Stuart Florida Real Estate

Question of the Day: Should I lock in my mortgage rate?

Eric Slifkin — Mon, 14 May 2012 02:21:09 +0000

Q: Should I lock in my mortgage rate?

A: Because the interest rate market fluctuates constantly and is subject to quick movements without notice, locking in a mortgage rate with a lender certainly protects you from the time your lock is confirmed to the day it expires.

Lock-ins make sense in a rapidly-rising rate environment or when borrowers expect rates to climb during the next 30 – 60 days, which is typically the amount of time a lock-in remains in effect.

A lock-in given at the time of application is useful because it may take the lender several weeks to prepare a loan application. These days, however, automated loan practices have cut the time quite a bit.

Lock-ins are not necessarily free. Some lenders require you to pay a lock-in fee to guarantee both the rate and the terms.

If your lock-in expires before you close on the loan, most lenders will base the loan rate on current market interest rates and points.

This post has been authored by Eric Slifkin, REALTOR® serving South Florida’s Treasure Coast. You can reach me at 888-288-1765, or visit my Web site. As your resource for information on new or resale homes throughout the Treasure Coast, please be sure to contact me about any home you may find on the Web, yard sign or ad and I will research the property, arrange showings and handle all the details.

Common Red Flags to Watch Out for When Searching for Your Dream Home

Eric Slifkin — Mon, 14 May 2012 02:19:54 +0000

Article By Keith Loria

More often than not, sellers don’t always disclose everything that may be wrong with their home when going through the selling process. While no house is ever as “perfect” as it may appear, a little due diligence on the part of you and your agent can ultimately save you headaches down the road.

Start by taking a look around the neighborhood and see if other real estate signs litter the lawns nearby. Go to the local stores and see if any are closing down or have been vandalized. If you notice that a lot of people are looking to leave the neighborhood, there’s probably a reason why. You may have found a great home, but if it’s in a bad neighborhood, it’s going to affect the value.

You also need to pay close attention to the way the exterior of the home has been treated. If you see extra layers of roofing, boards near walls, plants growing out of the gutters or lots of cracks in the pavement, chances are not much care went into maintaining the property.

While you’re outside, look at the yard grading. If the yard slopes toward the house, it could cause a serious water problem with water running down the foundation walls or into the basement. Scour the foundation for damage as bulges or cracks bigger than one-third of an inch can mean the house has serious structural issues.

Don’t be afraid to use your nose—as well as your eyes—to uncover potential red flags. If you smell sewage, gas or anything else that’s unpleasant, it could be because of some serious issues. If you are getting close to making the decision to buy, it might be a smart idea to hire a plumbing company to send a camera through the pipes to determine if there are any blockages or breaks.

When it comes to the inside of the home, one of the most important things to look at is the wiring. Be sure to flip the light switches to make sure they work and check the fuse box to see what condition it’s in. In addition, ask if the electric has been updated in the last 10 years, because that’s something that can be costly to fix once you move in.

Last but not least, check for bugs, ants and traps hidden in the corners or under baseboards. A savvy home seller won’t leave mousetraps out, but they often forget about the little roach motels. While little creatures in the house shouldn’t immediately scare you away, if you see a lot of ants—especially carpenter ants around wood—it could be a sign that there’s a problem.

Remember, the job of the home seller is to make the house as attractive as possible and hide all of its faults. With a little detective work, you can save a lot of time and money in the long run and make sure the house is good enough to become your home.

Contact our office today to learn more about warning signs that shouldn’t be overlooked.

Question of the Day: What is a lease option?

Eric Slifkin — Tue, 24 Apr 2012 12:56:27 +0000

Q: What is a lease option?

A: It is an agreement between a renter and a landlord in which the renter signs a lease with an option to purchase the property. The option only binds the seller; the tenant has a choice to make a purchase or not.

Lease options are common among buyers who would like to own a home but do not have enough money for the down payment and closing costs. A lease option may also be attractive to tenants who are working to improve bad credit before approaching a lender for a home loan.

Under this arrangement, the landlord agrees to give a renter an exclusive option to purchase the property. The option price is usually determined at the outset, but not always, and the agreement states when the purchase should take place.

