Archives for July 2014

Be Up Front about Your Home

When selling your home, it is important to be upfront and honest with potential buyers. Doing so can prevent any potential lawsuits or unexpected price negotiations. You don’t have to disclose all information, but when it comes to major problems with your home, it’s the honorable thing to do.
In many states, there are also laws that require a seller to fill out a form disclosing material facts—such as a home condition, legal status or the age of certain components—prior to selling.

So when it comes to disclosing facts about your home, what exactly counts as “pertinent information?” The types of problems or information that qualify as material can range from tax details to damage from mold, mildew or insects; issues with a septic system, a buried oil tank; a leak in the roof or foundation; or information about property boundaries. A seller should also disclose the age of important features that will need maintenance, such as the roof.

While your agent may not be responsible for disclosing material facts about your property to potential buyers, they can be held accountable if they had knowledge of a problem that they failed to make known or tried to hide. Agents are not expected to take on the role of a home inspector. However, an agent should use their best judgment and bring up anything that seems suspicious with both the seller and buyer.

The seller is not obligated to tell a buyer why they are putting their home up for sale. However, failure to disclose a large issue may complicate or delay the sale, frustrating all parties involved.
If there is a problem with your property, it is a good idea to either get it fixed prior to sale or lower your asking price to cover any necessary renovations.

Emerald Coast Single Family Home Sales in June

Emerald Coast Single Family Home Sales in June

Image via Flickr from Mark Moose

This week, let’s look at single family home sales along the Emerald Coast and in Okaloosa and Walton counties. Whether you’re a buyer or a seller, there’s good news to be found in this month’s information. All of the following sales information is for June 2014 and is compared to the same time last year.

Emerald Coast

• Closed sales increased 14.9%
• Pending sales increased 25%
• New listings increased 24%
• Inventory increased 25.6%
• Median prices decreased 3.1%

Okaloosa County

• Closed sales increased 20.4%
• Pending sales increased 25.6%
• New listings increased 37%
• Inventory increased 29.3%
• Median prices decreased 3.8%

Walton County

• Closed sales increased 10%
• Pending sales increased 36.7%
• New listings increased 25.2%
• Inventory increased 27.7%
• Median prices decreased 3.3%

A few things to keep in mind…

The numbers for the Emerald Coast include both Okaloosa and Walton counties, as well as sales from outside those areas as input by participants in the ECAR MLS.

Because new listings increased, inventory went up as well. The two numbers aren’t the same because of the existing inventory already in place. A rise in inventory and listings can be an indicator of seller confidence.

Pending sales aren’t an exact indicator of the closed sales for the following month, in this case, July. Not all pending sales make it to the closing table. Some sales take more than 30 days to close, especially short sales.

Median price means that half of the homes sold for more and half sold for less. With an increase in supply, buyers have more to choose from and prices can fall because of that. The three percent decrease is no cause for alarm at this point.

Next week, we’ll look at the townhouse and condo sales for June.

Real estate sales statistics for the Emerald Coast and Okaloosa and Walton counties are available from the Emerald Coast Association of Realtors® (ECAR). All statistics are compiled from the ECAR Multiple Listing Service (MLS) by the Florida Realtors®.

5 reasons to buy a house in the next 5 months!

A combination of market factors may make you think you’re getting priced out of the home market. But one observer believes first-time homebuyers might want to consider making a move.

“I know it’s hard to face rising interest rates and rising home prices at the same time,” says Ilyce Glink, real estate expert and managing editor of the Equifax finance blog. “The good news is there’s still plenty of runway if you want to buy a house this year.”

Glink believes first-time homebuyers should consider these five good reasons to buy a house before the end of the year:

