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Tips For Buying A Home in St. Petersburg

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Buying a home is an exciting event. It can also be stressful. The Price Group can help make your transition into your new home seamless. Here are some tips for buying a home in St. Petersburg.

Get your finances in order.tips for buying a home

Consider the costs of buying a home. Ideally, you want to have money saved for closing costs, down payments, inspections and moving and repair costs. Also consider costs after move in. Some of the missed costs of a home are insurance, property taxes and HOA dues. Let buyers know you’re serious and get pre-approved for your home loan. Not only will this save you time because you’ll be looking at houses you can afford, it will also give you an edge against a buyer who may not have lending set up. Also, don’t move money around or open up any credit lines at least six months prior as this may affect your loan.

Use your instincts, not your heart.

Remember that there is no such thing as a flawless house. Buyers should not expect the seller to address every cosmetic issue in the home. The main thing to remember is to keep your expectations realistic. There may be some issues the buyer may need to compromise on in order to find their dream home. (For example, walls can always be painted.) The same can be said for the neighborhood you choose. Researching the neighborhoods and surrounding areas can help you focus in on available houses and make the search less overwhelming. 

Some neighborhood questions you may want to consider:

  • Are there schools nearby?
  • Do the amenities in the neighborhood fit my lifestyle?
  • What is the commute to work like?
  • Are there public utilities such as recycling, garbage, water, etc?

(Psst – You can visit our Links & Resources page for local government, school, and neighborhood information.)

Stay on top of deadlines.

This is something your realtor should help you with, especially if you’re a first time home buyer. Depending on the closing dates and type of property the schedule can vary. Some of the most important events that you want to keep track of are escrow deadlines, final walk-thru, and closing. Other things to consider are making sure your utilities are canceled, opened, or transferred and packing up your home to move.

(Use our handy moving schedule so that you know what needs to be done when during the closing process.)

Moving in.

You made it! Home ownership is finally yours and you deserve to celebrate. But before you do, you have to move in. In the weeks before the move-in day, you should inventory your home and decide what to keep and what can be donated in order to de-clutter and make your move easier (the fewer boxes to carry the better). If you’re done with the days of bribing friends with pizza and beer to help, professional movers may be a great option for you. It may also be a good idea to have your furniture cleaned before you have it moved into the new home. Lastly, check out local restaurants and food delivery service such as Uber Eats. After a long day (or two) of moving, the last thing you’ll want to do is make dinner. Order in or go out and enjoy what your new neighborhood has to offer.

3% downpayment loans are back! 620 credit scores or above

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A new program from Wells Fargo & Co. promises to make it easier for prospective borrowers to apply and qualify for a low downpayment residential loan.

Borrowers who use the yourFirst Mortgage program can purchase a home with a downpayment as low as 3 percent, an announcement Thursday indicated.

The San Francisco-based company said the program is intended to help first-time homebuyers and low- to moderate-income consumers become homeowners.

Fannie Mae is acting as a partner in the program.

According to Wells Fargo, the program features fixed interest rates. Prospective borrowers with less than 10 percent down can earn an interest rate reduction of 12.5 basis points by completing a homebuyer education course.

Expanded credit criteria include nontraditional sources like tuition, rent and utility bill payments.

The loan is fully documented and underwritten, and income from others who will reside in the subject property – such as family members or renters – can be considered for debt-to-income ratio calculations.

Downpayments and closing costs can come from gifts and downpayment assistance programs.

“yourFirst Mortgage is a conventional loan that avoids the complexities associated with loan applications for previous affordable lending programs,” the news release stated.

“There are a lot of conventional loan products with low downpayment options, but the criteria are so complex that it creates barriers for many qualified borrowers,” Wells Fargo Home Lending Executive Vice President Brad Blackwell said in the statement. “With yourFirst Mortgage, we wanted to provide access to credit and simplify the experience while maintaining responsible lending practices.”

Copyright © 2016 Mortgage Daily, Distributed by Tribune Content Agency, LLC

More Great News – Tampa’s Property Values Are WAY Up!

