Bardell Real Estate Logo
Real Estate Market report- July 2023

Real Estate Market report- July 2023

by | Aug 30, 2023 | Blog, Buyers, Homeowners, Homes, Villas and Condos, News, Real Estate News, Renters, Sellers

Real Estate Market report- July 2023

July Home Sale

 

July’s interest rate was recorded at 6.8%, up slightly from 6.7% in June. This is the second-highest interest rate in Central Florida in 20 years. October 2022 had the highest interest rate in 20 years at 7.0%

    • In ORRA’s new survey of Orlando REALTORS, 43% of respondents said that rising interest rates are the biggest challenge facing buyers, causing some buyers to wait out purchasing homes right now or look at lower price points.
  • Overall sales fell 8.7% from June to July. There were 2,852 sales in July, down from 3,124 sales in June. Sales in July 2023 were also 13.8% lower than July 2022, when there were 3,309 sales.
  • Inventory for July was recorded at 5,720, up 5.0% from June when inventory was recorded at 5,450.
    • Low inventory was cited as the second biggest issue facing buyers in ORRA’s new survey.
  • The median home price for July was recorded at $380,000, down from $385,000 in June. This is the first month this year that median home price has fallen.
  • Median home price in July 2023 was extremely close to July 2022, when it was recorded at $380,900.
  • New listings fell 7.8% from June to July, with 3,413 new homes on the market in July, compared to 3,703 in June.
  • Homes spent an average of 39 days on the market (DOM) in July, down from 41 days in June. This is still 85.7% higher than July 2022 when homes spent an average of just 21 days on the market.
    • Last year, 63% of Orlando REALTORS said clients were selling their homes in 10 days or less. This year, only 34% said clients are selling their homes in 10 days or less.
  • “Approaching the end of summer with interest rates at nearly their highest level in 20 years, we are seeing an impact on both buyers and sellers,” said Lisa Hill, Orlando Regional REALTOR® Association President. “More homeowners are being locked into ‘golden handcuffs’ – where they’re choosing to stay in their current homes to keep their low mortgage rates, which could be 3% or lower – and more buyers are choosing to wait in hopes that rates go down.”

Market Snapshot

  • Interest rates increased from 6.7% in June to 6.8% in July. This is 27.7% higher than July 2022 when interest rates were 5.4%.
  • Pending sales fell, with 3,964 in June and 3,808 in July.
  • 25 distressed homes (bank-owned properties and short sales) accounted for 0.9% of all home sales in July. That represents a 10.7% decrease from June, when 28 distressed homes sold. 
How Your Agent Prepares a Walk-Through Before the Open House

How Your Agent Prepares a Walk-Through Before the Open House

by | Aug 9, 2023 | Blog, Homeowners, News, Real Estate News, Sellers

How Your Agent Prepares a Walk-Through Before the Open House

How Your Agent Prepares a Walk-Through Before the Open House

Before debuting an open house to attract prospective buyers or their agents, it’s essential to have a walk-through with your agent. Preparing your home to make it shine when potential buyers arrive at your front door is crucial. Your agent will play a key role in this process by touring your house and providing you with valuable advice on specific actions that need to be taken to ensure success.

What agents look for in a walk-through

The primary objective of a walk-through is to collaborate with your agent in identifying the key areas to address in order to sell your home quickly and at a premium price. Typically, the walk-through involves a comprehensive tour of your property, inside and out, with a focus on every detail and aspect of the home. Together, you and your agent will devise a plan to enhance the space before potential buyers visit.

It’s essential to remain open to feedback during this process, even if some of it may not be entirely positive. Embracing constructive criticism is crucial as it helps you attract potential buyers. Agents are trained to evaluate a property from a buyer’s perspective, offering valuable insights.

Throughout the walk-through, your agent will meticulously examine the property, identifying any potential turn-offs for buyers. This can encompass various aspects, from suggesting major repairs to assessing the arrangement of furniture or the appearance of the interior, including the inside of your pantry.

What needs work

Following the initial walk-through, your agent will be prepared to have a discussion with you about the necessary steps to get your home ready for an open house.

Certain homes may necessitate significant work, such as flooring upgrades, fixing a leaky roof, or addressing structural issues. There are two options: either temporarily taking the house off the market or postponing the open house. This gives the seller enough time to make necessary repairs before showing the property to potential buyers.

For an average house, dedicating a week or two to address minor repairs and upgrades might be necessary. Even simple fixes like securing a loose railing or banister, which may cost just a few dollars, can significantly impact a potential buyer’s perception. A small issue left unattended could lead a first-time buyer to assume that the overall construction of the home is subpar and unsafe, potentially leading them to believe that substantial repairs amounting to thousands of dollars are needed.Taking care of these minor details significantly impacts a buyer’s impression and boosts the chances of a successful sale.

