Bardell Real Estate Logo
What To Expect in the Housing Market for the Rest of 2022

What To Expect in the Housing Market for the Rest of 2022

What To Expect in the Housing Market for the Rest of 2022

What To Expect in the Housing Market for the Rest of 2022

 

What a difference just a few months can make. As the year comes to a close, the red-hot housing market has been brought to its knees by soaring mortgage interest rates.

It now appears to be in a standoff as just about everyone suddenly feels stuck. Home prices are beginning to fall from their peaks in some of the nation’s hottest markets—but not enough to make up for the higher mortgage rates. So more and more buyers simply can’t afford to buy. Sellers, who are typically also buyers, don’t want to give up their low mortgage rates to purchase new properties. Renters can’t afford to move. And many new homeowners fear they bought at the peak of a rapidly deteriorating market.

“No one wants to catch a falling knife,” says economist Yelena Maleyev of KPMG US. “No one wants to buy in a market when prices are falling. You want to wait it out.”

So what’s next as 2022 comes to an end? Will mortgage rates continue to rise? Could prices come down even more? And will buyers return to the market?

“There is definitely a belief that home prices will go down. So consumers are saying, ‘Why would I buy now if prices are lower in two months’ time or three months’ time?’” says Ali Wolf, chief economist of Zonda, a real estate consultancy.

“That mindset is freezing the housing market.”

In the past year, mortgage rates have risen from just under 3% to more than 7% for 30-year fixed-rate loans, according to Freddie Mac. That translates into mortgage payments rising by hundreds of dollars more every month. Median monthly mortgage payments are now about 81% higher than they were a year ago, according to a Realtor.com® analysis.

Few buyers, especially first-timers, can afford that sort of increase. Many can no longer qualify for mortgages due to the higher rates, and others are being forced to slash their budgets. Homes are sitting on the market longer, sellers are slashing prices, and sales are stalling. So the pressure is on home prices to come down. And they’re beginning to oblige.

“The housing market is getting crushed,” says Mark Zandi, chief economist at Moody’s Analytics. “Potential first-time homebuyers can’t afford to buy, potential trade-up buyers can’t afford to move. Investors have gone to the sidelines because they know prices are going to fall further.”

How low will home prices go?

Many prospective buyers are eyeing home prices like a game of limbo. How low will they go?

Zandi, from Moody’s Analytics, expects prices will fall nationally by about 10% from peak to trough, bottoming out in the summer of next year. They’ll go down even more in the pandemic hot spots—such as Phoenix; Boise, ID; and Austin, TX—that experienced the biggest run-ups. Prices in these places could drop as much as 20%. Florida, where the demand from buyers is still strong, could hold up a bit better, he says.

“The markets that got most juiced up during the [COVID-19] pandemic are the markets that are going to experience the biggest declines going forward,” says Zandi.

Wolf, of Zonda, expects prices could fall by 15% nationally over the next year. She’s seeing about 40% of builders cutting prices.

However, it’s important to put any price declines into perspective. Nationally, home list prices rose 40.6% in just over two years’ time—from March 2020, when the pandemic lockdowns began, to the peak of the market this past June, according to Realtor.com data. So a 10%, 15%, or even 20% drop over a two-year span isn’t as significant as it might seem at first.

“A really important thing to remember is housing is cyclical,” says Wolf. “We came from a massive run-up in prices, sales, demand in the housing market, and now it’s contracting. This is not new.”

And not everyone is anticipating a dramatic fall in prices.

Lisa Sturtevant, chief economist of the Bright MLS, which covers the mid-Atlantic region, expects prices will come down a bit from their peaks over the summer. But for much of the country, price growth will slow. That means prices won’t rise at such a large clip as they did during the pandemic.

“I don’t anticipate a big price crash,” says Sturtevant.

Rental prices are also poised to slow

The wild rent increases of the past year are also slowing down.

Most renters are struggling to afford the higher price tags, especially as inflation, gas, and other costs have soared. Rents in many places are so high that many young adults can’t afford to move out of their parents’ homes. And now many companies are issuing pink slips, making it even harder for renters to afford these high prices.

Zandi expects that rents will stabilize and could even come down a little in the parts of the country where they went up the most.

“They’ll be weaker in the near term,” he says.

