Taking a quick peak at the real estate market, it is no secret the market remains very strong with buyers competing for limited inventory. Well priced properties continue to garner multiple offers however, there is a little bit of a change in the buyer’s thought process where they are now not making offers on properties well in excess of their perception of market value. In short, the days of paying whatever a seller wants I personally feel is winding down.
New construction has been an option for many willing to wait 18-24 months for a new home to be built however, builders are including escalation clauses in those contracts should there be a rise in material costs from when the contract was originally signed. Typically many builders will order materials after the permitting process which can take 3-4 months to approve. Once permitting has been approved, the builder will then order the materials. This is when the increase in price usually surfaces from the original estimate to build. Many builders will charge a fee or the buyer may lose their deposit should they cancel the purchase agreement at this time.
When it comes to new construction in many of the new communities being developed, the developer will release a small percentage of lots for bid. Sometimes there are upwards of over 100 people bidding for the lot which drives the lot up significantly. Then you have to go through the building process where there can be additional costs as material costs rise. All this being said, I am finding many people not wanting to go through the feeding frenzy created in this format and start reconsidering the purchase of an existing home knowing that it may not be ideal, and remodeling will have to be performed to get something closer to what they like.
The thing to keep in mind is you are coming to a beautiful state, and even a home that needs a little TLC will make you feel much better than sitting up north, cooped up for a significant period of time wishing the winter away.
The new FEMA flood changes are on everyone’s mind these day, as the increases went into effect on October 1, 2021. Instead of relying on “flood zones” as a determination of your flood exposure, the new system is referred to as “Rating 2.0,” which is a single risk modeling system that takes into consideration area and proximity to harbor, replacement coverage, frame vs. block construction along with slab vs. pilings. Also considered is prior flood loss. Banks may use flood zones, but insurance companies are going by the new rating system. So what does all of this mean you ask? Well, if you have an existing flood policy your flood insurance will increase approximately 18% per year until you reach the figure FEMA has established as the target figure for your property. If you don’t have flood insurance then you will be subject to the new valuations FEMA has established. When buying a home it is important to find out in the beginning of your negotiations if the current seller is carrying flood insurance, as this will impact your investment in the home significantly. To give you a better understanding of the difference in buying a home where the seller is carrying flood insurance verses one where they aren’t, recently we had a buyer purchasing a home on a gulf access canal. They were quoted $6,700.00 to obtain flood insurance for the home. Thankfully, the seller’s insurance carrier said their policy could be assumed, which saved our buyer a significant amount of money as the seller was paying $1,080.00 for flood insurance. It is important to find out up front when negotiating the purchase of a home if the current homeowner is carrying flood insurance and if the policy can be assumed.
While most people would like to talk about themselves, Gary and Gail have always put their clients first, and their diverse backgrounds have provided their clients an unparalleled level of service and knowledge throughout the past years.