New house financing opportunities

A few years ago before the housing bubble burst it was very easy to get a mortgage. You only had to provide very little documentation about your financial situation. As long as you had a steady job and a regular income you had a good chance to get a mortgage. This situation was the main reason for the financial problems in the housing sector.

After the housing bubble burst and many banks nearly went into bankruptcy the mortgage requirements were very strict and it was very hard especially for first-time homebuyers to qualify for a loan. At that time the borrowers had a lot of hoops to jump through and could hardly get a loan.

The first situation was as bad as the second one. However, both sides – borrower and lender – have learned their lesson. The borrower knows that he/she has to show a solid financial status before a lender is willing to lend him/her the necessary money.

On the lender side the mortgage requirements are less restrictive and for first-time homebuyers the 3% down payment in a real estate purchase is back again. With such a high mortgage amount the borrower has to pay insurance premium for the loan amount that exceeds 80% of the purchase price. During the housing crisis this insurance premium was 1.35% and is now down to 0.85% and that is a huge advantage for first-time homebuyers.

These new financing options will certainly attract new buyers who had to struggle in the past with the higher down payment and qualification requirements.

To get more details how to get a loan you can contact us at andrea@florida-informations.com

I want to sell the condo of my inherited condo

When I took that listing I thought that is an easy task. The market is good, the location is excellent and close to the beach. The unit is in good condition. Let’s move and we hoped to get the transaction closed within 30 days.

The public records of the property didn’t show any information that should rise a red flag. However, during the title examination we found out that the probate at the time of death of my customer’s father who was the former owner of the unit was not properly done. The father of my customer deceased in New York and the probate was done at the court in New York. During this probate proceedings my customer got papers that stated that she was the owner of the unit and she thought everything was okay.

Sadly the attorney who had done the probate case in New York forgot to file the probate case also in Florida. Because of this attorney’s mistake my customer had to retain a second probate attorney in Florida who did the missing filings. Such additional filings are a costly factor in a real estate transaction.

To prevent such a costly issue you should already at the purchase time decide if personal ownership is the best choice for you. There are better options to protect you of such a probate situation. To find out the best options for your specific situation the advice of a real estate attorney is the best protection.

Please contact us for further questions at andrea@florida-informations.com 

When is the best time to sell?

If you are right now in the decision-making process you might ask yourself: is now the right time to sell my house? Can my listing agent give me any advice? That’s a good question.

Several market studies on the internet show that the best listing time is spring season. In this season 38% of the listed properties are under contract within 30 days and 15% of these properties close with a higher sale price than the listing price. The worst season according to the studies is the fall. In that time of the year only 34% off the list of properties were sold within 30 days with an 11% higher sale price than listing price.

These numbers show that the differences are only marginal. Much more important is the location of the property and the actual property conditions. If your property is in a well-maintained and clean condition it will sell mostly above the asking price in the today’s market and it doesn’t matter when you list your property.

Second influencing factor is the overall real estate market condition. If many houses are in distress or facing foreclosure you will have a hard time to sell your house at your asking price because of the existing competition on the market.

In some geographic areas like Florida the season question will have an impact because we have in winter and spring the high tourist season and thousands of international buyers flood into the sunshine state. They are additional buyers for the listed properties.

For additional questions you can reach us at andrea@florida-informations.com

55+ People are on the move

The time of waiting is over for these homeowners. The people that are 55 and older stayed in their homes during the last years. During the recession and the financial crisis the house lost a big portion of its market value. When you as a homeowner have a mortgage on your property that exceeds the market value of your home you would have realized that loss and maybe have jeopardized your retirement funds. In case you as a homeowner had already paid off your mortgage and you have only equity in the home it would have been wise to sell the home either because the sale proceeds would have been much less than today.

Now it is time to make the move and sell their property. The market statistics show that movement clearly. The home sales in this specific market segment have increased by 5 points to 58 % during the last year and it is expected that this trend will last.

However, when these elder people sell their homes they need to move to a different home – either a smaller single family home or a condominium. This movement creates a demand either for a purchase or for a lease of a property in a 55+ community.

This particular market segment is constantly growing. This demographic segment of retirees and pre-retirement increases because the people are much healthier and they live longer. The live expectancy is in average 79 years and is moving upwards. All these people need a home for this portion of their lives and that makes this senior market segment very attractive for developers that focus on elder people housing projects.

You want to know more? Please 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.

Florida’s Coasts are safe from Oil Drilling

That is big and important news for Florida. The Sunshine State Florida is one of the biggest vacation destinations in the United States and the most valuable treasures in Florida are the clean beaches. The government has decided to ban the off shore drilling at the Florida coasts until at least 2022.

During the oil spill in 2010 in the Gulf of Mexico many states in that region had big problems with the oil that harmed the animals and birds as well as the underwater and beach vegetation.

Florida was lucky at that time. We only had limited exposure to the oil spill in the northwest region of the state. However, we felt with the other states who had fight the consequences.

Affordable indoor updates that pay off at the sale

When you are thinking of selling your home because you need a bigger home or have to relocate due to your job, a little bit elbow grease can pay off at closing.

When you would like to get a good price for your home your first goal should be how to impress your future buyer without break the bank. There are easy things to do to achieve your goal and they do not cost only little money when you do it yourself.

You can start decluttering your home. You have to do it anyway when you move out therefore start this task as soon as you have made the decision to sell. That helps the potential buyer to feel at home right from the start.

Do some cosmetic updates in the kitchen and in the bathroom. That will also make a great impression. Fix dripping faucets or replace kitchen cabinet’s door knobs with new ones or the mirror in the bathroom.

Also a little bit painting with neutral colors in the kitchen or bathroom is an inexpensive option to boost your home value.

Last but not least do not forget to keep your yard nicely maintained, mow your lawn and cut the shrubbery and the potential home owners will stand in line to see your home and make you move.

For more updating tips send us an email at andrea@florida-informations.com