The post Real Estate Terminology and Lingo Explained! appeared first on Lakeland Real Estate.
]]>An adjustable-rate mortgage is one with an interest rate that can go up or down throughout the life of the loan depending on the movement of current interest rates. In other words, an adjustable-rate mortgage is one where the interest rate is not fixed throughout the life of the loan.
Amortization is the term used for the process of continually reducing mortgage loan debt over time. This is done by establishing scheduled monthly payments on a mortgage. The loan will start out with the interest amount of the payment being higher than the amount of the principal. But over time, the interest amount of the payment will decrease and the amount of the principal payment of the loan will increase.
A balloon mortgage is different from an installment mortgage. A balloon mortgage is paid in one lump sum called the balloon payment. These are typically used for short-term investment or construction loans and don’t usually require any collateral.
A bridge loan is one that a homeowner obtains by taking out a loan on their existing property to finance the purchase of another property. These are short-term loans usually between a few weeks and up to three years. A bridge loan is generally used so a buyer can proceed with buying a house while waiting for their current house to sell or close.
A broker is a person who has passed a broker’s license exam and received additional education beyond what the state requires real estate agents to have. All real estate agents are required to work under the supervision of a broker.
A closing in real estate is the final step in a real estate transaction. On the closing date, both the buyer and seller will sign all required documents for the sale and purchase of a home. The closing is when the property is legally transferred from the seller to the buyer.
A contingency is a condition set by a buyer or seller that must be met before a real estate transaction can be finalized. If any agreed-upon contingency is not met, the contract can be canceled.
A dual agency is illegal in the state of Florida and seven other states as well. A dual agency is when a single real estate agent represents both the buyer and seller in any given real estate transaction. It can also be when a single real estate agency represents both parties in a purchase, sale, or rental transaction. A dual agency real estate transaction is best avoided because it could intentionally or unintentionally sway the deal in one direction or another.
In the state of Florida, a transaction broker in real estate can provide a limited form of representation to a buyer, a seller, or both but doesn’t represent either party in a fiduciary capacity or as they would if they were a single agent. A transaction broker is legally required to be neutral whereas a single agent works and negotiates on your behalf to help you secure the best deal. A transaction broker presents offers and assists with contracts throughout the process without being an advocate for either party. Transaction Broker is very different from Dual Agency.
A down payment in real estate is in addition to the earnest money deposit. The home’s down payment is usually a percentage of the total cost of the house. So basically, earnest deposits are a good-faith gesture from the buyer to the seller that they will progress with the housing deal. And the down payment helps finalize the real estate deal by ensuring the property is in the hands of the buyer. Both the earnest money and the down payment will ultimately be put towards the purchase of the house unless the buyer cancels. If the buyer cancels, the earnest money goes to the seller for their inconvenience.
An earnest money deposit also called a good faith deposit, is the amount of money a buyer puts down on a house to show they are serious about purchasing it. This is different from the down payment.
Escrow is when a neutral third party holds the funds or other things of value associated with a real estate transaction. Once the real estate transaction has been completed, which is generally at closing, the third party will release said funds, etc. back to the buyer.
The fair market value of a property is the accurate valuation of a property based on the current market conditions and the value of other homes in the area.
Fee simple refers to a type of property ownership. Fee simple means the homeowner has the rights to their property indefinitely and those rights can be freely transferred or inherited anytime the owner chooses.
A fixed-rate mortgage is a home loan that has an interest rate that doesn’t change throughout the life of the loan, unlike an adjustable-rate mortgage that has an interest rate that could potentially change throughout the life of the loan.
A home appraisal is performed by a licensed appraiser who evaluates specific aspects of a property to come up with that home’s fair market value. A home appraisal is usually requested by a mortgage lender.
A leaseback, sometimes called rentback, is when a seller closes on a home and then leases it back from the buyer for a designated period of time. A leaseback is frequently used when a seller needs additional time to move. So basically, the buyer becomes the landlord and is paid for every day the seller remains in that home after the closing.
A property lien is a legal claim on assets granted by a court to a creditor against a property due to unpaid debt. A lien can attach to a property if there are unpaid property taxes, a court judgment, or any other unpaid bills. If the debt is not paid, the creditor can obtain access to the property. All liens must be paid in full before a clear title can be provided to the home buyer.
Loan origination occurs when a buyer submits a loan application to a lender and that lender processes the application. Most lenders charge an origination fee for this process.
The loan-to-value is the balance of a mortgage loan divided by the home’s value. This shows how much a buyer is borrowing from a lender as a percentage of the home’s appraised value. The higher the loan-to-value ratio is, the riskier a lender will view the loan.
The MLS is a database that gives real estate agents and broker members access to add new properties for sale in any given area. When a real estate agent lists a home for sale, he or she will then enter it into the local MLS. Additionally, a buyer’s agent will generally check the MLS records to look at similar homes on the market and what they have sold to help them determine a home’s fair market value. And a seller’s agent will do the same to help come up with a fair market value sales price for a home.
A lender will provide a pre-approval letter to a buyer after confirming a buyer’s debt-to-income ratio, credit history, and how much cash they have on hand. A mortgage pre-approval letter tells the buyer how much they can afford, the terms of the loan, and the loan amount. A pre-approval letter also gives the buyer an advantage. This is because if there are several offers on a home, sellers will usually choose an offer that is accompanied by a pre-approval letter versus one that is not.
A pocket listing is a property that is for sale but is yet to be made publicly available to other real estate agents or buyers.
A pre-qualification is a lender’s estimate of the amount a home buyer might be approved for once they get to the loan process. A lender will perform a quick assessment of a buyer’s financial situation based solely on the verbal information the buyer provided without any proof of their claims. A pre-qualification does not mean a buyer will ultimately qualify for a home. A pre-qualification is generally performed prior to beginning the pre-approval process.
A pre-qualification is different from a pre-approval. A pre-approval requires a home buyer to fill out an application and prove their creditworthiness. After the buyer has been pre-approved, the lender will give the buyer a letter confirming the exact amount they are pre-approved to borrow.
The principal balance of a mortgage is the exact amount of money owed to a lender before the interest is added. A buyer’s mortgage payment each month will consist of a principal amount, interest, and possibly other fees such as PMI, taxes, insurance, etc.
PMI is a type of mortgage insurance you might have to pay for in addition to your homeowner’s insurance. PMI protects the lender (not you) if you stop making payments on your loan. For most buyers, PMI is required if you put less than 20% of the sale price as a down payment on that home.
A rate lock lets a buyer lock into the current interest rate before the real estate transaction closes. Locking into an interest rate helps protect the buyer from market fluctuations between the time the contract has been signed and the deal closes.
The term REALTOR® should be written in all caps and include the circled “R” (registered trademark symbol) next to it because it is a registered trademark. But what is the difference between a REALTOR® and a real estate agent? The terms REALTOR® and real estate agent are the two most commonly misused and misunderstood words when it comes to real estate.
A REALTOR® is a licensed real estate agent who is also a member of the National Association of REALTORS® and must pass the NAR Code of Ethics course. Real estate agents are also licensed to sell real estate; however, they are not subject to additional requirements required under the National Association of REALTORS® code of ethics. That means a REALTOR® has taken their real estate license one step further by becoming a NAR member and is willing to abide by a rigorous set of required real estate ethics.
A seller’s disclosure is the information about a house that is provided by the seller. A seller’s disclosure is designed to disclose any home defects to a potential buyer to help that buyer make an informed purchasing decision.
A single agent, when it comes to a real estate transaction, is a broker who represents either the buyer or the seller but can’t represent both in the same transaction.
Staging is the process of decorating a home to highlight its features and use of space. Staging is designed to make a home more attractive to prospective buyers. In most cases, staged homes increase a home’s selling price and help them sell more quickly because it helps prospective buyers visualize how the space can be used.
Title insurance is what protects a buyer and a lender in the event a seller doesn’t have 100 percent lawful ownership of a property.
A title search is performed by a title examiner to uncover any title defects. A title search looks through the public records of a home’s history including sales, purchases, taxes, and any liens or encumbrances recorded against it. A title company or attorney will generally perform the title search.
What’s Next?
If you are thinking about buying or selling a home, or if you just have some questions first, please Contact Lakeland Real Estate Group today. We are a highly respected team of professionals who passionately serve the Lakeland, FL area. Lakeland Real Estate Group – A Real Estate Firm Representing Your Side, as a 4.9-Star Google rating. We’ve been helping buyers and sellers with all their real estate needs for more than 20 years. We look forward to helping you too!
About the author: The above real estate article “Real Estate Terminology and Lingo Explained!” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience in selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207.
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
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]]>The post An In-Depth Guide for Moving to Florida and Achieving a Florida Residency appeared first on Lakeland Real Estate.
]]>Another reason living in Florida is so great is because it is one of only seven states that don’t require you to pay a state income tax. And if you think that’s because Florida makes up for that by charging higher taxes on everything else, you would be wrong. Florida’s overall state tax collections are well below the national average.
So pack your bags and let’s get you Floridianized. We want to help you learn how to become a Florida resident so you can make the most of your Florida residency.
Let’s get started!
Here are a few pieces of advice, tips, and other resources that will help make your move to Florida a little easier before and after you get here.
Florida, like most states, uses a 183-day rule. This rule requires that a person must live in the state for 183 days, which shows your intent to call Florida your permanent home.
A reputable Lakeland, FL real estate agent will be your best resource for finding a new home in an area where there is plenty of employment, social opportunities, good schools, a good economy, etc. Your real estate agent will listen to your wants and needs, then give you the neighborhood options that match those wants and needs. He or she will then provide you with a list of available homes in that area. This is especially helpful if you are moving to Florida from another state and will be purchasing a house sight unseen.
Your real estate agent will have all the information you need about any given area so you can make an educated decision about whether or not that area is where you want to call home. That might include nearby jobs, transportation, schools, nightlife, shopping, restaurants, etc. Your agent will also be communicating with and negotiating with sellers on your behalf. So it’s important to spend some time finding a real estate agent you are comfortable with and one that is more than willing and able to be an effective liaison.
Once you’ve purchased a house, make sure you submit a United States Postal Service Change of Address form. Then go ahead and contact all your current affiliations and give them your new address.