A portion of the rent is used to make the future down payment. Most lenders will accept the down payment if the rental payments exceed the market rent and a valid lease-purchase agreement is in effect.

Before you opt to do a lease option, find out as much as possible about how they work. Have an attorney review any paperwork before you and the tenant sign on the dotted line.

Why Low-ball Offers Don’t Work Anymore

Eric Slifkin — Mon, 23 Apr 2012 20:00:37 +0000

Low-ball offers don’t work anymore!

WASHINGTON – April 23, 2012 – When the number of home sellers grossly outpaces the number of buyers, no offer can be ignored, even if it’s 25 percent or more off the asking price. But in today’s rebounding market, those low-ball offers don’t often work. Many times, the potential buyer finds that they don’t get a counter-offer. And, in many cases, another more realistic buyer gets the home.

A low-ball offer – generally 25 or more off the asking price – allows buyers to see if they can land a great deal, even if they’re willing to pay more. In a survey last year conducted by the National Association of Realtors® (NAR), one in 10 respondents cited low-ball offers as a concern. According to real estate columnist Kenneth Harney, a NAR survey conducted in March and not yet released found that almost no one complained about low offers.

When the number of listings outpaced the number of buyers, many potential homeowners submitted a shockingly low offer on the theory that they had nothing to lose. If the seller balked, most would still counter with something below their asking price. Today, however, offers close to the asking price – or even beating it – will probably come in fairly quickly from someone else if a home is priced correctly in the first place.

Even buyers who still want to low-ball an offer on a home many times switch tactics after they lose a property or two to a more aggressive buyer.

Florida Realtor Marnie Matarese works with J Wood Realty in Sarasota. She told Harney that fewer buyers want to low-ball an offer in her area, but they still come in – mainly from out-of-state or out-of-the-country people who have read about the state’s foreclosures and short sales. That news, however, is old – it has not kept up with reality in many areas.

Matarese says some people still insist on making a low-ball offer, but that she doesn’t mind. “You can’t blame a buyer for trying to get a good deal,” she says.

In some cases, a seller isn’t offended by a low-ball offer, but their counter-offer shaves only a little bit off their original asking price. An Olympia, Wash., real estate agent had a $150,000 offer for a $250,000 listing, according to Harney. But after the dust settled and the seller shook off his irritation, he and the buyer agreed to $230,000.

Harney closed his column with this advice: “Rolling low-balls at sellers may have been an effective approach between 2008 and early 2011. But in 2012’s environment – at least in rebounding markets – it could be counterproductive if you truly want to buy.”

Source: Ken Harney. Distributed by Washington Post Writers Group.

Palm City Neighborhoods: Meadow Run

Eric Slifkin — Tue, 17 Apr 2012 10:56:43 +0000

Meadow Run in Palm City

Meadow Run is a gated equestrian community situated on over 500 acres of pristine terrain.

Located in the Palm City Farms section of Palm City, the community’s 91 five acre parcels are surrounded by miles of bridle paths, yet is just minutes to shopping, highways and “A” rated Palm City schools.

Home sites in Meadow Run are an excellent value in today’s market, with resales being offered at less than half their 2005 price.

Working with a Realtor: Top Ten Home Buyer Expectations

Eric Slifkin — Sat, 07 Apr 2012 15:14:03 +0000

What should you expect from a buyer’s agent? Having served hundreds of buyers over my decade in Stuart, Florida real estate, I have found that most buyers share the same expectations when it comes to working with an agent. Here is what I have found to be most important to home buyers when working with a Realtor:

Help with finding the best home for them.
Help them understand the home-buying process
Provide geographic knowledge of surrounding home search areas
Show them all homes available within their price range and search criteria.
Point out unobserved features or faults with a property.
Help to negotiate the best possible price and terms of the sale.
Provide estimate of closing costs
Manage the paperwork flow.
Furnish a list of service providers.
Help resolve mortgage, inspection, and other pre-closing issues.

These are but a few of the many issues and concerns facing home buyers in today’s market. Please feel free to add your own wants and needs in the comments section below.

