10 FAQ for Buying a Home in Florida

Why should I buy, instead of rent?

 You'll love the feeling of having something that's all yours - a home where your own personal style will tell the world who you are. A thriving vegetable garden in the backyard, a tiled entryway, a yellow kitchen...when you own, you can do it all your way! But there's more to owning a home than personal satisfaction. You can deduct the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes, too. And interest will compose nearly all of your monthly payment, for over half the number of years you'll be paying your mortgage. This adds up to hefty savings at the end of each year. And you're also allowed to deduct the property taxes you pay as a homeowner. If you rent, you write your monthly check and it's gone forever. Another financial plus in owning a home is the possibility its value will go up through the years.

What should be my first step?

Determine what you can afford so you can understand how much of a mortgage you will need and how it will affect your household expenses every month.

I've had bad credit, and I don't have much for a down-payment. Can I become a homebuyer?

You may be a good candidate for one of the federal mortgage programs that are available. A good place for you to start is by contacting one of the HUD-funded housing counseling agencies. They can help you sort through your options. In addition, contact your local government to see if there are any local home- ownership programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.

I'm a single mother. How would I go about buying a home?

Although you won't have the benefit of two incomes on which to qualify for a loan, there's no reason that you can't become a homeowner. Become familiar with the process, pick a good real estate broker, and think about getting pre-qualified for a loan. You might want to contact one of the HUD-funded housing counseling agencies in your area to talk through your options. And you also might want to think about buying a HUD home - they can be very good deals. Also, contact your local government to see if there are  any local home buying programs that could help you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.

What does pre-qualify really mean?

You find an expert in home financing who will help you determine if you can afford to buy a home and if you can afford to pay for it monthly.  Pre-Qualifying is free. It will only cost you some time to make a phone call or to meet the expert.

Who can pre-qualify me?

The best person is a Licensed Mortgage Broker, or an Accountant. There are many ways to find a Licensed Mortgage Broker. They may be affiliated with the Real Estate Brokerage of the Realtor you work with, you may get a recommendation from a friend or you can visit your local bank and ask to nspeak with the licensed mortgage broker there.

They’ll ask you a few questions about your yearly income, your monthly expenses, your credit card debt, car loans and how much money you have available to use a down payment. They will also ask for Social Security number(s) so they can obtain a credit score. Once all this information is collected, they can counsel you on how much you can pay for a home based on all the information you gave them, the current status of interest rates and the down payment requirements of the mortgage lenders.

Where do I want to live?

Location, Location, Location. Really, it’s true. People are most satisfied with their home purchase because they knew what surrounding amenities were most important to them and their family. Here is a list of some things you must consider and put them in order of importance:

Schools

Location of Work

House of worship

Transportation Options that have an impact such as public transportation

Access to highways, airports, and shopping

Recreation; such as Parks, Swimming, Tennis, Golf, YMCA, etc.

What Type/Style of Home do I want?

Single Family,  Town Home, Villa or Apartment/Condo.

What are the most important features I want in my home?

Number of bedrooms & baths

Great Room and/or Formal Living Room

Formal Dining Room

1 or 2 car garage

Large lot

Direct Waterfront & type of water front

Pool

Age of Home

Enclosed Patio

Anything else would you like...

What is the difference between a community with a Home Owners Association (HOA) and one without besides the monthly member fees?

There are many differences, however the most important is that when you have an HOA you have Written Rules that every homeowner agrees to live with. The differences that exist between individual HOA’s is so varied since they are determined initially by the developer then modified by the homeowners.

The best way to learn about the HOA Rules of any of the communities you are interested in is to ASK YOUR REALTOR. This will help you decide which community is the best fit for your ideals. Their knowledge of the various communities is just one of the important services a realtor can provide to make your search and purchase less stressful.

Mary Zohar, is a long-standing member of the Coldwell Banker North Tampa Office and an active member of the Greater Tampa Associates of Realtors. Besides having a Bachelor in Science from the University of Florida, she holds: Certified Home Marketing Specialist, Certified Negotiation Specialist, e-Pro, Short Sale and Foreclosure, and Accredited Buyer Representative and Certified Residential Specialist certifications; and received the International Diamond Society Award this past year. She also is the representative of the North Tampa office for Coldwell Banker CARES.  And is current in Continuing Education and licensure for the State of Florida.

Having lived in the Tampa Bay area since 1981, makes her an expert in the the community at large. If she doesn't know what you're looking for, she surely knows who to ask or how to find out. Watching Tampa Bay grow, after these years makes her knowledge priceless. She can be reached at 813-417-6696, and is eager to assist you with all of your Real Estate needs.

13% of Consumers Ready to Buy a Luxury Home

In a new survey, realtor.com® uncovered the priorities, buying motivations and expectations of transaction-ready luxury homebuyers. According to the survey, 13% of respondents said they’re ready to buy a luxury home and another 26% are considering a high-end home purchase.  

Percentages of surveyed consumers currently considering a luxury home purchase:

§  13% of respondents stated that they are looking to purchase a high-end luxury home;

§  26% said they might be considering a high-end luxury home;

§  61% revealed they are not looking for a high-end luxury home.