Mortgage rates are poised to rise—but are coming down instead

Mortgage rates are expected to remain high—and could even rise through the end of the year.

This is due to the U.S. Federal Reserve, which has been hammering the housing market by raising its interest rates to combat inflation. When the Fed raises its rates, mortgage rates generally follow. And the Fed is expected to continue jacking up its rates.

However, mortgage rates fell last week after the government showed inflation was still strong but was slowing. That means the Fed will continue raising its rates, but perhaps not as much as previously anticipated. That unexpected optimism explains why mortgage rates were down from 7.22% to 6.62% on Thursday for 30-year fixed-rate loans, according to Mortgage News Daily.

While mortgage rates are still expected to remain high through the rest of the year, many are watching closely to see what they do next.

“The doubling of rates is over,” says Maleyev of KPMG. The housing market will “pick back up when interest rates start to go down again.”

More homes are for sale, but not many new ones are coming on the market

Buyers finally have more options to choose from—just not many new ones they haven’t already seen.

Some sellers, who were planning to list their homes in the next few years, are still going to attempt to unload their properties while prices are still high. Others will need to sell for life reasons, such as needing more space as their families grow or wanting less space as their children leave the nest. There are also those who will move for work or to be closer to family and friends.

“There are always reasons why people have to move, and those moves will still happen,” says Sturtevant. But “if you don’t have to buy a home, you might decide this is not the right time to make that move.”

Most sellers are also buyers. Those who don’t need to move will likely stay put—especially if they have a mortgage. Most homeowners now have loans with rates in the 2% and 3% range. If they purchase a new home, they will need to get a new loan with a rate that’s likely to be at least twice as large. And higher rates can add hundreds, if not more than a thousand, to a monthly mortgage payment.

Plus, many of those who do sell right now are having to cut prices, contribute to buyer closing costs, or make other concessions.

Builders currently have a lot of homes in the pipeline, but they’re beginning to pause construction in the face of fewer buyers. Many are still scarred from the run-up to the Great Recession, where they built more homes than there were buyers for—and then lost their shirts when the downturn happened. Despite the housing shortage, they don’t want a repeat of the housing bust when many companies went under.

That’s going to decrease turnover in the housing market and affect the number of homes sold. Sales have dropped in recent months as a result of all of the turbulence in the housing market. Even investors are now holding off, favoring a wait-and-see approach.

“We’re living through a really unique time in the housing market because we have both a buyer’s strike and a seller’s strike happening at the same time,” says Zonda’s Wolf. “When you have both of those things happening, home sales will inevitably come down.

A recession would weaken the housing market even further

If the nation tips into a full-fledged recession with widespread unemployment, the housing market will fare even worse.

“Recession risks are very high,” says Zandi. He thinks the nation could still avoid one, but just barely. “It’s going to be very close.”

Nationally, home prices could drop 20% during a recession and more in the most “juiced up” markets, says Zandi.

However, real estate experts don’t anticipate a repeat of the Great Recession when home prices crashed, bad mortgages went bust, and foreclosures swept the nation. Since the last bubble popped, most of the subprime mortgages that got homeowners into trouble have been abolished. Lenders have become stricter, and now only the most qualified borrowers are getting approved for mortgages, lessening the risk of another foreclosure crisis.

And unlike during the last crisis, there are more buyers than there are homes for sale.

“Prices will come down, but they’re not going to collapse because there is this shortage of homes,” says Zandi. “That will help ensure the market doesn’t collapse.”

The bright spot of a recession is that, during a downturn, the Fed is more likely to lower rates to stimulate the economy. That would likely lead to falling mortgage rates. Combined with lower home prices, first-time and other buyers could jump back into the housing market.

“This is still a pretty strong economy,” says Padhraic Garvey. He is the regional head of research, Americas, at the multination financial services and banking company ING. “There is a recession risk, but we don’t have the ingredients there for the housing market to crash. Prices won’t collapse off a cliff.”

 

Source

 

Experts in Residential Real Estate in Orlando

If you are buying or selling real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Fla.’s Oct. Housing Market: Median Prices, Inventory Rise

Fla.’s Oct. Housing Market: Median Prices, Inventory Rise

Fla.’s Oct. Housing Market: Median Prices, Inventory Rise

Fla.’s Oct. Housing Market: Median Prices, Inventory Rise

ORLANDO, Fla., Nov. 18, 2022 /PRNewswire/ — Florida’s housing market reported higher median prices and more inventory (active listings) in October compared to a year ago, though inflation and rising interest rates remained a factor for buyers, according to Florida Realtors®’ latest housing data.

