The International Buyers are still strong in Market

Over the last months the US dollar strengthened against other foreign currency, however the international buyer are still coming and purchase real estate in the US. The volume amount of these real estate transactions have even increased, while the number of the purchased units have decreased. That means there are less international buyers that buy, but these buyer are buying more expensive units. That results in an overall plus of these international real estate transactions.

There are five countries worldwide, who are responsible for 51 % of the real estate transactions. China is on the top nations with 28.6 billion and they bought the most expensive homes. The average home price for the international buyers was slightly below half a million, while the home prices of the Chinese buyers were beyond the $800,000 mark.

Second on this list are the Canadians with 11.2 billion, on position three, four and five come India, Mexico and the United Kingdom.

There are four states in the US, that are the preferred target areas for these international real estate buyers: Florida, California, Texas and Arizona according to the market data of the NAR.

These positive numbers show that Florida is still a very attractive spot for international real estate investors despite of the US dollar strength.

You need help for your international real estate purchase? We can help at andrea@florida-informations.com .

As a preparation for your purchase project here our book: http://www.amazon.com/Your-Residence-Paradise-Property-Purchase/dp/0986252913     

Are you a Millennial Homebuyer?

Each age of home buyers are looking for different home features based on their personal needs and circumstances. For example in Florida many young families have at least one at home staying parent who earns a part of the family income from their home office.

In such a circumstance of life the home buyers are seeking a home that allows them to live energy efficient and will have green components like modern appliances and water saving method in their home to cut costs. The yard and the home itself should be equipped with an updated kitchen and bathrooms and they expect low maintenance of their homes.

They need flexibility in their home space because when they stay at home for work the interior of the house should be multifunctional, flexible and entertaining for themselves, their family and their friends too. All this together should also be affordable for them.

With these high stacks they need competent assistance from a real estate professional who helps them to navigate the existing home inventory and find the perfect cozy home that meets most of their needs.

You are looking for such a home? Contact us at andrea@florida-informations.com.
In Real Estate always on your side - http://www.amazon.com/Your-Residence-Paradise-Property-Purchase/dp/0986252913   

Pocket Listings are not smart for the Seller

Many sellers and also their agents when they are hired by such a seller are not very smart when they agree to make a pocket listing. Both the seller and their agent will leave good money on the table.

The reason for this is that the pocket listings are not marketed to the biggest possible audience because it is a pocket listing. The nature of a pocket listing is that it sits in the pocket of the seller or the agent and only a hand selected buyer audience will have the chance to make an offer. 

On the other hand the members of this ‘elite’ crowd may not include that potential buyer with the deep pockets that the seller is hoping for or need to get out of his/her property. The buyer with the deep pockets is often outside this crowd and the seller will not get to this buyer because this buyer does not know that the seller wanted to sell his/her property. That is not a good position for the seller.

Therefore Mr. Seller you should think twice what is better for you – Make a pocket listing and get a lower price from a limited buyer audience or publish your listing with an broker on the MLS and get a higher sale price and a potential higher gain from your sale because your property is seen by a much bigger buyer crowd with deeper pocket?

You have a real estate question? We love to assist you – andrea@florida-informations.com.
In Real Estate we are always on your side - http://www.amazon.com/Your-Residence-Paradise-Property-Purchase/dp/0986252913

 

Buying New Construction Homes

Not everybody likes to buy a home that is pre-owned by a seller. For these buyers a new construction home is the better solution. However, when buying a new construction home you as the buyer have to keep some important details in your mind when going on house hunt.

The developing company is the seller of the house and they offer their product – the home – based on the construction costs. That means that the material quality and the work that was put into to the construction dictates the price. This said it is highly unlikely that the builder will lower the home price when you -the buyer - enter into the contract. They will often give you some upgrades to the house and/or will pay some closing costs and that can be a good deal too.

When buying a new construction home you as the buyer make your decision based on the model home that you have visited. These homes often have upgrades that your house might not have because your house is not yet built and you decide during the purchase and building process what kind of upgrades and quality you want in your new home. Please do not forget, every upgrade comes with a new price tag and your starting purchase price may not be the end price of your new home.  Also make sure that every detail about your home upgrades and changes to the purchase contract are in writing so that you are on on the save side in case anything goes not straight during the construction period.

Sometime the home builder offers also the financing options in-house or with an associated lender. When taking the builder’s financing option into consideration, please make sure that you also check other lenders for affordable financing options. The builder's financing is not always the best for the buyer.

The most attractive deals in new construction housing sector you will get at the year's end or when the development is nearly fully finished because the developing company wants to close its books on this construction project and want to start a new project in a different neighborhood.

You want to buy a new construction home and do not know where to start, because these new construction developments are not on the internet? Contact us at andrea@florida-informations.com for assistance.

 

Vacation home purchases are the today’s market trend

Market studies show that the investment trend in the real estate has shifted from investment properties to vacation and second homes. This trend is not only popular in the super rich population but also in the ordinary middle class. The market share of these transactions is 21 % of all transactions and exceed the market share of the investment home purchases that have only 19 % portion of the real estate transactions.