1. Home prices are still off their highs – Yes, home prices are rising from the lows seen during the housing crash of 2008, but they’re still nearly 20% off their mid-2006 peak. According to the S&P/Case-Shiller Home Price Index, average U.S. home prices are currently at summer 2004 levels. In markets that are still recovering, first-time homebuyers could see significant appreciation over the next few years, if they buy now.
2. Interest rates are expected to keep rising – Interest rates are slowly climbing, and as the Federal Reserve concludes its economic stimulus plan, rates are expected to continue to rise. Some experts believe mortgage interest rates could hit 5% by the end of 2014 or the first quarter of 2015, according to Glink. And even a small bump in interest rates can mean a significant jump in your monthly note.  “If you’re offered a 4.2% interest rate on a $400,000 mortgage, for example, your monthly payment will be $1,961, and you’ll pay more than $300,000 in interest over the loan’s 30-year term,” Glink says. “If your interest rate were 4.9%, your monthly payment would jump to $2,115, and the total interest paid over the life of the loan would exceed $360,000.”
3. Rental rates are rising – There is always an argument to be made regarding whether to buy or rent. It’s all a matter of your particular situation – as well as the status of your local housing market. If you need to be mobile — prepared for job transfers or out-of-state promotions — or are continuing to search for “the perfect place,” renting is probably right for you.  However, if you would like to put down some roots, and rents are high in your hometown – it might be cheaper to buy.  “Divide the list price of the home you’re interested in by the annual rental rate of a comparable property to determine the price-rent ratio,” Glink advises. “If it’s below 20, chances are it’s a good time to buy.”  Of course, buying a home means more than a mortgage. Remember to consider the other built-in expenses: maintenance, insurance, taxes and utilities.
4. Consider your buying power – Americans have been steadily reducing their debt load. Maybe you have, too. The lower your debt, the higher your buying power. Creditors will consider your debt-to-income ratio – how much debt you have, compared to your gross (before-tax) income.  “Experts generally agree that you can spend between 28% and 36% of your gross income in total debt service — that’s your housing expenses plus your other debt payments,” says Glink.
5. With lower debt comes a higher score – As you pay off student loans, credit cards and consumer debt, your credit score will improve. And that’s one of the biggest factors mortgage lenders consider when determining the interest rate and terms of your loan.  “You should definitely consider buying this year, because it’s unlikely the housing market will look much rosier next year, when interest rates and home prices could be even higher,” Glink says

7 Smart Strategies for Kitchen Remodeling

Follow these seven strategies to get the most financial gain on your kitchen remodel.

Homeowners spend more money on kitchen remodeling than on any other home improvement project. And with good reason: Kitchens are the hub of home life and a source of pride.

A significant portion of kitchen remodeling costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 to $60,000 range recoup about 74% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report.

A minor kitchen remodel of about $19,000 does even better, returning more than 82% of your investment.

To maximize your return on investment, follow these seven strategies to keep you on budget and help you make smart choices.

1. Plan, Plan, Plan

Planning your kitchen remodel should take more time than the actual construction. If you plan well, the amount of time you’re inconvenienced by construction mayhem will be minimized. Plus, you’re more likely to stay on budget.  How much time should you spend planning? The National Kitchen and Bath Association recommends at least six months. That way, you won’t be tempted to change your mind during construction and create change orders, which will inflate construction costs and hurt your return on investment.

Some tips on planning:

• Study your existing kitchen: How wide is the doorway into your kitchen? It’s a common mistake many homeowners make: Buying the extra-large fridge only to find they can’t get it in the doorway. To avoid mistakes like this, create a drawing of your kitchen with measurements for doorways, walkways, counters, etc. And don’t forget height, too.
• Think about traffic patterns: Work aisles should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
• Design with ergonomics in mind: Drawers or pull-out shelves in base cabinets; counter heights that can adjust up or down; a wall oven instead of a range: These are all features that make a kitchen accessible to everyone — and a pleasure to work in.
• Related: Test Your Ergonomic Design Knowledge
• Plan for the unforeseeable: Even if you’ve planned down to the number of nails you’ll need in your remodel, expect the unexpected. Build in a little leeway for completing the remodel. Want it done by Thanksgiving? Then plan to be done before Halloween.
• Choose all your fixtures and materials before starting: Contractors will be able to make more accurate bids, and you’ll lessen the risk of delays because of back orders.
• Don’t be afraid to seek help: A professional designer can simplify your kitchen remodel. Pros help make style decisions, foresee potential problems, and schedule contractors. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the Same Footprint

Nothing will drive up the cost of a remodel faster than changing the location of plumbing pipes and electrical outlets, and knocking down walls. This is usually where unforeseen problems occur.  So if possible, keep appliances, water fixtures, and walls in the same location. 

Not only will you save on demolition and reconstruction costs, you’ll cut the amount of dust and debris your project generates.

3. Get Real About Appliances

It’s easy to get carried away when planning your new kitchen. A six-burner commercial-grade range and luxury-brand refrigerator may make eye-catching centerpieces, but they may not fit your cooking needs or lifestyle.  Appliances are essentially tools used to cook and store food. Your kitchen remodel shouldn’t be about the tools, but the design and functionality of the entire kitchen.  So unless you’re an exceptional cook who cooks a lot, concentrate your dollars on long-term features that add value, such as cabinets and flooring.   Then choose appliances made by trusted brands that have high marks in online reviews and Consumer Reports.

