English Real Estate Group Video Blog with Scott English

What Is Our Market Like as We Head Into Fall?

2017-10-02T08:17:00.001-07:00

What was our August market like? As we head into fall, let’s take a look back at the market numbers.

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What’s going on in our current market? As we move into the fall market, let’s take a look back at the August statistics from this year.

In comparison to last year, the average sales price of single-family homes and condos has continued to appreciate at the steady rate of 7%.

Sellers are feeling confident in the market, and buyers are happy too. More and more mortgage programs are enabling buyers to purchase with less down. Also, interest rates have so far remained low.

Sellers are feeling confident in the market, and buyers are happy too.

Inventory has dropped this past year. Given the law of supply and demand, this automatically drives up the sales price.

Currently, we’re seeing a three-month supply for single-family homes. For condos and townhouses, there are about five months of inventory.

Single-family homes that are in good condition and have been priced correctly are spending an average of 35 days on the market, while condos and townhomes are seeing an average of 60 days on market.

For both single-family homes and condos, cash closings are down. We’ve lost a lot of foreign buyers due to the change in the dollar’s value. However, this could be good news to local buyers, who are trying to compete in our low inventory market.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

5 Real Estate Investment Techniques

2017-09-21T09:27:00.001-07:00

Real estate investing is on the rise. Here are five different ways you can get involved.

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Investing in real estate is no longer restricted to the super wealthy. According to a recent survey, real estate investors now make up 15% of the population. That translates to almost 50 million individuals who invest in at least one property other than their primary residence.

In fact, 89% of U.S. investors are interested in putting their money in real estate because of benefits such as cash flow, tax incentives, leverage, and value appreciation that come with investing in multiple properties.

Are you curious about investing in real estate? If so, here are five different ways you can get started:

1. Buy and rent

This is probably the most traditional way to invest in real estate. It simply involves buying a property and renting it out. Now is a good time for this kind of investing because rental rates are on the rise (8% since last year) but the downside of this investing approach is the time and effort needed to manage and maintain your investment.

2. Buy and sell

Also known as home flipping, this involves buying a property and reselling it soon after for a profit. Home flipping has offered a record-breaking 49% return in 2016.

Home flipping offered a record-breaking 49% return in 2016.

3. Real estate investment groups

Real estate investment groups are organizations that buy a set of properties and then sell them to individual investors.The main benefit of this approach is that you typically do not need to act as the landlord because the investment group handles property management for you (for a fee of course).

4. Crowdfunding sites

Recently, there's been an explosion of sites such as Prosper and Lending Club, which allow individuals to invest in various real estate development projects. Through crowdfunding sites, you can be a part of a large-scale property investment while investing only a moderate amount of money. On the other hand, crowdfunding sites act as a middleman and charge fees which can eat into your profits.

5. REITs

Real estate investment trusts (REITs) are like mutual funds for real estate.They typically pay high dividends. However, they also do not offer all of the typical benefits of investing in real estate, such as increased leverage and tax benefits.

Each of these investing approaches offers a tradeoff between possible profits, risks, and costs.

The one constant is that you can minimize your risks with due diligence and by consulting with an experienced real estate professional.

If you have any questions for us or you’re interested in investing in real estate yourself, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

5 Reasons to Buy Over Renting

2017-08-18T09:10:00.000-07:00

There are many benefits to owning a home. Here are just a few.

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For most people, owning a home makes much more sense financially than renting one. These are the top five reasons people choose to buy over renting:

1. You can do whatever you’d like to the property. You can re-paint a room, change your flooring, and even put a new chandelier in. These improvements will help increase your home’s resale value as well.

2. Appreciation benefits. Owning a home is an investment that is easy to understand. You get a daily, tangible benefit of living in a home while also owning an appreciating asset.

3. Tax benefits. Homeowners are allowed to deduct their mortgage insurance and property taxes when they file a return each year. These are significant savings that you can get with a payment that’s similar (or even lower) than your rent would be.

4. Mortgage costs stay flat while rental rates rise. When you lock in a 15- or 30-year mortgage, your payment will remain the same throughout the life of the loan. Rental rates continue to go up every year.

Over time, that equity will turn into profit.

5. Forced savings. When a homeowner makes a mortgage payment, a portion of the payment is paying down the loan each month, giving the homeowner more equity. Over time, that equity will turn into profit when it comes time for you to sell.

If you have any questions about your specific situation, we are always here to answer them. Just give us a call or send us an email. We look forward to hearing from you soon.

What Do Buyers Need to Know About Your Home Before You Sell?

2017-08-02T12:33:00.002-07:00

There are certain things that are beneficial for you to disclose to prospective buyers before you sell your house.