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Within the last year, the price appreciation for many homes here in the South increased.
 
Existing home sales in the Southern states climbed 3 percent in the third quarter of this year, according to a recent report from the National Association of Realtors, and are now almost 7 percent above the third quarter of 2014.
 
Specifically speaking, the greater Tampa area has seen a serious increase in home prices – a direct reflection of market value, and excellent news for Florida homeowners. Through a combination of solid job gains, above average shares of vacation and foreign buyers, and little new construction being added, areas in Florida have enjoyed a faster price growth on homes than other areas of the nation. According to the NAR report, prices have jumped an astonishing 20.7 percent during the past year – a remarkable increase.
 
This rising value is a clear sign that homes in the area are an investment with a great appreciating value. Family, vacation and/or retirement homes’ value will keep increasing due to the demand for these homes, making now a great time to buy. Investing now will let you get into a home at a lower price today as the housing market continues to heat up here in the Florida sun.
 
Thinking of moving away from the cold and snowy weather? The place to be is Florida! These homes may be the cheapest they will be for a while, so if you’re considering making a move to the Sunshine State, now’s the time to do so. Looking to move out instead? Selling your home in this market is sure to bring you a great price, so make the move you’ve been waiting on and list your home today.
 
At The Price Group, we can help you find your new dream home or help you get your property out to the many eager buyers looking for homes in the region. We have experience selling waterfront, historic and downtown properties throughout the region, and our commitment to excellence will ensure you have the best experience possible throughout the buying or selling process. To get started with your search or to learn more about selling your property with The Price Group, give us a call today at 727-851-6189.
 

The top 3 mistakes made by first-time buyers

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First-time homebuyers are emerging as a bigger force in the housing market. But getting approved for a mortgage, finding the right home and staying within budget can pose a challenge for them.

Bankrate.com notes some of the most common first-time buyer mistakes:

1. Judging only the mortgage payment: Some first-time homebuyers mistakenly focus only on the monthly mortgage payment, which they can afford, and forget that a home comes with other expenses, which they can’t afford.

“They have an idea of what their mortgage payment is going to be, but they don’t realize there’s much more to it,” says attorney Rafael Castellanos, a managing director at Expert Title Insurance. Property insurance, taxes, homeowner association dues, maintenance and utility bills can add up too.

2. Emptying out their savings for a downpayment: It’s a mistake to spend everything in the savings account for a downpayment, says Ed Conarchy, a mortgage planner and investment adviser at Cherry Creek Mortgage in Gurnee, Ill. “Some people scrape all their money together to make the 20 percent downpayment so they don’t have to pay for mortgage insurance, but they are picking the wrong poison because they are left with no savings at all,” he says. “I’d take paying for mortgage insurance any day over not having money for rainy days. Everyone – especially homeowners – needs to have a rainy-day fund.”

3. Getting new credit before the deal is closed: When borrowers prequalify for a loan, they need to avoid big-ticket purchases until the loan closes. Lenders pull credit reports before the closing to make sure the borrower’s financial situation has not changed since the loan was approved. Any new loans on their credit report could cause a closing delay.

First-time buyers “sign the contract and they want to buy new furniture for the house or a new car,” says Steve Anderson, a broker and owner at RE/MAX Benchmark Realty in Las Vegas. “I remember one case where, just before closing, the buyer drove to the office and says, ‘Look at my brand-new car.’ I told them, ‘You’d better go back to that dealership.'” Continue reading →

Rents growing 5% yearly – more in some Fla. cities

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Rent growth in the national apartment market is on a streak not seen for almost four years, according to Axiometrics. Annual effective rent growth for the U.S. apartment market in April 2015 remained steady at 5 percent.

It’s the third straight month it has been at or above 5 percent, and it’s the highest April rate since at least 2009, when Axiometrics began reporting the metric monthly.

In the first three months of the year, rents grew at their highest rate since the third quarter of 2011.

