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5 Myths First Time Homebuyers Believe

Buying your first home is an exciting and nerve wracking process. This is your first time making such a big financial investment. Trying to figure out what you’re supposed to do and how the process works can be daunting. It’s no wonder that a lot of first time buyers have misconceptions about buying a home.

Take a look at this list to bust a few of those myths.

Myth: You Need a 20 Percent Down Payment

The 20 percent down rule isn’t really a rule. FHA loans require 3.5 percent down. Some conventional loans let you pay as low as three or five percent. If you’re active duty or retired military, your VA loan is zero percent down.

Myth: You Need Perfect Credit to Get a Mortgage

While lenders have tightened their credit requirements since the recession, it doesn’t mean your credit has to be perfect. Your interest rate or down payment may be higher but in most cases, buyers with “okay” credit will be able to find a mortgage that works for them. FHA loans even allow borrowers with credit scores as low as 580.

Myth: The Buying Process is Too Complicated

If you decide to buy your home without the help of a Realtor, yes, it will be a very complicated process. Scheduling showings, negotiating a contract, working with home inspectors, title companies, and more – all of these things are hard work. As a buyer, working with a professional real estate agent who understands the market and listens to you will make the buying process much easier.

Myth: If It’s Not Perfect, You Shouldn’t Buy It

You should only buy a home you really want. That being said, there’s rarely such a thing as “perfection.” The best thing to do is come up with a list of must-haves and a list of things that would be nice to have. Hold out for your must haves but expect to compromise on the rest. Maybe the carpet is ugly but the layout is just right. Maybe the walls are hideous but you love the backyard. Look for the potential in each home you view.

Myth: There’s No Inventory

Listen to the national or state real estate news, and you’ll think there’s not a single home on the market. Not true. In Okaloosa County, our inventory is lower than usual but that doesn’t mean you can’t find a home to buy. That being said, homes being put up for sale can and do go quickly. If you know exactly what type of home you’re looking for, you may need to act quickly when it comes on the market.

When you’re ready to make the leap from renting to owning, the most important part of the process is finding the right person to work with. They should be willing to share information, answer your questions, and guide you through the entire process from start to finish.

June 2016: Single Family Home Sales Break Records Across Emerald Coast

June was a good month for single family home sales across the Emerald Coast. Sales were up, prices were up, and records were broken. Condo and townhouse sales didn’t fare so well. Sales were down across the entire Emerald Coast, but pending sales were up which may mean better news for July sales.

 

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 4.1%
  • Total: 688 – record high
• Pending sales increased 6.1%
• Median prices increased 7%
• Inventory decreased 5.1%
• Months supply decreased 10.6% to 5.9 months of inventory
• Total dollar volume: $279.8 million – record high

 

Okaloosa County

• Closed sales – no change
  • 397 sold June 2016 and 2015, both a record high
• Pending sales increased 10.2%
• Median prices increased 10.2%
• Inventory decreased 10.8%
• Months supply decreased 14.3% to 4.8 months of inventory
• Total dollar volume: $109.7 million – record high

 

Walton County

• Closed sales increased 9.5%
  • Total: 253 – record high
• Pending sales increased 15.8%
  • Total: 264 – highest in 12 months
• Median prices increased 11.4%
• Inventory increased 5.1%
• Months supply decreased 2.6% to 7.6 months of inventory
• Total dollar volume: $159.4 million – record high

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales decreased 9.5%
• Pending sales increased 9.9%
• Median prices decreased 9.7%
• Inventory decreased 1.2%
• Months supply increased 2.1% to 10 months of inventory

 

Okaloosa County

• Closed sales decreased 4.9%
• Pending sales increased 4.2%
• Median prices increased 3.6%
• Inventory decreased 13.1%
• Months supply decreased 10.8% to 9.9 months of inventory

 

Walton County

• Closed sales decreased 15.6%
• Pending sales increased 47.8%
• Median prices decreased 1.3%
• Inventory increased 3.3%
• Months supply increased 18.3% to 9.7 months of inventory

 

 

A few things to remember…

 

Total dollar volume is only one indicator of how a market may be doing in comparison to the year before. As sales and prices rise, the dollar volume will go up. If sales fall but prices rise or sales increase but prices fall, you may not notice a big decline in total volume.

