When making a major investment like purchasing a property, buyers need to have as much information as possible. Without this critical information, they may choose the wrong property or overlook key details that could affect their decision.

To help buyers stay well-informed during the buying process, House Bill (H.B.) 1049 was passed in May and took effect at the beginning of October. This new law requires sellers to provide a flood disclosure to prospective buyers. With recent hurricanes impacting Florida's west coast, the timing for such a disclosure requirement couldn't be more appropriate.

What Do Sellers Need to Disclose to Buyers?

For years, the principle of “caveat emptor” or “buyer beware” placed the onus on buyers to identify hidden defects or issues with homes. However, the 1985 Florida Supreme Court case of Johnson v. Davis changed that, mandating that sellers must disclose any known information about defects that could affect a home's value, including hidden defects.

Today, sellers typically provide a standard disclosure form that includes information on:

• Roof problems

• Structural issues

• Lead paint

• Electrical issues

• Legal claims against the property

• And now, flooding information

Buyers can also request additional information if they or their real estate agent deem it important for the decision-making process. If the seller has knowledge of an issue, they are required to disclose it.

What Flooding Information Does H.B. 1049 Require Sellers to Disclose?

Given Florida’s low elevation—on average only 100 feet above sea level—and rising sea levels, more homes are at risk of flooding. Therefore, it is crucial for buyers to understand the flood risks before purchasing a property.

Under H.B. 1049, sellers must now include:

• A statement informing buyers that flood insurance is NOT included in homeowner’s insurance and recommending they discuss flood insurance with their agent.

• Disclosure of any history of flood insurance claims.

• Disclosure of any history of receiving federal assistance for flood-related property damage.

However, this bill does NOT require sellers to disclose whether the property has experienced flooding if they didn’t have flood insurance or receive government assistance for it. Buyers should continue to research flood zones and consider the costs of flood insurance when deciding on a new property.

Get Help Navigating the Buying or Selling Process With Cape Waterfront Living

The legal landscape of buying and selling homes is always evolving. Staying updated with new laws, regulations, and disclosure requirements is crucial, but it can be a daunting task when you're focused on finding your dream home or selling to take the next step in life.

At Cape Waterfront Living, we are well-versed in and up-to-date on all legal requirements, including House Bill 1049. We’ll ensure you have all the information needed to make confident decisions in your next purchase or to fulfill all legal obligations as a seller.

SWFL & Cape Coral Home Prices Drop to a New Low in This Cycle

Cape Coral and Lee County home prices dropped by a steeper amount than anticipated. The next few months don’t look much more promising. These depressed prices represent a new low in the current cycle. As I’ve mentioned in a few recent reports, it won’t be until early next year that our local market will witness an upswing in prices. 

Another troubling sign for Cape Coral is that inventory increased from 5 1/2 to 7 months, the highest inventory level in several years. Current inventory has officially entered "buyer's market" territory. The two hurricanes in early October will further exacerbate sales numbers, prices, and inventory. 

                                       Cape Coral Sept 2023 vs. Sept 2024

                                       Lee County Sept 2023 vs. Sept 2024

Cape Coral Gulf Access Homes: Sept 2023 = 67 Gulf Access Sales, Avg Price: $847,000

                                                  Sept 2024 = 52 Gulf Access Sales, Avg Price: $828,000

Cape Coral $1M+ Homes: Sept 2023 = 18 $1M+ Sales, Avg Price: $1,336,000   Highest: $2,150,000

                                         Sept 2024 =   8 $1M+ Sales, Avg Price: $1,741,000   Highest:  $3,346,000

Note: There was a significant drop in the number of gulf-access and $1M+ home sales from a year ago, although September did have a higher price point of $1M+ homes, which was aided by the $3,346,000 home sale.

Buying Most Affordable Since 2020

Redfin: Housing affordability is improving for the first time in four years. The income needed to afford a home fell because mortgage rates posted their first annual decline in over three years. As of this writing, the average interest rate sits at 6.2%, almost a full point lower than a year ago when rates were 7.07%. 