Closed sales of single-family homes statewide last month totaled 20,837, down 24.6% year-over-year, while existing condo-townhouse sales totaled 8,356, down 26.9% from October 2021, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

According to Florida Realtors Chief Economist Dr. Brad O’Connor, a look at market conditions from 2021 to the latter half of 2022 offers insight into how sales have been affected. He explained, “The beginning of 2022 marked the end of a nearly two-year period of record-low mortgage rates, as the Fed began to reverse its course in order to fight pervasive inflation in the economy. The rapid pace of the resulting increases in interest rates has dramatically increased the monthly payments required for new mortgages, and home price growth has only recently started to show signs of responding.

“In terms of closed sales in Florida, 2022 started out a lot like 2021, but soon, the shock of the rapid rise in mortgage rates caused many buyers to suspend their home searches and sit on the fence; some even had to drop out when their planned budget for a home couldn’t keep pace. As a result, the second half of 2022 has seen the level of existing home sales in Florida more-or-less fall in line with the typical pre-pandemic seasonal trends.”

O’Connor added, “The fact that monthly sales still remain in the neighborhood of pre-pandemic levels despite today’s significantly higher home prices and mortgage rates only illustrates that despite these headwinds, housing demand in Florida continues to receive support from its recent surge in post-pandemic in-migration, vacation home purchases, and the ever-increasing number of millennials looking to find a home for their growing families.”

In October, the statewide median sales price for single-family existing homes was $401,990, up 12% from the previous year; for condo-townhouse units, it was $310,000, up 19.2% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

“The supply of for-sale homes continues to slowly build, easing inventory constraints in many markets across the state,” said 2022 Florida Realtors® President Christina Pappas, vice president of the Keyes Family of Companies in Miami. “Having more supply available will begin to ease some of the pressure on home prices, which in turn will help buyers dealing with higher interest rates. Homes in Florida continue to go under contract quickly, though the time to contract is slightly increasing: The median time to contract for single-family existing homes last month was 25 days compared to 12 days during the same month a year ago. The median time to contract for existing condo-townhouse units was 25 days compared to 15 days in October 2021.

“Buying or selling a home is a complex and emotional process but working with a local Realtor can help you understand changing market conditions and give you peace of mind.”

Statewide inventory was higher last month than a year ago for both existing single-family homes, up 88.4%, and for condo-townhouse units, up 31%. The supply of single-family existing homes increased to a 2.7-months’ supply while existing condo-townhouse properties were at a 2.5-months’ supply in October.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 6.90% in October 2022, significantly up from the 3.07% average during the same month a year earlier.

To see the full statewide housing activity reports, go to the Florida Realtors Newsroom at http://floridarealtors.org/newsroom and look under Latest Releases or download the October 2022 data report PDFs under Market Data at: http://floridarealtors.org/newsroom/market-data.

Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its more than 225,000 members in 51 boards/associations. Florida Realtors® Newsroom website is available at http://floridarealtors.org/newsroom.

SOURCE Florida Realtors

 

Experts in Residential Real Estate in Orlando

If you are buying or selling real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

How to Become a Landlord

How to Become a Landlord

How to Become a Landlord

Investing in a rental property can be a great way to generate income each month while building your real estate investing portfolio. However, knowing how to be a landlord often requires previous experience, which you may not have as a first-time landlord.

We outlined 10 steps to becoming a landlord and provided a first-time landlord checklist to help guide you through the process.

1. Determine If You Need an LLC for Your Rental Business

Although a limited liability company (LLC) is not required to successfully manage a rental property, it helps limit your personal liability and separate your rental income from your personal income. However, creating an LLC for your rental business comes with both pros and cons, which is something to be fully aware of early on.

Since LLCs are regulated at the state level, the process of creating one will vary depending on where your rental property is located. To further understand how to create an LLC in your state, you can visit your Secretary of State website for more information.