 

Single family homes along the Emerald Coast are either in a seller’s market or close to it. Condos and townhomes on the Emerald Coast has a much higher inventory which gives buyers more options and can, if demand and inventory aren’t a match, slow down sales. A healthy real estate market – where neither the buyer nor seller have an advantage – is between six and eight months.

 

Pending sales are an indication of the immediate future of the real estate market – typically the next month’s sales. These numbers are not a guarantee of future sales as not all pending sales make it to the closing table, and those that do may take more than 30 days to complete.

 

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2012 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

 

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

Buying and Selling Condos is About to Get a Little Easier

On Tuesday, July 14, the U.S. Senate unanimously passed H.R. 3700 – the Housing Opportunity Modernization Act. The House of Representatives unanimously voted in favor of the bill in February. Now, it heads to the President’s desk for his signature.

 

What does this mean for home buyers and sellers? Owning a condo is about to get a little easier.

 

H.R. 3700 contained several key proposals for condo owners.

 

FHA Recertification Will Be Easier

 

Ever found a great condo in your price range right where you want to live but FHA financing wasn’t allowed? It happens more often than you realize and part of the problem has been how difficult certification – and recertification – for FHA has been for condominiums. H.R. 3700 makes this process easier which will mean that more great condos for sale should, eventually, be eligible for FHA loans.

 

Condo Owner-Occupancy Rates Are Lower

 

Living on the Emerald Coast like we do, we’re no stranger to vacationers buying second homes on the beach, especially condos. FHA has had a restriction that condos must have 50 perfect owner-occupancy rates to qualify for financing. Plenty of second home owners rent out their unit throughout the year until they’re ready to use it. This lowered the percentage of how many owners actually lived in a building or on a property. Now, the owner-occupancy rate will be lowered to 35 percent, making more locations eligible for FHA financing.

 

Eases Restrictive Transfer Fee Policy

 

The FHA has had a policy for a long time that says it won’t allow FHA mortgage insurance on any property with a transfer fee covenant. Unfortunately, this has left plenty of condos out of range for buyers with a FHA loan. The new law tasks the FHA with creating a new policy that will ease these restrictions and follow the current guidelines in place from the Federal Housing Finance Agency. Ultimately, more condos available for sale will be eligible for FHA financing with this change in policy.

 

What does all of this mean to you? Buyers who qualify for a FHA loan will have many more options while condo owners will have more potential buyers. This is good business for condo associations who may have been suffering from too many vacancies, too.

 

Prior to the passage of H.R. 3700, more than 140,000 Realtors from across the country contacted our Senators to urge them to pass this act. Thankfully, they listened.

4 Things that Frustrate Home Buyers and Sellers

When we talk about buying or selling homes, we tend to focus on one thing: the house. Is it in the right condition? Is it the right price? What color are the walls? Do you like the flower beds?

 

There’s another part of the process that plays a big part. It can even affect whether an offer is made or accepted: the people.

 

Think about the last person who frustrated or upset you. Maybe it was at a traffic light or in a slow line at the drive thru. Multiply that by 10. That’s the level of frustration that can happen in the middle of buying or selling your home. Understanding some of the things that cause aggravation and frustration, we can avoid these things and relieve a little bit of the stress for everyone.

 

Buyer Frustration: Sellers at the Showing

 

It’s extremely difficult to walk around a home and feel comfortable checking out all the details or asking questions when the owner is in the background. No matter how out-of-the-way you are, many buyers are uncomfortable with a seller in the home while they look. Many times, they won’t spend a lot of time looking and will leave early. Less time looking means you have a lower chance of receiving an offer.

 

Seller Frustration: Buyers Who Leave a Mess

 

Most buyers are very courteous and don’t leave behind signs of their presence after a showing, but not everyone. Lights, water, and even the oven has been left on after buyers viewed a home. Every Realtor has the story about a used bathroom that wasn’t flushed (if you’re thinking “Yuck,” you’re right). Even if you make an offer on that home, sellers may be less likely to negotiate because they’re unhappy with how their home was treated. Make sure you always leave a home the way you find it.

 

Buyer Frustration: Lack of Flexible Scheduling

 

Most buyers understand they need to make an appointment to view a home or that their Realtor needs to make a quick call before coming by. When sellers only allow showings at very specific times on very specific days, it can cause a scheduling nightmare for a potential buyer. When they have several homes to choose from, they may bypass the property because it’s so difficult to view.

