Headed Towards a Housing Bubble?
At the beginning of 2022, 45% of home sellers voiced that they strongly believed a housing bubble was imminent. Home sellers and buyers who remember the Great Recession have justifiable concerns. However, this isn’t the housing bubble of years past.
Some facts to calm your nerves:
Mortgages aren’t structured like they were in the past. Now lenders are much stricter with who they lend to. They require higher credit scores and requirements.
Housing Inventory remains low. Freddie Mac estimates that the nation is 3 million homes short of meeting buyer demand.
Buyer demand is still high. People still want to buy homes.
Real Estate is a hedge against inflation. A homeowner can lock in their monthly homeowners mortgage payment. This will keep it steady amongst any rate hikes that could happen in the future.
This is a market correction, not a crash! A slight decrease in home prices will happen as the market readjusts from record highs.
*info based on NAR official research
Negotiations 101
Issues may arise after the home inspection, and those issues tend to result in another round of negotiations for credits or fixes.
1. Ask for a credit for the work that needs to be done. Most often the seller will prefer this rather than making the repairs themselves and possibly delaying the sale.
2. Think “big picture” and don’t sweat the small stuff. Tile that needs some caulking, or a leaky faucet can easily be fixed. Repairs are still up for negotiation and perhaps a small credit would help with closing costs.
3. Negotiations take time. We will have 7 days after inspection to negotiate. 3 more days after if we cant come to an agreement, we get our binder back and start shopping!
AFTER AN OFFER IS SUBMITTED
WE CAN:
•Accept the offer
•Decline the offer
If the offer isn’t close enough to your expectation and there is no need to further negotiate.
•Counter-offer
A counter offer is when you offer different terms to the buyer.
THE BUYER CAN THEN:
•Accept the counter-offer
•Decline the counter-offer
•Counter the the offer
You can negotiate back and forth as many times as needed until you can reach an agreement or someone chooses to walk away.
OFFER IS ACCEPTED
You will sign the purchase agreement and you are now officially under contract! This period of time is called the contingency period.
Now inspections, appraisals, or anything else built into your purchase agreement will take place.
Need help looking for a home in Jacksonville or St. Augustine?
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What to Know About Your Appraisal
Your lender will arrange for a third party appraiser to provide an independent estimate of the value of the house you are buying. The appraisal lets all parties involved know that the price is fair. It is very difficult to successfully contest your appraisal. If you are a seller, we want the property to appraise for at least the sale amount or more. An experienced agent demonstrates certain strategies to reveal value of the home prior to the appraisal. The loan file then moves on to the mortgage underwriter. If approved you will receive your final commitment letter that includes the final loan terms & percentage rates.
APPRAISAL COMES IN AT OR ABOVE SALE PRICE
You are in the clear, and closing can be begin!
APPRAISAL COMES IN BELOW SALE PRICE
Renegotiate the sale price with the buyer
Renegotiate with the buyer to cover the difference
Cancel and re-list
Consider an alternative all-cash offer
Need help looking for a home in Jacksonville or St. Augustine?
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Closing the Sale: What to Expect
Closing is when funds and documents are transferred in order to transfer ownership of the property to the buyer. The escrow officer will look over the contract and find out what payments are owed by who, prepare documents for closing, perform the closing, make sure all payoffs are completed, the buyer’s title is recorded, and that you receive payoffs that are due to you.
CLOSING DAY
Closing is when you sign ownership and insurance paperwork and you receive the keys to your new home! Typically, closing takes 25-30 days. During this time, purchase funds are held in escrow, where your money is held safe until the transaction is complete.
CLOSING DISCLOSURE
Lenders are required to provide you with a closing disclosure, at least 3 days before closing. This will show you what your final loan terms and closing costs will be. You will have three days to review the statement. This is done to ensure that there are no surprises at the closing table. If there is a significant discrepancy between the loan estimate and the closing disclosure, we must notify your lender and title company immediately.
FINAL WALK THROUGH
We will do a final walk through the home within 24 hours of closing to check the property’s condition. This final inspection takes about an hour. We will make sure any repair work that the seller agreed to make has been done.