While housing affordability improved in August, the average American household still can’t afford to buy a home. The typical household earns an estimated $83,853 per year, which is 27% less than the $115,454 needed to afford the average U.S. home. February 2021 was the last month when the typical household earned enough to afford the median priced home. Back then, the median household income was $69,000 or 5.5% more than the $65,308 needed to afford a median-priced U.S. home at that time. 

Is It Time to Consider a Mortgage Refi?

Mortgage rates haven’t been this attractive in more than a year, so it's good news for some homeowners eager to refinance. However, there’s more to consider than the mortgage rate. It will cost thousands to refinance, and not all the fees can always be rolled into the new loan. Breaking even on the costs of refinancing may take months or years.

Realtor.com reports that some 86% of outstanding mortgages have an interest rate below 6%, and more than 75% have a rate below 5%, so it makes no sense for these fortunate homeowners to refinance. The break-even period on a refi is determined by adding the cost of the refi versus the number of months of interest rate savings it will take to break even. One also needs to consider how long they expect to remain in the home. Tom: Many financial experts 

advise that it makes sense to refinance if there is a .5% or .75% difference in loan rates. IMO, based on lender fees and Florida loan related costs, it doesn’t make financial sense unless there is at least a 1% difference in loan rates. 

Cape Coral-Fort Myers No. 5 for Home Building 

Among Mid-sized Metros

According to a report by Construction Coverage, a website that provides construction software and insurance review, Cape Coral-Fort Myers authorized 30.7 new housing units per 1,000 existing homes. This report found that our local construction ranked #5 in the mid-size markets, with a median sales price of $390,000.

The study revealed that the U.S. housing market has been experiencing a major shortage of housing supply. The lack of supply has been exacerbated by:

·         Significant underinvestment in new housing since the Great Recession

·         The number of new residential units has recovered too slowly over the last decade, and new permits declined by 25% after peaking in January 2022

·         Worker shortage and hindered supply chains made it harder and more expensive to obtain building materials

Lisa: Our area, especially Cape Coral, has more than adequate new housing being built. 

Are Pickleball Courts Good for a Home Sale?

Pickleball appears to be setting off a love-hate relationship in real estate. There’s disagreement about whether the sports craze is a benefit for home sales. Some prospective home buyers favor properties near pickleball courts, yet some homeowners who live next to courts complain about the constant popping noise of a wooden paddle hitting a wiffle ball, and the bright lights at night. 

An analysis by Financial Samurai suggests property values could decline 10–20% if pickleball courts are constructed across the street from a residence due to the noise; and a property decline by 5 to 10% if one or two blocks away. On the other hand, courts at least three blocks away could be a game-game changer, even possibly pushing up real estate prices by 1% to 5%. 

Jenna: The bottom line seems to be it’s a great thing to live near pickleball courts, not so great to liveright next to them.

Facts & Stats and Tom’s Musings

Well, Cape Coral/Fort Myers weathered another one. Safe to bet no one will be naming babies or pets after that son of a gun, Milton. Everyone we’ve interacted directly with has been extremely grateful that we didn’t take a direct hit and that their property damages were far less than anticipated. We are, however, deeply sympathetic to those who weren't as lucky and did sustain more severe damages.

Fannie Mae: Existing Home Sales May Hit 30-Year Low – Analysts say many potential buyers are waiting for affordability to improve. They anticipate rates will average 5.7% by late 2025. Despite a significant decline in mortgage rates and improved supply, existing home sales are not expected to pick up meaningfully through the remainder of 2024, with the annual sales pace now forecast to be the slowest since 1995. 

New Homes Create Affordable Options in FLA: Florida is among the top 10 states leading the way in new home construction for volume, affordability and future growth, per Realtor.com. The state is also among the few seeing new construction priced lower than existing homes on a per square foot basis. 

Iconic Shell Factory Closes: After 86 years of providing families with enjoyment, the N. Fort Myers iconic attraction center closed on the 29^th of Sept. Built in 1938, the 18-acre Florida roadside attraction has entertained multiple generations with amusement-style rides, arcade games, mini golf, wildlife and much more. Tom: Along with a multitude of SW Florida visitors, Sue and I will sadly miss The Shell Factory & Nature Park.

