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

Difference In Monthly Payments Of Sarasota Real Estate

July 18th, 2014

 

 

 

 

 

 

 

We always love to look at what the Sarasota Real Estate market may look like in the future and today is no different. Selling and buying a home is a numbers game and looking at the numbers can help to make you decide on whether buying now or later will be a wise idea or now. Today we’re going to take a look at the difference in how much you could be paying per month if you decide to wait until 2015 to purchase your next Sarasota Home.

Sarasota Real Estate

As you can see, the numbers are quite high to say the least. We found these numbers by looking at the average cost on the left hand side with the additional 4.2% mortgage rate that you can have right now, in comparison to the estimated 5.2% that will be the average next year. Just looking at the numbers shows that for every $100,000 change, we are looking at an estimated increase in $83.06 per month. That can add up very quickly as in one year you will be paying approximately $996.72 per every $100,000 on the home. As previous buyers of real estate, that is quick the high amount that we may not want to have.

Although waiting may seem like the smart idea, at the end of the day, the mortgage rates for Sarasota Real Estate are set to go up and will not remain as low as they are now. The normal mortgage rate average is usually around 8% and right now we are currently at half of that rate. In one year we may not know exactly where the rates will be, but if Freddie Mac says this is a possibility, we can only imagine that it may get to this point. Buying now may save you more time and money as the Summer months are the best to purchase with other buyers looking to purchase as well. This will expedite any paperwork you may have from the title, mortgage and insurance company as their plates will be full.

Overall, it may make more sense to purchase now than later, but the choice is completely up to you. Saving money per month though is normally the name of the game and as mortgage rates and home prices are set to continually rise, it may be wise to look in to purchasing and selling now.

 

Was Moving Up In Your Sarasota Home Worth The Wait?

July 10th, 2014

Waiting to move up to a bigger and better home always seems like a smart investment when you first go through the home buying process. But is it really that smart of an idea to wait to move up when you could have had that newer home even sooner? Current reports on your Sarasota Home Value have stated that existing homes for sale are increasing month after month. We are noting a change in the real estate market as home owners are becoming more comfortable with putting their property up for sale.

When moving up though, let’s assume that our home was previously worth $300,000 and now we are looking at a $450,000 home. If we put down a down payment of just 10%, you will not have a mortgage of $405,000. Over the past year though, the Case Shiller Price Index stated that the national average increased 10% which would not make our home worth $330,000, but the new home would be worth $495,000. To make calculations easy, let us take the original $45,000 for the down payment plus the $30,000 we gain from the sale of our home in difference to the 2013 value.

Here is exactly what the difference would look like in comparison year over year for the Sarasota Home:

Sarasota Home

 

Now whether or not the additional wait time is worth the $3.27 is completely up to you. At the end of the day though, this is including a down payment of $75,000 which is well over our 10% we compared the 2013 value to. If you are looking to move though, now may be the better time than later. Although homes are still looking to appreciate over the next year, you will also see a potential increase in mortgage rates as well as they are still historically quite low. As per the chart above as well, you may not be seeing too much of a change in monthly mortgage either. But at the end of the say, purchasing your Sarasota Home will come down to how you would like the move to look.

 

Sarasota Real Estate Crushes

June 20th, 2014

ImageProxy.mvc

Real Estate crushes are just like any crush you may have had in the past. You find something that you like and you immediately fall in love with it. Crushes are different for every person, and just like a crush you had in grade school, the more you fall in love the harder it is to let go. That is why today we are going to take a look at the top Sarasota Real Estate Crushes for both men and women.

Real Estate Crushes For Women:

54% – Outdoor Living Space

42% – Open Floor Plans

29% – Curb Appeal

29% – Updated Appliances and Fixtures

Real Estate Crushes For Men:

46% – Outdoor Living Spaces

40% – Garages

35% – Curb Appeal

30% – Open Floor Plans

 

When looking at these percentages, the first item that sticks out in our minds is the fact that Outdoor Living Spaces ranked number 1 for both men and women. It seems that each of the genders favored a gorgeous Sarasota backyard, a dream pool or a place to lounge around in the summer over anything else. The great outdoors is definitely a plus when you have the weather to back it up, and it seems that regardless of gender that is the number one feature that creates the crush.

