Open House: Should You or Shouldn’t You?

November 4, 2014 By Chris

Before you ever sign the listing agreement with any Realtor, you should discuss his or her plan to market you property. One of the items to discuss should be an open house. Open houses benefit some properties while falling flat for others. Open houses are a lot of work for both the seller and the Realtor and if all parties agree to host one, it should reflect a good amount of effort on both parts. Consider your home’s showing record, the feedback you’ve received thus far, and the effort & patience you’ll need before scheduling an open house.

Why You Should

Convenience

If you have set strict showing instructions or limited the times your home is available for showings, an open house may make it more convenient for potential buyers to see your property. Holding an open house on the weekend also provides potential buyers with more flexibility to view your home without the feeling of a time crunch. Still other buyers may use it as a way to view the property for a second time.

Hot Market

If your home is listed in a seller’s market, an open house scheduled within the first week or two of listing can take advantage of the market conditions and bring in a number of serious buyers all at the same time. With a house full of serious buyers, a seller could potentially end up with multiple offers at the end of the day.

Feedback

Has the feedback on your home individual showings produced the same feedback time and again? Maybe “paint colors are too bold” or “landscaping needs work”? If you’ve recently made improvements to the home, an open house would be a perfect way to show off the finished product. Your Realtor should reach out to those buyers that made the comments and the first place and invite them back to see the changes.

Why You May Think Twice

Nosey Neighbors, Wishers, and Site-Seers

It can appear by the sign-in sheet that your open house was a success but don’t judge a book by it’s cover. Open houses are prime targets for nosey neighbors who want to see what’s beyond the front door to justify your asking price. There are also those buyers that are legitimately looking for a home but one well below your asking price. Some people just want to have a look around to get ideas for decorating their own homes. And still others attend open houses just for something to do on the weekends.

Scrub the House

A few weeks ago, we talked about getting your home ready for a showing. Aside from the actual cleaning, sweeping, and vacuuming, you really should scrub any trace of your family’s existence from the house…at least for that one day. You’ll need to stage the home which means removing personal items such as photos and mementos and replace them with neutral decor. Less is always more in the case of showings and open houses so put away all of the small appliances and other items that usually reside on your counter tops and tables. This can take a lot of time and may incur additional costs if you need to rent or purchase home decor items.

Security

Whether you own a mansion or a two bedroom condominium opening you home to any number of strangers could open you up to the risk of theft. If hosting an open house, you should insist that your Realtor have an assistant to help keep an eye on those visitors walking through the home while your Realtor deals with more serious buyers.

Years ago open houses were the way for Realtors to get their listings noticed but they now share the spotlight with internet listings and social media touts. Great MLS pictures are nice to look at but can never replace actually visiting a home in person. Your listing agent will be able to help you decide if an open house is a marketing tool that will benefit you.

Are You Prepared to Become a Landlord?

October 21, 2014 By Chris

Do you own a home and want to move but you don’t want to or can’t sell your home? Perhaps you’re looking to diversify your investment portfolio and want to venture into real estate. Becoming a landlord may be an option for you in either of these situations. It seems like a straight forward proposition: obtain a property to rent, find a tenant, and collect your rent. There is definitely more to it than that and you should examine yourself, your abilities, and your financial situation honestly before you dive head first into landlordship.

Financial Security

As the owner and most likely mortgagor of the property, you are ultimately responsible to meet all the financial obligations related to a property. The income from your rental property should cover the monthly expenses of the property. You should be in a position to be able to make monthly mortgage, insurance, and tax payments should your tenant fail to make rental payments on time or if your tenant moves out and you’re unable to find a replacement before the next payment is due. Be prepared to cover the cost of any unexpected repairs or legal fees, as well.

Maintenance and Availability

You’ll need to make yourself reasonably available to your tenant and the property. Depending on their needs, you may need to respond and visit the property almost immediately (think burst water pipe or the heater kicks out in the middle of the night). You may also need to visit the property to pick up the rent payment and maintain the landscaping. If you’re not handy, are short on free time, or don’t live within commuting distance of your property, consider hiring a management company to take care of routine maintenance, emergencies repairs, and collecting the rent.

