Gainesville FL Real Estate Blog

The National Association of Realtors^® has stepped up its challenge to lawmakers encouraging them to take new, decisive actions to address the continuing problems in the housing industry, as well as the ongoing economic crisis.Let’s take a look at the sales statistics for September 2008 to see how the Gainsville FL real estate market looks: 

“Our members see firsthand the impact that an unstable housing market is having on communities all across this great country,” said Richard F. Gaylord, NAR president. “The U.S. Treasury and Congress need to work together to ensure that the American people - not Wall Street and large banks - benefit from the economic recovery plan.”

NAR sent a letter last week to U.S. Treasury Secretary Henry Paulson calling on him to refocus the Federal Housing Finance Agency’s efforts on restoring strength to the mortgage-backed securities market, which would help lower mortgage rates for all home buyers and for those who need to refinance.

Let’s take a look at the Gainesville FL real estate sales statistics for October 2008 to see how the market looks in our area:

The Gainesville FL area single family home sales experienced a 29% decline in new listings in October 2008, when compared against October 2007.  Pending listings were down 40% and the average sales price was down 5% to $215,480 while market times increased by 27 days. 

The Gainesville FL area Condo/TH market saw the average sales price decrease by 5% to $138,249 in October 2008 compared to October 2007.  Likewise, new listings were down 37% and sold listings were down by 55% this October.  Pending sales decreased by 62%, while the average market times increased by 64 days. 

For the latest Gainesville FL real estate sales statistics and market conditions in your area, please call me at 888-424-8841 or visit MyGatorCondo.com.

Pros & Cons Of Owning Gainesville Rental Property  

Investing in Gainesville real estate and owning rental property sounds glamorous, but it isn’t for everyone.

Be sure you know what you’re getting into and understand what you are getting into before signing on the dotted line. Here are some questions you should ask yourself before purchasing an investment property:

• Where will the down payment come from for this property?
• Do you have cash reserves so you handle periods of vacancy, i.e. no income?
• How about reserves for unexpected repairs and other expenses?
• Do you need property to rent immediately or do you have time and money for a “fixer-upper”?
• Will you make needed renovations and repairs or hire someone else for the job?
• What type of property do you want: single family, apartment, duplex, condominium, or vacation property?

Thinking it through ahead of time assures that you won’t get caught making a rash decision you will regret later.

If you decide now is the time to take advantage of lower market prices and invest in Ginesville real estate and rental property, visit GatorHomes.com.

Search all Gainesville real estate and homes for sale.

Gainesville Real Estate: Buying Condo vs Single Family

Condominiums and townhouses offer an affordable option to single-family homes when buying Gainesville real estate, and they’re ideal for those who appreciate a maintenance-free lifestyle. But before you buy, make sure you do your legwork. These are some of the important elements to consider:

• Storage. Some condos have storage lockers, but usually there are no attics or basements to hold extra belongings.
  
• Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you dread yard work, this may be the perfect option for you.
  
• Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.
  
• Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home — good news if you like to travel.
  
• Security. Keyed entries and even doormen are common in many condos. You’re also closer to other people in case of an emergency.
  
• Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees decided by the condo board, whether or not you’re interested in the amenity.
  
• Resale. The ease of selling your unit may be dependent on what else is for sale in your building, since units are usually fairly similar.
  
• Condo rules. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets, or don’t allow owners to rent out their units. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.
  
• Neighbors. You’re much closer to your neighbors in a condo or town home. If possible, try to meet your closest prospective neighbors.  

Thinking of buying Gainesville real estate? Visit GatorHomes.com or give me a call. I’m glad to help!

Search all Gainesville real estate and homes for sale.

Why It’s A Good Time To Buy Gainesville Real Estate

The Gainesville housing market has never been better for many potential buyers. In fact, more often than not, it is less expensive to own your own home rather than rent. 

The National Low Income Housing Coalition reports that in 57 out of the 100 most populated metro areas, renting a three-bedroom home is more expensive than monthly costs on a six percent mortgage for a typical low-priced house in the same area. 