“Though the rate of rent growth has been steady the past several months, the fact that rents are rising at a 5 percent annual clip points to an extremely robust apartment market,” says Stephanie McCleskey, Axiometrics Vice President of Research. “The absorption of the large amount of new supply, fueled by increasing job gains, has been a boon for landlords and property owners – not to mention apartment investors.”

Annual effective rent growth did not reach 3 percent until March 2014, 4 percent until August 2014, and 5 percent until December 2014.

“If the market sustains this trend of 5 percent rent growth, 2015 would exceed the surprisingly strong year of 2014 as the highest-performing year of the recovery,” McCleskey says. “However, we still believe that rent growth rates will moderate as the year progresses.”

Occupancy rates

The national occupancy rate was 95.2 percent in April, an increase from March’s 94.9 percent. Occupancy last reached 95.2 percent in August 2014, the first time it had attained this level since Axiometrics began reporting occupancy rates monthly in April 2008.

“Axiometrics considers properties and markets full at 95 percent occupancy,” McCleskey says. “So, in essence, the national apartment market is full and in need of even more new supply, even though a record number of new units have been identified for delivery this year. Of course, individual markets differ, and there are some metro areas in which new supply is exceeding demand; but overall, the outlook is strong for the apartment industry.”

Florida cities’ rent growth

Eight California markets were among the top 17 markets with the highest annual effective rent growth in April within Axiometrics’ top 50 markets, based on total units, but three Florida cities ranked near the top of the list in April for “effective rent growth”:

Orlando: 6.7% rent growth, 95.6% occupancy rate
West Palm Beach: 6.4% rent growth, 95.5% occupancy rate
Fort Lauderdale: 6.3% rent growth, 95.8% occupancy rate
In addition, Axiometrics noted other hot markets that saw even higher percentage increases, including:

Naples: 10.2% rent growth, 97.7% occupancy
Cape Coral: 10.2% rent growth, 97.3% occupancy
Deltona: 9.0% rent growth, 96.5% occupancy
Orlando had the biggest rise among the top 17 markets in April, moving from No. 15 in March to No. 10 in April; West Palm Beach had the steepest decline, dropping from eighth place in March to No. 14 in April.

Affordable rental housing still elusive

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According to Housing Spotlight: The Affordable Rental Housing Gap Persists, there are more renters today than ever before, but not enough affordably priced rental units to meet the needs of the lowest income households.

The study, released by the National Low Income Housing Coalition (NLIHC), found a U.S. deficit of 7.1 million rental units that are appropriate for low income households – ones that make 30 percent or less of an area’s median income.

Nationwide, there are only 31 affordable and available units for every 100 extremely low income renters.

In Florida, it’s even less. The state tied for fourth place with only 21 affordable and available housing units for every 100 families.

Nevada topped the U.S. states with just 15 units of available and affordable housing per 100 renters, followed by Arizona and California (20). Oregon tied Florida for fifth place with 21 units per 100 families followed by Texas (26).

South Dakota (54 units per 100 families) and North Dakota (52) topped the list.

In every state, at least half of all extremely low-income renters spent more than 50 percent of their income on housing costs.

According to NLIHC, extremely low-income renters make up 25 percent of the total renter population, but just 7 percent of all rental units are affordable and available to this group. This report is based on 2012 data, the latest available.

For the first time, this edition of Housing Spotlight also highlights how it is nearly impossible for renters with income at or below 15 percent of area median income to find housing that they can afford. These renters are considered deeply low income by NLIHC. They are most often elderly or disabled households living on fixed incomes, such as Supplemental Security Income (SSI). There were 4 million of these renter households in 2012, but just 16 affordable and available units for every 100 of them; 90 percent spent more than half of their income on housing costs.

“The housing crisis pushed higher wage earners into the rental market, causing rent increases and a surge in the development of luxury apartments, making it nearly impossible for extremely low income households to find housing that is truly affordable to them,” says Sheila Crowley, president and CEO of the National Low Income Housing Coalition.