Organization

Whether you realize it or not, as a landlord you’re a small business owner. You’ll need to keep an updated lease, records of each monthly rental payment, maintain an escrow account for the security deposit, and notate any repairs and damages made to the property during the term of a lease.

People and Business Skills

You’ll be dealing with people a lot during your tenure as a landlord and it won’t always be pleasant. You’ll need to interview potential tenants and determine who will be the best tenant for you. Should a dispute arise between you and the tenant, you’ll need to remain calm, cool, and collected even if your tenant does not. You also need to be able to make sound business decisions. You’ll have to enforce rules such as late fees, pet fees, and retain security deposits in the event of damage. You may even have to proceed with an eviction despite any story that may tug at your heart strings.

If you feel you can reasonably meet these qualifications, being a landlord may be right for you. Before you sign a lease though, talk with a licensed real estate agent for a valuation of your home and comparable rental prices. You should also consult an attorney for help drawing up the proper lease documents and tenant notices.

Welcome the New Neighbors

October 7, 2014 By Chris

It’s easy to spot a new addition to your neighborhood, the moving truck in the driveway and the flurry of people in and out with boxes are a dead giveaway. You want to start things off on the right foot but it can be awkward to find the new owners and steal a few minutes with them to introduce yourself. So how and when should you introduce yourself to your new neighbors?

When to say “Hi!”

Any time within the first week of moving in is the best time to ring the door bell and say “hello.” Some buyers may have taken the initiative to talk to the existing owners in the neighborhood before purchasing their home so you may have had a few words with your new neighbors; even if this is the case you should still make the effort to welcome them “officially” to the neighborhood. Moving day itself is always hectic and a bit chaotic but if you see the new owners with a little bit of down time you can make your introductions quickly and let them get back to their work. If you stop by a day or two after the move, be mindful of the dinner hour or if they have small children, early afternoon which is prime nap time, before ringing the doorbell. Don’t try to shy away from the introduction by leaving a note when you know they’re not home unless you’ve tried without success to meet them face-to-face.

Make it short and sweet.

While you want to be welcoming and friendly to your new neighbor, you don’t want to burden them with the pressure to entertain you or take up their time while they’re still trying to settle their new home. Make your visit brief enough to welcome them to the neighborhood, let them know where you live, and any helpful information about the neighborhood (trash pick up day, best pizza place that delivers). Avoid talking badly about anyone in the neighborhood, unless you want to be labeled as the “gossipy” neighbor.

Don’t come empty handed.

We’ve all moved at least once in our lives and there was always that one thing we needed or wanted that would have made life a lot easier. Think about that one thing and bring it with you when you introduce yourself. Maybe it’s a few kitchen staples, cleaning products, or something particular to your area; when all else fails a perfectly good plate of cookies will always be welcomed.

It benefits you to be friendly.

While you don’t have to be friends with every one of your neighbors it definitely benefits everyone to know each other’s names. There’s safety and security in numbers and it’s always comforting to know your neighbors will keep an eye on your home while you’re away. It’s also reassuring to know the parents of the children your kids may play with daily. And who knows, maybe you’ll hit things off with your new neighbor and gain a friend.

Use Social Media to Buy or Sell Your Home

September 30, 2014 By Chris

Social media is everywhere and being used for more than just connecting with friends and family. From sharing pictures on Facebook to tweeting a funny quip on Twitter to pinning that great recipe on Pinterest, the majority of Americans use some form of social media every single day. Why not employ these platforms to help you buy or sell a home?