4. Don’t Underestimate the Power of Lighting

Lighting can make a world of difference in a kitchen. It can make it look larger and brighter. And it will help you work safely and efficiently. You should have two different types of lighting in your kitchen:

• Task Lighting: Under-cabinet lighting should be on your must-do list, since cabinets create such dark work areas. And since you’re remodeling, there won’t be a better time to hard-wire your lights. (Here’s more about under-cabinet lights.) Plan for at least two fixtures per task area to eliminate shadows. Pendant lights are good for islands and other counters without low cabinets. Recessed lights and track lights work well over sinks and general prep areas with no cabinets overhead.
• Ambient lighting: Flush-mounted ceiling fixtures, wall sconces, and track lights create overall lighting in your kitchen. Include dimmer switches to control intensity and mood.

5. Be Quality-Conscious

Functionality and durability should be top priorities during kitchen remodeling. Resist low-quality bargains, and choose products that combine low maintenance with long warranty periods. Solid-surface countertops, for instance, may cost a little more, but with the proper care, they’ll look great for a long time.  If you’re planning on moving soon, products with substantial warranties are a selling advantage.

6. Add Storage, Not Space

Storage will never go out of style, but if you’re sticking with the same footprint, here are a couple of ideas to add more:

• Install cabinets that reach the ceiling: They may cost more — and you might need a stepladder — but you’ll gain valuable storage space for Christmas platters and other once-a-year items. In addition, you won’t have to dust cabinet tops.
• Hang it up: Mount small shelving units on unused wall areas and inside cabinet doors; hang stock pots and large skillets on a ceiling-mounted rack; and add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate Clearly With Your Remodelers

Establishing a good rapport with your project manager or construction team is essential for staying on budget. To keep the sweetness in your project:

• Drop by the project during work hours: Your presence broadcasts your commitment to quality.
• Establish a communication routine: Hang a message board on site where you and the project manager can leave daily communiqués. Give your email address and cell phone number to subs and team leaders.
• Set house rules: Be clear about smoking, boom box noise levels, available bathrooms, and appropriate parking.
• Be kind: Offer refreshments (a little hospitality can go a long way), give praise when warranted, and resist pestering them with conversation, jokes, and questions when they are working. They’ll work better when refreshed and allowed to concentrate on work.

 

Our Secret is Out – The Emerald Coast is Getting Noticed!

The world is beginning to take notice of the Emerald Coast as a great place to live and visit. In the past year or so, several towns in both Okaloosa and Walton counties have been named as the best town, best beach, and even safest town. The recognition is long overdue and coming from a variety of national outlets. The best kept secret in Florida may no longer be much of a secret.

Destin receives a lot of attention because of the great fishing, beautiful waters, and family-friendly environment. U.S. News and World Report named Destin the top beach in Florida. The World’s Luckiest Fishing Village was also named one of the top 20 small towns in Florida by Cities Journal.

Niceville and Valparaiso were named two of the safest cities in Florida by Movoto. Yes, Niceville is quite nice, as is Valparaiso (known as Val-p by the locals) which happens to be Niceville’s neighbor. And, as the locals say, “Go Niceville!”

Walton County is receiving it’s share of recognition as well.

Huffington Post named Seaside one of the best beach towns in Florida. A beautiful location off of Highway 30A, Seaside is one place locals and tourists alike should visit.

Cities Journal also named Defuniak Springs one of the top 20 small towns, noting it’s rich history as well as the ornate Victorian architecture that you just can’t miss.

If you’ve lived here for even a short while, you know that the Emerald Coast is a hidden gem in Florida. The area is often overlooked for the tourist hot-spots like Orlando and Miami. We know what we have here – the prettiest white sand, the most beautiful water, and the small town lifestyle that’s great for raising families, vacationing, and retirement. It seems the world might be figuring it out, too.

Image via Flickr from Robert S. Donovan

Read This Before Painting…

If you’re painting a room, or your entire house, use this handy checklist to avoid common mistakes and make it look amazing:

• Buy sample sizes to try out the color before you buy a gallon. To determine how much paint to buy, use the paint calculator at www.truevaluepaint.com/project-center/paint-calculator/.
• Prevent paint bubbles. Always start with a clean, dry surface. Apply a primer-sealer over any stains and allow time to dry. If you have to paint when it’s hot or humid, run an exhaust fan.
• Blend your paints. If you’re using more than one can or paint, mix them in one large container so there are no color variations. Then pour into a smaller can or paint tray for application.
• Start “cutting in” first. That means painting the trim, corners, and ceiling edges with a brush. Outline these areas with painter’s tape to ensure straight lines before you begin.  Then use a roller to paint the remaining walls.