During your discussions, you’ll also address functional obsolescence, which refers to elements in the home that are still functional but outdated. An example of a home that recently sold, which had an original push-button electric stove and a large floating exhaust vent. Although the stove was still operational, potential buyers immediately recognized the need for a modern replacement. It’s essential for you to assess if there are any similar items in your home that could be easily improved with a modern upgrade. Upgrades can enhance the overall appeal of your property and make it more attractive to prospective buyers.

Lastly, you will address all the necessary cleaning tasks that need to be completed. Thoroughly cleaning key areas like kitchens and bathrooms, as they hold critical importance for potential buyers. Your agent will likely provide valuable suggestions on which specific areas of your home require significant cleaning attention. Making sure these crucial areas are looking top-notch will definitely leave a fantastic impression on potential buyers that’ll stick with them!

Developing a marketing strategy

After identifying the necessary tasks, your agent will devise a marketing strategy aimed at selling your home and generating buzz for your open house event.

After conducting a walk-through with a seller, discussions will take place regarding any specific characteristics of the home that could appeal to a particular type of buyer. The focus will be on strategizing the marketing efforts to include that buyer profile.

Due to the uniqueness of your home, a similar approach will be employed by your agent. This involves identifying your target market and staging your home in a way that attracts that specific type of buyer. The entire process may span several days, during which your agent will be dedicated to marketing efforts until potential buyers and their agents arrive at your doorstep.

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.

 

10 Steps to Purchasing a New-Construction House

10 Steps to Purchasing a New-Construction House

by | Aug 8, 2023 | Blog, Buyers, Homeowners, News, Real Estate News

10 Steps to Purchasing a New-Construction House

10 Steps to Purchasing a New-Construction House

Purchasing most things in life is usually straightforward – just add them to your cart and pay with a credit card. However, when it comes to buying a home, the process becomes understandably more intricate. This complexity is particularly true if you’re looking to purchase a brand-new home, as it involves a distinct set of steps and considerations.

While the process of buying a new-construction home shares similarities with purchasing an existing house, there are several notable distinctions. With new-construction homes now accounting for approximately one-third of the U.S. housing inventory, it has become an attractive option that many prospective buyers will undoubtedly contemplate.

To provide you with a glimpse of what lies ahead, let’s explore the step-by-step process of buying a new-construction home, along with valuable advice to ensure a seamless experience from start to finish.

1. Set a budget

Before diving into the process of purchasing a new-construction home, the initial and crucial step for any prospective homebuyer is to assess their affordability. This becomes particularly significant as new-construction homes generally come with a higher upfront cost, with the median price currently standing at $493,000.

Don Turner, the regional sales director of new homes at Realtor.com, emphasizes the importance of avoiding the allure of a home that surpasses both your needs and budget. He advises prospective buyers to be mindful of their income relative to their spending habits and establish clear guidelines to steer clear of this situation.

2. Get preapproved for a mortgage

Obtaining preapproval is a wise step to ascertain your purchasing capacity and effectively communicate this information to the builders you are exploring. Securing preapproval can be accomplished through various methods. One option is to apply online, where you can discover the loan amount you qualify for based on your present income and debt.

During the lending process, lenders will request financial documentation from you. Therefore, it’s essential to be prepared with your bank records and pay stubs ready to go. Having these documents readily available will help expedite the process and ensure a smoother experience.

It’s important to remember that obtaining preapproval from a lender doesn’t obligate you to proceed with them. On the contrary, it is highly recommended to explore different options and compare preapproval offers from at least three lenders. This way, you can ensure you are securing the most favorable terms and the best overall deal for your situation.

3. Choose a location

Selecting the ideal community and location for your new-construction home is a critical aspect of the process, as not every community will be a perfect fit for every buyer. It’s essential to carefully consider your preferences and needs to ensure you find a community that aligns perfectly with your lifestyle and requirements.

For instance, if you have a young family, your criteria for a new home will undoubtedly differ from those of a homebuyer in search of a 55+ neighborhood with HOA activities tailored for retirees. Each buyer’s preferences and priorities will shape their quest for the ideal home and community.

Landers proposes a helpful exercise called the “what matters most” ranking, which assists in refining your area search. In this exercise, prioritize the following factors from one to twelve based on their significance to you, and utilize the list as a guiding reference for making informed location decisions:

  1. Travel/commute times
  2. Distance to family/friends
  3. School district quality/higher education
  4. Access to nature/parks/lakes
  5. Availability of community clubhouse/social areas
  6. Walking trails/sidewalks
  7. Outdoor recreation (e.g., tennis/pickleball courts, playgrounds)
  8. Neighborhood pool
  9. Fitness center
  10. Pet friendliness
  11. Proximity to shopping/dining/entertainment
  12. Nearby health care/medical facilities

4. Hire a real estate agent

While it’s technically possible to acquire a new-construction home without representation, having the right real estate agent can prove to be an invaluable asset. They can provide you with crucial guidance and support, helping you identify the perfect fit in a new home and community that aligns with your preferences and needs.