If you’ve decided having an LLC is beneficial for your business, you can then move on to create a separate business bank account to store security deposits, rent payments, pet fees, and more.

2. Purchase a Rental Property

To become a landlord, you’ll need to purchase an investment property that tenants can rent out. Trusted house hunting websites for first-time homebuyers that can help you find nearby properties that not only fall within your budget but can help you generate income over time.

There are three main types of properties you can purchase — a single-family home, a condo, or multi-unit building. Each type of property varies in the amount of maintenance it’ll require, how much you’ll need to budget for, and how much profit it can generate from rent payments. For landlords beginning their real estate investing journey, it’s advised to start with a single-family home or condo to gain experience as a landlord before moving to multi-unit buildings.

3. Get a Rental Registry

Similar to creating an LLC, certain counties require landlords to register their rental property with the city to begin renting out their property to tenants. Commonly referred to as a rental registry, you may be required to submit information to your city government, such as the address, name of the ownership, your contact information, and the operating manager.

You can research local rental rules in your area to see if you need to allocate time to complete this step before listing your rental property.

4. Prepare Your Finances

Managing a rental property means handling sudden maintenance requests and repairing damage before and after a tenant moves in. There could also be circumstances where a tenant is unable to make their rent payment, so you’ll want to have money set aside to cover the mortgage payment or any additional fees associated with your property.

Common operating expenses to prepare for are:

  • Mandatory inspections and annual registration fees
  • Property and rental income taxes
  • Landlord insurance
  • Maintenance and repairs
  • Mortgage and utility payments
  • Tenant screening fees

The amount you’ll end up paying each year will vary depending on where your property is located, so it may be best to do some research prior to finding tenants.

5. Understand Landlord-Tenant Laws

The key to avoiding legal situations during the rental process is by understanding and being aware of local landlord-tenants laws in your area. These laws have been created to protect both landlords and tenants, and must be followed at all times.

You must also be aware of federal Fair Housing laws and local ordinances when finding tenants for your property, since failing to comply can also land you in court — or worse, being forced to shut down your rental business. It’s also important to note that you should regularly check local landlord-tenant laws once you’ve launched your rental business to be aware of any major changes.

6. Purchase Landlord Insurance

Landlord insurance is intended to protect your rental property from any structural damage and help cover various associated costs. You can check with your current insurance provider for coverage options or find reputable providers that can help cover your investment.

Since landlord insurance only covers your property, tenants should take out renters insurance to ensure their belongings are also protected.

7. Get Your Property Move-In Ready for Tenants

All states require rental properties to be livable and safe for tenants to live in. Before the tenant moves in, it’s important to fix any issue that could impact their renting experience or violate local regulations, such as having faulty smoke and carbon monoxide detectors installed.

Some landlords also hire a cleaning company to deep clean the property before the tenant moves in, but you can also clean the property yourself.

8. Determine Your Rent Price

One of the most stressful parts to becoming a landlord is setting a rent price that’s considered fair, while still allowing you to generate a profit each month. There are two ways to determine your rent price — you can search for local rental listings to see how much landlords are charging for similar rentals or you can contact one of our residential Property Managers here at Bardell Real Estate. It’s important to keep your price fair for your area to avoid setting too high of a rent price, which can deter prospective tenants from applying.

9. Maintain Your Rental Property

Your rental property will naturally experience wear-and-tear the more it’s rented out, so it’s important to perform regular maintenance to avoid major repairs. You may want to clean the gutters, service HVAC units, or perform pest control throughout the year to ensure it’s a great environment for tenants to live in.

10. Find a Local Community of Landlords

If you’re beginning your journey as a DIY landlord, it’s important to find a local community of landlords that can help answer any questions you may have. There you can see what other landlords are asking, learn tricks and tips to managing your property, and connect with people near you to create a community of fellow professionals.

 

Looking for an Experienced Residential Property Manager?

If you have a home to rent in the Orlando area be assured there is no substitute for experience. Covering Clermont, Winter Garden, Windermere, Dr Philips, Kissimmee, Davenport, Champions Gate, Hunters Creek and Haines City. We remain focused on this greater Orlando area to ensure we are able to provide outstanding service to our Clients without sacrificing performance. Looking for an experienced residential Property Manager in the Orlando area with a demonstrable track record – look no further. Or Call us at (836) 424-2309

Source

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Orlando Pottery Festival & Holiday Arts Market

Orlando Pottery Festival & Holiday Arts Market

Orlando Pottery Festival & Holiday Arts Market

Orlando Pottery Festival & Holiday Arts Market

FREE ADMISSION • THANKSGIVING WEEKEND EVENT!