Most popular price points at which surveyed consumers stated that luxury housing begins, by U.S. region:

§  Northeast (ME, VT, NH, NY, NJ, MA, CT, RI, MD, DE, PA)                           $1 million +

§  Pacific (CA, OR, WA, AK, HI)                                                                        $1 million +

§  Mountain (MT, ID, WY, CO, UT, NV, AZ, NM)                                               $1 million +

§  South Central (AL, MS, TN, AR, LA, TX, OK)                                               $500,000 +

§  North Central (KY, OH, IN, IL, MI, WI, MN, IA, NE, KS, ND, SD)                  $500,000 +

§  South Atlantic (VA, WV, NC, SC, GA, FL)                                                     $500,000 +

“The luxury homebuyer is an important contingent of today’s real estate market, as luxury homes tend to drive trends throughout the entire balance of the marketplace,” said Barbara O’Connor, chief marketing officer at Move, Inc. “We are seeing large portions of buyers throughout the country – from 23% in the Northeast region and 23% in the South Atlantic – eyeing luxury homes.”

“This means sellers, builders, and certainly REALTORS® should all be paying particular attention to desired luxury amenities such as chef-quality kitchens and master suite features to close deals for them.”

Of the survey respondents who are currently looking for a luxury home:

§  Most popular reasons high-end buyers started their luxury home search:

§  19% shared that recent career success prompted their home search;

§  17% of luxury home buyers indicated they entered the market because they are newly retired;                        

§  14% indicated that they are entering the market as an investment;

§  12% revealed they have entered the market to buy their first home.

§  Biggest challenges of searching for a high-end luxury home:

§  40% of luxury buyers cited finding a property that meets their family’s needs;

§  20% shared their biggest challenge is the limited number of properties offered;

§  11% tout ultra-unique properties with limited universal appeal;      

§  8% are challenged by gaining access to mortgage loans.

§  Most important home features when considering a luxury purchase:

§  54% of luxury buyers indicated a chef’s kitchen as an important feature;

§  44% consider the home’s views of oceans, mountains, or cityscapes as significant;

§  38% responded that the square footage of the property is key attribute;

§  36% included the presence of an expansive master suite as an important factor.

§  Importance of resale value to those in the market for a luxury home:

§  35% indicated it is very important;

§  29% shared it is neither important or unimportant

§  27% of luxury buyers said resale value is extremely important;

§  Only 8% consider resale value to be unimportant.   

§  Regional breakdown of current luxury home buyers:

§  23% live in South Atlantic (VA, WV, NC, SC, GA, FL);

§  23% are in the Northeast (ME, VT, NH, NY, NJ, MA, CT, RI, MD, DE, PA);

§  18% live in North Central (KY, OH, IN, IL, MI, WI, MN, IA, NE, KS, ND, SD);

§  15% are in the Pacific (CA, OR, WA, AK, HI);

§  14% live in South Central (AL, MS, TN, AR, LA, TX, OK);

§  7% selected Mountain (MT, ID, WY, CO, UT, NV, AZ, NM).

Of the survey respondents who are NOT in the market for a luxury home:

§  If respondents had an extra million dollars to invest in a home, they would use it in the following ways:

§  28% would sell their current home and purchase a new home;

§  23% would keep their current home and purchase either a new or vacation home;

§  14% indicated they would purchase several homes;

§  14% would purchase their first home.          

§  If respondents were in the market for a luxury home, they indicated the following priorities for their property search would be:

§  55% of respondents desired a view;

§  45% fancied an chef’s kitchen;

§  32% indicated an outdoor living area (outdoor kitchen, living room, fire pit, bar) would be key;

§  29% wished for a luxury pool (infinity, grotto, water slide) as imperative.

§  If these respondents were in the market for a luxury home, their most desirable locales for purchase would be:

§  37% would buy a waterfront property;

§  19% would like a countryside property;

§  14% would choose a mountainside property;

§  13% desire a suburban property.

§  The respondents not currently in the market for a luxury home indicated that their top stylistic preferences would be:

§  13% would want a traditional home;

§  13% would prefer a contemporary home;

§  11% would select a coastal home;

§  11% would choose a modern home.

Realtor.com® surveyed more than 1,500 site visitors from March 17 to April 2.

Full Article http://www.realtor.com/news/realtor-com-survey-39-consumers-may-considering-luxury-lifestyle/

How to Fulfill Your Fantasy With a Custom Home

If you dreamed as a child of someday owning a home with your own dance studio and ballet barre, or a personal game room with a Skee-Ball machine alongside an indoor putting green, then a custom home may be your best option to making that dream come true.
While buying a home fulfills a big part of the American Dream, building a home to your specifications elevates the experience. Before you begin to make decisions about your future home, you will need to spend significant time learning about the custom-home building process.
Organize Your Financing
Building a custom home isn’t necessarily more expensive than buying a newly built or existing home since it’s possible to build a small custom home, but sourcing all materials on an individual basis rather than in bulk can raise the price above production homes. The important thing to understand is that your decisions about the land you buy, and the design and quality of construction you choose will impact the final price.
Financing a custom home requires a construction loan, something not all lenders offer. If you don’t already own land, you will have to finance the land purchase and then the construction. Often you will have two closings, each incurring settlement fees.
Since building a custom home is considered risky by lenders, you typically need excellent credit and a down payment of at least 20% to 25% to qualify for a construction loan. In addition, lenders typically require more cash reserves for borrowers who are building a custom home to ensure that they have funds in place for any glitches that extend the construction period.
Make sure you check into appropriate insurance, too, during the construction period.

Read more of this article originally posted at: http://www.realtor.com/advice/fulfill-fantasy-custom-home/