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July Market Statistics for the Daytona Beach Area Single Family Homes Real Estate Market

July Single Family Homes Report Daytona Beach real estate market by Paige Brewer

Find Your Dream Home at www.RealEstatePaige.com

Top 10 Reasons to Hire a Real Estate Agent

Courtesy of: Park City Real Estate - JensenandCompany.com

Find the "Right" Agent Before the "Right" Home

It’s a common practice for buyers to make a list of what they want in a home during the search process and to explain it to their agent. However, maybe the first list they should make would have the skills they want their agent to have.

The Profile of Home Buyers and Sellers identifies what buyers want most from their agents and as you’d expect, help with finding the right home was ranked highest most often. While it is important, it may not be the most unique of the desired area of expertise.

Equally essential to the success of the transaction are the combination of help with price and terms negotiations and assistance with the paperwork, comparable sales, qualifying and financing.

To summarize the responses in the survey, Buyers want help from their agents with two things: to find the right home and to get it at the right price and terms. Some agents are actually better equipped with tools and acquired knowledge to assist buyers with financial advice and negotiations.

Since an owner’s cost of housing is dependent on the price paid for the home and financing, a real estate professional skilled in these specialized areas can be invaluable in finding the “right” home. An agent’s experience and connections to allied professionals and service providers is irreplaceable.

Ask the agent representing you to specifically list the tools and talent they have to address these areas.

A Home is More Than an Address

A home is a place to call your own, raise your family, share with your friends and feel safe and secure. It is also one of the largest investments most people have.
Leverage is the ability to control a larger asset with a smaller amount of cash through the use of borrowed funds. It has been described as using other people’s money to increase your yield and it applies to homeowners and investors alike. Positive leverage causes the yield to increase as the loan-to-value increases. 
Even a modest amount of appreciation combined with the amortization of a loan can cause a substantial rate of return on the down payment and closing costs.
Homes build equity as the price goes up due to appreciation and the unpaid balance goes down due to amortization.







The example above indicates the yield on a home considering 3% acquisition costs on the home with a 4.5% mortgage rate and the resulting equity at the end of five years. The different down payments will affect the yield based on the leverage effect. 
Whether you rent or buy the home you live in, you pay for what you occupy. The question a person is faced with is whether they are going to buy it for themselves or their landlord. Take a look at the cost of Renting vs. Owning.

Where Is It Invested?

You’ve saved for a rainy day or retirement. Congratulations but don’t get too comfortable yet; where is it invested? It’s estimated that over 25% of Americans have their long-term savings in cash instead of investments like stocks, bonds or real estate.
The memories of the financial crisis of 2008 are recent enough to understand why some people may want to avoid the stock market and real estate. Even though Wall Street and housing have rebounded considerably, uncertain investors are sitting on their cash. However, trying to avoid a bad decision can have serious costs too.
If your money is not earning at least the current inflation rate, you’re losing the purchasing power of your dollars. Bankrate.com estimates the average money-market deposit yields 0.11% and the average five-year certificate of deposit currently yields 0.78%.
Rents are continuing to rise and there is a shortage of good, affordable housing. Single family homes have a significant advantage over many other types of investments. They have high loan-to-value mortgages available at fixed interest rates for long-terms on appreciating assets with distinct tax advantages.
The cash flows are considered to be one of the most attractive features of rental properties. Some investors think of it as a growth stock that pays substantial dividends. In the example shown below, a $125,000 rental with an 80% loan-to-value mortgage at 5% that rents for $1,250 per month, has a positive cash flow before taxes of $3,000 a year.
The rate of return on rental property can be substantially higher than other investments while allowing the investor control that isn’t available in alternatives.

It Can't Hurt to Wait, Can It?

It’s been said that more money has been lost due to indecision than was ever lost because of a bad decision. Regardless of whether you agree with the statement, delaying the decision to buy in today’s market is going to cost the buyer more. 

Home prices have gone up considerably in almost every market in the country in the past year and while inventories are beginning to grow, prices are expected to continue to rise. Mortgage rates jumped 1% from the beginning of May to now. They could easily reach 5% by the end of the year and continue to rise in 2014.

Many of the financial experts in the country believe that the economy will not be strong until rates are in the 7% area.

