Tag: Buying a House

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Inherited House

Selling a House in Probate in Orange Seminole Volusia Lake Osceola Counties, FL

House in Probate

Quite often individuals are left with a family home as a result of the passing of a loved one. This means you’ve likely inherited a house.

In many cases, this means that it is a second home and not one that they wish to keep so they want to sell it. When the Will is going through probate, the heirs often want to sell the house…even while the house is in probate..

Unfortunately, selling a house in probate is not an easy process and can be lengthy and somewhat frustrating.

There are cases where you can sell a house without probate.

selling a house in probate
selling a house in probate

Selling a House While in Probate

The individual that will be responsible for seeing that everything that has been outlined in the will is carried out will be the administrator or executor. The executor will be the one that has been named in the will to act as such, and if no one has been named then usually the closest relative is appointed to the administration position which can be done by the court or other close relatives.

Selling a House In Probate

When selling a house in probate it has to go through a series of steps that are regulated by the courts. These regulations may include deadlines as a well as documentation that has to be paid close attention to through the entire real estate in probate sale process. There are many details involved in.

Other individuals that may be involved in the sale of the home is the appraiser, the realtor, and an attorney as well as the courts itself.

deciding on selling a house in probate

Selling a House Before Probate Is Granted

When it comes to selling a house in probate the value of it has to be determined first. This is done through a proper appraisal and most often the realtor that you choose to handle the sale of the property will be able to recommend a proper appraiser. The rules are that the property must sell for at least 90% of what it is being appraised at.

It may not always be necessary to have an independent appraiser as some Realtors are experienced in probate and trust sales, and are considered credible when placing a value on the house. This agent will then usually carry through with listing the house for sale.

You can then go through with. A probate sale is granted beginning with this step.

Selling a House Once Probate is Granted

The big responsibility for selling a house once probate is granted partly becomes the responsibility of the chosen Realtor. This professional will work on this by using many different resources.

It usually involves different segments which include the proper signage as well as different types of advertising placed in different media’s.

In addition to this, the Realtor will hold open houses to encourage other real estate agents and potential buyers to attend. Then when viewings are set up the Realtor will attend to the showings.

These are all important steps that help when selling a house in probate.

Selling a House After Probate

Quite often potential buyers are looking for a cheap buy when it comes to a home being sold in probate.

want to be selling a house in probate

What has to be remembered is that there are court rulings in place regarding the sale, which is the offer has to be within the 90% of the sale appraised value. The Realtor again will play a big role here in making sure that the seller is able to negotiate the proper terms that are going to fit in with the requirements for both the buyer and the seller. Selling a house after probate allows the executor or administrator to enter into the necessary contracts.

Once this has been completed and the offer has been presented and accepted, then the court requires a notice of proposed action to be mailed to all the heirs that were named in the estate. This allows the heirs  15 days to present any objections that they may have. If none is raised, then the sale can go ahead without the necessity of a court hearing. This is where it can sometimes become frustrating for those selling a house in probate.

what to do when selling a house in probate

In some cases when selling a house in probate it may be mandatory that the notice of the sale is published in a local newspaper. This could be because the executor or administrator did not have all the powers necessary as stated under the IAEA, or an objection was lodged by one of the heirs.

A court date has to be set for the confirmation hearing which usually takes place between 30 and 45 days after filing of the application and the details again may be mailed to all parties concerned. During this time the realtor will most likely continue to show and advertise the property as there may be an opportunity to increase the sale price.

It is not unusual, for sometimes during the court confirmation hearing when selling a house in probate, the original bid that was accepted becomes overbid by someone else that is interested in buying the home. If this happens the party coming in with the second or higher bid has to attend at the hearing and bring with them a cashier’s check. The amount of this check must be at a minimum of 10% of the offering price they have placed on the home.

