Gainesville FL Real Estate Blog

Given the state of the economy, the housing “crisis,” and the volatility of the stock market, more and more folks with both extra cash and initiative are being drawn to the idea of property investment. Many real estate and financial gurus offer suggestions for you as a first-time investor in Gainesville FL real estate–both tips to follow and traps to avoid. First and foremost, all the experts stress the importance of your need to be realistic about the amount of time, money, energy, and commitment required in such a venture. Their second most common piece of advice is to educate yourself in as many areas of investment fundamentals as you can before you begin.

TIPS:       

• Develop a plan. Determine your purpose in becoming an investor. Do you want to flip houses, or are you more comfortable with a long-term rental? What kind of property do you want? Single family? Condo? Multi-family? Will you be bidding at an auction? Buying a short sale or foreclosure? What kind of financing will you need?
• Identify your target area. Analyze the economic situation of the neighborhood, population levels, and potential employment prospects. Look at the availability of  stores, schools, hospitals, and local industry. Determine the median property values.
• Ask questions. Are prices in the area rising or falling? Is it a safe neighborhood? How long has the property been on the market? What is the condition of the interior and exterior structure?
• Consider financial circumstances. What is the going rate for rentals in the area? What are the yearly taxes? What will it cost to maintain the property? What kind of financing will be available to you?
• Avoid Gainesville FL real estate with HOA fees. Home Owner Association dues which pay for shared facilities and maintenance must be paid by you, the owner, and can be quite high, especially when major assessments are levied.
  (more…)

There were 1,254 Alachua County and Gainesville FL foreclosure homes in August 2011 according to RealtyTrac.com. The average foreclosure sales price was $115,027 compared to an average sales price of $154,414, a $39,386 savings. 1 in every 921 housing units received a foreclosure filing in August.

Alachua County & Gainesville FL Foreclosure Activity and Home Price Index

Home price appreciation remained was 0.0% in August and the number of new foreclosures totaled  126.

Alachua County foreclosure activity is based on the total number of properties that receive foreclosure filings – default notice, foreclosure auction notice or repossession notice – each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

Alachua County & Gainesville FL Foreclosure Geographical Comparison

Alachua County and Gainesville FL foreclosures were 0.07% below national statistics and 0.18% below state figures in August 2011.

Alachua County & Gainesville FL Foreclosure Activity by Month

(more…)

A number of research studies have shown that home ownership provides social and societal benefits. Not only is home ownership one of the best ways to build long-term wealth, providing resources for a more comfortable retirement, but it also fosters an immeasurable sense of community and stability vital to growing families.  NAR’s “Social Benefits of Homeownership and Stable Housing” report reveals that home owners are happier and healthier. They tend to vote more, volunteer more and contribute more to their neighborhoods. Home owners do not move as frequently as renters, which encourages more neighborhood stability, and children of home owners are more likely to participate in organized activities and spend less time in front of the television.

Now take a look at how the Gainesville FL real estate market performed in August.

The Gainesville FL area single family home sales saw pending sales remain consistant with August 2010 numbers.  Sold listings increased by 9%, while new listings decrease by 11%.  The average sales price decreased by 12% to $168,150, while market times decreased by 3 days or 2%.

The Gainesville FL area Condo/Townhome market saw pending sales increase by 41% in August 2011 when compared to August 2010.  Sold listings increased by 9%, while new listings decreased by 31%.  The average sales price decreased by 16% to $80,837 when compared to August 2010, while the average market times increased by 35 days or 21%. 

(more…)

Let’s start with the why? The most common incentive to clear away clutter occurs when you’re selling your Gainesville FL real estate and want to stage it for prospective buyers. Real estate agents will tell you that clutter-filled, disorganized homes appear smaller, and every website offering tips for a fast sale includes–and stresses- the need to show a clutter-free home. Another strong reason for eliminating clutter is to lower the stress in your life by having everything in its place ((how nice it would be not to spend valuable time and energy looking through clutter for misplaced items!) and returning home to a serene and neatly organized setting. (Polls and studies have shown that physical surroundings do indeed affect one’s level of stress. ) Other mess-removing motivators include selling unused items to bring in extra money, donating still-good items to people who need them, and joining the green movement by recycling unwanted possessions.