It’s essential to remember that the on-site agent you encounter at a new-construction office represents the builder’s interests. As a savvy homebuyer, it’s prudent to engage your own agent to join the process. Having your agent by your side will enable you to negotiate effectively and ensure you have proper protection throughout the transaction, safeguarding your best interests.

An excellent buyer’s agent possesses the ability to thoroughly review contracts before you commit, ensuring you don’t unknowingly agree to terms that solely favor the builder. Additionally, in numerous instances, the builder will cover your agent’s commission as an expression of gratitude for directing your business to them. This arrangement can be highly advantageous, providing you with professional guidance and protection throughout the buying process at no direct cost to you.

Landers advises that before hiring an agent, it’s essential to conduct thorough due diligence.

5. Shop home builders

Just like when selecting a real estate agent, it’s crucial to find a homebuilder with a strong reputation. Take the time to review their online feedback and testimonials. Additionally, closely examine the floor plans they provide. Ensuring that the builder offers floor plans that align with your family’s current requirements and future growth needs is essential for making a wise decision.

There are other important factors to consider as well. Given that finances often play a significant role for new-construction buyers, it’s essential to thoroughly compare and contrast the builder incentives that are being offered. Taking the time to evaluate these incentives will help you make a well-informed decision that aligns with your financial goals and priorities.

It’s advantageous to find a builder that provides buyer incentives, such as special financing deals or assistance with closing costs. Additionally, if you come across a builder offering complimentary upgrades in the home, such as upgraded cabinets, appliances, or improved flooring, these perks can be significant wins for the customer.

Consider posing the following questions as well:

  • What are the HOA dues? Are they monthly or annual? What do they cover as far as amenities, activities, and programs?
  • Can guests use the community pool, fitness center, and other amenities?
  • What is the community pet policy?
  • Do you offer a new home warranty? If so, what does it cover?
  • What are the average utility bills and other associated costs of home ownership in the community?

6. Decide whether to build or buy move-in ready

Spec homes are constructed, or at least initiated, without having a buyer contract in place and can be found in different stages of construction. When the home is completed or nearly finished, it may also be referred to as “move-in ready” or “quick move-in” (QMI), usually available for occupancy within three months. However, it’s worth noting that each builder may have its own interpretation of what “quick” entails.

“Build from scratch” entails commencing construction from the ground up after you finalize the contract. Generally, the process of building a home from scratch takes around 6.5 months, though this timeline can significantly vary depending on the builder. To gain clarity, it is essential to inquire about the specific timeline from the builder you are considering. Buyers who can patiently wait during this period may enjoy the advantage of having more control over various design decisions. This control may encompass aspects like the home’s layout, finishes, and other personalized details, making it a potentially rewarding choice for those seeking a customized living space.

To avoid any confusion, it’s crucial for homebuyers to recognize the significant distinction between a build-from-scratch home offered by a production builder in a planned community and a “custom home.” In the case of a custom home, you take on full responsibility for every aspect, which includes purchasing the land, engaging an architect, obtaining construction loans, handling city permits, and more. Building a truly custom home can be a lengthier process, sometimes taking up to two years to complete due to the extensive level of personalization involved.

7. Sign a builder contract

Based on the type of home you select, the subsequent step involves signing a contract. If you opt for a move-in-ready home, the sales process will resemble a typical real estate transaction for an existing house. You make a down payment, move in, and commence with monthly mortgage payments.

On the other hand, if you lean towards a build-from-scratch situation, the financing process will differ. When you sign a builder contract, there will likely be a required deposit, typically ranging from $1,000 to $2,000. The good news is that “most builders use this deposit as a credit toward the purchase price of the home,” according to Turner.

Within the contract, the projected completion timeline should be specified. This is also an opportune moment to seek clarification on how unforeseen issues during construction will be handled. For instance, what recourse do you have if supply chain delays impact the construction schedule, and how will any changes be communicated to you?

To ensure you’re protected, it’s advisable to have your real estate agent review the contract. Additionally, seeking legal counsel to review the agreement and all addendums before signing can provide an added layer of protection.

8. Prepare to move in

If you plan to sell your current home before moving into your new build, it’s essential to seek advice from your real estate agent regarding the optimal timing to put your current home on the market. Waiting too long might result in a situation with dual mortgages, so proper planning is crucial. However, in the event that you sell your current home before your new-construction home is completed, you may need to arrange for interim housing and storage for your belongings during the transition. This aspect adds an additional consideration to the purchase of a new-construction home.

