Posts Tagged ‘advice for homebuyers’

2022 South Florida Real Estate Projections

Nationally, expect slower housing price appreciation, easing inflation and rising interest rates in 2022, according to a survey of more than 20 top U.S. economic and housing experts by the National Association of Realtors® (NAR). “Overall, survey participants believe we’ll see the housing market and broader economy normalize next year,” Yun said. “Though forecasted to rise 4%, inflation will decelerate after hefty gains in 2021, while home price increases are also expected to ease with an annual appreciation of less than 6%. Slowing price growth will partly be the consequence of interest rate hikes by the Federal Reserve.”

Fed boosts to interest rates do tend to move rates higher on longer-term loans, such as 30-year mortgages. Yun expects the 30-year fixed mortgage rate to increase to 3.5% as the Fed raises interest rates to control inflation but noted this is lower than the pre-pandemic rate of 4%.

In South Florida Home prices are projected to continue to grow, but slower than the past year. “We don’t expect to see the same price appreciation we had last year, though we don’t expect to see a decline in pricing,” said Eli Beracha, director of the Hollo School of Real Estate at Florida International University. A Realtor.com forecast predicts that South Florida housing prices may rise almost 6% over the next year, while a Zillow forecast predicts that home price appreciation could shoot up by 15%.

A few factors are going to cause slower price growth: more inventory as sellers try to capitalize on the hot market, new developments hitting the market and an increase in mortgage interest rates. Demand from foreign and out-of-state buyers will continue to drive South Florida’s housing market, but experts also expect new inventory to alleviate some of the pressure that has been fueling the pandemic-era housing boom.

Experts say the market will still favor sellers, as demand and limited inventory will keep the balance in their favor. Bidding wars and multiple offers on homes will probably still be a common.

The supply chain issues, and lack of labor will continue to lead to increased construction costs and thus higher prices for buyers.

Filed under: 2022 Real Estate, Blog, Boca Raton real estate, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, House Closings, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, South Florida Real Estate by Kim Bregman
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“Buyer Beware” of Newly Renovated Homes

‘Renovate’, according to the Merriam-Webster Dictionary means “ renew, restore, refresh, and rejuvenate all mean to make like new.” When the phrase “completely remodeled or renovated” is used in the description of a listing, many homebuyers expect the entire house to be completely updated. But in residential real estate, a house advertised as “completely remodeled” may have several big-ticket items, such as the roof, HVAC system, appliances, pool, and windows that are either original or close end of their useful life.

This is particularly true with investor “Fix and Flips”. Buyers may find a newly flipped home more appealing because much of it feels new – but not all flips are the same. In any given price range, every property you’re going to look at will have its pros and cons. You certainly don’t need to avoid properties that are being flipped, but there are some things to watch out for if you’re looking at one.

You can easily tell if the home is a flip by looking at the property records. If the home is back on the market just a few months after being purchased by a new owner, odds are it’s a flip. Flipped houses may seem up-to-date on the surface, but shiny new finishes can sometimes mask shoddy work. If you’re looking at a property that is being flipped, you’ll want to be sure to get it thoroughly inspected before you close and set aside money for any problems that may crop up because of renovations that were done on a tight budget and by an unlicensed contractor.

“Let the buyer beware” or “Caveat Emptor” exists for a reason. Home inspections do not necessary note the useful life left on roof, appliances and ACs since they are only checking to ensure that they are in “working order and free of defects”. With that in mind, here’s what to look for when a home is described as “completely remodeled” or represented as “new”.

Electrical:

The standard for household power used to be 60 amps. Today modern homes need as much as 200 amps to run all the electrical needs. High-definition televisions, computers, air conditioners, generators, and home automation devices require lots of power to run. Have a home inspector check the entry cable coming into the house and the electrical panel. If the house has original or outdated wiring, consider upgrading for safety and function purposes.

Electrical outlets all under the electrical upgrade category but it’s important to pay close attention to the electrical outlets in a home. We still see the old-fashioned 2 prong outlets in older homes. These older outlets do not have the ground wires to protect people and electrical devices in case of a fault. Today’s modern houses should have the 3 prong outlets for safety and function purposes. In kitchen, bathrooms, and exterior locations, look for GFCI outlets. These outlets protect against electrical shock. They have a test and reset button. GFCI’s are now code in all new construction.

Roof:

Depending on the size of a house and the style of shingles, a new roof can cost between $50-$100 per square foot of roof or more. The age of a roof is a very important consideration when buying a house. Your Exclusive Buyer Agent will find out from the Seller the age of the roof or will run a permit search in advance of writing an offer. If you move ahead with the purchase of the home, make sure your home inspector gives you an estimate on the remaining life of the roof not just how old it is.

. GFCI’s are now code in all new construction.

Water Heater & HVAC:

Most water heaters and AC units have an 8- to 12-year lifespan. If the heater is a high-quality water heater, it may last longer. Take a picture of the HVAC label and Google it to determine the age. If the unit has been well maintained, there will be a label from an HVAC company with service dates. Again, this can be done when you are touring a home. If you decide to purchase a house and schedule a home inspection, the inspector will confirm the age and condition of the HVAC unit and water heater.

Plumbing:

Plumbing problems can be very expensive. When you are touring a house that you like, turn on the faucets to check pressure. Look under sinks for signs of water issues. Look up at the ceiling to see if there are any stains. You can’t always see a plumbing problem but it’s a good idea to ask the seller if they have a record of plumbing maintenance, past leaks or insurance claims.

