Port Saint Lucie Community Information Blog

You think Interest Rates are Scary?

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Fri, 28 Oct 2022 22:36:00 +0000

What is PMI or MIP mean in Real Estate? Piece of the Real Estate Puzzle

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Mon, 31 Jan 2022 16:41:00 +0000

Homestead Portability How does it work St Lucie County Florida

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Wed, 24 Apr 2019 18:09:00 +0000

Ok to continue with the Property Tax theme from a couple of weeks ago.
Another question I get from time to time is how the Homestead portability works? Again this is a very complicated topic and I would have you get any info on your personal situation directly from the Property Appraiser's office www.paslc.org but here is my shot at trying to simplify it as much as I can for understandability.

First, if you didn't already know, if you had a homestead exemption on your prior property you can (and should) port the exemption to the new property. The reason why this is important instead of just applying for a new $50,000 exemption is because in Florida, the assessed value that can be taxed is only allowed to increase by a max of 3% a year.

I will use my own recent personal property buying/selling experience as an example (I am going to round numbers for ease).
We purchased our prior home at the bottom of the market for $75k in 2010. We sold our home in 2017 for $275k. Now the property appraiser's value is almost never the same as market value and usually much lower (I think most would all agree this is a good thing!). At the time of sale (2017) our home was valued by the property appraiser at $165k but since it had been being capped at no more than 3% increase for the past 7 years it was only assessed at $105k -$50,000 exemption= taxed at $55k. This made our Portable value $60k (165k-60kcap=105k). Now we purchased our new home for only $15k more at $290k. It had been purchased by the prior owners at the top of the market (2005) at $348k the appraised value does not fall as fast as it rises so when we purchased it the property appraiser had it valued at $245k we got to port the $60k exemption so our assessed value is now $245k-$60kportable cap=$185k-$50k homestead exemption= taxed on $135k.

I was very surprised when I got that new tax bill because we had only paid $15k more for the home than we had sold our prior for, why did my taxable value go up $80K? I called and was told that I was lucky I had the portability because I would have been taxed on $195k if not for that additional $60k ported exemption! (didn't feel so lucky).

So the moral of this story is that yes, you can port your cap, and it is a very useful and important discount. But be aware of the assessed value of the home you are purchasing compared to the assessed value of the home you sold even if they are almost the same price. You also should note that you have 2 years to use the portability. You can rent for a year in between but you must use it by the 2nd year or it goes away.

I love to help buyers and sellers navigate the Real Estate world you can call me anytime to pick my brain (No Charge! ).
Dawn Burlace, PA, Realtor®
Atlantic Shores Realty Expertise
Serving the Treasure Coast of Florida
(Indian River, St Lucie, Martin and Northern Palm Beach Counties)
772-444-6696
www.MoveToStLucie.com

Here is the explanation on the Property Appraiser's website. A good resource but very vague when it comes to real life numbers.

Portability in Florida refers to the ability of a property owner to transfer some or all of the Save Our Homes benefit on a previous homestead to a newly established homestead. The law was passed as a constitutional amendment in January 2008. The Save Our Homes benefit is the difference between the market (or just) value and assessed value. State law allows you to transfer your Save Our Homes benefit to a new home if you claimed the Homestead Exemption in either of the two preceding tax years. Important points to consider when filing for Portability:

To transfer your assessment difference you must have received a homestead exemption on the previous Florida homestead property in either of the two preceding tax years and must be an owner of the new Florida homestead property.
If you and your spouse (or former spouse) would like to designate shares of the homestead assessment difference then you must file a DR-501TS DESIGNATION OF OWNERSHIP SHARES form before you file your portability application.
To transfer your assessment difference you must have established a new homestead on or before January 1 within two tax years after abandoning your previous homestead
- (Example: for a homestead abandoned in 2017, you must qualify for the new homestead in either the 2018 or 2019 tax year. If you don’t understand this requirement, please contact our office.)
You should file for Portability at the same time you apply for the new homestead exemption. Applications should be filed by March 1. You can file in either of our office locations or online.
The amount is either transferred in its entirety or as a percentage depending on the value of the new property. The maximum transfer amount is $500,000.