The Orlando Pottery Festival presents…

 

The Orlando Pottery Festival & Holiday Arts Market, Central Florida’s largest winter celebration and market of ceramic art—featuring unique handmade items perfect for the home, garden, and gift giving! Join us on Saturday, November 26, 2022, from 9 am to 5 pm, at the Fraternal Order of Police (FOP) Orlando Lodge #25 at 5505 Hansel Ave, Orlando, FL 32809.

Meet 36 talented local artists, including highly regarded professional potters who exhibit in galleries and juried art festivals throughout the South; mid-career artists whose distinctive designs and signature items are fast becoming contemporary collectibles; longtime “hobby potters” who are channeling their creativity while mastering their craft in local pottery studios; and younger and emerging ceramic artists, some of whom are selling to the public for the first time.

Shop the diverse range of these artists’ original functional and decorative work, such as handmade everyday dishware, elegant ceramic jewelry, sculptural and figurative work inspired by Florida’s flora and fauna, whimsical and practical home and garden decor, and much more—all created on the pottery wheel or using hand-built and slip-cast techniques.

Returning visitors know that the Orlando Pottery Festival’s twice-annual events—typically held in the spring and during the winter holiday season—are the best way to get “first dibs” on recent work from favorite local potters, and to meet the new artist vendors added to each festival. The Orlando Pottery Festival’s growth and diversity of artistic work makes for events that reflect the vibrancy and diversity of handmade ceramics.

The Orlando Pottery Festival & Holiday Arts Market is a family-friendly event for all ages; free admission, free parking. For more information about the Orlando Pottery Festival, please visit www.orlandopotteryfestival.orgInstagram.com/OrlandoPotteryFestival, or Facebook.com/OrlandoPotteryFestival.

For the health and safety of all visitors and vendors, we encourage our guests to follow the latest Centers for Disease Control and Prevention (CDC) health and safety guidelines for gathering in indoor venues during the global pandemic. This event is subject to change due to ongoing public health and safety circumstances. See www.orlandopotteryfestival.org for the latest information.

Source and Reserve a spot here!

 

 

 

 

 

 

 

 

 

Experts in Residential Real Estate in Orlando

If you are buying or selling real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Reasons Home Sales Are Falling Through Today

Reasons Home Sales Are Falling Through Today

Reasons Home Sales Are Falling Through Today

Reasons Home Sales Are Falling Through Today

 

For the past few years, anyone who wanted to sell their home was pretty much guaranteed a buyer, but that’s no longer the case.

During the height of the COVID-19 pandemic, a seller’s market reigned, where buyers would do just about anything to get a house, from offering way over the asking price to waiving contingencies. But the real estate landscape has changed a lot since then.

In fact, one recent survey by home warranty company Cinch Home Services of 1,000 Americans who tried to buy or sell a home in the past year found that 1 in 5 seller’s deals fell through.

The reasons these deals are failing run the gamut, but one common theme is economic uncertainty. According to the Cinch survey, 16% of deals fell through due to buyer’s job loss and in 23%, buyers pulled out because they were afraid of a recession.

“Consumers are feeling uneasy about the current state of housing and the economy,” says Ali Wolf, chief economist for Zonda. “Today’s market is different than it was just six months ago.”

Since selling a home today is no longer a given, sellers whose homes are on the market right now might be worried. While not all contracts can be saved, many can if sellers know how to properly vet a buyer and make sure they’re prepared for any curveballs that might hit before closing day. Here’s where those deal-killing pitfalls are hiding, as well as how to avoid them so your own contract crosses the finish line.

 

1. Higher interest rates interfere with buyer financing

Back when the market was booming and mortgage interest rates were low, many buyers could finance a home purchase without a problem. But now that interest rates have essentially doubled in the past year (from the 3% to 6% range), buyers can’t afford what they used to. In fact, the Cinch survey found that of the real estate contracts that didn’t close, 42% was due to the mortgage application being denied and 31% was due to higher interest rates.