We will be sure to:
• Test all appliances and make sure they are working properly
• Run the water in all the faucets and check for any possible leaks
• Open and close garage doors with opener
• Flush toilets
• Run the garbage disposal and exhaust fans
CLOSING TABLE
Who will be there:
• Your agent
• The seller (sometimes they sign early and dont need to attend)
• The seller’s agent (they may have signed early with the seller)
• Any real estate attorneys involved in the transaction
The closing typically happens at the title company. You will be signing lots of paper work so get your writing hand warmed up! Some of the papers you will be signing include: the deed of trust, promissory note, and other documents
CLOSING COSTS
Closing costs can vary depending on your home’s purchase price and where you are located. You can generally expect your closing costs to be around 3-5% of the home’s sales price.
BRING TO CLOSING
• Government-issued photo ID (please dont forget this one!)
• Copy of the sales contract (should already be at the title company)
• Homeowner’s insurance certificate (also should already be at the title company)
• Proof of funds to cover the remainder of the down payment and your closing costs
RECEIVE YOUR KEYS
Congratulations! It was a lot of hard work but you are now officially home owners!! Time to throw a party and get to know your new neighbors!
Need help looking for a home in Jacksonville or St. Augustine?
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What to Know About Your Home Inspection
During the inspection period, we will schedule an inspection with a reputable home inspector to do a thorough investigation of the home. This typically is required to take place 7-10 business days after signing the contract. Once this is complete, the inspector will provide us with a list of their findings. You can take the issues as-is or request the seller to address some or all of the findings. We will be mindful and reasonable on smaller items, while being very cautious and vigilant of potentially significant issues.
WHAT IS INCLUDED IN A HOME INSPECTION?
Roof & Components
Exterior & Siding
Basement
Foundation
Crawlspace
Structure
Heating & Cooling
Plumbing
Electrical
Attic & Insulation
Doors
Windows & Lighting
Appliances (limited)
Attached Garages
Garage Doors
Grading & Drainage
All Stairs
FAQ:
INSPECTION TIME FRAME
TYPICALLY 10-14 DAYS AFTER SIGNING CONTRACT.
NEGOTIATIONS USUALLY HAPPEN WITHIN 5 DAYS
COSTS
NO COST TO THE SELLER. THE BUYER WILL CHOOSE AND PURCHASE THE INSPECTION PERFORMED BY THE INSPECTOR OF THEIR CHOICE.
POSSIBLE OUTCOMES
INSPECTIONS AND POTENTIAL REPAIRS ARE USUALLY ONE OF THE TOP REASONS A SALE DOES NOT CLOSE.
COMMON PROBLEMS COULD BE
FOUNDATION, ELECTRICAL, PLUMBING, PESTS, STRUCTURAL, MOLD, OR RADON
UPON COMPLETION
BUYER CAN ACCEPT AS IS
BUYER CAN OFFER TO RENOGOTIATE
BUYER CAN CANCEL CONTRACT
How to Win Your Offer
BID COMPETITIVELY
Research comparable prices
to homes sold in the area
Seek advice from a trusted realtor
Bid with your max price
GAIN THE SELLERS TRUST BY BEING STRAIGHTFORWARD
Present all your documents to the seller with your first offer that makes a seller feel right about you as a buyer. Being transparent with the seller from the beginning by submitting your documents shows you are serious and not just kicking tires.
GET A DISCOUNT BY KEEPING YOUR OFFER CLEAN
Instead of offering a lowball price and asking the seller to pay for closing costs, and repairs add up what you think those will cost you and build it into your original offer.
SHORTER INSPECTION PERIOD
You can make the inspection period shorter to make your offer more attractive.
BE PREPARED FOR CLOSING COSTS
There are transaction fees involved in buying a home. You'll usually pay them at closing, when you transfer money to the seller and the seller transfers ownership of property. Closing costs can add up to 2% to 5% of the value of your home loan
DON’T DRAG YOUR FEET
Especially if it's a seller’s market, you’re going to have to act fast when it comes to scheduling showings and making offers. Even waiting just one day can make you lose your dream home.
Tips to Sell Your Home FAST!
REMOVE YOUR FAMILY PHOTOS BEFORE THE OPEN HOUSE
Depersonalize home. Let them imagine themselves living in this house and make an emotional bond with your home.
CLEAN YOUR HOME
A clean home shows potential buyers that you've taken good care of your home. If you don't have new appliances in the kitchen, make sure the existing ones are spotless.