Florida Jobless Rate Stays at 3.3%: Employment in the state leisure and hospitality, education and health services and construction categories continue to grow and outpace the Septnational unemployment rate 4.1%. In August, Florida’s workforce was over 11 million.

Finally… The Chiquita Boat Lock to Be Removed: After years of legal entanglement, the City of Cape Coral is preparing for the removal of the Chiquita Lock, pending receipt of the necessary permit from the Army Corps of Engineers. The lock will remain open to boaters until demolition is started, but will be inaccessible for about 3 months once demolition begins. An exact date has not yet been determined, but this link will provide further information. 

If you no longer need or want to receive our Market Updates please let us know.

Cape Coral Home Prices Steady -

Lee County Sees Another Slight Drop

Unexpectedly, August Cape home prices held steady compared to the same month a year ago. We anticipated that C.C. home prices would continue to drop until either high-season arrived and/or lower interest rates occurred. Both are not far off.  The average Cape home price had an assist from the high number of gulf-access home sales and a few homes that sold for substantially over $1M.

                                                 Cape Coral Aug 2023 vs. Aug 2024

                                       Lee County Aug 2023 vs. Aug 2024

Cape Coral Gulf Access Homes: Aug 2023 = 48 Gulf Access Sales, Avg Price: $928,000

                                                  Aug 2024 = 66 Gulf Access Sales, Avg Price: $936,000

Cape Coral $1M+ Homes: Aug 2023 = 20 $1M+ Sales, Avg Price: $1,336,000   Highest: $2,181,000

                                         Aug 2024 = 17 $1M+ Sales, Avg Price: $1,588,000   Highest:  $3,750,000

Inventory: Homes available for sale in the Cape remained at 5 1/2 months, the ballpark mark for the past several months. As long as inventory stays below 7 months home prices should not drop much until the next upcycle begins, which I expect to occur after the election and the projected interest rate decreases. 

Florida – Where Americans Really Want to Live

According to a study by Clever Real Estate, 53% of Americans are frustrated with their home city or state, and 43% are actually embarrassed by their state. Where do Americans dream of moving? 68% cite low crime as a high-criteria, 66% say affordable living and housing costs, 62% desire good weather, and 52% want low taxes. Jenna: Our local area pretty much ticks off all these desired boxes.

Cape Coral was ranked 4^th most desirable midsize city, following Honolulu, Colorado Springs, and Charleston, S.C. The Sunshine State is home to one-quarter of the top most desirable large metros, as well as 25% of the 10 most desirable midsize metros. One-third of respondents ranked D.C. as the worst city to live in the U.S. New York City was a close 2^nd, followed by San Francisco, Chicago, and Detroit. 

Americans named Hawaii as the friendliest state, followed by Tennessee, Texas, South Carolina, and Florida. New York City edged out New Orleans as the city with the best food. 

Most Popular Rooms to Remodel

In making renovations, homeowners need to strike a balance between personal tastes and features that could appeal to buyers. Home improvement trends come and go, but trends still deserve a place at the table among homeowners and real estate investors who want to renovate their homes with projects that could be most profitable and appealing to prospective buyers. 

“2024 U.S. Houzz & Home Study” from Houzz Research revealed these are the most important rooms to improve”

1.   Kitchen

2.   Guest bathroom

3.   Primary bathroom

4.   Living room

5.   Guest bedroom

6.   Primary bedroom (or master bedroom as it was known for over 100 years)

7.   Laundry room

8.   Closet

9.   Dining Room

10.Home Office    Tom: The kitchen has always been the most important room. It was a bit surprising that with so many more people working at home that the home office wasn’t ranked higher.

People Making $200K or More are Flocking to 10 States: 

Florida is No. 1

SmartAsset reports that Florida had the biggest gain of high-earning households based on available IRS data from the 2021-2022 tax year. Texas came in second in terms of net inflow, followed by North and South Carolina and Arizona. Five of the top 10 high-earning relocator states imposed no state income tax. 