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When selling your home, you’ll have to disclose certain information about that home. Here are the main items that must be disclosed to your prospective buyer:

Water damage or mold. If you’re aware of a leaky or damaged roof or any signs of dampness in the house, you need to let the buyer know.
Lead paint. Federal law requires homeowners to disclose any lead-based paint if you’re selling a home that was built before 1978.
Termite damage. If your home has previously been treated with termite damage, that must be disclosed.
Repairs or insurance claims. If you know any repairs you or the previous owner made, it’s best to reveal that information, even if local regulation doesn’t require you to do so.

Most sellers are aware of the benefit of letting prospective buyers know of the positive features of their home, such as a new roof or new appliances. However, there are also benefits in disclosing defects about the home. Any issue you’ve addressed during the years in your home can provide proof that you’ve kept up with the maintenance. You may want to provide a binder with receipts and insurance claim information to verify work has been done to your home. If there’s an ongoing problem buyers will need to handle, it’s better for them to hear it from you so they can negotiate about when repairs must be made and it’s time to decide who will pay for them.

If you have any other questions about this topic or you’re thinking of buying or selling a home, feel free to reach out to me by phone or email. I look forward to hearing from you.

How to Make an Offer That the Seller Can’t Refuse

2017-07-14T07:55:00.000-07:00

As a homebuyer, how can you create an offer that the seller can’t refuse? I have a few tips for you today.

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As a homebuyer, there are things you can do to create an offer that cannot be refused. If you’re working with an agent, they will help you through this part of the deal.

First of all, be very specific in your offer. Be clear about improvements or repairs that you want the seller to make before closing. You should also be specific about identifying any appliances or other items that you understand to be included with the home. Spell it all out—be painfully clear.

Be as specific as possible when writing your offer.

There are a few terms that you need to know to ensure you create the perfect offer.

For example, there’s the counteroffer. The seller may accept your initial offer—no questions asked. However, it’s more likely that he or she will make a counteroffer. They may accept some of your terms but make changes to others, or raise the purchase price.

This process goes back and forth until either you and the seller agree or the deal falls apart.

Now, your offer will generally have some contingencies. The acceptance of the sales contract can be made contingent on certain circumstances, such as the sale of the buyer’s home. If you are a first-time homebuyer, I recommend adding two contingencies to your offer: that a house passes any inspections you want to perform, and that the home appraises.

When your offer gets accepted, you can do a little happy dance. Then, get working on finishing the deal. Contingencies like home inspections generally come with a time limit attached, so make sure you complete those things on time.

Make your earnest money deposit. This is part of your down payment on the home that you put down after the offer is accepted. Earnest money tells the seller that you want to buy this house and they can safely take it off the market. The money usually goes into an escrow account held by the title company, which is picked by the buyer.

If you have any other questions about creating the perfect offer or buying a home, just give me a call or send me an email. I would be happy to help you!

What Prospective Buyers Look for in Your Home

2017-06-29T11:10:00.003-07:00

How can you make sure that your home sells for top dollar? The first step is to find out what buyers are looking for in their dream homes.

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As a seller, you have a lot more control in pleasing homebuyers than you think. If you start the selling process by learning what buyers really want, you can prepare your home to be as close to their dreams as possible.

First, pay attention to curb appeal. After all, you only get one chance at a first impression. A buyer should be so impressed, charmed, and delighted by the exterior of your home that they want to jump out of the car and see the rest.

Start by sweeping the driveway and walkways clear of debris. Get rid of wilting flowers and broken tree limbs. Plant fresh flowers in the front garden, power-wash the exterior, and clean the windows by hand. Freshen up any paint around the windows. You can even paint the front door a fresh, modern color. Consider replacing the screen door as well.

Make your home look as spacious as possible. One of the main reasons people buy homes is to have more room. If you don’t have a very large home, you can put some things in storage and stage your property. Put away extra clothes, toys, and accessories. The small expense you’ll pay in storage fees will definitely be made up in your buyer’s offer.

Painting your home is an absolute must.

You should also make minor updates throughout your home. Consider the most dated features. Do you need to replace your cabinet fixtures or countertops? Painting your home is an absolute must. Pick an updated neutral, like a warm gray, that will compliment the architecture and the flooring in your home.

Buyers don’t expect your home to be a mansion, but they do expect to see some pride of ownership. The more tweaks, updates, and repairs you perform, the more confident the buyer will be that they are choosing the right home.

If you have any other questions about preparing your home for the market, just give me a call or send me an email. I would be happy to help you!

Why You Won’t See Many Millennials on the Market

2017-06-01T12:20:00.001-07:00

What are some of the biggest hurdles facing millennial buyers in the real estate market? I’ll answer that and give you a glimpse at the millennial homebuyer today.

