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As we’ve discussed in past articles, the home buying process comes with many frequently asked questions, but the home selling process is no different. Whether you have never sold a home or have sold half a dozen, there are many questions that can come up. This  is due to the fact that selling a home isn’t a process that is practiced regularly by homeowners and also that rules, regulations, and the industry change on a daily basis. Keep reading to have some of the most common questions about selling a home clarified!

 

When is the best time to sell my home?

Every real estate market is different, therefore, the best time to sell a home will be different from real estate community to community. Since every home seller’s situation is different, you should discuss the timing of your home sale with your local real estate agent.

 

How is the real estate market now?

A frequently asked question from many home sellers before listing their home for sale is related to the local real estate market. There are many market indicators that a professional realtor should be able to share with you to help explain the condition of the local market. One of the most important indicators on market conditions is average days on the market. The average days on market can indicate to a seller how quickly homes are selling when listed for sale.

 

Other examples of market condition indicators that your real estate agent will provide before listing a home include market absorption rates, number of closed transactions year-over-year for a given month, average sale prices, and average list price to sale price ratios. 

 

What steps should I take to prepare my home for sale?

There are several things you need to know before listing your home for sale! Not properly preparing a home for sale can put a homeowner at a huge disadvantage.

 

The expression “You never get a second chance to make a first impression” is absolutely true when it comes to selling a home. When selling a home you must be sure that it presents itself in the best possible light. Making sure clutter is at a minimum, freshly painting rooms, installing new carpeting, or ensuring odors are non-existent are just a handful of things that should be done before listing your home for sale. Read some home staging tips by clicking here!

 

How much is my home worth?

Of course, every homeowner wants to know how much their home is worth. One of the best perks to owning a home is the ability to make it your own and improve it how you’d like. To get the most accurate estimate for your home’s worth, contact your local real estate company.

 

What is the difference between a list price and sale price?

The list price is the price a home is currently listed for sale at. The sale price is the price a home is sold at. Your realtor should be able to suggest a list price that ends up being very close to the final sale price.

 

How do you determine how much my home is worth?

There are a handful of methods that real estate agents use to determine the value of a home.  The most common method to determine the value of a home is by completing a comparative market analysis. A comparative market analysis is an in-depth evaluation of recently sold “comparable” homes in the past 6-12 months. A comparative market analysis, also known as a “CMA,” should greatly narrow the sale price range.

 

A professionally completed CMA will take into account many features of not only a home, but also the local area and neighborhood. Considerations that a professionally completed CMA include, but not limited to:

 

  • Square footage
  • Number of bedrooms
  • Number of bathrooms
  • Upgrades to kitchen
  • Window quality
  • Roof age
  • Lot features
  • Location; primary or neighborhood street?
  • Style of residence
  • Flooring type

 

What happens if the appraised value comes in too low?

In addition to ensuring there are no safety hazards at a home, the bank appraiser is also making sure that the home value is at least what a buyer and seller agree too. If an appraiser determines the value of the subject property is lower than the agreed purchase amount, there are a couple different scenarios.

 

Seller Makes Concession. This is the most common result when an appraisal comes in too low. The seller must agree to sell the home for what the appraiser determines as the acceptable value.

 

Buyer Comes Up With Difference. The buyer must bridge the difference between the purchase price and the appraised value. This scenario is fairly uncommon as many buyer’s find it hard to pay more for a home than their bank appraisal indicates it’s worth.

 

The Transaction is Canceled. Unfortunately for both the seller and buyer, this is a common result from a property under appraising. If the buyer does not want to bridge the difference and the seller does not want to make the concession and adjust the sale price, the transaction is canceled.

 

Challenge Appraisal. Challenging an appraisal is not an easy task. It is something that must be done with much care and consideration, otherwise the chances of an appraised value being changed, is slim.

 

What are seller concessions?

Depending on what type of financing the potential purchaser is obtaining, the option to receive seller concessions may or may not be an option. There are many home buyer’s in the marketplace with great credit scores and solid jobs but are short on the money required to purchase a home. Seller concessions allow a homeowner to contribute a percentage or dollar amount towards a buyer’s closing costs and/or pre-paid items. For example, a buyer who qualifies for an FHA mortgage can receive up to 6% of the purchase price towards their closing costs. This can be a significant amount of money and can be the difference between a buyer being able to afford a home and the seller being able to sell.

 

What are the common closing expenses for home sellers?

There are expenses that the buyer will have that the seller will not and vice versa. Typical closing expenses for home sellers include the abstract and title search, instrument survey, real estate commissions, and transfer taxes which also are known as revenue stamps.

 

How does the inspection phase work?

Inspections are a common contingency that buyer’s make their purchase offers subject to. There are different types of inspections and tests that a buyer has the right to perform. In most cases, inspections are at the expense of the buyer. They have a specified number of days to complete the inspections and also a specified number of days to either remove the inspection contingencies or request the seller address findings from the inspections.

 

Should I be present during showings at my home?

Most commonly the answer here is no. There are many reasons why sellers should not be present during showings. The primary reason why you should not be present at showings of your home is that potential buyer’s can feel uncomfortable talking openly with their realtor about your home. It’s best to be away from your home during showings.

