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What Should You Do With Your Home When You Get a Divorce?

In a perfect world, puppies would stay cute forever, the temperature would always be perfect, and marriages would never end in divorce. Unfortunately, we don’t live in a perfect world, and cute puppies grow up to be giant babies, the temperature breaks new records every summer, and people get divorced.

 

After the question about custody, alimony, and child support is handled – none of which are fun for anyone – you have one other big decision to make. What should you do with your home?

 

Sell, Sell, Sell

 

Assuming you’re not underwater on your mortgage and your home is in good shape, the quickest and easiest answer is often to sell your home and split any proceeds. The amount you get may be enough to help you find a new home or pay for your legal fees. Depending on your custody arrangement and your finances, you may want to consider a smaller home that works with your new (and smaller) household budget.

 

Buying the Other Out

 

This may have been your dream home, one you built from the ground up or spent months looking for. The idea of selling is unbearable. If you simply cannot bear to part of your home, your other option is to buy out your ex. The easiest way would be to refinance the loan into your name and pay your ex an agreed upon amount. Refinancing is also a good way to possibly lower your interest rate and walk away with a slightly lower mortgage.

 

Determining how much you should pay to keep the house is the tricky part. You’ll want to work with your attorney, an appraiser, and if you’re refinancing, your lender to determine the value of the home and what you should offer as a buy out amount.

 

Another, although very rare, option may be to assume the loan – instead of going through with a refinance. Loan assumptions are extremely rare, but it’s always worth asking your mortgage company if it’s an available option.

 

Taking Over the Mortgage without a Buyout

 

Maybe a refinance or loan assumption isn’t an option. If one of you stays in the home and agrees to pay the mortgage, promising a later buyout, you may be able to make it work. A word to the wise, though. As long as both names are still on the mortgage, both of you are liable for the debt. If payments are missed, it’s going to affect both your credit reports.

 

If you allow your spouse to stay in the house without removing your name from the mortgage, make sure the divorce settlement and decree clearly spell out the arrangement including your former spouse’s agreement to pay the mortgage. This will come in handy if you decide to buy a home later and apply for a mortgage. The mortgage from your former house will still be on your credit, and you’ll need to be able to show them the arrangement.

 

No one wants to imagine that any marriage will end in divorce, but it’s an unfortunate part of life. If you find yourself in the middle of a divorce, make sure you know what your options are. Whatever you do, talk to your divorce attorney and your lender to make sure you have all the information to make the best decision.

Our Hearts are in Orlando

After the tragic mass shooting in Orlando early in the hours on Sunday, June 12, it’s easy to ask questions about why this happened and who’s to blame. For a moment, let’s put politics aside and pray for everyone affected down in Orlando. What happened was tragic and horrifying. A lot of us see something like this, especially so close to home and wish we could help but feel powerless.

 

There’s plenty you can do to help show your support for Orlando even here on the Emerald Coast.

 

Offer Support

 

Whether it’s to your friends and family in the local LGBTQ community or someone you know who lives in Orlando, give them a call. Let them talk about how they feel, and let them know you care and you’re here for them. Sometimes a small gesture is enough.

 

Donate Blood

 

A huge outpouring of support in the entire Central Florida area has filled local blood banks to capacity, at least for now. Blood is always needed, even here in our own backyard. Donating blood will help someone else in their time of need, and you’ll be a part of helping someone recover from their own accident or tragedy.

 

Support the Victims

 

A GoFundMe campaign has been created by Equality Florida to raise money for the victims of the Orlando shooting. If you want to make a direct impact on the life of a survivor, consider making even a small donation. Every little bit helps.

 

From the panhandle to Orlando, our hearts go out to all those affected. We are with you, Orlando. We are all #OrlandoStrong.

Remodeling? 5 Must-Do Steps when Hiring a Contractor

When remodeling, homeowners see significant returns on their investment—in fact, most feel positive about a remodeling project whether selling or staying put. But that feel-good experience can easily be marred by a negative encounter with a contractor. Hire smart and your home will be in good hands, says Angie Hicks, founder of Angie’s List (www.angieslist.com).

Hicks’ recommendations for hiring contractors include the following tips.

1. Research 5-10 potential companies to determine local reputation, as well as how well their work stands the test of time, plus if they specialize in the work you want done.

2. Obtain at least three written estimates to compare costs and timelines.

3. Verify applicable trade license, bonding and insurance status.

4. Insist on a payment schedule tied to project progress and keep at least 10 percent back until the job is complete to your satisfaction.

5. Include the payment schedule in your written contract and a termination clause that allows you to walk away easily if terms aren’t met.