Furthermore, prospective buyers should refrain from making significant purchases like buying new furniture or a car during the interim period while their home is being built. Such actions can negatively impact their credit score and potentially jeopardize their mortgage approval. Practicing financial caution during this time is essential to ensure a smooth and successful home buying process.

9. Have your new home inspected, and do a final walk-through

Despite something being new, it doesn’t guarantee absolute perfection. Even if your new-construction home comes with a home warranty, it remains essential to conduct an inspection before officially taking ownership.

Throughout the construction process, new-construction homes undergo inspections by local municipalities, and before move-in, these groups provide a final certificate of occupancy (CO) to ensure compliance with regulations. However, it’s advisable to hire your own home inspector to ensure that everything meets your standards.

Before moving in, you should also be granted the opportunity to perform a final walk-through of your home. During this walk-through, you can create a “punch list” of items for the builder to address, typically consisting of minor issues such as paint drips and scuffs on floor tiles, ensuring that your new home is in pristine condition.

10. Close on your mortgage and move in

Once your new-construction home is finally complete, the builder will likely be eager to close the deal and have you move in swiftly. This is one reason why many builders prefer when homebuyers work with their preferred lenders; it helps ensure a smooth and timely transfer of ownership.

When you receive the go-ahead to proceed, be prepared to act promptly. At that stage, you’ll be expected to make the full down payment (minus your initial deposit) and commence making monthly mortgage payments to your lender moving forward. Being prepared and responsive will facilitate a seamless transition into your new home.

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.

 

10 Tips For Selecting the Best Property Manager

10 Tips For Selecting the Best Property Manager

by | Aug 4, 2023 | Blog, Homeowners, News, Property Management, Real Estate News, Renters

10 Tips For Selecting the Best Property Manager

10 Tips For Selecting the Best Property Manager

 

Owning rental property can be a pretty cool opportunity for savvy investors, but it also means taking on the landlord gig. Some folks love the challenge, but let’s be real, managing tenants isn’t everyone’s cup of tea. If you’re not up for it, no worries! You can always think about hiring a property manager to handle the nitty-gritty. A good one will keep your tenants happy, handle the cash flow like a pro, and make sure your property stays in top-notch condition. But beware, a bad property manager can really mess things up, wasting your time and money. They might bungle inspections, let rent go unpaid, and tank your retention rates.

So, how do you find the right manager for your properties? No worries, we got you covered with our top 10 tips to score the best property manager around. Keep reading and take the stress out of managing your rental business!

What is a Property Manager?

Before you make your choice, it’s essential to know what a property manager actually does. These guys can be either individuals or firms who handle the day-to-day rental stuff for a fee. Basically, they step in when the owner can’t or just doesn’t want to deal with landlord duties. Some of their responsibilities include: 

  • Targeted Marketing
  • Applicant Screening
  • Legal Leasing Documents
  • Property Inspections
  • Rent Collection
  • Basic Accounting and Reports
  • Maintenance Coordination
  • Tenant Communications
  • Fair Housing and Legal Compliance

10 Tips for Selecting the Best Property Manager

Getting the right property manager on board can really elevate your investment game. But let’s face it, rental management is no walk in the park. Dealing with legal stuff, communicating with tenants, and safeguarding your property takes serious effort. The rental industry is booming, and with that, property management firms are cropping up left and right. But hold up, not all of them are top-notch. To discover the perfect fit for your needs, take a look at these tips on finding the best property manager below. Happy hunting!

  1. Do Your Research
  2. Stick with Local Expertise
  3. Prioritize Organization and Technology
  4. Interview Multiple Candidates
  5. Test Candidates with Very Specific Questions
  6. Get Referrals from Other Investors
  7. Review Local Ads
  8. Look for a Proven Track Record
  9. Only Entertain Licensed Property Managers
  10. Personal Impressions Matter

Do Your Research to Select the Best Property Manager

Thanks to modern technology, owners seeking professional property management now have a wealth of information at their fingertips. The easiest way to kick off your search is with a simple Google query. It will help you filter through the options and zero in on the property management companies that might suit your needs. Once you’ve got your shortlist, dive into each company’s website for these crucial pieces of information:

  • List of Services (tenant screening, rent collection, etc.)
  • Management Fees, Fee Schedule, and any Ala Carte Services/Fees
  • Staff and Leadership Information
  • Special Features for Owners and Tenants
  • Contact Information
  • Client Testimonials
  • Tenant Reviews

Stick with Local Expertise

When it comes to nailing property management, having a solid grasp of the local market is crucial. But we’re not just talking about checking out the competition and setting prices. The top-notch property managers boast proven local experience, which includes:

  • Applicable Laws and Licensing Requirements – In every jurisdiction, there are specific laws that oversee rental properties. These might cover things like rental licensing, inspections, or lead certification, among other requirements.
  • Market Demographics –To efficiently fill vacancies, it’s essential to know your tenant pool inside out. Are you in an area popular among students, or is it more likely to attract families? Understanding the demographics of potential tenants allows managers to target their marketing efforts strategically, ensuring maximum exposure for the property.
  • Vendor Relationships – In the world of rentals, repairs and maintenance are inevitable at some point. That’s why it’s crucial to team up with a property manager who has solid vendor relationships in place. This ensures that your property gets the attention it needs promptly, without any unnecessary delays.

Prioritize Organization and Technology

Being a property manager means handling a ton of communication and record-keeping. That’s why it’s crucial to pick a property manager who’s equipped with the right processes and technology to handle the administrative demands smoothly. The best ones are super organized, efficient, and prefer using electronic or “paperless” systems. It’s not just about being tech-savvy, but also about ensuring security and accuracy. So, owners can breathe easy when they find a company that stays up-to-date with technology. It’s a massive plus!

Interview Multiple Candidates

Aside from reviewing their website, asking some questions is equally important. When searching for the best property manager, gathering as much information as possible is the key. After all, you want to find a property manager you feel comfortable entrusting your business with. Take the initiative to reach out to the companies you consider as potential contenders and ask them the following questions:

  • How long have you been in business?
  • Will the company allow you to review key documents such as the Property Management Agreement and lease?
  • How many employees does the company have?
  • What is or is not included in the monthly management fee?
  • Is the management fee based on rent collected or rent due?
  • How many properties does each manager typically oversee at a time?
  • What are the standard applicant requirements and basic screening process?
  • How do you perform property inspections?
  • What are your practices for returning security deposits?
  • Do you have an online portal for tenants and owners?
  • Do I receive monthly and annual financial statements?

Asking these questions to a few different candidates will give you a better sense of who would be the ideal property manager for you. Keep an eye on how responsive they are to your inquiries during this process. If they don’t prioritize your questions as a prospective client, chances are their service might not be the best if you become their client. Responsiveness is a good indicator of how they value their customers, so pay attention to it while making your decision.

Test Candidates with Very Specific Questions

The perfect property manager is someone with the right balance of flexibility and experience to handle a wide array of property issues. To evaluate candidates, ask them specific questions that gauge their skill set. Some talking points to consider may include:

  • The process for after-hours emergencies
  • Marketing strategies to limit vacancy
  • How they would deal with sudden or severe property damage
  • What would happen if a tenant needs to be evicted

Get Referrals from Other Investors

The best property managers are often those referred by friends and colleagues. Don’t hesitate to ask anyone you know in the real estate or property management industry if they can recommend a good fit for you. Word of mouth remains a powerful way to find a quality management company. If a property management company has a bad reputation, chances are it will spread among industry professionals.

In addition to seeking referrals, it’s essential to do your homework. Check with your state’s Real Estate Commission and the Better Business Bureau to ensure that the prospective property manager is licensed and has no complaints against them. This way, you can make a well-informed decision and find a reliable manager for your property.

Review Local Ads

A lot of local property managers rely on local advertisements to promote their vacancies. To find sample rental ads, you can explore newspapers, online classifieds, and websites like Craigslist. Reputable companies usually have a website that lists their available properties, which offers an excellent chance to assess the quality of their rental ads.

The top-notch rental ads are featured on various platforms to get maximum exposure and often include:

  • A Dynamic Unit Description – The perfect unit descriptions strike a balance between accurate representation and captivating details that catch the reader’s eye. Be cautious of any descriptions with grammatical errors or excessive exaggeration that seems unrealistic, as these could be red flags to watch out for.
  • Professional Quality Photos –In the world of property listings, pictures are worth a thousand words. As prospective tenants scroll through various listings, grabbing their attention becomes crucial. High-quality pictures have the power to entice viewers to click on the listing and spark their curiosity to learn more.
  • The Option for Virtual Tours – Virtual tours have become increasingly popular during the COVID-19 pandemic, but their benefits go way beyond just coping with lockdown restrictions. These tours offer applicants the opportunity to explore the property’s full potential from anywhere and at any time, all conveniently online. It’s a game-changer that allows for a seamless and flexible viewing experience.

Look for a Proven Track Record

Empty units can seriously dent owners’ profits and miss out on potential opportunities. To avoid this, seek a property management firm with a solid track record. While it’s essential to consider the average time it takes for a company to fill a unit, remember that speedy filling is only beneficial if the tenants are well-qualified and stable. To get a clearer picture, don’t hesitate to inquire about the company’s eviction rate in addition to their vacancy-filling speed. This will help you make a more informed decision about the reliability of their tenant selection process.