It’s best to start contacting your new Lakeland utility companies about two to three weeks in advance of your scheduled move. This will help ensure they have plenty of time to connect your services, so everything is on when you arrive.
When moving to the Lakeland, Florida area, you are able to enroll your kids in school online. You will be asked to fill out a New Student Registration Form (the online new student registration forms can be found at the links about halfway down this page).
A new student registration form will be required for each student you are registering. Once you have completed and submitted the required information and documents, the school registrar will contact you to schedule a meeting. This meeting is to verify those documents.
The school will need the following documents from you.
Moving scammers, especially intrastate moving scammers, are a dime a dozen. Take the time to learn the ins and out of an intrastate move. This involves knowing your rights and responsibilities, selecting a reputable mover, knowing the difference between movers and brokers, and how to safeguard your move. You should also learn the red flags for scam movers so you and your belongings don’t get taken. Here is a great overall resource from the Federal Motor Carrier Safety Administration (FMCSA) and it covers just about everything you need to know when it comes to planning and protecting your move.
Homeowner’s or renter’s insurance doesn’t always cover loss or damage to your belongings while they are in transit. So it’s best to talk with your insurance agent to learn if your current insurance does in fact cover your belongings during a move or if you need to purchase additional insurance specifically for that.
Bringing your firearms to Florida is something many people don’t really give a lot of thought to. However, this is one of the things you need to plan for in advance. This will make sure you aren’t breaking any laws. Florida is considered very second-amendment friendly. However, if you are bringing your firearms, you need to learn how to transport them legally.
Disclaimer: Please remember I am not an attorney, and this is not legal advice. You should always perform your own due diligence when it comes to the legality of owning and carrying a firearm in Florida.
When moving to Florida with your dogs and cats, your pet(s) must have the following.
A current rabies vaccination as long as the pet is three months of age or older. And you must carry proof of your pet’s current rabies vaccination provided by a licensed veterinarian.
You will also need an Official Health Certificate if the pet is not privately owned and traveling with its owner.
Once you get to Florida, immediately find a local veterinarian, and have all your pet’s health records transferred.
If you are moving livestock or any animals other than cats and dogs, you will need to research what all this involves for your specific situation. There are different rules for different types of animals. For example, equine, exotic, poultry, sheep, swine, and/or cattle. You can check the FDACS.gov website to learn more.
Part of becoming a permanent Florida resident involves actually living in a house or other dwelling. You can then file a Declaration of Domicile at the county courthouse (Lakeland is in Polk County) if you need to; however, it is not required. The main purpose of a Declaration of Domicile is to help sever the ties you have in other states and is mainly used for income and estate tax purposes.
You must take your vehicle to a DMV office so someone can verify the VIN. You are required to register your vehicle(s) within 10 days of moving to the state. License plate offices are separate from the DMV offices. You can register your vehicle at the tax collector’s office or through a private auto tag agency. Please keep in mind that you will need to provide the proper documentation before you can register your vehicle.
You are required to obtain Florida insurance for your vehicle(s) through an insurance agent that is licensed to sell insurance in Florida. This goes for any vehicle that is located in Florida.
You might also check with your insurance agent about any other insurance you have such as life insurance. Your insurance carrier must be licensed in the state you are moving to; otherwise, you will have to change providers, and this might mean you have to retake your physical exam.
When you move to Florida, you must transfer your out-of-state license to a valid Florida driver’s license within 30 days of establishing your Florida residency. Establishing residency is defined as starting employment, work, or school, registering to vote, filing for a homestead exemption, or having lived in Florida for more than six consecutive months.
You will need the following documents to transfer your out-of-state driver’s license to a Florida driver’s license.
Florida is a Closed Primary State. That means when voting in a primary election you are only able to vote in the party with which you are registered. You can apply for a voter’s registration card at any time. However, you have to be registered in the state by what’s called the book closing date. This is normally the 29th day before each election.
Florida now allows you to register to vote online. All you need to do to register is fill out the Florida Voter Registration Application.
Before you can receive a homestead exemption, you must have lived in that home on January 1st of that year. You can then file for a homestead exemption anywhere between January 1st and March 1st.
A homestead exemption is a property tax exemption that reduces your overall property tax burden each year you live in that home.
One other thing to keep in mind for future reference is that if you ever move, Florida has what’s called a “Save Our Homes” benefit. The term that is used for this benefit is called “Portability.” Portability allows a property owner to transfer all or some of a previous Florida homestead exemption to a newly established homestead within Florida.
Living in Florida is like being on a continual vacation. People travel from around the world just to enjoy everything Florida has to offer. But lucky for you, you already live here. That means you have endless access to fun things to do in Florida and can take as many day trips and/or vacations as you wish without having to pay for airfare, etc.
Once you’ve exhausted the traditional fun things to do in Florida, you can work your way through this list of 306 cool and unusual things to do in Florida. The best part of all this is that everything is right in your own backyard. And after years and years of exploring and enjoying everything Florida has to offer, you can go back to the beginning and do all those things over again!
Welcome to the Great State of Florida! We’re Glad You’re Here!
Car Shipping – To ensure your car is transported safely and delivered when you want it, there are some things you should do to prepare.
How to cut Moving Costs – If you want to avoid handing your hard-earned money over to movers and moving boxes, then there are some moving tips for you to prepare for your move.
Best Moving Truck Rental Companies Reviewed – Are you considering renting a truck to move? You are not alone, as many folks decide to move by themselves rather than hire a moving company.
If you are moving to Florida and need someone in your court who knows the real estate market, the landscape, and all the intricacies of the Lakeland area, please Contact Lakeland Real Estate Group today. We are a highly respected team of professionals who have been listing and selling homes in this area for more than 20 years.
About the author: The above real estate article “An In-Depth Guide for Moving to Florida and Achieving a Florida Residency” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience in selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
The post An In-Depth Guide for Moving to Florida and Achieving a Florida Residency appeared first on Lakeland Real Estate.
]]>The post Do You Really Need Title Insurance? appeared first on Lakeland Real Estate.
]]>Here we are going to define what is title insurance, if you need it, how much it costs, the benefits of title insurance, and other important information you need to know before making any decisions about whether you really need it.
Let’s get started.
Just like any other insurance, title insurance protects you from potential losses. Title insurance protects the home’s purchaser or the mortgage company (depending on the type of policy you buy) from a variety of potential losses. More about that in a moment.
Title insurance protects the insured entity from financial loss and any legal claims due to things like title defects, undiscovered liens, or any other title issues that are covered under the policy.
So basically, title insurance protects you and your property from financial loss and legal claims. It ensures that you are in fact the owner of said property and aren’t held liable for any issues with the title that you didn’t cause. That means if someone tries to sue you for the property or for any unpaid liens against the property, etc., your title insurance policy will protect you from any negative event your policy covers.
A standard title insurance policy will normally protect the insured against defects in the title that are not discoverable when researching public records. Some of the issues covered include the following.
Here are some of the things a title insurance policy won’t cover.
A title commitment is something you are given before the home closes and a title policy is what is issued after you have closed on your home. The title commitment is proof that your chosen title company is willing to provide you with title insurance.
All lenders require homebuyers to pay for a title insurance policy as part of the mortgage process. However, in addition to paying for the lender’s title insurance policy, it is a good idea for you as a homebuyer to purchase your own as well.
If you pay cash for a home, you don’t have to purchase title insurance; however, you really should if you want to protect yourself from any number of potential legal issues that could arise. And, if you ever have to defend your title, the title insurance will cover the costs of any third-party negotiations. The title insurance will also pay for any legal fees you might incur.
Here in Florida, depending on the terms and conditions of the contract, either the buyer or the seller hires the Title Company or an attorney and pays for the owner’s title insurance policy. A title insurance policy is issued by a Title Company or an attorney, who handles the closing. This agent will commence with the title search once the purchase contract for the property has been completed.
One of the contingencies in purchasing a property is ensuring that the home has a clear title. Having an issue with the judgments or liens will certainly derail a home purchase if the seller can’t correct the issue. This is one of the reasons why homes do not close.
This policy protects the new owner of the property against losses that arose prior to buying the property such as fraud, errors, or omissions. It also protects the buyer from other risks covered in their title policy.
The lender’s title policy, sometimes called a loan policy, is usually purchased by the home buyer on behalf of the mortgage company. This protects the lender’s interests in the property until the mortgage has been paid in full. All lenders require a home buyer to pay for a lender’s title policy as part of the mortgage approval process.
In most cases, the seller pays for title insurance on behalf of the buyer. And the home buyer is required to pay for the title insurance for the lender as part of the approval process.
In Florida, what you pay for title insurance will depend on the amount you are insuring. So basically, the amount you pay for your title insurance policy will be based on the amount you are paying for the property. For example, a house that costs $100,000 would pay $5.75 per thousand in title insurance so that title insurance would be a total cost of $575. The calculated cost varies and depends on the price of the home.
The following rates are calculated and assessed per every $1,000. Please see the cost increments below.
Other expenses could include a settlement fee, land survey plus an elevation certificate, a recording fee deed, and a recording fee mortgage all of which would be an additional cost per item.
When you buy an owner’s title insurance policy and a lender’s title insurance policy together, you might be given a discount because you are buying both policies at the same time. However, if you decide not to buy the owner’s policy, you might have to pay the full price of the lender’s policy.
There are several reasons you might have to pay more for a title insurance policy. For example, the smaller the down payment you have, the more you will have to pay for title insurance. Or, if you have a lower credit score, that could also raise the cost of your title insurance. And lastly, the larger your loan amount, the more you will have to pay for your title insurance.
Many people question whether title insurance is really necessary or if it’s a waste of money. Here are some of the benefits you will receive if you buy title insurance.
The owner’s title insurance policy is effective for as long as you or your heirs retain the property. The lender’s title insurance policy is only effective until the mortgage is paid in full.
No, unlike homeowner’s insurance, you don’t have to renew your property’s title insurance policy. It is good for as long as you or your heirs own the property.
Title insurance is a one-time fee, so you only have to pay for it one time for each property you own. And it is good for as long as you or your heirs own the property.