How to begin such a daunting task?

All “experts” in the field strongly advise tackling the job in small steps. Begin with one room at a time, play soothing music, and allocate 20 to 30 minutes a day to the job. Bring to each room boxes or bins labeled keep, toss, donate, and recycle. Be ruthless!! If you haven’t used an item in the past year, remove it from your Gainesville FL real estate. (Hint: also check expiration dates on foodstuffs when you de-clutter the kitchen.) Assess your storage capacity and discard accordingly.

What should you dispose of?

The most obvious clutter creators seem to be mail, clothing, newspapers and magazines, documents, books, and home décor accessories. Think, too, about furniture, baby items, food, toiletries, appliances, bedding, electronics, and hardware. Have you heard about the “80/20 rule”? It is generally believed that you can safely let go of 80% of the papers you’ve kept.

Where should your unneeded/unwanted treasures go?

For many of them, the answer is, of course, the trash. (You can easily arrange for bulk pickup for large items.) Others may be candidates for recycling. Perhaps you can list some of them under the Free tab on Craig list or search nearly 5000 groups who use discarded materials.

Ask around your community for organizations which would welcome used books and toys–libraries, hospitals, nursery schools, churches. Give old magazines to doctors’ offices. Lions Club groups collect old eyeglasses, and many organizations eagerly accept working but unwanted cell phones. There are innumerable websites which suggest new homes for your discards. Try RecycleNow.com or Earth911.com (supplies locations of local charities by zip code). Many organizations such as Goodwill Industries, Salvation Army, and Disabled Veterans, have handy drop-off boxes or centers or will come to your Gainesville FL real estate location for pickup. (Extra bonus: in addition to the joy of giving to others, you may also receive a tax deduction for your contributions.)
(more…)

At least one fear was not realized amid last week’s stock market meltdown according to CNNMoney.com: the concern that mortgage rates would immediately shoot higher in response to Standard & Poor’s downgrade of Fannie Mae and Freddie Mac, the government-sponsored entities that are the 800-pound gorillas of the mortgage market. In fact, the initial response to Fannie and Freddie getting cut to AA+ from AAA was precisely the opposite. Mortgage rates were poised to continue declining.

Mortgage rates are set off of the interest rates on U.S. Treasury notes and bonds. Even though Standard & Poor’s pulled its AAA rating of the United States, investors still rushed into U.S. Treasury securities as a safe haven, believing more in the “full faith and credit of the United States” than in the opinion of Standard & Poor’s credit analysts. As investors snapped up Treasury notes and bonds they pushed down interest rates on those securities, which move inversely to prices.

Analysts warn the drop in interest rates may not last. If investment flows were to move back into stocks and out of bonds, interest rates on Treasury securities, and consequently mortgages, would rise. “Over the long-term, if the U.S. has to pay more in interest rates, consumer rates will likely go up,” said Greg McBride, senior financial analyst for Bankrate.com.

For now, lower mortgage rates may offer only limited benefits to American consumers. Banks’ lending standards have been tough recently, and consumers need the wherewithal to qualify for loans. That appears increasingly difficult as the economy continues to sputter.

Now take a look at how the Gainesville FL real estate market performed in July.

The Gainesville FL area single family home sales saw pending sales decrease 7% in July.  Sold listings increased by 14%, and new listings decrease by 22%.  The average sales price decreased by 19% to $164,860, while market times increased by 20 days or 11%.

The Gainesville FL area Condo/Townhome market saw pending sales increase by 26% in July 2011 when compared to July 2010.  Sold listings increased by 15%, and new listings decreased by 25%.  The average sales price decreased by 20% to $79,416 when compared to July 2010, while the average market times increased by 53 days or 29%. 

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

Search all Gainesville FL real estate and Gainesville FL homes for sale.

Linda Luetjen assists buyers looking for Gainesville FL real estate for sale and aggressively markets Gainesville FL homes for sale.

