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February 23, 2017 in Buyer info, Buying a condo, Buying a Home, first time home buying, home buyer info | Tags: Buyer info, Buying a condo, buying a home, first time home buying, home buyer info | Leave a comment
This post below has some great information on how to choose an inspector when purchasing your next home. I would also add to schedule your home inspections as soon as possible after your offer is accepted. You want to allow enough time for repairs to be completed before closing. If there is too much wrong with the house, you will want to move on quickly to find the right house for you.
So you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. More often than not, your agent may have made your offer contingent on a clean home inspection.
This contingency allows you to renegotiate the price paid for the home, ask the sellers to cover repairs, or even, in some cases, walk away. Your agent can advise you on the best course of action once the report is filed.
How to Choose an Inspector
Your agent will most likely have a short list of inspectors that they have worked with in the past that they can recommend to you. Realtor.com suggests that you consider the following 5 areas when choosing the right home inspector for you:
- Qualifications – find out what’s included in your inspection & if the age or location of your home may warrant specific certifications or specialties.
- Sample Reports – ask for a sample inspection report so you can review how thoroughly they will be inspecting your dream home. The more detailed the report, the better in most cases.
- References – do your homework – ask for phone numbers and names of past clients that you can call to ask about their experience.
- Memberships – Not all inspectors belong to a national or state association of home inspectors, and membership in one of these groups should not be the only way to evaluate your choice. Membership in one of these organizations often means that there is continued training and education provided.
- Errors & Omission Insurance – Find out what the liability of the inspector or inspection company is once the inspection is over. The inspector is only human after all, and it is possible that they might miss something they should have seen.
Ask your inspector if it’s ok for you to tag along during the inspection, that way they can point out anything that should be addressed or fixed.
Don’t be surprised to see your inspector climbing on the roof, crawling around in the attic, and on the floors. The job of the inspector is to protect your investment and find any issues with the home, including but not limited to: the roof, plumbing, electrical components, appliances, heating & air conditioning systems, ventilation, windows, the fireplace & chimney, the foundation and so much more!
They say ‘ignorance is bliss,’ but not when investing your hard-earned money in a home of your own. Work with a professional you can trust to give you the most information possible about your new home so that you can make the most educated decision about your purchase.
January 12, 2017 in Buying a condo, Buying a Home, Economic News, first time home buying, home buyer info, Lender Info, Real Estate Market | Tags: Buyer info, Buying a condo, buying a home, Economic News, first time home buying, home buyer info, Lender info, Real Estate Market | Leave a comment
It appears that Americans are regaining faith in the U.S. economy. The following indexes have each shown a dramatic jump in consumer confidence in their latest surveys:
- The University of Michigan Consumer Sentiment Index
- National Federation of Independent Businesses’ Small Business Optimism Index
- CNBC All-America Economic Survey
- The Conference Board Consumer Confidence Survey
It usually means good news for the housing market when the country sees an optimistic future. People begin to dream again about the home their family has always wanted, and some make plans to finally make that dream come true.
If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:
“We think that conforming 30-year fixed rates probably make it into the4.625 percent to 4.75 percent range at some point during 2017 as a peak.”
Svenja Gudell, Zillow’s Chief Economist:
“I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75 percent.”
Mark Fleming, the Chief Economist at First American:
“[I see] mortgage rates getting much closer to 5 percent at the end of next year.”
Lawrence Yun, NAR Chief Economist:
“By this time next year, expect the 30-year fixed rate to likely be in the 4.5 percent to 5 percent range.”
If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.
December 2, 2016 in Buying a condo, Buying a Home, first time home buying, home buyer info, Mortgage info | Tags: Buying a condo, buying a home, first time home buying, home buyer info, Mortgage info | Leave a comment
Many first-time home buyers receive down payment assistance from a family member or close friend, but they may not realize there are specific guidelines they must follow when they take money from others for a home purchase.
Read more: Help Clients Get Smarter About Ownership
First off, the down payment must be considered a gift. If it’s considered a loan, the lender must then factor that into the mortgage approval amount, and your buyers may then qualify for less than they may have needed to.