The two components that move the cost of housing are price and mortgage rates. Escalation of either one will have an affect but when both are going up simultaneously, it is dramatic. It can literally eliminate buyers who could have purchased earlier.

The following example shows what would happen to the payments on a $200,000 home if the price were to go up 3% at the same time that the mortgage rates went up 1%. Not only would the payments go up by $150.81 per month, the price of the home would be $6,000 more. Even though the down payment may not change much, the new owner would have to borrow more money. By not acting, it is costing them more in price and payment. The loss of the appreciation would have been equity had they purchased prior to the rise in price.

Check out the Cost of Waiting to Buy to see what the effect will be using your own projections.

Get Regular Check-ups

Following his heart surgery last week, after an issue was discovered during his annual physical, President George W. Bush encouraged everyone to get regular check-ups. 

Another important checkup that should be done on a regular basis and can be just as beneficial for your finances is an annual homeowner advisory. Why would you treat your investment in your home with less care than you treat your car or even your HVAC system?

Consider investigating the following:

• Know the value of your home by obtaining a list of comparable sales in your immediate area as well as what is currently on the market for sale.

• Have you compared your assessed value for tax purposes to the fair market value in order to possibly reduce your property taxes?

• Even if you’ve refinanced in the last two years, can you save money and recapture the cost of refinancing in the time you plan to remain in your home?

• Have you considered reducing your mortgage debt with low-earning cash reserves that will not be needed in the near future?

• Have you considered investing in rental homes in good neighborhoods to increase your yields and avoid the volatility of the stock market?

• Recommendations of repairmen and other service providers from a trusted source who deals with them more frequently than you do.

Our goal is to create a lifelong relationship to help you be better homeowners. We want to be your “go to” person whenever you have a real estate question. We want to help you not only when you buy and sell but all of the years in between.

We want to provide good, consumer-based information about homeownership on a regular basis through email and social networking. If it benefits you by helping you be a better homeowner, hopefully, you’ll consider us your real estate professional for life.

Anytime you or your friends need help, please call. Knowing where to get the answer is just as important as knowing the answer. If you’d like information on any of the items we suggested, please let us know.

The Dodd-Frank Qualified Mortgage - The Future of Residential Housing

This column is brought to you by the NAR Real Estate Services group.

The Dodd-Frank Qualified Mortgage, or QM, as it is known, is likely to shape the future of housing finance for years to come. The QM comes from the “ability to repay” anti-predatory lending provisions of Dodd-Frank. The original rule proposal was issued by the Federal Reserve in the summer of 2011. However, responsibility for finalizing the rule now lies with the Consumer Financial Protection Bureau (CFPB) who has until the end of 2012. NAR has long supported commonsense underwriting where the borrower’s ability to obtain a loan is based on their ability to repay the loan. However, the CFPB must strive to get this rule right in order to avoid unduly tightening credit and excluding millions of otherwise qualified borrowers from having access to mortgage credit. 

The QM would be a loan that, on its face, would meet the ability to repay standards and have certain features associated with “safe” lending. Under the first proposed approach, a “safe harbor” would be available for a mortgage that meets the following requirements:

(1) It does not include negative amortization, interest-only payments, balloon payments, or have a loan term exceeding 30 years. 
(2) The total points and fees do not exceed 3 percent of the total loan amount. 
(3) The income or assets of the borrower have been considered and verified. 
(4) With regard to underwriting: 

a. It is based on the maximum interest rate in the first five years.
b. It uses a payment schedule that fully amortizes the loan over the loan term.
c. It takes into account any mortgage-related obligations. 

In the alternative approach, a rebuttable presumption of compliance would be available to a mortgage meeting the requirements listed for the safe harbor, as well as the following additional requirements, including considering and verifying: 
(1) The consumer’s employment status
(2) The monthly payment for any simultaneous mortgage
(3) The consumer’s current debt obligations
(4) The monthly debt-to-income ratio or residual income
(5) The consumer’s credit history

The CFPB has flexibility in putting this rule together and could, in fact, combine elements of both items above. The industry strongly believes that the CFPB must give a true safe harbor for a wide array of loans in order to ensure maximum availability of affordable credit and competition amongst lenders. While there is litigation risk for both a safe harbor approach and a rebuttable presumption approach, the risk is much greater and more costly on rebuttable presumption. To put it plainly, if you meet the safe harbor, you can get out of court quickly. With a rebuttable presumption, even if you meet the test, one must go through many more costly litigation stages before liability is determined. These additional costs could amount to tens of thousands of dollars. 