GET RID OF THE CLUTTER
Don't just stash it somewhere, get it off the premises. Eevery room in the house has to be available for inspection and a home buyer need to know there's plenty of room here for their stuff.
BE FLEXIBLE WITH HOME SHOWINGS
The best way to sell your home is to let a buyer inside with their buyer's agent to tour in peace and quiet. Leave the house when buyer's agents show up. Anything you say can and will be used against you. Plus, buyer's agents prefer to show without interference.
REVIEW YOUR LISTING ONLINE
Look at your home listing on various websites to make sure the information conveyed is accurate. Agents do their best to ensure accuracy, but since it is your home, you know the details better than anyone.
RESPOND PROMPTLY TO A PURCHASE OFFER
Many purchase offers contain a date by which the offer expires. Notwithstanding, it can drive buyers crazy if they are forced to wait for a seller to decide whether to accept their offer or to issue a counteroffer
PAINT YOUR WALLS NEUTRAL TONES
This could make a significant difference in how much your home will sell for. Neutral colors appeal to the many buyers, and suiting a wide range of interior design color palettes and style
PUT YOUR PETS SOMEWHERE ELSE
Some people are allergic to pet dander and others are afraid of dogs. You don't know who is going to be viewing your property. Your priority should be to make your house appeal to the widest spectrum of potential buyers.
SMELLS MAKE OR BREAK DEALS
Psychologists say that smell is the sense most closely connected to memory. Use air fresheners if need be. Good smells are extra inviting.
GET A COMPARABLE MARKETING ANALYSIS (CMA)
CMA is a document, drawn from a local Multiple Listings Service (MLS) database, that presents pricing information, property details and photos of homes similar to yours that recently sold, failed to sell, or are currently on the market in your area.
CHECK OUT COMPARABLE PROPERTIES
Check out all similar properties listed in your area in the last six months and compare prices. You should also look at unsold comparables and see if they're overpriced. Use a comparative market analysis (CMA) to help you.
USE QUALITY REAL ESTATE SIGNAGE
The quality and condition of the For Sale sign in your yard are a reflection of how you (and your agent) regard your property.
ALLOW ROOM TO NEGOTIATE
Adding a bit of a cushion to your asking price is a wise move. Most buyers will want to engage in some wheeling and dealing, so set your sale price to allow for this. Your agent can help you determine the amount of wiggle room.
DISCLOSE EVERYTHING
Smart sellers proactively go above and beyond legal necessity to disclose all known defects to their buyers. Most states have property disclosure forms. Use them.
RESPOND QUICKLY
When buyers make an offer, they are in the mood to buy. But moods change, and buyers are known to get buyers’ remorse. Don’t delay if you want the sale.
PICK AN IDEAL LISTING DATE
Discuss with your realtor and decide the best time of year to list your home to maximize profit and minimize time on the market. The best time to sell your house depends on where you live.
BOOST YOUR CURB APPEAL
According to a study done by Michigan State University, a home with landscaping can increase perceived home value by 5 to 11%. It can also sell a home faster.
LET THE KITCHEN SELL YOUR HOME
An appealing kitchen is a major selling point and is something. Lighting, painting, new appliances, and updating cabinet hardware are just some examples of inexpensive fixes worth every penny to attract buyers.
GET A PRELISTING INSPECTION
It sends a clear signal that you’re not trying to hide anything and makes a buyer feel confident to submit an offer.
PRICING YOUR HOME CORRECTLY
You shouldn't overprice your home because demand and interest wane after 21 days or so. Of course, you can lower the price later, but that can be too late.
BARTERING MAY BE A GOOD IDEA
For example, if you know the buyer loves the new couch you bought, you could offer to leave it in exchange for making fewer repairs.
EXPLORE THE EXPECTED APPRECIATION - A GOOD IDEA
What are the future prospects for your neighborhood? For example, a major mall being built, or a large new company moving to the area can be a good sign.
OFFER A CLOSING COST CREDIT
If you don't want to make home repairs yourself, you can offer a credit at closing for the estimated costs. This also helps you avoid complaints about repairs later
Guide to Finding a Lender + Getting Preapproved
THE FIRST STEP: GET PREAPPROVED FIRST
This is the first step so that your realtor and sellers know you're a serious buyer (and you can afford to buy the house you are wanting! ) Being pre-approved, unlike being pre-qualified, means you've actually been approved by a lender for a specific loan amount. You will need to provide documented financial information (income, statements, assets, debt & credit reports etc.) to be reviewed & verified by the lender.