 

There are many more questions that come to mind during the process of selling your property. Our team at Coldwell Banker Carroll Realty has the most up-to-date information to better serve you no matter if you are in the process of buying or selling property! Our local agents will make sure you are in the know when buying or selling a home with us. We have experienced real estate professionals throughout 30a, Panama City, and Panama City Beach ready to help! Contact any of our Coldwell Banker Carroll Realty offices to get started today.

Buying real estate is a big endeavor with many steps which in turn and unsurprisingly, leads to a lot of questions. Understanding the basics of buying a home is a great place to start. That’s why we are answering the most common questions asked by home buyers below.

 

What is the first step in the home buying process?

The first step should be getting a mortgage pre-approval. Unless you are paying cash for a house, you will need to get a mortgage. In order to know how much home you can afford, you will need to get pre-approved for a loan. This is the first-step in the home buying process.

 

Should I talk with a bank before looking at homes?

Much like the first question above, there are tons of reasons why you should talk with a bank and get pre-approved before looking at homes. First and most importantly, talking with a bank before looking at homes helps you understand exactly how much you can afford. There is no reason to look at homes that are listed for $300,000 if you can only afford up to $250,000.

 

If you’re a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available. These programs can vary from state to state and county to county, so knowing exactly what’s available to you, is critical.

 

Finally, another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home. There are many home buyers who don’t understand the difference between a down payment, prepaid items, and escrows, which can be thoroughly explained by a mortgage professional. A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller’s concession.

 

Do I really need a real estate agent when buying a home?

There are many reasons you want to hire a real estate agent when buying OR selling property. Buyers usually have a pretty solid idea in mind of what they want in a property, from number of bedrooms and bathrooms, to an attached garage to any number of other must-have and must-not-have factors. You’ll probably feel pretty comfortable looking at homes with that list tucked firmly in the back of your mind. But your agent will be alert for issues that might not cross your mind, such as maintenance issues, additional hidden fees, roofing problems, and mold and insect issues. An agent will recognize the telltale signs of these problems and know how best to approach them. Your agent can hand over researched, current, and reputable data regarding a neighborhood’s demographics, crime rates, schools, and other important factors. That’s a lot of time-consuming research to do on your own, particularly if you don’t know where to start. You can read more reasons why hiring a real estate agent benefits you by clicking here.

 

What is pre-qualifying versus pre-approval?

In pre-qualification, you are given an estimate of what you may be able to borrow. This is a quick way to know what price range you should be looking in. Pre-approval means a financial institution has agreed to work with you and has taken a thorough look through your finances.

 

How much money do I need for a down payment?

The answer may surprise you, but it’s no longer 20%. All loan options are different, but the average down payment is now 3% to 5%. If you or the property you’re purchasing qualifies for a VA or USDA loan, you aren’t required to put any money down. Loans can be complicated, read more about qualifying for a loan here.

 

How many homes should I see before making an offer?

You should see as many as you need to ensure you find your dream home! On average, home buyers will look at hundreds of homes online but will see anywhere from 8 to 15 homes in person before writing an offer. If you’re looking for a way to narrow down your search, talk to your real estate agent about getting a current up-to-date list of what’s available in your desired communities. 

 

Can I buy a home and sell my current one at the same time?

Absolutely! Of course, there are pros and cons to buying a home before selling your current home and the same can be said about selling your current home before buying another. The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up. This can reduce the stress and pressure of having to find a home once your current home is sold. 

Alternatively, the time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you’re purchasing due to the fact you are purchasing without the sale contingency of your current home.

 

Who pays realtor fees?

One reason why buyers ask the question about the need of having a realtor when buying a home is because they don’t understand who pays the agent fees when buying a home. There are no guarantees, however, in most cases the seller pays the realtor fees.

 

When can I back out if I change my mind?

You can always back out of a deal, but you may have to forfeit the earnest money you put down with the offer. Earnest money is typically around 1%-2% of the home’s price.

 

Besides the down payment, what are the other fees involved?

You should also take into consideration the loan origination and closing costs. The down payment is usually the largest cost associated when buying a house and lending fees tend to be the second most. Many lenders will charge between 2% to 4% of the loan amount for loan origination fees, depending on the loan type. Conventional loans usually have lower loan origination fees, but require more money down.

 

When do I get the keys to my new home?

Usually, you will get the keys at the closing. Once you find a house and have an accepted offer, it usually takes around 30 days to close. If everything goes relatively smoothly between the buyer and the seller then you can expect it to take around 40 days total. In some cases, the lender will need time to fund the loan and you will need to pick up the keys after the loan has been funded. If you have a Friday evening closing and the loan cannot be funded until Monday, you may not get the keys until Monday. Make sure to coordinate your closing to get the keys on the same day, if that is what you want or need.

 

There are many more questions that come to mind during the home buying process. Our team at Coldwell Banker Carroll Realty has the most up-to-date information to better serve you no matter if you are in the process of buying or selling property! Our local agents will make sure you are in the know when buying or selling a home with us. We have experienced real estate professionals throughout 30a, Panama City, and Panama City Beach ready to help! Contact any of our Coldwell Banker Carroll Realty offices to get started today. 

When you picture the Emerald Coast of Florida, one may think of the fabulous white sand beaches and clear blue water, but there is so much more to the area. The vibrant Walton County area is a haven of talented artists and their work, evident by the Monarch Art Trail along Watersound Parkway.