If you are refinancing your home, you will be required by the mortgage lender to purchase a lender’s title insurance policy as part of the approval process. Lenders won’t fund a mortgage without a lender’s title insurance policy in place. Whether or not you choose to purchase an owner’s title policy at that point is up to you.
Yes, you can buy a title insurance policy after you have closed on your property, but it’s not a good idea. If you don’t purchase your title insurance policy until after you have closed on the property, any issues that come up after the closing and before you purchase the title policy might not be covered.
Here are just a few of the issues that could arise after you close on your home. These scenarios might help convince you that purchasing title insurance is extremely important and necessary for your peace of mind if nothing else.
Scenario One:
What if the seller of that home owed money to a contractor and a lien was put on the house and that lien wasn’t detected? A title insurance policy would have coved this issue so you wouldn’t have been responsible for that debt or risked losing your home.
Scenario Two:
What if the previous owner of that home had a child out of wedlock and that child was previously unknown to the heirs and that child then decided to make a claim? A title insurance policy would have covered this issue so you wouldn’t have lost your home.
Scenario Three:
If you bought a title insurance policy and that title company checked the public records but didn’t find any issues. Then a few years later it was discovered that someone filed a few papers wrong and went back to correct them. However, now, because of the errors, a previously undetectable issue was found, and the title could now be challenged. Your title insurance policy would cover all legal and financial liabilities and expenses.
Scenario Four:
If any previous owner (and it doesn’t necessarily have to be the person you bought the property from) owed any given contractor money, that contractor could put a lien on the property. This could happen even if you were not the one who owes money to that contractor. A title insurance policy would cover this issue, so you aren’t responsible for that debt and you don’t lose your home.
It could have been anything from roof or foundation repairs, replacing an HVAC system, or anything else really. It doesn’t matter, that contractor has the legal right to put a lien on the property if they are due money from working on your home. This is something that if you had purchased a title insurance policy that title company would cover the issue even if they were not able to previously detect it. However, if you didn’t buy title insurance, you would be responsible for paying for this debt. And if you don’t, you could ultimately lose your house.
If a title insurance company goes out of business and is declared insolvent, there is a state guarantee association and an associated guaranty fund that kicks in. The state guarantee association will then transfer the insurer’s title insurance policy to another insurance company if one is available or it might continue to provide the title insurance policy coverage itself.
If you want information about buying a home or you just have a few questions about the process first, please Contact Lakeland Real Estate Group. We have been helping buyers for more than 20 years and we will do everything in our power to make the purchase of your new home a seamless stress-free experience.
About the author: The above real estate article “Do You Really Need Title Insurance?” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience in selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
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]]>The post Must-Know Facts About Florida Homestead Exemptions appeared first on Lakeland Real Estate.
]]>But wouldn’t it be great if there was a way you could make owning your home a little cheaper?
There is and it’s called a homestead exemption. Keep reading, and we’ll tell you all about it.
A homestead exemption is a property tax exemption. The homestead exemption is a legal way to protect the value of your home from property taxes, creditors, and any other unforeseen circumstances such as the death of a spouse. Homestead exemption laws can be found within state statutes and constitutions.
A homestead exemption is the exemption of property taxes on a home based on a dollar amount or percentage of a property’s value. That dollar amount or percentage is excluded when calculating any given home’s property taxes. This, in turn, lowers the homeowner’s property taxes every year until he or she moves. There are some requirements to claiming a homestead exemption though (more about that in a moment).
The way this works is that the dollar amount or percentage of any given homestead exemption is subtracted from the value of that home. The property taxes are then calculated on the remaining amount and that is the amount the homeowner will pay in property taxes.
For example (this is just an example for simplicity, not a true-to-life calculation):
Home Value = $200,000
Homestead Exemption Percentage = 50%
Homestead Exemption Amount = $100,000
Remaining Amount (remaining value of the home) = $100,000
The taxes due on this home would be calculated based on the remaining value of the home, which in this example would be $100,000.
But wait…there is more to it than that. Let me explain.
The homestead exemption is calculated just as we explained above; however, this is how it’s broken down and applied.
Florida allows for up to $50,000 to be deducted from a home’s assessed value for a homestead exemption. There are some requirements for qualifying for a homestead exemption which we will talk about in a moment.
Here is the breakdown. A $25,000 exemption is applied to the first $50,000 (including school district taxes) of a home’s assessed value. That means the first $25,000 of a home’s value is entirely exempt. The remaining $25,000 of a homestead exemption applies to the value that is between $50,000 and $75,000 but does not include a benefit on the school tax.
If your home is your permanent residence, and you owned your home as of January 1 of the current tax year, then you can apply for a homestead exemption. However, that home must be your primary residence. So, if you are a part-time resident of Florida, such as a snowbird, you would not qualify for a homestead exemption.
If you moved into your home after January 1 of the current tax year, then you will have to wait until the following year to apply for a homestead exemption. That means you will have to pay the full amount of the property taxes for the current year.
No. Your homestead exemption will automatically renew every year as long as you continue to qualify for the exemption. That means if you decide to rent out your home, that home is no longer your permanent residence, there is a change in ownership due to a sale, divorce, or death—in those circumstances, you would lose your homestead exemption benefit. Additionally, you are obligated to notify the state of those changes; otherwise, you could incur a homestead tax lien that accrues interest and comes with a substantial penalty.
However, a change in your homestead exemption status doesn’t always mean your property taxes will go up. Depending on the circumstances, you might have other options (more about that in a moment).
There are several ways you can apply for a Florida homestead exemption in Polk County.
If your home is your primary residence, and you owned your home as of January 1 of the current year, then you are eligible to file for a homestead exemption. To file for a homestead exemption in Florida, you will need the following documentation to apply.
In Florida, the filing deadline for a homestead exemption is March 1 of each year. You must file for your homestead exemption by March 1 unless that day falls on a Sunday, in which case, you would have to file by March 2.
The main benefit of a homestead exemption in Florida is that you will pay less in property taxes. There is also what’s called a “portability” benefit which we will talk about in a moment. A homestead exemption will also protect a homeowner’s primary residence from creditor attachments, as well as applying special property tax exemptions and caps that are designed to help prevent a homeowner from losing their home due to rapidly increasing property values.
There are additional tax benefits for those who are elderly, disabled, widows, veterans, and first responders disabled in the line of duty.
Let’s break these down one by one.
In some Florida counties (and Polk County is one of them), the local governments allow an additional homestead exemption of up to $50,000 for the elderly. You have to be 65 or older, submit a statement of income, meet the income limit and have the legal right to the home of your permanent residence to qualify.
There are additional homestead exemptions for those with various disabilities. These benefits range from $500 to a complete exemption from paying property taxes depending on the disability.
There is an additional $500 homestead exemption for widows and widowers. However, if you remarry, you lose that exemption. Additionally, if you were divorced before the death of your spouse, you won’t qualify for this benefit.
There are specific homestead exemption benefits for different situations. These exemptions are for Florida homeowners who are first responders disabled in the line of duty, deployed service members, or veterans of the U.S. military who were honorably disabled while in service.
The Save Our Homes (SOH) program was approved by voters in 1992. It is an amendment to the Florida Constitution. This amendment is known as Amendment 10. SOH limits the increases to a homesteaded property to 3% or however much change there is in the Consumer Price Index (CPI), whichever is less. This increased cap starts at the beginning of the year after your homestead exemption is granted.
Before the Save Our Homes program, if your home’s value increased, the taxes were calculated on the new value regardless of how much it went up. And because oftentimes the value of homes increased so much year over year, it was causing some people to lose their homes because they couldn’t afford to pay the new higher monthly mortgage payments. The Save Our Homes program limits this from happening because it caps the taxable amount of the market value of your property to 3%.
This SOH benefit on your homestead exemption stays with your property indefinitely or until there is a change in ownership or other disqualifying homestead exemption action. However, if you have major property improvements done, this could also change the amount of property taxes you have to pay. This is because with the property improvements, your home will be worth more and, therefore, the market value will be higher resulting in higher property taxes.
A homestead exemption will always belong to the homeowner who filed for it. That means a homestead exemption is not transferrable from one homeowner to the next homeowner. Therefore, anytime a home is sold or otherwise conveyed to a new owner, the homestead exemption is removed. The new homeowner must then qualify, apply for, and receive their own homestead exemption for that property based on their own qualifications for such.
Any non-homesteaded property such as a residence that’s not eligible for a homestead exemption, vacant land, commercial property, etc. would not receive the benefit of the 3% SOH cap. This also applies to tangible property, agricultural property, and any homesteaded property that has been sold or conveyed to a new owner during the current calendar year.
Florida Homestead Portability is another benefit that comes with your homestead exemption. This benefit known as portability lets a homeowner with a homestead exemption on their home take their current accumulated Save Our Homes benefit up to $500,000 with them when they move to a new home. The only caveat is that the homeowner must file for a homestead exemption on their new home within three years of moving from their old home.
The amount of this benefit that can be transferred will depend on the just value of the homeowner’s new home, and it can’t exceed $500,000. A homeowner can apply for this benefit the same way as he or she would apply for any other homestead exemption which is in person, by mail, fax, or email.
Additionally, you will still need to show the same types of proof of residency which could include a Florida driver’s license, a current utility bill, a current bank statement, etc. And once this homestead exemption benefit is transferred, it doesn’t have to be renewed.
Click Here for a more detailed explanation of how portability works and a PDF that provides a great overview that makes this concept easier to understand.
Let’s take an in-depth look at what a property owner needs to do to start the process of a property tax assessment appeal writes Bill Gassett in his article.
Homeownership also conveys many different tax advantages that are not available to renters and can help you save big when it comes time to file your taxes at the beginning of the year, explains Paul Sian in his article.
If you have questions about homestead exemptions or anything other real estate matters, please don’t hesitate to Contact Lakeland Real Estate Group. We are respected members of the community and have been helping people buy and sell their homes from here and afar for many years, and we’d love to do the same for you!
About the author: The above real estate article “Must-Know Facts About Florida Homestead Exemptions” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience of selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
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]]>The post The Dangers of Writing Multiple Offers at the Same Time appeared first on Lakeland Real Estate.