We are already in a risk-averse mortgage market. Adding additional litigation risks will most certainly cause credit to tighten further. In the rebuttable presumption case, that risk aversion will be even greater with some lenders attempting to avoid any risk at all by only making loans to wealthier clients, those who can afford high down payments, and those with pristine credit scores. In short, people who need access to mortgage credit the most are the least likely to get it.

Nobody is for giving people risky loans. We have already seen the disappearance of subprime and risky products. Credit policies are already tight. The QM should allow for broad access to safe and affordable mortgages for people across the socio-economic spectrum. One cannot totally eliminate risk and it is foolish to try. The CFPB must be very careful in developing the QM rule lest they wind up protecting consumers not by ensuring they have access to safe mortgages but rather ensuring they have no access to mortgages at all. 

Ken Trepeta is the director of Real Estate Services for the National Association of REALTORS®.

#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate

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Buying a Home: Prepare by Getting your Finances in Order

(ARA) - For those considering buying a home, the current real estate market presents some unique opportunities. One of the side effects of the economic roller coaster ride of the past few years is that home prices have gone down and more homes have gone on the market. For buyers, that means more choices and better deals. However, those same tumultuous years can also teach buyers a lesson: Make smart buying decisions and be wise with your finances. 

Impulsive buying is never a good idea when it comes to a purchase as significant as a home, but it was something of a trend at the height of the mid-2000s. Now, with banks lending far more cautiously, you need to be absolutely certain that your finances are in order - and healthy - to be able to get the best deal on your purchase. 

There are a number of steps you can take to get ready to buy a home, and you might need to work on them simultaneously. Consider that you'll need to start saving, if you haven't already, but you'll also need to review your credit score and do what you can to either maintain it or work toward healthier credit. Both of these tasks will help make the home-buying process better for you. 

Your credit is an important factor in determining the terms under which you can get a mortgage.

Courtesy of Stuart Miles/FreeDigitalPhotos.net

Broadly speaking, the better your credit is, the more positively you'll be viewed by lenders - and that can lead to better interest rates. And because you'll be paying off your home for years to come, it's important to get the best rate possible. 

Start by checking your credit report. You're entitled to one free check of your report, from several credit reporting agencies every year. As much as you need to check your report to find out what shape your credit is in, it's also essential to review it for inaccuracies or fraudulent activity, both of which can have a negative impact on your score. 
If your credit health needs some work, start taking action immediately. Paying bills on time, reducing your overall debt and limiting new credit inquiries can all help to build your credit - but be patient as it can take time for your positive actions to take effect. Nevertheless, the sooner you make the effort, the sooner you'll see results. 

Making a prudent decision about buying a house comes down to an honest assessment of what you can afford. Keep in mind that you might be approved for a loan that's larger than what is practical for you to afford. While it may be tempting to buy a pricier house, the stress of struggling to make payments could diminish your enjoyment of your new home and even put you at financial risk. One rule of thumb is that most borrowers can afford a home loan that runs about two and a half times their annual salary. 

Buying a home is a complex process, but one that is ultimately very rewarding when done right. By organizing your finances well in advance, you'll help set yourself up for success. 

#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate




Source: www.transunion.com.

Home Buying Basics: Why You Need a Home Inspection

Image Courtesy of David Castillo Dominici / FreeDigitalPhotos.net

Whether your home is on the market or you simply want to maintain its condition, enlist the help of a trustworthy home inspector to ensure that your current or potential home is in optimal condition. 

When buying a home, a home inspection determines its structural and mechanical condition. If there are any problems, your inspector will make them known and estimate costs for repair. You can then determine if the cost of dealing with these issues is worth the listed price of the home or if more negotiation is required. 

If you are selling your home, a potential buyer is likely to enlist a home inspector, but you can arrange your own home inspection to prepare. They will help you identify any issues that need fixing, so that you can present your home as structurally and mechanically sound home. 

Even if you're not in the process of buying or selling, home inspection is important to the upkeep of your property. Prevention is more affordable than treatment—and a home inspector will help you identify issues before they become a serious problem. For example, a home inspector could identify a hole in your roof; left untreated, you may need an expensive new roof, but caught by a home inspector, you may only require an inexpensive patching service. 