Foundation:

Look at the house exterior for signs of moisture or cracks. Examine the landscaping to see how well the yard is graded. Water should be moving away from the house, not toward the foundation. Again, this advice is for homebuyers as they tour a property of interest. Does the home have gutters directing the water way from the property?

General Warning Signs:

Seller has a spotty memory ….
Or says things like, “I haven’t lived here long.”
Offers no real estate disclosure form
New paint, tile, or flooring here and there

Landlords, flippers, and rehabbers often claim they don’t know a property well because they haven’t lived there — but all of them know a building’s ins and outs better than the buyer, especially if they have done work to the property.

Almost all states have a disclosure form where sellers address a property’s age and condition; its water source; the nature of its sanitary sewer system; and any structural defects, as well as matters such as lead paint or termites.

Florida, has a “Caveat Emptor” or “Buyer Beware” rule, which still requires the seller or seller’s agent to disclose anything that impacts the buyer’s health or safety but only if asked. In the case of a transactional agent, only if they have asked the Seller to tell them. There is no legal obligation to fill out a Sellers Disclosure Form and many Transactional Brokerages have a policy to NOT provide one.

What To Do:

Read the home inspector’s report carefully, including between the lines when the inspector uses phrases like, “a lot of issues” or “a major issue.” Ask your exclusive buyer agent to prod the sellers for more details. If the inspector couldn’t access certain places, ask why.
Ask for a disclosure form. Push for more answers to your questions. When a listing agent refuses to provide the standard disclosure form, I put all the questions in the form on an email and make it an Exhibit to the contract. The Seller has a legal obligation to answer questions asked directly.

Warning Sign #1: Cosmetic Cover-ups:

Fresh paint is a wonderful way to mask deficiencies. Paint can cover cracks in the walls or ceilings, mold, and water stains. New bathroom and kitchen tile hides cracks and structural damage. New carpeting is a recommended fix to cover floor tiles containing asbestos, poor sub-floors or previous leaks, but buyers likely still want to know what’s underneath.

What To Do:

Ask for receipts, permits, warranties and other documentation, such as photos taken during the renovations to authenticate that the work was done properly.

Warning Sign #2: Downplaying Problems:

Some sellers opt to move once a house reaches a certain age and requires major investment in maintenance and replacements.

Phrases like, “It’s always been that way,” “That’s not a big deal,” or “Show me a house that doesn’t have a problem.” ” It was that way when we bought it”

While these statements might be true, they can be indicators of large problems.

What To Do:

Look for signs of irregular maintenance, such as dusty air vents, old filters in the AC system, clogged gutters, and dying grass, just to name a few. Politely but firmly ask for more details, receipts, and documentation about anything the homeowner waves away.

Warning Sign #3: Camouflaging Decor

Some buyers will try to disguise things they can’t fix with whatever’s at hand. Large area rugs hide defects in flooring. Artwork hangs over wall cracks and holes, and strategically placed landscaping hides exterior foundation cracks. Acid washing a pool will delay determining the age and condition of the finish. Candles and air-fresheners can mask odors of nicotine, mold, pets, and other musty smells that a homebuyer might not detect until they move into the home. Having the music playing inside or outside the home can mask road or airport noise.

These items may be discovered at walk-through but by that time you have a loan in place and have lost weeks and waived your contingencies. It will then be a fight to secure credits at closing or close in escrow.

What To Do:

Ask to turn off the music or remove the scents and return at a later date during the inspection period.
Request that items be cleared from walls and garage to accommodate the inspector.
Don’t be rushed though the final walk-through. Is there anything that has deteriorated since the inspection? Anything that was hidden or unobservable?

Fix It, or Forget It?

It if the inspection uncovers things the seller didn’t originally disclose or explain in detail, you legally have the right to cancel the contract during the Contractual Inspection Period…..never waive this contingency. You and your agent also can negotiate for the seller to do the repairs or reduce the price so you can handle them yourself.

Filed under: Blog, Boca Raton real estate, contracts, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Home Buyer Advice, Home Buyers, home Inspections, Home Maintenance, home safety, Homebuyer Advice, Real Estate, Real Estate Investment, real estate news, South Florida Real Estate, Uncategorized, What Buyers Should Check When Buying an Older Home by Kim Bregman
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What is An Appraisal Gap and Appraisal Gap Coverage Clause?

An appraisal gap is the difference between the fair market value determined by the appraiser and the amount you agreed to pay for the home.

An abnormally high number of homes across the United States are being appraised below their agreed-upon sales prices, causing some deals to implode.With home prices soaring in recent months, buyers often pay above asking price to win bidding wars. As a result, CoreLogic estimated that about 13% of appraisals came in below the contract price in August.

A home appraisal is an evaluation and report performed by a licensed appraiser to determine a home’s fair market value. Lenders require a home appraisal to ensure the amount you agreed to pay for the home is equal to or less than the appraised value. To create a home appraisal, appraisers normally rely on factors like data from recent closed and pending sales. But since sales usually close a month or two after going under contract, rapidly increasing home values can sometimes skew appraisals that rely on home values recorded months earlier.

In today’s hot market, many prospective buyers will get into bidding wars and possibly waive the appraisal contingency or offer an appraisal guarantee up to a certain amount. In both cases, the buyer would have to come up with the difference in cash between the appraisal and the sale price, or their appraisal guarantee and the sale price.

The disparity underscores the risks buyers face in the current market, especially those stretching their dollars to win a bidding war. Mortgage lenders will typically offer only enough to cover the appraised value of a home, forcing buyers to either provide the balance, renegotiate, or terminate the deal if an appraisal comes in below the contract price.