She understands the purchase of any Gainesville FL home represents not only one of the largest and most significant investment a person can make, but also a decision that affects the entire life of a family. It should be handled with all the care and attention such a significant transaction deserves. You may rest assured that Linda never forgets this. Her reputation depends on your satisfaction.

For more information about buying or selling your Gainesville FL home, please call Linda toll free at 888-424-8841 or via email with our convenient contact form. 

The U.S. Consumer Product Safety Commission (CPSC) estimates that over one million senior citizens are treated in emergency rooms for home-related injuries each year. CPSC believes that many of these accidents result from often-overlooked hazards which are easy to detect and correct. Use this checklist to spot possible safety problems which may be present in your Gainesville FL home and use it periodically to re-check your residence. This checklist is organized by areas in the home and will be presented in an easy-to-follow series of articles.

THE KITCHEN

                1. Store potholders, towels, plastic utensils, and the like away from the stove/oven.

                2. Shorten or remove curtains which are close to sources of heat.

                3. Roll back, pin up, or fasten with elastic bands long, loose sleeves which can easily catch on fire or get caught on pot handles.

                4. Use a stove fan, ventilation system, or open windows to clear air of smoke and vapors.

                5. Move cords and appliances away from sink area or heat. Try to avoid use of extension cords. Use wiring guides so that cords will not hang down or become tangled.

                6. Check with an electrician about installing new outlets (GFCIs) which detect electrical problems and shut off automatically.

                7. Ensure adequate lighting by opening curtains and blinds, using maximum wattage allowed bulbs (frosted ones reduce glare), and adding easy-to-install light strips under the cabinets or over the countertops of your Gainesville FL home.

                8. Do not exceed the printed maximum bulb wattage for use in lighting fixtures. If you don’t know the correct wattage, use nothing greater than 60 watts.

                9. Keep a working fire extinguisher handy at all times.

                10. Use a teakettle that has an automatic shutoff. Do the same for coffeemakers and irons, too.

                11. Wipe up all spills quickly and carefully.

(more…)

Tips to Improve Your Score

Your credit score is a number that helps lenders predict how likely you are to make your payments on time. This score affects your ability to obtain credit and helps determine what you pay for credit cards, auto loans, and mortgages on Gainesville FL homes. Even your insurance rate is related to your score. The higher your score, often referred to as a FICO score, the more apt you are to be approved for and pay a lower interest rate on new loans. Scores ranging from 650 and below are considered bad and indicate to the lender that you are a very high risk. Chances are you will be unable to secure a loan, or if you are, it will be at a much higher interest rate and/or require a cosigner.

What If there Are Errors

What to do if you have a low score and do not qualify for a mortgage on a Gainesville FL home? Your first action should be to check your credit report for errors. If you find erroneous information, you need to act immediately by contacting both the credit bureau (the three major ones are Equifax, Experian, and Transunion) and the organization that provided that information.

• The credit bureau/agency: Send a certified, return receipt requested letter to the bureau pointing out each inaccuracy and enclose copies of documents which support your claim as well as the report itself (with the misinformation highlighted). Factually explain why you dispute each item and request a deletion or correction for each one.
• The creditor or information provider: Send the same type of letter and enclose the same documents. Request that the provider notify you of action taken (generally within 90 days) so that you can verify the amended information.

If there are no errors on your report, then you should take immediate steps to improve your credit. Ways to do this include the following:

• Stop using your credit cards. Do not continue to accumulate debt.
• Get current on delinquent accounts. Since payment history makes up 35% of your score, this action will have a great impact on your score.
• Keep accounts with balances open, but don’t apply for more credit.
• Call your creditors. Explain your financial situation and ask about possible hardship programs which will temporarily reduce your monthly payments.
• Begin paying off your existing debts, even if you have to sell some belongings to do so. Come up with a get-out-of-debt plan and stick to it.
• Get professional help. There are resources available to help you reestablish a good credit rating. Contact the National Foundation for Credit Counseling for assistance.
• Be patient. Realize that improving your credit score takes time and that there is no quick-fix –and keep in mind your goal of owning a Gainesville FL home.

Search all Gainesville FL real estate and Gainesville FL homes for sale.