Treasure Coast Neighborhoods: Historic Downtown Stuart, Florida

Eric Slifkin — Tue, 03 Apr 2012 05:15:54 +0000

The quaint riverside city of Stuart has long been enticing people to its shores. Known as “Historic Downtown Stuart“, the emerging downtown area is developing its own vibe similar to Delray’s popular Atlanic Avenue. Here you can enjoy an afternoon by the waterfront listening to an outdoor concert, wine and dine in great restaurants, or just take a breather from the stress of work in one of several cafes and watering holes.

Demand for homes close to downtown Stuart has grown in recent years among home buyers seeking a downtown lifestyle, easy access to recreation, and neighborhoods with a strong historic bond. The greater Stuart area also offers a variety of housing options from gated subdivisions to equestrian and beach front properties. Recognizing Stuart’s desirability, strict controlled growth policies have been instituted to maintain the regions rural flavor and “family friendly” nature.

Florida on Positive Track

Eric Slifkin — Wed, 21 Mar 2012 21:01:32 +0000

Fla.’s housing market continues on positive track in Feb.

Feb. existing-home sales slip but up strongly from year ago

ORLANDO, Fla. – March 21, 2012 – Pending sales and median prices rose, while the inventory of homes for sale dropped in Florida’s housing market in February, according to the latest housing data released by Florida Realtors®.

“Growing optimism about the economy, gains in the state’s jobs market and continued low mortgage rates are generating interest in Florida real estate,” says 2012 Florida Realtors President Summer Greene, regional manager of Better Homes and Gardens Real Estate Florida 1st in Fort Lauderdale. “Increased statewide pending sales for both single family existing homes, up 36.1 percent, and for townhouse-condo properties, up 19.8 percent, show that buyers are encouraged by these positive signs.”

Pending sales refer to contracts that are signed but not yet completed or closed; closed sales typically occur 30 to 90 days after sales contracts are written.

The statewide median sales price for single-family existing homes in February was $134,000, up 7.2 percent from the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department and vendor partner 10K Research and Marketing. The statewide median for townhome-condo properties was $95,000, up 15.9 percent over Feb. 2011.

The national median sales price for existing single-family homes in January 2012 was $154,400, which is 2.6 percent below the previous year, according to the National Association of Realtors® (NAR). In California, the statewide median sales price for single-family existing homes in January was $268,280; in Massachusetts, it was $265,000; and in Maryland, it was $219,500.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Statewide sales of existing single-family homes totaled 14,270 in February 2012, down 4.8 percent compared to the year-ago figure. Looking at Florida’s year-to-year comparison for sales of townhomes/condos, a total of 7,545 units sold statewide last month, down 16 percent from those sold in February 2011. NAR reported the national median existing condo price in January 2012 was $156,600.

In February, the months supply of inventory stood at 6.2 for single-family homes and at 6.3 for the condos/townhomes, according to Florida Realtors.

“The overall picture that these statistics show is of a stabilizing housing market,” said Florida Realtors Chief Economist Dr. John Tuccillo. “While closed sales are down, so are listings and so is inventory. These are signs of a market that’s moving from being a buyer’s market to a balanced market.

“For the past year, median sales prices have been slowly rising; and over a longer period of time, prices have really flattened out – again, signs of an improving housing market.”

The interest rate for a 30-year fixed-rate mortgage averaged 3.89 percent in February 2012, down from the 4.95 percent average during the same month a year earlier, according to Freddie Mac.

To see the full statewide housing activity report, go to Florida Realtors Media Center and look under Latest Releases, or download the February data report PDF under Market Data.

Florida Ranked First in 2011 Home Sales to Canadians

Eric Slifkin — Fri, 16 Mar 2012 02:51:52 +0000

Florida ranked first in 2011 home sales to Canada

SARASOTA, Fla. – March 15, 2012 – The strength of the Canadian dollar, sustained low pricing in the U.S. housing market, and perceptions regarding the general economic outlook continue to encourage Canadians to purchase a home in the Sunbelt states.