Using An Appraisal Gap Coverage Clause:

If you want your bid to outshine the others, an appraisal gap coverage clause may be necessary. An “appraisal gap clause” is used in a sales contract to guarantee that the home buyer will cover the monetary gap between the appraisal and the sales contract if an appraisal gap becomes an issue.

The clause states how much of an appraisal gap you’re willing to cover. Since there’s no guarantee an appraisal will match the agreed-upon sales price, it’s often something sellers look for to know the offer will still stand even if the appraisal comes in a little low.

The main thing that needs to be noted is the monetary value of your appraisal gap guarantee. It’s not wise to state that you will cover an unlimited amount between the sales price and the appraised value. I recommend always putting in the maximum amount that you are willing to cover.

What Should You Do When The Appraisal Is Less Than The Offer?

You have several options when the appraisal is less than the offer including walking away from the sale, but that doesn’t work in every situation.

Here’s what to consider:

Pay The Difference

If the seller won’t negotiate to lower the purchase price, you’ll be on the hook to pay the difference unless you have an appraisal contingency in your contract. The appraisal contingency gives you a way out of the contract without losing your deposit. Without it, you must buy the home or risk losing your the money you have already put down into escrow.

Without a lower sales price, you’ll have to pay more for the home. Since lenders base your loan amount on the appraised value, you’ll need your agreed-upon down payment plus the difference between the sales price and appraised value.

What if you don’t have the cash?

Ask for gift letters from family members or leverage your investments. You may be able to use some retirement funds without paying a penalty. Talk to your 401(k) administrator or tax advisor to see what options you have. If you own other real estate, consider tapping into the equity and using the funds to cover the appraisal gap.

Renegotiate The Offer

If you have an appraisal contingency on your sales contract, you may be able to work with the seller. Start by requesting the seller to lower the price to the appraised value. This would eliminate the appraisal gap and your financial issues in buying the home.

Asking the seller to renegotiate can be risky in a seller’s market, so be careful. If the seller has a kick out clause, they could accept another offer that comes through. They still must give you the time to remove your appraisal contingency and seal the deal, but they can choose the other offer if you don’t.

Dispute The Appraisal

You can dispute the appraisal, asking for a reconsideration of value. However, this is not easy to do as you’ll need plenty of evidence to prove the appraisal is inaccurate.

You must prove one of the following:

The appraiser didn’t use appropriate comparable sales, and you have proof of more accurate options
The appraiser missed features or upgrades in the subject property
You found mistakes in the report
The appraiser only conducted a drive-by or exterior appraisal

Walk Away from the Sale

It’s not the most pleasant choice, but if you’re worried about paying more than a property is worth, sometimes walking away from the sale is the best option. If you’ve unsuccessfully renegotiated with the seller and disputed the appraisal to no avail, it may be best to look for another property.

Before you do this, talk to your attorney. If you didn’t include an appraisal contingency in your contract, you might risk your deposit. Sometimes other contingencies still help, though, especially a mortgage financing contingency.

Filed under: appraisal, appraisal gap, appraisal gap coverage clause, Blog, Boca Raton real estate, contracts, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Real Estate, real estate news, South Florida Real Estate, Uncategorized by Kim Bregman
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Caveat Emptor- Buyers Beware!

Caveat Emptor, “Let the buyer beware.” is a real estate principle that warns buyers to “beware” and do their due diligence. It is of paramount importance, for Florida real estate buyers, since the majority of real estate agents are transactional agents. When a purchase contract for property says the buyer is to take the property “as is,” the seller truly means “as is.” Under the doctrine of caveat emptor, property buyers are held responsible for inspecting the quality and condition of the land or building before the final execution of the purchase contract.

If the buyer does not exercise due diligence during the Inspection Contingency Period and fails to examine the property, then the seller is shielded from liability for any defects. Additionally, the burden of proof is on the buyer to show that the seller actively concealed a material defect.

Florida courts continue to adhere to caveat emptor, which was reaffirmed in the Florida Fourth District Court of Appeals decision for Florida Holding 4800, LLC v. Lauderhill Mall Investment.There are three exceptions to the caveat emptor doctrine in Florida, including (1) where the purchaser has been prevented from making an independent inspection of the property due to a trick or artifice, (2) where the purchaser does not have an equal opportunity to become apprised of the fact, and (3) where one of the parties attempts to disclose facts and fails to reveal the whole truth. Nonetheless, these exceptions are difficult to claim in court because the buyer has the burden of proving that the seller actively hid the material fact to sidestep any “as-is” language of a contract. Additionally, oral representations by the seller regarding the property’s condition are explicitly contradicted by any “as is” language in the written agreement. This notion rests on the buyer’s inherent ability to inspect the property and withdraw from the property agreement if the quality of the land or building does not meet their expectations.

There are two forms of representation available under a Broker license held by a real estate professional according to Florida law: the Single Agent and the Transaction Broker. These two relationships entitle the buyer or seller to different upheld duties by the real estate professional. Full disclosure applies exclusively to single agent brokers. Limited confidentiality is a transaction broker duty.