If it turns out that there are more than one over bidders then the outcome is, the bidder with the highest bid is awarded the purchase of the home. What happens is that this a bidder submits the cashier’s check to the executor or administrator. This money is then held in escrow for a period of time, which is usually 30 to 45 days following the court hearing.

get cash when you're selling a house in probate

Selling a House Without Probate

There are some stipulations within the estate law that do allow for selling a house without probate. Normally the executor or administrator of the will doesn’t have the necessary authority to sell a house unless probate is in place. Probate may be possibly avoided if the deceased placed the home in a living trust while still living.

It is really important that the proper professionals are chosen to assist you through the probate sale as it can be most complicated and it is taking place at a time where family members are going through the stress of losing a loved one, and this is just a added burden for them to have to attend to. When the process is followed properly it usually flows in the proper manner and the big concern is having the right realtor on board to get the price that has been placed on the home by being pro active and energetic in their selling responsibilities.
Want to find out more? Here’s an article we have that shows you how to sell an inherited house.

If you want to know your options when inheriting a house, read this article.

Cash offer?

Find out whether you can get a cash offer to buy the house in probate. We buy houses cash in Orange Seminole Volusia Lake Osceola Counties and can make you an offer. We have experience with helping people sell a house fast even when it is in probate or about to go through the probate process.

If you have any questions about how this works, please call us at 407-641-1531. We’re here to help…even if you decide not to sell the house.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Real Estate Market

Have You Ever Seen a Housing Market Like This?

Have You Ever Seen a Housing Market Like This?

The year 2020 will certainly be one to remember, with new realities and norms that changed the way we live. This year’s real estate market is certainly no exception to that shift, with historic highlights continuing to break records and challenge what many thought possible in the housing market. Here’s a look at four key areas that are fundamentally defining the market this year.

Housing Market Recovery

The economy was intentionally put on pause this spring in response to the COVID-19 health crisis. Many aspects of the common real estate transaction were placed on hold at the same time. Thankfully, technology and innovation helped the industry power forward, and business gradually ramped back up as shelter-in-place orders were lifted.

The result? Total transformation of the market from rock-bottom lows to exceptional highs. Today, the housing recovery is being called truly remarkable by many experts and is far exceeding expectations. From pending home sales to purchase applications, buyers are back in business and homes are selling – fast.

According to the Housing Market Recovery Index by realtor.com, the market has surpassed pre-pandemic levels, and has regained the strength we remember from February of this year (See graph below):

The Housing Market Recovery

Record-Breaking Mortgage Rates

Historically low mortgage rates are another 2020 game-changer. Today’s low rate is one of the big motivating factors bringing buyers back into the market. The average rate reached an all-time low on multiple occasions this year, and it continues to hover in record-low territory.

When rates are this low, buyers have a huge opportunity to get more for their money when purchasing a home, something many are eager to find while continuing to spend more time than expected at home this year, and likely beyond.

Continued Home Price Appreciation

One of the key drivers of home price appreciation this year is historically low inventory. Inventory was low going into the pandemic, and it is still sitting well below the level needed for a normal market. Although sellers are slowly making their way back into the game, buyers are scooping up homes faster than they’re coming up for sale.

This is a classic supply and demand scenario, forcing home prices to rise. Selling something when there is a higher demand for what is available naturally bumps up the price. If you’re ready to sell your house today, this may be the optimal time to make your move. As Bill Banfield, EVP of Capital Markets at Quicken Loans, notes:

“The pandemic has not stopped the consistent home price growth we have witnessed in recent years.” 

Increasing Affordability

Even as home prices continue to rise, affordability is working in favor of today’s homebuyers. According to many experts, rates this low are off-setting rising home prices, which increases buyer purchasing power – an opportunity not to be missed, especially if your family’s needs have changed. If you now need space for a home office, gym, virtual classroom, and more, it may be time to reconsider your current house.

According to Mortgage News Daily:

“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.”

Bottom Line

With mortgage rates hitting historic lows, home prices appreciating, affordability rising, and the market recovering like no other, 2020 has been quite a year for real estate – perhaps one we’ve never seen before and may never see again. Let’s connect today if you’re ready to take advantage of this year’s record-breaking opportunities.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Buying a House

Homebuyer Demand Is Far Above Last Year’s Pace

Homebuyer Demand Is Far Above Last Year’s Pace

Homebuying has been on the rise over the past few months, with record-breaking sales powering through the market in June and July. Buyers are actively purchasing homes, and the momentum is continuing into the fall. It is, however, becoming harder for buyers to find homes to purchase. If you’ve been thinking about selling your house, the coming weeks might just be the timing you’ve been waiting for.

