Berenice Elguezabal - Miami Realtor

So what is an appraisal contingency and why is it so important? Well, it is just what is sounds like, it is establishing the value of the property so the lender will hire a third party appraiser who will come out to the property take a look inside and out and take photos, find comparable properties in the area that have recently sold and that is how they come up with the value. Now once the value is established, the report goes out to the lender and of course to the buyer and if the property appraised, Congrats! But if the property did not appraise at purchase price, then as a buyer you have the choice as a buyer to come up with the difference out of pocket or just go ahead and cancel the transaction and of course, you get your deposit back

Florida is one of the 8 states that have no income tax. You still have to pay your personal taxes for sure, but there is no income tax. Additionally, there is the homestead exemption on your primary property, (owner has to be legal resident and Homestead applies to the property that it is lived in, no investment property) The application is done on line, on the appraisers site and does not have to be renewed, it is renewed automatically. Translates into 50,000 deduction in property value (used to calculate taxes) and puts a cap to how much the property value can go up on a yearly basis

Us realtors tipicaly recommend putting your property on the market a bit later in the year, late March, maybe April which is usually the busier buying season - but here is why waiting today could cost you a small fortune: 1. Buyers are looking right now The amount of Showings now are at their highest ever 2. Pending sales are also beating pre pandemic levels Confirming a very strong demand and less competition 3. New construction is well under way but due to the inherent constraints of the building process, these properties will take some time to hit the market - less competition today 4. A great time to move up – With prices projected to appreciate a 5% in 2022, the cost in both down payment and mortgage payments will be higher by the end of the year (and rates will be higher as well) 5. Take time to consider what is most important to you, what your goals are for 2022 and if moving is in your mind, my recommendation is DO NOT WAIT

That is a question I get a lot nowadays and the correct answer depends on what your plans for the property are. If you are buying to make it your home for several years, to possibly use the schools in the area, to raise a family there, I would suggest go as high as the comparables show and then some %points more. With record low interest rates, the monthly payment for the difference will not be too much and time will allow the property to continue to reevaluate. Some 10 or so years later, you should still be able to obtain a significant return on the money invested, Happy buying!

Usually, all condo fees include the building insurance and when they are older buildings and/or right in front of the water, insurance may be costly - keep in mind your maintenance includes the buildings insurance (contents is separate and an additional cost) Your fees usually will also include water bills, garbage refusal bills, and of course, common elements and amenities

Lenders usually require at least 620 FICO score to qualify for a mortgage, governtment backed loans may allow for lower scores. However, it is always smart not to make any "bigger" purchases when you just went under contract to buy a property and you are in the process of obtaining the mortgage, you do not want to affect your debt ratio. That could make the difference between obtaining or not a mortgage and of course, on obtaining the best rate possible

According to experts, the shortages are a result still of affected supply due to the pandemic. Also, as consumers spent less money traveling and/or due to the stay at home policies, we all spent more on line. Demand for furniture, electronics, housing supplies, etc... increased substantially and transportation was limited so there is still a lag in responding to the excess demand. Experts predict it may take about 6 months to get back to normal so be patient!

Investing in Real Estate will protect you versus inflation. As prices in general go up, property prices will increase as well (and as building materials increase in prices, building costs and price of the finished product will be higher as well). Buying real estate will protect the consumer against inflation because property prices will rise as well and, with limited building material supply and increase in demand, real estate prices will continue to have pressure to increase

Instead you should buy real estate and wait!!

Most important in todays competitive market is having a pre-approval ready so you can take action immediately,

There are 3 key things to look for when you are buying investment property: 1 AREA- As always in real estate, location Does if offer easy access to amenities and transit roads for the tenant? 2 NUMBERS- when looking to invest, make sure you obtain current data on the rental rates and the appreciation you expect that area to have- then account for all carrying costs (insurance, taxes and maintenance fees) and do the math 3 CONDITION - I tend to favor properties that are in turn key condition, that way you can start receiving income from the day you close on your property, reducing vacant days

Unless you are planning to do a major renovation of the complete property, it is never a good idea, It could end up costing substantially! Keed inspection period as short as possible to stay competitive but I would not recommend waiving them,