A Single Agent is defined by Florida Statutes Chapter 475, Part I as a broker who represents either the buyer or seller of real estate, but not in the same transaction. It is the highest form, providing the most confidence to the customer that the Realtor represents only the customer’s interest. In the case of an Exclusive Buyer Agent the buyer is their CLIENT and the single agent owes the buyer a fiduciary duty.

https://www.optimaproperties.com/buyer-representation/

The duties of a single agent that must be fully described and disclosed in writing to a buyer or seller in agreements for representation include the following:

Dealing honestly and fairly
Loyalty
Confidentiality
Obedience
Full disclosure
Accounting for all funds
Skill, care, and diligence in the transaction
Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing
Disclosing all known facts that materially affect the value of residential real property and are not readily observable

Disclosure of these duties must be made before or during entrance into a listing/representation agreement, or before the showing of property.

A transactional agent is defined as a real estate agent who provides limited representation to a buyer, a seller or both, in a real estate transaction, but does not represent either in a fiduciary capacity or as a single agent.

Section 475.278(1)(b), Florida Statutes, presumes that a licensee is operating as a transaction broker, unless the customer and broker establish a single agent or no brokerage relationship, in writing.

Most U.S. states now require a Sellers Disclosure Form, often called “disclosure notices,” “property disclosures,” or “property condition statements.” On these forms, sellers must advise the potential buyer of any material defect they’re aware of in the home — usually within a few days of finalizing the purchase agreement or sales contract. Filling out this form is NOT a legal requirement in Florida and many real estate transactional brokerages are taking the position that they are not going to provide a written disclosure from the Seller.

Before deciding to finalize a Contract for Sale the Buyer is provided with an Inspection Contingency Period. You are advised to include some of all the following in your due diligence.

· Conducting professional inspections of the building and its systems. This could include roof inspections, electrical inspections, HVAC inspections, WDO Inspections, and more.

· Reviewing the property’s records, including its past owners, title, deed, property survey, and other important documents. Make sure to look for past code violations, too.

· Having the property’s value professionally appraised. Your lender might require this anyway if you’re financing the property.

· Reviewing the property’s compliance with local zoning and land-use regulations.

· Having an environmental assessment conducted on the lot and the building. Are there hazardous materials in the building, like lead-based paints? You’ll also want to know if the property is in a flood zone.

· If you plan to renovate the property you’re buying, bringing in a contractor or consultant is also a smart move. You’ll want to assess the property’s condition as well as the potential repair costs and structural feasibility of the project.

As a home buyer in Florida, you should only seek out an Exclusive Buyer Agent. They owe you a fiduciary duty and are charged with full disclosure of all known facts regarding the property, community and hold your interest in strict confidence. They will work for you to get all the answers you need to make a valid and informed purchase decision.

Filed under: Blog, Boca Raton real estate, contracts, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Foreign Home Buyers, Home Buyer Advice, Home Buyers, home Inspections, Homebuyer Advice, House Closings, International Home Buyers, International investors, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, Relocation, Retirement, South Florida Real Estate, Title Insurance by Kim Bregman
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How To Win A Bidding War!

A bidding war is when at least two prospective buyers have made legitimate offers for a home that are similar and the Seller wants to select the best offer and terms for themselves. Bidding wars are common—in most of 2020, over half of home offers presented have faced competitive bids, according to Redfin’s study. Although historically low interest rates have sparked buying activity recently, some neighborhoods are always sought-after and attract multiple offers whenever a home comes up for sale. Exclusive Buyer Agents are experts in winning bidding wars and getting credits during the due diligence period.

Expect to be in a bidding war In a hot housing market, it’s often not enough to quickly make an offer on a house but to have the highest price and best terms.

Here are a dozen ways you can get an edge on the competition.

Offer to Pay in Cash

If you have the ability to offer an all-cash bid, you gain a distinct advantage because you eliminate the possibility of a mortgage falling through before closing. Buying with cash will make the process go quicker because you won’t need to go through the approval process with a lender, who would also request an appraisal. If you can’t cover the entire purchase price in cash, you could agree to a larger down payment on the house, which increases your approval odds and might make your bid more attractive.

Get Pre-Approved

Pre-approval is a step most buyers will take anyway, but it’s absolutely essential for anyone in a competitive bidding situation. Pre-qualification is not enough, as it doesn’t show that the lender conducted the same amount of due diligence—such as checking your earnings and doing a hard credit check—that a pre-approval would require.

Know Your Financial Limits

When you’re preparing for a bidding war, think of it like an auction—you need to know how much house you can afford before you actually bid. Once you know the maximum amount you’re willing to bid, you can include an escalation clause in your purchase offer to ensure you can instantly counteract any other bid. An escalation clause lets you increase your bid to avoid being outbid by another buyer up to a specified amount.

Provide More Earnest Money

Buyers typically provide 1% to 5% of the purchase price as earnest money—a form of a security deposit—in a purchase contract, which gives sellers the assurance that you will follow through with the purchase. If you bail out on the contract without citing a contingency, you will likely lose the earnest money. If you put down more than the typical earnest money amount, it will tell the seller that you’re determined to follow through to the closing.

Be open to making offers sight-unseen

Speed is key in a seller’s market as competitive as this one. If you’re interested in a home but live far away or just haven’t been able to tour it, you can still throw your hat in the ring. Video tours and 3D walk-throughs have made sight-unseen offers much more feasible. Almost two-thirds (63%) of people who bought a home last year made an offer on a property that they hadn’t seen in person.

Remove Some or All Contingencies

When you make an offer to purchase a house, you know the deal could fall through for numerous reasons, and you don’t want to lose your earnest money because of it. That’s why you include contingencies in the purchase contract; if the home inspection uncovers major problems or you can’t sell your current home in time to close on the new one, you can get out of the contract without penalty. Almost no offers contingent on the sale of a home will win a bidding war. Sell your home, rent and then start trying to get a home under contract. Simultaneous closings are so 1990’s.

