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Showing posts from December, 2014

How Do Mortgage Buyers Compete with Cash Buyers?

In the past 90 days, just over half the single home sales in Venice were to cash buyers.  Banks that are selling foreclosures prefer cash buyers, as do home owners selling on the open market.  Here's some tips to make sure your purchase offer with a mortgage is as attractive as possible to a seller.

1) Be prepared:  You have to be ready to show the seller you are a serious buyer by having a pre-approval letter from your lender.  Go do it.  Now.

2) Put as much escrow deposit down as possible: The more skin you have in the deal, the better it looks to a seller.  $1000 escrow deposits might work in certain price segments of the market.  But, if you really don't have more than $1000 to put down, are you qualified to buy a home in the first place?

3) Do your inspections quickly: FL contracts allow a 15 day period for home inspections.  You should offer 10 days.  You look like a more eager buyer who doesn't want to use the inspection contingency period to potentially back out of a…

Market Update: Venice FL Homes for Sale Cash vs Finance

If you need to get a mortgage to buy a Venice FL home or condo, you'll be competing with a lot of cash buyers.

According to our MLS, in the past 90 days, there have been 229 single family homes sold with all cash terms and 217 single family homes sold with conventional, FHA, or VA mortgage loans.
CASH PURCHASES Median sold price: $218,000 Median days to contract: 26 Median sales price % of list price:  97%
FINANCE PURCHASES (Conventional/FHA/VA) Median sold price: $226,000 Median days to contract: 26 Median sales price % of list price: 97%
Bottom line:  Whether you are paying cash or financing your Venice FL real estate purchase, properties are selling fast and at very close to list price.  Please contact me to assist you with your real estate needs.

Coming Soon in Sarasota

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One of my clients is renovating a home in Sarasota that is walking distance to Phillippi Shores Elementary School, just north of Proctor Rd. and east of Tamiami Trail.  It should be ready for sale by the end of January.


This 3/3 home with bonus room/office/4th bedroom features all (real) wood floors, upgraded cabinetry (some hand-crafted), all new appliances, new roof, A/C, and lots of closet space. The master bedroom will have a dual vanity, a spa tub and separate shower stall, and his and her's closets.  The lot has plenty of room to add a pool.

If you'd like more information about this home please contact me.


Investing in Sarasota and Venice FL Real Estate

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There's been some news about real estate investors tapering off their purchase activity as housing prices increase.  That doesn't mean that the smart investors are giving up, because there's still good deals out there and a lot of rental demand in both Sarasota and Venice.

For years after the real estate market downturn in 2008, it was easy to pick the low-hanging fruit of a $100K foreclosure, fix and flip it, or clean it up to rent for cash flow property.  In today's market, smart investors are factoring price appreciation in their formula for picking properties.

Sarasota and Venice real estate is appreciating at healthy rates, but the higher overall price point of Sarasota versus Venice makes Sarasota a more difficult area for a newer investor to dip their toe in the market.

Let's look at a side by side comparison of the two areas:

Sarasota

Target price range $150-$200KHighest rental demand:  Bahia Vista south to Clark Rd, west of Beneva and east of Tamiami TrailE…

Waiting Costs Money

If you've been looking for Venice FL real estate, or just starting out, you may or may not know that we have more buyers than homes for sale.  Homes are selling quickly, and that is creating frustration for some and a "wait and see" attitude for others.

For those waiting for just the right house to come along, the old saying "time is money" is never more true than in real estate, at least in Venice.

Let's take a look at what waiting to buy could potentially cost:

Now:
Home sales price $150,000 for a 2 bedroom 2 bath in Venice
Interest rate 4.125%
Mortgage monthly payment with 20% down: $581.58

Spring 2015:
Estimated future home sales price $165,000 for a similar 2/2 in Venice
Interest rate 4.35%
Mortgage monthly payment with 20% down: $657.11

Housing inventory is expected to stay low, rates could go higher, and prices are projected to increase between 7%-10% .  Waiting to buy could cost you $76 per month, or approximately $912 per year.  What could you do wi…