Buying a Home

Well before a person starts looking at homes, a buyer should have a good idea of what they want to buy. Pinterest is a great tool for home buyers. They can search through hundreds of pictures of homes and pin the ones that appeal to them the most. Buyers don’t need to limit themselves just to homes in the immediate area they’re interested in either. Pinning particular homes styles or specific features will help your realtor keep an eye out for new homes that appeal to you as they come on the market. A word of caution though, buyers should avoid pinning interior designs that appeal to them or save them to a separate board. You may love the colors or accents in one photo but hate the architecture of the room and this can cause confusion for your realtor as he or she searches for properties.

Another way to use social media when looking for a new home is to network through Facebook and Twitter. This is especially helpful for buyers who aren’t from the area they’re intending to buy in. Put up a status on Facebook asking friends if they know of great school districts, lively urban neighborhoods, or whatever you may be searching for in the area you’ll be moving to. You can search Twitter using hashtags for information or recommendations as well.

Selling a Home

Facebook and Twitter are great ways to find real estate agent recommendations. Sellers can also see if the agent has a review on sites like Yelp, although keep in mind not all reviews are fair or accurate. Once your home is listed ask your realtor to share photos of your home’s listing on his or her Facebook page and see if he or she would be willing to reshare several times over the course of the listing. You should also share the listing photos (with contact information for your realtor) on your Facebook page. You can tweet the link to your home’s MLS listing page and use hashtags for your town and any identifying feature you want to highlight (bedrooms, bathrooms, pool, etc.). Don’t spam your friends though, limit your sharing to once a month or once for every change to the listing (price reduction, open house).

Some Sellers have gotten creative and created a Pinterest board dedicated to their home. Some have pinned pictures of different events held at their home (think holiday gatherings, BBQs) to highlight the best their home has to offer and what the home looks like throughout different seasons. These boards often include highlights of the neighborhood (schools, farmer’s markets, local events) to make the area all the more appealing to a buyer. If you do this, make sure each pin directs back to your home’s MLS listing page so the home’s information and your realtor’s contact information can be readily accessed. Use the description portion of pins to detail what you’re pinning and why it should stand out to a buyer.

With some creativity, you can harness social media to do some work for you and your realtor. You can find Chris Hounchell & Associates on Facebook and Twitter.

Fall Home Maintenance

September 23, 2014 By Chris

Changing seasons is a perfect time to inspect your home and address some of its larger maintenance needs. Don’t stress though all of the items listed below are ones that you can take care of yourself in just a few hours during the weekend and tools you already have in your possession.

Roof. Find a sturdy ladder and climb up on your roof to give it a good inspection. You want to make sure there are no loose or broken shingles, if there are replace them. Check the chalking around the chimney and vents; any dry, cracked, or missing chalk should be replaced. Check to make sure the screen over your chimney is secure and if you don’t have one get one immediately to prevent small animals from making a home out of your home.

Gutters. While you’re on the roof, give your gutters a once over. Remove any leaves or debris. That build up over the winter can prevent rain water from draining properly. Make sure your gutters are also secured. If you’re feeling ambitious, you can install gutter guards to help keep the debris out. You can find gutter guards at your local hardware store.

Landscaping. Remove any debris and dead plants from your flower beds and yard. Rake leaves from your yard and dispose of them according to your local government’s laws. Inspect remaining plants, flowers, bushes, and trees for signs of disease or severe damage. Trim back bushes and trees. Add new mulch to your flower beds and around trees. Add new plants that are currently in season and plant perennials.

Windows. Take a look at your windows from both inside and outside. Repair any tears in the screens and replace any weather stripping that is dry rotted, broken, or missing. Make sure your windows open and close smoothly and the locks are in working order. Properly secure any shutters.

Paint. Take a walk around your home and look for any peeling paint or stains. For peeling paint, sand the area and repaint, two coats should be more than enough. For stains first try a solution of warm water and dish soap and scrub the affected area with a scrub brush. If that doesn’t work or the area is too big, try pressure washing. If all else fails you can repaint the area. If you’ve been putting off painting the exterior, the cooler fall weather is the perfect time to do it.