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If you’re under 35, it’s possible everything you know about owning a home is wrong. Your parents grew up in a time where “living the dream,” or going to college, getting married, buying a home, and having kids was a more accessible goal.

However, the rising cost of college tuition for millennials makes buying a home a riskier investment. Millennials are getting married later, having fewer kids, and failing to see the appeal of owning a home vs. renting.

There are a few cultural and economic trends that affect millennial homebuyers as well. For one, they love mobility. Job loyalty is on the decline, and millennials aren’t afraid to job hop, even it it means moving. They also tend to opt for short-term apartment leases which allow for more freedom to move.

Millennials aren’t afraid to job hop, even if it means moving.

Millennials love cities, but they are more likely to buy in the suburbs because they can’t afford to buy in the city. So, if they don’t want to leave the city, continuing to rent is the option they usually choose.

The biggest hurdle for millennial buyers is getting money for a down payment. However, they have a few different options like getting the down payment as a gift or borrowing the down payment from a lender.

If you’re looking to buy or sell a home, or if you have any general real estate questions, feel free to give me a call or send me an email. I look forward to hearing from you!

Should You Trust Zillow’s Home Valuations?

2017-05-18T12:33:00.000-07:00

Home sellers want to net the most money possible from their home sale. Luckily, there are a few things you can do when pricing your home that will position you to do just that.

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When selling your home, you might be tempted to use Zillow’s home valuation tool. However, to find out what you should really be selling your home for, you need to call a professional Realtor.

Why?

Zillow’s home valuations take only three things into consideration, location, square footage, and prior neighborhood sales. It can’t see any great features or improvements you’ve made to your home, and those things can significantly affect the value such as adding a new kitchen or deck. It also doesn’t take into account any neighborhood irregularities.

Don’t get married to the number a Zestimate gives you.

The best thing to do when figuring out how to price your home is call a Realtor. Unlike Zillow, a Realtor will take all of your home’s features and upgrades into consideration to give you the best advice on what price you should list at.

If you have any other questions or would like to know the value of your home, please feel free to give me a call or send me an email. I’m always happy to help!

What Determines the Cost of Your Homeowners Insurance?

2017-04-11T11:41:00.000-07:00

There are three main factors that impact your homeowners insurance costs.

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There are three factors that have the largest impact on your home insurance:

Your home’s value: Consider the cost of your house as well as the total cost it would take to rebuild it because if it’s damaged or destroyed, you want to be insured for the full cost. Many times, this cost will exceed the price you paid for the home. A reputable builder can give you an estimate of the cost to replace your home. After you get an estimate, you’ll be able to insure your home accordingly.
Location: The town or city comes into play, as well as other factors like the number of nearby fire stations. Insurers often use public protection classifications to measure the fire protection compatibility of your local fire department. Windstorms can also come into play, especially in areas like the Atlantic seaboard and Gulf Coast where insurers will include the cost of hurricane damage into the deductible instead of a traditional deductible. You must also consider crime in the area. If you spend some time learning about the risk associated with your home’s location, you’ll make sure it’s adequately insured.

Your home’s design can actually impact your homeowners insurance.

Condition: The age and condition of the house can affect your homeowners insurance, but you must also recognize that the home’s design can affect your insurance. For example, a home with a custom design may be more expensive to replace than one with a simpler design, making it more expensive to insure. Insurance companies also consider ‘moral hazard,’ or your likelihood of causing damage to your home because of apathy caused by having insurance. Maintaining your home’s condition can make you more attractive to insurers. In Florida, we also have a wind mitigation credit, which is great to have for impact windows or hurricane shutters throughout the house.

If you have any other questions about the factors that impact your homeowners insurance, don’t hesitate to give me a call or send me an email soon. I’d be glad to help!

Tips for Pricing Your Home

2017-03-10T10:33:00.000-08:00

Home sellers want to net the most money possible from their home sale. Luckily, there are a few things you can do when pricing your home that will position you to do just that.

Buying a home? Click here to perform a full home search
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There are a few things you can do to maximize your listing price while minimizing your expenses.

First, price under your typical search limit. For instance, if your home is worth $400,000, price it at $399,999 so that you will capture all of the buyers searching for homes under $400,000. Prices that end with 99 are more attractive to buyers as well.

You also need to create demand. It might seem risky to underprice your home. However, if you think your home is worth $400,000, you list it for $375,000, and you don’t get any offers higher than $375,000, then that means that $375,000 is the true market value of your home. Keep in mind that you can always counter or decline offers that you don’t like.

Ultimately, pricing your home below market value creates a psychological sense of urgency for buyers. Buyers will feel compelled to make an offer before other buyers see the property. By pricing your home slightly below market value, you are more likely to generate multiple offers and escalated prices.

Pricing below market value creates a sense of urgency for potential buyers.