Per Florida Statute, the portability benefit is calculated as follows:

https://www.paslc.org/index.php/learn/

I love to help buyers and sellers navigate the Real Estate world you can call me anytime to pick my brain (No Charge! ).
Dawn Burlace, PA, Realtor® Atlantic Shores Realty Expertise
772-444-6696

Florida's housing market: Pending sales, median prices up in March 2019

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 23 Apr 2019 13:07:00 +0000

Great news! Florida's Housing Market is strong! Of course it is, we have NO state income tax, NO snow, miles of beaches, The Orlando Theme Park center. Friendly, fun, come live where others vacation!
Fla.’s housing market: Pending sales, median prices up in March

Dawn Burlace, PA, Realtor®

Atlantic Shores Realty Expertise

772-444-6696

www.MoveToStLucie.com

Fla.’s housing market: Pending sales, median prices up in March

Why do Property Taxes Vary on the same priced Homes?

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Mon, 08 Apr 2019 20:30:00 +0000

Ok so I have to answer this question multiple times a week so I think there is a need for more public information on this highly confusing topic.

As a Real Estate Professional this is my simplified way of making sense of it. All numbers are approximate and the only way to get the closest property tax estimate based on the individual's circumstances and the individual property is through the Property Tax appraiser. www.PASLC.org you can use the Property Tax Estimator but this gives a range. You would actually have to speak to a clerk and give the property address, and your exemption situation to get a truly close estimate. Even then they don't know what governments are going to do with budgets and tax rates and what your home will actually appraise at when it is reevaluated. So the best you can hope for is to get close.

The way the property taxes work on real estate purchases is very complicated. But here is my best shot at helping you understand. If someone purchases a home say in 1985 for 75k and they live in it full time (6+months) and homesteaded it. They would be capped at no more than 3% inflation a year on taxable value so their home might be worth 200K in market price but can only be taxed at say 100k minus the 50k deduction so they may only have a 1k tax bill. Now someone that bought the same exact home at the same exact time as a vacation or rental home. They would have no exemptions or deductions (however currently there is a 10% value increase cap per year) so they would be taxed at the full 200k and have a tax bill of 4k.

What this has to do with your purchase of the home is that when the bills come out in Nov they will be based on who owned the home Jan 1 of the year current year. So if you purchased the home with the1k tax bill and closed on May 1st your taxes at closing would be prorated from May 1st to Dec 31 based on the last tax bill (the seller would give you a credit for Jan1-April 30). Or the same for the home with the 4k tax bill. You purchased both for 200k but the taxes FOR THIS YEAR ONLY would be based on prior owner. This also makes a difference when getting a loan as the bank uses the last tax bill for amount to collect to start escrow account and collect monthly for escrow account to pay the bill at the end of the year.

Now as of Jan 1, 2020 you would own the home and it would most likely be assessed for the purchase price or close to it so your tax bill from there on out would be based on 200k minus homestead exemption if you use as primary residence for 6+ months and so your bill in that situation with standard homestead exemption would be aprox 3k a year.

All these numbers are aprox but pretty close to reality.

NOTE: One pitfall to keep an eye out for is that in the case you purchase a home with a low tax bill and the mortgage company only collects escrow based on that bill. The first year you of course would be fine but the next tax year you would end up with a shortage at the end of the year when the tax bill came due and the mortgage company will assess your account the $2000 difference as well as start collecting the correct amount on your monthly bill for escrow so your mortgage payment in this scenario would jump up $333 a month until the shortfall was made up. Then once your account shortage was paid up you would start paying the additional correct amount of $166 more towards taxes.

There are some special taxing districts, some special assessments, advalorm taxes and some areas with county only taxes as well as there being additional exemptions available but this is the general idea.

On any home I can let you know the situation by looking it up on the County Tax Records.