The vacation home purchaser often buy their property in an average distance of 200 miles from their primary residence. The most preferred location for this type of retreat homes are with over 40 % beach areas while the country side homes are only 19 % and the homes in the mountains are only 17 % of the transactions.

Based on the strong economy the buyers are using mortgage for their vacation home purchase but the mortgages for these home are below 70 % of the loan ratio.  

You want to know more about this actual market trend? Our email address is andrea@florida-informations.com

Spring trends in the housing market

Normally the housing marketing is more active in spring and that is not different this year. The market is a seller market with only 4.6 months of inventory on the market and this low inventory has the consequence that the home prices are surging.

The rising home prices are good news for the sellers but not for the investors who are looking for cheap homes that they can flip or rent. Therefore the investor numbers are declining and the normal home buyers have a greater chance to get their new home.

The rising price are also not an important thing for the buyers because it makes it harder to buy a new home even when the mortgage rates are still as low as 3.7 % for a 30 year mortgage. They have to qualify for their home loan. 

The most positive news for home buyers is the return of the Freddie Mac mortgage with only 3 % downpayment. This specific mortgage was not available for nearly 5 years.  

You want to get more market details? You can reach us at andrea@florida-informations.com

Buying a home and get financing – Changes at the beginning of August 2015

You are a frequent home buyer or a first time home, who is looking to purchase a home in the near future? Then you should keep in mind that there changes in the financing process in the coming summer. These change can impact you and your financing preparations.

After the financing crisis and hard to understand financing process with its costs and expenses along the way, the CFPB – that is the Consumer Financial Protection Bureau – is in the process developing a toolkit for home buyers in this matter. This toolkit will help you as the home buyer to understand the necessary steps in the process and the connected costs and expenses that come with the mortgage and the closing.

This toolkit will not only help the home buyers to understand the process better but also to find the best matching type of mortgage. It will also make it easier to understand the differences, requirements and benefits of the different mortgage types.

It is also intended that the mortgage industry use this toolkit with its customers. This toolkit will soon be available in English, Spanish and also for consumers with disabilities.

For more details to this topic please contact us at andrea@florida-informations.com   

Buy or rent – that is the question

Are you ask yourself that question? Then you need to decide first what your intention with the property is. Do you want to buy the house for yourself and your family and you find your dream home, then you should buy it now. In case you would like to buy it as a flipping object to make big money of it, then you may be too late. The best flipping deals are already gone and this kind of investors are retreating from the market in Florida.

To make the right decision for your individual case, you have also to consider the location. Not every market is the right market for a purchase. In some areas the housing market is still in buying territory because there are properties available that are affordable and you will get a payable mortgage on. These markets are not in Florida anymore because our market has low inventory and the best deals are already gone.

In the Florida market and especially in the southeast region the monthly rental costs and the monthly mortgage payments are side by side. It depends on your personal situation, if you should better rent and save money for your downpayment or if you are financially fit enough to buy a home.

You need help to make the right decision? You can contact us at andrea@florida-informations.com

Homeownership seems to rebound

At the end of 2014 the homeownership in the United States was only 63.9 %. That is the lowest rate since 1994. However, in comparison to other countries such a rate is high. The homeownership rate in Germany for example is below 50 %.

The reason for this low homeownership in the US is the mortgage crisis that led to the housing meltdown and the massive foreclosure wave. During this housing downturn many homeowners lost their property because they could not afford their home any longer and had to move back in with their parents. That means that under one roof sometimes live two or three families together – the parents and the son and/or daughter with their family. Depending on the size of the house that can be tough.

Since the economy is recovering and the job market offers new opportunity these households have a new change to get on their feet and buy a new home. While they were living with their parents these potential home buyers had the time to save some money for the down payment of their new home and could repair their damaged credit records.

These home buyers are today in a better financial position when they apply for a loan and the lenders are also on their way to make loans more affordable. The lenders know if they do not give loans they will not make money therefore they will help home buyers to qualify for a loan.

As an international buyer you should keep in mind, that you have to buy now before these new US buyers hit the market and you are in the competition with these homeowners.

You will find valuable information about an international real estate purchase in this book

Or you can contact us at andrea@florida-informations.com.

What gives you the best return of investment when remodeling your home?

As a home owner you are always interested to keep your home in great shape and be proud of your biggest life investment. Every time when you think about remodeling your home you should keep in mind what adds the most value to your property in case you have to sell it in the near future.

I am not talking about the necessary repairs when your window glass was broken from your playing kids or when your roof is leaking because the last storm damaged it. I am talking about the remodeling and update of your home so that the market value will increase when you decide to sell it.

In such a case you need to know what are the trends on the real estate market. What is the most interesting detail for a potential buyer in your neighborhood? What will make your home attractive to potential buyers?

Studies show that even small updates or change on the exterior will push your home value and will give you a better return of this particular investment. When the outside of your home is attractive to potential buyer than the interior will often be less important.

Start with your yard and keep it clean and nice and make the outside of your home look well maintained. In case you have outside siding that looks a little bit run down, replace it with manufactured stone veneer. This update is affordable, looks nice and clean and will pay off at the closing table.

This is only one example for an affordable home update. However, there are trendier update that will give you a good monetary return.

For more information please contact us at andrea@florida-informations.com