Affordability, especially housing, is another major factor, according to economists. Here are the top five biggest net inflow states, along with average adjusted gross income for high-earning households 

1.   Florida: 29,771 – Gross Income $907,013

2.   Texas: 8,260 – Gross Income $579,207

3.   North Carolina: 5,792 – Gross Income $456,384

4.   South Carolina: 5,270 – Gross Income $$501,205

5.   Arizona: 4,365 – Gross Income $561,112

Facts & Stats and Tom’s Musings

Florida Wages Soar: Florida ranks among the top three states with the highest wage growth since 2019. Competition for workers has driven up wages, and unemployment remains lower than the national average. 

According to the Bureau of Labor Statistics, Montana led the nation in pay increase since before the pandemic, at 28.3% increase, easily beating the 19% national inflation rate during that time. New Hampshire came in 2^nd with wages up 28%, followed by Florida (+27.3%), Washington, and Maine.

Bankrate: Young Owners More Likely to Tap Equity for Spending: Younger and older owners differ in how they use home equity. Overall, 55% of owners approve of using equity for home improvements. At the other end of the spectrum, 18% of all homeowners said there’s no good reason to tap home equity at all.

23% of baby boomers (ages 60-78) and 19% of Gen Xers (ages 44-59) say there’s no reason to access built up home equity for cash, compared to only 9% of millennials (ages 28-43). 

Welcome to the Fun State of Florida: A new study from WalletHub revealed that Florida is ranked the “Number 1 Fun State” across 26 key indicators of what people view as a good time, ranging from great daytime activities to nighttime activities, including restaurants, theme parks and art and music festivals. 

California was the 2^nd most “fun” state, followed by Nevada, New York, Colorado, Illinois, and Texas. In last place on the list was West Virginia.

Lower Rates May Revive Competition: According to Zillow, buyers in Florida’s bigger metros have recently gained an upper hand. Nationwide, homes have lingered on the market longer compared to last year. Lower rates will help, but Zillow reports that 80% of recent sellers were influenced by major life events, such as a change in their household size or working situation.

One More Accolade for Cape Coral: Zillow compiled a list of the 10 Best Places to Live in Florida, and Cape Coral was ranked 8th best. Zillow utilized their real estate data, combined with income and unemployment numbers from the Federal Reserve. 

A few key C.C. stats - Population: 217,000, Average home value: $382,205, 400 miles of canals and near beaches, golf courses, boating, nature preserves, and numerous tennis and pickleball courts. Lisa: So many positive Florida and Cape Coral recognitions...and this was just in one month.

CWL

Welcome to Southwest Florida, a paradise where sun-kissed beaches, vibrant wildlife, and charming towns await your exploration. Whether you’re a nature enthusiast, a history buff, or simply looking for a relaxing getaway, Southwest Florida has something for everyone and is renowned for its stunning beaches. From the powdery white sands of Sanibel Island to the tranquil shores of Naples, you’ll find the perfect spot to unwind. For those who love the great outdoors, Southwest Florida offers a plethora of activities. Explore the Everglades on an airboat tour and witness the unique ecosystem up close. Kayak through the mangroves of Estero Bay or hike  the trails at Lover's Key State Park for a chance to see dolphins and/or manatees. Step back in time with a visit to the Edison and Ford Winter Estates in Fort Myers. These beautifully preserved homes offer a glimpse into the lives of two of America’s greatest inventors, Thomas Edison and Henry Ford. The estates feature lush gardens, a museum, and Edison's original laboratory. 

Southwest Florida is a food lover’s paradise. Enjoy fresh seafood at waterfront restaurants in Fort Myers Beach or indulge in gourmet dining in Naples. Don't miss the local farmer's markets where you can sample fresh produce and artisanal goods. 

For a bit of retail therapy, head to Fifth Avenue South in Naples, where you’ll find an array of boutiques, galleries, and cafes. Southwest Florida is a destination that truly has it all. Whether you’re seeking adventure, relaxation, or a bit of both, you’ll find it here. So pack your bags and get ready to discover the magic of Southwest Florida!