Fire and Carbon monoxide Safety. You should test your smoke and carbon monoxide detectors every month. Take the time at least twice a year to clean the units using the crevice attachment on your vacuum cleaner and replace the batteries, even if the detector is hardwired. Smoke detectors and carbon monoxide detectors save lives.

All of these projects take very little time and money to complete but will keep you and your family safe and your home running as efficiently as possible throughout the winter months.

Breakdown: Closing Costs Explained

September 16, 2014 By Chris

The day has come…it’s time to close on your home. It doesn’t matter if you’re the Seller or the Buyer; a real estate closing isn’t cheap. When you sit down at the closing table you’ll review and be asked to sign a HUD-1 Settlement Statement. This document itemizes every single charge and fee involved in the transaction and identifies who is paying for what. It can be overwhelming to see all those numbers and line item description. Below we’ve broken down the most common closing costs and fees you’ll see.

Commission (Seller)

Realtors earn their pay only when a property transfers owners at settlement. The amount of commission is calculated based on a rate previously negotiated by the Seller when the property was listed (usually 6% of the sales price).

Mortgage Fees (Buyer)

Mortgage fees vary widely from lender to lender. The most common charges you’ll see are “appraisal fee”, “credit report”, “processing fee”, and “origination fee or charge”.

In addition to these fees, there are certain monies the lender will require up front including the daily interest due on the loan from the day of closing to the end of the month, mortgage insurance premium for one year (if your down payment is less than 20% of the mortgage), homeowner’s and flood insurance premiums for one year and property taxes. If your mortgage includes an escrow account for taxes and insurance, the lender will require you make deposits into the escrow account at closing.

Title Insurance (Seller & Buyer)

Next to the mortgage, title insurance is such a crucial part of a real estate transaction. Title insurance protects the buyer’s ownership position (and the mortgage company’s lien position) in the chain of title (ownership). If a previous owner was to come back and try to claim the property was still theirs or a prior mortgage company claims their lien was not paid in full, the title insurance underwriter would defend, and in some instances pay out, on any loss you may experience.

It takes a lot of work to issue a clear title at closing that’s why you’ll see charges on your settlement statement labeled “owner’s title policy”, “lender’s policy”, “title exam/abstract fee” and “settlement fee”. Additional fees can be added if the property in located in a Condominium or Planned Unit Development and additional endorsements are needed for the insurance policy.

Recording Fees (Seller & Buyer)

After the Sellers have signed the Deed and the Buyers have signed the Mortgage, the title company will send the documents to the County Clerk’s office to have the documents recorded in the public record. This helps protect the integrity of the chain of title. Each County Clerk sets their own fee schedules so fees can vary county to county.

In addition to recording fees, the State’s Department of Revenue levies a Documentary Stamp Tax on Deeds and Mortgages, among other documents. The rate for Deeds is seventy cents ($0.70) per every $100 of the transaction and thirty-five cents ($0.35) per every $100 of the value of the mortgage. The title company is responsible for collecting these monies at closing and delivering them to the County Clerk at the time of recording. The Clerk will then submit the monies to the Department of Revenue.

Miscellaneous Fees (Seller & Buyer)

The title company and any third party vendors involved in the sale of the property will want to be reimbursed for charges they advanced to get the transaction to the table. These charges can include overnight fees, tax research service fees, survey, wire fees, notary fees, and flood zone research.

Each transaction is different but these are the most common items you will see on the settlement statement. If you have a question about a fee or charge, speak up and ask for an explanation before you sign.

A Fix For Escalating Flood Insurance Premiums

March 20, 2014 By Chris

Senate Passes Fix For Flood Insurance Debacle, Obama To Sign Measure Shortly… Finally!

After over a year of political ineptitude marked by brief spurts of total paralysis, the U.S. Senate has finally passed legislation to turn back wildly escalating flood insurance premiums, and stem the economic damage inflicted on the real estate industry here in the Tampa – St. Petersburg area and across Florida and the U. S.

The bi-partisan measure effectively overturns many of the onerous effects created by passage of the 2012 Biggert-Waters Bill, which removed federal flood insurance premium subsidies resulting in rate increases of as much as 700-800 percent, deflated property values and put a damper on a recovering real estate market.