Your buyers will need a gift letter from the person or persons who gave them the money. The person who gifted your buyer the money will need to state on paper that he or she does not plan on asking for the money back in return and that it is, indeed, a gift.
“The gift letter is very serious,” says Casey Fleming, mortgage adviser and author of “The Loan Guide: How to Get the Best Possible Mortgage.” “While it is doubtful that a lender would ever audit a file after the fact to see if the recipient is paying the donor back, if the transaction goes bad, you might very well find yourself with a subpoena in your hand.” Remember, you cannot lie on a mortgage application. It’s a felony.
The gifter may also be required to provide bank statements, possibly even up to two months of statements from their account.
Your buyers also likely will want to get the down payment in advance during the early planning stages of their house hunt. That could also help save them from possible delays later on.
“If the funds are ‘seasoned’ — meaning that they’ve been in the account long enough so that the last two bank statements don’t show the deposit — the gift does not have to be addressed,” Fleming says.
Also, there is a limit to how much your buyer can be gifted tax-free. Any gift of $14,000 and up will face a tax bill, under current rules.
That said, “it is $14,000 per year per donor, so a couple could give $28,000 ($14,000 from each) to their child,” Fleming says.
Source: “Getting a Down Payment as a Gift? Avoid the Mistakes That Could Mess You Up,” realtor.com® (Nov. 28, 2016)
January 16, 2016 in Adventures in Central Florida, Arts & Entertainment, Business, Buying a condo, Buying a Home, central west Florida, Florida, History, Interesting tidbits, Just for fun, Local History, Luxury Properties, Pinellas County, Quality of life, Real Estate, Real Estate Market, St Pete, St. Petersburg, St. Petersburg, Florida, Tampa Bay area, Things to do & See, Things to do and see in St Petersburg, Vacation or Second Homes, Waterfront Homes, Women in Business | Tags: Arts and Entertainment, Baby Boomers, Buying a condo, buying a home, central west Florida, Florida, Interesting Tidbits, Just for fun, Local History & Lore, Luxury Living, Luxury Properties, Quality of Life, Real Estate Market, Retirement Living, St Pete, St Petersburg, Things to DO & See, Vacation Homes, Waterfront homes | Leave a comment
See what’s happening in St Petersburg, Florida’s Old Northeast neighborhood and downtown St Pete by checking out the latest issues of the St. Petersburg’s Northeast Journal . There are articles on local events, people, history, real estate, the arts, restaurants and much more. The journal is bi-monthly and has been published since 2004.
January 14, 2016 in Buying a condo, Buying a Home, buying Your Home, Condos, Florida, HOA, Sellers, Selling a home, Selling Your Home | Tags: Buyer info, Buying a condo, buying a home, Condos, Florida, HOA, Sellers, Selling Your Home | Leave a comment
January 2016-Here’s an upcoming issue for homeowners in Florida.
When you’re selling or refinancing your home, if you’re part of a condo association or a homeowners’ association, you need to provide the buyer or lender with something called an “estoppel certificate”. That is a statement of your financial status with the association: Are you current on your association dues? Are there any liens on your home? Since buyers and lenders don’t want to be surprised, providing them with an estoppel certificate is reasonable and a good business practice.
Florida law does allow condo and homeowner associations to charge a “reasonable” fee to prepare one of these estoppel certificates. The issue is what exactly is “reasonable”.
Condo and homeowner associations are required by law to maintain current records of any assessments or liens on the properties they oversee. So the work required to put together an estoppel certificate is fairly minimal. Many associations charge a reasonable fee – $50 or $100 – to provide the certificate. Others, however, have turned this into a revenue stream, charging over $1,000 in some cases to provide a simple piece of paper.
Well, during the 2015 session, Rep. Kelli Stargel (R-Lakeland) and Rep. John Wood (R-Winter Haven) have introduced bills to cap the amount charged by condo and homeowner associations. They’re looking to reintroduce that bill in the 2016 session. The pertinent facts are:
- $200 cap on fees for any homeowner who is not delinquent on paying association dues and fees;
- Up to an additional $200 if the homeowner is delinquent; and
- Up to $100 for an expedited certificate.
