,400, according to the Federal Reserve's last data from 2013.

The Fed's next survey of household finances, which is conducted every three years, is due out in 2016 and the renter to homeowner gap is expected to widen further due to price increases.

Lawrence Yun, chief economist for the National Association of Realtors^®, predicts that the median net worth of homeowners will jump to $225,000 to $230,000 in 2016, but it will be around $5,000 for renters.

If that proves correct, the typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.

"Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth," Yun writes in his latest column for Forbes.com.

"The simplest math shouldn't be overlooked. A vast majority of homebuyers take out a 30-year fixed rate mortgage to make a home purchase," Yun says. "After 30 years, there is no mortgage payment (nor rent payment). So the home price growth over that time period would be the equity that the home buyer would have accumulated."

The majority of Americans aspire to be homeowners and the homeownership rate increases significantly through age. The homeownership rate among households under the age of 35 is 35 percent, for example, but by the time people reach their prime-earning years of 45 to 55, nearly three-fourths are homeowners. By retirement, nearly 80 percent are homeowners, Yun notes.

Source: "How Do Home Owners Accumulate Wealth?" Forbes (Oct. 14, 2015)

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.

The Tampa Outlet Mall & Local Real Estate!

CLICK HERE FOR FEATURED LISTING!

 

The Grand Opening of The Tampa Outlet Mall is fast approaching. Potential buyers, current residents and business owners in the area are continuously buzzing about the growth and positive impact the Mall will have on the Wesley Chapel/Land O Lakes area.

The real estate arena is certainly anticipating the launch of the Tampa Outlet Mall.  The overall value of the area is expected to increase. So the question is now, where to buy within the area that will still be an affordable option. One of the options is Ashton Oaks in Wesley Chapel.

This community is close enough to all of the festivities, attractions, restaurants, grocery, and much more, without being the heart of it all. Taxes are reasonable, there are no CDDs within the community, and the HOA dues are less than $55 monthly. Click here to check out a list of the current homes for sale within Ashton Oaks in Wesley Chapel.

FOR SALE ~ Home w/Large UnSpoiled Back Yard

In one of the desirable communities at Oak Creek in Riverview, you can find a home with a little of untamed land with trees and shrubs in it’s back yard. Some Buyers may see this backyard as a tumultuous project, while others will see it as an opportunity to personalize and yardscape. Yes, Yardscape. Changing the Landscape of your Yard to your own personal tastes.

Not everyone has the green thumb and vision to get this done. Also, there are rare instances where you find a yard large enough to fulfill this dream. Look no further. A home in Oak Creek in Riverview, Florida may be a YardScaper’s dream.

Within the Harvest Glen Community, a smaller community of the Oak Creek Subdivision, awaits a beautiful 2-Story, 2,825 sqft home built in 2011. Not only is the home a young structure with a contemporary flare and tons of upgrades, it sits on almost a 1/3 of an-acre. Half of the yard was inherited from the Builder as unspoiled forestry. However, the new owner of this home can repurpose the yard into a meaningful oasis. A pool, basket ball court, a walking trail or a jungle area where the kids can get lost and have bond fires. Whatever you, the space lends to your vision.

Below is a video of the home. Please click here for detailed MLS information and pricing. This home is waiting for you. To schedule a private showing call or text 813-419-7009 today!

CLICK HERE TO VIEW VIDEO!

Gloria Walters, PA, REALTOR
Charles Rutenberg Realty
813-419-7009, www.gloriawalters.com

Estancia Move-In Ready Homes ~ July 2015

NOW
Florence – Spanish, 2383 s.f. (3/2.5/den/bonus/2-car/2-story)
CLICK FOR VIRTUAL TOUR
Was $348,420 , Now $334,900
MLS ID: T2734980: 4024 Medicci Ln

JULY 2015
Florence – Italianate, 2402 s.f. (3/2.5/den/bonus/2-car/2-story)
Was $361,025, Now 344,900
MLS ID T2758705: 4033 Medicci Lane

JULY 2015
Milan – Italianate, 2495 s.f. (4/2.5/bonus/2-car/2-story)
$349,900,

MLS ID T2760694: 29259 Perilli Place

AUGUST 2015
Milan – Italianate, 2379 s.f. (4/2.5/loft/2-car/2-story)
$349,900
MLS ID T2762723: 4064 Medicci Ln

 

Call Gloria Walters, PA at 813-419-7009 or email info@gloriawalters.com for more information.

Move-In Ready Home Close to MacDill Air Force Base!

 

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Located on the cusp of Brandon and Riverview, this move-in ready Taylor Morrison home awaits its new owners. This home features four bedrooms, two and a half bathrooms, 2,825 square feet, three car garages, and a large lot with over 1/3 of an acre.

From the moment you pull into the driveway one is greeted by a contemporary home with a Travertine Walkway, large front porch and an appealing landscape. As you open the door, you are welcomed by 18’X18’ Spanish Tile at the Foyer and dark maple wood flooring leading to the updated living spaces on both sides of the staircase. From the entrance one can also admire the voluminous ceilings, crown molding, modern light fixtures, neutral paint colors, and the many windows that illuminate the space with natural lighting. The living room is equipped with built-in surround sound speakers and media outlets for entertaining. The gourmet kitchen boasts an eat-in kitchen space, dark cherry cabinets, stainless steel appliances, Granite Countertops, Spanish tile flooring, Noce tile Back Splash, and Noce tile at the Breakfast Bar. Also located on the first floor are the formal dining, great room, large laundry room, powder room, and under stairway storage.

Four bedrooms and two full bathrooms can be located on the second level. The massive master suite features a Tray Ceiling with fan, large windows emitting natural lighting, two large walk-in closets and a spa-like En Suite. This respite offers dual vanity space, a water closet, garden tub, and standalone shower with a rain-shower head. The three remaining rooms are spacious with complimenting closet space.

The backyard is also adorned with Travertine Tile, covered lanai, outside speakers, and ceiling fan for a wonderful outside entertaining area. The 0.31-acre home allows plenty of room for future home additions including a pool. With only 60 homes in this community, it’s centrally located and offers a short commute to MacDill Air force base, local river and boat docks, Lithia Springs, Camp Christina, Ellenton Mall, Brandon Mall, Local Hospital and many more shopping areas and points of interest.

Please call 813-419-7009 or email info@gloriawalters.com to schedule your private viewing today!

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