]]>It’s no mystery that the housing market has been a sellers’ market for many years now. Buyers are becoming more and more frustrated because they spend a significant amount of time looking for the perfect home and when they finally find one, they lose it to someone else.
Unfortunately, this has led to an unprecedented number of people opting to put simultaneous offers on multiple homes hoping that they might actually get one of them.
This is wrong on so many levels. However, there are alternatives to putting in simultaneous offers (more about that in a moment). But first, let’s go over the legality and morality of putting in simultaneous offers on multiple homes.
Yes, it’s legal; however, some jurisdictions might not allow it or have certain stipulations that go with doing so. Therefore, you should check with a real estate attorney if this is something you choose to do. Your local real estate agent should also be able to give you some information about doing this for each home and location you are considering.
Just because something is legal doesn’t necessarily make it ethical. In a hot sellers’ market, people tend to want to put in simultaneous offers on multiple homes in the hopes they are able to snag one of them. However, while this might be legal, the consensus is that it is definitely not ethical.
Put yourself in the seller’s shoes. You signed a legal, binding home purchase contract and the seller accepted it in good faith. The seller took their house off the market and agreed to sell it to you. If you use one of the legal but unethical ways to get out of that contract because one of your preferred offers was accepted, this is morally and ethically wrong.
You never know what type of position the seller is in. Perhaps they need to sell their house quickly for whatever reason. They might need the money for a health-related emergency, to avoid foreclosure, or really any other pressing reason, you just never know.
Regardless of the reason, that seller, in good faith, took their house off the market for you. If you cancel that contract to accept another offer, you have cost that seller time, money, and possibly their or someone else’s life if that money was to be used for a medical emergency. Yes, this could be that serious because you never know why someone is selling!
When putting an offer on a house without an inspection period and signing a real estate purchase agreement, you will, in almost all cases, be required to submit an escrow deposit along with your offer. A typical escrow deposit ranges between 1% and 3% of the purchase price. And in a seller’s market, you will want to put down as much money as possible if you want any chance of your offer being accepted. That means if you are looking at houses around the $300,000 range, at 3% the escrow deposit would be $9,000.
Let’s say you decided to put an offer on three different houses simultaneously. You will have put down somewhere in the $27,000+ range in escrow deposits. Then, let’s say all three sellers accepted your offers. What now?
Well, that means you will lose $18,000+ because, if you are like most people, you won’t be buying all three houses. So not only have you lost $18,000+, but you will also have caused two of the sellers a significant amount of undue stress and hardship.
Additionally, just think how much more of a house you could have purchased with an additional $18,000+. Or perhaps, you could take that large amount of money and put it towards your child’s college fund, taken a family vacation, bought a boat, car, or something else you’ve always wanted.
As you can see, when you put everything into perspective, it doesn’t make sense to submit multiple simultaneous offers when all you really have to do is to be patient. There will always be houses for sale, and you will get one at some point. In fact, your patience could pay off, and you might just find a better house in a better location once everything is all said and done.
Most local real estate agents regularly communicate with each other. Therefore, the chance of one or more agents finding out that you put an offer in on two or more houses at the same time is highly likely. If it becomes known that you put offers in on multiple houses at the same time, the result could be that none of the agents will take your offer seriously and that could result in you losing all of them. So what’s the solution?
Instead of submitting multiple offers, put an offer on the house you prefer. Then have your agent tell the seller’s agent that you need an answer today and if you have not heard back from the seller today you will be putting an offer on another home tomorrow. This will eliminate any long, drawn-out wait for a seller who is trying to hold out for a higher offer. This could also prevent you from losing out on your second choice home because you waited too long to submit an offer.
In a hot seller’s market, it is even more important than ever to hire a Lakeland buyer’s agent with a strong record and background in real estate. A buyer’s agent who knows the local market inside and out. A buyer’s agent who knows how to work the system and be an influencer who can help everything work to your advantage.
But that’s not the only reason to hire a strong buyer’s agent. A strong buyer’s agent can also help keep you out of legal trouble. You need a buyer’s agent who knows the legalities of placing multiple simultaneous offers and what happens if more than one of your offers is accepted.
You need an agent who can effectively express that if you choose to go the multiple offer route, it could possibly land you in a lawsuit if multiple offers are accepted, and you are only qualified to purchase one of them.
An experienced buyer’s agent will have the experience and knowledge to be able to effectively educate his or her clients and help them understand that they need to be firm and confident in their offer to the seller. An experienced buyer’s agent will also be able to assess the true value of a property and have the experience to craft a strong enough offer to prove why their client is the best option.
This is important because the “strength” of any contract will beat an empty promise of more money any day of the week.
Don’t let the fact that we are in a sellers’ market stop you from finding and getting the home of your dreams. There are some powerful things you can do to help the pendulum swing in your direction.
Here are some tips for getting a seller to accept your offer over other offers on the table.
Submit your offer with complete approval, not just a pre-approval letter. You need to show the seller that you are approved and ready to go. Attach a complete approval letter with your offer. This will show the seller proof that you are completely approved and all you need to do now is find a house. Knowing that there is no chance of losing the sale due to the buyer not being approved is a huge selling point. It also significantly cuts the length of time until they can close.
Cash is definitely king when it comes to buying real estate. Therefore, if you can, make an all-cash offer and that will greatly increase the chances of your offer being accepted.
Keep in mind that if you are financing a home, whatever house you buy will have to appraise for the amount you offered. So you can offer a higher than the asking price offer, but if it doesn’t appraise for that value the mortgage company won’t approve your loan for that house.
However, there is a solution to this dilemma. Paying more than the asking price is always a good strategy if you want the seller to select your offer over the others. The caveat is that you might need to pay out of pocket for the amount between what the house appraised for and the amount you offered for the purchase.
In the past, it was often recommended that the buyer submit a letter to the buyer telling them how much they loved their house and why. However, in recent years, this has become problematic. While this sounds like it might be a good idea, it’s not. Doing so could violate a variety of fair housing laws or offend the seller in any number of ways. You never know what the seller might be going through at any given time, so it’s best to just skip the letter.
Many buyers include contingencies with their offers. A contingency is a condition that has to be met before the buyer will be able or willing to complete the sale of a home. An example of a contingency might be that the buyer has to sell his or her house before they can purchase the seller’s house. Additionally, be sure you don’t waive any contingencies that the mortgage company won’t agree to such as waiving the need for a home appraisal.
Sometimes it’s the little things that sway the seller’s decision. Try offering to pay the seller’s closing costs. This puts more money in the seller’s pocket which could be the one thing that seals the deal.
Another attractive option is to be flexible with your closing date. The seller might have a specific timeline for moving. Therefore, if you are flexible and allow the seller to name the closing date that could be helpful. You could also tell the seller you will close now and allow them to stay in the house for as long as they need to before you take possession. Just remember to include specific dates for this in the lease-back contract. That way everything is legal, above board, and enforceable should an issue arise.
If you are looking for a house, we can help. We know the Lakeland, FL area extremely well and have helped buyers and sellers navigate the housing landscape for more than a decade. That includes the most successful approach for buying a house in a sellers’ market and selling a house in a buyers’ market. So Contact Lakeland Real Estate Group and let us show you just how quick and easy buying a house in Lakeland can be. You won’t find a more qualified, compassionate REALTOR® in the area. We look forward to working with you!
Ever wondered how your real estate agents get paid? Vicki Moore goes into detail about how a brokerage may pay their agents, who pays real estate agents, how much they get paid, and much more in her article: “How Do Real Estate Agents Get Paid?”
What is Days on Market (DOM) in Real Estate is another terminology Joe Boylan explains in his article that you should pay great attention to this when searching for homes.
Bill Gassett wrote: “When you own a home, you can enjoy some tax benefits that renters don’t have access to. These tax advantages of owning a home and fulfilling the American dream cause many to abandon their plans to continue renting for an indefinite period.” Owning a home can have some incentives. He explained more about the tax advantage of owning a home in his article
Danny Margagliano wrote that while newly built homes offer lots of advantages like modern appliances and customizable features, older houses offer more flexibility to the buyer, both in cost and location. He goes further into detail with his article: Is a New Construction Home Right For You
About the author: The above real estate article “The Dangers of Writing Multiple Offers at the Same Time” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience of selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
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]]>The post Should I Hire a Buyer’s Agent? appeared first on Lakeland Real Estate.
]]>That’s great! But do you know where to start?
Are you sure?
Buying a new home isn’t something you should jump into without first preparing yourself for what’s ahead. There are some pretty important things that need to be done first, as well as some common home buying mistakes you will need to avoid.
The best way to avoid any home buying mistakes is to hire a buyer’s agent who can and will help you avoid those mistakes. So let’s dive right in and learn about what you need to do and know before you start looking for a new home. Let’s also talk about the one thing you must never do, if you want to protect yourself from being taken advantage of and potentially losing out on thousands of dollars.
Can you guess what that is?
Hint…hire an experienced buyer’s agent!
In real estate, a buyer’s agent is a real estate agent or broker who represents the buyer and has a fiduciary responsibility to do everything in the best interest of their client. This requires a high level of trust between both parties. More on this in a moment.
Once a real estate agent or broker officially takes on a client, be it a buyer or a seller, that real estate agent then has a legal responsibility to make sure everything is done in their client’s best interest. That means the agent’s responsibilities must all be legally carried out and no confidential information should ever be given to the other party without that party’s written permission.
For example, a buyer’s agent has a legal responsibility as a fiduciary to not disclose to the seller or seller’s agent that their client is willing to pay a higher price for that home if the seller was to reject the initial offer, even if it would mean the buyer’s agent would receive a bigger commission for that higher-priced offer. It also means the buyer’s agent should not try to influence the buyer’s decision in any way for personal gain. Additionally, the agent must not release any personal information to the seller or seller’s agent about his/her client’s place of employment, education level, or anything about their finances, etc. If any of the fiduciary responsibilities are broken, there are legal ramifications available to a client and all real estate agents know this.
A buyer’s agent will have in-depth knowledge of the market area, as well as access to information and details that might not be readily available to the general public.
Here is what a buyer’s agent will do for their clients.