Plus, the bill would require associations to provide the estoppel certificate within 10 days, and have the certificate be valid for 30 days.
On the one hand, this seems like a no-brainer to ensure that consumers aren’t being overcharged. $1,000 just to prepare a piece of paper, with information the association already has, does seem like a stretch. On the other hand, there are people who wonder if this isn’t just another example of government intervention and regulation into private businesses. And of course, there are people who think that the bill doesn’t go far enough: even $200 cap seems too high for them.
If you’re a homeowner who belongs to a condo or homeowner association, I’d love to get your take on this. You can email me at AnnalisaWeller1@gmail.com or call me at 727-804-6566.
January 6, 2016 in Buying a condo, Buying a Home, Currency Exchange, International Business, International Buyers, International Clients, Investment Properties | Tags: Buying a condo, buying a home, International buyers, International investors, International Properties | Leave a comment
The following informative article was recently written by a dear friend of mine, David Nixon-Business Development Executive at Currencies Direct.
When you buy an investment property in the US you’re probably motivated by a number of reasons.
Perhaps you want a destination for family vacations, maybe it gives you an additional income from rentals and – of course – there’s always the likelihood of your property increasing in value.
Buying a property in the US is, in effect, an investment in the US economy. That’s why Wednesday’s Federal Reserve announcement of the first interest rate rise since the birth of the iPhone is not necessarily a bad thing.
With economies all over the world in turmoil, the US dollar continues to be a safe haven. The decision to raise rates was data dependent, and that data has been positive enough to bring about this change: Compare that to the Europe, Canada, Brazil or China where troubles in the respective economies have been well reported.
If you want to buy an investment home in the US, it means you should be keeping a close eye on not just the fluctuating property prices, but also on the strength of the US dollar. The US economy has gone from strength to strength over the last 18 months, especially when compared to the countries of some other major currencies.
Take this example:
In the last 18 months, property prices in the vacation property haven of Polk County in Florida have gone up 8.6%. For a realtor this is an excellent selling point to attract new international clients.
It means that a property bought in June 2014 for $200,000 is now worth around $217,200. Typically, expectations are that property values will continue to rise steadily.
The currency rates are far more volatile. They can go in your favor or just as easily move against you. Look at the difference of major currencies in the same time frame (June 2014 – November 2015):
Great British Pound Sterling
US$200,000 in June 2014 was worth around £117,647. Today, it’s worth about £133,333 – an increase of 12%.
US$200,000 in June 2014 was worth in the region CA$216,000. Today, it’s worth approximately CA$268,000 – an increase of 20%.
US$200,000 in June 2014 was worth roughly €146,000. Today, it’s worth around €188,000 – an increase of 22%.
$200,000 in June 2014 was worth somewhere around R$440,000. Today, it’s worth about R$830,000 – an increase of 53%.
This data could be great for those realtors who want to attract listings, and could also be an indicator to those of you who are foreign property investors that now is an excellent time to sell.
However the same data, coupled with continued uncertainty in the rest of the world, may also be a persuasive argument for now being the right time to invest in a property in the US.
What’s the difference between a good, mediocre, and downright bad homeowner association? It’s not entirely a matter of opinion. There are specific items to look at and questions to ask that can tell your buyers whether they’re buying into an HOA that will only give them headaches. This information is particularly important in condominiums, where the HOA usually is responsible for maintaining the exterior of the buildings. If they aren’t careful, your buyers could face paying a big special assessment for years of neglected capital improvements after they close. The bill they’re typically stuck with could be anywhere from $1,000 to $30,000. (In some cases, they’ve gone over $100,000!) Help your buyers perform due diligence before closing by assisting them in identifying issues to minimize the element of surprise. While this isn’t intended to be legal advice and there may be other items to look at other than those mentioned in this article, this should give you ideas for how to advocate for your buyers when dealing with HOAs.