Men had a close second with Garages and that is easy to agree with. Since the muscle cars came out in the mid 50′s, garages and manliness have become synonymous. Now of course not every man wants that big garage to work on their cars. This could also be used for storage, children’s out door equipment or any other item that they wish to have outside of the home. Normally, the bigger the garage the better.

Ironically enough though, both men and women had open floor plans on their particular crush list, but women favored it much higher than men. An open floor plan just gives the illusion and excitement that the home is a big playground for decoration, house parties and growing old. Just like the garage, the bigger the open floor plan, the better. Having a larger area to utilize for home decor is never a terrible idea and we can easily see how Women and Men would want that extra space in the near future for children, housing changes and anything else that may come their way. This is a hard crush to get over once you have it in your Sarasota home as the extra space is a tremendous advantage to any property.

At the end of the day though, the crush that you have on your own particular Sarasota Real Estate will come down to what you truly want in your next home. Whether it is an open floor plan, a bigger garage or multiple bedrooms upstairs, once the crush hits you it is hard to get rid of. We all had grade school crushes that we truly wanted and in the end, these housing crushes will be just the same except way more satisfying!

Top Reasons To Buy Your Sarasota Home Now Part 1

June 13th, 2014

Top Reasons To Buy Your Sarasota Home Now Part 1

We always talk about why selling now is a smart idea. The market is filled with buyers, the prices are back at their pre-2007 level, and of course you now can move with equity on your Sarasota home. But today we want to chat about the other side of the spectrum. Why is now the best time to buy a home? Should you buy a home? What are the benefits of buying at this exact moment?

1). Prices are Slated to Rise

Over the past two years we have seen just what has happened to this market as the housing prices have continually risen from where they were when the “real estate crash” started in 2008. Prices in 2013 went up a drastic 12.3% bringing homes back to a new height that we had not seen in over 5 years. The Home Price Expectation Survey did announce that 33.8% of those surveyed stated that they were optimistic that prices would rise over the next 5 years in comparison to only 9.4% stating otherwise. Of course these are just opinions in this survey, but those surveyed are economists, investment strategists and housing market analysts. We are more than ecstatic to see that the highest percentage stated optimism in the Sarasota home market, especially from a panel this well educated in the field of real estate.

2). Mortgage Rates Will Increase

This has been a very interesting topic over the past few months. The mortgage rates nation wide has dipped severely to give potential new home buyers the opportunity to get back in the market. Rates though have been sitting at the 4.2% mark for quite some time and have hit as high as 4.5%. Although this may seem relatively high, the national average is typically around 8%. Seeing these low of mortgage rates for the Sarasota housing market is a great sign for buyers. By locking in those lower rates right now, you are securing yourself a potential low rate for the 30 year fixed mortgage. As the market starts to heat up this summer, we can almost guarantee that the mortgage rates will follow suit as well. Since the amount of transactions will come up though this summer, you can almost guarantee that the mortgage rates will increase as demand for homes increases. Of course, this does also mean that the time to complete the transaction/ closing with the bank should diminish as they will have more items on their plate and will need to move faster for a more rapid experience.

Of course these are only two of the main reasons we would suggest buying now. Come back soon as our next blog will go over the final two reasons why buying your Sarasota home now would be a wise decision.

Top 5 Reasons To Sell Your Sarasota Real Estate Now!

June 5th, 2014

Over the previous few years, a lot has changed for Sarasota real estate. The market is shifting back up to where we were pre-2007 and it looks just like prices are ready to continue on the upward trend. Mortgage rates are still at an all time low, allowing for multiple consumers to get in the market for less than they would initially believe. And of course, real estate is becoming a great investment with a high return. But, sellers are still quite hesitant to put their property on the market. Wondering where the prices will go, how will interest rates effect me, and can the buyer qualify for a 30 year mortgage are questions that any one should look to ask as they move forward with their selling process. Unfortunately though, waiting around may make matters worse. Here are five reasons that selling now may be a better bet than later.