Key Impacts Of New Legislation To Turn Back Escalating Flood Insurance Premiums:

Annual rate increases capped at 18 percent.
Owners can again sell primary residences with lower rates intact. This overturns the requirement that buyers of even primary residences immediately begin paying unsubsidized rates.
Owners of primary residences who paid the higher full-risk premiums will receive rebates and their rates will be rolled back.
Buyers of second homes will still be required to pay unsubsidized full-risk rates.
Buyers of commercial properties subject to flooding will also be required to pay unsubsidized full-risk rates.
Imposes an annual assessment of $25 on primary home policies, while second home and business owners will be assessed $250. The assessments will be used to decrease the program’s insolvency.
Helps stem the tide of cancelled flood insurance policies and abandoned homes, and provides relief to owners who have been unable to sell their low-lying properties due to escalating premiums.

A Fix for Escalating Flood Insurance Premiums, But, Not The End…

While the new legislation promises to provide immediate relief from the fallout of Biggert-Waters, it will remain an issue. Flood insurance rates will continue to rise, and it would be naïve to believe that future natural disasters will not put the solvency of the program in jeopardy.

Worth watching is a Washington watchdog group, Taxpayers for Common Sense, which believes that the higher Biggert-Waters rates were warranted and that flood insurance subsidies should be ended.

Keep your ears to the ground, and your eyes on our blogs for any new developments.

House Passes Homeowner Flood Insurance Affordability Act

March 6, 2014 By Chris

US House Passes Repeal Of Devastating Flood Insurance Legislation

Flood insurance relief may be in sight for homeowners and the St. Petersburg – Tampa area’s beleaguered real estate market.

The U.S. House of Representatives overwhelmingly passed the Homeowner Flood Insurance Affordability Act on March 4 that will, if approved by the U.S. Senate, prevent the runaway rate increases imposed by dramatically misguided legislation passed in 2012, legislation that devalued properties, wreaked havoc with buyers and sellers and effectively put a damper on our recovering housing market.

The House’s 306-91 vote thwarts radically higher flood insurance rates from being imposed on primary residences, which is welcome news to sellers of properties facing rate increases of up to 900 percent, to buyers who have stayed on the sidelines watching the political back and forth play out, and to Realtors® who collectively pulled out their hair while watching the federal government put the kibosh on the recuperating real estate market here.

Under the House’s bill, premiums can increase by no more than 18 percent annually and the Federal Emergency Management Agency (FEMA), the agency overseeing the flood insurance program, “must strive to keep flood insurance (rates) under one percent of a property’s total coverage.” So, for example, a homeowner with $250,000 worth of flood coverage would pay no more than $2,500 annually for a policy.

The House bill also protects homes built to meet current flood zone map regulations from being reclassified to higher risk categories, which would have radically increased the number of properties subject to the increased rates.

However, the bill falls short of helping second-home owners or businesses that will still be subject to annual 25 percent increases for flood coverage.

Now Up To U.S. Senate To Provide Homeowner’s Relief and pass the Homeowner Flood Insurance Affordability Act

To become law, the U.S. Senate must pass an identical bill, which could take place by the end of this week. The Senate previously passed a bill that would delay rate [Read more…]

Pinellas County Middle/High School’s Report Cards

February 27, 2014 By Chris

Pinellas County Middle and High School’s Report Cards 2010-2011

Earlier this month, we posted the first in a series of blogs on the Florida Department of Education’s report cards for all elementary schools in Pinellas County for the 2010-2011 academic year. This week, we focus on Pinellas’s middle and high schools.

Our goal with this series is to help prospective buyers identify the strength of the various schools, including charter schools, in neighborhoods in which they are considering buying.