 

Seller Frustration: Buyers Who Don’t Call to Cancel

 

Sellers who keep their home available most of the time and vacate during a showing are doing the right thing. When a buyer is unable to view a home, calling to cancel and let the sellers know is basic courtesy. Some sellers have to find a place for their dog or work around their own busy schedule. If you can’t make it, a seller will understand, and they’ll be less frustrated if they’re notified as soon as possible.

 

Buying and selling a home is stressful for everyone involved. If we keep in mind that everyone wants this to be successful and that buyers and sellers are both doing their best, maybe we can eliminate some of the frustration that everyone feels. Common courtesy and basic manners will go a long way in keeping everyone calm until you get to the closing table.

 

 

8 Things You Didn’t Know About Independence Day

You already know that the Fourth of July a.k.a. Independence Day is the day we celebrate our independence as a nation. Depending on how long it’s been since you’ve taken a history class, you might even remember that Thomas Jefferson wrote the Declaration of Independence. Unlike our other patriotic holidays, July 4th really is a day to celebrate which explains all the fireworks and food we eat.

 

But how much do you really know about Independence Day?

 

1. The Revolutionary War began in 1775. At that time, people who wanted independence from England were considered radicals. It wasn’t until 1776 that popular opinion changed.
2. Our (official) search for independence began in June 1776 when the Continental Congress passed a motion to consider independence and formed a five-person committee to draft the language.
3. Three of the people on the committee were Thomas Jefferson, Benjamin Franklin, and John Adams.
4. Technically, the United States declared independence on July 2 when the Continental Congress approved the idea of independence. The delegates did not vote to approve the Declaration of Independence until July 4 which became the day we celebrate.
5. Independence Day has been an official federal holiday since 1870. It didn’t become a paid holiday until 1941.
6. George Washington celebrated in 1778 by doubling his soldier’s rations of rum for the day.
7. One of our inalienable rights is the “pursuit of happiness.” Did you know it was almost the “pursuit of property?”
8. John Adams and Thomas Jefferson both died on July 4, 1826 – 50 years after independence was declared.

 

There you have it! A few things you might not have known about the Fourth of July. If you’re looking for places to watch the fireworks and celebrate our country’s independence, click here.

 

Happy Fourth of July!

May 2016: Okaloosa Real Estate Market Hot in May

Across the Emerald Coast, single family home sales and townhome and condo sales were strong in May when compared to the year before. Okaloosa County was on fire while Walton County struggled a bit in the townhome and condo market.

 

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 11.4%
• Pending sales decreased 3.9%
• Median prices increased 14.4%
• Inventory decreased 4.7%
• Months supply decreased 10.4% to 6 months of inventory

 

Okaloosa County

• Closed sales increased 5.2%
• Pending sales increased 9.2%
• Median prices increased 8.5%
• Inventory decreased 8.2%
• Months supply decreased 14.3% to 4.8 months of inventory

 

Walton County

• Closed sales increased 9.9%
• Pending sales decreased 5.6%
• Median prices decreased 6.2%
• Inventory increased 3.2%
• Months supply decreased 4.9% to 7.7 months of inventory

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales increased 3%
• Pending sales increased 17.5%
• Median prices decreased 0.9%
• Inventory decreased 3.4%
• Months supply decreased 3% to 9.8 months of inventory

 

Okaloosa County

• Closed sales increased 30.6%
• Pending sales increased 39.3%
• Median prices increased 16.2%
• Inventory decreased 12.7%
• Months supply decreased 12.4% to 9.9 months of inventory

 

Walton County

• Closed sales decreased 17.1%
• Pending sales increased 3.4%
• Median prices decreased 7.2%
• Inventory decreased 2.7%
• Months supply increased 4.5% to 9.3 months of inventory

 

 

A few things to remember…

 

 

Single family homes along the Emerald Coast are either in a seller’s market or close to it. A healthy real estate market – where neither the buyer nor seller have an advantage – is between six and eight months. Below six months means that inventory is scarce and can drive up prices. Above 8 months means there is too much inventory which can drive prices down.

 

Pending sales are an indication of the immediate future of the real estate market – typically the next month’s sales. These numbers are not a guarantee of future sales as not all pending sales make it to the closing table, and those that do may take more than 30 days to complete.

 

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2011 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

 

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.