These are just a few of the many duties of a buyer’s agent. A buyer’s agent does so much that it’s impossible to list everything on one page—literally!
A listing agent represents the seller and the seller’s best interest. So you can go through the listing agent to buy any given house, but you really shouldn’t. Only when you choose a buyer’s agent can you be sure you are receiving an unbiased relationship and one with a legal responsibility to do everything in your best interest.
Some people think going through the listing agent will save them money when buying a home. However, what you think you are saving is generally far less when compared to what you could have saved overall using a buyer’s agent who is working exclusively for you versus the listing agent who is working for their customer—the seller.
Remember, the listing agent is working in their client’s best interest, not exclusively yours. When using a buyer’s agent, your agent will use his/her negotiating skills and market knowledge to get you the best possible price, which could far exceed what you might have saved otherwise.
Additionally, having a buyer’s agent is like having someone on your side who knows exactly what to look for when showing you a house. A buyer’s agent will be able to immediately recognize red flags and possible future problems and issues. This is because they do this for a living and can spot potential issues immediately. There are things such as structural issues, pest control issues, potential mold issues, roof and or leaking issues, as well as being able to recognize when a home has some aging major components. All of these things could end up costing you thousands of dollars in the long run. Money you probably wouldn’t have otherwise anticipated spending sooner rather than later. This alone makes having a buyer’s agent priceless!
So YES! You should always hire a buyer’s agent when buying a home.
Once you’ve found a real estate agent you like and feel comfortable with, that agent will probably ask you to sign a buyer’s agreement, or at least they should. The Florida buyer’s broker agreement is generally a three to six-month contract that is extremely important because it protects your interests as a buyer. It also spells out the responsibilities of both the buyer and the broker.
Here’s what’s included in a buyer’s broker agreement.
As a buyer, do you really have to sign a buyer’s broker agreement? No, you don’t, but…you should, and here’s why.
While signing a legal document makes some people nervous, signing a buyer’s broker agreement shouldn’t because it comes with specific benefits that protect you throughout the entire home buying process.
By signing a buyer’s broker agreement, you are confirming yourself as a broker’s client, which then puts into place all the legal fiduciary responsibilities a real estate agent/broker are then required to provide you. If you are not offered the option or are unwilling to sign the buyer’s broker agreement, that broker/agent doesn’t necessarily have to provide you those same fiduciary duties. That means they don’t have to do anything in your best interest when showing you homes and negotiating with other agents and sellers. Having said that, all agents are still obligated to treat you with integrity and honesty, while treating you fairly, but, in this case, they don’t represent you exclusively. Therefore, anything about your situation could be disclosed to the other party.
Alternatively, had you signed a buyer’s broker agreement, the broker/agent now legally must disclose all pertinent information to you while exclusively working on your behalf. Additionally, when signing a buyer’s broker agreement, the contract clearly spells out all the important details in the contract so you can more easily understand the role of your buyer’s agent along with your responsibilities as well.
Just remember, while the buyer’s broker agreement looks very formal and has loads of legal ease, it’s a protection mechanism for both of you, perhaps even more so for you as the buyer than for the broker/agent. Therefore, you shouldn’t hesitate to sign one after reading it thoroughly. And, another thing, you can always terminate that agreement if anything happens that you are not happy with. You will have to read that contract’s fine print before doing so, though, because you might, in some cases, be required to provide a specific length of a written notice of early termination. And, in some cases, you might also be responsible for some fees, depending on where you are in the buying process.
Once you have decided to enlist the help of a buyer’s agent, you will then need to find one that’s right for you, and there are several ways you can go about doing just that. One of the best ways to vet a buyer’s agent is to ask lots of questions.
Such as:
Don’t forget to check online reviews to see how your proposed buyer’s agent has performed for other clients in the past. Look at the agent’s website to make sure they are on the leading edge of technology. If they don’t have their own website, they might not be. That doesn’t mean he/she isn’t good at what they do; however, the real estate industry has changed significantly over the years and for an agent not to have their own website could be an indication that they are a bit behind the times. If that’s the case, use your gut instinct about whether they are the right agent for you.
If you need a buyer’s agent, and/or are trying to sell your home while buying another one, please Contact Us today. The Lakeland Real Estate Group is a 5-Star real estate broker in Lakeland, FL that prides themselves on helping their clients find the home of their dreams quickly and for the lowest possible price.
Let’s Do This!
Do you keep losing in bidding wars due to multiple offers? Eileen Anderson offers valuable tips on how to become a stronger buyer in a Seller’s Market
Most offers will contain contingencies, such as financing, inspections, appraisal. Bill Gassett provides insights into various contingencies to know about in a real estate transaction. Contingencies do protect both buyers and sellers.
Fixtures, Furniture and Finishes in a real estate transaction can be problematic for buyers and sellers. Vicki Moore takes out the confusion that can arise and provides real-life solutions that may work.
While bidding war are very common in our real estate market, so is an escalation clause. Sharon Paxson goes into depth explaining the 5 critical things to know about escalation clause.
About the author: The above real estate article “Should I Hire A Buyer’s Agent” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience of selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
The post Should I Hire a Buyer’s Agent? appeared first on Lakeland Real Estate.
]]>The post 11 Tips on How to Win a Bidding War When Buying a Home appeared first on Lakeland Real Estate.
]]>But wait…
Before you go any further, it would be in your best interest to develop a home buying strategy first. A home buying strategy that will help you win that perfect home at a great price if it comes to a bidding war with multiple offers.
How you ask?
We are going to give you several exceptional tips for how to win a bidding war when buying a home.
Let’s get started!
Yes, the whole concept of a bidding war is to drive up the price. However, most people have, to some extent, an emotional attachment to their home. They might have lived in that home for years, raised a family, and have many fond memories of living in that home. So, when it comes to deciding on the winning bid when there are multiple offers, ultimately it might not come down to the highest price bidder. Many times, it will also depend on which person that seller thinks will love that home as much as they do.
Of course, there are other factors that will also play into a seller’s final decision on which bid to choose when there are multiple offers.
Let’s talk about those other factors.
Yes, cash is definitely KING when it comes to buying a home. Ask any real estate agent and they will tell you that they have lost more home offers when their offers are competing with an all-cash offer. This isn’t always the case, but nine times out of ten, a seller will choose the all-cash offer over all others even if it is for less money.
This is because an all-cash offer is almost a done deal pending the home inspection, etc. The seller doesn’t have to wait to see if their buyer will be approved for a mortgage, come up with the down payment, and to see if the house will appraise, etc. because those things don’t matter in an all-cash offer deal.
A pre-approval letter, not a pre-qualification letter, but a pre-approval letter will show the seller you are financially able to buy their home. If other buyers haven’t started the approval process yet, you will have a better chance of getting that home. This is because those other buyers might not be able to qualify and could ultimately be declined for a mortgage causing the seller to have to start the process all over again. So, having a pre-approval letter is a must regardless of whether there is a bidding war occurring or not.
The last thing a seller wants to hear is that you don’t like that upgrade or other cosmetic change or amenity they painstakingly installed and loved. If they hear the first thing you are going to do is change it, they might be less inclined to accept your offer.
Yes, this seems a bit strange because why should they care if that house isn’t theirs anymore? Just remember, many people have an emotional attachment to their home, and like it or not—when you say negative things about their home, it could very well cost you winning the bid.
So, the bottom-line is…don’t say anything except how much you love that home. Keep all your negative thoughts and comments to yourself until later. In fact, it would be a good idea to over-emphasize just how much you love the home and not mention any of the negatives. Doing so might be just the thing that sways the seller’s decision in your favor regardless of the price.
A contract that is submitted with contingencies creates obstacles for the seller whether that be time, money, or just an emotional obstacle. So, in essence, you are giving that seller a reason to choose another offer over yours. A seller is more likely to choose an offer without contingencies that are going to cost them time, money, and give them an inkling that you don’t love that home as much as they do. The seller already has enough on their plate without adding more to it. An offer without contingencies is extremely attractive to most buyers because they can move forward without any delay.
If you are in a bidding war and have the financial ability to offer more for that home, then it doesn’t hurt to do so. Just remember, if you are financing that home, it will have to appraise for the amount you agreed to pay for it. If it doesn’t appraise for that amount, you will either have to put more money down or the seller will have to lower the price of the home in which case, he or she might not be willing to do. This could cause you to lose that home to someone else who has enough cash on hand to make up the difference between what the house will appraise for and how much the buyer is paying for that house.
A great way to win a bidding war when there are multiple offers is to include an escalation clause in your offer.
What is an escalation clause you ask?
An escalation clause lets the seller know that you are willing to pay an escalating amount for their home if they receive another offer that is higher than yours. This escalating amount will go up to whatever pre-determined amount you included in that clause.
For example:
If you submitted an offer for $300,000 for the home and the seller receives another bid that is higher than that, the escalation clause you submitted with your contract states that you are willing to increase the amount of your offer in increments of $5,000 (or whatever amount you specified) above the competing offer until it reaches the maximum amount you agreed to pay.
Sellers usually prefer this method because it motivates buyers to outbid each other in a bidding war. However, with that being said, a buyer should only consider agreeing to an escalation clause when they are fairly confident there will be multiple offers presented.
So, what if there are no other offers, and you submitted your offer with an escalation clause? If there are no other offers, the contract remains at its original price and the seller can choose to accept it or reject it at that time.
There are a few drawbacks when using an escalation clause though. The real estate agent representing the seller will know you are willing to pay more; therefore, could encourage the seller to make a counteroffer. Additionally, when including an escalation clause, you also give up most of your negotiating power.
However, you, as the buyer, don’t have to accept the higher counteroffer. How the seller responds could give you some idea about where they stand. Does the seller anticipate multiple offers, or does it seem as if the seller might be willing to go ahead and accept your initial offer so they don’t lose you as a potential buyer?
Another thing to consider with an escalation clause is how the seller will be accepting other offers. Find out of the seller will be accepting offers for a one-day review or a longer period that will include multiple rounds of offers. This will help you determine how high you are willing to go. Should you give your highest and best offer now or wait for the back-and-forth negotiations to take place since the seller stated there could be multiple rounds of offers over a set period such as one week, etc.
