Sarasota Home Prices for The Past 30 Years

March 26th, 2015

Home-Prices-over-30-Years

Location is Key For Sarasota Real Estate

March 19th, 2015

Location is Key For Sarasota Real Estate

A recent Demand Institute report stated “almost half of all American households plan to move at some point in the future.”

Seventy-five percent of those surveyed in the report mention location-related reasons for their intent to move. Here are the top 5 reasons to move to new Sarasota Real Estate:

  1. Safer Neighborhood – 30%
  2. Closer to Family – 27%
  3. Change of Climate – 26%
  4. Closer to Work – 25%
  5. For a New Job – 23%

While most Americans (74%) will move within their home state, for those planning to move to a new state, it’s important to know that prices in each state are appreciating at different rates. Waiting to buy or sell your home could have different results in the long run. When looking to sell your Sarasota real estate or when looking to move in to a new home, these statistics may show you exactly why you could be moving. When you move though, you will want to make sure that you are in the right hands. That is where we can help out. Contact one of our experienced agents today and see just how we can help make the moving or selling experience pain free.

Why It Is Important To Use A Sarasota Real Estate Agent

March 5th, 2015

Why It Is Important To Use A Sarasota Real Estate Agent

When someone decides to sell their home, they want to receive the highest possible offer while encountering little to no issues during the process. However, for many sellers, the most important result is to actually sell the home.

In order to achieve all three goals, a seller should understand the importance of using a Sarasota real estate agent. The internet has changed the purchaser’s behavior while looking for a home. For the past two years, 92% of all buyers have used the internet to search for a home, according to the National Association of Realtors.

However, the report also said that for the second year in a row, 96% percent of buyers that used the internet bought their home through either a Sarasota real estate agent /broker or from a builder or builder’s agent. Only 2% purchased their home directly from a seller.

Buyers search for a home online but depend on a Sarasota real estate agent to find the actual home they will buy or negotiate the terms of the sale & price.

Stephen Phillips, the Chief Operating Officer for HSF Affiliates LLC, put it best:

“Home buyers are more informed than ever with their Internet searches and ongoing research; however, there’s a critical need to transform that information into analysis and advice that helps consumers make the best home-buying and selling decisions.

The mass of information now available has resulted in a rise in the percentage of buyers that reach out to real estate professionals to “connect the dots”. This is obvious, as the percentage of overall buyers who used an agent to buy their home has steadily increased from 69% in 2001.

If you are thinking of selling your home, make sure you understand the role a Sarasota real estate professional can play in the process.

Top Ways To Decrease Your Sarasota Mortgage

February 25th, 2015

Top Ways To Decrease Your Sarasota Mortgage

No one wants to spent excessive years making Sarasota mortgage payments. The obvious way to pay off a Sarasota mortgage more quickly is to get a shorter-term loan. With shorter-term loans, however, your monthly payments are more expensive. So how do you choose a loan you can afford, yet still pay it off quickly? Here’s a look at four common approaches.

Refinance, then reinvest savings

It’s always a good idea to evaluate refinancing when rates decrease, but unless you refinance to a drastic shorter-term loan, refinancing doesn’t automatically shave years off your Sarasota mortgage. You can run your own refinance calculations to find the best balance between monthly budget and the fastest loan payoff.

Make biweekly payments

A biweekly payment plan is the easiest way to shorten your Sarasota mortgage without a significant budget increase. This plan shaves about four years off your mortgage by paying half your payment every other week. Your lender can brief you on how to set up a biweekly payment plan.

Increase your monthly payment amount

Increasing the amount you pay towards your Sarasota mortgage each month will inevitably shave years off your mortgage. If you’re paying significantly more, however, it’s worth looking at whether your budget can accommodate a shorter-term loan. Rates on 15-year loans are about 0.5 percent lower than 30-year fixed loans.

Just make sure your budget can accommodate this payment increase.

Make one-time loan payments when you get extra cash

If you can’t commit to the 15-year loan budget but know you may occasionally come into extra cash — like bonuses from work — you can pay a large amount towards your loan at one time.

Normally, when you pay extra on your loan, it shaves years off your mortgage, but your payment stays the same. However, for large one-time pay-downs like this, some lenders may decrease your payment, too. When you’re shopping for mortgage lenders, ask them in advance if they’re willing to do this.

