Sarasota Home Prices Across Time

September 17th, 2014

Cost-Across-Time2

Looking back through time we always see what we should have done. It is very hard to predict the future as anything can change at any time. What we can do though is see just what history has shown us so we can make sure not to repeat ourselves. Everyone knows that history will repeat itself, but as we can see from the infographic above, we may want to make sure that we secure our Sarasota home prices before they do.

The infographic above displays over the past 5 decades the average mortgage rate on a new home at $200,000. Obviously back in 1970, 1980 and the 1990′s, $200,000 was a  good amount to be spending on a home. Not many people went over that price and for good reasons. When looking at the prices for the previous months with the average mortgage rates and a home price of $200,000, it seems like a better time than ever to look in to a new home.

Looking at the mortgage rates, you can see that in order of most expensive to least expensive we have the:

  1. 1980′s
  2. 1970′s
  3. 1990′s
  4. 2000′s
  5. Current Rates

Even if we were to look at the cost of the $200,000 home over time, the order of most expensive to least expensive once again is:

  1. 1980′s
  2. 1970′s
  3. 1990′s
  4. 2000′s
  5. Current Rates

When looking at this infographic, the only cost per month that is below $1000 or $12,000 a year, is the current day mortgage rates. We all know that the Sarasota home prices have increased over the past two years since bottoming out in 2008 and getting the most home for your money is always a top priority. When looking to purchase a new home though, it seems that now is actually the best time to get a mortgage than it has been in the past 45 years. The mortgage rates are projected to rise in the near future, but if you want to be ahead of the curve, it seems that it would be easier to be safe than sorry when it comes to your money, your equity and your wealth.

Sarasota home prices will rise and mortgage rates will rise as well. As the economy picks back up, both of these will increase even more, so now may be the best time to look in to that home you have had your eye on than ever. We do not know if the 1980′s above 10% rates will ever come back, but we do know that if you can get the rate for a third of the cost, then we would definitely suggest jumping on these record low rates.

Renting Vs. Buying a Sarasota Home

September 9th, 2014

Renting Vs. Buying a Sarasota Home

Renting and buying are always the two forefronts that lead our Sarasota Real Estate Market. On one end you have the people who want to rent in order to be able to leave whenever they would like and have the option to bounce around from place to place. On the opposite end of the spectrum, you have the home buyers who are looking to raise a family, build equity and live the “American Dream” for however long they wish to in their home. At the end of the day, neither way is a bad choice. There are some individuals that would rather rent their entire life and enjoy that part of living, but if it were up to us, everyone would own a Sarasota home.

When looking at the infographic, you have two distinct categories: Historically and Now.

Rent-vs.-Buy-1500

After looking at this infographic for awhile, there are three main things that pop out to us:

1). The current percentage of your income needed to rent a Sarasota Property is higher than the percentage of your income needed to afford a home

2). The only percentage that has decreased for the 2014 prices in comparison to the historical prices is the income needed to afford a median home

3). Even if you look at historically or now, the amount that you need to rent is still going to be higher than the amount that you need to own a home

The one line that we really love about this infographic is that whether you are buying or renting, you are still paying a mortgage. Most potential home buyers will not notice this at the end of the day, but you are having to pay a mortgage when you rent, it just is not written as the word “mortgage”. Whether you are or are not looking to buy, just know that historically, the mortgage rates are at their lowest they have been in decades. You may want to spend less of your hard earn income on rent and look in to owning a Sarasota Home instead.

5 Questions To Ask Every Sarasota Real Estate Agent

September 4th, 2014

5 Questions To Ask Every Sarasota Real Estate Agent

The process to purchase or sell a home can be a long and tedious one. Working by yourself as a for sale by owner can make this process even more taxing than it needs to be. This is why we definitely suggest working with a Sarasota Real Estate Agent on both ends of the deal. If you are a buyer, you may not be aware, but you will not pay a cent more for a real estate agent when you purchase the property. The agent’s commission will actually come from the seller, so the amount you pay will not change at all with or without an agent.

If you are a seller, you may be wasting more time and money than you expect by not utilizing an agent. It is statistically known that a Sarasota real estate agent can actually get you more money for your property than if you sell it buy yourself. Of course the amount of time that it takes to show the property, market the property, do the paperwork, contact the closing company, title company, lenders, mortgage, etc is enough for a for sale by owner to throw in the towel. But what should you ask the agent to make sure that you are getting the best realtor for your property or buying process?

Here are some of the main questions that we may suggest asking your next Sarasota Real Estate Agent before you sign on to make them your realtor:

  1. Where are home prices going and will they appreciate over the next few months, years, etc?
  2. Should a 1st time buyer or move up buyer save for a bigger down payment prior to purchasing the home?
  3. In 12 months, where are the 30 year fixed mortgage rates going to be?
  4. Why should I use an agent when I can shop for a home myself online?
  5. How great of a benefit is owning a home for my family?