If you can’t waive contingencies, sweeten them for the seller. Opt to expedite the contingency timeline.

Be Flexible on the Move-in Date

First-time home buyers and those who have already sold their previous home might be in a position to be flexible with the sellers on their move-in date. A seller might ask for more time if they have concerns about potential delays for a new home build. In this case, they could go through the closing and then rent the home back from you for a few weeks or a month. This flexibility could be as valuable—if not more valuable—than a higher bid on the house.

Start low, bid high

A lot of successful buyers today win by making an offer that exceeds the asking price…in fact it is expected. This also means that a lot of buyers end up exceeding their budgets. To prevent this, only search for homes that are listed 10-15% below what you can afford, so that you can make an over list price offer.

Offer to pay some of the seller’s costs

Home buyers can make their offers more competitive by offering to pay for expenses that are typically covered at least partially by the seller.

Write a Personal Note

Home sellers, especially ones who have lived in a home for a long period of time, can sometimes be swayed by a personal note that explains why you believe this is the home of your dreams. For example, you might know that the current owner raised a family in the home, and you can discuss how you hope to do the same. It might seem a bit over the top, but it’s certainly worth a try when not much separates your offer from others. And yes—sometimes it works. Avoid putting any personal information in the letter that may expose the Seller of real estate agents from violating Fair Housing laws.

Prepare to lose before you win

With more than half of offers facing competition these days, it’s more likely than not that you’ll get into a bidding war if you’re in the market for a home. It’s also wise to know when to walk away. It’s OK to put your search on hold if you reach the point where you’re not comfortable making the aggressive offers that are often necessary to win in today’s market. You don’t want to end up with buyer’s remorse, after all.

Use an experienced Exclusive Buyer Agent that has been successful with winning bidding wars and speak with their references. Be prepared to ask to be in a Back Up position if you lose the bid. The market is too competitive and offers move too fast for novices to be effective at winning bidding wars in a multiple offer situation.

Filed under: Blog, Boca Raton real estate, contracts, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Foreign Home Buyers, Home Buyer Advice, Home Buyers, Home Financing, home Inspections, Homebuyer Advice, House Closings, International Home Buyers, International investors, Real Estate, Real Estate Investment, real estate news, Real estate trends, Relocation, South Florida Real Estate by Kim Bregman
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Tips for Buying a Home in a Seller’s Market

Buying a home in a Seller’s market always has its challenges. But when you’re trying to do it in a seller’s market, the difficulty can reach a new level. When the market favors the seller, time is of the essence. Multiple offers happen with more regularity in a seller’s market than a buyer’s market, because a seller’s market is defined in part by low inventory and a surplus of home buyers. A beautiful home that is priced well can attract more than one offer.

In a seller’s market, you should always assume you’re competing against several other offers. However, that doesn’t mean you can’t buy a new home in a seller’s market, when there are more buyers than homes, and sellers can afford to hold out for higher offers. You just need to make sure you do it right and arm yourself with the right information:

Here are a few things to consider as you prepare your offer when buying in a seller’s market:

Choose an Experienced REALTOR: In sports and in business, it’s important to have the best players on your team when facing fierce competition. In a seller’s market, that means choosing a real estate agent who not only has proven expertise in the neighborhoods you’re interested in but is also highly responsive and efficient. Make sure to use an Exclusive Buyer’s Agent that owes you a fiduciary and works in your best interest.

Demonstrate Credit Worthiness: You should get Pre-Approved for a home mortgage with a local lender before touring homes if you need to get financing. By obtaining a pre-approval for a mortgage before you start home shopping, you’ll know how much buying power you have. Your offer may have far more credibility than competing ones where buyers didn’t take this step.

Lower Your Expectations: When the inventory of homes is limited, you probably can’t afford to wait for the perfect house to hit the market. Prepare yourself to adjust your expectations. It makes the most sense to make exceptions to your criteria for things that can be changed. For example, you can renovate or add a bathroom someday, but you can’t change the home’s location or lot size.

Make your Best Offer first, be Ready to Bid: Make your best offer but be prepared for it not to be your final offer. High home prices can lead to home appraisals that don’t climb as fast, leaving lenders to not fund the loan. Home buyers should have money set aside the pay the difference between a contracted purchase price and the appraisal.

By Prepared to Make Concessions: Your relative lack of power in a seller’s market doesn’t just affect the question of price. It carries over to every other aspect of the deal, too. Shorten the inspection period, be flexible on closing dates; you should be prepared to accommodate the seller’s needs even if it is an inconvenience to you.

Don’t be that buyer who wants to wait until the weekend to view a home in a seller’s market. By the weekend, that home could be sold. Try to be one of the first showings. Sellers usually don’t enjoy having buyers come through their homes at all hours of the day, so most would like to see their home sold quickly. If you write a good, fast, and clean offer, your chances of acceptance are far better than those of a buyer who is unprepared or is unrealistic on price.

Finally, don’t get carried away with the pressure to buy, even in a seller’s market. Remember that a home decision has a long-term impact on your financial future. It may be better to let a house go than make a poor decision that’s expensive to change.