Only Entertain Licensed Property Managers

In the majority of states, property management companies are required to hold a real estate broker’s license or management license. Licensed property managers have completed an approved property management course and successfully passed a state licensing exam. This extra layer of knowledge equips them to assist owners in navigating their business needs more effectively. It’s a reassuring factor for owners to know they’re working with professionals who have met the necessary qualifications.

Personal Impressions Matter

In addition to experience and management approach, establishing a strong professional rapport is crucial for a successful partnership. Take the time to get to know potential managers on a personal level by asking about their lives, interests, and any other details that may influence how they approach their job. Since owners and managers work closely together, effective communication and collaboration are essential. If your communication styles don’t align, there’s a risk of not being on the same page when it comes to important matters. Building a good working relationship ensures smoother interactions and a more harmonious management experience.

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

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.

 

6 Signs You Should Sell Your Home

6 Signs You Should Sell Your Home

by | Aug 2, 2023 | Blog, Homeowners, Homes, Villas and Condos, News, Real Estate News, Sellers

6 Signs You Should Sell Your Home

6 Signs You Should Sell Your Home

At some point, you might find yourself contemplating: Is it time to consider selling my house?

 

Based on data from the National Association of Realtors®, homeowners typically reside in a house for approximately ten years before deciding to sell. Does this duration strike you as surprisingly brief or excessively lengthy? In reality, the length of time varies significantly among individuals, primarily influenced by their specific reasons for selling.

 

The choice to sell your home can stem from various reasons. It might be a well-pondered decision you’ve contemplated for a considerable duration, or it could be a spontaneous choice that emerged in the spur of the moment.

 

A swift decision to sell a home may arise from a sudden defining event like a transfer, death, or divorce. Conversely, in many instances, the process is more gradual, influenced by various factors such as children leaving the nest, a longing to be nearer to family, retirement plans, or the aspiration to reside in a smaller, larger, newer, or different neighborhood. Typically, this type of decision undergoes a gestation period lasting around two to four years.

 

Numerous common reasons, both financial and emotional, drive us to sell our current homes. Sometimes, these reasons can catch us by surprise. If you’re contemplating whether it’s the right time to list your house, here are some unmistakable signs indicating it’s time to sell, even if you haven’t reached the ten-year mark.

 

It’s a seller’s market

Let’s begin with one of the most evident motives for selling: It’s currently a seller’s market, offering you the opportunity to reap a substantial profit from your property. You need to gauge the key indicators of a strong seller’s market.

 

Here are a few indicators to watch for: First, observe an uptick in the price per square foot for real estate in your area. Second, notice a decrease in the amount of time properties stay on the market. Third, keep an eye on the increased brokerage activity in your neighborhood. If your location is particularly in demand, you might even receive a letter or a visit from a listing agent eager to assist you in capitalizing on the current market momentum.

 

If any of these conditions hold true in your area, it might be worth considering selling your property.

 

Local homes are selling for a lot

To monitor comparable home prices in your neighborhood, make sure to check online real estate listings and pay attention to the “recently sold” flyers you receive in your mailbox.

 

If other houses on your street with the same bedroom/bathroom count as yours are selling for a price that would leave you more than content, it could be the right moment to consider moving on.

Another indicator of a thriving home sales market is the correlation between asking prices and sale prices. In a seller’s market, if prospective buyers swiftly make offers, matching or even exceeding the sellers’ asking prices, it becomes evident. As a result, you may receive an offer from a buyer that you simply can’t turn down.

 

You’re financially stressed

Not all individuals sell their real estate solely to boost their financial reserves. Some homeowners sell their property because they underestimated their ongoing housing costs and seek relief from their mortgage burden. Others choose to capitalize on their equity for various purposes beyond financial gain.

 

if your property taxes or mortgage payments have become overwhelming, the most viable solution could be to sell your current home and seek a more affordable option. Opting to sell is a better alternative than grappling with a burdensome mortgage loan, which could potentially lead to the risk of foreclosure.

In order to ensure financial ease, it is recommended that your monthly housing expenses, encompassing mortgage interest, principal, property taxes, homeowners insurance, and any applicable HOA or condo fees, should not surpass 28% of your gross monthly income.

Prior to selling your home with the aim of reducing your monthly living expenses, it is crucial to ensure that you can find another home available for rent or purchase within your budget. Additionally, verify that you meet the qualifications for a loan at the prevailing interest rates when you decide to make the transition.

 

You’ve outgrown your home

The starter home that once suited you while anticipating your first child may no longer be suitable now that you have three preteens and pets. Although it may be bittersweet to part with the memories you’ve created in your current home, if it is causing you more stress than comfort, Shayanfekr suggests it might be time to take the leap and consider selling the property.