According to the Pending Home Sales Report from the National Association of Realtors (NAR):

“Pending home sales in July achieved another month of positive contract activity, marking three consecutive months of growth.

The Pending Home Sales Index (PHSI), a forward-looking indicator of home sales based on contract signings, rose 5.9% to 122.1 in July. Year-over-year, contract signings rose 15.5%. An index of 100 is equal to the level of contract activity in 2001.”

This means that for the past several months, buyers have signed an increasing number of contracts to purchase homes – well above where the market was at this time last year. Lawrence Yun, Chief Economist at NAR notes:

“We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market…Home sellers are seeing their homes go under contract in record time, with nine new contracts for every 10 new listings.”

Below is a graph that shows the impressive recovery of homes sales compared to previous years. The deep blue v marks the slowdown from this spring that turned into an exponential jump in sales that followed through the summer, skyrocketing above years past:

Pending Home Sales

What Does This Mean for Sellers?

If you were thinking about putting your house on the market in the spring, but decided to wait due to the health crisis, it may be time to make your move. Buyers are in the market right now. With so few homes available to purchase, homeowners today are experiencing more bidding wars, creating an optimal time to sell.

Is This Trend Going to Continue?

As CNBC notes, there are no signs of slowing buyer demand this fall:

“The usual summer slowdown in the housing market is not happening this year. Buyers continue to show strong demand, spurred by the new stay-at-home world of the coronavirus and by record low mortgage rates.”

Danielle Hale, Chief Economist at realtor.com, concurred:

“In a typical year in the housing market, buyer interest begins to wane before seller interest causing the usual seasonal slowdown as we move into the fall. Due to a delayed spring season and low mortgage rates, we could see buyer interest extend longer than usual into the typically quieter fall. Whether this means more home sales will depend on whether sellers participate or decide to stay on the sidelines.”

As Hale mentioned, homeowners who are willing to sell their houses right now will play a big role in whether the trend continues. The market needs more homes to satisfy ongoing buyer demand. Maybe it’s time to leverage your equity and move up while eager home shoppers are ready to purchase a house just like yours.

Bottom Line

If your current home doesn’t meet your family’s changing needs, let’s connect to help you sell your house and make the move you’ve been waiting for all year.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
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Linkedin
Twitter
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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Inherited House

Inherited a House? Here Are Your Options!

So, you’ve inherited a house?

Do you find yourself thinking, “I inherited a house, now what?”

First of all, congratulations! We understand inheriting a house might be a stressful situation for some, but you don’t need to worry. We broke down your options and explored pros and cons. We also provided further steps you need to take after you make your decision.

So let’s go!

Inherited a house? Here are your options!

First thing’s first.

HuffingtonPost states these are the questions you need to ask after you inherit a house:

  • What condition is the house in?
  • How much will my expenses be?
  • How much is the house worth?
  • Should I move in, rent it or sell after I’ve inherited a house?

So, what are your options?

Sell when you’ve inherited a house!

Inheriting a house comes with plenty of unwanted headaches, especially if it’s something you didn’t want to happen. The first thought most have is to sell the house.

What to do when you've inherited a house?

RealtyTimes states that the absolute first step you must take if deciding to sell your inherited house is t0 seek legal action. Are you selling an inherited house to a sibling, at a loss or just wanting to sell? There are a few questions that should be addressed during this process, including the following:

  • Who will take care of getting the house ready for sale?
  • Who is responsible for negotiations and real estate agent hirings?
  • How will you divide the expensive?
  • Who is responsible for caring for the house while it is on the market?

You can also sell your house with a realtor without making repairs, or sell to a cash home buyer. We offer you both of these options! The best part is that you can get a cash offer in just 24 hours – your inherited home can be sold faster than you think!