Origins of the Project

The Cultural Arts Alliance developed the Monarch Art Trail sculpture project with The St. Joe Community Foundation. And the inspiration for the project was born out of the yearly monarch butterfly migration to the area and the community incentives of public art installations.

 

 

Sculpture Selection

A call to action was sent out to interested artists in the spring of 2021. The directives were simple, create a sculpture design related to the South Walton County environment and the Monarch butterfly migration pattern. Of the 40 submitted plans, the committee overseeing the Monarch Art Trail project chose eight designs for the pathway. The original proposed designs had to be finished in less than five months after their proposed design was selected and durable toward the surrounding natural elements.

 

 

The Themes of the 8 Wonders

The trail extends from the Scenic Highway 30A to U.S. Highway 98 along Watersound Parkway. Throughout the walk along the Monarch Art Trail, the theme of environmentalism, the spirit of the Monarch Butterfly and human connectivity to nature around them. The art does an excellent job of not taking away from the natural flora and fauna surrounding the pieces but connecting with them instead. Though each sculpture expresses a different story and artistic interpretation, they all feel interconnected as you go down the wooded pathway.

 

Whether you find yourself in the Walton County area for a long weekend or an extended stent of time, the Monarch Art Trail is a must-see attraction.

Though mortgage rates are on the rise, don’t lose hope! The keys are to know your budget, maintain perspective and have a plan. Mortgage rates are currently averaging 4.5% to 5.5% — up from just 3.22% at the start of the year As a result of rising rates and rising home prices, the typical mortgage payment is now $500 higher than it was at the start of 2022. 

 

As with any home-buying decision, the better prepared you are the more likely you’ll achieve your goal. The tips below will help you handle rising rates, whether it means going ahead with a home purchase or taking a step back and regrouping.

 

Be Flexible with Your Budget

When mortgage rates are relatively steady or declining, it can be possible to get a decent read on your spending power before you actually make an offer on a home. When rates are volatile or rising, like the present, homebuyers need to be more flexible.

 

When rates were below 3%, buyers had the happy circumstance of being able to afford larger and higher-priced homes because the monthly payments were affordable. That is no longer the case. With increasing rates, buying power is reduced. When rates are changing as quickly as they are now, you need to keep running the numbers. Keeping in touch with your lender and adjusting your budget accordingly can help avoid sticker shock and disappointment down the road.

 

Don’t Time the Market

Instead of trying to time your home purchase to a specific interest rate, consider focusing on the non-financial reasons that make it the right time to buy. These can be life events such as marriage, having children or moving closer to aging parents to help with their care. Then work out the financial side of the equation.

 

Of course, there are economic reasons for buying a home, as the financial benefits accrue over a long period of time. On the other hand, trying to buy a home for fear of missing out on a lower rate can lead you to stretch beyond what you can comfortably afford. If you’re not financially ready to take on such a large debt, you may find yourself struggling to meet other expenses.

 

Be Open to Housing Alternatives

Home values have soared over the past two years as the supply of homes on the market is nowhere near enough to satisfy buyer demand. As a result, the average national price for actively listed single-family homes increased to an all-time high of $405,000 this past March, according to Realtor.com.

 

While overall home prices have gone up, some markets and neighborhoods are still relatively affordable, so consider expanding your search to some areas you may not have originally imagined yourself living. You can also look at different housing options such as condos or townhomes, where prices are still more affordable than your traditional stand alone family home.

 

Strengthen Your Mortgage Applications

In addition to market trends, the actual rate a lender will offer you will be based on your income, total debts, credit score and other financial factors. One way you can improve your chances of getting a lower rate is by paying off or reducing higher interest debts, such as credit cards.

 

Other steps you can take to improve your credit score include paying your bills on time and correcting any mistakes you find on your credit report. The better your score, the more likely it is you’ll find a more favorable mortgage rate.

 

Be Patient

At some point, rates may rise high enough that buying no longer makes sense for your situation. Perhaps monthly payments will rise to a level that you are not willing or able to pay. Or maybe, you’ll find that the combination of high rates and high home prices means you cannot afford a home you’ll be happy with. You can always take a break by taking a step back from the market so you can give yourself more time to solidify your financial position, either by saving more for a down payment, improving your credit score or paying off debt.

 

Buying property in the current market can be very stressful. Our team at Coldwell Banker Carroll Realty is ready to guide you in the home buying process in any market. Our local agents are well-equipped to get you the best prices and rates. We have experienced real estate professionals throughout 30a, Panama City, and Panama City Beach ready to help! Contact any of our Coldwell Banker Carroll Realty offices to get started today. 

Real estate is full of confusing vernacular that can be overwhelming in an already stressful process. Whether you’re buying or selling a home, it’s important you’re up to date on the most used real estate terminology. 

 

As promised, we have extended our list of important real estate terms that you should familiarize yourself with to help you better understand the process of buying or selling a home in Panama City, Panama City Beach, 30a and beyond!

