Chris Hounchell REALTOR

Welcome Home!

Award-winning Florida real estate Broker PROUDLY SELLING IN PINELLAS, HILLSBOROUGH, PASCO, MANATEE & SARASOTA COUNTIES since 2004.

Home Buyer Misconceptions

By

The road to homeownership is a straight line from start to finish, right? It’s hire a Realtor, find a house, get a mortgage, and close. Not so fast. While the major stepping stones are almost always the same for everyone, the steps in between can be different from Buyer to Buyer.  We bust the misconceptions many home buyers, new and seasoned, have when it comes to finding their next home.

Home Buyer Misconceptions

You Need a Big Down Payment

Many people immediately count themselves out of owning a home because they can’t come up with a 20% down payment. While a larger down payment can save you from additional costs such as PMI, it doesn’t necessarily mean you can’t purchase a home. In addition to PMI, there are programs available through the Federal Housing Authority (FHA) that require as little as 3.5% or the Veteran’s Administration (VA) that may have no down payment requirement.

Your Credit Score Isn’t Perfect

Your credit score is not the end all, be all to securing a mortgage. A mortgage underwriter will review much more than the number to ascertain a full picture of your financial health. If you hit a few bumps along the way due to an unexpected illness or unemployment, your underwriter will look at your recent payment history to see if you’ve made any late payments or have any unpaid liens or judgments.

Don’t Talk To Too Many Lenders

People are still laboring under the idea that multiple lenders reviewing your credit report hurts your credit score. FICO, the credit score authority, allows for consumers to shop around for best rates. As long as credit inquiries are all within a 30 day time period, the inquiries show are all counted as 1 inquiry. This is great news that gives potential Buyers the power to find the best interest rate.

You Should Make a Low Offer and Negotiate

Making a low ball offer to “kick things off” is never a good approach. Depending on the market conditions, you may automatically exclude yourself from consideration because the Seller received other, more realistic offers. If the market isn’t super hot, it may give the Seller pause to think you may not be a strong Buyer, which could mean a delayed closing causing them additional months of mortgage payments and taxes. Instead, making your second best offer is often the best practice and provides you with room to negotiate should the Seller counter your offer.

When you decide you’re ready to become a home owner, do your research and contact our team to help you through each step of the process from pre-approval to sold.

Benefits of Buying During the Off Season

By

Want in on a secret? There’s no bad time to buy a house. Spring and summer offer a wild range of options but fall and winter, the “off season”, offer advantages of their own.

Benefits of Buying During the Off Season

Time Is On Your Side

A Seller willing to list during the off season may be one on a deadline so you’re more than likely to have a counterpart that is ready to make decisions quickly. The Seller isn’t the only person motivated to get to the closing table. Realtors, mortgage lenders, and other parties all have lighter case loads during the off season. This means underwriters are able to get your loan approved faster and inspectors can get out to the property sooner. Realtors are also more available for inspection appointments and running down last minute details they may not otherwise have time for during the busy season.

Tax Benefits

There’s almost always a slight increase in closings right before the end of the year. Why? Because the purchase of a home can be written off for the current tax year. What better way to ease the shift in your budget than decreasing your tax liability and hopefully increasing your tax return. You don’t need to wait until December to make your purchase though, you’ll still reap the benefits sooner than someone who bought earlier in the year.

The Competition

We talked about competition in our post about selling during the off season but it also applies to Buyers. If the housing market in your area is hot, chances are you’ll end up priced into a less desirable home or you’ll find yourself engaged in a bidding war if you shop during peak season. But if you can wait until the off season you’ll have less Buyers vying for the same inventory.

Smooth Move

Are you planning on repainting before you move in or hiring the professionals to move your possessions? Many home improvements vendors and moving companies see their business decrease during the fall and winter months. This is good news for Buyers since you’ll be able to hire the vendors of your choice and take advantage of their open schedules. Some also offer off season rates or discounts to drum up business.

If you can put off your home buying until the off season you may have some added gains but it shouldn’t be the only reason to jump into the real estate market. If you’re thinking about buying check out our post to see if you’re really ready.

Buying a Home With a Significant Other

By

Domestic bliss looks a lot different today than it did even ten and twenty years ago. It’s no secret it’s been the norm for many couples to live together before they were married but now there are more couples who have no intentions of ever saying “I do”. While society is changing, laws are slow to catch up and that can leave many non-married people in a precarious position when it comes to their homes. If you’re thinking of buying a home with a significant other we have some things you should consider before you go house hunting.