Look at the Community as a Whole
Is it run-down? Don’t solely focus on the one property your buyer is purchasing. When the HOA is responsible for maintaining the buildings, check out neighboring units and common spaces along with the home your buyer is purchasing. Here are some telltale signs of an HOA that isn’t on top of its responsibilities:
- Are the fences rusting?
- Are the building signs in disrepair?
- Does the asphalt look like gravel?
- Are the pool and other amenities clean and in good working order?
- What is the age and condition of the roofs?
- Do the buildings need to be painted?
- Are there staircases and balconies in poor shape that the HOA is responsible for maintaining?
- When were the buildings last treated for termites? Have they been neglected, with a higher risk of unknown termite damage throughout the community?
- Are there problems with siding?
- Are there grading issues causing flooding?
- What is the condition of the gutters, fascia, and other fixtures?
Look at the Reserve Study
First of all, make sure you and your buyers know what this is. A reserve study details an HOA’s long-term funding plan, showing, most important, how much it currently has to offset maintenance costs. It’s the most important tool to determine the financial health of the HOA.
- What is the percent funded? Zero percent to 30 percent means it’s at high risk of a special assessment; 31 percent to 70 percent is a medium risk; 71 percent to 100 percent is low risk.
- How much does the reserve study recommend the HOA saves each year, and how much is the HOA actually saving?
- Has the HOA been following the reserve study and making capital improvements?
- How much money can you foresee being needed compared to what the HOA has saved?
Proactively Ask Questions
Encourage your buyer to call and ask the HOA or HOA management company questions. You may need to make it a condition of the purchase contract that the seller will provide the answers if the HOA management company won’t answer you or your buyer. Keep these questions in mind:
- Have there been any special assessments before? Get the details and ask if there is discussion about having another one.
- Have there been any lawsuits or are any expected? Check court records.
- How many insurance claims has the HOA had?
- If roofs are an HOA responsibility, are there plans to transfer the burden to the owner? How many roof repairs have there been in the last couple years?
- Are there plans to change the HOA’s covenants, conditions, and restrictions?
- Have there been any repairs from extensive water or termite damage in the last couple years?
Your buyer must review the HOA’s covenants, rules, meeting minutes, violation policy, collection policy, and other aspects. Make your buyers a checklist to help them do their due diligence. Help them become an educated buyer on HOA living.
Ignorance isn’t bliss for your clients — or you — when it comes to HOAs. Agents and sellers could potentially avoid lawsuits by making buyers aware of all issues before they close on a property in an HOA. Remember, approximately 70 percent of HOAs are underfunded and in poor condition due to lack of maintenance. These are not HOAs “protecting our property values.”
This problem is not going away by keeping our eyes closed. The first step in improving HOAs is having real estate professionals who will educate buyers on how an HOA should operate. Buyers need to be involved and concerned with the HOA business that they are becoming a part of before closing — and they need to stay involved after closing.
December 10, 2015 in Beaches, Boating, Buying a condo, central west Florida, Clearwater Beach, Condos, Florida, How cool is this?, Just for fun, Luxury Lifestyle, Pinellas County, Quality of life, Real Estate, Reflections, St. Petersburg, Florida, Vacation or Second Homes, Waterfront Homes | Tags: Beaches, Buying a condo, Clearwater Beach, Condos, Florida, Luxury Properties, Pinellas County, Quality of Life, Real Estate, St Petersburg, Waterfront properties | Leave a comment
One of the perks of being a Realtor in the Clearwater Beach-St Petersburg area is the view on your way to and from work. The other day I had a home inspection on a lovely waterfront condo in Dunedin. Yes, it took over an hour’s drive to get there but oh, how gorgeous was the scenery once I arrived. By the way, the temperature was 74 degrees and sunny with a nice breeze. Not bad for December. Ah, life can be so good!! Thank you.