 

General Real Estate Terms

 

  • As-is indicates that the seller is unwilling to perform most if not all repairs. It could also mean that it is priced “as is”, which is typically lower than market pricing in the area.
  • Buyer’s Agent, also known as a selling agent, is a licensed real estate professional whose job is to locate a buyer’s next property, represent their interests by negotiating on behalf of that buyer to obtain the best price and purchasing scenario for that buyer as possible. This agent is a fiduciary for the buyer.
  • Listing Agent, also known as the seller’s agent, is a licensed real estate professional whose job is to market the seller’s property, and to represent the seller’s best interest by negotiating on behalf of the seller to secure the best price and selling scenario as possible. This agent is a fiduciary for the seller.
  • Closing is when the home sale is considered final, which typically includes all parties’ signatures on all required documents, all monies conveyed, and when a lender is involved, with full lender’s approval.
  • Closing Costs are an assortment of fees, including fees charged by: a lender, the title company, attorneys, insurance companies, taxing authorities, homeowner’s associations, real estate agents, and other closing settlement related companies. These closing costs are typically paid at the time of closing a real estate transaction.
  • Days on market (DOM) is defined as the number of days from the date on which the property is listed for sale on the local real estate brokers’ multiple listing service (MLS) to the date when the seller has signed a contract for the sale of the property with the buyer. A related metric is the average DOM for homes sold in a market during a specified period. A low average DOM indicates a strong market that favors sellers. A high average DOM signals a weak market that favors buyers. Seasonality can also be a factor.
  • A Due Diligence period of time might be available in the purchase agreement, which is a time frame provided to a buyer to fully examine a property, often by hiring experts to inspect the property, perform tests, etc., so that a buyer may decide on how to proceed. A buyer might also be afforded an opportunity to renegotiate the contract based on their findings or possibly even to terminate within a specified time period, in order to not be considered in default of the contract. Due diligence allows a buyer to fully understand what they are buying.
  • An Escrow Holder is the agent and depositary (impartial third-party) who collects the money, written instruments, documents, personal property, or other things of value to be held until the happening of specified events or the performance of described conditions, usually set forth in mutual, written instructions from the parties.
  • A Homeowner’s Association (HOA) is a private association that manages a planned community or condominium. When you purchase a property that is managed by an HOA, you agree to abide by the HOA’s rules and pay its monthly or annual HOA dues. If you fail to pay and/or comply, they often have the ability to file a lien against the property and/or foreclose on the property.
  • A Multiple Listing Service or MLS is a database that allows real estate agent and broker members to access and add information about properties for sale in an area. When a home is listed for sale, it gets logged into the local MLS by a listing agent. Buyer’s agents often check the MLS to see what’s on the market and what similar homes have sold for. According to Inman.com, there are over 600 MLS organizations in the United States.
  • An actively licensed real estate agent and REALTOR® are often used interchangeably, although not every real estate agent is a REALTOR®. A REALTOR® is a member of the National Association of REALTORS® (NAR). A REALTOR® promises to uphold the Code of Ethics of the association and to hold each other accountable for when serving the public, customers, clients and each other, with a high standard of practice and care.

 

Listing & Property Information

 

  • A Conventional Sale is when the property is owned outright (has no mortgage remaining) or the owner owes less on their mortgage than what the market indicates the owner could sell their property for.
  • Short Sale is when the property is being sold for less than the debt secured by the property. Short sales will require the approval of the seller’s lender(s) as the proceeds of the sale will be just “short” of the amount owed; most lenders’ processes of approving short sales are long and drawn out, requiring more time to close than a traditional sale.
  • Probate Sale happens when a homeowner dies without writing a will or leaving a property to someone. In such situations, the probate court would authorize an estate attorney, or other representative, to hire a real estate agent to sell the home.
  • Real-Estate Owned (REO) is a designation given to properties which are owned by a lender due to an unsuccessful foreclosure sale at auction. REO properties can sometimes present an opportunity for a buyer to be purchased for below market value as most banks would prefer to reinvest the proceeds, rather than waste time marketing the property for an extended period.
  • Land Lease – Traditionally, when you purchase a home, you own the home and the land the property is built on. There are some circumstances that involve a land lease, which means you would own the home while paying rent to the landowner for the land.
  • Rent-back, or leaseback, refers to an arrangement whereby the buyer, who is now the new homeowner, agrees to allow the seller, the now-tenant, to stay in the house beyond the close of escrow. The terms are negotiated prior to the situation occurring and will often involve a lease deposit, a daily rental rate, and a length of time allowable.
  • A Trust Sale means that the home is being sold by a trustee of a living trust – and not a private party. More often than not this is because the original homeowner has passed away, or has placed their assets in a living trust. The trustee may not be as emotionally attached to the property as a traditional owner, which could translate to them accepting a less attractive offer as the trustee may prefer to offload the property.
  • Tenancy In Common describes a type of joint ownership of a property, whether a single family property or a commercial building. The tenants in common all own the property, but in different ratios.