Buying a Home With a Significant Other

Balance the Budget

Like any other perspective home buyer, we recommend you and your significant other analyze your financial situations and draft a budget. This should include how much each party will put towards the down payment, the mortgage payment, utilities, and home maintenance. You should also consider how much of a mortgage to take out. Should one of you get hurt or lose a job, will one person’s salary be enough to cover monthly payments, utilities, and basic necessities? These considerations will be helpful to your Realtor as well.

Ownership

Unlike a married couple, unmarried couples need to consider how they will title the home. There are three options:

  • Sole ownership: this is not recommended for a domestic partnership as it vest all of the ownership and equity into just one person’s name. If qualifying for financing is a concern for one party, we recommend speaking with an attorney and your mortgage representative to come up with a resolution to protect both parties;
  • Tenants in common: this form of ownership allows each party to hold an equal interest in the property (unless otherwise agreed upon and stated on the deed); each party has the ability to sell or lease their interest in the property without approval from the remaining party; it also means should one owner pass away their interest would be divested to their legal heirs not the remaining homeowner;
  • Joint tenants with the right of survivorship: holding title in this manner is most often used for couples who want the benefits of survivorship, meaning should one owner die by law their shares and interests in the property would be divested to the surviving owner.

Protect Yourselves

While Florida laws has specific statutes in place for divesting property during a divorce, domestic partnerships (different from civil unions) do not have the same precedence. With that in mind, we recommend partners with the help of an attorney, draft a cohabitation agreement and a property agreement. A cohabitation agreement will state each person’s obligations when it comes to the home. Some couples go so far as to list out not only financial obligations but also tasks necessary to keep the home in good order. A cohabitation agreement may also cover plans for who would move out should a breakup occur and a timeline for said plan. A property agreement will spell out what each person brings to the property and how the property and items within it will be divested should the relationship come to an end.

In the end, with these tips we hope you and your partner will find home sweet home.

Home Ownership: How to Take Hold of Your American Dream

By Leave a Comment

Many Americans feel that one of the cornerstones of the American Dream is home ownership. It’s not secret the market is still recovering from the recession years but with considerable improvements in home values over the last two  years coupled with still incredibly low mortgage interest rates, now is a fantastic time to take hold of your American dream.

Hand holding new home keys

Get Started

  • Check your credit history. You want your credit score as high as possible and your report needs to be squeaky clean. Aim for a score of at least 620. Remember – errors are not uncommon. If you find mistakes, contact the credit agencies immediately, as resolving them can take a lot of time and effort on your part.
  • Set your home buying budget and lifestyle budget and try it on for size for a few months. If you find that a larger mortgage payment makes your financial situation too tight for your liking, consider putting down a larger down payment or shopping in a lower price range. Only you know what you can afford, but the rule of thumb is approximately 2.5 times your annual gross income.
  • Get your mortgage pre-approved. Before you begin looking for your home, meet with a lender, review your finances and find out how much you can borrow. This will further help you determine a realistic price range, and could speed up the closing process.
  • Be sure you have ample funds available for a down payment. Lenders prefer 20 percent, but some will accept as little as 3.5 percent of the purchase price.

Seek Out Professional Help

Buying a home is complex. One of the key components to buying is working with an experienced, reputable and trustworthy real estate agent. He or she will be familiar with the local market and its fluctuations. They’ll also be familiar with different neighborhoods, local schools, and have on hand recommendations for inspectors, contractors, and engineers you may want to hire to thoroughly analyze the property before you make an offer. By working with a trusted and experienced real estate agent, you’re hiring a professional to help guide you through the buying process.

Once you have hired a Realtor, he or she will help you search for properties, advise you on how to make the best possible offer, draw up the necessary documents once an offer has been accepted, and guide you through the steps necessary to reach the closing table. Your relationship with your agent is a partnership so don’t feel hesitant to ask questions, voice your concerns, and have the Realtor advocate on your behalf.

Hounchell & Associates stands ready to provide you with unparalleled product knowledge, in-depth industry analysis, professional service and the honesty that has earned us a reputation for being a leader in the general real estate, pre-foreclosure, short sale and foreclosure markets in the Pinellas County area. Contact us today at 727-642-9107.