With all the news these days concerning the economic crunch and these tumultuous economic times, you might think I’m crazy saying it is a good time to buy Gainesville real estate. Of course, buyers with strong credit are best positioned to take advantage of today’s opportunities. A high credit score will yield a lower interest rate and increase the likelihood that a loan application will be approved. 

For example, a buyer with a 6 percent mortgage will pay a third less per month than a buyer who has a loan at 8 percent. This difference can be hundreds of dollars per month. 

FHA loans, VA loans and government backed first-time buyer loans are all available to qualified buyers. With the current low interest rates and affordable housing prices, it is a great time to buy your Gainesville home. 

It is also a time to keep in mind that buying a home is a long term investment…and an investment you and your family can enjoy for many years!

Learn more about buying Gainesville real estate by visiting GatorHomes.com. 

Search all Gainesville real estate and homes for sale.

Pending home sales activity surged as buyers took advantage of low home prices and affordable interest rates, according to the National Association of Realtors^®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in August, jumped 7.4 percent to 93.4 from an upwardly revised reading of 87.0 in July, and is 8.8 percent higher than August 2007 when it stood at 85.8. The index is at the highest level since June 2007 when it stood at 101.4.

Lawrence Yun, NAR chief economist, said home buyers were responding to improved affordability. “What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington, D.C., region,” he said. “It’s unclear how much contract activity may be impacted by the credit disruptions on Wall Street, but we’re hopeful most of the increase will translate into closed existing-home sales.”

Let’s take a look at the sales statistics for September 2008 to see how the Gainsville FL real estate market looks: 

The Gainesville FL area single family home sales experienced a 13% decline in new listings in September 2008, when compared against September 2007.  Pending listings were down 11% and sold $208,520 while market times increased by 7 days. 

The Gainesville FL area Condo/TH market saw a  23% drop in pending sales in September 2008, compared to September 2007.  Likewise, new listings were down 41% and sold listings were down by 49% this September.  The average sales price, decreased by 16% to $157,520 while the average market times increased by only 102 days. 

For the latest Gainesville FL real estate market conditions in your area, please call me at 888-424-8841 or visit MyGatorCondo.com.

Should You Downsize Your Gainesville Home - Part 2 

I wanted to follow up our blog post, Should You Downsize Your Gainesville Home with a reprint on a Money Magazine article from CNNMoney.com, When It’s Wise to Downsize. The article discusses the pros and cons of downsizing, pricing in today’s market, carrying costs involved and lessons learned from other empty nesters. 

Here is the article in its entirety (but don’t hesitate to visit the link to the original article to see the interesting graphs): 

“Money Magazine) — Last year Rick and Suzanne Pepin moved from the four-bedroom 3,400-square-foot house in Minneapolis where they lived with their three (now grown) kids to a luxury condo that’s a third smaller and offers only a Murphy bed for guests. Still, the couple couldn’t be happier.

“The location of our old home dictated that we drive to the grocery store, pharmacy and cleaners,” says Suzanne, 57, a retired lawyer. Their new digs are across the street from Whole Foods and within easy walking distance of other stores and restaurants. They love the low-maintenance life.

“We have no worries about upkeep. No worries about lawn care. No worries about snow removal,” says Rick, 68, also an attorney.

Maybe you too have caught the bug. After decades of hankering after the most expensive and enormous house you could afford, owning a smaller place is starting to look appealing.

Imagine the possibilities! You could move into a posh new condo with everything from a fitness center to a concierge - or into an energy-efficient little cabin on a lake Your commute could be shorter, giving you time in the evening to do something more than watch TV like a zombie.

And, maybe, just maybe, downsizing could save you some dough. Chuck Petitti, a Boston-area real estate agent, says many of his clients right now are empty-nesters who realize, “Hey, I could be traveling or doing something else with all the money I am paying for utilities and property tax on this big house.”

If that’s what you’re thinking, you’re by no means alone. A 2006 survey by Hanley Wood, a market research firm, found that 58% of affluent baby boomers say they are very likely or somewhat likely to move to a smaller home within the next 10 to 15 years.