Selling the house fast would be the best option for those who have no intention of moving in or renting it. There are a few pros as well as cons that come with this decision.

What options do I have when I've inherited a house?

Pros of selling an inherited house:

  • It can be sold FAST!
  • Paying in cash and having flexible payment options.
  • Not having to worry about the future of the property.

Cons of selling an inherited house:

  • You will have less control over who gets your house.
  • You might not be able to sell for the true value of the house.

If you’re considering selling, read this article: how to sell an inherited house in Orange Seminole Volusia Lake Osceola Counties.

Rent when you’ve inherited a house!

Another option to consider is to rent your inherited Orange Seminole Volusia Lake Osceola Counties house. If the house is to be rented, the heirs might ask:

  • Who will collect the rent?
  • Who takes the maintenance calls from tenants?
  • Where will the rental deposits and payments be held?
  • How will the income after costs be split among the heirs – each month, quarterly or annually?

Cons of renting an inherited house:

  • NextAvenue states that:”For tax purposes, the house (not the land) is considered a depreciable asset and a certain percentage of its value can be deducted annually.”
  • It can often be time-consuming.
  • You’ll need to make sure your tenants are a perfect fit for the house.

Pros of renting an inherited house:

  • Steady income on a long-term basis.
  • Creating networking relationships with the tenants.
  • Adding your management skills to your resume.

Move into your inherited house!

house

This option might be an obvious one – you could move when you’ve inherited a house and call it your new home.

The question that comes with moving into your inherited house is what to do with your current house. The same answers as above apply – you could easily sell it or rent it if you wish to do so.

Before you do decide to move into the inherited house,HouseLogic suggests to do the following:

  • Investigate the mortgage.

Especially if you’ve inherited a house from your parents at a loss – be aware of the current mortgage situation and know how to deal with it.

  • Physically check the house.

Is the property furnished or unfurnished? Take note of what needs to be fixed and what you want to fix. How does the season change affect the house? Do you like the surrounding area? See if all conditions meet your criteria before you decide to move in. Gather all necessary paperwork on the house and its appliances.

sell inherited house

If you inherited a house from your parents, you need to address the following questions:

  • Are you moving in alone, with your siblings or other relatives?
  • If the latter two, how will you split the costs?
  • What do you want to do with your current property?

Don’t forget to check out Good Housekeeping’s moving checklist – 9 Smart Things to do Before You Move

So, what’s it going to be? These decisions take time and planning. Make sure you check your budget, consult with professionals and get all your documentation ready.

Decided to sell? Give us a call and we will provide you with the best cash offer in just a couple of days!

 

Get a Cash Offer Within 24 Hours

Lucky for you, we buy houses in Orange Seminole Volusia Lake Osceola Counties. We work fast to get you a no-obligation cash offer for you house within 24 hours.

Our customers comment all the time about our soft approach. You won’t get a hard sell with us. If you are not completely satisfied with the offer we make to buy your house, you don’t have to accept it. No charge. No fees.

We’d love to talk to you today about the house and your situation. We’re here to help even if you decide not to sell your house.

Give us a call at 407-641-1531 or fill out the form below to get started. We look forward to talking with you.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
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The information presented in this article is for educational purposes only and should not be considered legal, financial, or as any other type of advice.
Categories
Real Estate Market

How Will the Presidential Election Impact Real Estate?

How Will the Presidential Election Impact Real Estate?

The year 2020 will be remembered as one of the most challenging times of our lives. A worldwide pandemic, a recession causing historic unemployment, and a level of social unrest perhaps never seen before have all changed the way we live. Only the real estate market seems to be unaffected, as a new forecast projects there may be more homes purchased this year than last year.

As we come to the end of this tumultuous year, we’re preparing for perhaps the most contentious presidential election of the century. Today, it’s important to look at the impact past presidential election years have had on the real estate market.

Is there a drop-off in home sales during a presidential election year?