If your real estate agent cannot answer these five questions in a detailed and calm manner, you may want to steer clear of signing the documents. Knowing that your Sarasota real estate agent can answer these questions fluently will give you a piece of mind that you are in good hands and can rest assured that the process will be an easy one for you and your family.

Stay Away From The Renter’s Trap In Sarasota

August 28th, 2014

Many young adults fall in to the trap that they can not afford a Sarasota home so they will settle for renting out an apartment. They will then lease out the apartment, condo, townhome, or even home and be subjected to a loss of equity in their name by throwing money away. In a recent release from Zillow, as of August 2014, the United State’s is currently seeing better affordability in the real estate market than in the renting market.

Here are some shocking statistics that actually came out from that survey:

  1. Renters paid approximately 29.5% of their monthly income towards rent
  2. Home Owners/ Home Buyers only paid 15.3% towards they mortgage on a home

During the pre-bubble days (2007 and before), people renting right now are actually paying 24.9% more than what they would have back then, whereas the Sarasota home owners are paying 22.1% less.

As rents increase, it is getting harder and harder to live a normal American life with less income in your bank account. According to the Chief Economist at Zillow:

“The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates… As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters.”

In all honesty, you may actually have enough saved up and ready to use on the down payment as HousingWire noted:

“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment. 
It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” 

If you are still not thinking that you are able to afford a Sarasota Home, look at what Freddie Mac had to say on the issue:

  1. Home owners can get a conventional mortgage with just 5 percent down
  2. During 2009 to 2013, the down payments of less than 10 percent more than quadrupled for Freddie Mac
  3. One in Five home owners who borrowed money put down less than 10 percent

Overall, you can afford that property that you want. Don’t get caught in this rental bubble and throw money towards something that will not provide equity. Instead put money towards a Sarasota Home and enjoy the equity that you will get towards this property.

The True Cost of Waiting To Buy Your Sarasota Property

August 20th, 2014

The True Cost of Waiting To Buy Your Sarasota Property

Looking at analytics on the housing market is exactly what we love to do. Seeing the trends that are occurring in the Sarasota real estate market make it that much simpler to purchase. Waiting to purchase a home is nothing new though. People have been doing that for years and the chance that this will end any time soon is not very high. But if you are a part of the Sarasota property owners who are wanting to move, but do not think that now is the best time, here are some statistics that may change your mind.

If your dream house currently is $250,000 today, the current mortgage rate that you can receive is 4.12%. This will come out to make your month payment with interest $1,210.90. Now if you were to wait one year, with the way that economist have stated the market will rise, the same home will more than likely sell for $270,000 with a 5.3% mortgage rate. After doing the math on a 30 year mortgage, that payment per month is $1,499.32.

This will actually increase your housing payment each month by $288.42. Now maybe waiting is what you wish to do and you want to see if the market does go in the direction that economist are stating, but losing $288.42 per month is almost equivalent to throwing away $10 every day just for the heck of it. That can be a car payment for the entire month, a cup of $2 coffee everyday with $8 left over for lunch, dinner or other spending, or even a way to save up for a nice vacation at the end of the year.

However you spin it, even through the 30 year loan, you will be looking at an additional $103,831 spent on the home. That is due to the $3,461.04 you will be spending each year multiplied by 30. Of course no one can predict the future, but when looking at what may happen next, it is safe to say that economist may have the best theory on what your Sarasota Property may be worth!

Harvard Gives 5 Reasons To Purchase A Sarasota Home

August 14th, 2014

In the recent study from Harvard University, the managing director of the Joint Center of Housing Studies gave his top five reasons as to why owning a home now was a smart financial decision. Of course, our theory has always been that when someone from Harvard tells you to do something financially, it may be a wise decision. Here are the 5 reasons why owning a Sarasota home is a smart financial decision:

1). The Housing Market is the only Leveraged Investment you can do

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2). In the end, you will pay for your Sarasota Home whether you own or rent

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”

3). Owning a property is another form of saving equity

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4). You will receive tax benefits while owning

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5). Owning can help with the inevitable inflation

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

What we have taken from this reading is that owning a Sarasota home makes perfect sense for many people, and now it makes perfect financial sense as well!

How Does Sarasota Home Ownership Impact Net Worth?

August 7th, 2014

How Does Sarasota Home Ownership Impact Net Worth?

Home ownership has always been a great way to build up your equity and net worth. Over the past few years though, owning a property has lost most of it’s pizzazz as the ultimate way to increase any families net worth. When looking in to any type of investment though that will hold the strongest, owning a Sarasota home should be at the top of your list.