It’s common at this stage for the seller’s agent (with the seller’s permission) to tell all potential buyers what the top original bid was so they can beat it.
An experienced real estate agent will have the know-how and negotiating experience to navigate a hot bidding war. Additionally, an experienced real estate agent will know how to use their best judgment based on their knowledge, previous sales, bidding wars, and the current competition to help you with every angle needed for a winning bid versus an agent that doesn’t have enough experience to effectively help you win.
This one is huge. Offer a flexible closing date. If the seller needs extra time for whatever reason before moving, they might need a flexible closing date. Therefore, if you offer them that they might award you the bid because you were the only one willing to wait and give them the time they need to move.
If you can, come up with a larger down payment. Doing so will show the seller you are serious about buying their home. It will also give the seller the peace of mind knowing that your mortgage is more likely to be approved without a hitch because you have more money invested in that home This makes you less of a risk to the mortgage company.
Now, please note that we don’t recommend this option. However, if you really want the home and you have enough money in savings to fix anything that might go wrong, you could let the seller know that you are willing to skip the home inspection. This will definitely give you an edge over other bids especially if the home needs work. You can still have a home inspection performed so you know what to expect, but you won’t be able to cancel the contract based on its findings.
You should also ask the homeowner for the home’s repair and maintenance records. This will give you a general idea about whether or not that home has been properly maintained and cared for.
There are certain circumstances when you should not engage in a bidding war regardless of how bad you want that home. Remember, there will always be another home out there if you lose this one—always! You never know, the next home might be even better!
Here are a few circumstances when you should avoid a bidding war.
Your real estate agent will be able to help you navigate the waters while making recommendations about whether you should participate in the bidding war or move on to another suitable home that doesn’t have all that competition.
If you need an experienced REALTOR® to help you find your next home and win a bidding war if it comes to that, then please Contact Lakeland Real Estate Group today. We have been helping buyers find their dream homes and skillfully negotiating the best possible price for our clients for more than 20 years. And we would love to do the same for you!
Don’t forget to get your free Buyers Guide here.
Every transaction is different as Sharon Paxson goes into details in her article “4 Distressing Mistakes Buyers Make in Multiple Offer Situation.“
Bill Gassett’s guide should give you the information you need to navigate contingencies in real estate deals successfully.
Contracts to purchase a home contain many different terms and requirements that are binding to both the buyer and the seller as Paul Sian explains in his article, “Anatomy Of A Real Estate Offer“.
About the author: The above real estate article “11 Tips on How to Win a Bidding War When Buying a Home” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience of selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
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]]>The post Things to Know Before Moving to Lakeland, FL appeared first on Lakeland Real Estate.
]]>There are so many wonderful aspects of living in Lakeland that it would be impossible to list them all. However, we are going to do our best to summarize what living in Lakeland is like. We are going to give you all the highlights of living in Lakeland along with links you can follow to explore and learn more about what you have to look forward to when moving to Lakeland, Florida.
Are you ready?
You are about to take the first step in your journey, and you are absolutely gonna love it!
Let’s get started…
Lakeland, FL is conveniently located along the I-4 corridor between Tampa and Orlando. The population is over 100,000 and the city limits cover about 74.4 miles. The downtown area has been loving named “Lakeland’s living room” due to its community spirit (which we will talk about in a moment), as well as the iconic and fun things there are to do there. Lakeland is full of Old Florida history and boundless natural beauty for you to enjoy.
Lakeland has a history that dates back to the old Florida pioneers in the 1870s. Fast-forward to modern-day Lakeland which was built around the 38 lakes found around the community.
Lakeland reflects a historic character full of heritage, philanthropy, and volunteerism, giving every resident and all visitors a true sense of belonging. So, Lakeland has something to offer every one of its residents and visitors—visitors who once they are here never want to leave.
When in Lakeland, you can look around, and you will see that people take pride in their community. You will also notice smiles and receive warm greetings from people everywhere you go. This community has a small-town feel with a big city stance. And when it comes down to it, Lakeland is a tight-knit community where you will always feel like you are home regardless of whether you live here or are just visiting.
The City of Lakeland has seven historic districts, more than 1,600 historic buildings, and 13 individual historic landmarks. Lakeland embraces its past as you can see by the preservation of the tree- and brick-lined streets. One of the most nostalgic historic neighborhoods is called Dixieland. This charming neighborhood is bordered by Lake Hunter, Walnut Street, and Dobbins Park. When you enter Dixieland, you will feel like you have gone back in time making it an experience you will never forget. Others are Beacon Hill, East Lake Morton and South Lake Morton and Biltmore-Cumberland
Click Here for a map of the Lakeland Historic District.
Lakeland is also home to a wide variety of historic landmarks such as the Central Avenue School, Cleveland Court School, John F. Cox Grammar School, the Florida Southern College Architectural District, Henley Field, Frances Langford Promenade, Oates Building, Polk Theatre and Office Building, and more. It’s definitely worth your time to see as many of them as possible.
Lakeland, FL is famous for being home to the largest single-site collection of Frank Lloyd Wright architecture in the entire world. This collection is housed at Florida Southern College.
Lakeland is also famous for hosting the Detroit Tigers Spring Training, having the Safari Wilderness, and the Circle B Bar Reserve. You don’t want to miss them.
You really can’t beat the location of Lakeland. Lakeland is situated in the middle of the state making it convenient to all the major attractions and vacation destinations. Most people save all year for a vacation to Florida. But since you live here all of this is right in your own backyard. This will save you loads of money each year on airline tickets and other travel expenses since many of the fun things to do are just a day trip away.
If you think about it, you could use all that money you would normally pay on a Florida vacation and put it towards your child’s college fund, pay off some debt, or even pay down your mortgage all without having to do anything different or sacrifice anything. And you are just a short drive to all the white sandy beaches of Florida as well (more about that in a minute). How great is that?
Living in Lakeland is great for those who like a quiet, peaceful atmosphere. However, there is plenty of nightlife and lots of fun things to do in Lakeland (more about that in a minute), and even more just a short drive away.
The Lakeland housing market consists predominantly of detached single-family homes at 52.5% with the rest of the housing make-up being apartment buildings and mobile homes at 47.5%. Most houses are comprised of two and three bedrooms and the median year of construction for houses in this city is 1983. However, you will find plenty of home inventory for a wide variety of years including new construction.
Lakeland, Florida home prices range from the low 100k to over 1,000,000 with an overall median home value being around $288,000. So, as you can see there is something for everyone. For up-to-date housing market statistics in Lakeland, please feel free to click on Lakeland Florida Housing Market Report
Lakeland doesn’t have anyone type of profession, so it isn’t mainly a white-collar or blue-collar area. The top professions in Lakeland are sales, office workers, professionals, management, and service providers. And an interesting tidbit is that Lakeland is reported to have more people who work in computers and math than 95% of anywhere else in the United States. The average household income in Lakeland, FL is almost $68,000 and it has a poverty rate of less than 17%.
Additionally, the overall education level of Lakeland is about 22% higher than other cities in the U.S. and about 27% of adults who are 25 and older have, at the very least, a bachelor’s degree.
The Lakeland area boasts many major employers such as Publix, Lakeland Regional Health Orthopedics, Saddle Creek Logistics Services, Meadowbrook Golf, City of Lakeland, Watson Clinic, Florida Title, Crispers, Velda Farms, RMC Ewell, Amazon, Southeastern University, GEICO, and more.
Yes! Lakeland is an extremely affordable place to live and retire. There are plenty of jobs to be had and the experts expect the growth of the job market in Lakeland to outpace the U.S. job growth rate. Additionally, the housing in Lakeland is about 30% lower than the U.S. average and the cost of living in Lakeland is about 13% lower than the U.S. average.
The Lakeland property taxes are about $427 below the national average property taxes which are approximately $2375, and it’s also lower than many other Florida municipalities. Additionally, the Lakeland sales tax is only 7.0% and there is no state income tax.
According to US News, Lakeland, FL is ranked #61 in best places to live in the U.S., #18 in best places to retire. #9 in best places to live in Florida, #7 in fastest-growing places.
A good walkability score is considered 70 or above. Lakeland does not have a high walkability score. Lakeland’s walkability score is 37 and has a bike score of 52 and is only somewhat bikeable but the city is trying to change that which we will talk about in a minute. So, for all intents and purposes, Lakeland is considered a car-dependent city and, fortunately, you won’t have any problems with parking in or around the city.
According to AreaVibes, these are the best neighborhoods in Lakeland.
There are plenty of other great neighborhoods in Lakeland, but these are some that were rated as being the best.
According to Greatschools.org, there are 211 schools in Lakeland. This number includes preschools, elementary, middle, and high schools, as well as public charter schools, and private schools but does not include colleges. Lakeland has five colleges and three technical schools.
As you could imagine, with that many schools the ratings are all over the board ranging on a scale from 1 to 10 with 10 being the best. Additionally, there are many schools that have a “currently unrated” rating.
If you want to see the rating of any given school, you can go to Greatschools.org and see the rating and reviews for whatever school you’d like.
Florida has some of the best weather in the country. Yes, it does get humid, and it does rain a lot during certain times of the year. However, when it does rain, it usually doesn’t last long. Here are the Lakeland weather highlights.
As we mentioned above, Lakeland is car-dependent, so you will need a car to get around. And fortunately, Interstate 4 is a toll-free interstate. Then there is the Polk Parkway which is a toll road that provides access from I-4 to a variety of Polk County cities. There is a public transportation option as well. You can opt for Citrus Connection which is a bus services option. This will allow you to take the bus for a stress-free ride where you can sit back and relax while someone else does all the driving for you.
With Lakeland being so close to all the tourist destinations, you will have access to a wide variety of exceptional places to eat and some of the best food you will find in the entire state of Florida.
Here are the top 10 best restaurants in Lakeland, FL according to Tripadvisor.
Ovation Bistro & Bar – American, Steakhouse
Nineteen61 – Latin, Spanish
Café Zuppina – Mediterranean, Turkish
Scarpa’s Italian – Seafood, Italian
Harry’s Seafood Bar and Grille – Grill, American
The Red Top Pit Stop – American, Barbecue
Palace Pizza – Quick Bites, Italian
Fish City Grill – American, Bar
Grillsmith Lakeland – American, Bar
Abuelo’s Mexican Restaurant – Mexican, Southwestern
As much we love Starbucks, Dunkin Donuts, which are located throughout our great city, I strongly encourage to check out our local coffee shops. You won’t be disappointed!
