home buying tips

Benefits of Buying During the Off Season

September 26, 2017 By Chris

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.

Common Listing Descriptions Defined

March 22, 2016 By Chris

Searching for your next home can be exciting but it can also be confusing. Home listings not only include beautiful photos of the property but also detailed descriptions that may not always be crystal clear. Time is precious and if you don’t learn what a “split floor plan” is until you’re walking through the house, you may end up wasting a lot of your time. We’ve rounded up several common listing descriptions you’ll find in Florida real estate and defined them for you so you have a better understanding of each listing.

Home Styles

Bungalow – usually one story, some may feature a loft area; the living areas are centered in the house and the bedrooms and other connecting rooms surround with small or no hallways; the outside is wide with a low pitched roof; some homes may featured Craftsman style details such as columns

Common Listing Descriptions Defined | Bungalow

Mediterranean – inspiration for these homes comes from southern Spanish and Italian villas; two stories are common with the bedrooms on a separate floor from the living areas; details include arched entryways, stucco exterior walls, tiled roofs, and sometimes verandas or balconies
Florida Style/Florida Ranch – unique to the region, the style is focused on unobstructed passage throughout the house; ceilings and windows are high; some homes feature large porches

Home Features

Block construction – a popular construction material in the 1950’s – 1970’s; homes with this feature a foundation or exterior built with concrete masonry units (CMU) or concrete blocks; this feature allowed for quick construction, energy efficiency, and are unaffected by pests such as termites
Split floor plan – this floor features the master bedroom suite separate from the other sleeping areas of the home; this has become a popular choice for homes built in recent years; it provides more privacy and quiet for people living in the same home but on different schedules; this floor plans is an efficient use of space with the living spaces usually separating the sleeping areas; it also offers a higher resale value since it adapts to multiple lifestyles
Modern design – this term has many connotations but it usually describes a style focused on neutral colors and accents, minimal / low profile designs, and often environmental friendly materials and appliances

Common Listing Descriptions Defined | Modern Design

Contemporary design – many descriptions will avoid using this word to describe a home simply because it is a fluid term; it describes was is popular right now

Understanding what you do and don’t want in a future home will help make the most out of your search both online and in person. Happy home shopping!

Home Ownership: How to Take Hold of Your American Dream

March 15, 2016 By Chris 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.

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.

Most Common Reasons Closing Is Delayed

September 1, 2015 By Chris

You’ve signed your real estate contract that included a specific date for closing. You’ll meet all the parties at the closing table on that date, right? Wrong…maybe. The closing date agreed upon in the real estate contract is tentative until the mortgage company and title company/attorney confirm it. There are times when that date may come and go without an end in sight. Why is that? Below we’ll examine the most common reasons closing is delayed.

The mortgage company hasn’t completed their underwriting. After the mortgage crash in 2008, lenders became much more strict in their underwriting guidelines. Buyers are now required to provide solid proof of employment, cash flow, debt information, and savings. Once the mortgage underwriters receive all of this information they need to complete their own verification process which can take time and if changes in the Buyer’s credit report or bank statements take place it may cause the underwriting process to start all over. The mortgage company will also require an appraisal and most likely a home inspection report. If the appraisal comes back lower that the agreed upon price the mortgage company will require a lower sales price or not the loan. If the home inspection report lists repairs are needed the mortgage company may not agree to lend the money until the repairs are made and reinspected.
There are issues with the chain of title. Running concurrently with the mortgage underwriting process, the title company is underwriting the title to the house. They are responsible for issuing a clear title to the Buyer, which means they need to account for the mortgage(s) being paid off at closing, ensure taxes are current (or will be paid at closing), and the owners listed on title are the same owners attempting to sell the property. Issues arise when a prior mortgage still shows of record, the chain of owners is incomplete or incorrect, the legal description to the property is incorrect, or any other questionable information that is discovered in their research of the public records. Because the contract states that the Seller will provide a clear title to the Buyers at closing, closing cannot take place until all issues are resolved and depending on the issue will dictate how substantial the delay may be.
Communication between all parties is lacking. All of the parties (or their representatives) need to communicate throughout the process. The mortgage company may have a last minute requirements they need the Buyer or title company to fulfill or the title company may not have availability for the closing date or time originally requested. Simple issues can turn into big headaches if communication breaks down.
The Buyer or Seller runs into money troubles. It takes a lot of cash to buy a home and even if the Buyer is mortgaging the property he or she will still need to bring money to the closing table. Many Buyers rely on the funds from the previous home to fund their new home. If the previous home doesn’t close by the time their home is they will most likely won’t have the funds readily available to close. On the flip side, if the Seller was expecting to simply break even on the property they may need to scramble to find available funds to cover any unexpected costs.
The final walk-through uncovers new problems. Sometime within 24 hours of closing, the Buyer and Seller (along with their agents) will complete the walk-through and sometimes it can unveil issues that were either hiding during the showings and inspection (holes in the walls, stains/rips in the carpet or gouges in the flooring) or the Sellers did a less than stellar job when they moved out leaving behind garbage or a house that’s in less than “broom swept” condition. If the Realtors and their clients cannot come to a quick resolution to the issues it can result in a postponed closing.