You can call me any time for questions regarding Real Estate on the Treasure Coast of Florida

(Indian River-St Lucie & Martin Counties).

Dawn Burlace, PA, Realtor® The Burlace Team - Atlantic Shores Realty Expertise

772-444-6696 bus

954-707-0437 cell

dawnburlace@gmail.com

www.MoveToStLucie.com

353 NW Bayshore Blvd Port St Lucie FL 34983 RX-10446922

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Thu, 12 Jul 2018 15:52:00 +0000

For Sale - 442 SW Friar Street Port St Lucie Florida 34983 31x33 Garage

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Mon, 25 Jun 2018 15:21:00 +0000

Why You Need a Pro When Buying a Home

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 19 Jun 2018 19:47:00 +0000

Should You Buy a Home Now Or Wait Until Next Year?

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 19 Jun 2018 18:39:00 +0000

Brand New Home for Sale 8067 Kiawah Trace PGA Reserve St Lucie West Florida

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Fri, 15 Jun 2018 16:29:00 +0000

2373 SE Heathwood Circle Port St Lucie Florida Home for sale RX 10406448 1

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Thu, 14 Jun 2018 20:37:00 +0000

Lake Forest St Lucie West June 2018 Newsletter

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 05 Jun 2018 20:08:00 +0000

FULL EDITIONS OF CURRENT AND PAST LAKE FOREST NEWSLETTERS

www.MoveToStLucie.com

The Burlace Team Realtors® Atlantic Shores Realty Expertise

772-444-6696

Port St Lucie Rental Alternatives

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 15 May 2018 15:40:00 +0000

So Single Family Rentals are most of the rental market in St Lucie.... The bad news this article doesn't say is that the owners of these homes purchased as investment and put renters in place to cover mortgage but many are starting to cash in sell the homes and displace the renters. The current rents being charged in St Lucie county are more than the renters were used to and often much more than it would cost the tenant if it was a mortgage on the same house. If you rent a home or know someone that does. Don't wait until the landlord tells you he is selling. Start getting yourself ready now to purchase rather than rent and avoid the sleepless nights and frantic last minute search for a house. We can help! Most renters don't know it, but they would qualify or are already qualified to purchase with just a little tweaking.... We specialize in helping renters become owners. Call us!!!

772-444-6696 - The Burlace Team Realtors Atlantic Shores Realty Expertise.

See the Florida Realtors Article refered to in this blog:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=366325

www. MoveToStLucie.com

January 2018 St Lucie County Real Estate Market Update

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Fri, 20 Oct 2017 23:10:00 +0000

January 2018 St Lucie County Real Estate Market Update.

Closed units are down due to shortage in Inventory.
But sales prices are up almost 12% over January of 2017!

Interest Rates Are Starting To Climb. Better get in the market while they are still low.
Sellers, once interest rates jump, the buyers will be qualifying for less so home prices will most likely stall.
Get in on the hot market and sell your home and get your new one while interest rates are still in the 4's both your buyers and you will realize great savings!!

Click here to get your homes current market value

Multiple Generation Family Home 5 Bed 3 Bath Port St Lucie Florida

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Mon, 09 Oct 2017 16:44:00 +0000

Port St Lucie, Florida Have a big Family? Need a Big Home?
If you have a large family be it a lot of kids or maybe generations that want to live together this home is for you! 5 Bedrooms, 3 Bathrooms, 3094 SF Under Air / 4685sf Total. Pool, Fenced Yard, Garage.
You have a formal living and dining room, a breakfast nook, a family room, a rec room, a Huge Laundry room, Tons of storage. Not a foreclosure or fixer upper a nice home ready for your family to enjoy! Only $90 a SF!
$280,000 Port Saint Lucie 5 beds, 3 baths, 4,685 sqr feet - Room For Your Entire Family!
Entertain on 8x31' Covered Lanai which is open to Caged 15x26 Pool with Blue Glass Corner Fire Pits. Fenced yard has Playground with Rubber Mulch, Yard also has a Garden Space, Dog Kennel, Fish Pond and Firepit. Bamboo Floors in 4 bedrooms, Tile in 5th and down halls. Formal Living with Tray Ceiling and Teak Floors Match Formal Dining, Eat In Farmhouse style Kitchen has Thomasville Cabinets grey vinyl plank floors. Huge Indoor Laundry. All bathrooms have been remodeled with Granite Vanities. Has a Family Room and separate Game Room with sliders to Pool. Big 17x22 Garage has built in shelves and pull down stairs, Home is on City Water/Sewer and assessment paid in FULL. Blue School Zone (good school choices)