If you are in the market for a house, you’ll likely want to make sure you have a roof that won’t leak, a solid foundation, proper wiring and so on. But what about the things not covered by the inspection? Sometimes it’s these less obvious factors that end up making the biggest impact on your day-to-day experience of a house — things like the quality of light, flow from room to room and the amount of time it takes to shovel the driveway. Here are 20 things to look for — and happy house hunting!
1. Indoor-outdoor flow. The ease with which you can move from indoor to outdoor living areas and back again can make a huge difference in your day-to-day experience of living in a home. If this is important to you, look for French, sliding or accordion glass doors leading from the main living spaces to the outdoors.
2. Size of rooms. Not too big, not too small. Channel your inner Goldilocks to nail the just-right room size for your lifestyle. Imagine setting up your own furniture in the rooms as you walk through — bring measurements if you can.
3. Interior layout. Like indoor-outdoor flow, the interior layout, or floor plan, can have a big effect on your daily life. Walk through the rooms, imagining your typical day. Are there sharp corners and narrow passages to navigate, or is there an easy, natural flow from one room to the next?
4. Lot grade. The steepness of a lot is in some ways even more important than its size. After all, what good is an acre if it’s too steep to walk on?
Think about not just what you want today but what you might want in the future. If down the road you were to decide you wanted to add a deck, an extra room or a backyard studio, would that be possible on your lot?
5. Window size and placement. You can of course can add and modify windows, but it’s not the cheapest change to make to a house. Ideally, look for a home with ample, well-placed windows.
6. Amount of natural light. This is a big one, yet it’s surprisingly easy to overlook when attending open houses. Once you have a few homes on your list that are strong contenders, make appointments to give them a second look at a different time of day. This will give you a fuller picture of what the light is like in the home.
7. Regional weather considerations. Live somewhere with cold winters? You may want to put an attached garage, covered entrances and an easy-to-shovel driveway on your checklist. Those in warm climates may want to focus on shaded walkways and cooling trees.
8. House orientation on lot. The way a house is positioned on its lot affects how much natural light it gets and can influence heating and cooling bills as well. A south-facing home will maximize natural light — though a north-facing home can be just as bright if the main living space is in the back of the home and there are ample windows all around. In hot climates a north-facing home with deep eaves may be preferable to keep your house cooler.
9. Driveway length and width. It seems silly to even consider this — until you buy a house and realize your car won’t fit in the ridiculously narrow driveway, or you have to shovel that extra-long driveway after a mega snow storm. (The too-narrow driveway? Yep, that happened to me.)
10. Street parking. Though street parking is not usually an issue in the suburbs or rural areas, some towns and cities have strange rules and regulations regarding it. Where I live, for example, we are not allowed to park overnight in front of our own house. (Combine that with the too-narrow driveway situation described above, and oy vey!)
12. Architectural details. Great architectural details, like exposed beams, beautiful molding and mantels, will make everything else you do to your home look even better. Start with good bones.
13. Heating and cooling systems. While not as big an issue in temperate climates, if you live somewhere that gets very hot in summer or cold in winter (or both), good heating and cooling systems will make life much more pleasant. And because putting in central air conditioning or heating can cost a fair amount and the work is disruptive, finding a home where it’s already in place will save money and hassle.
19. Closeness of neighbors. Though the general area (city versus suburb) has much to do with how close your neighbors are, there can still be a big difference between how private one house feels over another. If privacy is important to you, be sure to check the views from every window and walk the perimeter of the property to get an idea of how close you will be to your next-door neighbors.
20. The neighborhood. This may be where you started your search, but have you really considered all aspects of your potential new neighborhood? School districts are of course important for families with kids, and proximity to work and family closely follows on many folks’ wish lists. But you may also want to look into how walkable (or bikeable) your neighborhood is, what community amenities (libraries, parks) are nearby and what public transportation is available.
September 18, 2015 in Buying a condo, Buying a Home, Condos, Luxury Lifestyle, Luxury Properties, St Pete, St. Petersburg | Tags: Buying a condo, buying a home, Condo, Luxury Living, Luxury Properties, St Pete, St Petersburg, St Petersburg Florida | 1 comment