Cape Coral/Lee County June Home Prices Drop Again

As we’ve been projecting for a few months, Cape Coral and Lee County are experiencing the summer home price doldrums. MLS stats indicate that prices will likely drop a bit more in the next few months before high-season and  interest rate decreases arrive. Cape Coral home prices are getting close to the $453K low mark of this new cycle.

Bank of America: Housing Market ‘Stuck’ until at least 2026

The bank said home prices will stay high and go even higher and the housing shortage will persist. And mortgage rates may not fall much – even if the Fed finally delivers long-delayed interest rate cuts. Home prices spiked during Covid-19 and then the Fed’s war on inflation sent mortgage rates surging. 

The one-two punch has made it an historically unaffordable time to buy a home. The median price of a previously owned U.S. home climbed in May (and June & July) for the 11^th month in a row to a record $419,300 – up 6% from a year earlier. B of A expects home prices will climb by 4.5% this year and then by another 5% in 2025.

One other major problem keeping inventory low is the “lock-in-effect”, homeowners with a low interest rate who are unwilling to give up that appealing rate. B of A feels that the “lock-in-effect” could persist for eight years. And because those homeowners aren’t moving, the supply of existing homes on the market is limited. Tom: The silver lining of the lock-in-effect is that it is keeping inventory somewhat at bay, thus avoiding a severe price crash similar to the mid-2000s. 

Fort Myers in Top 3 Florida Cities to Buy in Next 5 Years

According to a Real Estate Agent survey conducted by GoBankingRates, Fort Myers is one of the top areas where Florida homebuyers should purchase property in the next five years. 

Not too long ago, Fort Myers/Cape Coral had a reputation for being retirement towns. However, the cities have shifted to offering more diverse activities, including recreation, dining and cultural sightseeing, to attract an increasingly younger demographic. According to U.S. News & World Report, the median age of a Fort Myers resident is 45 years old. 

Compared to cities like Miami, there’s a lot of land still available in Fort Myers/Cape Coral for residential development. And, it’s a less expensive alternative than pricier cities in SWFL like Naples or Marco Island. Jenna: Home prices in SWFL are as low as they've been in several years. We're here to help you purchase a home at these favorable prices. 

America’s Renter Population is Growing

Redfin: The number of renter households in America grew 1.9% year over year in the 2^nd quarter to a record 45.2 million. That’s over three times faster than the number of homeowner households, which grew .6% to a record 86 million. 

Renter households have formed faster than homeowner households for three straight quarters partly because home buying costs have risen much faster than rents. Nationwide, just over one-third of households in the U.S. are renter households – a figure that has remained fairly steady over time. 

The median apartment asking rent increased less than 1% year over year in June, while the median monthly mortgage payment jumped roughly 5%. America still faces a housing shortage, but the recent boom in multifamily construction has helped narrow the gap. Multifamily building completions are at historic highs because many projects started during the pandemic housing frenzy are just now being finished. 

Tom: The abundance of new Cape Coral/Fort Myers apartment developments in the last few years has contributed to tamping down home prices. Fortunately, we're seeing a decrease in the number of complexes being completed, and they are not being rented as quickly, or for the high rental prices they were getting a few years ago. 

Facts & Stats and Tom’s Musings

New technology is Cleaning Waterways in SWFL: A company called Clean Earth Rovers is using water-cleaning robots to clean fish kills, red tide, oil spills and algal blooms. The ‘Roomba’ for waterways will clean a spill event in 40 minutes that used to take 4 to 6 hours.

There are currently six Clean Earth Rovers in Florida, but talks are in progress with more companies and municipalities. 

Florida Remains Top International Buyer Preference: Fla. continued to be the top selection for international buyers, with 20% of that buyer market. At 13%, Texas ranked second, and California was the remaining state with triple digits at 11%. Canada, China, Mexico and India were the top international home buyers. 

The number of homes purchased by international buyers dropped 36% from 2023 and the lowest number since tracking began in 2009. Despite the decrease in number of sales, the average home purchase price of $780,300 was the highest ever recorded. 