BTIG, a research and analysis company, looked at new home sales from 1963 through 2019 in their report titled One House, Two House, Red House, Blue House. They noted that in non-presidential years, there is a -9.8% decrease in November compared to October. This is the normal seasonality of the market, with a slowdown in activity that’s usually seen in fall and winter.

However, it also revealed that in presidential election years, the typical drop increases to -15%. The report explains why:

“This may indicate that potential homebuyers may become more cautious in the face of national election uncertainty.”

Are those sales lost forever?

No. BTIG determined:

“This caution is temporary, and ultimately results in deferred sales, as the economy, jobs, interest rates and consumer confidence all have far more meaningful roles in the home purchase decision than a Presidential election result in the months that follow.”

In a separate study done by Meyers Research & Zonda, Ali Wolf, Chief Economist, agrees that those purchases are just delayed until after the election:

“History suggests that the slowdown is largely concentrated in the month of November. In fact, the year after a presidential election is the best of the four-year cycle. This suggests that demand for new housing is not lost because of election uncertainty, rather it gets pushed out to the following year.”

Will it matter who is elected?

To some degree, but not in the overall number of home sales. As mentioned above, consumer confidence plays a significant role in a family’s desire to buy a home. How may consumer confidence impact the housing market post-election? The BTIG report covered that as well:

“A change in administration might benefit trailing blue county housing dynamics. The re-election of President Trump could continue to propel red county outperformance.”

Again, overall sales should not be impacted in a significant way.

Bottom Line

If mortgage rates remain near all-time lows, the economy continues to recover, and unemployment continues to decrease, the real estate market should remain strong up to and past the election.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
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Linkedin
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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Buying a House

It’s Not Just About the Price of the Home

It’s Not Just About the Price of the Home

When most of us begin searching for a home, we naturally start by looking at the price. It’s important, however, to closely consider what else impacts the purchase. It’s not just the price of the house that matters, but the overall cost in the long run. Today, that’s largely impacted by low mortgage rates. Low rates are actually making homes more affordable now than at any time since 2016, and here’s why.

Today’s low rates are off-setting rising home prices because it’s less expensive to borrow money. In essence, purchasing a home while mortgage rates are this low may save you significantly over the life of your home loan.

Taking a look at the graph below with data sourced from the National Association of Realtors (NAR), the higher the bars rise, the more affordable homes are. The orange bars represent the period of time when homes were most affordable, but that’s also reflective of when the housing bubble burst. At that time, distressed properties, like foreclosures and short sales, dominated the market. That’s a drastically different environment than what we have in the housing market now.

The green bar represents today’s market. It shows that homes truly are more affordable than they have been in years, and much more so than they were in the normal market that led up to the housing crash. Low mortgage rates are a big differentiator driving this affordability.

House Affordability Index 1990 to Today

What are the experts saying about affordability?

Experts agree that this unique moment in time is making homes incredibly affordable for buyers.

Lawrence Yun, Chief Economist, NAR:

“Although housing prices have consistently moved higher, when the favorable mortgage rates are factored in, an overall home purchase was more affordable in 2020’s second quarter compared to one year ago.”

Bill Banfield, EVP of Capital Markets, Quicken Loans:

“No matter what you’re looking for, this is a great time to buy since the current low interest rates can stretch your spending power.”

Mortgage News Daily:

“Those shopping for a home can afford 10 percent more home than they could have one year ago while keeping their monthly payment unchanged. This translates into nearly $32,000 more buying power.” 

Forbes:

“Homeowners are the clear winners. Low mortgage rates mean the cost of owning is at historically low levels and who gains all the benefits of strong house price appreciation? Homeowners.”

Bottom Line

When purchasing a home, it’s important to think about the overall cost, not just the price of the house. Homes on your wish list may be more affordable today than you think. Let’s connect to discuss how affordability plays a role in our local market, and your long-term homeownership goals.

 

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
Facebook
Linkedin
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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Buying a House

Three Ways to Win in a Bidding War

Three Ways to Win in a Bidding War

With so few houses for sale today and low mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are heating up, so it’s important to get pre-approved before you start your search. This way, you can put your best foot forward – quickly and efficiently – if you’re planning to buy a home this season.