In todays market this is happening quite often- you need to work with the buyer before hand and have them ready to expect this. You can use it to then try to get a price adjustment but try, do not blow the negotiation, try to have both sides win. The best negotiations are always win win. Focus of course, on the most recent closings as well

1. Make a clean, complete offer - it is incredible how many offers I look at when acting as the listing agent are incomplete! - 2. Obtain a pre-approval - It is key for the seller to know you are a willing and ABLE buyer, that you are aware of other costs such as taxes and maintenance associated with the property and that you are qualified to make the purchase 3. Offer flexibility on other terms - find out if the seller prefers a longer or quicker closing and try to adjust as best you can 4. Keep inspection period to as short a time as you can, I do recommend you do all inspections but offer to do them as quick as possible 5. Accompany your offer with a strong deposit - it will go to an escrow account and is not in any risk but shows how serious and motivated you are on this property 6. Work with an experienced realtor

It is a valuable tax benefit for property owners in Florida where they can benefit by lowering up to 50,000 off the assessed value of their property. Needs to be the primary residence and they must be residents in Florida to apply

Taxes in Florida are calculated using the assessed value of the property minus exemptions that may apply. The average in Florida is 1.1% of the properties' value. Plus, there is no income tax in Florida!!

There are 3 very important differences between todays market and conditions in 2008: 1. The mortgage industry has been very strict this time around - it is actually very difficult to obtain a loan nowadays, That means properties are being purchased by buyers who can afford them 2. The inventories are very limited today - there has been a gap in construction as builders stopped building right after the 2008 crash - even though construction is picking up now, it will take many years for supply to be enough as to satisfy todays demand 3. Even though prices have spiked during this past year, the average spike during the past 4 years is at 6% whereas it was as high as 10% average during the years preceding 2008 There may be an adjustment but conditions are very different today than in 2008 indicating there will not be a Crash

No! Definitely not, all markets go through cycles and this sellers market will subside. However, we do not see a major drop happening either, the amount of equity today in the average home in the U.S is significant, lenders have been very strict with the lending practices and simply, there are not enough existing homes, it will take builders many years to build enough to keep up with the demand

New-home construction increased significantly early in the 2000s, a housing boom. Then building activity slumped during the 2007-09 recession and stayed low for years as builders went out of business and workers left the industry. In order to make up for lost time and shorten the deficit in housing, builders would need to exceed the long-term historical average pace of 1.5 million units a year, according to the NAR report. At 2.1 million units a year, near the level reached in 2005, it would still take a decade to close a gap between supply and demand

5 Very important factors to keep in mind as a homebuyer today: 1. Know your numbers - with the help of your realtor, it is key to be able to determine how the property being considered is priced- many time (savvy sellers, specially) the property is priced just under market value, creating buyer frenzy and generating multiple offers (and best price). Make sure you are able to recognize this and offer accordingly 2.Act quickly - visit the property as soon as it comes on the market and be prepared to make an offer immediately if this is it! 3.Make a strong but fair offer 4.Lean on your realtor again, for tips in making your offer the best - not always best price, be flexible on maybe renting back to owner for a couple of months? Creativity is key, will allow for you to win the property even if you are not the best priced 5. Be flexible with any request the seller may come back with And of course, pre-approval is key!!

In general, your real estate agent will be able to guide you on this one, it depends on market conditions. But in todays' market, with the limited amount of inventories, it is best not to wait, you may not catch the markets' best momentum. Focus on doing quick enhancements such as paint, landscaping, replacing burnt out light bulbs, recaulking, cleaning and decluttering - and hit the market as soon as possible! You will be glad you did!

All experts agree that at least for the next couple of years prices will continue their upward trend Main reasons behind this: ✅ economic conditions ✅ low inventories ( and builders lack of ability to produce major inventory in the short run) ✅ historically low interest rates ✅ Also contributing in Miami are economic conditions in many Latin American countries ✅ tax advantages attracting more buyers from other states ( NY and California mainly) ✅ millennials purchasing

The National Association of Realtors (NAR) estimates that, on average, staged homes sell 88% faster and for 20% more than non-staged homes so I would definitely recommed it- Depending on the price of the property you may decide to spend more or less in staging - and remember: Cleaning, Decluttering and Depersonalizing is key!