Are higher-priced new homes a bargain over time?

WASHINGTON – April 3, 2013 – Using data from the Census Bureau and Department of Housing and Urban Development’s 2011 American Housing Survey, the National Association of Home Builders (NAHB) found that buyers can pay more for a newly constructed home and save money over time, even if the new home costs more upfront.

Builders have faced rising costs for labor and supplies recently, and competition from relatively inexpensive existing home prices. To offset that difference, the study focuses on the new homeownership elements that save money.

“Home buyers need to look beyond the initial sales price when considering whether to buy new construction or an existing home,” NAHB Chairman Rick Judson said in a release. “They will find that with the higher costs of operating an older home, they can often afford to spend more to buy a new home and still have annual operating costs that fit their budget.”

NAHB’s study first looked at utility, maintenance, property tax and insurance costs, and analyzed how they vary depending on the age of a home. It found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241.

Similarly, operating costs average nearly 5 percent of the home’s value for pre-1960 structures, while they average less than 3 percent when the home was built later than 2008.

The analysis then compared the first year after tax cost of owning a home by the year the house was built, taking into account the purchase price, mortgage payments, annual operating costs and income tax savings. Based on these savings, NAHB says a buyer can afford to pay 23 percent more for a new house than for one built before 1960 and still maintain the same amount of first year annual costs.

While mortgage payments will be greater with a higher-priced new home, its lower operating costs mean a home buyer’s annual costs would be roughly the same in a newly built home compared to an older home’s smaller mortgage payment but higher operating expenses.

“For a family working with a fixed annual budget, new-construction homes offer outstanding comfort, convenience and overall cost savings,” said Judson. “Put that together with today’s near-record low interest rates and competitive prices, and the time has never been better to buy a new home.”

© 2013 Florida Realtors®

Why You Should Hire An Orlando Florida REALTOR®

Posted by admin March - 8 - 2013 - Friday ADD COMMENTS

Why You Should Work With an Orlando Florida REALTOR®

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR®.

1. You’ll have an expert Orlando Florida REALTOR® to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. Orlando Florida REALTOR® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your Orlando Florida REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5.  Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a Orlando Florida REALTOR®, you do not have to allow strangers into your home. Your Orlando Florida REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. Orlando Florida REALTOR® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a Orlando Florida REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for Orlando Florida REALTOR® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

Have you ever thought about purchasing a holiday home in Central Florida? Florida may be known mostly for it’s beaches but don’t ever forget we have so much more to offer. Hundreds of lakes with some of the best bass fishing in the World. And of course Disney World, Sea World, Wet N Wild and Universal Studios.

Here’s a little peak at my world.

Want to find out more? www.CFLInvestmentHomes.com

 

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

Buyers Beware….The asking price of the property means SQUAT!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Tutas Towne Realty, Inc

As some of you may remember I was a HUGE fan of Range Pricing for many years. When we first opened Tutas Towne Realty 13 years ago Range Pricing was our UVP (Unigue Value Proposition).

I haven’t used Range Pricing since the market changed in late 2006. It made a lot of sense when the market was moving upward. It doesn’t make sense today.

You can see by the comments in this article that many agents didn’t get it and some buyers didn’t like it. But none the less it worked. My properties sold quicker and for more money using this technique. Fortunately for me I worked for the seller and didn’t really care what the agents or buyers thought. I just wanted to sell the property for my seller.

In my market right now properties are selling on average for 102% of the asking price. So it’s really no different than when we used Range Pricing. Back then, 2006 and earlier, my properties were selling for almost 104% of asking price.

2006 sales data

In the current market, where banks are pretty much controlling things, the technique being used is pricing low and creating bidding wars. It’s like the old days of Range Pricing. The only difference is there is no top of the “Range” being mentioned. 

Foreclosures and Short Sales are now selling with multiple offers to the highest bidder. What I was doing 15 years ago, that was very controversial then, is now the norm. Funny how that happens. I guess we were just way ahead of our time.

My advice to buyers now is the same as it was then. Make your offer based on the value of the property NOT based on the asking price. The asking price doesn’t mean squat. It could be too low or it could be way high. Have your agent do an analysis on the property and then submit an offer that has a chance of getting accepted.

Buyers who base their offers on asking price instead of the value of the property will end up without a property to buy. This is true in ANY market.

By the way here’s a link to a market analysis I did for one of our buyers. He was well informed and his offer was accepted. What say you?

