Gainesville FL Real Estate Blog

Many Gainesville FL home sellers look at the first offer on their home as just that, the First Offer with many more to come. You know what they say, ‘A bird in the hand is worth two in the bush.’ And in the current Buyers Market, offers are few and far between. Gainesville FL home sellers will want to consider the first offer very seriously. Here are reasons why: 

• An early offer (if you’re lucky!) doesn’t necessarily mean buyers are lining up to follow suit. It could just mean that your home meets the needs or preferences of that one particular buyer who made the offer.
• Your home will get the most interest from buyers just after it goes on the market. The longer it stays on the market, the more “desperate” buyers will think you are, prompting lower and lower offers.
• Even if the first offer is thousands lower than your list price, consider carefully whether it might be enough – in terms of price and contract terms — before rejecting it out of hand. After all, the longer your home is on the market, the more it costs you in mortgage payments, taxes, insurance, upkeep and sheer inconvenience.

(more…)

Should I move up to a larger home is a question many Gainesville FL home owners are asking.  The questions below will help you decide whether you’re ready for a home that’s larger or in a more desirable location. 

1. Have you built substantial equity in your current home? 

If you have owned your Gainesville FL home for a number of years you might have built up some equity. Look at your annual mortgage statement or call your lender to determine your loan balance. Then give me a call to determine your home’s market value. The difference between your loan amount and market value is your equity. You can also get your market value by clicking here. 

2. Has your income or financial situation improved? 

If your income has increased, you may be able to afford a higher mortgage payment. 

3. Have you outgrown your neighborhood? 

Often, the neighborhood or location you buy your first home in may no longer suit your needs. You may want to be closer to work, be in a better school district or have a home on a lake rather than close to it. 

4. Are there reasons why you can’t remodel or add on? 

Sometimes adding on to your current home is the answer. If you will end over-improving for the neighborhood, moving may be a better option. 

5. Are you comfortable moving in the current housing market? 

In the current  real estate market, your Gainesville FL home may not sell quickly for what it would have a few years ago, but the home you buy also less expensive expensive. 

6. Are interest rates attractive?

A low rate not only helps you buy a larger home, but also makes it easier to find a buyer and interest rates are currently at record lows. 

If you answer yes to most of the questions, it’s a sign that you may be ready to move. If so, please visit GatorHomes.com to learn more about the local real estate market or give me a call. I’m glad to help!

Search all Gainesville FL homes for sale.

If you are thinking of selling your Gainesville home this spring, now is the time to start getting ready to sell. Below are 5 steps to take before putting the ‘For Sale’ sign in the yard: 

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin. 

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or in boxes neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine. 

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.  

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house. 

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments? 

Learn more about selling your Gainesville home at GatorHomes.com or MyGatorCondo.com. 

What is your Gainesville home worth?

www.REALTOR.org/realtormag Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright 2003. All rights reserved.

The ‘American Recovery and Reinvestment Act of 2009‘ which became law on February 17, promotes energy independence and green jobs through tax credits and government grants. This is part of an effort to make Gainesville homes and buildings more energy efficient. 

Energy saving provisions include: 

• $6 billion to state and local governments for energy efficiency and conservation grants for energy audits, retrofits and financial incentives.
   
• 30% tax credit (increased from 10%) to homeowners for new furnaces, windows and insulation.
   
• $5 billion to modernize the nation’s electricity grid and install smart meters on homes, saving homeowners money.
   
• $5 billion for weatherization assistance for low income households.
   
• $2 billion for federally assisted housing (Section efficiency efforts.  

This bill is good news for Gainesville homeowners wanting to make their homes more energy efficient. Interested in buying a Gainesville home? Visit GatorHomes.com. 

Search all Gainesville homes for sale.

If you have a home that only you can love, you will benefit for these 8 low cost fixes to getting your Gainesville home sold quickly. We don’t live in a house the way we sell a house. Buyers aren’t interested in seeing dirty socks lying around or dirty dishes in the sink. Below are a list inexpensive things, from Realtor Magazine, that you can do to make buyers fall in love with your Gainesville home.

1. Move it.

Simply rearranging the furniture can re-energize a room. Add and remove furniture, lamps, rugs, and accessories from other parts of the house to create a whole new look. Mirrors are particularly useful when it comes to updating a room. Try one out in different rooms to see where it fits best. Even just moving a mirror to a different wall can create a more welcoming feel.

 2. Plant it.

Houseplants are a generally undervalued design component that can add texture, warmth, and color to any room. Just drop plants in their store containers into decorative planters. Small plants can be moved easily and regrouped to change a room’s look, while larger ones make a statement on their own. 

Group plants together of differing heights, fullness, and color for the most dramatic effect. It’s important to have plants that are well maintained and in tip-top condition.

 3. Paint it.

Paint is one of the easiest and most cost-effective ways to make a substantial change. Use dramatic colors in powder rooms and dining rooms, and more neutral colors in living spaces. When selecting colors, “be sure to ask, ‘What am I trying to do? How do I want this to feel?’” And always, always do a test before you paint the whole room. 

 4. Organize it. 

Clutter just happens. So neaten up!  A variety of organizing tools can make a space feel polished while maintaining utility. Hooks and shelves inside the door give people a place to hang coats and keys, while canvas bins or natural baskets help contain magazines and mail. Just a row of hooks pre-attached on a board is so easy to install. And shelves are a great way to neatly display collectibles. 