Filed under: Blog, Boca Raton real estate, contracts, downtown boca raton, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, House Closings, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, Relocation, South Florida Real Estate by Kim Bregman
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Life After COVID-19? How Interior Design will Change

Spending months in quarantine has already dramatically impacted design, with new trends that will undoubtedly continue to resonate well into 2021 and beyond. The future of interior design will reflect the reality of a world that has been forever changed by incorporating cleanliness and materials to help to mitigate the spread of disease, floor plans that provide separate spaces for home-bound activities, and a focus on personal well-being.

Nature-starved homeowners have been craving what they’ve been denied of late, so expect to see an increased number of plants and lush indoor gardens, earth-toned color schemes, outdoor-style interior flooring, and even the occasional attached greenhouse.

Residences will no longer have a home office, but an office at home. Significant reconsideration of how we can create a beautiful, functional office at home will be designed and set up to accommodate full time satellite workplaces.

If you’re doing your part and social distancing from inside your home, you may start to notice small details of your house or apartment you hadn’t thought about before – like how to help keep your home as clean as possible during the corona virus outbreak. There are few materials that we can use that are more sterile than others and will be used even more in the future of design.

- - - Metals such as copper, brasses, and bronzes are natural antimicrobial materials that have intrinsic properties to destroy a wide range of microorganisms. Not only are these metals hygienic, but they are great accents to warm up your home.
    - A separate “casita” or guest house suite can be useful for isolating someone that may be ill, or to provide more distance and privacy for guests.
    - Office spaces and study areas are more necessary than ever. As more of us work (and learn) from home, a dedicated office and space for studying is essential. Many of us quickly had to convert areas and rooms to our own home offices – showing us the importance of a separate space. Homes with multiple areas for getting work done – offices, libraries, and study areas – will be even more popular in design.
    - Multiple areas for activities and entertainment, such as home gyms, media rooms, and game rooms will be necessary to keep everyone entertained. During this pandemic, we have found ourselves with a lot of time on our hands, so whether it’s a family game night or a workout, the need for a space for everyone at home has only increased.
    - There’s no doubt that the future of kitchen design will look different in a post COVID 19 world. First, we have been forced to alter the way we shop, store, and prepare food. Second, we have more time at home to get organized, tackle lingering projects, and sanitize our homes. Finally, we have had to change the way we interact and socialize with family, friends, and colleagues. More long term storage and larger freezer capacity are in demand. New kitchens will be designed with cleanability in mind. Low maintenance cabinet finishes, faucets, tile, and fixtures will be a top priority. Quartz is one of the hardest non-precious stones on earth, therefore countertops made from quartz are hard, stain and scratch-resistant, and the most sanitary.

Our living spaces greatly influence our physical health – as well as our emotional state of mind (especially during his time). So it will continue to be important to create environments that stimulate our senses in a good way, improve relaxation, and have health and wellness benefits to the people using them. Here are a few ways of living that will be popular.

Bringing in nature will be emphasized in many different ways. From larger windows with views outside and using colors that reflect the natural world. Having lots of greenery in a home is also an obvious and easy stimulant to our overall wellbeing (along with lots of health benefits).
An increase in organization. Being quarantined at home makes us realize what is really necessary. Clutter can cause anxiety and discomfort – feelings that are more unwanted than ever. Organization will be emphasized, through de-cluttering, smart storage, and built-in shelving and spaces for keeping items organized in smaller spaces.
A sense of security and calm will definitely be present in interiors. When the world is full of uncertainty, having a space that feels like an escape from the outside world, with soft and cozy materials, light colors and relaxing vibes, will be a prerequisite of design.

When it comes to colors this year, we’re seeing the return of earth tones in a wide spectrum, from cream to terra cotta. Expect to see decor that conveys softness, with plenty of light colors, especially pinks, beiges and other neutral tones, for a Zen look promoting rest, tranquility and well-being.

Nature continues its influential role in the world of decor. Vegetal hues have been in the spotlight for several seasons now, and this year we saw a lot of them, ranging from tender green to intense mint to peacock blue. Sky blue has brightened up the pastel palette.

Earth tones aren’t the only trend with staying power of late. While black is becoming less popular, blue has been replacing it. It’s a more versatile and emotionally indulgent hue well suited to sheltering at home.

Filed under: Blog, Boca Raton real estate, coronavirus, COVID-19, Down Sizing, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home decorating, home safety, Homebuyer Advice, Interior Design, Real Estate, Real Estate Investment, real estate news, Real estate trends, South Florida Real Estate by Kim Bregman
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Emergency Supplies for Quarantine or Hurricane

Emergency Supplies that you can buy now and be prepared for any emergency in the next few months. COVID-19 cases are increasing and there may be a need for you to self-quarantine for a period of weeks. We are also in the summer months frequently occurring natural disasters—a flood, hurricane, tornado, fires, and more—and they often come with little or no warning. There are already known shortages of items in the stores and with the onset of a hurricane warming the shelves will soon be bare. Stocking up now on the right non-perishable food items will help you weather the storm (or global pandemic) with less stress knowing that you have these emergency supplies on hand for now or later.

What to Always Keep in Your Pantry

These non-perishable food items (or close to it) have lengthy expiration dates, so you can stash them away for long periods of time, even if it’s not hurricane season or tornado season. Make a list of everything in your stockpile and check expiration dates every 6 to 12 months to keep things fresh. And don’t forget to have a MANUAL can opener on hand at all times—all that food won’t be of any use if you can’t open it.

Peanut butter: A great source of energy, peanut butter is chock-full of healthful fats and protein. Unless the jar indicates otherwise, you don’t have to refrigerate after opening.

Whole-wheat crackers: Crackers are a good replacement for bread and make a fine substitute when making sandwiches.