Javier Vivas, Director of Economic Research at realtor.com, explains:

“COVID-19 has accelerated earlier trends, bringing even more buyers than the market can handle. In many markets, fierce competition, bidding wars, and multiple offer scenarios may be the common theme in the weeks to come.”

Here are three things you can do to make your offer a competitive one when you’re ready to make your move.

1. Be Ready

A recent survey shows that only 52% of active homebuyers obtained a pre-approval letter before they began their home search. That means about half of active buyers missed out on this key part of the process.

Buyers who are pre-approved are definitely a step ahead when it’s time to make an offer. Having a pre-approval letter indicating you’re a qualified buyer shows sellers you’re serious. It’s often a deciding factor that can tip the scale in your direction if there’s more than one offer on a home. It’s best to contact a mortgage professional to start your pre-approval process early, so you’re in the best position right from the start of your home search.

2. Present Your Best Offer

In a highly competitive market, it’s common for sellers to pick a date and time to review all offers on a house at one time. If this is the case, you may not have an opportunity to negotiate back and forth with the sellers. As a matter of fact, the National Association of Realtors (NAR) notes:

“Not only are properties selling quickly, but they are also getting more offers. On average, REALTORS® reported nearly three offers per sold property in July 2020.”

Make sure the offer you’re presenting is the best one the sellers receive. A real estate professional can help you make sure your offer is a fair and highly competitive one.

3. Act Fast

With existing homes going like hotcakes, there’s no time to waste in the process. NAR reports how the speed of home sales is ramping up:

“Properties typically remained on the market for 22 days in July, seasonally down from 24 days in June and from 29 days in July 2019. Sixty-eight percent of homes sold in July 2020 were on the market for less than a month.”

In addition, NAR notes:

“Total existing-home sales…jumped 24.7% from June to a seasonally adjusted annual rate of 5.86 million in July. The previous record monthly increase in sales was 20.7% in June of this year. Sales as a whole rose year-over-year, up 8.7% from a year ago (5.39 million in July 2019).”

As you can see, the market is gaining steam. For two consecutive months houses have sold very quickly. Essentially, you may not have time to sleep on it or shop around when you find a home you love. Chances are, someone else loves it too. If you take your time, it may not be available when you’re ready to commit.

Bottom Line

The housing market is very strong right now, and buyers are scooping up available homes faster than they’re coming to market. If you’re planning to purchase a home this year, let’s connect to discuss the trends in our current area, so you’re ready to compete – and win.

 

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
Facebook
Linkedin
Twitter
Instagram

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Buying a House

The Cost of Renting Vs. Buying a Home [INFOGRAPHIC]

The Cost of Renting Vs. Buying a Home [INFOGRAPHIC]

Some Highlights

  • The percentage of income needed to afford a median-priced home today is declining, while that for renting is on the rise.
  • This is making buying a home an increasingly attractive option for many people, especially with low mortgage rates driving purchasing power.
  • Let’s connect if you’d like expert guidance on exploring your homebuying options while affordability is high.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
Facebook
Linkedin
Twitter
Instagram

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Buying a House

Why Is It so Important to Be Pre-Approved in the Homebuying Process?

Why Is It so Important to Be Pre-Approved in the Homebuying Process?

You may have heard that pre-approval is a great first step in the homebuying process. But why is it so important? When looking for a home, the temptation to fall in love with a house that’s outside your budget is very real. So, before you start shopping around, it’s helpful to know your price range, what you’re comfortable within a monthly mortgage payment, and ultimately how much money you can borrow for your loan. Pre-approval from a lender is the only way to do this.

According to a recent survey from realtor.com, many buyers are making the mistake of skipping the pre-approval step in the homebuying process:

“Of over 2,000 active home shoppers who plan to purchase a home in the next 12 months, only 52% obtained a pre-approval letter before beginning their home search, which means nearly half of home buyers are missing this crucial piece of paperwork.”