© 2014 Florida Realtors®

Study suggests 1 in 10 renters wants to buy in 2014

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March 13, 2014 – If a Zillow survey crunched its numbers correctly, the real estate market will see a big upswing in buyer demand over the next year.

According to the inaugural edition of the Zillow Housing Confidence Index (ZHCI), more than 5 percent of all residents in 19 of the 20 large U.S. metro areas want to buy a home in the next year. When the survey focused on just current renters, the number rises to one in 10 (10 percent) hoping to buy a home in the next 12 months.

However, existing headwinds, including tight inventory, rising mortgage interest rates and growing affordability problems in a handful of areas, may make it difficult for many potential buyers to follow through. Still, the majority of respondents were “confident” or “somewhat confident” they could afford homeownership now.

If all renters hoping to buy jumped into the market, it would represent close to 4.2 million first-time home sales – more than double the roughly 2.1 million first-time homebuyers in 2013.

A lack of home inventory may halt some buyers’ aspirations, however. While inventory is up 11.1 percent nationally compared to a year ago, it’s still well below optimal levels. Recent Census Bureau data indicates that the share of new homes built as rental units has grown, while the share of new construction dedicated to single-family homes is down. Mortgage interest rates also continue to rise.

“Even after a wrenching housing recession, this data shows that the dream of homeownership remains very much alive and well, even in those areas that were hardest hit,” says Zillow Chief Economist Dr. Stan Humphries. “But these aspirations must also contend with the current reality, and in many areas, conditions remain difficult for buyers. The market is moving toward more balance between buyers and sellers, but it is a slow and uneven process.”

Pulsenomics created the Zillow Housing Confidence Index. Measured on a 0 to 100 scale, readings above 50 indicating positive sentiment. The overall ZHCI for the U.S. stood at 63.7 at the start of the year. Of the 20 metro areas surveyed, 11 had individual confidence levels higher than the U.S. as a whole. The overall U.S. ZHAI among all households, which measures consumers’ plans to buy and their attitudes toward the social value of homeownership, stood at 62.4.

“While it is reassuring to see all of the headline ZHCIs in positive territory, the underlying indicators … reveal significant variability,” says Pulsenomics Founder Terry Loebs. “Several of these drivers of overall housing confidence registered negative or only marginally positive readings in some cities. These data confirm that real estate recovery and economic healing are relative, local phenomena …”

© 2014 Florida Realtors®

Senate Passes Flood Insurance Bill

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On Jan. 30, 2014, the United States Senate voted 67-32 to approve the Homeowner Flood Insurance Affordability Act (S. 1926), sponsored by Senators Menendez (D-NJ) and Isakson (R-GA).

This bipartisan legislation, an NAR member priority, calls for a 4-year timeout on rate increases triggered either by a property’s sale or a flood map update for a property with previously grandfathered rates. NAR provided Congress with expert testimony suggesting that many of these increases are excessive and inaccurate. The bill also creates a flood insurance advocate within the Federal Emergency Management Act (FEMA) to investigate home owner complaints of multiple different or excessive rate quotes.

The Senate vote sends the measure to the House of Representatives, where Reps. Grimm (R-NY) and Waters (D-CA) have already built an impressive list of 181 co-sponsors in favor of the bill; a total that is 30 votes shy of a House majority NAR will redouble its efforts there to persuade the House leadership to bring a similar bill up for a floor vote at the earliest opportunity.

FL home sale prices up 11.4% year-to-year in Dec.

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Florida’s housing market reported higher median prices, more new listings, fewer days on the market and the continued stabilization of inventory in December, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 19,497 last month, up 8.6 percent over the December 2012 figure.