Source: Angie’s List

 

TS Colin Reminds Us that Hurricane Season is Really Here

With Tropical Storm Colin cutting across Florida this week – the third named storm of the year, we have a clear reminder that hurricane season is very real and potentially very dangerous. June has barely begun but this hurricane season may be our most active in a while. Take a look at a few reminders and things to keep in mind if we’re affected by a major storm this year.

Hire Licensed Contractors for Repairs

When the wind and rain damage your home, causing leaks and other problems, it may seem like a smart decision to hire the inexpensive handyman with no license. What will you do if they do an awful job and cost you more money later? Hiring a licensed contractor means you have some recourse if the job doesn’t get finished or if they cause more of a problem then they fix. To check licenses, go to www.myfloridalicense.com or download the app from the Google Play or iTunes app store. This way you can always verify the license of anyone doing work on your home.

Make Changes to Your Insurance Before the Storm Forms

Once a storm is “in the box” – a specific distance from our coastline, for us that usually means in the Gulf of Mexico – insurers will not issue new policies or make changes to existing ones. It’s always best to make changes when the weather is still clear. After a storm is named and we’re watching it, you’ll have to wait until after it passes to make any changes to your homeowner’s insurance policy.

Stock Up on Supplies Early

Waiting until Jim Cantore is on Okaloosa Island isn’t the best time to buy bread, batteries, or water. You’ll be in the store with everyone else who waited until the last minute, and you may miss out. If you’ve lived in Florida for a while, it’s easy to become relaxed about hurricane season and the threat posed by storms. There’s nothing wrong with keeping yourself prepared, even if you don’t need your supplies this season. It’s much better than being caught off guard and dealing with traffic, big crowds, and bad weather to buy the last jug of water.

Even if all we see is a bit of rain and a few less days at the beach, a named storm so early in June is a good reminder that hurricane season is here, and anything can happen. Staying informed and being prepared will help ease some of the stress of the season.

Let’s Remember What Memorial Day is All About

Before you head out to Crab Island for the weekend…

Before you fire up the grill…

Before you head out to see fireworks, enjoy the sun, and soak in the unofficial start of the summer season on the Emerald Coast, let’s remember what the holiday is all about.

Memorial Day is the day we honor those military members who sacrificed everything in order to keep us and our country safe and free. Although it began as a Civil War remembrance, it now encompasses every conflict and all soldiers who gave their life for us.

When you see a veteran or active duty service member, tell them, “Thank you.”

If you overhear a military spouse talking about the recent deployment or the next move, say, “Thank you.”

In between flipping the burgers and getting the sand out of your flip flops, take a moment of silence and simply whisper, “Thank you.”

Memorial Day is more than just a long weekend and extra time in the sun and water. It’s a day we honor the fallen, remember their sacrifice, and thank them and their families for doing the hardest job of all – defending freedom.

This Memorial Day, let’s remember what the day is all about.

Here at Rising Star Real Estate, we want to thank all our military members, both active duty and veteran, and their families for the sacrifices they make, the burden they carry, and the sorrow they feel when the ultimate price is paid. We honor you and the fallen this Memorial Day.

April 2016: Median Prices Rise on Emerald Coast

With one exception, median prices rose across most of the Emerald Coast last month. Single family homes continue to sell well while townhomes and condos continue to struggle. All data is a comparison of April 2016 to April 2015.

 

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 5.5%
• Pending sales decreased 0.4%
• Median prices increased 10.9%
• Inventory decreased 6.7%
• Months supply decreased 13.2% to 5.9 months of inventory

 

Okaloosa County

• Closed sales increased 3.9%
• Pending sales increased 1.5%
• Median prices increased 6.2%
• Inventory decreased 6.8%
• Months supply decreased 14.3% to 4.8 months of inventory

 

Walton County

• Closed sales increased 22.9%
• Pending sales decreased 4.2%
• Median prices increased 8,8%
• Inventory decreased 1.6%
• Months supply decreased 9.5% to 7.6 months of inventory

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales decreased 26.3%
• Pending sales decreased 4.3%
• Median prices increased 7.4%
• Inventory decreased 0.3%
• Months supply remained flat with 9.8 months of inventory

 

Okaloosa County

• Closed sales decreased 24.7%
• Pending sales decreased 3.6%
• Median prices increased 25%
• Inventory decreased 12%
• Months supply decreased 8.34% to 10 months of inventory

 

Walton County

• Closed sales decreased 27.6%
• Pending sales increased 8.1%
• Median prices decreased 5.2%
• Inventory increased 1.1%
• Months supply increased 5.7% to 9.2 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 continue to falter making an increase in sales for the following month more difficult. If enough new inventory can come onto the market, it’s possible, this trend may reverse itself over the next couple of months, especially as we get closer to our spring and summer selling season.

 

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.