 

Other life changes, such as death, serious illness, or divorce, can also be significant factors influencing the decision to sell a home. These emotionally challenging experiences may create a strong need for change. Another factor to consider is relocation due to a new job opportunity.

 

You’re tired of home maintenance

On average, homeowners spend approximately $2,000 per year on maintenance services. This expense covers scheduled services like landscaping, snow removal, septic service, private trash and recycling, as well as housecleaning—excluding any unexpected repair costs.

Tired of witnessing these payments gradually draining your bank account? You have the option to sell your current property and consider purchasing lower-maintenance real estate, like a condo or new construction.

Alternatively, you might want to explore the possibility of renting, where a landlord can handle concerns such as leaky pipes and other property-related hassles, allowing you to experience a more carefree living situation.

 

You’ve built up enough home equity

Selling your home too soon, especially if you have a mortgage, might not allow you to build substantial equity beyond the initial down payment. During the initial stages, a significant portion of your mortgage payments mainly goes towards covering interest expenses.

In reality, unless the housing market experiences a significant boom (as mentioned earlier), selling your home could lead to a financial loss. In some cases, you might even end up owing more than what you can acquire from the sale, considering the closing costs involved.

Keep in mind that selling your home isn’t cost-free. You’ll need to allocate funds to cover various expenses related to hiring a real estate agent, the closing process, and, naturally, the purchase of another home.

 

Staying in your current home for at least five years, unless you have an urgent need to move. Rapidly selling can send potential buyers a negative message.

Buyers become uneasy when it seems like you’re selling too soon. They may wonder what’s wrong with the house or why you’re leaving so quickly. It can lead them to imagine various negative scenarios, like potential structural issues, troublesome neighbors, or other concerning issues.

Another reason to reconsider selling is if you don’t meet the qualifications to avoid paying capital gains tax on your profit from the sale. Typically, you can exclude the gain if you’ve owned and lived in the home for at least two of the past five years. Selling before the two-year mark, without qualifying for any exceptions, could result in a costly mistake. Paying capital gains tax might significantly reduce the equity you originally planned to have from the sale.

But beware of snap decisions

Certainly, there are no guarantees that selling will be the best long-term option for you. Take your time to carefully consider whether selling is the right decision for you, and collaborate with your real estate agent to analyze the local home sales market before setting the price for your home. Underpricing could lead to a buyer snagging it for too cheaply, while overpricing may deter the right buyer from considering it.

Ultimately, selling your home is a deeply personal decision. Prioritize what will help you live a fulfilling life, even if it’s not necessarily “happily ever after,” but rather “happily for now.”

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.

 

Real Estate Agent vs. Broker vs. Realtor

Real Estate Agent vs. Broker vs. Realtor

by | Aug 1, 2023 | Blog, Buyers, Homeowners, News, Real Estate News, Sellers

Real Estate Agent vs. Broker vs. Realtor

Real Estate Agent vs. Broker vs. Realtor

If you’re looking to purchase or sell a home, having some assistance is essential. But who should you enlist for the job? Professionals in the real estate industry are known by different titles, such as real estate agent, real estate broker, or Realtor®.

What sets apart a Realtor, real estate agent, and broker?

You might hear these titles being thrown around in the real estate world, and while they’re sometimes used interchangeably, there are actually some important differences and specific requirements for each one.

Let’s break it down and see what these titles really mean.

Difference between a real estate agent and broker: What is a real estate agent?

A real estate agent is a licensed professional who specializes in helping individuals with buying, selling, or renting various types of housing and real estate. They are well-equipped to handle all your housing needs.

To obtain the real estate license, states typically have education prerequisites that involve prelicensing training. The specific number of training hours required can vary considerably depending on the jurisdiction. For instance, in Florida, aspiring real estate agents must complete 63 hours of prelicensing training, while in California, they need to undergo 135 hours of license coursework.

After completing the required training, aspiring agents must take a written licensing exam. This exam is usually split into two parts: the first part covers federal real estate laws and general real estate principles, while the second part focuses on state-specific laws.

Once they successfully pass their exam, they obtain their license and earn the title of a “real estate agent.” Many new agents choose to join a brokerage at this point, where they can start assisting home buyers, sellers, and renters, and engage in various real estate transactions.

 

Broker vs. Realtor, explained

A real estate broker is an individual who has undergone additional education beyond the agent level, as mandated by state laws, and has successfully passed a broker’s license exam.

Just like real estate agent exams, each state establishes its own broker education and exam prerequisites. The supplementary coursework delves deeper into subjects such as ethics, contracts, taxes, and insurance compared to what is covered in a real estate agent prelicensing course.