A pre-approval can help to speed up the closing process since much of your financial information is already collected and in the lender’s system.
PREAPPROVAL LETTER
Lenders typically check your credit before issuing a preapproval letter, and the letter may have an expiration date on it (typically 30 to 60 days).
UNDERSTAND YOUR LOAN OPTIONS
A conventional loan is very common and you’ll be able to buy a home with a minimum of 3% down payment.
VA loans are only for veterans, members of the armed forces, National Guard, and their spouses. With this loan, you’ll have to meet service requirements and such, but you won’t have to make a down payment.
FHA loans are less strict when it comes to your finances and credit score. The minimum down payment is 3.5% and your credit score can be as low as 580.
USDA loan also doesn’t require a down payment but this is subject to income restrictions.
MAXIMIZE YOUR CREDIT SCORE
Generally, to qualify for a home loan, you'll need good credit, a history of paying your bills on time, and a maximum debt-to-income (DTI) ratio of 43%
YOUR CREDIT SCORE
Payment history % 35
Credit utilization %30
Age of credit history %15
Credit mix/types of credit %10
Amount of new credit %10
QUESTIONS TO ASK WHEN SHOPPING FOR A LENDER
What types of home loans do you offer?
Which type of mortgage is best for me?
What will my interest percentage rate be?
What is the loan estimate?
Do you handle underwriting in-house?
What Is your average loan processing time?
What happens if my appraisal comes in low?
What might my monthly mortgage payment include?
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Jacksonville Elected Officials/Government Links
Jacksonville Elected Officials / Government
City of Atlantic Beach
www.coab.us
City of Crescent City
www.crescentcity-fl.com
City of Green Cove Springs
www.greencovesprings.com
City of Jacksonville
www.coj.net
City of Jacksonville Beach
www.jacksonvillebeach.org
City of Keystone Heights
www.keystoneheights.us
City of Neptune Beach
ci.neptune-beach.fl.us
City of Orange Park
www.townoforangepark.com
City of Palatka
palatka-fl.gov
Clay County
www.claycountygov.com
Clay County Property Appraiser
www.ccpao.com
Clay County Supervisor of Elections
www.clayelections.com
Clay County Tax Appraiser
www.claycountytax.com
Duval County Property Appraiser
www.coj.net/departments/property-appraiser.aspx
Duval County Supervisor of Elections
www.duvalelections.com
Duval County Tax Collector
www.coj.net/departments/tax-collector.aspx
Fla. Dept. of Business and Professional Regulation - Division of Real Estate
www.MyFloridaLicense.com/dbpr
Fla. Division of Elections (register to vote)
dos.MyFlorida.com/Elections
Fla. House of Representatives
www.myfloridahouse.gov
Fla. Senate
www.flsenate.gov
National Do Not Call Registry
https://telemarketing.donotcall.gov/faq/faqbusiness.aspx
Ponte Vedra Beach Municipal Service District
www.pvmsd.org
Project Vote Smart
Project Vote Smart
Putnam County and Board of County Commissioners
www.Putnam.fl.com
Putnam County Property Appraiser
www.putnam-fl.com/app
Putnam County Supervisor of Elections
soe.putnam-fl.com/
Putnam County Tax Collector
www.putnamcountytaxcollector.com
St. Johns County
www.co.st-johns.fl.us
St. Johns County Property Appraiser
www.sjcpa.us
St. Johns County Supervisor of Elections
www.sjcvotes.us
St. Johns County Tax Collector
www.sjctax.us
State of Florida
www.myflorida.com
Stay Home Jacksonville - Foreclosure Prevention
City of Jax - Stay Home Jacksonville
U.S. Dept. of Housing and Urban Development (HUD)
www.HUD.gov
U.S. Government
www.usa.gov
U.S. House of Representatives
www.house.gov
U.S. Senate
www.senate.gov
August 2022 Market Overview
For Baker, Clay, Duval, Nassau, Putnam and St. John’s Counties
* info based off NEFAR research
Jacksonville School Info
JACKSONVILLE SCHOOL INFO:
Baker County School Board
www.bakerk12.org
Clay County School Board
www.oneclay.net
Duval County School Board
www.duvalschools.org
Nassau County School Board
www.nassau.k12.fl.us
Putnam County School Board
www.putnamschools.org
St. Johns County School Board
www.stjohns.k12.fl.us
Best Questions to Ask at An Open House
ASK THESE QUESTIONS AT AN OPEN HOUSE:
How many offers has the seller received?