At the end of the day, a your will be paying a mortgage whether you are renting or buying. So why not look for homes in the area in which you will have a Sarasota mortgage that can build your wealth and equity instead of burning through money renting?

Sarasota Homeownership Net Worth 36x More Than Renters

February 11th, 2015

Sarasota Homeownership Net Worth 36x More Than Renters

 

Over the last six years, Sarasota homeownership has lost some of its appeal as a positive financial investment. As homeowners struggled through the housing drop, more and more began to question whether owning a home was a good thing or a bad thing.

Every three years, the Federal Reserve holds a Survey of Consumer Finances in which they collect data across all economic and social groups.

 

Some of the findings revealed in their report:

  • The average American family has a net worth of $81,200
  • Of that net worth, 61.4% ($49,856) of it is in home equity
  • A homeowner’s net worth is over 36 times greater than that of a renter
  • The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

There are many reasons why owning a home is a positive investment. The Fed study shows that owning is still a great way for families to build wealth in the United States. Sarasota homeownership will continue to flourish over the next year

Sarasota Home Buyer Confidence The Highest In Decades

February 11th, 2015

Sarasota Home Buyer Confidence The Highest In Decades

 

Two recent reports showed that the Sarasota home buyer confidence is starting to feel much more comfortable with the state of the U.S. economy. The University of Michigan’s Surveys of Consumers showed that:

 

“Consumer optimism reached the highest level in the past decade in the January 2015 survey…Consumers judged prospects for the national economy as the best in a decade, with half of all consumers expecting the economic expansion will continue for another five years. The anticipated strength in the overall economy has been accompanied by more favorable income and employment expectations.”

 

Here is a chart showing results over the last decade:

sarasota home buyer

 

As all consumers are feeling more positive, more young adults are moving out of their parents’ house and into an apartment of their own. The recent Census report shows that new household formations skyrocketed in 2014. Below is a chart showing the historical significance of the numbers:

 sarasota home buyer

Bottom Line

The economy is definitely on the upswing and, more importantly, the Sarasota home buyer confidence is beginning to feel much more optimistic. This should lead to a very healthy real estate market in 2015.

Top Reasons To Use A Bradenton Realtor When Selling

February 7th, 2015

Top Reasons To Use A Bradenton Realtor When Selling

Some homeowners consider trying to sell their home without the help of a Bradenton Realtor, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a great idea for many sellers.

1. There Are Too Many People to Negotiate With

Here’s a short list of some of the people you’ll have to personally deal with if you decide to For Sale By Owner:

  • The buyer who wants the greatest deal possible
  • The buyer’s agent who has the best interest of the buyer in mind
  • The buyer’s attorney (in some parts of the country)
  • The home inspection companies, which work for the buyer and will usually find various problems with the house
  • The appraiser if the value is in question

2. Exposure to Prospective Buyers

Recent studies have shown that 88% of buyers look for a home online. In comparison, only 21% of buyers skim newspaper listings. Most Bradenton Realtors have an online marketing strategy to promote the sale of your home. Do you?

3. Results Come from the Web

Where do buyers find the eventual home they buy?

  • 43% on the internet
  • 9% from a yard sign
  • 1% from the newspaper

Simply putting up a sign in your front yard and creating a newspaper advertisement will usually not result in the sale of your home. Having a strong online marketing strategy is imperative.

4. FSBOing is Difficult

The paperwork involved in selling and buying a home has increased significantly as industry disclosures and regulations have become mandatory and a Bradenton Realtor deals with these contracts on a daily basis. This is one of the reasons that the percentage of people FSBOing has dramatically dropped over the last 20+ years.

5. You Gain More Money when You Use an Agent

Many homeowners believe they will avoid paying commission by selling without a real estate agent. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the average house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This shows that selling with the help of a Bradenton realtor might make sense financially.

Top Items To Not Hear From Your Sarasota Listing Agent

January 30th, 2015

Top Items To Not Hear From Your Sarasota Listing Agent

So, you’ve finally decided to sell your Sarasota house. Congratulations! The next step is to interview potential real estate agents to help you through the intimidating process. When you are finally ready to sell, you need someone you can trust enough to:

  1. Set the market value on an extremely large asset
  2. Set the time schedule for the successful liquidation of that asset
  3. Set the listing amount that will sell the asset for you

An agent must be genuinely concerned about you and your family in order to receive that degree of trust.