3D Virtual Tour here: https://app.immoviewer.com/portal/tour/1136282?accessKey=5943
For info Text 'pool' to 772-794-8068

Webpage: http://dburlace.asrefl.com/property/68-RX10364496-966-Nw-Bayshore-Boulevard-Port-Saint-Lucie-FL-34983

Slideshow https://spark.adobe.com/page/NF52befi0SqqE/

Video: https://spark.adobe.com/sp/design/video/c56b48c7-b815-41e3-921f-2095b09905e9

3D Virtual Tour: https://app.immoviewer.com/portal/tour/1136282?accessKey=5943

Listed By: Dawn March Burlace at Atlantic Shores Realty Expertise

332 NW Ferris Drive Port Saint Lucie, FL 34983

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Mon, 25 Sep 2017 22:32:00 +0000

Is There a Housing Bubble In Port Saint Lucie?

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Thu, 17 Aug 2017 18:12:00 +0000

I get asked this question all the time!
No bubble, this time people that are buying homes are actually qualified and have to go through more hoops and regulation than ever!
Yes, prices have gone up but they are actually below where they should have been if the bubble had never happened and homes had appreciated normally.

Now just because I say that you have to go through hoops and regulation don't think it is impossible to buy a home.

It is actually not hard if you have a Realtor® (such as myself Dawn Burlace) that can direct you to the best programs and lenders and let you know what to expect along the way. It just means that you have to prove your income (Imagine that!) and have decent credit (620+ and you are in good shape). There are even programs that will help you with downpayment and closing costs.

Excerpt from a Zillow article- "If experts are correct, by late 2017 the median U.S. home will be worth the same as it was prior to the Great Recession. But while this is a milestone, it’s a mistake to think re-achieving previous highs is a sign of full recovery. In reality, most U.S. homes are still worth far less than they “should” be if there were never a housing bubble and home values had instead grown at historic norms between 2000 and 2016".

- Good article on this subject - https://goo.gl/TPg1Ya

-Above Referenced Zillow Article - http://snip.ly/lpwex

So What are you waiting for.....Prices to go even higher?

Your landlord to raise your rent or put your home up for sale?

Don't be put in a bind/emergency situation!

Call me today and make this the start of your American Dream!

Dawn Burlace, Realtor®- 772-444-6696 business or 954-707-0437 Text/cell

http://www.movetostlucie.com/contact-agent.html

Cascades 55+ Resort Golf Style Living Port Saint Lucie South Florida

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Thu, 04 May 2017 15:48:00 +0000

This is a beautiful Newly Remodeled Lalique Model Listing in the Cascades at St Lucie West.

398 NW Granville St., Port Saint Lucie, FL 34986 Click here for a Virtual Tour
$245,000 Brand New High End Remodel- Nothing to do but Move in and enjoy the resort style community of the Cascades. New kitchen with New Stainless appliances including a Gas Stove.

Perfect for Retirees or Snowbirds. This home has Accordion Shutters all around so you can quickly lock up and secure while you are away. HOA includes Guarded Gate, Security Monitoring,Cable & Lawn Care on top of 26,000sf Clubhouse with Resort Style Pool, Tennis, Golf, Basketball, Exercise Facility, Billiards, Library, There are many classes, games, clubs, events, high speed computer room with instruction. You'll never want to leave! Like permanently living on vacation! Do yourself (or your parents a favor) you deserve it!