Black and Brew – Two Locations: 205 East Main Street, Lakeland, FL (on Munn Park)
100 Lake Morton Drive, Lakeland, FL (in the main branch of the Lakeland Public Library)
Charlie’s Mini Donuts and Coffee – Location: 1023 East County Road 540A, Lakeland, FL
Concord Coffee – Location: 1037 Florida Ave. S, #135, Lakeland, FL (Dixieland)
Divicious Deli & Coffee Shop – Location: 128 E Main St., Lakeland, FL (on Munn Park)
Mitchells Coffee House – 235 North Kentucky Ave., Lakeland, FL (Downtown)
Hillcrest Coffee – 119 Hillcrest St., Lakeland, FL (Dixieland)
Here are the top five bars and the top five breweries in Lakeland.
Bars:
Revival – Cocktail Bar
The Yard on Mass – American, Diner, Cocktail Bar
The Pink Piano – Wine Bar, Piano Bar, Music Venue
Cob & Pen – Beer Bar, Breakfast and Brunch Sandwiches
Lakeland Loft – Jazz & Blues, Cigar Bar
Breweries:
Front Page Brewing (this one is about 20 minutes outside of town)
Crave & Copper (this one is also about 20 minutes outside of town)
One of the best things about living in Lakeland is the fact that you are situated right in the middle of the state. That means you can visit all the tourist attractions and little out-of-the-way places all over Florida and you won’t have to drive more than a day—usually much less.
A tank of gas (depending on what you drive) could potentially take you anywhere in the state. In fact, if you wanted to, you could drive from Lakeland to the Florida Keys, which is about 296 miles in about four and a half hours.
It will blow your mind when you realize how many fun things there are to do in Lakeland and the entire state of Florida for that matter!
Lakeland has several sports teams—Lakeland City Baseball, Lakeland FC (Futbol Club) Soccer, Flying Tigers Baseball, Lakeland Magic Basketball, and Lakeland Tropics Soccer. Then, of course, Florida has its share of great sports teams as well. The Tampa Bay Lightning, Tampa Bay Buccaneers, Miami Dolphins, Tampa Bay Rays, and the Orlando Magic. So, if you love sports, you are going to love it here.
Lakeland has about 17 golf courses in the city and there are even more in the surrounding areas. As you can see, Lakeland is a golfer’s paradise with some of the most popular public and private golf courses and clubs in the state with plenty of great year-round weather in which to enjoy them.
Here is a Lakeland Golf Guide that will give you specific information about each one.
Lakeland music venues include Union Hall which has live music and a full bar. You might also love the Grove Roots Brewing Co. in nearby Winter Haven. They host great musicians and a variety of food trucks. You will also find live music at The Poor Porker. And if you love music and coffee—checkout Hillcrest Coffee. If you want to go to the symphony, there is the Imperial Symphony Orchestra. Lakeland truly has the full spectrum of entertainment.
This area is rich in culture and includes plenty of performing arts venues. We have the RP Funding Center, Theatre Winter Haven, Lakeland Community Theatre, Ritz Theatre, Ramon Theater, Gram Parsons’ Derry Down, Lake Wales Little Theater, Florida Dance Theatre, and the Polk Theatre.
We couldn’t possibly name all the fun things there are to do in Lakeland, but here are a few of the most popular.
Lakeland hosts what seems like an unlimited number of annual and special events each year. You can check the Lakeland Events Calendar here to see which ones might interest you or to schedule an event of your own. Here are more events from the Lakeland Chamber of Commerce. And if it’s the festivals you are looking for, here is a list of festivals in and around Lakeland.
Yes! From shore to shore, there are lots of beautiful sandy white beaches just an hour or two away from Lakeland.
You will never feel like you are missing out on the Florida beach scene even though you live in the middle of the state because literally, everything you could ever want to do is within driving distance. And most things are just a short drive at that. Just think about what all that could do for your quality of life!
As we mentioned above Lakeland has a bike score of 52. This high number is due to the new bike infrastructure and upgrades in the area. These include the Lake-to-Lakes, University Trail, and the Fort Fraser bike trails.
Yes, Lakeland has an abundance of parks with a variety of uses including nature, walking, jogging, hiking, biking, sports, picnicking, playgrounds, dog parks, a skate park, and more. There are so many parks we couldn’t possibly list them all. So, we are giving you a link to the Lakeland Park finder below so you can see them all for yourself. Just click on the dots and it will give you specific information about each park.
Here is a Lakeland Park Finder for your convenience.
Absolutely! In fact, Lakeland was named recently number one as one of the best places to retire in America. This is partly due to its central location smack dab in the middle of the state and its proximity to a wide variety of high-quality healthcare providers. Some of Florida’s top healthcare facilities are located in Lakeland or just a short drive outside the city.
Some of the best reasons you will want to retire in Lakeland, Florida are that there are no state income taxes, Florida does not tax your social security income, the property taxes are lower than most other states, and due to its location, you don’t have much to worry about in the way of hurricanes. And, we don’t have to tell you about the year-round sunny warm weather meaning you can be active and outdoors all year long if you want to. Did we mention the endless natural beauty of Florida?
Living in Lakeland, Florida is like being on vacation all the time. If you live here, you live in a place that other people travel far and wide to visit, relax, soak up the sun and all the beautiful weather. You will have access within a day’s drive or less to world-famous tourist attractions, white sandy beaches, and all the tropical allure you could ever want.
Therefore, if you don’t already live here you are missing out on a place that could provide you and your family with a better quality of life for the rest of your life.
So, what are you waiting for?
Are you ready to make a move to Lakeland, Florida? Or, perhaps you would like a little more information first. Either way, we can help. Please Contact Lakeland Real Estate Group today. Let us show you just how easy, affordable, and rewarding moving to Lakeland, Fl can be. We look forward to meeting you!
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]]>The post Help — I Sold My House and Can’t Find Another One appeared first on Lakeland Real Estate.
]]>But suddenly…
Someone bought your house, and you haven’t yet found another one yet! So, obviously, you are probably in a panic.
We get it.
But don’t worry, there are options out there for you—options that will enable you to take your time finding a new house. This is important because you don’t want to go out and buy just any house simply because you are in a rush to find something.
Doing so generally leads to regret and a costly mistake. If you make a rush decision buying a house—a house you might not totally love, you will probably end up wanting to sell it sooner rather than later and that will cost you!
That’s why we are going to provide you with a list of options you can utilize if you end up selling home more quickly than you anticipated.
A leaseback sometimes called a rent back or sale-leaseback is when a seller sells his or her home then the new owner leases that home back to the seller for a designated amount of time. This allows the seller to stay in that home giving them time to find another one. But just like anything else, there are pros and cons of a leaseback.
Pros:
Cons:
Homeowners or rental home business owners will sometimes allow short term and/or month-to-month rentals. However, the shorter the term, the higher the rent will be. You might also be on the hook for a non-refundable deposit, pet deposits, and other fees. Additionally, you might also be required to put up several months’ deposit in advance to cover any potential damages. But short-term rentals and month-to-month rentals will generally be much cheaper than signing a long-term lease then breaking that lease.
There are several ways to find a short-term or month-to-month rental. The best and safest way to go about doing this is to talk with your real estate agent. This route will ensure you find the least expensive home for your money and one that best suits your needs.
You could also take this upon yourself by going to Craigslist or another online marketplace, but the risk of being taken advantage of or swindled is significantly higher.
Vacation rentals, Airbnb homes, VRBO homes, or any other vacation rental type of living arrangement is another option you could use to hang your hat until you find another home. If you are thinking that these types of homes would be extremely expensive because they charge by the night and assess an exorbitant amount of fees, you would be right.
However, if you need to rent one of these homes for a longer stay, many vacation rental owners will negotiate a reduced rate for you. A longer stay means a solidly booked rental, less cleaning, maintenance, and hassle for them. Therefore, a long-term guest is usually extremely appealing to most vacation rental owners.
You might consider finding several homes you would consider renting and checking to see which of those rental owners gives you the best rate. This option will oftentimes be your best bet because there are no leases or other commitments to deal with.
An extended-stay hotel suite or an executive suite is another great option for a short-term living arrangement. A hotel suite will provide you with all the basics such as a living area, bedroom(s), kitchen, and bathroom but not much else. It’s a very minimalist type of rental and usually, you won’t have a yard or a garage.
However, if you choose an extended stay hotel suite, you will potentially have access to its amenities such as a pool, fitness center, business center, tennis courts, restaurants, snack lounges, and bars, etc. So, you might really enjoy having all these conveniences available to you.
Temporary housing such as short-term apartment leases or month-to-month apartment leases is another great option for an interim living arrangement. And just like a hotel suite, a short-term apartment rental will give you access to all the community amenities as well. However, just like the short-term and month-to-month home rentals, a temporary apartment lease will cost you.
A short-term or month-to-month apartment lease will generally require a large up-front deposit that might even be non-refundable, pet-fees that might be partially non-refundable, admin fees, and higher monthly rents for the convenience of providing you with a short-term rental. So, this may or may not be the best option, it will just depend on the specific policies and fees of each apartment community.
If you want to explore this option, check with your real estate agent for more information. Real estate agents often have relationships with the area apartment managers and might be able to get you a better rate. Or, at the very least point you in the right direction so you don’t have to spend so much time searching for who does and doesn’t offer short-term leases and the rates and terms of those leases.
If you can’t seem to find a home you like, why not consider looking at rental homes on the market. Sometimes rental homeowners will consider a lease with an option to buy. This is great in that you can basically try the home out before you decide if you want to commit to buying it. It will also give you the chance to make sure there aren’t any hidden issues or large ticket items that might seem OK now but will probably need to be replaced sooner rather than later.
However, if you decide to go this route, please be very careful. You will need to make sure everything is executed by a real estate attorney and that you are covered to the fullest extent. If you don’t, you could stand to lose a significant amount of money.
