In today’s market listings are getting multiple offers. The sellers are happy, but only one buyer and their agent will be happy. Let’s look if you’re doing everything you can to be the successful bidder on the next house…. 1. Never offer less than the listing price (unless there is only one offer) Most houses are selling over the listing price. I talk to a lot of agents from all over the country and what we’re seeing is about 10% give or take over the list price is what the houses are selling for. So how do you put together an offer where you win? 2. Use an Escalatory Clause – okay so what is this you ask. It is a clause that is added to the contract stating that you will pay more than any other offer that is received by the seller up to a certain amount. So on a $200,000 house you’d offer up to 10% more or up to $220,000. You also do it in $1,000 increments. Say the seller receives a contract for $210,000. Your Escalatory clause would state that you would beat any other offer by $1,000, up to $220,000. 3. So what about the appraisal? Well if you’re paying cash, you don’t have to worry about the appraisal, but if you’re financing the home you will have to come up with the difference between what the house appraised for and whatever loan to value amount you’re doing. So the $200,000 house only appraises for $210,000 but your contract is for $220,000. So if you’re putting 20% down, the bank will only lend 80% of $210,000 which is $168,000. So you’d have to come up with $52,000 instead of the $44,000. A difference of $8,000. A lot of buyers are waiving the appraisal, or a certain amount of the appraisal. It’s called a gap appraisal addendum. This means that the buyers will pay a certain amount over the appraised value. So in the case above the buyers would guarantee to pay up to $10,000 over the appraised value. If the house doesn’t appraise for $210,000 then the buyer and seller have to renegotiate the price. 4. What about the repairs? Many buyers are getting a home inspection, but waiving any of the repairs. This way the buyers know what they are getting into as far as what will need to be done to the home after closing, but not making the seller responsible financially for those repairs. If something major comes up the buyers can always walk away, but hopefully something can be worked out.  5. What about paying some of the sellers closing costs? This is totally backwards from what used to happen. But the seller has a dollar amount in mind that they want to net for the sale of their home. By offering to pay some of the sellers closing costs, you are not offering an inflated price for the house and therefore may not have to worry about the appraisal, but the sellers are still walking away with the same amount of cash. 6. You have a pre-approval letter from a local, reputable lender. The last thing a Realtor wants to see on an offer is a pre-approval letter from some institution they’ve never heard of before and it’s located 7 states away. Best to use a local lender with a great reputation. Want to know more about how to submit a winning offer, give me a call!

⋅ Hurricanes And Homeownership: The Facts on Florida Living ⋅

How would you like to be given $15,000 to help you buy your first home? If you’re planning to buy in Duval County there is a mortgage program in place through the state of Florida that offers up to $15,000 in down payment or closing cost assistance. The money is received by the buyer as a $15,000 second mortgage. Each year one fifth or $3,000 is forgiven. So if you own the home for 5 years, all of the mortgage is forgiven. First time Homebuyers are defined as someone who has not owned a home in the last three years. So you could have owned a home before, but sold it and have been renting for the last few years. You would still qualify as a first time buyer. This is perfect for the first time buyer who may not have been able to save up enough money for a down payment. Want to know about first time home buyer programs in Florida , or if you qualify? Call , text or email me and I’ll put you in touch with a lender who can answer all your questions.

Have you thought about retirement and where you want to live? If the answer is Florida, you’re not alone. Why wait to buy your home after you retire? Several clients of mine have purchased homes prior to retirement. Why would someone do this? 

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There are several financial reasons why buying and owning a home are good for you. Besides this last recession, most of the time a home increases in value over time. With each mortgage payment you make, the amount of the mortgage goes down and your “equity” in the home increases, all the while the value of the home is increasing, too. This means owning a home is like a forced savings account. When it comes to paying income taxes, people who own their own home are allowed to deduct the amount of interest that they paid on their mortgage, along with the property taxes on that home. This means more money in your pocket and less goes to Uncle Sam. Studies of people who own their own homes versus those who rent show a lot of other positive outcomes for homeowners. Take a look at the list below:  Homeowners tend to be more involved in community & national They have a greater awareness of the political They have a greater attachment to their neighbors and neighborhood Children living in homes that are owned have higher test scores and higher graduation rates Children living in homes have lower teenage delinquency rates Homeowners report an increase in positive outlook on life Homeowners also report higher self-esteem, happiness, and higher perceived control over their lives. Homeowners are less likely to become crime victims Housing prices are higher in neighborhoods with higher rates of homeownership Homeowners make better employees by taking less time off work Homeownership is the American Dream. It’s one the things that make this such a great country!

You’re gathering all your income and expense information for your CPA or tax preparer: W-2s, 1099s, etc. You’re dreading spreading out all your receipts on the dining room table. Sound familiar? Maybe you need a different perspective. If you’re getting a refund, that money could be used towards a down payment on a house purchase. Once you’ve met with your tax preparer and have the return done, you should call your mortgage professional and see if you qualify for a mortgage. Most people are afraid that they don’t have enough money saved up to buy a house. But, your tax refund could be just the money you need to make owning a house a reality. Plus, there is a program available in Duval County for first time homebuyers (or people who haven’t owned a home in the last 3 years). This program offers $15,000 in down payment assistance. If you stay in the house for 5 years, then the $15,000 is forgiven. So, in essence it’s free money from the state of Florida. If you have any questions, please give me a call at 904-834-9770 .