So what should you do if you’re closing is subject to a delay? First, stay calm. What’s done is done, there’s no point focusing on what should have been done only what can be done now. Try to respond to any requests from the lender or title company immediately and keep in touch with your Realtor and/or attorney throughout the entire process. If a situation arises that requires additional negotiation for a repair or credit at closing attempt to find some middle ground with the other party that will resolve the issue quickly and keep the ball rolling towards the goal of a closed and completed transaction.

How Do You Know You Found the Right House?

August 18, 2015 By Chris

Buying a home is a major investment, both financial and personal. You’re going to spend a consider amount of time in a house, making memories and living life, you don’t want to do that in a house you’re less than enthused about from the get go. Looking at house after house over the course of a few days or weeks can make your options start to blur together but you do eventually need to make a choice. So, how do you know you found the right house?

You Use Your Imagination

As you tour a house, you start to imagine living your life inside those walls. You can imagine your furniture filling the rooms and hosting your friends and families for parties and holidays.

It Meets Your Criteria

No matter how amazing a house is, if it has even just one item on your deal breaker list it’s not the house for you. Whether your deal breaker is a school district, commute, or something else that isn’t easily fixed, don’t attempt to “live with it” for the sake of a house. You decided on those deal breakers for a reason, stick to them. But if a house meets your basic needs (number of bedrooms/bathrooms, lot size, location, etc.) then this may be the one for you.

You Can Overlook the Flaws

This one is tricky because if you fall in love with a house that needs a complete remodel it may not be the right house for your budget. But if you find a house that has a few flaws that are a relatively easy and inexpensive fix or you can live with them and you can see the house for it’s worth before and after the flaws then it may be your house.

You Can Afford It

Rule number one of house hunting is don’t look at a house you can’t afford. It’s almost a guarantee you’ll end up in love with the house that is way out of your price range and every other house you see just won’t measure up.

Trust Your Gut

Many people say they know within a few minutes of being in a house that it’s the home for them. If your instincts are telling you “this is the one” and nothing stands out to raise a red flag, follow your intuition.

Don’t feel like you should ever settle for a house. A good Realtor will listen to your wants and needs and work with you until you find “the one”.

Pros and Cons of Living in a HOA

April 28, 2015 By Chris

The perfect home or neighborhood is such a subjective topic. One person’s urban oasis could be another person’s over-developed nightmare. The topic of a home owner’s association (HOA) isn’t exempt from opinions either. So what should you consider when deciding whether or not to live in a home owner’s association controlled community?