How to save the deal: “The best bet for sellers is to require a recent pre-approval letter from the lender, written within the last 30 days,” says Elizabeth Sugar Boese. “This helps the seller by preventing a contract termination based on the loan’s monthly payments.”

And whenever interest rates are rising fast, sellers should ask if their buyers have a lock on their interest rate, which makes them immune to fluctuations within a certain time period.

“Buyers that have a mortgage rate lock are more likely to close the purchase versus those that still need a rate lock,” says Wolf.

“Home sellers should also be aware of some signs that a homebuyer is at higher risk for not closing on the deal,” says Jason Gelios, author of “How to Think Like a Realtor”. “These signs are a smaller down payment, a need for concessions or seller credits, and/or a pre-approval from an unknown lender.”

 

2. Homes aren’t appraising for what buyers offered

Another problem with loans today is that even if the buyer is solid, the property itself can throw a wrench in things if the appraisal falls short of what the buyers offered to pay. This is known as an appraisal gap, and it’s a huge problem for sellers—and buyers—right now.

According to the Cinch survey, 35% of deals that fell through during the past year were because a home appraised for significantly lower than the purchase price.

“Home sales are falling through because sellers are still pricing their homes as if it was six months ago, thinking they are going to be getting lots of offers over asking price,” says Nathaniel Hovsepian.

Even if sellers luck out and get a sky-high offer, a lower appraisal means the homebuyer has to figure out how to make up the difference. If the buyer can’t, or doesn’t want to, the deal is off.

How to save the deal: When you’re looking to price your home, make sure you’re on target with what similar homes in your area have appraised for within the past three months. In general, you want to price your home within 10% of those numbers.

But then also consider that the market is cooling.

“A seller reluctant to price their property at the lower market price may find themselves chasing a declining market,” says real estate agent and lawyer Bruce Ailion. “And that can become extremely costly.”

 

3. Buyers are driving a harder bargain

When the market was red-hot, buyers were willing to give up a lot to win the bid. In many cases, that meant giving up contingencies for appraisals, financing, and home inspections.

But now that buyers have a bit more leverage with negotiations, contingencies are back—particularly home inspections. And if your own home’s inspection uncovers termites or a leaky roof, know that buyers will dig in their heels today.

According to the Cinch survey, 38% of home purchase deals that didn’t close in the past year was due to something found during a home inspection.

How to save the deal: As a seller today, you just have to accept that buyers will no longer throw caution to the wind and waive all contingencies. They have the leverage today to do their due diligence—and if a home inspection turns up problems, you may have to make repairs or other compromises to keep the buyer happy.

Gelios had a deal almost go awry recently when, upon inspection, it was discovered that the shower in the primary bathroom would not be operable until it was remodeled by the new owner.

“After the inspection was completed, I reached out to the listing agent and stated that we needed to adjust the offer price to reflect a newly remodeled walk-in shower,” says Gelios.

Fortunately, Gelios says, the seller agreed to renegotiate a lower price and the deal was saved. And that is what is needed by sellers who don’t want the contract to fall apart.

“One of the most common ways to save a deal from dying is to renegotiate fairly for both buyer and seller,” says Gelios. “Whatever the buyer is looking to renegotiate should also be fair to the seller—avoiding any overabundant requests or higher price adjustments that are way out of whack.”

As a seller right now, you’ve got to be willing to give a little.

“Sellers that want the contract to move forward should be willing to work with the buyer,” says Wolf. “Consider helping with the closing costs or addressing many of the items on the home inspection list.”

 

Source link

 

Experts in Residential Real Estate in Orlando

If you are buying or selling real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.

 

Cost of living in Florida 2022

Cost of living in Florida 2022

Cost of living in Florida 2022

Cost of living in Florida, 2022

 

The Sunshine State’s beaches and warm climate are a powerful draw. Florida is attracting new residents in droves — it was the number one state that people moved to in 2021, according to a recent study by Move.org. And it’s no wonder: Two Florida cities appear on Bankrate’s newest rankings of the best places to live in America, and the state tops our list of best states for retirement.

One of our best places to live in Florida is Tampa, a city that actually skews young, rather than retirement age, thanks in part to its numerous colleges and universities. Other top-rated cities include Jacksonville, Gainesville and Orlando, which all receive high marks for affordability and job offerings.