 

Financial & Documentation

 

  • Adjustable-Rate Mortgage (ARM) interest rates can change after an initial fixed rate period as they adjust based on the interest rate index the ARM is tied to (e.g., LIBOR, COFI, etc.). 
  • Debt-to-income, or DTI, ratio is a number used by mortgage lenders which is determined by the total of your debt expenses, plus your monthly housing payment, divided by your gross monthly income and multiplied by 100. This helps lenders determine affordability based on their available loan programs and allows them to estimate how much you can afford to pay monthly for a mortgage.
  • Equity is the investment a homeowner has in their home. To calculate equity, take the market value of the home and subtract any mortgages or liens against the property. The amount leftover is the amount of equity you have in the home.
  • Fixed-Rate Mortgages, your interest rate stays the same for the duration of the loan. They are often available as 10, 15, 20 & 30-year loans.
  • Purchase and Sale Agreement (PSA) is commonly referred to a written contract between the buyer and seller, which outlines the terms of the parties to sell and purchase real property.
  • A Seller’s Disclosure is a disclosure by the seller of information about the property, or which could affect a buyer’s decision to purchase the property, all of which to the best of the seller’s knowledge.
  • FHA loans are part of a group of loans that are insured by the federal government. This means that instead of actually lending money, the FHA insures banks and private lenders that they will cover losses they might incur in the event that the borrower does not repay the loan in full or timely. 
  • Hard money loans are a way to borrow without using traditional lenders. Hard money lenders finance the loan based on the property in question, not on your credit score, and typically require a large down payment and short repayment schedule.
  • Getting a Mortgage Pre-approval Letter is important because it gives home buyers an idea of what they can afford. A mortgage pre-approval letter is issued by the lender and identifies the terms, loan type and loan amount the buyer qualifies for after checking the buyer’s debt-to-income ratios along with cash on hand and credit history.
  • Pre-approval requires home buyers to fill out an application that allows a lender to determine their financial situation, including their debt-to-income ratio, ability to repay and credit-worthiness. Once this is in hand, the lender can give the buyer a letter stating the exact loan amount they have been pre-approved for along with the total sales price they are approved for.
  • A Preliminary Report reveals any issues with a title that need to be dealt with by the seller in order to deliver a clear title. It gives details such as ownership history, liens, and easements. The title company gathers this report by searching existing property records at the county recorder’s office.
  • A Pre-qualification is a lender’ estimate of the amount a home buyer can expect to be approved for during the loan process. Getting pre-qualified is a quick assessment by a lender of the buyer’s financial situation based solely off of what a buyer tells a lender, and not based on any proof or verifications.
  • A VA loan is a loan guaranteed by the government (Department of Veteran Affairs) and available to the military, active and retired, and even for some eligible spouses, at low-to-no-down payment scenarios with competitive rates and fees.

 

Offers & Contingencies

    • Appraisal – required to gather the estimated value of a piece of real estate. During the home sale, the mortgage lender sends out an appraiser to get a professional opinion of the value of the property. This helps the lender decide if the property is worth the amount of the loan the potential buyer is seeking.
    • An Appraisal Contingency is a clause that allows a buyer to dissolve a purchase agreement if a home’s appraised value is less than the sale price. An appraiser hired by the buyer’s lender evaluates the value of the home to ensure that the loan is secured by an appropriate home value. Lenders want to ensure they are not “over-paying” for a property.
    • Blind Offer – When a buyer makes an offer on a property they haven’t seen, even when it was possible to see it, that offer is considered a “blind offer”. It is most commonly used in a highly competitive area and/or circumstance and used as an attempt to be first and win quickly.
    • Backup Offer – When a buyer is interested in purchasing a property that is already under contract with someone else, that buyer has an opportunity to submit a “backup offer”, in case the first transaction falls apart. A backup offer must still be negotiated and any monies, such as earnest money, submitted, to confirm it is the next offer in line. There can only be one backup offer legally, as you cannot have a backup to the backup.
    • A Loan Contingency is a clause or addendum (also known as a mortgage contingency) in an offer contract that allows a buyer to back out of a deal and keep their deposit if they are unable to secure a mortgage with specified terms during a fixed period of time.
    • A Home Sale Contingency is for a buyer to indicate to a seller that part of their condition to purchase the seller’s property relies on the buyer’s ability to finalize a close on their current property. This is often negotiated with a clause in a contract or with an addendum to a contract. An example of how such a contingency can be used would be if a buyer needs to sell their property in order to have the down payment required on the purchase of the new property, or would rather use their sale proceeds instead of their savings to make the down payment.
    • An Inspection happens when buyers pay a licensed professional inspector to visit the home and prepare a report on its condition and any needed repairs. The inspection often happens as part of the due diligence period, so buyers can fully assess if they want to buy a particular home as is, or ask the seller to either complete or pay for certain repairs.
    • Seller Concession – Sellers may offer concessions to incentivize buyers to purchase the home, or sweeten the deal.
    • A Title Search examines public records for the history of the home, including sales, purchases, tax, and other types of liens.

 

  • Offer / Counter Offer – Buyers make a formal offer on the home they want to purchase. The offer can be the full list price, or what you and your agent deem a fair market value. The buyer’s agent puts the offer in writing, asks you to sign it, and then submits it to the seller’s agent. The seller might immediately accept it, in which case it becomes the parties’ purchase contract, or may make what’s known as a counter offer. 

 

Real Estate is an ever-growing and changing industry! Our team at Coldwell Banker Carroll Realty has the most up-to-date information to better serve you no matter if you are in the process of buying or selling property. Our local agents will make sure you are in the know when buying or selling a home with us. We have experienced real estate professionals throughout 30a, Panama City, and Panama City Beach ready to help! Contact any of our Coldwell Banker Carroll Realty offices to get started today.

When you put your home on the market, you should expect to receive lower offers than you would accept. However, you still have to refuse the offer, and you should do so using proper etiquette. There are many reasons and ways to reject an offer which we discuss below.