A home inspector will examine your home for structural and safety issues. They will determine if your foundation has been damaged by renovations or termites, and verify the condition of support beams. They will also check for safety hazards, including rotting steps, loose railings, and faulty locks. 
Your home inspector also knows to look for problems with wiring and electrical boxes, as well as plumbing issues. Water damage can be a deal-breaker in the sale of many homes, and a home inspection can identify potentially costly leaks. 


#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate


Source: AmeriSpec®

Revive Your Bathroom Quickly, Easily and Affordably

(ARA) - Remodeling projects have increased in popularity over the past few years as homeowners have decided to improve on what they have, rather than take a risk in the real estate market. Whether you're hoping to sell your home or create a more enjoyable living space, tackle home improvement projects that make a big impact and add value. 

One of the top return-on-investment remodeling projects is updating a bathroom. Bathroom updates even outweigh kitchen projects in terms of getting back what you spend, according to CNN Money. And, if you take a cost-conscious approach and do the project yourself, your investment return will be even better. Renting tools is a key way you can cut costs and bring new life into your bathroom. 

There are plenty of remodeling tasks that are easily accomplished by renting tools, versus the cost of buying expensive tools or hiring someone else to do the work. Visit www.rentalhq.com to find an American Rental Association member rental store in your area. 

Bring new life to your bath with these tips: 

Courtsey of sixninepixels/FreeDigitalPhotos.net

Replace old tile. Outdated tile is a common problem that makes bathrooms look old. Replacing it with fresh new tile that is in style will instantly give the room a modern look. Tiling is a DIY project that anyone can tackle, with the right tools. Rent the necessary items like a tile stripper, a tile saw and a mortar mixer to keep your project costs down. 

Refresh the ceiling. Ceilings can become dingy over time, and you might not suspect them as the culprit that's making your room feel dull. You'll notice a dramatic change if you liven it up with fresh new texture and paint. Texture sprayers are an unusual tool for most DIY warriors to own, but you can easily rent one to make the job quick and inexpensive. 

Add personality with paint. Another simple fix that can be done is adding a new paint color. It's an easy, quick and cheap project and can totally change the look and feel of the room. Opt for one of your favorite colors or scour interior design websites and magazines to find a trendy color that gets your attention. 

Change hardware. Some faucets and cabinet hardware clearly show their decade of origin. Switching out old hardware is relatively simple and a great way to make a dramatic change in the look of your room. 

These projects set the stage for creating a new feel for your bathroom. Make the revived space a reality by choosing a decorating theme and accessories that complement it. Items like window treatments, throw rugs and wall art make the room feel more complete and stylish. 



#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate


Source: www.rentalhq.com.

Making A Color Statement: Hot New Interior Color Trends

No matter your budget or time constraints, says Hollywood interior designer and set consultant Stephan St. Orang, nothing can change the mood and beauty of your home more significantly than interior paint and lighting.

“This is the year to look for color combinations that take their zing from nature,” St. Orang maintains. “You need only to take a nature walk to find surprising combinations that are vibrant, dynamic and that harmonize with one another in a joyful or pleasing way.”

Break away from the safety of neutral whites, greys and beiges, so popular in the last few years of economic uncertainty, with bold and optimistic color combinations like these, he suggests:

Courtesy of Michelle Meikeljohn/FreeDigitalPhotos.net

• Spring forest ambience – Wake up bedrooms or living rooms with walls of forest moss or leafy green and accent with splashes of yellow, vibrant pink and lavender in pillows and other accessories.
• Sense and sensibility – Begin with an exuberant rush of bold color, such as walls of rich copper-orange to create a sense of warmth. Add calming accents of cool blues and light yellows to create a cheerful and uplifting space.
• Earth and sky – Create a look of stylish, airy elegance in the dining room with walls of blue accented with darker wood trim. Add a soothing pale blue ceiling to soften the formality and accent one wall with a weathered, artistic stencil pattern to add visual interest.
• Spiced life – Add interest and cheer to a rec room or home office with an unexpected pairing of natural pewter on the walls and a pop of persimmon on the ceiling. Or stick with a more neutral ceiling and make creative use of color by painting a wide swath of your favorite hue along one wall to create an interesting backdrop for favorite works of art.