(more…)

Shall I sell now or wait to see what happens in the real estate market? That is a decision facing numerous homeowners in this period of economic upheaval and uncertainty. For those who are forced to leave their Gainesville FL home because of a job transfer, a need for a smaller home, and/or a desire for a smaller mortgage payment, the question becomes one of whether to rent or sell their current property. Oh, for a crystal ball.     

There are, however, some valid reasons to sell at the present time. Many in the real estate or financial fields believe that the timing for home sales may not be as opportune for a long period in the future as it is now, and they base their “sell now” advice on the following reasons:          

1. Would-be buyers in the fourth quarter of the year are historically serious buyers who are very apt to buy during this season. Thus, the seller may have fewer ‘lookers’ but more motivated purchasers.         

2. Interest rates right now are invitingly low and provide a real incentive for the serious buyer of a Gainesville FL home. These fallen rates can also be an advantage to the seller who wants to buy another home.           

3. If you do want to purchase another home, especially if you want to “trade up”, this is an optimum time to do so. The prices of more expensive houses have also dropped, sometimes considerably, and bargains are to be had in that market. Remember, too, that because there is a smaller pool of buyers for “high end” properties, those sellers may be  more than willing to negotiate and lower their asking price.           

4. Renting out your Gainesville FL home rather than selling it is not a financially secure consideration. As the economy worsens, renters will be looking to pay lower rents, so your rental income may very well be less than your monthly mortgage payments and expenses, a situation you certainly want to avoid.           

5. The on-going foreclosure fiasco and the ensuing moratoriums positively support the idea of selling now. Many homes currently in the process of foreclosure are being removed from the market, and serious buyers are rightfully cautious about purchasing any short sale or foreclosed property. Therefore, your home, the one with a clear title and no irregularities, will be part of a new, “safe” inventory, one that will definitely attract buyers.         

 6. Once the moratoriums are removed, many “experts” expect that there will be a glut of distressed properties on the market, a situation that will most likely drive prices down even lower and greatly swell the inventory with which you will have to compete. Add to that the fact that the end of the first quarter traditionally brings a large increase of  listings, and your Gainesville FL home could be easily overlooked.       

(more…)

Although the housing market has been unpredictable in recent months, the existence of a seller’s market and the availability of low interest rates are providing incentives for potential buyers. Obtaining a mortgage, especially one which is attractive to you, is not as easy as it was a few years ago. As a result of the extreme increase in the number of foreclosures, banks have raised their lending standards for all borrowers, and there is little reason to believe that these stringent requirements will lessen anytime soon. This tight credit situation affects would-be buyers of Gainesville FL real estate in numerous ways, among them down payments, credit scores, documentation, debt-to-income ratio, and appraisals.

        1. Down payments: Requirements will be higher. Generally speaking, to get the best interest rate you need to put down at least 20% of the purchase price of the Gainesville FL real estate. FHA loans are available for a down payment of only 3% to 5% but these loans will include additional costs for insurance and a slightly higher interest rate.

        2. Credit scores: You will most likely need a score of 730 for the best rates, whereas the average score for an FHA borrower is about 690. Financial advisors strong urge you to obtain a copy of your credit report six months before loan shopping (you are entitled to one free report from each of the three bureaus annually at) and examine it carefully to detect any errors/misinformation.

        3. Documentation: Be prepared! Lenders will ask for a great deal of documentation regarding your salary, savings, job stability, debts, and the like. You will need to provide pay stubs for the past 30 days; W-2 forms for the past two years; bank, retirement, and investment account statements; and a listing of debts and monthly expenses. Monthly housing expenses should not exceed 28% of your gross monthly income, and total debt should be less than 37% of that amount. If you are self-employed, you will also have to submit two years of tax returns and possibly a profit-loss statement.

        4. Appraisals: Gone are the days of a sure-thing, easy appraisal. Lenders today want a thorough inspection of both the interior and exterior of your Gainesville FL real estate, and the less money put down, the more extensive the scrutiny of the home’s market value. It is wise to include an appraisal contingency in your offer so that your earnest money deposit will be returned to you if the appraisal fails to meet the negotiated price.

(more…)