You own your house until you accept an offer and go through all the paperwork, and you’re under no obligation to accept anything. That being said, here are some of the most common reasons sellers reject offers.

 

Lowball Offer

If you or your listing agent has done their homework well, you priced your house according to what comparable houses in your area are selling for. That price is one most people consider fair. Any offer asking for 30% off your listing price is considered a lowball offer.

Many potential buyers plan on negotiating a price and enter the bid with a low offer, just to see if you’ll accept it. Sometimes, these low offers don’t come in the form of a low number, but rather they ask for a number of concessions from the seller.

Concessions are any requirements the buyers or sellers must complete before the house closes. These concessions (often in the form of contingencies) can be in the form of the condition that the buyer’s house must sell first, the house must pass an inspection, or the house must appraise for the offer price.

While you do not always have to reject a lowball offer or turn away offers with contingencies attached, you should consult with your real estate expert to completely understand the terms before accepting these types of offers.

 

Prejudiced Against Loans

Some homeowners will reject your offer if you’re using a certain type of loan, such as an FHA loan. While these loans are not inferior to other types of loans, the listing agent may prefer to work with other types of loans that may have less stringent home buying stipulations.

Before you reject any offer based on the loan type alone, do your own research! You may find out that you’re perfectly fine with the loan option you got initially.

 

Questionable Funding

A buyer that plans on using a loan to fund the purchase of your house will often include a pre-approval letter from their lender proving they are eligible for a loan of that amount. A pre-approval letter (while not required) gives the seller peace of mind about the house closing if they accept this offer. If the seller has any reason to doubt the funding of the potential buyer, they will usually turn down the offer.

 

Receiving a Better Offer

In competitive markets, sellers will often wait until they have several offers submitted before accepting one and rejecting the rest. In instances like this, homeowners usually won’t provide much of an explanation as to why they rejected the offer.

 

Proper Way to Refuse a Home Purchase Offer

Get back in a timely manner.

If someone submits an offer that you aren’t satisfied with, don’t leave them in the dust. Respond to them before their offer expires (it typically says when this is on their offer). Simply letting their offer expire is something most consider rude, and a sure way to make sure the buyer won’t offer again if you don’t receive any other offers.

 

Refuse with a counter offer.

If you want to counter their offer, have your realtor cross off the original offer price on the Purchase to Sell agreement and send it back. This document can get rather complicated depending on how many times it gets passed back and forth. Prevent this by asking your real estate agent to reach out to theirs with your best offer.

 

Refuse outright.

If you’re certain that you don’t want to entertain any offer from the potential buyer or don’t want to counteroffer, have your estate agent reach out via email with a simple reply of, “My client does not accept that offer.” It doesn’t have to be extravagant to get the job done.

 

Whether you are buying or selling your home, Coldwell Banker Carroll Realty’s local realtors are ready to help you get the most bang for your buck! We have experienced real estate agents throughout Panama City, Panama City Beach, and 30a ready to meet with you! Contact us today to get help from professional, local real estate agents. 

Are you planning on selling your home? If you’re planning to sell in the near future, you’ve probably been thinking about a home inspection. But what about a pre-listing home inspection? A pre-listing home inspection is when you, the seller, hire a professional home inspector to perform a thorough examination of the state of your property before you put it on the market. Generally, once a property is listed, an interested buyer will hire another professional inspector  of their own. This is the exact reason why some sellers opt-out of having their own home pre-inspection.

If you’re on the fence about having a home inspection before listing your property, we’ve listed some pros and cons of this process to help you make a more informed decision!

 

Pros of a Pre-Listing Home Inspection

Identifies the Condition of your Home

One of the main advantages of having a pre-listing home inspection is that it reveals the current condition of your home. There are a number of aspects in your home that can be deceiving and it is better to find out the actual condition of your home rather than getting surprised afterward once the buyer has conducted their own inspection.

Cheaper or DIY Repairs

A pre-listing inspection gives you the option to perform the repairs needed yourself. If the inspection report shows that there are minor issues that you know you can easily repair, then that will save you money down the road. If the inspection uncovers major issues, you will have the freedom to hire a general contractor that you trust and can afford on your own budget.

More Accurate Pricing

Having a pre-listing home inspection allows you to get a better idea on the worth of the property. If you are blindly pricing your home, you may have a difficult time selling your home. An overpriced home may lead you to have fewer offers, whereas an underpriced home may cause you to lose money, and no one wants that!

As the inspection report will reveal the condition of your home, you will have a better idea of where your home sits in the market. This will also help you once you have hired a realtor to help you with this process.

 

Cons of a Pre-Listing Home Inspection

Additional Expense

An obvious disadvantage to having a pre-listing home inspection is the additional expense. A typical home inspection will cost you a minimum of $200. Whereas if you opt to just skip a pre-listing inspection and wait for the buyer to request for their own, you wouldn’t need to spend the extra money.

 

Going Through Two Inspections

The buyer will eventually ask for their own home inspection, so although it is recommended that you get a pre-listing home inspection, it is not required. There is also a slim possibility that the home inspection report that you get is different from the results received by the buyer. Naturally, the buyer will have to trust their inspection report over yours and you would have lost your leverage.