This paperwork (the pre-approval letter) shows sellers you’re a qualified buyer, something that can really help you stand out from the crowd in the current ultra-competitive market.

How competitive is today’s market? Extremely – especially among buyers.

With limited inventory, there are many more buyers than sellers right now, and that’s fueling the competition. According to the National Association of Realtors (NAR), homes are receiving an average of 2.9 offers for sellers to negotiate, so bidding wars are heating up.

Pre-approval shows homeowners you’re a serious buyer. It helps you stand out from the crowd if you get into a multiple-offer scenario, and these days, it’s likely. When a seller knows you’re qualified to buy the home, you’re in a better position to potentially win the bidding war and land the home of your dreams.

Danielle Hale, Chief Economist for realtor.com notes:

“For ‘a buyer in a competitive market, it’s typically essential to have pre-approval done in order to submit an offer, so getting it done before you even look at homes is a smart move that will enable a buyer to move fast to put an offer in on the right home.’”

In addition, today’s housing market is also changing from moment to moment. Interest rates are low, prices are going up, and lending institutions are regularly updating their standards. You’re going to need guidance to navigate these waters, so it’s important to have a team of professionals (a loan officer and a real estate agent) making sure you take the right steps along the way and can show your qualifications as a buyer at the time you find a home to purchase.

Bottom Line

In a competitive market with low inventory, a pre-approval letter is a game-changing piece of the homebuying process. If you’re ready to buy this year, let’s connect before you start searching for a home.

 

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

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THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.
Categories
Buying a House

Should You Buy an Existing Home or New Construction?

Should You Buy an Existing Home or New Construction?

Finding the right home to purchase today is one of the biggest challenges for potential buyers. With so few homes for sale and construction of newly built homes ramping up, you may be wondering if you should consider new construction in your search process. It’s a great question to ask, and one to look at from the pros and cons of what it means to buy a new home versus an existing one. Here are a few things to consider when making the best decision for your family.

New Construction  

When buying a new home, you can often choose more energy-efficient options. New appliances, new windows, a new roof, etc. These can all help lower your energy costs, which can add up to significant savings over time. With programs like ENERGY STAR, your home also helps protect the environment and reduces your carbon footprint.

Lower maintenance that comes with a newer home is another great benefit. When you have a new home, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. With new construction, you’ll also have warranty options that may cover portions of your investment for the first few years.

Another solid benefit to new construction is customization. Do you want a mudroom, stainless steel appliances, granite countertops, hardwood floors, an office, or a multipurpose room to homeschool your children? These items can be customized to your specific needs during the design phase. With an existing home, you’re buying something that’s already completed, so if you want to make changes, you may need to hire a contractor to help get your home ready for your family.

Existing Home

When buying an existing home, you can negotiate with the current homeowner on price, which is something you generally don’t get to do with a builder. Builders know their material and construction costs, and they have a price set for the model you’re buying. So, if you want to negotiate, then maybe an existing home will be best.

For many families, having an established neighborhood is also important. Some buyers like to know the neighbors, if it’s family-friendly, and traffic patterns before making a commitment. When you buy new construction, you won’t have a full view of some of those details until the lots around you are sold.

Finally, timing comes into play. With an existing home, you can move in based on the timeline you agree to with the sellers. With new construction, you need to wait for the house to be built. Depending on the time of the year you’re buying and the region you’re in, the weather can also be a factor in the timeframe. This is something really important to keep in mind, especially if you need to move sooner rather than later. Over the past few months with COVID-19 and social distancing regulations, some areas for new construction have been delayed.

Bottom Line

Whether you want to buy a newly built home or one that’s already established, both are great options. They each have their pros and cons, and every family will have different circumstances driving their decision. If you have questions and want to know more about the options in our area, let’s connect today so you can feel confident making a decision about your next home.

Contact us:
PHP Houses
142 W Lakeview Ave
Unit 1030
Lake Mary, FL 32746
Ph: (407) 519-0719
Fax: (407) 205-1951
email: info@phphouses.com

Let’s Connect:
Facebook
Linkedin
Twitter
Instagram

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.