Let’s say you lease that home and paid the rent on time for many years. Then suddenly you receive a letter that the home is going into foreclosure. Wait, what? What did the owner do with all that rent money that was supposed to be going towards the purchase of that home? You may never know anything other than your money is gone! So be careful and don’t let that happen to you.
Buying a house that hasn’t hit the market yet is a great way to find a house. Doing so will enable you to beat the crowds so to speak. Many sellers are more willing to negotiate at this point. This is because if they sell their home before it hits the market, it will save them loads of time and the inconvenience of hoards of people tromping through their home and having to drop everything and show their home at a moment’s notice, etc.
The best way to find these homes is to talk with your real estate agent. Ask him or her if there are any listings that they or their network agents are working on where the seller has yet to sign on. This simply means the agent will contact potential sellers and let them know they have a possible buyer for their home. This is a huge incentive for the seller to commit to signing the listing agreement making this a great way to find a home that hasn’t hit the market yet.
Off-market listings have their own set of pros and cons. A seller who wants to maintain their privacy, test the waters, save on the commissions, or any other reason might opt for an off-market listing. Off-market listings have gained popularity in recent years making this somewhat of a secondary market so to speak.
The best way to find off-market houses is to talk with your real estate agent who probably networks with other area agents and will know if there are any of those homes available.
Now, with that being said, off-market homes have hit somewhat of a hiccup in the last year or so when the National Association of
Realtors® implemented a new policy. The MLS Statement 8.0 Clear Cooperation Policy states that as of January 1, 2020, it requires any real estate broker who uses and participates in the multiple listing service to submit their home listings to the MLS within one business day from when they began marketing the property. So this policy greatly restricts off-market listings.
This policy is not a law, it’s just a policy by the governing association. However, all MLSs, brokerages, and real estate agents who use it must abide by this policy.
So what the heck then you might ask?
Well, fortunately, the National Association of Realtors® has come out with a new policy that provides options for its member agents and brokers so they can maintain both a limited and full off-market listing. This new policy gives sellers the option of opting out of the MLS IDX (internet display) which is also known as an exclusive listing for maintaining privacy, etc. So without going into all the details of such, it’s best to talk with your real estate agent about looking at off-market listings, and he or she will be able to help you with how to go about doing this.
If you have looked at what seems like every available home in the area, there is still one other place you can look to find that home of your dreams. You simply drive around the neighborhoods you are interested in living in and talk with some of the neighbors.
Ask any people you see if they know if any of their neighbors are thinking about or would be willing to sell their home. You can also talk with the area merchants such as restaurants, dry cleaners, coffee shops, banks, etc. if they know if any of their patrons are thinking about selling their home. When people are thinking about selling their home, they often mention it to their neighbors and in casual conversation with the people they do business with. So this is another great way to find a home that isn’t on the market.
If you find someone who does want to sell their home, refer them to your real estate agent who can then assist that seller in the sale and the other details of selling their home. It’s a win-win-win for you, your real estate agent, and the person wanting to sell their home.
If you want more information about selling or buying a home, or if you have questions about interim living options, please Contact Lakeland Real Estate Group today. We are proud members of the community and have been helping the people of Lakeland and the surrounding areas find the homes of their dreams for more than 20 years, and we would love to do the same for you too!
While we are still in a pandemic, Sharon Paxson provides important tips when viewing homes in today’s real estate market.
Are you considering buying into a homeowners association? Then you may want to check out Bill Gassett’s article about what do HOA fees cover.
If you are looking for a luxury home, this article written by Paul Sian looks at the important steps luxury home buyers should be taking to be competitive.
About the author: The above real estate article “Help — I Sold My House and Can’t Find Another One” was written by Petra Norris of Lakeland Real Estate Group, Inc. With over 20 years of combined experience of selling or buying, we would love to share our knowledge and expertise. Petra can be reached via email at petra@petranorris.com or by phone at 863-712-4207
We service the following Central Florida areas: Lakeland, Auburndale, Mulberry, Winter Haven, Bartow, Plant City, Seffner, Valrico, Polk City, Lake Alfred, Lake Wales, Haines City, and Davenport FL.
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]]>The post The 2020 Lakeland Real Estate Market appeared first on Lakeland Real Estate.
]]>As you know, many try to predict housing trends, but few are ever right. This is because most news stories are designed to create fear. That’s how they get people to listen. Well, not here. We are not going to try to predict anything. However, we are going to give you the facts based on what we do know about the real estate market in 2020 as we look at the year in review.
With the COVID-19 global pandemic hitting hard in 2020, this was a year unlike any other in recent history. Every aspect of our lives was upended, and all spectrums of our economy were affected in one way or another. Some industries did very well and others—not so much!
So how did the real estate industry fare? Surprisingly, it fared very well. This was in part due to the low-interest rates, a high number of first-time homebuyers, new remote working options, and home supply shortages. These combined factors made 2020 a record-breaking year in terms of residential real estate sales.
There were a few hurdles along the way though. In the spring, as the reality of the pandemic was becoming clear and stay-at-home orders were put in place, the housing market paused. However, the housing market overall had a record-breaking year. In fact, at year’s end, almost 6% more homes were sold nationally in 2020 than there were sold in 2019.
That’s pretty amazing especially in the wake of a pandemic. And that just goes to show how resilient real estate and the housing markets truly are. Think about how many times the housing market has been hit hard (think 2008) and has bounced back better than ever. So, you really can’t go wrong when buying a house even if the market drops or falls out completely. Real estate always seems to have the ability to bounce back even stronger.
Before we move on to the Lakeland, FL real estate market statistics, let’s summarize the Lakeland, FL housing market as a whole.
Lakeland is a city in the State of Florida that consists of 45 different neighborhoods. These neighborhoods are made up of mostly single-family housing homes.
Here is the housing market share breakdown give or take as the market fluctuates.
The Lakeland, FL real estate market is a mix of owner-occupied and renter-occupied housing. Most of the homes here were built somewhere between 1970 and 1999. However, there were plenty of homes being built throughout the 90s and beyond as well.
The earlier built homes constructed between 1940 and 1969 can be found also. Those homes make up about 22% of the Lakeland housing market. Additionally, there are about 6% of the homes here were built before 1939 which are located in Lakeland’s historic districts.
Over the past 10 years, Lakeland, FL has seen some of the highest home appreciation rates in the country. In fact, real estate in Lakeland has seen an appreciation rate of almost 75% over the past 10 years. Talk about a great investment!
If you compare Lakeland to the rest of Florida, the most recent appreciation rate is more than 70% of other cities and towns around Florida. However, please keep in mind these are average appreciation rates. That means the rates for any given city or town could vary a great deal.
If you want to research a specific city or town, you can use a resource such as Neighborhoodscout.com then talk with your real estate agent for further, more detailed information. Taking these steps will help you make a solid educated decision about whether or not any given location is right for you and your family.
Lakeland, FL home sizes vary. Here is a breakdown of homes based on the number of bedrooms they have.
Now let’s take a look at the 2020 Lakeland real estate market statistics.
OK, so how did the Lakeland real estate market fare in 2020? Did it do as well as the national outcomes? Yes, it did! Here are the 2020 Lakeland real estate market statistics.
Monthly housing statistics for Lakeland FL can be found in detail clicking on the hyperlink. Detailed reports with Average and Median Sales Price, Days on Market, and Market Activity for Lakeland, Florida by Zip Codes.
So why did real estate fare better in 2020 than it did during the last economic disaster when the bottom fell out of the housing market in 2008? This is because the last economic disaster and mortgage crisis was due to the over-abundance of subprime mortgage loans given to high-risk homebuyers in conjunction with the over-inflated home prices. These factors caused home prices to plummet which resulted in many people losing their homes to foreclosure.
However, in 2020, the demand was already high because of the generational homebuyers. In other words, millennials were advancing to their home-buying age, as well as the market having extremely low-interest rates. And, of course, real estate loans since 2008 are now based on fiscally sound homebuyers, stable loans, and solid loan practices. So, fortunately, all of this is what helps protect against similar related real estate market drops in the future.
Here are the most commonly asked questions about Lakeland, FL.
Lakeland, FL is located midway between Orlando and Tampa in Polk County off I-4.
33801, 33803, 33805, 33809, 33810, 33811, 33812, 33813, 33815, 33849.
Auburndale, Plant City, Polk City, Winter Haven, Bartow, and Zephyrhills.
Lakeland is home to Southeastern University, Polytechnic University, Florida Southern College, and Polk State College Lakeland Campus.
Lakeland, FL is the 18th largest city in the State of Florida and is the 257th largest city in the country. The population of Lakeland, FL is approx. 113,851.
If you want to live near all things Florida, then Lakeland is the place to be. Lakeland is centrally located to all the major Florida beaches and attractions including Disney. In fact, Orlando is only a short 49 miles or 57 minutes from Lakeland if you are driving on I-4 E by car.
Lakeland doesn’t have four distinct seasons. The summers are hot, humid, and wet. The winters are short, cool, comfortable, and absolutely beautiful. The typical temperatures in Lakeland, FL range somewhere between 90° and 94° during the summer and between 36° and 50° in the winter. However, 30-degree temperatures are rare and short-lived when they do occur.
Absolutely! Lakeland is frequently named one of the best places to retire in Florida because of its central location, proximity to a wide variety of health care providers, and an abundance of fun things to do.
As you could imagine, there are plenty of fun things to do in Lakeland and throughout Florida for that matter. Here are some of the most popular fun things to do in Lakeland, FL according to Tripadvisor.
As you can see, Lakeland, FL is centrally located to anything and everything you could ever possibly want to do and see in Florida. Lakeland is great for families and retirees alike. Additionally, Lakeland home values are rising and there are plenty of great schools and fun things to do here. So why not consider making Lakeland your home—most people who live here never want to leave!
If you want more information about buying or selling a house in or around the Lakeland, Fl area, please Contact Lakeland Real Estate Group today. We specialize in effective negotiation and expert analysis when assisting our clients with any real estate need. Our more than 20 years of experience gives us the knowledge and expertise to help our clients achieve the absolute best possible results. And we look forward to doing the same for you.
Don’t forget to request our Free Buyer’s Guide today.
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