Florida Dominates for First-Time Buyers: A new WalletHub survey found Florida is home to six of the top 10 cities for first-time buyers, and Cape Coral was the 2^nd ranked city for newbie buyers. Nine Fla. cities ranked in the top 20. The survey looked at 300 cities using 22 key metrics, including home prices, taxes, and crime rates. 

How Low Must Rates Go to Break Lock-In Effect? Nearly 50% of existing homeowners said rates need to drop below 5% to feel comfortable buying a new home. Six out of 10 current mortgages have rates below 4%. Redfin expects rates to only decline to about 6.6% by the end of this year. Lisa: Can we expect rates to hit that magical 5% sometime in 2025? We can only hope.

Be Safe: Our team hopes you and your families experienced minimal impact from Hurricane Debby, and may we be so lucky that it was the last one to visit us for at least the rest of this year.

Cape Coral/Lee County June Home Prices Drop Again

As we’ve been projecting for a few months, Cape Coral and Lee County are experiencing the summer home price doldrums. MLS stats indicate that prices will likely drop a bit more in the next few months before high-season and  interest rate decreases arrive. Cape Coral home prices are getting close to the $453K low mark of this new cycle.

Bank of America: Housing Market ‘Stuck’ until at least 2026

The bank said home prices will stay high and go even higher and the housing shortage will persist. And mortgage rates may not fall much – even if the Fed finally delivers long-delayed interest rate cuts. Home prices spiked during Covid-19 and then the Fed’s war on inflation sent mortgage rates surging. 

The one-two punch has made it an historically unaffordable time to buy a home. The median price of a previously owned U.S. home climbed in May (and June & July) for the 11^th month in a row to a record $419,300 – up 6% from a year earlier. B of A expects home prices will climb by 4.5% this year and then by another 5% in 2025.

One other major problem keeping inventory low is the “lock-in-effect”, homeowners with a low interest rate who are unwilling to give up that appealing rate. B of A feels that the “lock-in-effect” could persist for eight years. And because those homeowners aren’t moving, the supply of existing homes on the market is limited. Tom: The silver lining of the lock-in-effect is that it is keeping inventory somewhat at bay, thus avoiding a severe price crash similar to the mid-2000s. 

Fort Myers in Top 3 Florida Cities to Buy in Next 5 Years

According to a Real Estate Agent survey conducted by GoBankingRates, Fort Myers is one of the top areas where Florida homebuyers should purchase property in the next five years. 

Not too long ago, Fort Myers/Cape Coral had a reputation for being retirement towns. However, the cities have shifted to offering more diverse activities, including recreation, dining and cultural sightseeing, to attract an increasingly younger demographic. According to U.S. News & World Report, the median age of a Fort Myers resident is 45 years old. 

Compared to cities like Miami, there’s a lot of land still available in Fort Myers/Cape Coral for residential development. And, it’s a less expensive alternative than pricier cities in SWFL like Naples or Marco Island. Jenna: Home prices in SWFL are as low as they've been in several years. We're here to help you purchase a home at these favorable prices. 

America’s Renter Population is Growing

Redfin: The number of renter households in America grew 1.9% year over year in the 2^nd quarter to a record 45.2 million. That’s over three times faster than the number of homeowner households, which grew .6% to a record 86 million. 

Renter households have formed faster than homeowner households for three straight quarters partly because home buying costs have risen much faster than rents. Nationwide, just over one-third of households in the U.S. are renter households – a figure that has remained fairly steady over time. 

The median apartment asking rent increased less than 1% year over year in June, while the median monthly mortgage payment jumped roughly 5%. America still faces a housing shortage, but the recent boom in multifamily construction has helped narrow the gap. Multifamily building completions are at historic highs because many projects started during the pandemic housing frenzy are just now being finished. 

Tom: The abundance of new Cape Coral/Fort Myers apartment developments in the last few years has contributed to tamping down home prices. Fortunately, we're seeing a decrease in the number of complexes being completed, and they are not being rented as quickly, or for the high rental prices they were getting a few years ago. 

Facts & Stats and Tom’s Musings

New technology is Cleaning Waterways in SWFL: A company called Clean Earth Rovers is using water-cleaning robots to clean fish kills, red tide, oil spills and algal blooms. The ‘Roomba’ for waterways will clean a spill event in 40 minutes that used to take 4 to 6 hours.

