Archive for the ‘buying tips’ Category

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217,726 Reasons to Buy a Home Now!

June 10, 2015

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The inaugural Opportunity Cost Report was released recently by realtor.com. The report explained that “with interest rates and home prices expected to climb in the next year, the financial penalties of delaying or forgoing a home purchase in today’s market have become very steep”.

The report estimates that, based on today’s dollars, the average purchaser would accumulate $217,726 in increased wealth over a 30-year period.

(You can get the projected wealth increase for almost 100 metros here.)

What could this mean to someone sitting on the fence waiting to buy?

Experts believe that both home prices and mortgage interest rates will increase over the next twelve months. Obviously, if this does happen, the monthly cost of a home a year from now will be dramatically higher than it is today. The Opportunity Cost Reportbreaks down exactly how much a purchaser could lose over increments of one year and three years. Here are the results based on an average purchaser in the U.S. delaying their purchase:

The Cost of Waiting to Buy | Keeping Current Matters

Bottom Line

If you are ready, willing and able to buy a home, waiting doesn’t make sense.

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Cash is KING for real estate & other random real estate thoughts.

August 24, 2012

This may be a wild and wooly post but I’m just going to share whatever is on my mind today:

What in the world is going on in real estate in Orlando? I’m glad you asked. It’s a rather unique market right now with super low inventory of homes for sale and still lots and lots of distressed properties on the market. Not as many foreclosures but a lot more short sales.

I am seeing multiple bids on homes that are in move-in condition. I listed and sold a home in ONE day recently that was located in Winter Park and was completely remodeled. We had a bidding war and over 20 showings in two days. Absolute madness. What this tells me is that there are so few homes available that are in pristine condition that people will swarm over the good homes for sale. Note to Sellers: FIX YOUR HOUSE UP and make it shine. It paid off for my Sellers in a BIG way.

I recently had a chance to speak with an appraiser (yes…he actually spoke to me) and he told me that 8 out of 10 homes he appraises are fixed up and renovated. He hasn’t appraised a dumpy house in a long time. It is interesting to note that most people are looking for that type of home. After buying a home with 20% down, there isn’t a whole lot of extra cash leftover to fix up the home. So have your home in beautiful condition and watch the offers come in.

There are still distressed homes for sale and while lenders are putting lipstick on these pigs (i.e. paint and carpet)…they are still often showing signs of neglect. The interesting thing is that people are still bidding high on foreclosed homes. I am not sure what is going on here because who wants to OVERPAY for a home anymore? Have buyers lost their minds? Foreclosures are NOT a “deal” at the moment.

Finally, investors are still out there trying to work creative financing and get all sorts of hinky transactions closed. Flippers are back. I won’t deal with anything that may appear unethical and some of these deals just don’t seem “right” to me. Best to move forward with buyers who are working the deal with integrity. That is not to say that investors are not ethical…I just have not felt comfortable with the ones that have approached me lately.

Finally, CASH is KING. If you want to guarantee your offer will be accepted, I hope you are lucky to have cash. People know that the mortgage process is still dicey with resulting delays as things move through underwriting. If you have CASH…you have a guaranteed deal once you pass the inspection phases.

That’s real estate in a nutshell for Orlando…things are moving and selling but we have precious little homes available for sale. If you want TOP DOLLAR for your house – now is the time. I have not seen prices this good in a long time. Let’s get selling…

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Household Tips

July 28, 2008

by Linda Hutchinson

I am here today to share some household tips with you. OK…not the kind of tips you would expect.  To be honest. I don’t do dishes, don’t cook and have help around the house. Too much darn real estate to sell out there and I couldn’t care less what stain peroxide will remove.

But I do want to give you some buying tips for finding just the right house for you:

  1. Get pre-qualified. This is important. Too often I have buyers who come in ready to purchase a home and they think they know their price range. In today’s lending world, you have to sit down with an expert and talk to your lender. They can assess your financial situation and let you know, quickly, at what price point you will be comfortable. Surprisingly enough, it’s usually not the home price that matters. It is how much cash you have to put down and how much you have to pay per month.
  2. Narrow your search. There are so many listings in Orlando and many of them are luxury homes and many of them are homes in the $250,000 range. I have NEVER seen so many homes under $300K that were this high quality. If you were wondering if you could afford a nice home in the low $200K range…now is the time. They are out there and they are fabulous. BUT…you have to know where you want to live. Looking all over God’s green earth will only confuse you and wear out your agent. Chose a location and go for it!
  3. Be prepared to compromise. This may come as a shock to some but NO HOME IS PERFECT. There are many beautiful homes but not one has everything. I have not yet met a buyer who said this home was absolutely perfect. Most buyers end up with homes that are close to perfect and most importantly, make them happy. That is true perfection.
  4. Buy something you can afford. You don’t have to spend a fortune and you don’t have to spend up to your maximum loan limit. Buy what you will find is reasonable and enjoy life a lot. It is better to buy something you feel fits your budget than to buy a home that leaves you cash poor.
  5. Be satisfied. As my Dad always says…there is always someone with more than you and someone who has less than you. Be grateful for what you have and enjoy living. To borrow Martha’s phrase…It’s a good thing!

Cheers, Linda