Be careful if the Sarasota listing agent you are interviewing begins the interview by bragging about their success.

When looking for the perfect Sarasota listing agent, personal success and the success of their company can be important things to consider when deciding on the right real estate professional to assist with selling your house. However, you first need to know they care about your needs and expectations. If the agent shows little interest in establishing your needs, their bragging rights may seem much less important.

Be on the lookout for someone who comes to the interview prepared to explain the current real estate market and how it may impact the sale of your home. Beware of someone only interested in trying to sell you on how great they are.

You have many Sarasota listing agents from which to choose. Pick someone who genuinely cares.

Should You Keep Your Couch When You Move To Your New Sarasota Home?

January 23rd, 2015

Should You Keep Your Couch When You Move To Your New Sarasota Home?

Your sofa is a huge investment, both in cost and size. This often leads to the important question: Is it worth it to move your couch to a new Sarasota home?

Here are a few things to consider.

Sofa Size

If you are moving in to a historic Sarasota home, it may be tough for moving furniture. You may not be able to fit your couch through the doorway, stairwell, or landing. Measure the opening and your furniture to make sure they’ll fit.

You should also measure the new room, including the wall or corner where the couch will be placed. If the furniture will sit near a window, make sure the couch isn’t going to block natural sunlight. If any problems occur, you might want to consider purchasing something new.

Old Sofa, New Space

Considering interior design while moving all of your belongings can feel overwhelming, but you need to consider the basics of your new place when it comes to the furniture.

  • Will the new couch look good in your new Sarasota home?
  • Is the shape appropriate?
  • Will the color work with your new color scheme?

 

Perhaps the most important question to consider is this: If your budget is tight, is your couch nice enough for the room to be designed around it?

Should you reupholster or start over?

If the frame is solid enough, you might consider reupholstering your sofa to meet your new needs.

If you have an antique sofa, it might be a good bet for an upholstering job. Such work can be expensive, but you’ll get an additional 15 years or so from a piece you might use daily.

There may be exceptions if you’re committed to the style of a piece. But overall, you may be better off buying new if you need a change.

Money

If you’re moving, especially a long distance, that couch will cost a pretty penny. But can you afford to buy a new one, after all the expenses associated with moving?

If you don’t want to move your sofa, but don’t have the money for a new one right after you move, consider a used option to tide you over. Check your local Craigslist to search for a used sofa in good condition.

Another option, especially in larger cities with older buildings, is finding a service such as New York’s Couch Doctor, who will take apart a sofa, move it into the building, and reassemble it for a very inexpensive price.

Did Your Make The Right Choice Delaying Purchasing a Sarasota Home?

January 16th, 2015

Did Your Make The Right Choice Delaying Purchasing a Sarasota Home?

There are several people out there who contemplated purchasing a Sarasota home last year, but didn’t. Whatever their reasons were for holding off, let’s look at the pros and cons of waiting.

What happened in 2014?

The 30 year fixed rate on January 2, 2014 was 4.53% as reported by Freddie Mac. Looking at the chart below, your monthly mortgage payment with principal and interest for a $250,000 home would have been $1,271.17.

Even though interest rates have dropped below 4% and ended 2014 at 3.87%, purchasing a Sarasota home now in 2015 has increased by 4.8 percent over the same time according to the Home Price Expectation Survey.

That same exact home appreciated by $12,000 now costs $262,000. The most recent report by Freddie Mac reports the average 30-year fixed rate is currently 3.73%.

Many might say, “Waiting a year was a great decision. I’m saving $60 a month.” And they’d be right! Over the course of a year, they saved almost $800.

But what they haven’t realized is that as the price of the home they purchased went up by $12,000, even if they just put a down payment of 5%, they had to produce an additional $600 at the start of the process. So really, they’ve only saved $129.36 in a year. That number isn’t quite as overwhelming, huh?

Is saving $11 a month really worth delaying purchasing a Sarasota home after you weigh all the benefits that come along with owning a house?

  • Building equity you can borrow against in the future
  • Having a safe, comfortable environment to protect your family
  • Having total control over renovations and upgrades
  • Tax benefits

Bottom Line

Experts are predicting that homes will appreciate by another 4% and interest rates will increase by 1% by the end of 2015. If you are in a position to buy a home right now, contact a local real estate professional and begin the exciting process.