And therein lies a big fat problem. With millions of boomers competing for smaller homes, you may find it hard to catch a break on price. Even though the downsizing trend is in its infancy, over the past five years smaller homes (under 1,200 square feet) have shown a greater rise in value than larger houses (over 3,000 square feet) - 5.2% a year as opposed to 3.5%, according to Zillow.com.

On top of that, you have to get money out of your old house - not an easy proposition with prices in the 20 largest metropolitan areas down 18.4% from their July 2006 peak, according to the S&P/Case-Shiller index. As of July there was an 11-month backlog of existing homes on the market nationwide. The happily downsized Pepins have yet to receive an offer close to the $1.25 million asking price on their old home.

What’s more, smaller isn’t necessarily cheaper. Depending on where you move, you may face carrying costs that are as high as or even higher than you pay now.

The trade-offs are complicated. You may cut gasoline costs by moving closer to your job in the city and using public transportation, but those savings could be eaten up by costlier car insurance. You could move to a small condo nearby but be unprepared for the dues and fees that condo living entails.

So you have to plan carefully, sizing up the finances underlying both new and old houses, or the savings you’re counting on could be skimpier than you anticipate.

Get the prices right

To start you need a clear-eyed assessment of the two markets that make up your downsizing, the one in which you’re selling and the one in which you plan to buy. A real estate agent can give you an idea of your home’s value, but you should also check how much houses in your area are selling for on Zillow.com, which lists sales prices of comparable houses.

Hanging on to past high prices only delays a sale. Dodi Christiano, 55, a psychotherapist, and her husband, Paul Waldrop, 56, a producer of TV public-service announcements, put a price of $850,000 on their 4,000-square-foot Fairfax, Va. colonial last year - about what nearby homes had fetched a couple of years earlier.

For six months they received nary a nibble. Finally, after slashing the price by more than $100,000, they were able to sell. “We had to face the fact that not everybody loved our home as much as we did,” says Christiano.

You can’t assume that a home’s price is simply a function of its square footage. The national median sales price for condominiums, which are typically smaller than single-family houses, is now 5% higher than that for houses, according to the National Association of Realtors.

If you hope to reduce costs dramatically, you may have to buy your new place in another town or state. Think Decatur, Ill. or Mishawaka, Ind., where single-family houses cost just $79,400 and $80,900, respectively.

George Pollock, 67, a retired engineer, and his wife Marian, 66, wanted to get rid of the mortgage on their house in suburban San Francisco. Pollock worried that if he died before his wife, she wouldn’t be able to meet mortgage payments with the 50% portion of his pension that she would receive.

No matter how much they shopped, however, they couldn’t find a place they could afford in the Bay Area (median price: $701,700) without a mortgage. So they moved to much less pricey Sacramento (median price: $258,500), where their two grown children live. There they bought a 1,400-square-foot home for $380,000, leaving them with nearly $250,000 extra.

Says Pollock: “My wife is closer to the kids, and I know she has long-term financial security.”

Downsize carrying costs

Buying without taking out a mortgage would certainly reduce expenses. At the very least you should look for a house whose price is low enough to allow you to buy with a mortgage that’s smaller than what you have now.

If you’re at or near retirement, taking on a new 30-year mortgage is overwhelming. You may be long gone before you can repay. Consider one with a 15-year maturity; the payments may look daunting, but you will save money. The interest rate is only about 0.10% lower than that of a 30-year mortgage, but over the life of the loan, you would save about $141,000 in interest.

Another option: Take out a traditional 30-year fixed-rate loan that does not charge a prepayment penalty. Then just send in extra payments each month as if you were on a 15-year repayment plan. You’ll be saving by paying the mortgage off quicker, but if you run into unforeseen financial trouble, you’ll be able to make lower payments.

Runzheimer International, a management consulting firm, estimates average annual savings of $1,300 in utility costs and $2,600 in property taxes from down-sizing from a 2,800-square-foot house to one with 1,800 square feet.

But the devil is in the downsizing details: You need to crunch the numbers to calculate your net savings. Start by totting up the annual cost for ongoing expenses such as property tax, utilities, lawn service and snow removal. As you shop for a new place, you should be gathering comparable information.