The Pros

Maintenance. Many HOAs handle the maintenance of lawns, planters, and common areas. Trash removal may also be a responsibility of the HOA. In colder climates, snow removal is also often handled by the HOA. This amenity can appeal to older, physically limited, or time-crunched residents.
Appearance. The HOA will have regulations for how the homes in the neighborhood should appear. The extent of the regulations can range from simply keeping the outside areas of homes free from clutter and in good condition to extreme rules related to approved paint color palettes and approval from the HOA before making any changes to your home.
Management. All HOAs have either a board or a management company, sometimes both, that are tasked with enforcing the rules of the association. If you have a conflict with a neighbor, the HOA may be able to mediate the issue without confronting your neighbor directly. The management will also organize votes over proposed changes to the neighborhood and handle any third party contractors (trash, landscapers, etc.).
Amenities. Some communities have a common building that can be reserved for entertaining, a gym, a pool, playgrounds, tennis courts, and/or sports fields.

The Cons

Fees. HOAs require each property owner to pay dues to cover the costs of running the HOA and maintaining the neighborhood. These dues could be paid monthly, quarterly, or yearly. The dues can be raised at any time and a larger payment, called a special assessment, can be assessed if a large improvement, such as a roof, needs to be made. The HOA fees are also not tax deductible.
Regulations. HOAs can be strict when it comes to the by-laws they have. Some HOAs can require approval before you can rent out your home. If you violate the by-laws, you can be fined, possibly multiple times until you remedy the issue.
Foreclosure. If you fall behind on your dues, the HOA can foreclosure on your home, although this is usually a last resort but still not an option you don’t want to risk.

4 Tips for Buying a Foreclosed Property

April 21, 2015 By Chris

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.

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.
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.
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.
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.

Prepare For Home Ownership

December 16, 2014 By Chris

It’s part of the American dream to own your own home but it may not always appear so simple to obtain that goal. Like any big undertaking, it takes planning and preparation to be successful. If home ownership is your goal for the new year, we have the steps you need to take that will help you prepare for that dream to become a reality.

Fine tune your credit. Analyze your credit report from each of the three major bureaus (TransUnion, Equifax, and Experian) for accuracy and areas that need resolution. If you have judgments or liens against your name, pay them in full or establish a payment plan with the creditor before you seek out a mortgage. If you find a error on your credit report, open disputes with the bureau(s) reporting the error and follow up to make sure the error is resolved. On average, lenders will want to see a credit score of at least 650. If your score is below this, make an extra effort to pay down outstanding debt on time, focusing on paying off debt with the highest interest rate first and close lines of credit you don’t use.
Determine how much house you can afford. Most buyers will need to finance their home purchase. A listing price can’t tell you everything you need to know about what you can afford. Depending on how much money you put down will affect how much money you will need to finance. You should evaluate your current monthly expenses (car payment, credit cards, student loans), then add in the monthly housing payment you want, and finally divide by your monthly gross income. (Example: $300 car + $250 credit card + $200 student loan + $1600 mortgage = $2350 / $5500 = 0.427 or 42.7%) The golden number for most lenders is 43%. This reflects the maximum debt-to-income ratio they’re willing lend to. If the number is at or below 43% you’ve found how much you can afford; if not you’ll need to readjust the amount of money you can afford to finance.
Start saving and continuing saving. Purchasing a home is not an inexpensive feat. In addition to the down payment, you’ll also need funds to pay closing costs. There are a multitude of small expenses, such as hiring movers or a rental truck and purchasing new furnishings, that add up immediately after a home purchase. Having a healthy savings account will help ease the burden on your daily living funds. You should make saving a priority by employing the “pay yourself first” rule and put a predetermined amount of money into savings every paycheck before any other bills are paid. If you’ve paid off a debt, such as a credit card, take the money you would have paid the credit card company and pay your savings account instead.
Play house. You’ve calculated out how much you can afford for a monthly mortgage payment but before you meet with a Realtor you should put your plans into action and live on the budget you’ve determined for three to four months. Doing so will allow you to get comfortable with the debt you’re about to undertake or show you where your budget needs adjusting before it’s too late.

Once you’ve prepared your financial house for an actual house, research and contact a lender to pre-qualify you and then begin working with a licensed Realtor who will help you find the house that will make all your preparations pay off.

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.

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