 

Full Disclosure

As a seller, you are required to disclose any findings that you are aware of regarding your property. This includes all of the renovations and changes that you have done to the property. By opting to have your home inspected, you are now committing yourself to disclose these findings to the buyer. Regardless if these are minor or major issues, you are required to share your findings, and this can be a deal-breaker for some buyers.

 

Are you still unsure if you want to perform a pre-listing home inspection? It’s always beneficial to talk with your local real estate agency to discuss any concerns you may have about this process.

 

Our real estate agents at Coldwell Banker Carroll Realty have the knowledge and experience to help you along the way. We have local realtors throughout Panama City, Panama City Beach, and 30a ready to help you on your way. Contact our locally owned, nationally recognized realty team today.

 

Good real estate agents are involved in both offering knowledge and selling real estate to the client. The main objective of real estate agents is to sell properties. However, an excellent real estate agent focuses not only on selling the property in question but also on educating the client so that they become familiar with the entire buying or selling process. 

For example, if you want to sell your home, a real estate agent can advise you on current market trends, the best time to sell your home, how to advertise your home, and perhaps how to do renovations to attract more buyers. If you are looking to buy a home, your chosen agent will be able to help you navigate the market to get you the best deal possible, without any of the stress!

Both sides can benefit significantly from hiring a real estate agent to assist them. Keep reading to learn why.

 

Agents Know What to Look For

Buyers usually have a pretty solid idea in mind of what they want in a property, from number of bedrooms and bathrooms, to an attached garage to any number of other must-have and must-not-have factors. You’ll probably feel pretty comfortable looking at homes with that list tucked firmly in the back of your mind.

But your agent will be alert for issues that might not cross your mind, such as maintenance issues, additional hidden fees, roofing problems, and mold and insect issues. An agent will recognize the telltale signs of these problems and know how best to approach them. 

You know exactly how much you want for your home if you’re the seller, but is the price you’ve arrived at reasonable? You might only know for sure if you’re able to identify comparable sales that confirm that you’re in the right range. But real estate agents can do comparative market analysis in their sleep!

Your agent can hand over researched, current, and reputable data regarding a neighborhood’s demographics, crime rates, schools, and other important factors. That’s a lot of time-consuming research to do on your own, particularly if you don’t know where to start. 

Money Matters

An experienced real estate agent knows exactly what to do to get you the most bang for your buck, no matter if you are looking to buy property, or sell your current home. They understand the process of paperwork, additional fees and expenses that may pop up along the way, and what to look for when you’re on a strict budget.

If you are worried about commission, you’re probably going to have to pay a commission anyway if your buyer is represented by an agent. The buyer’s agent’s commission is typically factored into the deal—although you’ll still save on the commission you would otherwise have paid your own agent.  

Attention to Detail

You might be out of your element when it comes to reviewing and understanding the documents involved in a real estate deal, and you should have a thorough understanding of what you’re getting into regardless of whether you’re buying or selling. Purchase agreements alone can be 10 pages long, not to mention federal, state, and local document requirements. 

Lucky for you, your agent will be far more familiar with the legality of it all. Consider this if you’re still thinking about saving money: Some mistakes in these documents can cost you! Here’s an example: Maybe a buyer makes an offer on a home, but it’s contingent on getting a mortgage. There’s no possibility that the buyer could purchase the property without first securing financing, but there’s no contingency built into the purchase agreement to let the buyer out of the deal if financing fails. The buyer is obligated to go through with the sale or be sued if it turns out that a mortgage isn’t happening. 

Discover Hidden Property Listings

For all of our interested buyers, this one’s for you.While you can always search online for available homes for sale, the National Association of REALTORS (NAR) discovered more than half of home buyers in the U.S. experienced the most difficulty with finding the right property when beginning the process on their own. That fact alone is a good reason why all homebuyers, especially first-time homebuyers, can benefit from a realtor since they have access to internal resources with a list of homes that have yet to hit the market. From the Multiple Listing Service (MLS) to “off-market” listings, they can find homes that match your criteria in faster time!

Superior Negotiation Skills

The homebuying process almost always includes negotiations, and with the right real estate professional, you can get a better deal on your dream home. A few expenses that can be negotiated down are closing costs, home warranty premiums, repair costs, and cosmetic updates to the home. 

A real estate agent can negotiate on your behalf to bring down the overall cost of buying a property and even fight for additional incentives to take advantage of – like keeping recently added appliances or having the seller cover the closing costs.

 

No matter which side of the real estate process you are on, Coldwell Banker Carroll Realty’s local realtors are ready to help you get the most bang for your buck! We have experienced real estate agents throughout Panama City, Panama City Beach, and 30a ready to meet with you! Contact us today to get help from professional, local real estate agents.

The strong demand for rental property, low interest rates, and the potential for large returns are helping to make real estate an increasingly popular investment. We’ll take a look at the best reasons to get started with real estate investing, and some tips for purchasing rentals.

People invest in real estate for several reasons, including generating income, profiting from the potential appreciation in property value over the long term, and reducing taxable net income. 

One of the unique things about real estate as an investment asset is that it may be possible to achieve all three of these things – income, long-term profit, and tax savings – at the same time while using your renters money.

Generate Income

Another reason people invest in real estate is to generate monthly cash flow. Depending on the type of real estate owned, an investor may earn income from dividend distributions from a REIT or crowdfund, or an annual cash return by directly owning a property. 