1). Housing Demand is Very Strong

The historical amount of housing supply is always at 6 months. As of right now though, the housing market is currently under that amount, making this a big time sellers market. With inventory lower than usual, the amount of buyers on the market are over powering the amount of property for sale. Previously, homeowners were upset that they could not move due to lower equity, but now is not the case as prices have made a complete 180 and are now heading north fast. People are looking to purchase, but without the inventory, it is getting harder to do that every day. The summer months will pick up the amount of buyers and heat up the Sarasota real estate market, but now is definitely the time to get your name out there for sale.

2). Less Competition on the Market

As we spoke about in the first part, the amount of demand is high, but the inventory is low. This creates the perfect storm for sellers in the market as all of the buyers will be flocking to you. Studies have shown that 41% of buyers preferred a new home, 21% preferred a pre-existing one and 38% had no preference. In any sense of the matter, the inventory is low, and until the new home construction increases further, which it currently is, your home will be amongst the elite.

3). The Closing and Contract Portion Will Be Quicker

Currently banks have been taking their sweet time with the closing process as the inventory has been lower. This has allowed them to go through the process step by step to get everything in alignment for them to close the home. As the market heats up in the summer and properties are being sold more and more, the process will be forced to move a little faster. Great news for anyone looking to sell fast as the contract portion of the home selling can be a little exhausting. And of course, great news for the Sarasota realtors as well!

4). Moving Up In Size Is Better Now

The current projection for home prices until 2018 is an increase in 19%. Moving up to a more expensive home in the near future will cost you more than you may be willing to pay. Of course now you can lock in that 30 year mortgage rate in the low 4′s, whereas next years projections are already in the upper to mid 5′s right now.

5). Moving On Just Got Simpler

You now have the ultimate control to take back your life in your Sarasota real estate. You can put your home on the market with a price that will make it sell much faster than years past. Now is the time to look in to moving to another area that you and your family may truly want to live in. With the inventory very low right now, moving just seems to make sense if you wish to do it faster than you could have in the past.

Overall, the Sarasota Real Estate Market is just primed to explode over the next few months. As the summer heats up, so will the market. Look for inventory to rise and buyers to continue to look. Now is definitely the time to look in to moving.

National Association of Realtors May Report

May 23rd, 2014

slide113

Can Small Home Fixes Increase My Sarasota Property Value?

May 16th, 2014

Can Small Home Fixes Increase My Sarasota Property Value?

If you recall, a few weeks back we finished our series on the Top 10 weekend fixes to increase your Sarasota property value. Our topic this week picks up on those articles and dives even deeper in to the question of do little fixes boost home sales? Hiring out a local handyman can be the answer to all of your troubles on your property, but prioritizing these repairs can be the hard part. Based on this recent survey though, we can see just what major repairs will allow for the highest return on investment on your Sarasota home.

sarasota real estate

What is a little surprising from these statistics are just how much of a return on your investment you truly can get just from little minor changes. These stats are derived from 675,000 projects that were sent in to porch from property owners, builders, realtors, architects and others as well. “Just doing these minor things will help your house sell quicker and typically for more money,” says Brad Carlson of the Woodlands, Texas.

One of Mr. Carlson’s listings actually sat on the market for over two whole months with out as much as an offer to show for the property. Through the suggestion of changing out the sellers old outdated furniture for a new appeal, the home closed very close to it’s actual listing price just two days later. Statistics do show that sellers spend close to $4,000 while buyers spend upwards of $20,000. Just a few minor tweaks to the home though can make a world of a difference in any property. When looking to list your Sarasota Real Estate, these changes could mean the difference in an offer above or below listing price.