CASCADES is a Resort Style 55+ St. Lucie West community near lots of shopping and the Mets Spring Training Stadium. Pet Friendly with 24/7 Manned Security Gates.
Included in the $308 a month HOA is a 9-hole golf course, shuffleboard, 10 lighted Har-Tru Tennis Courts, 26,000 sq.ft. Socially Active Clubhouse, Resort Style Swimming outdoor pool & spa, State of the art-fitness center, Ladies & Men Sauna, Grand Ballroom, Media room/Library, Game rooms year round, Planned year round activities, Yoga classes, Water aerobics, Bridge class, Bocce, scrabble, Computer center/Free high speed internet/class, Art and crafts, Ballroom dancing, Full calendar of social events, community themed parties, Chauffeured transportation for scheduled activities. Some of the many clubs include Travel club, Mah Jongg, Canasta, Book club, Poker night, Bowling, Bridge club, Billiards room, Bingo, Music, Dance. Activities can be found in the CASCADES monthly newsletter. As you enjoy the resort-style swimming pool, walk up and enjoy a beverage at the barefoot bar, also there is a BBQ grill and fire pit, The community has miles of lighted sidewalks winding around scenic lakes and ponds as well as walking paths throughout the neighborhood. No worries lifestyle it's like living on a permanent vacation! Also included with HOA is a Basic Cable TV package, Alarm monitoring system, 24/7 Controlled manned access gate entry system, and Home exterior lawn services!

Call the Burlace Team Realtors® Atlantic Shores Realty Expertise to see this or other properties in the Amazing Community!
772-444-6696
www.MoveToStLucie.com

Click here for a Virtual Tour of 398 Granville

FREE Brunch! Come nosh and see beautiful new homes in Savanna Oaks

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Fri, 31 Mar 2017 20:22:00 +0000

Model Home For Sale- Closeout Pricing Click here to see it!

New FUN REAL ESTATE! My 360 Tours for Listings!

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Sun, 15 Jan 2017 23:38:00 +0000

One of the things I pride myself on is that I never stop learning and looking for better ways to do things. I am always trying to stay on the cutting edge of providing the best experience for my buyers and sellers. I found myself a great new business tool and I have had so much fun with it I feel like a child at Christmas with the excitement of using this new "Toy".

What is it? My 360Degree camera It took some time to figure out and I'm still getting used to it but I think this will make it a lot easier for buyers (especially out of town buyers) to see my listings.

My sellers are so excited that customers can see their property easily and will only ask for showings when they are really interested. Study's show property with a virtual tour sell 34% faster.
Pairing this virtual technology with professional photos really puts my seller's property at a competitive advantage.

I've already been able to send links of my listings to out of town buyers to see the property before they come into town and yes they wanted to tour the property in person when they come and are excited about it.

Yesterday I figured out a new use. I had a buyer really interested in a listing (not mine) and she was out of town and can't take off work to come out and look at property. So I made a showing appointment and went and took a virtual tour of the property she was interested in and emailed it to her.

I love giving this level of service to my clients!

Here are my first 3 Virtual Tours of my listings.
Click on the circles to move from room to room.
Have Fun!

Click to see Virtual Tour of 353 NW Bayshore Blvd.

Click to See Virtual Tour of 5372 NW Wisk Fern

Click to See Virtual Tour of 1050 SW John McCormick

Dawn Burlace, Realtor®
772-444-6696
www.MoveToStLucie.com

REAL ESTATE QUESTION #3 Should I wait and Save More Money for Down Payment 3/2 Home In Port St Lucie Today is $180K= +/- $1300 Total Payment If Prices go up by MODEST 5% The SAME HOME next Year will be $189K Mortgage of $1350 If by Predicted 15% SAME HOME is 207K Payment of $1400 ASSUMING INTEREST RATES STAY THE SAME!! If Interest Rates rise from Average 4.0% to 4.5% Payment will go to $1463 FOR THE SAME HOME YOU COULD HAVE PAID $1300 a Month For This Year. YOU CAN'T AFFORD TO WAIT WE CAN HELP YOU GET DOWN PAYMENT $

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Fri, 19 Aug 2016 17:31:00 +0000

Question I Get A Lot

"Shouldn't I just Save more Money for Down Payment??