Pinellas County Middle School’s Report Card:

Azalea Middle School – D
Bay Point Middle School – C
Clearwater Fundamental Middle School – A
Dunedin Highland Middle School – C
Fitzgerald Middle School – C
Image Middle School – D
John Hopkins Middle School – B
Joseph L. Carwise Middle School – A
Largo Middle School – C

Meadowlawn Middle School – C
Oak Grove Middle School – B
Osceola Middle School – A
Palm Harbor Middle School – A
Pinellas Park Middle School – D
Safety Harbor Middle School – A
Seminole Middle School – A
Tarpon Springs Middle School – A
Thurgood Marshall Fundamental Middle School – A
Tyrone Middle School – C

Pinellas County High School’s Report Card:

Boca Ciega High School – C
Clearwater High School – B
Countryside High School – B
Dixie M. Hollins High School – C
Dunedin High School – B
East Lake High School – A
Gibbs High School – B
Lakewood High School – B
Largo High School – B

Northeast High School – B
Osceola Fundamental High School – B
Palm Harbor University High School – A
Pinellas Park High School – B
Seminole High School – B
St. Petersburg Collegiate High School – A
St. Petersburg High School – B
Tarpon Springs High School – B

If quality schools are a factor in deciding where to purchase your home, be sure to check their report cards to see how they compare with other neighborhoods. Contact the Florida Department of Education for more information.

Want to find out what homes are available in these “A” school districts? Give us a call at 727-642-9107. We are the leader in general real estate, pre-foreclosure, short sale and foreclosure markets in the St. Petersburg/Tampa Bay area.

House stalls flood insurance rate relief

February 19, 2014 By Chris

U. S. House Inaction Is Stalling Flood Insurance Rate Relief

Despite the U.S. Senate’s passage of legislation to delay massive federal flood insurance rate increases, the House’s persistent refusal to act on the bill continues to bash the real estate market throughout the Tampa and St. Petersburg area and around the state.

So, we continue to urge readers to contact our elected officials, especially our U.S. Representatives, and urge them to pass the measure as quickly as possible to stop weakening the real estate market recovery. Simply click the links below and express your support for the legislation.

Senator Bill Nelson

Senator Marco Rubio

Representative Gus Bilirakis

Representative Kathy Castor

While House Stalls On Flood Insurance Rate Relief, Effort Is Underway to Bolster Private Flood Insurance

While the U.S. House languishes in inaction, Florida State Sen. Jeff. Brandes, R-St. Petersburg, is spearheading efforts to make it easier for private insurance companies to get into the residential flood insurance business. According to Brandes, opening the flood insurance market, even to companies who are not subject to normal state controls, could result in lower rates and broader options than what the Federal Emergency Management Administration (FEMA) offers through its National Flood Insurance Program.

Creating alternatives to the burgeoning costs for flood insurance FEMA is now forced to impose as the result of a 2012 Congressional mandate sounds like a good idea. Privatization may result in lower costs than what the feds are currently offering, and consumers may well have more flexibility in the coverage they purchase, but at what cost?

Sen. Nancy Detert, R-Venice – “This Is A High Risk Plan”

Detert says lower costs sound good, but a lower degree of consumer protection does not. She’s concerned that consumers may not fully research and understand the limitations of less expensive flood coverage from less regulated insurers, and end up taking on more risk than they realize or may be able to afford. While she’s not against the idea of giving the open market a shot at insuring low-lying homes, she wants to ensure that consumers know exactly what they’re getting into before they sign on the dotted line.

As a result, Sen. Brandes has temporarily suspended his efforts, but says he and others are reworking his legislation to include greater consumer protection measures.

We respect Sen. Brandes’ efforts, but are confident in the knowledge that passage of his legislation could take some time, perhaps a very long time. In the meantime, our local and state real estate markets continue to stagnate under the weight of declining property values and exorbitant flood insurance rates, all thanks to a bipartisan lack of foresight compliments of the U. S. Congress class of 2012.

PLEASE ACT NOW!

Contact your senator and representatives and tell them to give a break to the Florida economy, and the home owners here who pay a majority of the fed’s nationwide flood insurance premiums.

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