Nuts and trail mixes; Stock up on these high-energy foods—they’re healthful and convenient for snacking during a hurricane, tornado, or other emergency.

Cereal;Choose multigrain cereals that are individually packaged so they don’t become stale after opening.

Granola bars and power bars;Healthy and filling, these portable snacks usually stay fresh for at least six months.

Dried fruits, such as apricots and raisins;In the absence of fresh fruit, these healthy snacks offer potassium and dietary fiber.

Canned tuna, salmon, chicken, or turkey;Generally lasting at least two years in the pantry, canned meats provide essential protein. Vacuum-packed pouches have a shorter shelf life but will last at least six months.

Canned vegetables, such as green beans, carrots, and peas;When the real deal isn’t an option, canned varieties can provide you with essential nutrients, making these a great hurricane food or natural disaster

Canned soups and chili; Soups and chili can be eaten straight out of the can and provide a variety of nutrients. Look for low-sodium options.

Dry pasta and pasta sauces; It might be a carb-heavy, gluten-full food, but pasta is filling, and dry pasta and jarred sauce can last on pantry shelves for months

Bottled water; You need at least one gallon per person per day. “A normally active person should drink at least a half gallon of water each day,” Andress says. “The other half gallon is for adding to food and washing.”

Sports drinks;The electrolytes and carbohydrates in these drinks will help you rehydrate and replenish fluid when water is scarce. Just make sure your sports drink of choice doesn’t come with too many additives, such as sugar or artificial sweeteners.

Powdered milk or Boxed milk; Almost all dairy products require refrigeration, so stock this substitute for an excellent source of calcium and vitamin D when fresh milk isn’t an option.

Sugar, salt, and pepper;If you have access to a propane or charcoal stove, you may be doing some cooking. A basic supply of seasonings and sweeteners will improve the flavor of your food, both fresh and packaged.

Multivitamins;Supplements will help replace the nutrients you would have consumed on a normal diet.

What to Buy Right Before an Emergency

If you’ve been given ample warning that a storm is coming, there’s still time to run to the market and pick up more hurricane food: fresh produce and other items that have shorter shelf lives. Most of these foods will last at least a week after they’ve been purchased and will give you a fresh alternative to all that packaged food..

Apples;Apples last up to three months when stored in a cool, dry area away from more perishable fruits (like bananas), which could cause them to ripen more quickly.

Citrus fruits, such as oranges and grapefruits;Because of their high acid content and sturdy skins, citrus fruits can last for up to two weeks without refrigeration

Avocados;If you buy an unripe, firm avocado, it will last outside the refrigerator for at least a week.

Tomatoes;If you buy them unripe, tomatoes will last several days at room temperature.

Potatoes, sweet potatoes, and yams;If you have access to a working stove, these root vegetables are good keepers and make tasty side dishes. Stored in a cool, dark area, potatoes will last about a month.

Cucumbers and summer squash;These vegetables will last a few days outside of refrigeration and can be eaten raw.

Winter squash:While most are inedible uncooked, winter squashes, such as acorn squash, will keep for a few months. If you’ll be able to cook during the emergency, stockpile a bunch.

Hard, packaged sausages, such as sopressata and pepperoni; You can’t eat canned tuna and chicken forever. Try stocking up on a few packages of dry-cured salamis such as sopressata, a southern Italian specialty available at most grocery stores. Unopened, they will keep for up to six weeks in the pantry.

Non-grocery Items:

Within the two-week limit, make sure you have enough toothpaste, floss, face wash, moisturizer, shampoo, conditioner, razors, shaving cream and hand sanitizer with at least 60% alcohol. It’s also good to have extra laundry detergent and hand soap at home. Stock up on face masks, hand sanitizers, toilet paper

More Food Advice for an Emergency:

If the electricity goes out, how do you know what is and isn’t safe to eat from the refrigerator? If your food has spent more than four hours over 40º Fahrenheit, don’t eat it.
If you don’t have electricity, you may still be able to cook or heat your food. If you have outdoor access, a charcoal grill or propane stove is a viable option
If your family has special needs—for example, you take medication regularly or you have a small child—remember to stock up on those essential items, too. Keep an extra stash of baby formula and jars of baby food or a backup supply of your medications.
If you live in an area at high risk for flooding, consider buying all your pantry items in cans, as they are less likely to be contaminated by flood waters than jars.

Filed under: Blog, Boca Raton real estate, coronavirus, COVID-19, Exclusive Buyer Agency, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Maintenance, home safety, Homebuyer Advice, Hurricane Preparedness, South Florida Real Estate, Uncategorized by Kim Bregman
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Should You Refinance During The COVID-19 Situation?

Rates are lower than ever; when a refinancing is done right, it can save you thousands of dollars. But not every potential refi makes the cut. Sometimes the expenses just don’t justify the potential savings.

It is time to refinance your home mortgage if the terms lower your mortgage interest rate, pay off their mortgage years earlier, or saves thousands in interest over the life of the loan. You can save serious money by refinancing your mortgage. But due to refinancing fees and expenses, not every refi makes financial sense.

COVID-19 is creating changes with lenders and how they are doing business. This is resulting in refinancing taking longer and getting stricter than it has been in the past. Although the mortgage process is considered essential as a financial transaction, depending on where you live, there may be changes related to COVID-19 involving your appraisal, rate lock and closing process.

Rates are quite low and because your home is your biggest financial investment, the equity can be very useful as a resource in times of trouble. But if you’re thinking of financing your home loan there are several steps you should take to make sure that it’s the right move for you.