For a long time, Florida had a reputation of being one of the more budget-friendly states in which to live. But that appears to be changing as the cost of housing trends ever upward. As of August 2022, median sale prices for homes in the state reached $407,000, according to Florida Realtors data. And Miami was labeled the least affordable city in the nation for renters by a Realtor.com report issued earlier this year.

What’s the average cost of living in Florida?

Housing is a big piece of the puzzle when it comes to overall cost of living — but it’s not the only piece. There’s also what you’ll need to pay for daily essentials like food and transportation. According to MIT’s living wage calculator, a single adult with no children would need to earn a minimum of $35,858 to make ends meet. Here are some key costs to consider if you’re thinking of moving to Florida:

Housing costs

Whether you’re seeking to rent or buy, there’s a great deal of competition for homes in Florida. The influx of people moving from pricier parts of the country is pushing up prices and squeezing many longtime residents out of the market, particularly those in lower-paying jobs. And be sure to look into the cost of homeowners insurance in Florida, which may be high due to potential damage from hurricanes and other risks.

The state is home to the top three cities in the Sun Belt where rents increased the most between 2021 and 2022, according to Realtor.com. In Miami, rents in February 2022 had soared 55.3 percent since the previous year, with the median monthly rent reaching $2,929. In Orlando, rents rose 35.4 percent to $1,843, and Tampa rents increased 32.3 percent to $2,098.

On the buyer side, the $407,000 median sale price for single-family homes represents a 15 percent year-over-year increase, say Florida Realtors. And the median price for a condo or townhouse, $305,000, is an increase of more than 20 percent. However, there are signs that inventory is increasing, which may help ease prices.

Utility costs

Utility costs in Florida are 3 percent higher than the national average, according to RentCafe. Average monthly utility bills in major cities run well over $100. In Orlando, home of Disney World, utilities cost a steep $185 per month on average, while in Miami, monthly bills are typically around $128.

Grocery costs

Amid the inflation pressures sweeping the nation, food prices in Florida have been rising. The cost of typical grocery items, like baked goods, meats and produce, rose 15 percent between 2020 and 2022. According to MIT’s living wage calculator, food costs in Florida run about $3,351 per year for a single adult with no children. For a family of four, two adults and two children, that figure rises to $9,856.

Transportation costs

Unlike many other living costs in Florida, transportation is about 1 percent less expensive than the national average. MIT’s data puts annual transportation costs in the state at $5,509 for one adult. For a family of four, that cost ticks up to $15K.

Taxes

The state of Florida has no income tax for individuals, according to the Tax Foundation. It does, however, charge a 6 percent sales tax. Property tax rates in Florida vary by county but average about 0.91 percent of a property’s value. That puts it right near the national median — it ranks 26th out of the 50 states in property taxes.

Florida’s job market

Florida offers a robust job market. The state’s largest employer is the Publix supermarket chain, which is headquartered in Lakeland, followed by — no surprise — Walt Disney Parks and Resorts. (Grocery chains and amusement parks loom large in Florida’s employment scene, as Winn-Dixie and Universal Orlando also rank among the state’s top employers.)

The state’s unemployment rate as of August 2022 was just 2.7 percent, according to the Bureau of Labor Statistics. That’s 1.6% lower than it was in 2021, and it’s a full percentage point lower than the national unemployment rate of 3.7 percent.

Ready to move to Florida?

Before relocating anywhere, it’s a good idea to visit and explore the different areas where you might consider living. Daily expenses, job opportunities, healthcare offerings and entertainment options can vary significantly from place to place, even within the same state. Use Bankrate’s cost of living calculator to determine the differences from one Florida city to another — for example, the cost of living in Miami is more than 25 percent higher than it is in Jacksonville.

If you’re looking to buy a house in Florida, be sure to work with an experienced local real estate agent. An agent who knows the intricacies of the local market can make all the difference on your house hunt, especially if you’re moving from out-of-state. Ask friends and family in the area for referrals, and if you see a “for sale” or “sold” sign in a neighborhood you’re interested in, reach out to those agents as well.

Source link

 

Experts in Residential Real Estate in Orlando

If you are buying or selling real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.

Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.

Ready to make a Move?

Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.