Prior to Listing your Home

It has been my experience that most people want a move in ready home.  Here are some relatively cheap items that could be completed prior to listing your home for sale:

  • Paint is easily the best thing to do. If you do it yourself, it’s also very cheap.
  • Curb appeal is also important and gives you potential sense that the property is well taken care of (i.e. replacing sod, trimming trees and bushes, cleaning up junk, adding flowers, etc.).
  • Patching holes and cracks in the walls and ceilings.
  • Change any dated light fixtures or ceiling fans.
  • Taking down personal items like photos to allow them to envision there items in the home.
  • Keeping the property clean.
  • Lamiante flooring versus carpet can also give that clean look that people like to see.
  • Updated homes (primarily the kitchen and bathrooms) are generally more desirable than dated homes as well as sells for more.
  • Major items like a new roof and HVAC are great selling items, but are expensive.

Some people have a pre-sale inspection to determine what needs to be fixed. However, this is not necessary to sell the house. Every home has issues that could be fixed, but do not affect the listing price it fixed.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

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Tampa Bay MSA Single Family Market June 2019

We have presented an overview of the Tampa MSA and Hillsborough County Single Family Residential market.

National and Regional Single Family Market

According to NAR, existing single family homes sales have decreased slightly with projected annual sales of 4,690,000 units in June 2019 versus 4,770,000 units in June 2018.  Statistics in the South has remained the same with annual sales of 1,980,000 between June 2019 and June 2018.

NAR Sales June 2019

As of June 2019 there was a 4.4 month supply of inventory available, which was down 2.3% from the previous year, nationwide.

Meanwhile, the median nationwide existing single family home price was $288,900 in June 2019, which is up 4.5% from a year ago.  The median price in the South was $254,900, which was up 4.5% from the previous year.

The average nationwide existing single family home price was $323,600 in June 2019, reflecting a 3.2% increase from a year ago.  The average price in the south was up 3.2% from the previous year.  Since the average sale price is significantly higher than the median sale price, there is a significant amount of higher end product being sold.

NAR Sale Price of Exxisting Homes 6 19

Florida Single Family Market

The following data was prepared by the Florida Association of Realtors (FAR).  As can be seen in the following charts, sales of single family homes increased in 2019 from 2018 numbers.

Florida SF 2019

Along with increases in the number of sales, pricing also increased in 2019.

Fla Median Sale Price 2019

Avg Sales Price 2019

Tampa Bay Single Family Market

The following data was prepared by the Greater Tampa Association of Realtors (GTAR).

GTAR June 2019

As can be seen in the following charts, sales of single family homes has increased in 2019 from 2018 numbers.  Sales in the first six months of 2019 decreased 1.6% from 2018.  However, the months supply of inventory decreased 3.6% during the same time frame.

Tampa Bay Closed Sales 2019

MONTHLY SALES FIGURES

Both in the first six months of 2019 over the same time frame in 2018, with the median sales prices increasing 2.0% and the average sales price up 2.9%.  It should also be noted that the prime time to sale properties in the summer months.

Fla Median Sale Price 2019

TAMPA MSA MONTHLY MEDIAN SALES PRICE FIGURES

Avg Sales Price 2019

TAMPA MSA MONTHLY AVERAGE SALES PRICE FIGURES

CONCLUSION

The Tampa Bay MSA experienced large growth in residential housing during the residential “boom” period of the early to mid 2000’s. Since the beginning of 2014, the market has shown increases in both pricing and sales figures.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

 

Active Versus Passive Income

According to Investopedia, here are a few terms that a real estate investor should know:

What is Passive Income

cropped-cropped-cropped-img_3917_thumb1.jpgPassive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and interest would therefore be considered passive.

Understanding Passive Income

Main EntranceThere are two main categories of income: active income and passive income. Active income is something where you will be investing lot of time. For example, consider you are working on a daily 9 to 5 job and get paid at the end of the month. if you stop working you don’t get paid. So you need to keep investing time to get paid. So you need to keep working  (or investing time) to get paid.