How Long Do You Plan On Being In Your Home?

Being able to answer this question will help you figure out the term length you want on any refinanced mortgage; but there’s another reason asking this question …

If you plan on moving within the next 5 – 10 years, it could be worth your while to look at an adjustable rate mortgage ( ARM). You get a lower rate initially with an ARM because the rate can adjust after the teaser period. But if you move before the end of the fixed-rate time frame, you don’t have to worry about whether the rate is going up and down in the end. Additionally, your payment will tend to be lower because most adjustable rate mortgages are based on 30-year terms.

Age Of Current Loan

The age of your current loan sometimes plays a role in whether you can refinance. Even if you can refinance, it does not always make sense. When you refinance you have to pay closing costs. If you are not planning on staying in the house past the breakeven point when the savings and the additional expenses paid starts to net to overall reduced costs for home ownership, the it is not the time to refinance. You may want to accelerate buying a new home to realize the saving from lower interest rates.

Plans For Monthly Savings

If you determine that you’re going to save money by refinancing based on the rate and term you can get, make sure that you have a plan for what you’re going to do with the monthly savings in order to put yourself in a better financial position. No one knows exactly when COVID-19 is going to end and how long it will take for the economy to recover. If you can save money now, you can work on establishing the savings need should the vaccine be delayed or we continue with a longer recession

You could use your savings to build up an emergency fund. Maybe you choose to allow yourself to save money in the future by paying off high-interest debt now. You can also use this to catch up on saving for retirement if you stopped contributing temporarily while dealing with the situation caused by the virus.

It’s a very volatile market right now, so we advise all of our clients to rely on the advice of their Home Loan Expert and Financial Advisors at all times.

The Mortgage Refi Process

Approving a mortgage is a complicated process, one that requires a lender to validate a borrower’s income, check the value of the home being used as collateral and scrutinize the title history of the property.

Just as refinancing applications picked up, the coronavirus pandemic dramatically changed the way everyone in the mortgage industry works. Loan officers no longer go to the office. Appraisers stopped walking through houses. And no one gathers around the title company’s closing table. The process is a little slower because everybody’s working from home right now. Things that would take an hour to do are taking a day sometimes.

It is more difficult to verify a borrower’s employment. A task once dispatched with a quick call to the borrower’s human resources department now means leaving a voicemail and waiting a day or two for a response.

Meanwhile, homeowners looking to refinance may have to get in line behind buyers who need a mortgage so they can close on a house which are a priority with lenders.

The mortgage industry already had been digitizing, and lenders quickly adapted to many changes. One stumbling block, though, is that most lenders still require some documents to be signed in the presence of a legal witness and notarized. Florida allows for mobile notaries and they are busier than ever.

Sometimes, documents are being signed remotely and online and mobile notaries are not allowed yet. You need to allow time for in person notarization and overnight mailing of documents. Digital closings may be the way of the future, but we are not there yet.

What You Can Do to Secure a Smooth Refinance

Here are a few ways you can make the refi process as smooth as possible:

— Get your paperwork in order. Don’t let something simple like a missing document delay your refinance. Collect PDFs of financial documents, including pay stubs, bank statements, tax returns and retirement accounts.

— Make sure the lender will honor your rate lock. In normal times, lenders extend rate locks for 30 to 60 days, meaning you won’t have to pay more if rates go up before your loan closes. These aren’t normal times, though, and many refinances aren’t closing within 30 to 60 days, so make sure your lender is willing to extend your rate lock if your deal is delayed.

— Keep your credit score tight. Now isn’t the time to miss a payment, take on new debt or otherwise do anything to lower your credit score. Lenders are being especially strict about borrowers’ credit histories.

Filed under: Blog, Boca Raton real estate, coronavirus, COVID-19, Exclusive Buyer Agency, Exclusive Buyer Agent, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, Mortgage Information, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Refinancing, South Florida Real Estate by Kim Bregman
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Virtual Home Buying Made Easy!

Gov. Ron DeSantis enacted stay-at-home orders for Florida effective April 3, but the order considers real estate an “essential service,” so Realtors may continue to operate under limits set by CDC guidelines.

Under the issued Homeland Security guidance, “residential and commercial real services” are included on a 15-page list of essential services. These cover settlement services and government offices that conduct title searches, notaries, and mortgage and recording services, as well as construction. The advisory letter was created by the Homeland Security’s Cybersecurity & Infrastructure Security Agency.

Optima Properties is able to continue to service your needs as a Buyer.

Showings:

In-person showings are considered a health risk. We can

Zoom, Facetime, or Skype showings

Online Video Tours are available on active listings currently and more are being developed every day.

Contracts:

Digital Signing of all Contract Documents
Zoom, Facetime or Skype Contract Review

Deposits:

Wired Earnest Money Deposits
Following Wire Fraud Protection ( Voice to Voice Confirmation)

Property Inspections:

Electronic Delivery of Inspection Reports
Zoom, Facetime or Skype Inspection Review

Mobile Notary:

Mobile Notary and Virtual Closings Now Available

House Key Delivery:

Non Contract Key Delivery Service Post Closing

Please contact me for all your Real Estate Related Needs.

Stay Home and Stay Safe!

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Filed under: Blog, Boca Raton real estate, contracts, coronavirus, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, home Inspections, Homebuyer Advice, House Closings, Mortgage Information, Real Estate, Real Estate Closings, real estate news, South Florida Real Estate by Kim Bregman
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