Aspiring brokers also receive instruction on real estate legal matters and how the law pertains to running a brokerage, real estate investments, construction, and property management. They gain comprehensive knowledge in these areas to become well-rounded professionals in the field.

Brokers possess extensive knowledge of the real estate industry.

To be eligible for the broker’s exam and obtain licensure, real estate agents must have a certain level of experience under their belt, usually around three years as a licensed real estate agent.

In the realm of real estate brokers, three distinct types exist, each with subtle differences in the roles they undertake:

 

  • Principal/designated broker: Every real estate firm is led by a principal or designated broker. This individual holds the responsibility of supervising all licensed real estate agents within the firm and ensuring their operations align with state and national real estate laws. Similar to real estate agents, principal brokers earn their income through commissions, taking a percentage of the commissions earned by the sales agents they oversee (though some may receive an annual base salary as well).
  • Managing broker:The principal or designated broker assumes the role of overseeing the office’s day-to-day operations and transactions, often taking a hands-on approach in tasks like agent recruitment, new agent training, and administrative staff management. In certain cases, they may also serve as managing brokers, adding to their responsibilities and involvement in the brokerage’s activities.
  • Associate broker: This real estate professional, also known as a broker associate, broker-salesperson, or affiliate broker, holds a broker’s license but operates under the guidance of a managing broker. Unlike a principal broker, this individual is usually not tasked with supervising other agents within the brokerage.

What is a Realtor?

To earn the esteemed title of Realtor—a licensed agent recognized with high regard in the real estate industry—an agent must become a member of the National Association of Realtors®.

By becoming a member, an individual commits to upholding the standards and code of ethics set by the association. In essence, the NAR holds Realtors to a higher standard. Additionally, membership in the NAR grants access to valuable real estate market data, transaction management services, and various other benefits.

 

Listing agent

A listing agent is a real estate professional who acts on behalf of a home seller. These agents assist clients with an array of tasks related to selling their homes, such as determining the appropriate pricing, offering advice on home improvements or staging, marketing the property on listing services, hosting open houses, arranging showings for potential buyers, negotiating with buyers, and overseeing the home inspection process and closing procedures. They play a crucial role in ensuring a smooth and successful selling experience for their clients.

Buyer’s agent

As their name suggests, buyer’s agents exclusively advocate for home buyers and provide comprehensive assistance throughout the entire home-buying process. Their role includes guiding clients through the housing market, identifying the perfect home, skillfully negotiating offers, and offering recommendations for other professionals like mortgage brokers, real estate attorneys, and settlement companies. Additionally, they adeptly handle any challenges that may arise during the process, such as issues with home inspections or appraisals. Their focus is entirely on ensuring a smooth and successful home-buying journey for their clients.

Good news for home buyers! They need not fret about the cost of hiring a buyer’s agent. Why? Well, it’s because the seller typically covers the commission for both the seller’s agent and the buyer’s agent from the listing agent’s fee. So, buyers can benefit from the expertise and support of a buyer’s agent without having to worry about any additional expenses.

 

Rental agent

Aside from assisting individuals with buying and selling homes, many real estate professionals also help consumers find rental properties. However, the scope of their services can vary depending on the location, such as whether it’s a bustling city or a small town, and the specific agent’s practices and expertise.

At times, a rental agent will be there to assist you right from the beginning, guiding your search to identify the ideal neighborhood, apartment size, and price range, and even accompanying you to open houses. However, it’s more common that you’ll already have a lot of these preferences decided, and the agent will then provide you with listings that align with your interests.

Once you’ve made a decision on a rental property and obtained approval from the landlord or management company, your agent should assist you in reviewing and comprehending the terms of your lease agreement.

Most tenants can find a place without a real estate agent, but they forget to seek out someone who can help them understand what they’re signing when they sign a lease.

Rental agents can also work on behalf of landlords to assist them in finding tenants. However, the fees charged by an agent to a landlord vary depending on the market they operate in. In many areas, the landlord covers the cost of the real estate agent to find a suitable tenant. In contrast, in highly competitive rental markets, the tenant might be responsible for paying the real estate agent fee, often referred to as a “broker fee.” These fees can range from as low as $50 to $75 for a credit check or application, while more common rates are either one month’s rent or 15% of the annual rent for the apartment. Once you’ve finalized your rental choice and gained approval from the landlord or management company, your agent should assist you in comprehending the terms and conditions of your lease.

 

Looking for rental services in Orlando – we can help.

We work with our Owners and tenants as individuals and never under estimate what it takes to keep you happy with your choice of Management Company.

By doing our due diligence with our clients, tenants, and vendors we create a service that exceeds expectations and generates positive referrals. Click HERE to learn more and how one of our property management professionals can help you!

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.