Passive income has been a relatively loosely used term in recent years. It’s been used to define money being earned regularly with little or no effort on the part of the person receiving it. Popular types of passive income include real estate and dividend stocks. Proponents of earning passive income tend to be boosters of a work-from-home and be-your-own-boss professional lifestyle. The type of earnings people usually associate with this are gains on stocks, interest, retirement pay, lottery winnings, online work and capital gains.

cropped-summit-swimming-pool1.jpgThe trouble with a job or “active income” strategy is that you always have to work or the income dries up. One of Warren Buffet’s famous quotes is  “If you don’t find a way to make money while you sleep, you will work until you die.” So it makes sense to build enough position financially to start chasing passive income. If you manage your money better than most of the American public during their career, you will have “passive income” that can allow you to gradually scale back your “active income” efforts to be able to retire early. The goal is to earn more passive income than your monthly expenses. The sooner you do it, the sooner you can retire. (i.e. we afford retirement because of years of putting money in investment accounts  or real estate and earning interest on these investments).

How is Passive Income Taxed?

deposit-clipart-gold_theme_money_dollars_clip_art_7759 - CopyYou can only treat rental real estate as an active business if you meet stricter tests to be a real estate professional, which requires at least 750 hours of service and more than half of all personal service you provide to be in the real estate category.

Those who don’t meet this test can qualify for a limited $25,000 allowance for losses if they qualify as an active participant. Active participation requires only limited activities, such as approving new tenants, setting rental terms, and approving payouts. If you qualify, you can then take up to that limited amount of loss each year, carrying over any excess losses until you generate rental income to offset it.

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

 

The Importance of owning your own home

moneyhands_217w_gif

“Although the average American household has saved roughly $175,000 in various types of savings accounts, only the top 10 percent to 20 percent of earners will likely have savings levels approaching or exceeding that amount with 29 percent of households have less than $1,000 in savings,” MagnifyMoney reports.  According to http://www.magnifymoney.com, the top 1% of households (as measured by income) have an average of $2,517,270 in these various saving accounts. The bottom 20% have an average of $8,790. with roughly 83% of savings are in located in retirement accounts like IRAs and workplace-sponsored retirement savings plans like 401(k)s.

IMG_8520According to wallethacks.com, if you have a net worth of $194,226 when you hit 65 and expect to spend only 4% a year, that gives you $7,769 a year or less than $650 a month. Even with the average monthly Social Security benefit at $1341 (2016 data), that’s still less than $2,000 a month in retirement income. That’s the median. Half get more, half get less.  As you can see in the below exhibit, it is important to own your own home:

net worth

According to a recent survey by GObankrates, the 2018 Retirement Savings survey found that 42 percent of Americans have less than $10,000 saved. If they don’t boost their savings, they’ll likely retire broke because that’s not enough to cover a year’s worth of expenses. On average, adults 65 and older spend almost $46,000 a year, according to the Bureau of Labor Statistics. Included in that 42 percent with less than $10,000 saved is the 14 percent of respondents with absolutely nothing saved for retirement.

As a percentage of total net worth, here’s how home equity stacks up in each age group:

Net Worth as %

In the Real Estate Market?

KW1784102f20KW.jpgBeach NorthYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

 

 

Real Estate Assessment Portability in Florida

IMG_9119[1]Florida has a long history of manipulating the ad valorem taxes for its property owners.  Some of these include the amount of the homestead exemption, save our homes benefit. (limits the increases in assessed value to 3% or Consumer Price Index (CPI) whichever is less), and the latest is portability, also known as the “Transfer of Homestead Assessment Difference”, is the ability to transfer the dollar benefit of the Homestead CAP from one Homestead to another. The Homestead CAP is the difference between market or just value and assessed value, often known as the Save Our Homes Benefit. You may only go only one tax year without having a homestead exemption in order to transfer your CAP.

General Information

  • There are time limits that apply – you may transfer your CAP as of January 1 of either of the 2 immediately preceding years.
  • Homestead Exemption Application required, along with the Transfer of Assessment Limitation Application (DR-501T “Transfer of Homestead Assessment Difference” application)
  • The maximum amount of CAP transfer from a single homestead is $500,000.
  • The portability benefit is based on a precentage of the difference between the just value and assessed value of the property.   Thus, the benefit is maximized when a property owner “upsize” (buying a higher valued property), but still benefits from “downsize” (buying a lower valued property) too (although not as much).
  • It can be used an unlimited number of times.
  • The Taxable Value is multiplied by millage, which is determined by local government each year.  This just shifts the tax burden to other property owners.
  • Applies to all Florida counties.