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

Holiday Home Near Disney World. Come experience the dream.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

2993 Kokomo Loop Haines City Florida 33844
Southern Dunes Country Club

This 3 bedroom 2 bath pool home is being sold completely furnished and ready for holiday rentals. World class 18 hole “links style” golf course is the center piece of Southern Dunes Country Club. Located only 30 minutes to Disney World this home would make the perfect Florida get away. Zoned for nightly rentals. Advanced bookings and management are in place for a turn key vacation home. Only $150,000

 

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

Please Mr. Home Inspector…………..

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Home Inspections. Don't like them at all. Received an "Inspection Report" today stating the AC is five years older than the house! Never had that one before. The house is only six years old and was built by a big time national builder. The AC works great but now the buyer wants a letter from the builder stating that this is the unit that was put in the house when it was built six years ago. Now obviously trying to get this documentation from the builder, who has probably built 10,000 houses since this one, is impossible.

In my State, Florida, the only requirement to become a "professional home inspector" is a stack of business cards and an occupational license. Scary when you consider these guys can make or break a deal.

So I was wondering does your State have an agency to regulate Home Inspectors?

No money? No problem.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Negotiated a deal on one of my listings yesterday. The Buyer is purchasing using 100% financing with Seller paying closing costs. My market is affordable housing with the majority of homes priced from $190s to $250s and it seems like most of the Buyers lately have been purchasing with no money down. Now don’t get me wrong I am in favor of home ownership for everyone but I fear a lot of the Buyers are going to have financial difficulties in the near future. With high insurance costs, property taxes and mortgage payments I am seeing payments of close to $2,000 per month for a starter home. That’s a pretty big nut to crack every month in my area where most families are regular working class people and don’t have any reserve funds if they should encounter a financial setback.

Also, a good number of these purchases are being made with ARMs with the Buyers basing their ability to pay on future raises at work or a part time job that they may or may not be getting. In my opinion Mortgage Brokers and Realtors are being overly aggressive in selling these folks on the advantages of home ownership without really taking the time to counsel the Buyers on the true costs involved. And since they don’t have to come up with any money at closing they are sitting ducks for Mortgage Brokers who are charging them sometimes outrageous fees for doing these types of loans.

So my challenge to Realtors who are dealing with first time Home buyers with a little or no money down is to really take the time to explain the pros and cons of purchasing a home. If the Buyers are fully informed and are wanting to move forward then help them to negotiate fees or guide them to the myriad of programs available that can help them with financial assistance. Placing a Buyer in a home he can’t afford can damage them for years. It can cause bankruptcies, divorces and even illnesses. So let’s “Protect the public” it’s what Realtors are supposed to do.

Does your Realtor really represent you?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

When hiring a Realtor in Florida it is important to decide how the Realtor will be working for you and what duties they do or do not owe you. I have provided a link at the bottom of this post that will take you directly to Chapter 475 of the Florida Statutes where you will be able to find all information related to having a Real Estate license in Florida. Following is the "nut shell" version of Brokerage and Non Brokerage relationships.

In Florida Dual Agency is illegal. The only exception is on a commercial deal where both Buyer and Seller have assets of over 1 million two sales associates from the same office can work as "designated sales associate". One for the Seller the other for the Buyer.

In a residential transaction a Realtor has three choices of how to work.

1. Single Agent-this is a fiduciary relationship. You can work for either Seller or Buyer but not both. Your duties include confidentiality and full disclosure.

2. Transaction Broker-this is a form of limited representation but does not create a fiduciary relationship. Limited confidentiality and limited liability. You can be a Transaction Broker for either Seller or Buyer or both. If working for both parties it cannot be to the detriment of either party. In Florida we are presumed to be "Transaction Brokers" unless single agent or no brokerage relationship is established with a customer in writing.

3. No Brokerage Relationship-no representation at all. Can be with either Seller or Buyer or both. No confidentiality.

And then we have this thing called "Transitioning to a Transaction Broker"

FLORIDA LAW ALLOWS REAL ESTATE LICENSEES WHO REPRESENT A BUYER OR SELLER AS A SINGLE AGENT TO CHANGE FROM A SINGLE AGENT RELATIONSHIP TO A TRANSACTION BROKERAGE RELATIONSHIP IN ORDER FOR THE LICENSEE TO ASSIST BOTH PARTIES IN A REAL ESTATE TRANSACTION BY PROVIDING A LIMITED FORM OF REPRESENTATION TO BOTH THE BUYER AND THE SELLER. THIS CHANGE IN RELATIONSHIP CANNOT OCCUR WITHOUT YOUR PRIOR WRITTEN CONSENT

Click for Chapter 475 Florida Statutes.                 Click here for Realtors Code of Ethics

Does that 50 cents have to be on the HUD?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

I just love final walkthroughs! Why is it that Buyers and their Realtors sometimes try to spoil the elated feeling I get, knowing that we finally made it to day of closing?