THE ANSWER IS A RESOUNDING NO!!!!!

The Price of an Average 3/2 Home In Port St Lucie Today is $180,000

Which is +/- $1300 Total Payment including taxes and insurance.

If Prices go up by MODEST 5% (historic average)

The SAME HOME next Year will be $189K

Mortgage of +/- $1350

If by Predicted 15% (they've been going up 20% every year for past 3 years)

SAME HOME is 207K

Mortgage of +/- $1400

ASSUMING INTEREST

RATES STAY THE SAME!!

If Interest Rates rise from

Average 4.0% to 4.5%

Payment will go to $1463

For the SAME HOME

YOU COULD HAVE PAID

$1300 a Month For THIS Year.

Forget about better or more home will you even be able to afford the same as you could have in 2016!!

Can you save $20,000 in a year???

YOU CAN'T AFFORD TO WAIT!!

WE CAN HELP YOU GET DOWN PAYMENT if you don't have it saved for a minimum down payment there are ways with grants, lender credits, seller credits, bond programs.

We are experienced in helping people get into homes.

I know buying a home is scary and hard work but this should be your top priority!!!

Dawn Burlace, Realtor®

Atlantic Shores Realty Expertise

772-444-6696

dawnburlace@gmail.com

www.MoveToStLucie.com

Open House Port Saint Lucie 5/3/2 Stunning Home Saturday July 16th 11AM-2PM

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 12 Jul 2016 21:01:00 +0000

Come see this stunning property Saturday July 16th 11AM-2PM

a lucky visitor will receive $20 in lotto tickets!

The Burlace Team- Kevin & Dawn Burlace, Realtors®

772-444-6696 Dawn 772-444-6695 Kevin

http://www.searchallproperties.com/listings/2235575/2304-Southwest-Abalon-Circle-Port-Saint-Lucie-FL

www.MoveToStLucie.com

http://www.searchallproperties.com/listings/2235575/2304-Southwest-Abalon-Circle-Port-Saint-Lucie-FL

FREE - HOMEBUYER WORKSHOP JULY 14 630PM PORT SAINT LUCIE COMMUNITY CENTER

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Tue, 12 Jul 2016 20:54:00 +0000

Port Saint Lucie First time and returning homebuyer workshop-

Lender focus on VA/USDA loans-

Valuable information on Loans and Programs for First Time Home Buyers- Returning to Market after foreclosure buyers,

Veterans, Teachers, Law Enforcement, Nurses, Firefighters.

Experienced Lenders and agents that will help you get qualified for a loan.

We know how to get you money for downpayments and how to navigate you through bond and grants.

PSL Community Center- 2195 SE Airoso Blvd

6:30PM

FREE - Reservations recommended. Reserve at link below or call us at 772-444-6696

http://www.movetostlucie.com/1st-homebuyer.html

NOTE: If you can't make it to this workshop we hold them quarterly

but are also available and happy to do a one on one consultation at any time and email you all the workshop materials.

http://www.movetostlucie.com

Burlace Team- Kevin & Dawn Burlace, Realtors®

Kevin Cell - 772-444-6695 burlaceteam@gmail.com

Dawn Cell - 772-444-6696 dawnburlace@gmail.com

100 SW Todd Avenue

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Mon, 11 Jul 2016 20:05:00 +0000

Ready to move into a great home!
Tile floors, Giant Patio, Granite Countertops, Freshly painted. Great yard on a oversized fenced corner lot.
Centrally located easy access to both I-95 and the Turnpike!
Not a foreclosure - Quick response on offers.

