If you are a first-time home buyer and want to know details about buying a home step by step, request my First Time Home Buyers Guide. Just email me: Homes@JuryHernandez.com
It's no secret. We have had a wild ride the past 3 years, the demand for homes was massive, and with historically low-interest rates added to the mix, homes were flying off the shelves.
It is 2023, and the market shifted. We are now in a stable market where you and the seller get to negotiate prices and terms.
My goal is to prepare you to get a home in today's market. I know you may have PTSD from the market we've had in the past years. The marketplace was crazy back then; buyers were waiving all sorts of terms to win the home, and even then, some suffered disappointment and regret. But it is a new day, a new year, and with a new housing climate, I'm feeling optimistic that you will get your dream home in 2023.
Let's go!
Who is Representing You When Buying A Home?
I want to start off by asking you a question? Who will represent you in one of the largest purchases of your life? Like Buying a Home. If you say a realtor, then make sure you have a conversation with the realtor you want to work with. It's important to know the realtor's responsibilities, commitment to you, and role in the home-buying process.
Home Values in Kissimmee and Surrounding Areas
Now let's talk about home values. Why does this matter? Because since mortgage interest adjusted to normal rates we have seen a decline in home affordability, but the prices are staying strong. Home are not going up 10-20% in value every month like some did back in 2021. Right now we don't have as much inventory to say you are going to get a home at a discount, no.
But, now is the perfect time to implement some strategies that will get you your home.
What You Can Expect When Buying a Home
Before you start your home search, have the right expectations for your budget. If you are looking for a home in the low 300s here in Kissimmee, Saint Cloud, Orlando, there is a good probability that the homes you find need updates and/or repairs.
But if you are willing to go to the Polk County side, you can find new construction homes in the low 300s.
What to look for in a Home?
Now that you know what to expect in this price range, you have to find out the age and condition of the home's major systems. So pay close attention to the Roof, HVAC System, Water Heater, Windows, Electrical, and Plumbing.
Some sellers will provide you with a 4-page form called The Seller's Property Disclosure, telling you what they know about the property.
Before making an offer determine what repairs you are willing to take on and what you will ask for. Set your limits from the beginning to not waste time.
Negotiate, Negotiate, Negotiate
So you start house hunting, pick the right location, and find a lovely home. It's time to negotiate. Home sellers know that home values have increased and are looking to profit the most. But because we are in a new market, you get to negotiate.
As a buyer, the home's monthly mortgage payment needs to make sense. So here are some options of what you do when negotiating an offer:
Ask for a Mortgage Summary From Your Lender:
When you make an offer, ask your loan officer to prepare a mortgage summary for the home you like. You will then know your estimated mortgage payment if your offer gets accepted.
Ask for a Seller Credit:
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A credit from the seller can help you buydown your interest rate so you can lower your monthly payment.
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Pay for your closing costs. So you save that money for your home emergency fund.
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Cover repairs or item replacements. Again less cash out of the packet.
Ask for a Home Warranty:
A home protection plan can cover things not insured by your homeowner's insurance. Things like appliances and small repairs.
Ask the lender to pay for the mortgage insurance:
This may cause the interest rate to go up, but the monthly may go down.
Food for thought: Negotiate, but don't miss the opportunity to get a good property because you want to negotiate.
New Construction Homes Unique Opportunities
New homes make great investments. You have home warranties, incentives, and more!
But, most new construction communities have higher maintenance fees like CDDs and HOA. This is a good thing because you want your community to look good if you ever decide to sell.
Some small construction companies in Kissimmee, Saint Cloud, and Orlando are building homes in single lots where there is no HOA. But these are not a large portion of the available inventory.
Going back to the incentives. The big track builders offer attractive incentives, like paying for all your closing fees and interest rate buydowns.
I want to point out one thing here when you talk to the lender, ask if the interest rate is fixed or adjustable. You want to know if your interest rate will go up (or down) in 5 or 7 years.
Adjustable interest rate loans have evolved in the past decades. Now, these loans have a cap, so you know the highest interest rate you will possibly pay in the future. But you don't know if you don't ask. So ask questions and pay attention.
Takeaways:
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Know who is representing you when buying a home
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Have the right expectation when buying an existing home.
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Negotiate to lower your monthly payments.
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Go for a new construction home for the best incentives.
Hire a Local REALTOR:
Let's talk if you want to own a home in Kissimmee, FL! Fill out the form at the bottom of this article for a free consultation.
Thank you!
Thank you for visiting my blog. I hope you found a golden nugget of information. If you found this article helpful, share it with others.
My mission:
To guide, inform and inspire you to take the 1st step toward your best life. Buy or sell homes with confidence. -Jury Hernandez, Broker Associate