According to the National Association of Realtors® (NAR) 2011 Profile of International Buying Activity, Florida and Arizona are top choices because of their favorable winter climate. In fact, 58 percent of all international sales in 2011 came from just four states: Florida at 31 percent, followed by California at a distant 12 percent, Texas accounted for nine percent and Arizona at six percent.

Even for international buyers it’s location, location, location. Forty-three percent of those surveyed report a favorable location as their clients’ most important factor when choosing where to purchase. That was followed by 27 percent who stated their clients’ top reason to buy in the U.S. was that they view U.S. real estate as a profitable investment.

Canadians specifically purchase due to a perceived positive return on their investment. They also showed a strong desire for a lakefront recreational location. In fact, eight percent of Florida re-sales were to Canadians in 2010. Similar culture, closeness to their native homeland and lack of a communication barrier are also factors steering Canadians to the lower 48 U.S. states.

The NAR profile also showed that in the 12-month-period ending March of 2011, Canadians accounted for 23 percent of all foreign buyers – the largest of any country. In a 2010 article, Canada’s largest daily newspaper The Globe and Mail reported that a vast majority of Canadians were paying cash for their purchase.

“There are few lenders who have a mortgage process tailored for Canadians looking to purchase a home in the U.S.,” said Sheila Blom, Florida mortgage market manager for M&I, a part of BMO Financial Group. “Our parent company is based in Toronto, so naturally we have relationship products specifically designed to meet the needs of Canadian customers for purchasing or refinancing their primary residence, second home or investment property in the U.S.”

Laundry Room Revamp Can Make a Difference When Selling Your Home

Eric Slifkin — Tue, 13 Mar 2012 12:08:10 +0000

It is not an exciting subject, but the laundry room is often overlooked when getting ready to sell your home. Old or mismatched appliances in a dingy setting can be a real turn off to buyers. On the other hand, a freshly painted, well-lit laundry room with new appliances will make a great impression on potential buyers touring your home.

Laundry Room Revamp: Add a Touch of Convenience to Laundry Day with Updated Appliances (Article courtesy of By Keith Loria)

Anyone who has recently gone through the process of getting their home ready for sale can attest to the fact that there is no shortage of things to be done before putting a home on the market. If you’re planning on taking advantage of the spring selling season and listing your home within the coming months, be sure to add the laundry room to your list of projects that can’t be overlooked.

For sellers who really want to make a statement with their laundry room, adding new, energy-efficient washers and dryers can go a long way toward attracting prospective buyers. Thanks to new washer and dryer technologies, today’s models will not only save time and energy, they may even make laundry feel like less of a chore.

According to the U.S. Department of Energy, installing machines with the ENERGY STAR label will cut water costs by up to 50 percent. There are also machines that automatically adjust the water temperature and the amount of water used for each load to prevent excess and waste.

Many new models are available in a variety of designer finishes and bright colors that give the look of stainless steel without the stainless steel price tag, which can really make a bold statement.

If you’re planning to add a new washer to your laundry room, the first thing you need to decide is whether to go with a front- or top-loading machine. While a top-loading machine requires enough water to cover all the clothes in its drum, a front-loading washer needs only a third of that amount because its drum is set horizontally in the machine. One downside to front-loading washers: cost. In addition to being more expensive, there’s also a better chance for front-loading washers to develop mold since they don’t empty dirty water as efficiently as a top-loading machine.

When it comes to dryers, sensors are the thing to look for. Consumer Reports revealed that dryers with a moisture sensor tend to recognize when laundry is dry more quickly than machines that use a traditional thermostat. Because they don’t subject clothing to unnecessary heat, moisture-sensor models are easier on fabrics. And since they shut themselves off when the laundry is dry, they use less energy.

The use of steam washers and dryers for greater energy and water efficiency is also a rising trend. Steam machines offer enhanced clothing care options such as short, steam-only cycles that help to reduce wrinkles and remove odors from clothing.

Laundry rooms used to be relegated to the basement, but today, people are finding space for washers and dryers in more convenient areas of the house such as the kitchen or near bedrooms. Housing experts agree that installing a laundry nook will not only raise the value of a home, it will also make laundry day much more convenient.

For more information about revamping your laundry room, contact our office today.