Other potential cost savings: If you move from suburb to city, you may be able to ditch one of your cars and its trailing expenses - insurance, financing, taxes, maintenance and fuel. If you gave up your 2006 Honda Accord, for example, you’d save nearly $26,000 in the first five years, according to Edmunds.com.

On the other hand, some costs could rise. In a condo or a house that is part of a homeowners association, there are monthly maintenance fees, and every so often you’ll be on the hook for assessments to replace the roof or carpet the lobby.

Before buying, ask how much fees have risen over the past five years and whether new assessments are in the offing. If your new place is appreciably smaller, make room in the budget for new purchases to replace an oversize sectional or a king-size bed that won’t fit.

Sell before you buy

Tempting as a pristine new condo looks next to your drafty old five-bedroom Victorian, don’t plop down earnest money until you have a buyer with solid financing. Otherwise you could get stuck with two mortgages, two property tax bills and - well, you get the idea.

At least have your lawyer include a contingency clause in the sales agreement that obligates you to close only if you manage to sell your home by a set date. In the bubble-licious sales frenzy of yesteryear, sellers could make bidders do somersaults and had no incentive to agree to such a clause. But with so many homes on the market for months, sellers may now show mercy.

What downsizers learned

• Don’t price your house like it’s 2006. Paul Waldrop and Dodi Christiano of Haymarket, Va. asked the same amount that nearby houses had sold for two years earlier. “We had to realize that what had happened during the boom was not the norm. It took six stressful months to sell,” says Dodi.
• Get the old place sold first. Rick and Suzanne Pepin of Minneapolis moved into their dream condo but now can’t sell their house. “Don’t wait to put your home on the market if you decide to buy. We waited for renovations on our new condo to be complete, and by then we couldn’t sell,” says Rick.
• Plan for smaller rooms. John and Polly Smart of Houston had the wrong stuff. “Smaller rooms may not accommodate your old things. We spent about $20,000 on new furniture and more on a smaller Silverado because the old one stuck about two feet out of the garage,” says John.

Do you (and your spouse) make more than $170,000 annually and worry about tax-efficient retirement planning? If so, send your name, age, occupation, income and questions, along with a recent photo, to makeover@moneymail.com. We will be providing advice to a family in this situation in an upcoming article - and it could be you! ”

Interested in learning more about Gainesville home prices and possible downsizing? Visit our website, GatorHomes.com or give us a call at 352-332-8841.

What’s my Gainesville home worth?

Should You Downsize Your Gainesville Home?

You dropped your youngest child off at college this summer and have officially joined the ranks of the empty nesters. One of the first questions that usually comes to mind is should we downsize our Gainesville home. The kids are gone and we probably don’t need this big house. But is buying a smaller home right for you?

There are pros and cons to downsizing. Consider your finances and lifestyle before making a decision.

Reasons not to downsize:

You want a place for your children and grandchildren to stay when they visit. The family is spread all across the country and you want to have a place for everyone to gather for the holidays and vacations.

You can’t bear to part with your cherished belongings. You have been in your current home for many years and have filled it to the gills with mementos you don’t want to part with.

You aren’t you emotionally ready to leave? You are not ready to pack up and leave a lifestyle you worked hard to create. Leaving family, friends and familiar surroundings is more than you can bear.

You enjoy the prestige that goes along with your luxurious home. A smaller home will not portray the correct image of success.

Reasons to downsize:

The lower house payments that accompany a smaller home would give you more discretionary funds to travel and enjoy other recreational activities.

A smaller homes means less to maintain and more time to play.

You or your spouse, are not able to navigate the stairs like you use to and a single level home is more desirable.

A smaller, newer home is more efficient and better for the environment.

You need to be closer to a spouse who is in a nursing home?

Make sure it’s affordable:
If you decide to downsize, make sure the place fits both your pocketbook and your lifestyle.

Talk with a real estate professional about how much money you will net from the sale of your current home, as well as the costs of buying another one. This will help you determine if the move benefits you financially.

Under current tax rules, up to $500,000 (if you are married and file jointly) in profits from the sale of your principal residence are not taxable as long as you’ve lived there for at least two of the previous five years. Up to $250,000 in profits are not taxable if you’re single. Consult a tax advisor to discuss your situation.