When pricing your home, it’s incredibly important to use comprehensive comparables. Your agent should look at recently sold homes as well as homes that are active on the market. According to Zillow, you should ensure that your home is priced within 10% of the average home price in the area. If there are not many sold comparables, then price your home 10% under any current active or expired listings.

If you have any other questions about how to capitalize on your listing price or about the home selling process in general, give me a call or send me an email. I would be happy to help you!

The Benefits of Homeownership: Part II

2017-03-02T12:47:00.003-08:00

Buying a home comes with a lot of financial benefits. Today, we're discussing a few more of these benefits.

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We're back to discuss the second portion of our series on the many benefits of homeownership.

Click here to read the first portion of our series.

Tax deductions on home equity lines and mortgage interest can allow you to shift your credit card debts to your home equity loan to pay a lower interest rate and also get a tax deduction on the interest.
You get a capital gains exclusion. If you get a home and live in it as your primary residence for more than two years, you'll qualify. When you sell the house, you can keep the profits up to $250,000 if you're single or up to $500,000 if you're married without owing any capital gains taxes. It may sound ridiculous that your house might be worth more when you sell it than when you buy it after these several years of falling housing prices, but if you bought your home prior to 2003, chances are it has appreciated in value. In that case, the tax savings will come in handy.
A mortgage is like a forced savings plan. Each month, you build up more valuable equity in your home and are being forced to save, and that's a good thing. In the long term, buying a home is actually cheaper than renting. In the first few years it may be cheaper to rent, but over time as the interest portion of your mortgage payment decreases, the interest you pay will eventually be lower than the rent you'd pay. More importantly, you won't be throwing away all your money on rent. You have to live somewhere, so instead of paying off your landlord's mortgage, why not pay off your own?

If you're thinking about buying a home or you have any questions I can answer, feel free to give me a call or send me an email. I'd be happy to help you.

What Are the Benefits of Owning a Home?

2017-02-17T09:15:00.001-08:00

Owning a home comes with a lot of financial benefits that many people have become less confident in over the decade of real estate turbulence. We'll review them today.

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Homeownership actually comes with a lot of financial benefits.

Growing up, we learned owning a home is a financially savvy move. Our parents knew it and their parents before them knew it. This past decade of real estate turbulence, however, has shaken everyone's confidence in homeownership. It's important to remember, though, that homeownership is only a savvy financial move if you buy a home you can afford.

When you own a home, you build equity every month. This equity is the amount of money you can sell it for minus the amount you still owe on it, and every month when you make a mortgage payment, it reduces the amount that you owe. This is especially true now with the elimination of risky mortgages like negative amortizations and interest-only loans.

When you own a home, you build equity every month.

Thanks to new mortgage rules, the principal portion of your payment increases slightly each year. It's lowest on your first payment and highest on your last payment. As you make these payments, you also reap mortgage tax deduction benefits in that the tax code allows homeowners to deduct mortgage interest from their tax obligations. This is a huge deduction for many people since the interest component can be the largest component in the early years of owning the home and making mortgage payments.

The first year you buy your home, you can claim points on your loan called 'origination fees' no matter if they're paid by you or the seller. Since origination fees of 1% or more are common, the savings are considerable. In addition, real estate property taxes paid on your primary residence or vacation home are fully deductible for income tax purposes.

There are plenty of other benefits to homeownership that we'll discuss in the near future. In the meantime, if you have any questions or you're thinking of buying or selling a home, give me a call or send me an email. I'd be glad to help!

Ft. Lauderdale and Surrounding Areas Market Update

2017-01-31T08:00:00.000-08:00

Right now is a great time to be on the market to either buy or sell a home in the Ft. Lauderdale market. Allow me to explain why.

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Today I wanted to give you a quick look at some of the most important stats from the Ft. Lauderdale market and what they mean to you.

If you're selling a home, you're in a strong position at this time because we only have three months of inventory, and we have a lot of buyers out there attempting to buy a home while interest rates are low. Since inventory has stayed low in the Ft. Lauderdale area for several months, prices have slowly increased. It's simply a matter of supply and demand.

If you're a seller thinking of upgrading into a new home, January and February are excellent months to be on the market. If you wait for spring, inventory will likely increase, and buyers will have more properties to choose from.

According to expert real estate analysts, interest rates will rise in 2017. At this time, however, we're unsure of the impact this will have. Why? We've had historically low interest rates for years. In my opinion, it won't significantly impact buyers or sellers.

It's a great time to become a homeowner while rates are still near historic lows.

In short, it's a great time for you to list your home as a seller because of low inventory. As for anyone looking to become a homeowner, now is the time to jump off the fence and buy while rates are still near historic lows.

If you have any questions about our market or you're thinking of buying or selling a home, give me a call or send me an email soon. I'd be happy to help!