#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate

Source:RISMedia

The Most Expensive DIY Mistakes

Courtesy of renjith krishnan/FreeDigitalPhotos.net

Do-it-yourself home improvement can be a great way to add value to your home without having to pay builders or plumbers to do the work. But even the simplest of DIY jobs can quickly turn into an expensive mess when tackled incorrectly. Here's a look at some of the most costly DIY mistakes to avoid this summer. 

Unrealistic goals: Home improvement can be an addictive hobby and many enthusiasts fall into the trap of running before they can walk. Suddenly a simple blocked drain or drain repair can flood an entire house and leave a DIY amateur struggling to fix the problem. If you suddenly find yourself uncertain of the job you're doing, down tools and look for advice either online or from a professional emergency plumber.

Poor safety: Falling off a ladder, inhaling fumes and slicing open fingers are just a few of the DIY-related injuries that happen every weekend in the UK. Unfortunately these accidents not only hurt your pride, they can also affect your work and therefore your income. Safety goggles and gloves are a must, as well as gaining a proper understanding of the power tools that you are using. You are advised to read the instructions manual that came with the tools for guidance. Opening windows, whilst painting, will help to keep the air free of dangerous fumes, while loose-hanging clothing should be avoided to stop them getting caught up when using power tools. 

Not asking permission: Many homeowners are caught out when they tackle major improvements without first getting permission from the local authority. Fines for unapproved work can be hefty and the permit structure exists to make sure the job is done correctly. Many insurance companies also require proof that an improvement project followed official government guidelines, so ensure you check your rights first. 

Cutting corners: Tight budgets are a reality for many homeowners, but cheap tools and materials are unfortunately a false economy. Using 1/4-inch drywall instead of 5/8-inch, for example, will allow more noise to leak from room to room. Taking a professional approach and investing in the right tools for the job will ensure a good quality finish. 

Courtesy of Ambro/FreeDigitalPhotos.net

Inaccurate measurements: Planning is a vital part of any project and rushing through measurements is a quick way to a DIY headache. All veteran home improvers follow the golden rule of 'Measure twice, cut once.' 








#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate   #DIYMistakes


Source:www.dyno.com

New-Home Design Trends Can up Your Home's Value

Perhaps you’re in the market for a newly built home. Or maybe you’re in the process of having a home built. Or maybe you’re considering a remodeling project to your existing home. No matter what your scenario is, take into consideration the latest home-design trends highlighted by leading architects and builders at the International Builders’ Show held earlier this year in Orlando, Fl.

According to the National Association of Home Builders (NAHB), these home-building trends are not just about style but functionality, and can serve to increase the resale value of your home as they reflect consumer preferences in housing moving forward. Check with a real estate expert to see if and how these trends can affect a home’s value in your particular neighborhood:

Reworked Spaces: New homes are being designed to allow plenty of space for family interaction in high-traffic areas such as the kitchen, and to eliminate rooms such as formal dens and home offices that aren’t frequently used. Small spaces devoted to home management, also known as “pocket offices,” are being included in large pantries or spaces nearby the kitchen or family great room. Window seats and alcoves are being used to provide an area for private time, without taking up a lot of space. A popular and efficient location for laundry facilities is now added onto the master bedroom’s walk-in closet.

Multigenerational Living: Many families are all living under one roof due to increasing cultural diversity and the state of the economy during the past few years. New single-family home designs reflect this with “shadow” units that are built alongside a home, separate living units that access the main floor plan through a door, or by having at least two master suites; one is usually located on the ground floor to be more accessible for elderly occupants.

More Impact, Less Cost: Rectangular home designs are more cost effective, so new homes no longer have the formerly-popular feature of multiple roof lines or the resulting unnecessary interior volumes they created. But home designs now include innovative modifications that are still visually stimulating, such as using two windows in a corner with mitered glass to allow unobstructed views and maximum light to come in. Another example is using a mix of materials in the home’s façade such as metal, wood and stone to give the home a modern look.

#Realtor     #FloridaRealtor     #DaytonaBeachRealEstate    #PortOrangeRealEstate    #OrmondBeachRealEstate    #PonceInletRealEstate    #NewHomePurchase


Source: RISMedia

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