Look into how much it would cost to move and to maintain a smaller home. Make sure it really is cheaper to live there.

Decide to downsize only once you’re satisfied that the finances make sense.

Buy into your new lifestyle
A smaller house in your current neighborhood could be the right decision if your priority is maintaining close ties to neighbors. Just make sure there are amenities like public transportation and stores nearby if your health begins to deteriorate.

A condominium or a unit in a retirement community could be perfect if you never want to mow again, or if you want to focus on travel, hobbies and perfecting your golf stroke in the company of other seniors. Just remember you’ll have to pay maintenance fees for the upkeep of the common areas. Talk to current residents to see whether they’re happy with the way things are run. Also investigate the rules. If the association forbids pets and you’re a devoted dog-owner, be prepared to move on.

You may prefer to purchase a duplex or something similar. Renting one of the units will bring in extra income, and you’ll have built-in neighbors.

Thinking of downsizing your Gainesville home and want to talk with a real estate professional? We are glad to provide you the information you need to help you make the right decision for you. Give us a call at 352-332-8841.

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What is my Gainesville home worth?

Fannie Mae and Freddie Mac both announced they will not impose the loan fee increase scheduled to go into effect next month. Fees were to have increased from .25% to .5%, making it even more difficult for Gainesville home buyers to buy homes. The biggest obstacle many ­­­­­­­­­­­­­­­­Gainesville home buyers face is the necessary cash needed for a down payment and closing costs.

Both companies, now controlled by the federal government, had decided to increase fees to boost their finances during difficult times.

Freddie Mac, however, will raise fees next year for riskier loan products, including mortgages that allow interest-only payments for the first few years. Freddie also will require higher credit scores for “piggyback” loans that allow borrowers to make smaller down payments by taking out two mortgages.

Taken together, Freddie Mac said the changes would provide “some relief from the challenges in the current market environment,” but added that it is following lending practices “that are prudent and largely applicable in all market conditions.”

The level of home sales is expected to show little movement in the months ahead, according to the latest projections by the National Association of Realtors^®.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, fell 3.2 percent to 86.5 from an upwardly revised reading of 89.4 in June, which had risen 5.8 percent from May. The July index remains 6.8 percent below July 2007 when it stood at 92.8.

Lawrence Yun, NAR chief economist, said home sales continue to edge up and down. “Pending home sales are oscillating month-to-month, with the long-term trend essentially flat,” he said. “Overly stringent lending criteria imposed by Fannie Mae and Freddie Mac in the past month no doubt held back contract signings.”

Let’s take a look at the sales statistics for August 2008 to see how the Gainsville FL real estate market looks: 

Gainesville FL Real Estate Sales Statistics:

The Gainesville FL area single family home sales experienced a 41% decline in new listings in August 2008, when compared against August 2007.  Pending listings were down 38% and sold listings were also down, by 26%.  The average sales price dropped 16% to $208,262 while market times increased by 24 days. 

The Gainesville FL area Condo/TH market saw a  32% drop in pending sales in August 2008, compared to August 2007.  Likewise, new listings were down 11% and sold listings were down by 29% this August.  The average sales price, decreased by 12% to $156,922 while the average market times increased by only 10 days. 

For the latest Gainesville FL real estate market conditions in your area, please call me at 888-424-8841 or visit MyGatorCondo.com.

Not so long ago helping the environment meant recycling plastic and newspapers, but today it has evolved into “green” thinking and extends to our Gainesville homes and our living environments. 

According to a recent NAR survey, nine out of 10 Realtors® said their clients are interested in energy efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now. 

Results of a Harris Interactive poll by Move, Inc. show potential Gainesville home buyers consider “green” building features more important than luxury amenities. Almost half of the adults surveyed (49 percent) said features such as solar panels or energy-saving appliances were “important,” compared to just 31 percent who rated luxury amenities important. 

Ninety-three percent of all home buyers are not willing to pay more for green or energy efficient features when building a home, according to a recent independent study commissioned by The New York Times Customer Insight Group. 

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