Why are they selling?
How long has the property been on the market?
When was the house built? Any updates?
How much are monthly utilities?
What are the neighbors like?
How are the local schools?
What’s the noise level in the neighborhood?
How motivated is the seller to sell the property?
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Fave Places to Eat in Jax: Ponte Vedra
MY FAVE PONTE VEDRA Places to eat :
- Beach Diner: Sweet and savory breakfast, brunch and lunch options. A local favorite!
- McFlamingo: Healthy salads and sandwiches, perfect for a lunch break.
- Palm Valley Fish Camp: The best fish restaurant in town! Enjoy elevated Southern seafood by the riverfront
- Nona Blue: A happening restaurant in the Sawgrass shopping center. Modern American cuisine
- Anejo: The best Mexican food in town and a mean margarita!
- Medure: For a fancy night out! A European inspired menu and beautifully crafted drinks.
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A Brief History of Jacksonville, FL
A BRIEF HISTORY OF JACKSONVILLE, FLORIDA...
- During the 18th century, Jacksonville was a British settlement. Its original name was Cowford.
- Prior to colonialism, much of Jacksonville was inhabited by the Timucuan Indians.
- In 1562, French Huguenot settlers landed at the mouth of the St. Johns River and later established Fort Caroline.
- Spanish colonies invaded Fort Caroline in 1568, renaming it San Matteo.
- In 1822, Jacksonville was named for Andrew Jackson. At the time, Jackson was the military governor of the Florida territory.
- Jacksonville became an official port of entry in 1822. Since then, the city has grown as a national logistics center.
- Much of Jacksonville’s urban core was destroyed by the Great Fire of 1901.
- Mayport is among the largest U.S. Naval ports in the country.
- All towns within Duval County were consolidated under the city of Jacksonville in 1968.
- By land area, Jacksonville is the largest city in the contiguous United States.
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Costs to Buy a House?
WHAT ARE TYPICAL COSTS TO BUY A HOUSE?
- Earnest Money Deposit (Binder or Escrow Deposit) Typically 1-2% of the purchase price.
Home Inspection: Depends on Square Footage. Starting @ $400-600
Wood Destroying Organisms Report (WDO): Starting @$250
Pool Inspection: Starting @$300
Well lnspection: Starting @$300
Septic Inspection: Starting @$400
Mold Inspection: Starting @$300
Sewer Scope Inspection: Starting @$400
Radon: Starting @$500
Insurance Inspections: Wind Mitigation/4pt: Starting @$150
**Not all inspections are required or applicable to every property.**
- Appraisal: Approx $600
- Closing Costs: 3-5% of the Purchase Price
- Down Payment: Your lender will guide you depending on your type of loan (FHA, VA, Conventional, etc) but if you can pay 20% down you can avoid mortgage insurance.
Should I Buy or Rent?
Should I buy instead of rent?
If your’e asking this question, here are some benefits of owning instead of renting…
Tax breaks
Financial gains and equity
Stability
Security, privacy, independence
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Checklist Before Moving into Your New Home
CHECKLIST BEFORE MOVE-IN:
UPDATE YOUR ADDRESS
It’s important to update your address from forwarding your mail to banks, insurance and car registration
CONNECT TV AND INTERNET
Schedule installation a few weeks before to ensure that your services are activated in a timely manner.
TAKE OFF FROM WORK
Packing, moving and unpacking is a lot of work, and it can be stressful. Taking time off work can take off some of the stress and make the whole process much more enjoyable.
GATHER IMPORTANT DOCUMENTS
Gather all birth certificates, social security cards, passports, insurance policies, medical records and keep them in a place they wont get lost.
TRANSFER UTILITIES
Before you move into your new home, you need to set up your utilities, water, gas and electricity.