5. Hide it.

Have a banged-up wall? It may be easy to camouflage. Paintable wallpaper will smooth out an uneven wall or hide minor dents and dings. Adventurous home owners can even try a simple two-step painting process for a more complex finish. A apply a solid base coat, then a glaze. 

Your intent should never be to mislead buyers; be sure to disclose flaws that would affect home value. 

6. Replace it.

Cabinet handles, switch plates, and other small pieces of housing hardware can update a home for just a few dollars a piece. Scan each room to see what looks worn or outdated and then replacing it. Inexpensive quick-connect faucets can make upgrading the look of your bathroom a snap. Just be sure to measure before you go to the hardware store. Some sinks are drilled for an eight-inch spread. Others require just four inches. 

And don’t forget the toilet seat. Fresh towels and a new toilet seat go a long way toward making a bathroom feel clean and new. 

7. Light it.

Lighting can have a major impact on a home’s look and feel. Whether a room seems dark or too bright and harsh, try “layering” the lighting by adding accent pendants and lamps. Make sure they have independent controls, so that you can turn them on and off at will. 

Light is such a mood setter. You can create a cozy feel just by turning down the lights. Add dimmers in the dining room, bathrooms, kitchen, and even the hallways for less than $4 each. Then adjust the lighting to create the mood you want.

 8. Clean it.

Turn a critical eye to the flooring to make sure it’s up to snuff. Scrub grout and seal natural stone. Rub out scratches and nicks on wood floors with scratch cover. Get down on your hands and knees and detail the floors. It takes a little elbow grease, but the results are well worth it. Vinyl flooring is a bit harder to spruce up but usually can be replaced easily and inexpensively.

Interested in selling your Gainevsille home? Give me a call, I’m glad to help!

What’s my Gainesville home worth?

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.

Search all Gainesville homes for sale.

What is my Gainesville home worth?

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.

One of the biggest decision Gainesville second-home buyers must decide is whether or not to rent their property when they are not using it. According to the U.S. Census Bureau, one-half of all second-home owners leave their home unoccupied for more than 330 days a year. The question becomes, will your vacation home be a financial burden or a financial cow with the rental income is can generate, thus paying for itself

Renting does have its pros and cons. Some owners don’t like the idea of ‘strangers’ in their home. Others don’t want the hassle of being a landlord, especially a long distance landlord. And then there is the decision to give up the prime vacation season for rental income. The flip side is renting your vacation home provides a stream of easy money.

EscapeHomes.com offers advice and tips when considering a Gainesville vacation home purchase and deciding whether renting out that home is right for you:

Before You Buy
If you already know you will rent your vacation home, consider these questions as you look at properties:

•  Is there a rental market in the area?
•  What is the average rent that your neighbors receive?
•  If you are looking in a development, are there any by-laws which restrict your rental capabilities?
•  Is this a seasonal area or year-round location?

The answers to these questions will help you select a more lucrative property for your vacation home.

Rental Seasons
How do you decide when to rent your property and when to use it yourself? Since you are buying primarily for your own fun and enjoyment, you shouldn’t sacrifice this. If the home is in a one-season area, for example, summers at the Maine coast, then giving up that time of year for rental income defeats the purpose of having the home. In this case, you might look for a long-term (9-month) renter for the off-season, among the local population, while you use it in the summer. On the other hand, if you buy a winter ski condo or chalet, it is still highly rentable in the summer time for the mountaineering types. If you buy a property for weekend use, perhaps there are local people who need a Monday-Friday escape option. In short, if you balance your own needs with the market demands, you get both fun and money.

Practical Considerations
For successful renting, first find out the going rental market rate. Second, determine if you want to market it yourself, or use a rental agent. Self-marketing takes time, but often generates more qualified renters as you are not competing with all the other properties of an agent. Third, be sure to arrange for a property manager. This is different from a rental agency. The manager will take 10 to 20 percent of the rent, and free you up from cleaning, being on call for maintenance (especially important if you live far away), and dealing with the daily needs of the renters.

Make it Personal
By far, the most important factor in success is your personal investment in the process. This means your personal contact with your renters. From a simple welcome note and local maps to a thank-you note and on-going contact, your relationship creates a repeat flow of guests who not only love your second home as much as you do but also pay for the privilege of using it. What could be better?

If you are considering buying a Gainesville vacation home, give us a call, 352-332-8841, we are glad to provide you with the information you need to make a good buying and renting decision.

Think you want to rent out your Gainesville vacation home, but don’t want to handle the day-to-day details yourself, we can recommend a Gainesville Property Manager.

Search all Gainesville vacation homes for sale.

Gainesville Second-home Sellers Pay For Tax Credits

You have probably heard, last week President signed into law the Housing Rescue and Foreclosure Prevention Act. This is the most comprehensive housing bill to be enacted in over a decade. The bill is designed to help more buyers of Gainesville real estate realize their dreams, as well as, boast the struggling housing and mortgage markets.

One of the biggest benefits, and probably one of the most talked about provisions in this legislation, is the $7,500 tax credit to first time home buyers. Tax breaks are all well and good, but they have to be paid for somehow. While first time home buyers are getting a break, second home sellers will be paying for the $15.1 million dollars in tax cuts.

Up until the new legislation went into effect last week, homeowners could exclude up to $250,000 taxable profit on the sale of their home if they’re single taxpayers and $500,000 if married filing joint returns. The catch being, they had to live the in house as their primary residence for two of the five years before it is sold.

(more…)