Editor’s note: This post was originally published in January 2011. It has been updated to reflect the most current information and edited for clarity and cohesiveness. 

What Is Radon? And Should I Be Worried?

By

Over the course of buying or a selling a home, you may hear about radon. Many people may ask “What is radon?” and “What’s the concern?” Radon is a radioactive gas that is virtually undetectable by our five senses. It’s the by-product of radioactive decaying uranium found naturally in rock, soil, and water. As the uranium breaks down it releases radon gas which rises through the ground into the air. It can also be dissolved into water.

Should I be concerned?

According to the Surgeon General, radon is the second leading cause of lung cancer among Americans, just behind smoking. Breathing radon gas and in some cases drinking radon in water over an extended period of time increases a person’s risk for health complications. The EPA has stated that any exposure over 4pCi/L is considered high and should be avoided. Uranium can be found in the ground in all fifty states and therefore so can radon. The EPA has classified the country into three zones depending on the levels of radon found in the area. Florida is classified mostly in zone 2 with a few counties listed in the higher zone 3. Radon gas can enter a home through cracks in the foundation, windows, utility fittings, and sump pumps.

What is Radon? Should I Be Concerned?

What should homeowners do?

Homeowners and buyers should both educate themselves on radon. If a homeowner is considering selling their home, they can have the home tested prior to listing. Sellers should be aware that any radon testing and their results need to be disclosed at the time of listing. If a person is considering purchasing a home, a radon test can be requested as part of the home inspection. If the results come back 4 pCi/L or higher the EPA recommends that a plan to mitigate the radon be agreed upon. There are systems  that can be installed and/or repairs made to the home to reduce the amount of radon entering a home.

While the EPA and Surgeon General have acknowledged radon is a serious issue, it doesn’t spell disaster for a home’s sale. Radon can be found in all types of homes, old and new. Mitigation systems and home repairs and modifications can reduce the levels in a home making it safe for occupation and an attractive property to market.

4 Tips for Buying a Foreclosed Property

By

Since the financial crisis of 2008, foreclosures have become a staple of the real estate market. Bank owned properties have been advertised as a steal for home buyers and then can be there are things to consider when purchasing a foreclosed home.

4 Tips for Buying a Foreclosed Property

  1. Find out what you’re buying. Foreclosed homes are “as-is” properties. Banks are unable to give a disclosure on homes that are being sold to remedy a foreclosure so it’s imperative that you obtain a comprehensive property inspection and a mold inspection. Be aware that most banks have very little, if any, room to negotiate when it comes to repairs so know what you’re willing to accept and what you’re not. Investigate the area as well. If the neighborhood is flooded with foreclosed or vacant homes, values may continue to fall and hurt your long-term investment.
  2. Put your best foot forward. Again when it comes to negotiating many banks are limited so it’s best to make your strongest offer immediately. Like most sellers, the bank will want to see a pre-approval letter from a mortgage company for any offer that needs to be financed. You should also be prepared to close as soon as possible with ready access closing funds and a clean credit history.
  3. Time may not be on your side. Getting an offer approved on a bank owned home is a notoriously slow process. There is usually an asset manager at the bank responsible for all the properties in a certain area and they need to review and approve or deny all of the offers received. It can be weeks before the bank responds to the offer. Once the offer is approved though the bank will want to move fast to close the deal so they can end their liabilities on the property.
  4. Don’t skimp. Bank owned properties can be rife with issues ranging from clouds on title to unseen physical damages. Purchasing title insurance and hiring certified, experienced inspectors will help protect you from unexpected issues that can arise.

If you’re considering purchasing a foreclosed property, working with a Realtor experienced in bank owned properties will make the process easier for all parties involved. Our team is ready to assist you contact us today at (727) 642-9107.

Generation Y Real Estate Trends Infographic

By

Born between the early 1980’s through 2000, Generation Y is now entering the real estate market.  This generation is different from their predecessors.  Having witnessed the effects of the recession and foreclosure crisis they are more pragmatic than previous generations.  They also have unique wants: more urban areas and greener properties.  They view internet and social media as a necessity, not a luxury and use it in almost every aspect of their life, including searching for a home.  Read our infographic below to find out more about Generation Y real estate trends.

Generation Y Real Estate Trends Infographic