There are currently six Clean Earth Rovers in Florida, but talks are in progress with more companies and municipalities. 

Florida Remains Top International Buyer Preference: Fla. continued to be the top selection for international buyers, with 20% of that buyer market. At 13%, Texas ranked second, and California was the remaining state with triple digits at 11%. Canada, China, Mexico and India were the top international home buyers. 

The number of homes purchased by international buyers dropped 36% from 2023 and the lowest number since tracking began in 2009. Despite the decrease in number of sales, the average home purchase price of $780,300 was the highest ever recorded. 

Florida Dominates for First-Time Buyers: A new WalletHub survey found Florida is home to six of the top 10 cities for first-time buyers, and Cape Coral was the 2^nd ranked city for newbie buyers. Nine Fla. cities ranked in the top 20. The survey looked at 300 cities using 22 key metrics, including home prices, taxes, and crime rates. 

How Low Must Rates Go to Break Lock-In Effect? Nearly 50% of existing homeowners said rates need to drop below 5% to feel comfortable buying a new home. Six out of 10 current mortgages have rates below 4%. Redfin expects rates to only decline to about 6.6% by the end of this year. Lisa: Can we expect rates to hit that magical 5% sometime in 2025? We can only hope.

Be Safe: Our team hopes you and your families experienced minimal impact from Hurricane Debby, and may we be so lucky that it was the last one to visit us for at least the rest of this year.

The National Association of REALTORS® (NAR) recently reached a groundbreaking settlement that could significantly impact home buyers and sellers. Under the settlement, NAR will no longer require sellers to pay buyer agents’ commissions when selling their homes. This practice, which has been around for nearly a century, will change, as buyers may now be required to pay the buyer’s agent/brokerage’s compensation. 

Offers of compensation between real estate professionals are no longer allowed on MLS platforms so buyers must now enter into written agreements with agents before touring a home. These agreements must include clear details about compensation, ensuring transparency for consumers.  However, sellers can still offer compensation outside of an MLS. Negotiations between buyers and sellers may become more intricate as buyers and sellers will need to discuss compensation directly, leading to various outcomes and potentially slowing down the selling process. 

Remember, NAR has not admitted to any wrongdoing, and the settlement aims to enhance transparency and empower consumers in real estate transaction. Time will tell.  

Buyers face challenges in any market and today’s is no different. With higher mortgage rates and rising prices there’s a lot to consider.

But, there’s one way to avoid getting tripped up – and that’s leaning on a real estate agent for the best advice. An expert’s insights will help you avoid some of the most common mistakes homebuyers are making right now.

Not Having Your Pre-approval In Hand

As part of the home buying process a lender will look at your finances to figure out what they’re willing to loan you for your mortgage. This gives you a good idea of what you can borrow so you can really understand the financial side of things before you start looking at homes. While house hunting can be a lot more fun than talking about finances, you don’t want to do this out of order. Make sure you get your pre-approval first. 

Perfection?

While you may have a long list of must-haves and nice-to-haves, you need to be realistic about your home search. Even though your ideal state is you find a home that checks every box, you may need to be willing to compromise. Plus, a home that has everything you want may be too pricey. 

Buying More House Than You Can Afford

With today’s mortgage rates and home prices, there’s no arguing it’s expensive to buy a home. And while it may be tempting to stretch your finances a bit further than you’re comfortable with to make sure you get the house, you want to avoid overextending your budget. 

Not Working with a Local Real Estate Agent

This last one may be the most important of all. Buying a home is a process that involves a lot of steps, paperwork, negotiation, and more. Rather than take all of this on yourself, it’s a good idea to have a pro working with you. The right agent will reduce your stress and help the process go smoothly.

Bottom Line

Mistakes can cost you time, frustration, and money. If you want to buy a home in today’s market, be sure and find an experienced local real estate agent so you have a pro on your side who can help you avoid these missteps.  Lisa and Jenna would be happy to assist you in buying or selling. Please contact Lisa at 239-292-2479 or Jenna at 239-851-3744.