I get the call this morning, telling me they did the walkthrough and everything is OK, except for the hole in the living room wall. What? A hole? How can that be? I was just in the house last week and it was fine. No holes! I don’t want to hear about holes two hours before closing. I mean the house is vacant. No one has been in the house but the appraiser. Then they spring the big one on me. “What’s the Seller going to do about it?”

Personally, I think that’s a pretty good question. “What’s the Seller going to do about it?” Well, my answer is “I don’t know”. I am still trying to digest the fact that there is hole in the living room wall. Well I got lucky, the other Realtor had a call beeping in on him and decided to take it and call me back.

So, I get myself out of bed (not sleeping mind you, but diligently “working” on reading all the ActiveRain posts from last night), anyway, I get myself out of bed, hop in my SUV and burn $10.00 worth of gas to go check out the hole in the living room wall. Now I’m a pretty observant guy and would probably notice a hole in the living room wall, but I don’t. No hole. Well, maybe they meant the family room. So I go look and again, no hole. Wait a minute, what’s that? Let me see, if I get down on my knees and squint just right I can see a tiny indentation in the wall about the size of my pinky fingernail. This my friends must be the culprit. The all elusive hole!

I call the Realtor back and tell him I have been at the house to look at the “hole” and asked him if he had actually seen it, or did he just allow the Buyers to go over by themselves to do the walkthrough? Do I need to even tell you his response? Of course he hadn’t seen it! It was too far for him drive to so he just gave the buyers the code so they could do their own walkthrough! The Buyers told him there was a hole in the wall, and asked, “What was the Seller going to do about it”. Anyway, I remained calm and politely told him to show the Buyers the definition of “hole” in the dictionary and that we would give them compensation of 50 cents. After all that, the Realtor told me to not worry about it, that he would take care of the Buyers.

I tell you, you got to love this business. The things people try to get away with. And the Realtor……….well that’s good material for another post.

The Moral is: Never, ever, take the other party’s, to a transaction, word on anything. Check, double check and check again. Look out for your own customer’s or client’s interest or that “hole” may be in your wallet.

By the way………..Does that 50 cents have to be on the HUD?

Got cash? Want house? Does a 10% return do anything for ya?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Yikes!!!

Want to be a landlord? If you answered “yes” then my next questions is …Why? Why deal with collecting rents and tenant issues. Why let property taxes, insurance, management fees and repair costs cut into your money?

Here’s another option that some of my Investors have been doing. Instead of becoming Landlords they are becoming Lenders. Owner financing is making a come back. It’s difficult for folks to get mortgages right now and offering financing can make the property worth more money.

For example: We can find you really good rental properties right now for $90,000 to $100,000. These homes would normally rent for about $1,000 a month. After expenses your NET is roughly $600 a month.

Instead…offer the property for sale at $120,000 with $25,000 down, no qualifying mortgage of $95,000 @ 8.75 amortized over 30 years with a 5 year balloon payment.

You would receive roughly $16,000 at closing (25K minus selling expenses including commission). Monthly payments of $747 for 60 months. The buyer would be responsible for all taxes, insurance and repairs. You would have zero expenses.

After 5 years the Buyers would have a balloon payment to you of $91,000. You would have already received $45,000 in payments. Therefore your total money received would be:

At closing         $  16,000
Payments         $  45,000
Balloon             $  91,000
                       —————-
Sub total          $ 152,000
COST(BASIS)   (  100,000)
                       ========
GAIN                $  52,000***
                       ========
52% return over 5 years. Or a little over 10% per year. It works out better than a rental with less hassle. Of course you would miss out on any future appreciation (if any) unless of course the buyer defaulted and you got the property back through foreclosure (not a bad deal). So as you can see this can be a very good way to go. If you’re interested….just complete this form and we’ll get right back with you.

 

***Please check with your accountant about tax issues.

Do NOT be foreclosed on! Avoid foreclosure. Short Sales DO close.

Want to find out more? www.CentralFloridaShortSales.com

***I am NOT an Attorney nor do I play one on TV. Click the button below for my Bio.

The BIO for Bryant Tutas

Copyright © 2010 http://www.brokerbryant.com/ | All Rights Reserved

 

About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.