Conclusion

Although most people think that these changes help them to reduce their real estate tax burden, it appears to be more favorable for the richest property owners with not only limits the increases of assessed values (under save our homes) and portability favoring higher priced real estate.  In addition, the property appraiser has to hire more people to oversee the calculation of these changes.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

Credit Reporting Can Stop Your Dreams of Home Ownership.

IMG_0331According to Investopedia, “A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history. Lenders use credit scores to evaluate the probability that an individual will repay his or her debts. A person’s credit score ranges from 300 to 850, and the higher the score, the more financially trustworthy a person is considered to be. The credit score model was created by the Fair Isaac Corporation, also known as FICO, and it is used by financial institutions. While there are other credit-scoring systems, the FICO score is by far the most commonly used.”

Investopedia further states that “A credit score plays a key role in a lender’s decision to offer credit. People with credit scores below 640, for example, are generally considered to be subprime borrowers. Lending institutions often charge interest on subprime mortgages at a rate higher than a conventional mortgage in order to compensate themselves for carrying more risk. They may also require a shorter repayment term or a co-signer for borrowers with a low credit score. Conversely, a credit score of 700 or above is generally considered good and may result in a borrower receiving a lower interest rate, which results in them paying less money in interest over the life of the loan.”

FHA Loan Requirements

With nearly 1 in 5 U.S. buyers using a FHA loan to finance a home purchase, here is how credit effects FHA loans. Applicants are now required to have a minimum FICO score of 580 to qualify for the low down payment advantage, which is currently at around 3.5 percent.  If your credit score is below 580, however, you aren’t necessarily excluded from FHA loan eligibility. Applicants with lower credit scores will have to put down a 10 percent down payment if they want to qualify for a loan.

Conclusion

Thus, It is important to understand that a better credit score can really pay off not only the payment for a new home, but also in the amount of interest paid over the life of the loan. You got to ask yourself “Why would I want to pay more for the same home because I did not manage my credit score,”

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.

Property Assessed Clean Energy (PACE) loans

The following is excerpts from Attorneys’ Real Estate Councils of Florida and loan_application_clip_art_24699quoted verbatim:

 Property Assessed Clean Energy (PACE) loans, which are used to make certain qualifying energy efficiency and hurricane hardening improvements to commercial and residential properties, are increasing in popularity but unfortunately many buyers and sellers do not understand how they work and how they can complicate the real estate closing process.  Here is what you, as a real estate professional, need to know about this increasingly popular financial product.

moneyhands_217w_gifGetting a PACE loan is easy.  Qualifying requirements for PACE financing agreements are relatively simple and are based on the home’s equity and tax payment history. The approval process typically takes less than an hour.  In May 2018, President Trump signed the Dodd-Frank Wall Street Reform Act which directed the Consumer Financial Protection Bureau (CFPB) to create federal oversight of, and rules for, the program so new requirements may be added, requiring residential consumers to pass an “ability-to-pay” analysis before they are approved. Florida, California, and Missouri are the only three states with PACE programs.

Seller Disclosure of the PACE Lien and Non-Ad Valorem Assessment

Sec. 163.08(14), F.S., requires sellers to disclose, in the contract or by a separate writing, the existence of the PACE assessment prior to the execution of the contract by the buyer. The disclosure must be as set forth in the statute:

  • Qualifying Improvements for Energy Efficiency, Renewable Energy, Or Wind Resistance.
  • The property being purchased is located within the jurisdiction of a local government that has placed an assessment on the property pursuant to s. 163.08, Florida Statutes. The assessment is for a qualifying improvement to the property relating to energy efficiency, renewable energy, or wind resistance, and is not based on the value of property. You are encouraged to contact the county property appraiser’s office to learn more about this and other assessments that may be provided by law.

In the Real Estate Market?

KW1784102f20KW.jpgYou should consider using a realtor.  I could save you money especially with new home builders and it does not cost you anything.  So why not? Let me save you money!!!  If you are interested in buying real estate (new home, existing home, or commercial property), please contact me (Alan Lane with Signature Realty Associates at 2234 Lithia Center Lane, Valrico, Florida).  

As a life long resident of Central Florida, I can help you find the right property for you whether it is in Orlando or as far south as Sarasota.  My email address is alanlane66@gmail.com, or call me at 813.205.9280.  If you are just starting your search, you can search the MLS for real estate opportunities on my website at this link.