The Federal Reserve did recently speculate on how great of an investment home ownership truly is for your potential net worth. Here are just a few of their findings from the recent report.

Federal Reserve Sarasota Home Ownership Report

  • The typical American family has a net worth of approximately $77,000
  • Of the $77,000, 61.4% of that amount if from their home ($47,500)
  • Home owners have a net worth greater than 30 times that of someone looking to rent only
  • The typical home owner has a net worth around $174,500, whereas a renter only has approximately $5,1000

Take a look at these infographics as well on these statistics that were found by the federal reserve to see just what home ownership can do for you.

Slide13                                                                Slide14What we are seeing from these statistics though is that owning a home is a great way to increase your net worth, have a piece of the American dream and have a long term investment that will help you in the future. Having a net worth of more than 30x that of a renter is quite impressive to say the least. At the end of the day, it truly comes down to what you believe in. If you want to increase your net worth with a solid investment, then nothing is quite like owning property. We believe that when you put your money in to something as sound as a Sarasota home, that is one of the best investments you can make!

 

Buying A Sarasota Home? You Shouldn’t Do It Alone

July 31st, 2014

Buying A Sarasota Home? You Shouldn’t Do It Alone

In a recent survey by Discover Home Loans, 94 percent of those surveyed stated that they felt they were making a good investment by purchasing a Sarasota home. In that same survey though, only 66 percent of the surveyed group stated that they were working with a real estate agent to see if a home would in fact be a wise investment. In the end though, most of the people that completed the Discover Home Loans survey went through to announce that they were well overwhelmed with the process.

Home buying can be a daunting process. You have to search for the homes you want, see all of the available properties on the market that fit your criteria, make an offer on the one that you would like, go through mounds of paperwork and expect to do this while working a 40+ hour per week job. In the report, here are some of the findings that display just how overwhelmed people can be in the process:

  • Nearly 66% feel overwhelmed with the amount of information available
  • 76% of those under the age of 30 feel overwhelmed
  • 76% of first time buyers feel the same way
  • 54% of those buyers who have previously owned also were overwhelmed
  • 59% of buyers turn to mortgage bankers to help evaluate mortgage terms and comparing offers
  • 49% of buyers turn to real estate agents to help evaluate mortgage terms and comparing offers

The one statistic that pops out to us is the fact that approximately 2/3rd of those surveyed feel overwhelmed, whereas only 1/2th actually used a Sarasota real estate agent.

To combat these statistics, the Chief Economist of the Discover Home Loans company did state, “The industry is becoming more transparent in an effort to help home buyers become informed about changes that may affect their process. The sheer amount of information can lead to confusion and stress. Those looking to purchase should work closely with their lender and realtor to make sure they are comfortable with mortgage terms and understand the impact a loan will have on their finances.

To sum this all up, purchasing a Sarasota home is a wise investment, but can put a lot of pressure on anyone going about the process alone. Real Estate Agents are trained professionals who are here to help you find the home that you desire and to help with all of the paperwork involved. Going about this task alone will prove to be unwise as the stress involved will hurt the final outcome. Working with an agent is the best and more reliable way to make the process as pain free as possible.

Billionaire States Sarasota Real Estate is the Best Investment Available

July 24th, 2014

When a billionaire makes this huge of a statement, you know that this is something to listen up about. No matter how many times we hear realtor.com, zillow, trulia, msn real estate, Keller Williams Realty or even the NAR state that Sarasota real estate is going up, hearing it from a billionaire makes you do a double take. Just how many other billionaires out there are open about their investments?

Sarasota Real Estate

John Paulson made an absolute fortune in 2005 and 2006 by stating that the then mortgage issues would make the real estate market collapse. Overall, you could say very easily that he has a nice understanding of just how the real estate market works. Forbes magazine even went as far as to say that John Paulson is “A multibillionaire hedge fund operator and the investment genius.” Wall Street Journal then stated that Mr. Paulson was “A hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.”

Now not everyone is a math genius as much as John is, but in his recent interview with the Delivering Alpha Conference, John went on to say, “Today financing costs are extraordinarily low. You can get a 30-year mortgage somewhere around 4.5 percent. And if you put down, let’s say, 10 percent and the house is up 5 percent, which is the latest data, then you would be up 50 percent on your investment. And you’ve locked in the cost over the next 30 years. And today the cost of owning is somewhat less than the cost of renting. And if you rent, the rent goes up every year. But if you buy a 30-year mortgage, the cost is fixed.”

At the end of the day, this billionaire made his money from real estate just like we have in our Sarasota Real Estate Market and I can guarantee that when a billionaire makes a statement like this, people will want to know what they are saying.

 

Why Is Keller Williams In Sarasota The Place To Work For?

July 24th, 2014