Profit from Long-term Appreciation

Housing prices historically increase in value when held for the long term, although there may also be times when home prices decline. 

According to the Federal Reserve, the median sales price of houses sold in the U.S. has increased by more than 25% since the 2nd quarter of 2020, and by over 94% since the end of the Global Financial Crisis (GFC) of 2007-2009. 

Save Money on Taxes

The IRS offers real estate investors numerous tax deductions to reduce taxable net income. For example, rental property owners can deduct ordinary expenses from rental income collected, including:

  • Property management fees
  • Leasing commissions
  • Repairs and maintenance
  • Mortgage interest
  • Property taxes
  • Insurance
  • HOA fees

Tips for Choosing a Single-family Rental

While investing in a single-family rental may offer the opportunity for recurring returns, directly owning rental real estate requires work and planning as well. Here are tips potential investors should consider before purchasing a single-family rental home:

  • Pay off high-interest personal debt so that extra cash is available if and when it is needed.
  • Save or raise money for a down payment, normally 25% of the purchase price for an investment property loan.
  • Find a location where the population and job market are growing and the demand for rental property is strong.
  • Contribute to a capital expense account so that you have savings available for major repairs and updating.
  • Work with a trusted, professional real estate agent to help you find a property that works for you. By working with an experienced agent, they can help you decide between property management or doing it yourself.
  • Purchase a landlord insurance policy and consider requiring the tenant to obtain a renters insurance policy if the local laws allow.

 

Investing in rental property is a huge decision and requires a lot of research. Instead of starting this process yourself, it’s always beneficial to talk with your local real estate agency to discuss the next steps and look at potential properties. 

Our real estate agents at Coldwell Banker Carroll Realty have the knowledge and experience to help you invest in rental property. We have local realtors throughout Panama City, Panama City Beach, and 30a ready to help you on your way. Contact our locally owned, nationally recognized realty team today.

 

Whole house renovations can add value to your home, but there are ways to upgrade your home without spending your next home’s down payment. Painting, updating, and power washing the outside of your home won’t cost a lot of money, but these do-it-yourself home improvements can add real value to your home.

With some sweat equity, a DIY attitude, and a few dollars, you can list your home for more money when you’re ready to sell. Here are some low cost, high value home improvement projects to consider.

Focus on Efficiency, Not Size

If you can reorganize and equip your kitchen for maximum utility, you may not need to blow out the walls to gain square footage. Start by replacing space-hogging shelves with cabinet-height pullout drawers 8 inches wide, containing racks for canned goods and other items.

You could easily shell out a few thousand to outfit cabinets with upgrades like dividers, pull-out pot trays, and lazy Susans, but you’ll save many times that amount by skipping the addition you thought you needed.

Natural Light, Without Additional Windows

Before cutting a big hole in the side of your house and rearranging the framing, consider less invasive—and less expensive—ways of capturing light.

To brighten up a windowless bath or hallway, for example, you can install a skylight or “light tube”, which slips between roof rafters and funnels sunshine down into your home.

Buy Used

Do-it-yourselfers can reap big savings with recycled or lightly used fixtures and building materials. Habitat for Humanity operates about 400 ReStores nationwide, which offer salvaged materials at half off home-center prices. And, it is better for the planet! 

Install Crown Molding

Putting in crown molding is a surprisingly easy task that can add style to any space. Buy the molding from a home improvement store, cut it to the size that fits your room or have the store cut it for you, and attach it to the top of the wall with a nail gun. These decorative strips may even come painted. Installing crown molding does involve a bit of woodworking skill as well as the right tools, but it is very inexpensive to do yourself.

Replace Fixtures

By updating outlet covers, curtain rods, light and water fixtures, drawer handles, and doorknobs you can add significant spunk for just a few dollars. Attractive fixtures and outlet covers can cost as little as a few dollars apiece but look much more expensive. Light fixtures and decorative curtain rods can be a little pricier, but sometimes you can make an inexpensive piece look elegant with a can of spray paint. Remember, if you plan to sell, be sure to choose items in colors and finishes that will appeal to a broad audience.

Restore Hardwood

Homes that are older are likely to have hardwood floors hiding beneath carpet. If you noticed your floors squeak, this may be a sign that you may have wood floors. If you’re not sure, pull up your carpet in an unnoticeable corner and check. If you have wood, you’re in luck! There’s a good chance you’ll have to refinish them to restore them to their original splendor, but it will be much less expensive than installing new flooring.

Freshen Up Paint

If your walls have scratches and dirty paint, an outdated color, or fading wallpaper, a little elbow grease and a few cans of paint can make a dramatic difference. To maximize the value of your home for a sale, choose a neutral color scheme that unifies the entire house, makes space look more prominent, and appeals to a wide variety of potential buyers.

This works for cabinets in the kitchen and bathroom, too! You could buy all new cabinets and save money by purchasing prefabricated (rather than custom) cabinets and installing them yourself, but that’s more work and money than painting or staining your existing cabinets. White cabinets will brighten a kitchen or bathroom, don’t usually go out of style, and are easy for a future owner to repaint if they want something different.

 

Are you interested in selling your home? Coldwell Banker Carroll Realty’s local realtors are ready to help you get your home to its highest value! We have experienced real estate agents throughout Panama City, Panama City Beach, and 30a ready to meet with you! Contact us today to start looking for your next dream home.

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