100 SW Todd Avenue - Virtual Tour

Burlace Team
772-444-6696
burlaceteam@gmail.com
www.MoveToStLucie.com

FACT OR MYTH - Don't need Real Estate Agent when Considering New Construction?

noreply@blogger.com (Why Port St Lucie Florida Property Taxes vary so wildly) — Wed, 25 May 2016 17:03:00 +0000

Should I hire A Realtor When Buying New Construction?

One of the first decisions that must be made in the home buying process is whether to buy an existing home or build a new home. If you decide that you would like to explore the new construction route, the next decision that needs to be made is whether or not you want a real estate agent.

THE RESOUNDING ANSWER IS YES!!!!

Florida as well as the majority of states allow a buyer to choose if they want to use a real estate agent or if they do not want to use a real estate agent when buying new construction.

In most situations, there are way more reasons why you should hire a real estate agent when buying new construction rather than attempting it without a real estate agent.

It's VERY important to know that when buying new construction and if you decide to hire a real estate agent that you have agent registered with the builder before meeting or even browsing with builder or builder will NOT allow representation.

Below are some of the most important reasons to hire a real estate agent when buying new construction. Read on to find out why using a real estate agent can save you time, money, and frustration when buying new construction!

Provide Representation Because It Is Important

When buying new construction many buyers believe it’s a good idea to not have a real estate agent and to use the builder representative. The thought process behind this real estate myth is that it can save them money which is absolutely false.

What a buyer is doing by working with the builders representative is working with someone who is NOT representing them but instead is representing the builder. The builders representative is working in the best interest of the builder, not a buyer. Having representation is critical whether buying new construction or an existing home. Many builders will give incentives to representatives to help them close the deals but encourage them strongly NOT to use them and even give bonuses to representatives when they don't use them.

It’s important that when hiring a real estate agent to represent you in the purchase of a new construction home that you know ask the right questions. Having an experienced buyers agent is important when buying an existing home but having a real estate agent who has experience with new construction is critical.

WE THE BURLACE TEAM ARE NEW CONSTRUCTION SPECIALISTS. We know all the new builders in town and have floor plans and know the benefits and drawbacks of each. Having worked as a New Home Builder's representative we know this process from the builders perspective and know the tricks of the trade.

To help increase the chances you hire a real estate agent who has experience with new construction, it’s important you know what questions to ask real estate agents.

Some of the questions to consider asking real estate agents when buying new construction include;

Are you familiar with the new construction process?
Do you have any lenders who specialize in new construction loans?
Why do I need you to buy new construction?
How many new construction homes have you sold in the past?

Negotiate On Buyers Behalf

Hiring A Real Estate Agent Can Help Prevent Getting Ripped Off When Buying New Construction

Buying new construction upgrades can get pretty expensive. Most builders will advertise their base price of their new homes and in most cases, this price is for the plain “basic” home sometimes without windows, lighting, landscaping etc....

One of the benefits to buying new construction is the ability to make it your own. With the customization of a home comes an increase in the price. Another reason to hire a real estate agent when buying new construction is their ability to negotiate on your behalf and also which upgrades are worth the price and which you can do cheaper and with more options on your own.

Most builders will have a list of prices for upgrades and changes to their floor plans. A real estate agent who has experience with new construction can help navigate these upgrades and changes to floor plans.

Contract Contingencies & Inspections

There are tons of reasons why having a home inspection is important when buying an existing home, but it’s also very important to have a home inspection when buying new construction. Many buyers who are purchasing new construction believe that since the home is brand new that they don’t need an inspection.

Another reason to hire a real estate agent when buying new construction is the reality that they know what inspections to recommend to a buyer.

There are many Real estate contract contingencies that a real estate agent can suggest to a buyer when buying new construction. For example a contingency based on the sale of your current home, if your current home is for sale and you go under contract for a new home you can get a contingency based on your home selling before you purchase your new one.