“Florida’s housing market continues to demonstrate its recovery,” says 2014 Florida Realtors President Sherri Meadows, CEO and team leader, Keller Williams, with market centers in Gainesville, Ocala and the Villages. “December marked over two years – 25 months – of consecutive gains in statewide median sales prices, year-over-year, for both single-family homes and for townhouse-condo properties. The rising prices, along with the renewed strength of the state’s housing market, are encouraging more homeowners to list their properties for sale. Statewide, new listings for single-family homes increased 23.8 percent in December, while new townhome-condo listings rose 8.1 percent. The rising prices mean increased equity, which is another reason people are listing properties.

“Properties also are taking less time to sell, another trend that is sparking sellers’ interest,” Meadows added. “In December, the median days on market (the midpoint of the number of days it took for a property to sell that month) was 50 days for single-family homes and 51 days for townhouses and condos. That means 50 percent of homes on the market in Florida sell in less than two months.”

The statewide median sales price for single-family existing homes last month was $172,630, up 11.4 percent from the previous year, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in December was $137,500, up 17 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors (NAR), the national median sales price for existing single-family homes in November 2013 was $196,200, up 9.4 percent from the previous year; the national median existing condo price was $197,400. In California, the statewide median sales price for single-family existing homes in November was $422,210; in Massachusetts, it was $316,500; in Maryland, it was $257,677; and in New York, it was $229,000.

Looking at Florida’s townhome-condo market, statewide closed sales totaled 8,364 last month, down slightly (2.5 percent) compared to December 2012. However, the closed sales data reflected fewer short sales and cash-only sales in December: Traditional sales in Florida rose 23.3 percent for single-family homes and 6 percent for condo-townhome properties. Closed sales typically occur 30 to 90 days after sales contracts are written.

“Florida’s market exhibited all the signs of the annual holiday lull,” said Florida Realtors Chief Economist Dr. John Tuccillo. “Because of things like the reduced number of workdays and the presence of other important things to do, the statistics at this time of year don’t necessarily give a good read on where the market really is. Three continuing trends to note, however, are rising inventories, declining cash sales and the lessening presence of distressed property sales.

“The first two are indicative of reduced investor activity and thus a return to a more normal market. The last is a product of rising values that have increased market sales relative to short sales and foreclosures.”

Inventory was at a 5.5-months’ supply in December for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.46 percent in December 2013, up from the 3.35 percent average recorded during the same month a year earlier.

© 2014 Florida Realtors®

U.S. homes selling 30 days faster than a year ago

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Nationwide, homes listed for sale on real estate marketplace Zillow were selling a month faster in September than a year ago, according to a new analysis. In the United States as a whole, homes sold in September spent a median of 86 days on Zillow, down 30 days from 116 days in September 2012.

Among the 30 largest metro markets covered by Zillow in September, homes moved the fastest and spent the fewest days listed on Zillow in the San Francisco Bay Area (48 days); Sacramento, Calif. (59 days); and Dallas (60 days).

Homes sold faster this September compared to last September in all 30 of the largest metros. Large metros where homes moved the fastest this year compared to last year include Las Vegas (44 days faster), Sacramento (43 days faster) and San Antonio (37 days faster).

Zillow calculated the median number of days listings spent on Zillow, at the national, metro and county levels, dating to January 2010. In order to correct for homes that are listed, then removed and re-posted with new prices, Zillow considered multiple listings within 40 days at the same address as one listing. Since the beginning of 2010, homes nationwide have spent a median of 119 days on Zillow before being sold or taken off the market.

“The declining inventory of for-sale homes over the past year naturally creates pressure for buyers to more quickly snap up the inventory that is on the market. This demand has been fueled by huge resets in home prices since market peak, historically low mortgage rates and a slowly improving broader economic climate,” said Zillow Chief Economist Dr. Stan Humphries.

“Home shoppers in today’s environment need to be prepared to move quickly, with pre-approvals in place and an established sense of what they’re willing to pay for a home. But even though things are moving fast, buyers should resist the urge to enter into bidding wars or pay prices they’re uncomfortable with. We do expect that this need for speed will abate in the near-term as mortgage rates rise and more inventory becomes available because of new construction and declining negative equity.”

Copyright © 2013 Real Estate Weekly News via VerticalNews.com.