Make Recommendations On Improvements & Upgrades

Generally a buyer is given an allotment for things such as lighting fixtures, carpet choices, cabinetry, counter tops and other home features. Real estate professionals know what home features today’s buyers are looking for in a home. One of the worst things that a buyer can do when building a home is spend lots of money on upgrades and improvements that may hurt the value of the home when the time comes to sell the home.

Hiring a real estate agent when buying new construction can help reduce the chance that a buyer spends money on a overpriced upgrade or improvement. An experienced real estate agent can help a buyer understand the cost of an upgrade versus the potential return on investment.

Most buyers don’t think about the long term effect that home improvement projects can have on value of a home. While the majority of buyers aren’t thinking about already selling their home when buying it, a real estate agent can help a buyer stay aware of the effect an upgrade can have on the resale value.

Recommend A Quality Lender & Financing Options

Real Estate Professionals Can Provide Financing Recommendations For New Construction Loans

Another great reason to use a real estate agent when buying new construction is their ability to recommend a quality lender. The financing for new build homes is much different than getting a mortgage for an existing home.

Financing for new construction is not offered by all lenders. It’s recommended that you try and utilize a local lender when buying a new build. A real estate agent who has experience with new construction will be able to give a couple recommendations to lenders who offer new construction loans.

There are different types of new construction loans an end loan where the builder gets financing and builds using their banks money and you purchase after project is complete and is ready to move in or a "new construction" loans where the lender will make periodic payments to the builder as progress is being made on the home. This requires the buyer to pay interest during the build for money as it is "drawn" from the account and inspection fees from the bank representative to prove the builder has completed the items the prior draw were for. Upon completion the buyer will get a new mortgage. The buyers new mortgage will payoff the construction loan and becomes the financing the buyer will have for the life of their loan.

Keep The Transaction & Build On Schedule

Buying new construction is a pretty complex process. There are many moving parts and it can be easy for the transaction and/or build to get off track.

Another excellent reason to hire a real estate agent when buying new construction is the ability an experienced agent will have to keep the transaction and/or build on track. There are many reasons why real estate closings are delayed with existing homes and with new builds there are even more.

Depending on factors such as the size of a home, weather, and the builder, new homes can take a few months to a year to build.

Generally speaking you should expect a new home to be built in 12-14 weeks. Below is an idea of what happens during the 12-14 week time frame.

Week 1 – Site Preparation – During the first week the area where the new home is being built is prepared for the build phase. This includes the clearing of the lot, excavation, and leveling of the lot.
Week 2-5 – Foundation – During this 4 week process the bones of the new home are built. This means the footers are installed, followed by the foundation, and last but not least the homes walls and structure is built.
Week 6-8 – Mechanics & Interior – During the next 3 weeks the homes mechanics are put in place. This generally means the homes HVAC is installed, electrical wiring is run, and the homes plumbing is put in place. Once this is completed, the homes insulation and drywall is installed.
Week 9-11 – Flooring & Paint – Over the next 3 weeks, the homes flooring, doors, and cabinetry are installed. At this time the interior of the home is painted as well.
Week 12-14 – Fixtures, Appliances, Landscaping – The final 3 weeks is when the homes light fixtures, faucets, appliances, and landscaping is installed.
Week 14 – Final Walk Through – Once the home is completed, the buyer will do a final walk through in addition to the municipalities inspector with the builder prior to issuing the certificate of occupancy, also known as a CO.

It’s important to understand that the above timeline for new construction can vary weather and delays at the building department/inspections are common. Normal construction time locally in Port St Lucie is quoted as 6-8 months ending up most often in the 7 month range.

As you can see there are many moving parts and stages of new construction. It’s a good idea to have an experience real estate agent when buying a new home so that everything stays on track for a smooth transaction and closing.

Final Thoughts

If you decide that you’d like to buy new construction, as you can see, there are lots of benefits to hiring a New Construction Specialist Real Estate Agent. It is recommended that you do not attempt it without representation. Having a professional working on your behalf can go a long way and save you lots of time, money, and additional stress.

THE BURLACE TEAM - New Construction Specialists

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